Latest news with #ArgusResearch
Yahoo
25-06-2025
- Business
- Yahoo
Argus Research Raises Intermediate-term Rating on Jabil (JBL) Stock
Jabil Inc. (NYSE:JBL) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, Argus Research upped its intermediate-term rating on Jabil Inc. (NYSE:JBL)'s stock to 'Buy' from 'Hold' with a price objective of $230. The firm's long-term rating on the company's stock remains 'Buy.' Analysts led by Jim Kelleher highlighted that the company's revenue and non-GAAP EPS in Q3 2025 sharply exceeded the Wall Street expectations and the guidance. Furthermore, the company returned to positive annual topline growth for the first time since Q3 2023. A technician overseeing an application-specific integrated circuit design, etched on a metallic plate. In Q3 2025, Jabil Inc. (NYSE:JBL) saw net revenue of $7.8 billion and core diluted EPS (Non-GAAP) of $2.55. The company's Intelligent Infrastructure segment remains a critical growth engine, supported by accelerating AI-driven demand. For FY 2025, it expects net revenue of $29 billion and core diluted earnings per share (Non-GAAP) of $9.33. Kelleher and his team believe that Jabil Inc. (NYSE:JBL) seems to be well-placed beyond FY 2025 as a result of fast-growing opportunities available in AI data center infrastructure, connected healthcare, semiconductor capital equipment, and other core businesses. As per Kelleher's team, the revenue headwinds in end-markets, in technology and non-technology areas, continue to give way to increased demand, mainly in the AI and cloud space. As per the analysts, Jabil Inc. (NYSE:JBL) expects a $8.5 billion annual AI revenue opportunity, and it plans to invest $500 million in new US facilities. Jabil Inc. (NYSE:JBL) provides electronics design, production, and product management services, electronic circuit design services, including application-specific integrated circuit design, firmware development, and rapid prototyping services, among others. While we acknowledge the potential of JBL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JBL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None.
Yahoo
21-06-2025
- Automotive
- Yahoo
2 Reasons to Sell Tesla Stock in June 2025
Tesla (TSLA) remains one of the most important and influential stocks in the market. Whether you categorize TSLA as a so-called 'Magnificent Seven' stock or not, its market capitalization of more than $1 trillion means that wherever it trends, so go many passive investors' portfolios. Tesla's evolution to the leading U.S. electric vehicle (EV) maker initially had many investors excited. It's also true that Tesla has built an incredible company on this front alone. Dear Tesla Stock Fans, Mark Your Calendars for June 30 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio This Options Tool Can Show You How to Trade Tesla Stock Ahead of Robotaxi Day Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! But much of the stock's recent rise can be tied to the firm's latest ambitions around autonomous driving, robotics and artificial intelligence (AI). Additionally, with new lower-priced models reportedly on the horizon, investors have a plethora of potential catalysts to look to as reasons to buy and hold Tesla stock, even at a valuation that many investors may be starting to question. In fact, a number of top experts have begun to do exactly just that. Let's dive into two recent downgrades for Tesla stock and why analysts may be souring on the firm's pathway forward. Analysts from Baird and Argus Research each recently downgraded TSLA stock, citing a number of concerns that they believe investors should be pricing in. Baird put a $320 price target on Tesla, which suggests that the stock (trading above that price target currently) could be a stagnant holding at best over the course of the next year. Baird analysts Ben Kallo and Davis Sunderland noted that Tesla investors' enthusiasm over what's expected to be a high-profile robotaxi launch, as well as a future including a lower-priced EV model, may be exaggerated. Specifically, these analysts project that only around 6,000 robotaxis are likely to hit the roads by the end of next year. That's a far cry from CEO Elon Musk's previous claims. Echoing this sentiment, Argus Research analyst Bill Selesky also downgraded Tesla stock to a 'Hold' rating, suggesting that non-fundamental factors have been unsustainably taking TSLA stock higher. With the macro environment being what it is, and added risk around Tesla stock tied to Musk's relationship with President Donald Trump, there are plenty of reasons aside from the removal of EV tax credits why TSLA may be on shaky footing. Factoring in the qualitative factors these analysts are talking about into any financial model of a company like Tesla is difficult. That said, there are a number of key fundamental metrics we can look at to determine whether Tesla may be overvalued on the basis of its core business alone. In terms of Tesla's overall valuation multiples relative to other automakers — which tend to trade around the single-digit or low double-digit price-earnings (P/E) levels — Tesla stock is certainly expensive. At a P/E ratio of 234 times, a price-sales ratio (P/S) of more than 10 times, and a price-book (P/B) value of nearly 14 times, Tesla is one heck of a pricy automaker when grouped with its larger global peers (in terms of overall sales volume). These multiples reflect some serious margin improvement due to non-EV related business lines picking up over the course of the coming years. And whether that's autonomous robotaxis, robots, Tesla's energy business, or a host of other potential catalysts that Musk will inevitably put forward, this multiple clearly isn't being assigned due to Tesla's core auto business. Overall, Wall Street analysts appear to be trending in the same direction as Argus and Baird. With a mean price target roughly 9% below where TSLA stock currently trades, experts may believe shares could have more downside from here. Indeed, the disparity between Tesla price targets, from a high of $500 to a low of $115, suggests that there's not a strong consensus on where TSLA is headed from here. At a trillion-dollar valuation, a surge to the $500 level would imply Tesla breaking back into the top 10 companies by market capitalization. But given the direction of other 'Magnificent Seven' stocks, it's hard to envision Tesla once again nearing the top of the market cap leaderboard. I tend to agree with the majority of analysts on Tesla stock at this point in time, and do think the various non-fundamental headwinds facing the company are real. We'll have to see where Tesla trends from here. But for now, I'll happily steer clear and watch from the sidelines. On the date of publication, Chris MacDonald did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
