1 Momentum Stock Worth Your Attention and 2 to Question
While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two not so much.
One-Month Return: +11.6%
Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.
Why Should You Dump CHGG?
Value proposition isn't resonating strongly as its services subscribers averaged 13.4% drops over the last two years
Overall productivity fell over the last few years as its plummeting sales were accompanied by a decline in its EBITDA margin
Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Chegg is trading at $1.35 per share, or 2.3x forward EV/EBITDA. If you're considering CHGG for your portfolio, see our FREE research report to learn more.
One-Month Return: +12.3%
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry.
Why Is MYRG Risky?
New orders were hard to come by as its backlog was flat over the past two years
Incremental sales over the last two years were much less profitable as its earnings per share fell by 34.5% annually while its revenue grew
Waning returns on capital imply its previous profit engines are losing steam
At $182 per share, MYR Group trades at 29.2x forward P/E. Read our free research report to see why you should think twice about including MYRG in your portfolio, it's free.
One-Month Return: +36.1%
Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Will COIN Beat the Market?
58.2% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
Incremental sales significantly boosted profitability as its annual earnings per share growth of 64.5% over the last two years outstripped its revenue performance
Robust free cash flow margin of 25.9% gives it many options for capital deployment, and its expanding margin gives it even more flexibility
Coinbase's stock price of $352.25 implies a valuation ratio of 27.5x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free.
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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CNET
14 minutes ago
- CNET
Tariff Impacts Are Real: These 13 Companies Have Confirmed Price Hikes
Higher prices for a lot of popular products seem inevitable on our current trajectory. James Martin/CNET In many cases and for many products in the US, the biggest impacts of President Donald Trump's aggressive tariff plans haven't hit yet -- but they could soon, unless the 90-day pause on some rates is extended. Still, numerous companies have already hiked prices or said that they'll increase in the near-future -- including, most recently, a popular and CNET-approved brand of smart lights. The fact of the matter is that tariffs -- a tax placed on the importing of certain products into a country -- will ultimately cause prices to go up, with Walmart characterizing these eventual price hikes as "inevitable" during its earnings call last month. Given Trump's push to place historically high tariffs on goods from almost every country in the world, you can also expect these price hikes to hit a huge variety of products. This truth has begun to sink in for a lot of Americans. About 38% of consumers feel pressured to make certain purchases before tariffs cause their price to go up, according to a recent survey conducted by CNET. About 10% of respondents said they'd already made certain purchases in hopes of avoiding future price hikes, while 27% said they'd delayed purchases of products costing more than $500. Overall, these concerns about prices were felt the most around popular tech pieces such as smartphones, laptops and home appliances. To help you keep score, I've put together a list of all the companies that have either confirmed or warned of price hikes due to Trump's tariffs. As other companies make such announcements, you can expect new names to be added here. Continue on for all those details, and for more, find out why it's best if you wait on buying a new iPhone. One item you won't find on this list yet? The original Nintendo Switch, which will see a currently unspecified price hike on Aug. 1, but only in Canada for the time being. If that increase makes its way south of the border, we'll let you know. Best Buy Without getting into specifics, Best Buy CEO Corie Barry told the Wall Street Journal late last month that it has already raised prices on certain products as part of its response to the tariffs. e.l.f. Known as an affordable option in the beauty world, e.l.f. announced in late May that it would be implementing a $1 price hike across its product line in response to the tariffs. CEO Tarang Amin claimed that the reaction from customers was positive, on account of the company's transparency. "We're not trying to pull anything over on anyone," Amin told Fortune. "This is exactly what we're facing, and they understand." Macy's Speaking to CNBC in late May, Macy's CEO Tony Spring said that price hikes will be implemented on some products due to tariffs, while also emphasizing that other tactics -- like discontinuing certain products altogether -- will also be a response to rising costs. Mattel Known for brands like Barbie and Hot Wheels, Mattel sounded the alarm over likely price increases during an early May earnings call. While it's unclear how much the toymaker's prices have increased since then, the company told investors that it would be, "where necessary, taking pricing action in its US business," or to put it plainly, raising prices for consumers to mitigate the impact of tariffs. Nikon Camera-maker Nikon will introduce price hikes in response to Trump's tariffs, effective June 23. This move will only target lenses and accessories the company makes and sells, so the cameras