Latest news with #SandyVillere
Yahoo
13-07-2025
- Business
- Yahoo
Top 3 small-cap stock picks while navigating trade uncertainty
Small-cap stocks are positioned for gains and trading at a discount compared to their large-cap peers, Villere & Co. portfolio manager Sandy Villere tells the Market Domination team. Watch the video above to hear more from Villere about to how play small caps. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Large and mega cap stocks dominating headlines and portfolios alike, but small caps lagging behind. Our next guest, though, says small caps will have their day in the sun. We're navigating how to play small caps with the Yahoo Finance playbook. Joining me now is Sandy Villery, portfolio manager at Villay and Company. Sandy, always good to see you. So you stay here, Sandy, small caps. They're gonna have their day in the sun, better days ahead. How come, Sandy? Walk us through it. Yeah, and I, I, I believe in reversion to the mean. And over the very long run, you take more risk in small cap and you should get more reward. But over the last 10 years, large caps outperformed by about 5% annually. Uh, and even this year, you know, S&P is up about 6%, and, and small is only up about 1%. Um, I just think that from a valuation standpoint, the small caps are about a 23% discount. A large gap. And when you look at the top 10 stocks in the S&P 500, they're trading about 29.3 times. The other 490 stocks are trading about 20 times. So we think they will have their day in the sun. And, uh, another interesting thing is when you go back over the last 100 years and you look at the cap ratio, the cyclically adjusted PE on the S&P, uh, there's only 5 times in history, and we're there now where we've hit these levels. Um, one was in '99 before the market cracked in 2000. Uh, you have to go forward to '07 before it cracked in '08. And then again in 2021, before we had that down, uh, 30% year in 22. And then again, uh, at the end of '24, when we did see, uh, about a 20% pullback, uh, into liberation day before we V-shaped from there. So we just think valuation is why small caps look so attractive. So Amy, I want to get you in here because, so Sandy says, listen, small caps are gonna have their day in the sun, Amy, what do you see? Yeah, I would say this is a key question for investors we talked to because small caps, you know, for traders, it's not necessarily just about fundamentals, it's about how they bake into factors. So when you think about small caps, We use IWM as a proxy. What is this idea of when we're going to get the rotation from, uh, growth into value or from value, you know, from momentum which had been outperforming, you're starting to see signs of that, but two major indicators I'd look at, one is how much call volume demand you see in IWM, which again is that proxy for small caps, and two, if you see a sustained reversion in that rotation between small cap with IWM as the proxy and QQQ as the growth factor. Sandy, what would happen? You know, there are some smart economists out there, smart strategists. I've heard them, listen, they, they don't think the Fed cuts this year. Economy is resilient, inflation's sticky. What if Jay Powell sits on his hands? Play that out for me. What would that mean for small caps? Yeah, that's gonna be a tougher environment, and that's what we're in now. We've had the, the dollar fall 11% year to date, not good for small caps, and, and interest rates have been stubbornly high. So we, we need to see, you know, kind of some, probably the job market fall apart a little bit, um, and we need to see rates come down for, for small caps to finally get the, the wind in their back. Um, but again, uh, we just need a rotation and sentiment from large cap growth to value or small cap, and I, I think that could also, uh, play out even if rates kind of stay, stay, uh, flat. Sandy, let's get some names here cause I always like to get your picks. Uh, Caesars, let's start there. Why is that one to buy? As you know, stocks meant left for dead. You say though, this is an opportunity. Yeah, I mean, you're down 36% off the high. You're now trading at 7.5 times enterprise value to EBITDA. If you look at 2026 numbers, this is a 17% free cash flow yield. The stock is baking in a recession and, and it, it, it is exposed to the consumer, which is not maybe a great spot to be, and they do have leverage. Every 100 basis points, uh, cut, uh, by the Fed would be about $60 million in free cash flow added to Caesars. So I just think it's so cheap. Uh, and, and, uh, the worst is expected that, um, it's a nice time to be picking it up when. When