India's Manufacturing Rally Loses Steam on Margin, Growth Woes
Following triple-digit share gains in recent years, electronics manufacturers — who make everything from Samsung Electronics Co. phones to air conditioning units — are facing a sharp reversal as investor enthusiasm cools. Among them, shares of Dixon Technologies India Ltd. and Kaynes Technology India Ltd. have tumbled more than 15% this year, underperforming the broader market rally.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
3 Reasons to Avoid APPN and 1 Stock to Buy Instead
Over the past six months, Appian's shares (currently trading at $30.11) have posted a disappointing 13.6% loss, well below the S&P 500's 5% gain. This might have investors contemplating their next move. Is there a buying opportunity in Appian, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even with the cheaper entry price, we're swiping left on Appian for now. Here are three reasons why you should be careful with APPN and a stock we'd rather own. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Appian grew its sales at a 17.1% annual rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Appian's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a competitive market and must continue investing to grow. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Appian has shown weak cash profitability over the last year, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 4.8%, subpar for a software business. Appian isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 3.2× forward price-to-sales (or $30.11 per share). This valuation multiple is fair, but we don't have much faith in the company. We're fairly confident there are better investments elsewhere. We'd suggest looking at one of our all-time favorite software stocks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 minutes ago
- Yahoo
My Smartest Dividend Stock to Buy Today
Companies that generate reliable recurring revenue make the most dependable dividend stocks. Investors need to be able to distinguish between market pessimism and true threats to a dividend payer's cash flow. PepsiCo stock is trading well below its mid-2023 peak due to concerning earnings news, but the beverage and snack giant's operations remain resilient. 10 stocks we like better than PepsiCo › Investors looking within the consumer staples sector for a quality dividend stock will often choose Coca-Cola (NYSE: KO). And understandably so. Not only are the brands of the beverage industry's biggest name well-established, but its dividend track record speaks for itself. Not only has the company made its quarterly payments like clockwork for decades, it has raised its annual payouts for 63 consecutive years. If I were going to invest $1,000 in a dividend stock today, however, it wouldn't be Coca-Cola. I'd opt for rival PepsiCo (NASDAQ: PEP) despite its recent woes. In my view, the issues it faces are only short-term challenges that have created a fantastic long-term buying opportunity. They've also pumped up PepsiCo stock's dividend yield to a level that's just too good to pass up. At a passing glance, these two beverage companies look so similar that they might almost seem interchangeable. Coke is, of course, the world's most popular soda brand, but Pepsi isn't far behind. The Coca-Cola Company also owns Sprite, Minute Maid juices, Gold Peak tea, and several others, while Mountain Dew and Gatorade are part of the PepsiCo family. For all their similarities, though, these two companies are more different than they are alike. See, PepsiCo also owns snack chip subsidiary Frito-Lay, the name behind Lay's potato chips, Fritos, Doritos, Cheetos, and more. It also owns Quaker Oats, giving it a presence in other aisles of your grocery store. Yet that's not the biggest difference between these two organizations. Perhaps more noteworthy is that while Coca-Cola predominantly relies on third-party bottlers to produce and distribute its drinks, PepsiCo owns and operates the majority of its production facilities. All told, it has nearly 20 properties spread across most of the world that supply its distribution chain. This structural difference turns out to be a pretty big deal. Anyone who has kept tabs on PepsiCo in recent years almost certainly knows the stock has been sliding since the middle of 2023. What may not have been immediately obvious, however, is why. There is a reason, though. While the inflation rate was, by that point, down to tolerable levels again thanks to the Fed's aggressive moves, prices were not actually falling, and the lingering impacts of 2022's high inflation grew from annoying to problematic. Higher costs of -- well, everything -- posed a challenge for PepsiCo that Coca-Cola didn't face. It was Coca-Cola's partner bottlers that bore the brunt of production cost increases, but PepsiCo is its own bottler. As a result, rising costs in what was already a relatively expensive aspect of the business further chipped away at companywide profit margins. Management partially offset that impact by raising prices, for the record. But not all of it. Indeed, beginning in the middle of last year, PepsiCo's revenues began regularly falling short of estimates while its first-quarter earnings came up short of lackluster expectations. Although its beverage sales at least held steady following price hikes, consumers were a bit hesitant to pay higher prices for snack chips, and largely balked at the price hikes on Quaker Oats products. The end result was that PepsiCo's profit margins are leveling off below their pre-pandemic levels rather than continuing to rebound. Investors have been pricing this headwind into the stock for a