themselves are safe for now. "We will be carefully monitoring any tariff developments and may adjust pricing as necessary to reflect the evolving market conditions," a statement from Nikon explained. "We wish to thank our customers for their understanding and know that we are taking every possible step to minimize the impact on our community." Philips Hue Parent company Signify announced that prices for its popular and highly regarded Philips Hue brand of smart lights will see price hikes effective July 1. The company also confirmed that this decision was made "as a direct result of tariffs." "Signify reserves the right to modify prices based on new or additional tariffs becoming effective in the future," the company's official statement explained. Ralph Lauren Sales at the luxury goods retailer Ralph Lauren have apparently remained steady amid recent uncertainty, but the company is still forging ahead with a plan to combat tariff impacts by raising prices more than it had already intended to, according to the Wall Street Journal. Shein and Temu Trump's tariffs have made a notable target of China, hitting the country with a 30% rate only after initially hiking it all the way to 145%. Online retailers like Shein and Temu rely on direct shipments from markets like China in order to offer the rock-bottom prices that made them famous, so it's little surprise now that they've had to raise prices. The Trump administration has furthered the issues faced by these companies by doing away with a rule known as the "de minimus" exception, which used to exclude smaller purchases under $800 from import taxes. With that rule gone, Trump's China tariffs will now apply to both bulk orders of industrial building materials and those shoes you've been looking to buy from Shein. Subaru Subaru has hiked prices across almost its entire line. The increase ranged from $750 to $2,055, depending on the model, with only the EV Solterra avoiding any change. As has become a trend with some companies, Subaru avoided attributing the price hikes to Trump's tariffs, citing only the common refrain of "market conditions." Trump has notably disparaged companies that explicitly lay the blame for price hikes on his policies. "The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products," a Subaru spokesperson said in a statement to Car & Driver. Stanley Black & Decker In an earnings report published April 30, toolmaker Stanley Black & Decker addressed "Price Actions in Response to US Tariffs," stating that it had "implemented an initial price increase in April and notified our customers that further price action is required," and was also looking into ways to shift its supply lines to minimize the impact of tariffs. Volvo The price impact of tariffs at Swedish automaker Volvo are confined, for now, to just one model: the electric EX30. Initially it was set to start at $34,950 in the US -- a competitive price for an EV -- but tariffs targeted at imported cars forced the company to raise the price to $46,195, a 32% bump. Walmart The biggest grocery chain in the US, Walmart is perhaps the most prominent company yet to announce imminent price hikes due to Trump's tariffs. During the company's earnings call in May, CEO Doug McMillan said price hikes would begin by the end of May and impact things like food, electronics and toys. For more, see why buying refurbished tech helps you dodge tariffs and helps the planet.
Business Insider
18 minutes ago
- Business Insider
These 4 charts show where the hedge fund industry is midway through 2025
Hedge funds have had an emotionally turbulent ride in 2025, starting the year with soaring interest from big investors and optimism for the incoming Donald Trump administration. That optimism did not last long, however, as the President's tariff policies disrupted global trade and sent markets into a frenzy. Big-name managers such as Bill Ackman, Dan Loeb, and Ken Griffin, each of whom voted for Trump, were critical of the tariffs, but the administration used one of the industry's own — Treasury Secretary Scott Bessent, a former macro investor who worked for George Soros — to sell the policies at the Milken conference and on TV. Tariff negotiations are still ongoing, but the administration's 90-day pause is set to end Wednesday. Meanwhile, choppy markets and the rise of artificial intelligence renewed interest in long-short equity managers, as hedge fund backers sought investors who can pick winners and losers in the new world order. The first quarter of this year was one of the sector's best fundraising stretches in a long time. Markets have since settled down, and June was a strong month for stocks. One hedge fund founder, BoothBay's Ari Glass, told investors after the first quarter that the portfolio managers and firms his fund backs believe "it is beginning to feel like sentiment is similar to the second quarter of 2020 and we know that while history does not repeat itself, it can rhyme." While the pandemic slammed stocks in March 2020, many hedge funds had a stellar year by betting on a quick and significant recovery. Still, there's the possibility of more macro tremors shaking global markets. Trump is still pursuing his tariff agenda. He will sign his "Big Beautiful Bill," which contains about $4.5 billion in tax cuts and is estimated to add billions to federal deficits, into legislation on Friday. And the potential for a broader conflict in the Middle East has investors on edge. According to a recent report from Goldman Sachs' prime brokerage desk, the week the US bombed Iranian nuclear sites was the second-largest