everybody else hates it. All right. From Caesars to a biotech, walk me through this one. Lagan, that's ticker LGND. Yeah, Lagan is really a, a chicken way to play the biotech industry. So they've got many, many shots on goal, as opposed to a typical biotech investment that can be a real binary outcome. Just on July 1st, to kind of give you an example, they helped put a merger together with Channel Therapeutics and Pelthos Therapeutics, and they invested about 18 million out of 50 million. This is a molluscum drug that impacts about 16.7 million people, and now you can actually take it at home instead of having to go to the doctor's office. They're gonna get a 13% royalty on that. And then just one more, Merck bought Verona this morning, as you all know, for $10 billion. They also have a mid single-digit royalty on their COPD drug for progressive lung disease. So that's just two examples with their 90 different programs and 13 different royalty commercial royalty streams right now. So we like that one a lot. Final, I just want to squeeze this one in, Sandy. Option Care, ticker OPCH, which has had a nice bit of run here. I'm looking it up about 30% this year. You say there's some some potential headwinds, but it's a buy, Sandy. Yeah, it is. I think I could see this trading from about 13 times enterprise value to EBITA, about 15 times. This is home therapy treatments, and so I think a lot of people like these home infusions. It's much cheaper, about 50% cheaper than doing it in a hospital. It's much more comfortable for the consumer, and I don't think any of these things as more and more people turn 65 and older, I don't think this is going away anytime soon. So we think it's got a good, a good future.
Yahoo
12-07-2025
- Business
- Yahoo
Top 3 small-cap stock picks while navigating trade uncertainty
Small-cap stocks are positioned for gains and trading at a discount compared to their large-cap peers, Villere & Co. portfolio manager Sandy Villere tells the Market Domination team. Watch the video above to hear more from Villere about to how play small caps. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Large and mega cap stocks dominating headlines and portfolios alike, but small caps lagging behind. Our next guest though, says small caps will have their day in the sun. We're navigating how to play small caps with the Yahoo Finance playbook. Joining me now is Sandy Villere, portfolio manager at Villere and Company. Sandy, always good to see you. So you say here, Sandy, small caps, they're gonna have their day in the sun, better days ahead. How come, Sandy? Walk us through it. Yeah, and I I believe in reversion to the mean, and over the very long run, you take more risk in small cap and you should get more reward. But over the last 10 years, large caps outperformed by about 5% annually, uh, and even this year, you know, S&P's up about six and and small's only up about one. Um, I just think that from a valuation standpoint, the small caps are about a 23% discount to large cap. And when you look at the top 10 stocks in the S&P 500, they're trading about 29.3 times, the other 490 stocks are trading about 20 times. So we think they will have their day in the sun, and, uh, another interesting thing is when you go back over last 100 years, and you look at the cape ratio, the cyclically adjusted PE on the S&P, uh, there's only five times in history and we're there now, where we've hit these levels. Um, one was in '99 before the market cracked in 2000. Uh, you have to go forward to '07 before it cracked in '08, and then again in, uh, 2021, before we had that down, uh, 30% year in '22, and then again, uh, at the end of '24 when we did see, uh, about a 20% pullback, uh, into liberation day before we V-shaped from there. So we just think valuation is why small caps look so attractive. So Amy, I want to get you in here, because so Sandy says, listen, small caps are gonna have their day in the sun, Amy. What do you see? Yeah, I would say this is a key questions for investors we talk to because small caps, you know, for traders, it's not necessarily just about fundamentals, it's about how they bake into factors. So when you think about small caps, we use IWM as a proxy, but is this idea of when we're going to get the rotation from, uh, growth into value, or from value, you know, from momentum, which had been outperforming? You're starting to see signs of that, but two major indicators I'd look at, one is how much call volume demand you see in IWM, which again is that proxy for small caps, and two, if you see a sustained reversion in that rotation between small cap, with IWM as