Morgan Stanley Keeps Their Hold Rating on Santos Limited (STOSF)
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
According to TipRanks, Koh is a 3-star analyst with an average return of 2.3% and a 52.05% success rate. Koh covers the Energy sector, focusing on stocks such as Origin Energy Limited, Ampol Limited, and Santos Limited.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Santos Limited with a $5.19 average price target.
Based on Santos Limited's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $2.69 billion and a net profit of $588 million. In comparison, last year the company earned a revenue of $2.92 billion and had a net profit of $626 million
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
2 hours ago
- Business Insider
‘Time to Admit,' Says Top Investor About Nvidia Stock
Nvidia (NASDAQ:NVDA) stock has gone through quite the shift in sentiment lately. About three months ago, it took a hit after rising trade tensions and new U.S. export rules cut off its AI chip sales to China. With trade tensions easing since then, markets have surged to new highs – and Nvidia has led the charge, soaring more than 80% since April's bottom. The AI chip giant now tops the market cap leaderboard, holding the title of the world's most valuable company. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Naturally, that kind of turnaround has prompted a few mea culpas. One comes from top investor Henrik Alex, who's ranked among the top 3% of stock pickers on TipRanks. Alex issued a Sell rating on NVDA shares just over three months ago, but his doom-and-gloom scenario is now unraveling. 'As my Sell rating was based on expectations of escalating trade tensions and the company remaining precluded from selling into the Chinese market, I am upgrading Nvidia's shares from Sell to Hold, Alex explained. (To watch Alex's track record, click here) Alex acknowledged Nvidia's strong fundamentals despite the initial China-related hit. The company posted a record $25.8 billion in free cash flow in Q1 FY2026, while core Data Center revenue rose more than 70% year-over-year. 'Even with the export restriction impact, Nvidia managed to start fiscal year 2026 on a strong note,' the investor noted. Looking ahead, the company is expected to resume shipments to China soon. On top of that, a new next-generation GPU – designed to comply with export rules – is reportedly close to mass production, which could boost growth. Though the supply of the current H20 chip is still limited, the upcoming release of a scaled-down Blackwell model at a lower price point should help drive sales into late 2025 and beyond. There's also potential upside from shipments of previously restricted H20 inventory. That said, Nvidia's valuation is still a sticking point for Alex. The stock is now trading at over 20 times projected fiscal 2026 revenues, not profits. However, from a price-to-earnings perspective, things look more reasonable, especially when factoring in the company's expected earnings growth, which outpaces most of its 'Magnificent Seven' peers. Against that backdrop, the near-term picture remains favorable. With AI investment showing no signs of slowing and China shipments poised to resume, Nvidia's fundamentals appear strong. 'Time to admit to a bad call,' Alex concedes. 'However, the combination of ambitious valuation and an overheated stock market is keeping me sidelined.' Wall Street, though, is leaning bullish. Of the 38 analysts tracked by TipRanks, 34 rate NVDA a Buy, 3 say Hold, and just one is bearish. (See NVDA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
10 hours ago
- Yahoo
The V-shaped recovery in stocks is a V-shaped recovery in earnings: Chart of the Week
The S&P 500 (^GSPC) notched five record highs in as many trading days last week, capping off what's now a 28% rally since reaching this year's lows on April 8. This V-shaped recovery in the benchmark index marks the second-fastest rebound from a drawdown of at least 19% in the last 75 years, according to data from Creative Planning's chief strategist Charlie Bilello. A massive move in the index from a low of 4,987 to Friday's closing price of 6,389 has formed a large V shape in the S&P 500 2025 chart. