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Here's a high-potential stock to consider buying in July!
Carr's Group (LSE:CARR) could be a high-potential stock that's going under the radar. The company's entering a new era as a focused agricultural specialist and its streamlined profile, financial strength, and potential catalysts make it an intriguing proposition for value-oriented investors. What drives Carr's? After divesting its engineering division for £75m, Carr's is now a pure-play manufacturer of livestock nutrition products, mostly feedblocks, with roughly half its revenues coming from the UK and the other half from the US. This transformation has made Carr's much more dependent on the agricultural market cycle, leading to greater seasonality in its results as seen in H1 FY25. With production sites in Silloth, Ayr, and Bury St Edmunds, Carr's exports its specialist nutrition products globally, but the UK and US remain its key revenue drivers. Momentum after transition Recent interim results demonstrate the underlying momentum in the business. In H1 (six months to February) group revenue rose 7% to £50.6m, driven mainly by a strong 15% year-on-year increase in UK agriculture sales. Adjusted operating profit expanded even more, up 64% to £5.9m, as margins recovered from challenges seen during and after Covid. Yet, investors considering Carr's must look beyond the robust first half. Management's flagged that the second half of the year will likely be softer, particularly in the US, where herd sizes and demand for feedblocks remain below historic norms. Seasonality is pronounced, and with the company's new agricultural focus, volatility's inevitable. Management's cautious guidance suggests that the full-year will not simply double the strong interim figures. Running the maths I'm not going to try and guess where adjusted earnings will end up this year. However, statutory forecasts published online suggest the company's trading at 44 times forward earnings. Remember this is a statutory basis and the discrepancy with adjusted figures. However, this falls to 13 times for 2026 and nine times for 2027 as earnings improve. This would put Carr's on an earnings multiple that appears modest when set against its balance sheet strength and returning capital. Moreover, the pending tender offer could return up to £70m to shareholders, a dramatic gesture for a company of its market size. The dividend story's also promising, with the yield projected to climb from its current modest level toward 4% by 2027. Are tariffs a catalyst? One of the most significant catalysts for Carr's in the medium term is the impact of US trade policy. On one hand, higher tariffs and a weakening dollar don't bode well for Carr's' exports to the US. However, the market may prove to be fairly price inelastic. However, US tariff increases on imported beef are designed to protect and stimulate domestic livestock businesses. Over time, this could benefit Carr's materially as a larger US herd would, in theory, lead to greater demand for feedblocks and the like. For me, this is definitely a stock to watch. It's becoming a more agile business and I'm excited to see how it performs once that transition dust settles. It certainly deserves attention. The post Here's a high-potential stock to consider buying in July! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
2 hours ago
- Yahoo
China Galaxy International Downgrades PT on PDD Holdings (PDD) from $164 to $112
PDD Holdings Inc. (NASDAQ:PDD) is one of the best long term low volatility stocks to buy now. On May 30, China Galaxy International analyst Lei Yang downgraded the price target on PDD Holdings Inc. (NASDAQ:PDD) from $164 to $112, keeping a Hold rating on the shares. A close-up of a customer using the company's e-commerce platform whilst shopping online. Since the company is China-based, it is experiencing uncertainties due to Trump's tariffs. Reuters reported that the global discount e-commerce platform Temu, which is owned and operated by PDD Holdings Inc. (NASDAQ:PDD), underwent a whopping 48% drop in its daily US users in May compared to March. As a result, Temu's advertising spend in the country also dropped considerably. Morgan Stanley equity analyst Simeon Gutman said the following about the situation in a May note: 'While the tariff environment is uncertain, if the status quo remains for an extended period, we believe Temu's competitive threat will continue to weaken.' PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide. While we acknowledge the potential of PDD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
2 hours ago
- Yahoo
UPS driver buyout offers: Carrier eyes Aug. 31 start to separations
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: UPS is offering voluntary buyouts to its full-time U.S. drivers amounting to $1,800 per year of service, with a minimum payout of $10,000, according to an announcement from the carrier Friday. Interested drivers must apply for the program between July 18 and July 31, according to a UPS employee communication viewed by Supply Chain Dive. Applicants will be considered for separation dates between Aug. 31 and Oct. 31 "based on the local needs of the business." "If the maximum number of applications is exceeded, approvals will be granted in seniority order," the communication said. "Additional applications may be considered for separation dates between Feb. 1, 2026, and March 31, 2026." Dive Insight: The undertaking, called the Driver Voluntary Separation Program, is the first in UPS' history for delivery drivers. The financial incentive available through the program is in addition to earned retirement benefits like pension and healthcare, per UPS. Word of the program spread on July 3, when the International Brotherhood of Teamsters union said UPS' buyout plan was in motion. The Teamsters represent more than 300,000 UPS employees under a five-year contract reached in 2023. 'Our members cannot be bought off and we will not allow them to be sold out," Teamsters General President Sean O'Brien said in the union's announcement. "The Teamsters are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program." The union urged members to reject the buyout offers in a LinkedIn post on Friday. UPS did not specify what would happen if a lower-than-expected number of drivers applied for the program. UPS is enacting the buyout program in the midst of a major network overhaul to boost profitability, which will feature several facility closures and an over 50% volume reduction from Amazon, its top customer. The initiative also comes after the carrier revealed plans in April to cut roughly 20,000 U.S. positions this year. "As we work through our network reconfiguration, we remain steadfast in our commitment to providing our customers with the reliable, industry-leading service they expect from UPS," the company said in Friday's announcement. Recommended Reading UPS plans 20K job cuts this year as Amazon pullback advances