the proxy and Qs as the growth factor. Sandy, what would happen, you know, there are some smart economists out there, smart strategists, I've heard them arguing, listen, they they don't think the Fed cuts this year. Economy's resilient, inflation's sticky. What if J. Powell sits on his hands? Play that out for me. What would that mean for small caps? Yeah, that's going to be a tougher environment, and that's what we're in now. We've got the the dollar fall 11% year to date. Not good for small caps, and and interest rates have been stubbornly high. So we we need to see, you know, kind of some, probably the job market fall apart a little bit, um, and we need to see rates come down for for small caps to finally get the the wind in their back. Um, but again, uh, we just need a rotation in sentiment from large cap growth to value or small cap, and I I think that could also, uh, play out even if rates kind of stay stay, uh, flat. Sandy, let's get to some names here because I always like to get your picks. Uh, Caesars, let's start there. Why is that one a buy? As you know, stock's been left for dead, you say though, this is an opportunity. Yeah, I mean, you're down 36% off the high. You're now trading at seven and a half times enterprise value to EBITDA. If you look at 2026 numbers, this is a 17% free cash flow yield. The stock is baking in a recession, and and it it is exposed to the consumer, which is not maybe a great spot to be, and they do have leverage. Every 100 basis points, uh, cut, uh, by the Fed would be about $60 million in free cash flow added to Caesars. So I just think it's so cheap, uh, and and the worst is expected that, um, it's a nice time to be picking it up when when everybody else hates it. All right, from Caesars to a biotech. Walk me through this one, Ligand, that's ticker LGND. Yeah, Ligand is really a a chicken way to play the biotech industry. So they've got many, many shots on goal as opposed to a typical biotech investment that could be a real binary outcome. Uh, just on July 1st, to kind of give you an example, um, they just had, uh, helped, uh, put, um, uh, a merger together with, uh, Channel Therapeutics, um, and Pelthos Therapeutics, and, uh, they invested about $18 million out of $50 million. Um, this is a Molluscum drug that impacts about 16.7 million people, and now you can actually take it at home instead of having to go to the doctor's office. They're going to get a third 13% royalty on that, and then just one more, uh, Merck bought Verona this morning, as y'all know, for $10 billion. They also have, uh, a mid-single digit royalty on their COPD drug for, um, you know, progressive lung disease. So that's just two examples with their 90 different programs and 13 different, uh, royalty, uh, commercial royalty, uh, streams right now. So we like that one a lot. Finally, I just want to squeeze this one in, Sandy. Option Care, ticker OPCH, which has had a a nice bit of run here. I'm looking it's up about 30% this year. You say there's some some potential headwinds headwinds, but it's a buy, Sandy. Yeah, it is. I I think I could see this trading from about 13 times enterprise value to EBITDA to about 15 times. This is home therapy, um, uh, you know, uh, treatments, and so I think a lot of people like these home infusions, uh, it's much cheaper, about 50% cheaper than doing in a hospital. It's much more comfortable, uh, for the consumer, and I don't think any of these things, as more and more people turn 65, uh, and older, um, I don't think this is going away anytime soon. So we think it's got a good, um, a good future. 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
12-07-2025
- Business
- Yahoo
Top 3 small-cap stock picks while navigating trade uncertainty
Small-cap stocks are positioned for gains and trading at a discount compared to their large-cap peers, Villere & Co. portfolio manager Sandy Villere tells the Market Domination team. Watch the video above to hear more from Villere about to how play small caps. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. 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
CNA
03-07-2025
- Business
- CNA
Stocks hit record, US dollar strengthens after jobs data