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy And though questions may linger for some as to what, exactly, is driving the market higher, the V-shaped recovery in earnings expectations that has accompanied this rebound in the market makes this rally make a whole lot more sense. Data from Morgan Stanley's chief investment officer Mike Wilson shows that earnings revisions breadth — or the ratio of companies raising forecasts to those cutting forecasts — has rebounded as dramatically as, and in lockstep with, the S&P 500 itself. "Many market participants do not appreciate how strong this very fundamental driver has been over the past several months," Wilson told Yahoo Finance. After tanking as analysts assessed the impact of President Trump's initial "Liberation Day" tariffs, earnings revisions have been soaring. And early returns this earnings period have backed up this optimism. With 34% of the S&P 500 having reported results, earnings in the second quarter are on pace to grow 6.4%, up from the 5% expected on June 27, per FactSet data. Estimates for year-over-year earnings growth in the final two quarters of 2025 and for the full year 2026 have been moving higher. As of July 25, FactSet data showed analysts expect the S&P 500 to grow earnings by 13.9% in 2026, up from the 13.8% that had been expected a month ago. Wilson notes these revisions lead actual earnings estimates and that the current recovery in the outlook is rivaled only by the pandemic-era rebound. That period, Wilson adds, is "the last time we were so out of consensus on the market." The rebound in earnings revisions "helps to not only justify the rally to date, but also why we remain bullish on the next six to 12 months," Wilson added. "We are currently experiencing one of the strongest V-shaped recoveries in history, rivaling the COVID rebound in 2020, the last time we were so out of consensus on the market," Morgan Stanley's chief investment officer told Yahoo Finance. Wilson's chart is one of several in Yahoo Finance's upcoming Chartbook, which will be published Tuesday morning, that help explain why the S&P 500 has roared back to all-time highs despite persistent fears Trump's tariffs could derail earnings growth. Recent signs of feverish speculation in the market, notably the meme stock resurgence, could be a reason for caution. And valuations have also been on the rise — the S&P 500 is now valued at 22.4 times next year's earnings, above the five- and 10-year averages of 19.9 and 18.4. But the simple fact is that, to this point, tariffs haven't had the broad impact on corporate earnings and the US economy that many had feared. And what's more, arguably the most important driver of stock prices is again on the rise. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Click here for in-depth analysis of the latest stock market news and events moving stock prices 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
10 hours ago
- Yahoo
J.P. Morgan Doubles Down on These 2 Stocks
Markets are riding high this week, reaching all-time records, as anticipation builds around a strong Q2 earnings season for tech. It's a sharp turnaround from the volatility that rattled investors just a few months ago. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Offering his take on the current landscape, JPMorgan global market strategist Jordan Jackson summed it up with one word: 'resilient.' He noted that companies responded to recent uncertainty with swift and decisive cost-cutting, freezing hiring, trimming workforces, and renegotiating supply chain burdens to weather the storm. 'When you look at the broader backdrop, you've got to look at resiliency in some of the earnings. And I think we'll see that in some of the tech earnings,' Jackson explained in a recent interview. Jackson's optimism doesn't stop at Q2. Looking ahead, he added, 'Markets appear to be, as we flirt with all time highs, sort of sanguine over the very, very near term. But… over the next 12 months, I think markets are going to be higher than where they are today, probably meaningfully so.' Doubling down on that positive outlook, JPMorgan's stock analysts are backing up Jackson's stance with specific Buy-rated picks they believe are primed to outperform. We tapped into the TipRanks database to see which names they've singled out and what caught their attention. Hewlett Packard Enterprise (HPE) The first JPM pick we'll look at here is Hewlett Packard Enterprises, which was founded as an independent entity when Hewlett-Packard split up in 2015. Hewlett Packard Enterprises, HPE, inherited its parent company's business in the server, storage, and networking segments – the very segments that have proven indispensable in today's tech environment of expanding AI and cloud computing. HPE is known as an innovator in its field, developing AI-native and edge-to-cloud systems to meet customers' needs in all areas of business operations. Those areas include everything from business intelligence to data collation and security, to edge computing and hybrid cloud ops, to the latest AI applications. Earlier this year, HPE announced a $14 billion merger with Juniper Networks, a transaction that is widely expected to boost HPE's AI-native and cloud capabilities. The acquisition was closed on July 2, and HPE believes the move will bring $600 million in cost synergies over the next three years. Turning to the company's financials, in fiscal 2Q25 (April quarter), we find that HPE's revenue, at $7.6 billion, was up 6% year-over-year and beat the forecast by $130 million. At the bottom line, the company's non-GAAP earnings