16-06-2025
- Business
- Yahoo
Western Digital Corporation (WDC) Stock Forecasts
Summary Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as
Yahoo
13-06-2025
- Business
- Yahoo
Argus downgrades McDonald's as price hikes hit traffic
-- Argus Research downgraded McDonald's (NYSE:MCD) Corp to Hold from Buy, citing weaker customer traffic amid resistance to years of menu price increases and signs of slower earnings growth. Analyst cuts 2025 earnings estimate to $12.30 a share from $13.20, warning that McDonald's core lower-income customer base is pushing back after a period of repeated price hikes. The stock is trading at 24.6 times his revised 2025 forecast, a premium to peers Darden Restaurants (NYSE:DRI) and Restaurant Brands International (NYSE:QSR), which trade at lower multiples. While McDonald's has outperformed broader restaurant peers so far this year, Argus sees limited near-term upside. Same-store sales in the U.S. fell 3.6% in the first quarter, more than double the decline analysts had expected. Global same-store sales also missed expectations, reflecting weaker demand in key markets such as the U.K. Analyst noted that international sales were mixed, with strength in the Middle East and Japan partly offsetting softness elsewhere. Operating income declined to $2.65 billion from $2.74 billion a year earlier. Despite the downgrade, Argus sees McDonald's international reach, consistent dividend growth, and share buybacks as positives for long-term investors. The firm now expects 2026 earnings of $13.30 a share, down from a prior estimate of $13.80, and cut its long-term growth forecast to 8% from 10%. McDonald's shares are up 4.3% so far this year. The company plans to continue focusing on value offerings, including a $5 meal deal, and is set to relaunch its snack wraps later this year. Related articles Argus downgrades McDonald's as price hikes hit traffic Air India 787-8 accident - What we know so far Brookfield Infrastructure reportedly acquiring Hotwire for $7 billion
Globe and Mail
12-06-2025
- Automotive
- Globe and Mail
Tesla Stock: Why These 2 Downgrades Are Actually a Buy Signal
[content-module:CompanyOverview|NASDAQ:TSLA] When a stock climbs 14% in just two trading sessions despite getting hit with not one but two analyst downgrades, the market is sending a clear message. Tesla Inc (NASDAQ: TSLA) has done exactly that this week, shrugging off downgrades from both Baird and Argus Research as if they were minor speed bumps on a highway. For growth-focused investors, this apparent disconnect between Wall Street caution and actual market action represents something we love to see and write about: a buying opportunity. The Downgrades That Missed the Mark Monday brought a double dose of analyst pessimism when Baird cut Tesla from Buy to Hold, followed by Argus Research, who made the same move. Both firms cited the same primary concern: the very recent and very public spat between Elon Musk and President Trump, which they believe introduces significant uncertainty to Tesla's prospects. Baird's team also expressed particular skepticism about management's optimistic robotaxi timeline and suggested that positive expectations around the upcoming affordable vehicle launch, which we highlighted last week, might already be baked into the current share price. Meanwhile, Argus focused heavily on how the Musk-Trump dispute could weaken demand, especially as EV tax credits face potential expiration. They warned that Tesla's stock now appears driven more by non-fundamental events than actual business performance. Market Defiance Tells the Real Story But here's what makes Tesla so compelling as a stock to own: Tesla shares have actually gained 14% this week already, suggesting investors are treating the analyst caution as temporary noise rather than a very red warning sign. The stock's ability to climb despite fresh negative coverage indicates that the market sees through the political theater the underlying business momentum and long-term potential. After all, Tesla had posted what analysts called a fundamentally poor quarter in April, yet shares had already begun recovering before the Trump-Musk tensions erupted. That recovery trajectory appears to be reasserting itself regardless of Wall Street's newfound caution. The Bullish Chorus Remains Intact [content-module:Forecast|NASDAQ:TSLA] While Baird and Argus stepped to the sidelines, the broader analyst community tells a different story and is worth noting. The team at Piper Sandler actually reiterated their Overweight rating on Tuesday, echoing the updates from Morgan Stanley and Wedbush this month, already in maintaining bullish stances. Wedbush has been particularly aggressive, slapping a $500 price target on the stock and standing firm despite the recent volatility. This split in analyst opinion actually strengthens the contrarian case. When selective downgrades occur against a backdrop of maintained Buy ratings from other respected firms, it often signals that the negative factors are temporary rather than structural. Case in point: the fact that these downgrades focus primarily on political uncertainty rather than fundamental business deterioration supports this view. Perfect Storm for Patient Capital Tesla's current situation creates an almost textbook setup for contrarian investors. The stock has already absorbed a 25% hit from political noise, endured two high-profile downgrades, and still managed to surge 14% in just two sessions. This combination suggests that temporary headwinds are actually creating opportunity rather than risk. Consider this: if Tesla can gain 14% while dealing with two rare analyst downgrades and political uncertainty, imagine the potential upside once these temporary factors fade. The upcoming affordable vehicle launch and robotaxi development remain on track regardless of Washington drama, and Tesla's core EV market position continues to strengthen globally. For investors who believe in Tesla's long-term transformation story, the current moment offers something increasingly scarce: the chance to buy into a high-growth stock at a potential discount. The Window Is Already Narrowing All that being said, the market's quick dismissal of Monday's downgrades suggests this buying opportunity may be short-lived. Political tensions have a way of resolving themselves, especially when business interests are at stake. Meanwhile, Tesla's product roadmap and market expansion continue regardless of Twitter feuds or analyst hand-wringing. For investors willing to look past the headline noise, these rare downgrades may prove to be perfectly timed entry points rather than warning signals. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