NEW YORK :Global stocks climbed to a record for a second straight session on Thursday and the dollar rallied after a stronger than expected U.S. payrolls report indicated the labor market may not be deteriorating rapidly. The Labor Department said nonfarm payrolls increased by 147,000 jobs last month after an upwardly revised 144,000 advance in May, well above the 110,000 estimate of economists polled by Reuters. Markets dialed back expectations for rate cuts this year from the U.S. Federal Reserve in the wake of the data, with the nearly 25 per cent chance for a cut all but evaporating, while expectations for a September cut are down to about 75 per cent from nearly 98 per cent before the jobs report was released, according to LSEG data. "July cut is definitely off the table. I was surprised like everybody to get such a strong number," said Sandy Villere, Portfolio Manager with Villere & Co in New Orleans. "I'm not going to say Goldilocks, but it's pretty amazing given all the crosscurrents, from tariffs to DOGE to whatever. I don't see how you could possibly cut with this strong of a labor market, so pretty amazing." On Wall Street, the S&P 500 and Nasdaq Composite once again closed at record levels, led by gains in technology as Nvidia shares rose 1.3 per cent as it approached a $4 trillion market capitalization. Other economic data from the Institute for Supply Management (ISM) showed U.S. services sector activity picked up in June as orders rebounded, but employment contracted for the third time this year. The Dow Jones Industrial Average rose 344.11 points, or 0.77 per cent, to 44,828.53, the S&P 500 rose 51.93 points, or 0.83 per cent, to 6,279.35 and the Nasdaq Composite rose 207.97 points, or 1.02 per cent, to 20,601.10. For the week, the S&P 500 gained 1.72 per cent, the Nasdaq rose 1.62 per cent, and the Dow climbed 2.3 per cent. MSCI's gauge of stocks across the globe rose 5.99 points, or 0.65 per cent, to 926.47 after hitting a record 926.79, and was up 0.3 per cent on the week. The pan-European STOXX 600 index closed up 0.47 per cent, led by gains in bank stocks, to manage a slight gain for the week. The dollar strengthened in the wake of the payrolls data, with the dollar index, which measures the greenback against a basket of currencies, up 0.38 per cent to 97.12, with the euro down 0.37 per cent at $1.1754. The dollar was on track for a second straight gain after nine consecutive sessions of declines, and was down 0.1 per cent on the week. Against the Japanese yen, the dollar strengthened 0.95 per cent to 145.03. Bank of Japan board member Hajime Takata said the central bank should resume interest rate hikes following a temporary pause to evaluate the impact of U.S. tariffs, signaling optimism the country was on track to durably achieve the central bank's price goal. Sterling strengthened 0.07 per cent to $1.3645 after a sharp selloff in the prior session across UK assets fueled by fiscal concerns and uncertainty about Rachel Reeves' future as Britain's finance minister. U.S. Treasury yields jumped following the jobs data, before easing somewhat. The yield on benchmark U.S. 10-year notes rose 5.3 basis points to 4.346 per cent while the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, shot up 9.7 basis points to 3.886 per cent. For the week, the 10-year yield rose 6.3 basis points while the 2-year yield was up nearly 14.6 basis points.
Bloomberg
22-05-2025
- Business
- Bloomberg
Bloomberg Businessweek Daily: A Weak Treasury Sale
Watch Carol and Tim LIVE every day on YouTube: Wall Street's worries about a ballooning deficit that threatens America's status as a safe haven were reflected in a $16 billion Treasury sale that saw lackluster demand - with stocks, bonds and the dollar falling. Treasuries got hit after a weak auction of 20-year bonds, whose 5% coupon rate was the highest since the tenor was reintroduced in 2020. Long-term debt bore the brunt of the selling, with 30-year yields jumping over 10 basis points. The equity market saw its worst session in a month, with the S&P 500's slide topping 1.5%. The greenback dropped against most major currencies. Bitcoin pared its advance, but was still set for a record. Traders have been piling into bets that long-term bond yields would surge on concerns over the US's swelling debt and deficits, with Moody's Ratings on Friday lowering the nation's credit score below the top triple-A level. For many, the message was: Unless America gets its finances in order, the perceived risks of lending to the government will rise. The White House amped up the pressure on Republicans on Wednesday urging lawmakers to quickly approve President Donald Trump's signature tax bill, adding that a failure to do so would be the 'ultimate betrayal.' Today's show features: Bloomberg News Rates Reporter Rates Reporter Michael Mackenzie Sandy Villere, Portfolio Manager for Villere & Co. Jenny Rooke, PhD, Founder and Managing Director of Genoa Ventures MP Materials Co-Founder, Chairman and CEO Jim Litinsky with Bloomberg News metals and mining reporter Joe Deaux