net selling of energy stocks by hedge funds in the last 10 years, with many American funds now shorting energy stocks. Multistrategy giants hitting their peak? The biggest hedge funds still dominate the conversation as managers like Millennium, Citadel, Point72, and Balyasny continue their long-running war over talent that has sent compensation costs skyrocketing. Many multistrategy funds, even smaller peers without the track record of the so-called big four, can only afford these payouts to coveted personnel thanks to pass-through fees, which leaves limited partners holding the bag for all the costs of running the business. A Goldman Sachs survey of multi-manager firms running a combined $300 billion from earlier this year found that 61% have changed their terms by adding either pass-through fees or "more onerous" liquidity terms. End investors have been pushing back for years and finally broke through last year, getting managers as large as Michael Gelband's ExodusPoint to agree to a cash hurdle that requires a fund to outperform Treasury bonds to earn performance fees. Another Goldman report found that close to half of allocators are now looking for managers they back to adopt hurdles. In other words, after years of explosive asset growth, multi-strategy funds might finally be plateauing. According to Nasdaq's eVestment, the sector had net outflows of $1.2 billion in the first quarter. Managers with tens of billions in assets like Citadel, Point72, and D.E. Shaw even returned capital to start the year. Other mega-funds, especially Millennium, have focused increasingly on allocating to external managers via separately managed accounts, which has warped the emerging manager space. SMAs often allow allocators more transparency and customization into a fund's operations and trading, though the independence of these new managers from their behemoth backers is in question. JPMorgan expects 58% of new launches over the next year to be SMAs, despite, as Goldman wrote, the "lines are now more blurred between platform hedge funds vs fund of hedge funds, proprietary vs external." The shift has meant seed investors feel they can push for even greater transparency into managers' books. According to law firm Seward & Kissel, close to half of those who backed new launches last year required the new funds to provide daily trading reports. Despite all the ups and downs, the average hedge fund returned 2% through May this year, according to industry data tracker PivotalPath — besting the S&P 500 through the same time period.
Newsweek
25 minutes ago
- Newsweek
How Trump's One Big Beautiful Bill Will Affect US Housing Market
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump's One Big Beautiful Bill Act, which House Republicans narrowly passed on Thursday, is likely to help high-end buyers in the U.S. housing market while doing little for lower-income renters and potential first-time buyers, experts have said. The House passed the sweeping bill, which extends tax cuts and slashes the U.S.'s social security net programs, with a 218-214 vote—with all Democrats voting against it and all but two Republicans supporting it. The bill has been strongly contested over the past few weeks, exposing rifts within the GOP. Its approval marks a significant win for the president, who told reporters on Thursday that the legislation would "make this country into a rocket ship." "This is going to be a great bill for the country," Trump said. The president is expected to sign the bill into law on July 4. Speaker of the House Mike Johnson celebrating with fellow House Republicans during an enrollment ceremony of the One Big Beautiful Bill Act at the U.S. Capitol in Washington, D.C., on July 3. Speaker of the House Mike Johnson celebrating with fellow House Republicans during an enrollment ceremony of the One Big Beautiful Bill Act at the U.S. Capitol in Washington, D.C., on July experts have expressed skepticism that the bill will bring positive changes for everyday Americans. Many economists have denounced the bill, saying it is likely to benefit the wealthiest individuals in the country while stripping poorer families of crucial benefits. "There has never been a single law in U.S. history that has hurt low-income households more, from both the largest Medicaid cuts and the largest SNAP cuts in history," Bobby Kogan, a former top numbers cruncher for the Senate Budget Committee, said in a statement shared with Newsweek. He added: "And what's particularly egregious is this bill hurts low-income households while simultaneously bestowing huge tax cuts on the richest Americans. Quite literally, this bill makes the poor poorer while making the rich richer." The bill is also likely to affect the struggling U.S. housing market, which is in the midst of a slowdown as inventory surges while buyers are kept to the sidelines by elevated mortgage rates, sky-high prices, rising costs and growing economic uncertainty. "There are several parts of the bill that could affect real estate and housing markets, but its impact won't be uniform," senior economist Jake Krimmel told Newsweek. "Its overall impact is likely to vary significantly across regions and income groups, depending on local tax burdens, home prices, and how tight supply is," he said. "That's because the bill includes provisions that affect both housing demand and housing supply, and they operate differently in different parts of the country—especially given today's large regional divides in local economic conditions." High-End Buyers, Investors and Professionals to Benefit the Most