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Yahoo
12 hours ago
- Business
- Yahoo
ETFs in Focus Amid Gold's Largest Half-Year Rise Since 2007
Gold had a spectacular first half of 2025, with SPDR Gold Trust GLD adding about 24%. While gold prices took a hit in the past month as evident from the 2.2% decline in GLD, the precious metal again started to move northward, buoyed by growing optimism that the Federal Reserve will resume interest rate cuts later this year. Markets priced in the likelihood of at least two rate reductions by the Fed in 2025. So far in 2025, gold has risen approximately 25%, now trading less than $200 below April's all-time high. The precious metal's strength has been underpinned by the ongoing geopolitical and trade tensions, along with growing concerns over the global economic impact of President Trump's proposed tariff agenda. The U.S. dollar has taken a hit, with a key dollar gauge down nearly 11% in the first half of the year — its worst showing since 1973. This depreciation has further boosted the appeal of gold as the metal is priced in the greenback. Platinum too capped a remarkable 29% gain in June — its strongest monthly rally on record. The surge has been attributed to tight supply conditions and robust demand from Chinese jewelry manufacturers, coupled with speculative buying from both the United States and China. In addition to gold and platinum, both silver and palladium posted gains, reflecting broad strength across the precious metals complex. In early April 2025, analysts at RBC Capital Markets commented that gold remains overvalued from a macroeconomic perspective. They emphasized that recent price increases were driven by uncertainty, and the factors creating that uncertainty were equally unstable. Despite the potential for a correction, they noted that weakening economic sentiment was likely to support gold's appeal—suggesting that high prices were likely to persist, as quoted on Kitco. A further rise in gold prices would require soft economic sentiments and rumors about economic slowdown to translate into weakness in hard data. This transition could fuel a more aggressive move by investors into gold. Despite negative projections, actual economic data continues to show decency. However, we know that a clear downturn in the real economy could lead the Federal Reserve to shift from its current neutral policy stance to rate cuts, which can spark a fresh rally in gold. Against this backdrop, one can closely track gold-based exchange-traded funds (ETFs). Some options in the market are SPDR Gold Shares GLD, iShares Gold Trust Micro IAUM, SPDR Gold MiniShares Trust GLDM and iShares Gold Trust IAU. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports iShares Gold Trust (IAU): ETF Research Reports SPDR Gold MiniShares Trust (GLDM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
a day ago
- Automotive
- Yahoo
Tesla Stock in Tailspin After Error-Plagued Robotaxi Debut
Things are veering way off the road for Tesla. In the wake of the long-awaited Robotaxi rollout in Austin, Tesla stock saw an initial bump — but those gains weren't able to withstand the ample bad press the autonomous cabs have gotten in the few days they've trawled Texas streets. On Tuesday, the botched Robotaxi launch led Tesla stock to drop more than four percent and nearly $15 in a single day. That falloff came after videos emerged showing the driverless cabs — which also, embarrassingly, still have human "safety monitors" riding shotgun — breaking traffic laws and driving erratically. One of the most viral Robotaxi freakouts shows one of the not-exactly-self-driving cabs braking repeatedly when driving near police cars, blowing through an intersection, and swerving into oncoming traffic — all within the brief 20 minutes that the ride was filmed by its backseat passenger. In another unsettling Robotaxi video, the Model Y's self-driving steering wheel jerks back and forth while plowing through another intersection before careening across a double-yellow line. The videos weren't only seen by internet critics, but also by the National Highway Traffic Safety Administration, which confirmed to Bloomberg earlier this week that it was aware of the clips and looking into whatever the heck is going on in them. In an investor note shared with MarketWatch, erstwhile Tesla bull Tom Narayan of RBC Capital Markets pointed out that the inclusion of human safety monitors and remote drivers in the Robotaxi rollout came as a rude surprise to stockholders banking on a revolutionary demo. "Robotaxis are critical to the Tesla investment case," Narayan wrote. If the company can prove to stockholders (and the rest of the world) that its autonomous driving capabilities are legit, the analyst noted, the company would edge out its competition both in the driverless cab sphere and in EV world. With the way things are going for Tesla, however, that seems like a big "if." "Only time will tell if this will work," the analyst concluded. And even if you look past all the drama, it's clear that Tesla's competitor Waymo is blowing it out of the water as it expands service to city after city. More on Tesla trouble: Cybertruck Burned So Severely That Its Driver's Bones Disintegrated Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From VSE Corporation's Q1 Earnings Call
VSE Corporation's first quarter results were shaped by the company's completed exit from fleet services and a sharp focus on aviation aftermarket growth. Management credited strong demand for aviation maintenance and distribution, alongside the integration of recent acquisitions, as primary drivers of performance. CEO John Cuomo described the quarter as a turning point, with the divestiture of the fleet segment allowing VSE to operate as a 'pure-play provider of aviation aftermarket parts and services.' The positive market reaction reflected optimism around these strategic shifts and the company's ability to execute on improved margins and operational focus. Is now the time to buy VSEC? Find out in our full research report (it's free). Revenue: $256 million vs analyst estimates of $274.3 million (57.7% year-on-year growth, 6.7% miss) Adjusted EPS: $0.78 vs analyst estimates of $0.58 (35.3% beat) Adjusted EBITDA: $40.35 million vs analyst estimates of $32.6 million (15.8% margin, 23.8% beat) Operating Margin: 9.6%, down from 14.9% in the same quarter last year Market Capitalization: $2.64 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ken Herbert (RBC Capital Markets) asked about the sustainability of margin improvements and the impact of integration synergies. CFO Adam Cohn responded that Q1 is typically strong due to inventory mix, and incremental synergy benefits are expected throughout the year, but guidance remains appropriately conservative. Jeff Van Sinderen (B. Riley Securities) probed on the acceleration of acquisition integrations and the timeline for completion. CEO John Cuomo explained that while some integration steps are being prioritized for faster benefit, full integration will take up to 18 months. Michael Carroll (Truist) questioned which metrics best gauge demand trends and the impact of industry cycles. Cuomo emphasized traffic data and backlog with OEMs as the most reliable indicators, noting that any slowdown would likely be gradual rather than abrupt. Louie DiPalma (William Blair) inquired about the origin and potential expansion of the Eaton partnership. Cuomo described the deal as a result of close OEM collaboration and noted that successful execution could open further opportunities with Eaton. Josh Sullivan (Benchmark) asked about expanding component repair capacity at TCI and the importance of turn times. Cuomo stated that capacity expansion is underway and highlighted that competitive turn times are central to VSE's value proposition in engine services. In upcoming quarters, the StockStory team will focus on (1) the pace and effectiveness of acquisition integrations, especially the realization of cost and revenue synergies, (2) the scaling of new OEM programs like Eaton and Honeywell Fuel Control, and (3) the company's ability to maintain margins and manage inventory in the face of macro and tariff-related uncertainty. Progress on these fronts will be key markers for monitoring VSE's execution of its aviation-focused strategy. VSE Corporation currently trades at $126.07, up from $117.87 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
CNBC
5 days ago
- Business
- CNBC
RBC's Gerard Cassidy talks results of Federal Reserve stress test
Gerard Cassidy, RBC Capital Markets, joins 'Closing Bell Overtime' to talk the results of the Federal Reserve's bank stress test.
CNBC
6 days ago
- Business
- CNBC
Loosening capital requirements will lead to increased bank M&A, says RBC's Gerard Cassidy
CNBC's "Fast Money" is joined by Gerard Cassidy, head of U.S. bank equity strategy and large cap bank analyst at RBC Capital Markets, to discuss the outlook for the banking industry, the upcoming results of the stress test and more.