came to $0.38 per share, or 5 cents per share better than had been anticipated. JPM's Samik Chatterjee, an analyst ranked amongst the top 3% of Street stock experts, sees HPE with both a sound foundation and bright prospects, and he describes that in a recent note. Writing of the stock, the tech expert says, 'We rate shares of HP Enterprise (HPE) at an Overweight (OW) rating, given its solid position across servers, storage, and networking — the latter of which has been bolstered by the acquisition of Juniper, increasing its mix of higher-margin, less cyclical revenue relative to broader IT hardware equipment. Importantly, we see this as not only providing further headroom for upside relative to revenue and earnings growth over the coming years, particularly with the latter further reinforced by sizable cost synergies, but also driving upward pressure on the multiple that investors are willing to ascribe to the shares, which is set against the backdrop of the shares historically trading at a discount relative to the broader peer group.' The Overweight (i.e., Buy) rating noted above comes along with a $30 price target, suggesting a gain of 46% by this time next year. (To watch Chatterjee's track record, click here) HPE shares have a Moderate Buy consensus rating, based on 15 recent analyst reviews with an almost even split of 8 Buys and 7 Holds. The stock is priced at $20.51 and its $24.38 average price target implies an upside of 19% in the next 12 months. (See HPE stock forecast) California Resources Corporation (CRC) The second stock on our JPM-backed list is an energy company, California Resources. This is one of the many independent exploration and production companies operating in the North America hydrocarbon sector; as its name suggests, California Resources focuses its activities in the State of California. That's a rich field for an oil and gas producer – California is the seventh-largest oil-producing state in the Union, and one of the world's largest oil and gas regions. CRC's operations are located mainly in the San Joaquin Basin, in the southern part of the state's Central Valley. CRC is currently working in 42 oil fields in this region, and 73% of the company's proven reserves are located here. CRC also has active operations in the Ventura Basin, the Los Angeles Basin, and the Sacramento Basin, among others. California Resources is a $4.4 billion company, with strong production numbers. In the first quarter of this year, the firm generated an 'average net production' of 141 thousand barrels of oil equivalent per day (Mboe/d). Of this total, 79% was oil and the remainder was natural gas and natural gas liquids. The first quarter production figure was flat from the final quarter of 2024, but it was up nearly double the 76 Mboe/d reported in 1Q24. In CRC's first-quarter earnings report for this year, the last report released, the company generated $912 million in top-line revenues. This was up an impressive 101% year-over-year, and beat expectations by more than $50 million. At the bottom line, the company realized a non-GAAP EPS of $1.07, which was 30 cents better than the forecast. The company's free cash flow of $131 million was up 11% from the prior quarter. Watching this stock for JPM, analyst Zach Parham sees plenty of value here for investors. He is impressed by the company's prospects for further growth in the second half of this year, writing, 'We believe the stock is undervalued on a sum-of-the-parts basis… We see the potential for value to be realized if drilling permit approvals resume in California, something we believe is possible in 2H25. Additionally, CRC has a unique set of non-PDP assets (Carbon Management, the Elk Hills Power Plant, and Huntington Beach real estate) that we value at an incremental ~$16 per share. CRC also has a number of unique catalysts in 2H25+ that should provide a pathway to further value creation, including 1) the expected first injection of CO2 from CRC's Carbon Management Business (CMB), 2) the potential passage of CA AB 881, which would allow for the construction of CO2 pipelines in CA and provide a pathway for CRC to further grow its CMB, 3) the potential restart of drilling permit approvals in CA, providing an opportunity for CRC to slow production declines, and 4) a potential PPA at the CRC-owned Elk Hills Power Plant.' These comments support Parham's Overweight (i.e., Buy) rating on the shares, while his $63 price target points toward a gain of 26% going into next year. (To watch Parham's track record, click here) California Resources has earned a Strong Buy consensus rating from the Street's analysts, based on 10 reviews that feature a lopsided split of 9 Buys and 1 Hold. The stock is currently selling for $50, and its $58 average price target suggests that the shares have an upside of 16% on the one-year horizon. (See CRC stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