The tax package passed by Congress includes a provision raising the cap on the state and local tax (SALT) deduction to $40,000—effectively quadrupling the previous $10,000 limit. For homeowners in certain states and metros, this could mean saving thousands of dollars in annual taxes. Ed Fernandez, the president and CEO of exchange investment company 1031 Crowdfunding, told Newsweek that the measure "would be incredibly productive" and "create a real estate boom again." This change, however, "disproportionately benefits higher-income buyers in high-tax states like New York, New Jersey, Massachusetts, and Illinois—regions where housing markets remain tight and prices elevated," Krimmel said. The states with the highest share of properties taxed over $10,000, according to data, are New Jersey (39.9 percent), New York (25.9 percent), Connecticut (19.4 percent), California (19.3 percent), Massachusetts (18.4 percent), New Hampshire (16.3 percent), Illinois (13.7 percent), Texas (12.4 percent) and Rhode Island (9.3 percent). The District of Columbia (15.6 percent) is also included in the top 10. The top 10 metros are San Jose-Sunnyvale-Santa Clara, California (47.9 percent); New York-Newark-Jersey City, New York-New Jersey (47.8 percent); San Francisco-Oakland-Fremont, California (40.9 percent); Bridgeport-Stamford-Danbury, Connecticut (39.3 percent); Kiryas Joel-Poughkeepsie-Newburgh, New York (37.5 percent); Trenton-Princeton, New Jersey (35.8 percent); Nantucket, Massachusetts (35.5 percent); Austin-Round Rock-San Marcos, Texas (32.0 percent); Jackson, Wyoming-Idaho (28.7 percent); and Santa Cruz-Watsonville, California (28.1 percent). An additional $30,000 in deductions could amount to about $10,500 in annual tax savings for homeowners in these states and metros, assuming a 35 percent federal marginal tax rate, calculated. The higher SALT deduction cap "may supercharge demand in places where affordability has already been declining and inventory remains below pre-pandemic norms, potentially adding upward pressure to already strained markets," Krimmel said. That means that your average buyer in these already-expensive states and metros might face even higher prices as a result of the One Big Beautiful Bill Act. "In the near term, the bill offers meaningful support to higher-income buyers and real estate investors but does less comparatively for lower-income renters and potential first-time buyers, who are still facing the steepest affordability challenges in today's housing market," Krimmel said. A permanent qualified business income deduction that the bill introduces is also likely to give an advantage to real estate investors and professionals, potentially fueling more investment in both residential and commercial property, Krimmel said. While everyday Americans may not benefit from the changes introduced by the new legislation, professionals are thrilled. Abe Schlisselfeld, the senior managing director and national real estate industry leader at CBIZ—a company that provides financial, insurance and advisory services in the U.S. and abroad—told Newsweek that the bill was "a big win for the real estate industry." One of the most attractive provisions for real estate investors in the bill is the return of 100 percent bonus depreciation, he said. "This would allow you to fully deduct the cost of qualifying renovations, property improvements, and certain building components immediately, instead of spreading the deductions out over several years," Schlisselfeld said. "This could be a game changer for your 2025 renovation or development plans," stimulating a significant amount of activity. A special depreciation allowance for qualified production property contained in the bill might also "create an additional tax advantage for investors in logistics, warehousing, or production-related facilities," Schlisselfeld said. Lower-Income Buyers Unlikely to Catch a Break 'Anytime Soon' The bill is also likely to affect the U.S. housing market on the supply side by expanding the Low-Income Housing Tax Credit and making tweaks to opportunity zone incentives, Krimmel said. These are tools that support affordable housing, community redevelopment and increasing housing supply "where it's so desperately needed," he said. While these measures could help address the national housing shortage—including in rural areas and in lower-income urban neighborhoods—"large-scale supply-side impacts will take time and aren't likely to relieve pressure in high-cost cities anytime soon," Krimmel said. Several sections of the bill also terminate the Energy Efficient Home Improvement Credit, the Residential Clean Energy Credit, New Energy Efficient Home Credit and the deduction for energy efficient commercial buildings. An analysis by the think tank and progressive advocacy group Groundwork Collaborative found that abolishing the New Energy Efficient Home Credit, which incentivized the construction of energy efficient homes and was estimated to spur the construction of 3 million homes in the next few years, would increase the price of new homes. "Now, builders that were expecting the credit will likely pass the cost on to consumers or cancel the construction of new homes altogether, further disrupting the housing supply and increasing costs," the group said. Construction of new homes in the U.S. has already significantly slowed down since the Trump administration's introduction of sweeping tariffs that brought up the cost of crucial material. A surge of for-sale listings in the U.S. market is also discouraging builders from hiking up production.