couple of years now. The worst of this storm, however, may be in the rear-view mirror. It's not exactly thrilling. But, PepsiCo's management is forecasting a low-single-digit percentage improvement on the top line in 2025. The analyst community agrees, and further expects this growth to accelerate over the following two years. Earnings growth is expected to be commensurate during this time frame. The thing is, such growth is likely for a handful of reasons. One of these reasons is the fact that -- while prices and costs are still rising -- inflation is largely in check. As of May, the United States' annualized inflation rate stood at a palatable 2.4%. At the same time, while the Bureau of Economic Analysis reports U.S. incomes took a small but unexpected tumble that same month, incomes were gradually growing in most of the recent prior months, keeping up with outlays well enough to allow savings rates to continue climbing. That's at least a hint of economic health, underscored by Deloitte's expectation for domestic GDP growth of 1.4% for all of 2025, despite the GDP shrinkage of 0.5% in Q1. Meanwhile, the International Monetary Fund believes the rest of the world will actually report better GDP growth in 2025 than the United States will. So what does this mean in practical terms? It's a tailwind that makes it easier for consumers to justify shelling out a little more money on snacks and drinks -- confidence that hasn't exactly been rock-solid in recent quarters. It's also worth noting that PepsiCo is finally thinking about the things that truly drive or discourage purchases of its products. At a recent investor conference, for example, management talked about matters like package sizing, operating efficiency, and healthy snacking in an insightful way that had been missing from such discussions for a while. As for the dividend, that was never in any real jeopardy to begin with. Investors were largely just pricing in the modest revenue headwinds and the equally modest profit headwinds. Even last year's pressured profit of $6.95 per share was more than enough to cover its full-year dividend payout of $5.33 -- a dividend, by the way, that management has raised for 53 years in a row with no end to the streak in sight. The upside of diving into the stock now is simply that after its overdone 31% pullback from its 2023 peak, its forward-looking dividend yield is up to more than 4.3% versus Coke's current forward-looking yield of less than 3%. Sure, these two companies are different, but they aren't different enough to justify that degree of difference in their yields. The fact that PepsiCo may be ready to dish out a recovery that produces some meaningful capital appreciation simply sweetens the proverbial pot. Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PepsiCo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 James Brumley has positions in Coca-Cola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. My Smartest Dividend Stock to Buy Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 minutes ago
- Yahoo
If You Bought 1 Share of Nvidia at Its IPO, Here's How Many Shares You'd Own Now
Artificial intelligence (AI) and stock splits are Wall Street's two most-prolific trends. AI titan Nvidia has navigated its way through six forward stock splits since going public in January 1999. Despite Nvidia's well-defined competitive advantages, headwinds are mounting for the stock market's AI darling. 10 stocks we like better than Nvidia › What do you get when you put Wall Street's two hottest trends -- artificial intelligence (AI) and stock splits -- together? The stock market's largest public company, Nvidia (NASDAQ: NVDA). A stock split is a tool public companies have available to adjust their share price and outstanding share count by the same factor. These adjustments can be used to increase the share price (in a reverse split) or to make shares more nominally affordable (in a forward split). AI titan Nvidia is no stranger to making its high-flying stock more affordable for everyday investors. Nvidia's initial public offering (IPO) took place on Jan. 12, 1999, at $12 per share. Over the last 26-plus years, Wall Street's AI giant has completed six stock splits: June 2000: 2-for-1 September 2001: 2-for-1 April 2006: 2-for-1 September 2007: 3-for-2 July 2021: 4-for-1 June 2024: 10-for-1 A single share purchased for $12 at Nvidia's 1999 IPO would have expanded to 480 shares today and would be worth $73,584, not including dividends, as of the closing bell on July 1. Nvidia's historic ascent is a reflection of the insatiable enterprise demand for its graphics processing units (GPUs). The Hopper and Blackwell account for the bulk of AI-GPUs deployed in AI-accelerated data centers. In addition, CEO Jensen Huang is intent on maintaining his company's moat. Huang is overseeing an aggressive innovation timeline that'll bring a new advanced chip to market annually. No direct competitors have come close to matching or surpassing the compute capabilities of Nvidia's AI hardware. But maintaining its spot atop the pedestal won't be easy. Many of Nvidia's top customers by net sales are internally developing their own substantially cheaper AI-GPUs, which can cost Nvidia valuable data-center real estate or delay upgrade cycles. Furthermore, every game-changing innovation for the last three decades has endured a bubble-bursting event. All technologies need time to mature, including AI. If history were to rhyme, Nvidia stock could be hit hard. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. If You Bought 1 Share of Nvidia at Its IPO, Here's How Many Shares You'd Own Now was originally published by The Motley Fool
