Deutsche Bank Is Losing Its Edge in Leveraged Finance Deals
The German bank ended up having to sweeten terms to get it done, offering better pricing for investors and adding features that protect them if things go wrong.
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Yahoo
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Who could lead Apple after Tim Cook
There are no indications that Apple (AAPL) CEO Tim Cook is planning on leaving his role anytime soon. But the company's underwhelming AI developments have some questioning if it's time for new leadership. Yahoo Finance Tech Editor Dan Howley takes a closer look at some of the potential contenders. To watch more expert insights and analysis on the latest market action, check out more Market Domination. Related videos £50k in savings? Here's how to unlock up to £4.5k in passive income overnight Down 55% in 5 years, but this FTSE stock offers a 9.5% dividend yield for income investors! How will the Lloyds share price be affected by today's Supreme Court ruling? Meet the 75p dividend stock with a higher yield than Legal & General shares 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
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29 minutes ago
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The one-year underlying earnings growth at Merck (NYSE:MRK) is promising, but the shareholders are still in the red over that time
Investors can approximate the average market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. That downside risk was realized by Merck & Co., Inc. (NYSE:MRK) shareholders over the last year, as the share price declined 31%. That's disappointing when you consider the market returned 19%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 9.3% in three years. The last week also saw the share price slip down another 6.4%. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report. Since Merck has shed US$14b from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Even though the Merck share price is down over the year, its EPS actually improved. It could be that the share price was previously over-hyped. The divergence between the EPS and the share price is quite notable, during the year. But we might find some different metrics explain the share price movements better. Merck's dividend seems healthy to us, so we doubt that the yield is a concern for the market. The revenue trend doesn't seem to explain why the share price is down. Of course, it could simply be that it simply fell short of the market consensus expectations. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Merck in this interactive graph of future profit estimates. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Merck's TSR for the last 1 year was -29%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective While the broader market gained around 19% in the last year, Merck shareholders lost 29% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 4% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Merck has 1 warning sign we think you should be aware of. Merck is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
Bloomberg
32 minutes ago
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Wall Street Banks Lose Ground in Europe as Tariffs Spook Clients
As US President Donald Trump has ratcheted up his rhetoric against trading partners in Europe — corporates across the continent are taking notice. As a result, some companies have begun to diversify their banking relationships away from the giants of Wall Street, according to data compiled by Bloomberg. That's been a boon for Europe's leading banks, which have been actively vying to win the extra business.
