Latest news with #Sekera
CNBC
02-07-2025
- Business
- CNBC
On the hunt for cheap stocks due for a second half bounce with Morningstar
Health care stocks could be the place to hide out for investors bracing for what many expect will be a volatile second half of the year. The industry is just starting to outperform, as traders rotate into a sector that is starting to look cheap after lagging this year. S & P 500 health care stocks are selling at 17 times forward earnings, far below their historical valuation. The entire S & P 500 sells for 23 times forward P/E. Exclude Eli Lilly , a high-flier thanks to its diabetes- and obesity treatments, and health care looks even more attractively valued. Lilly trades at 36 times forward earnings. "Healthcare looks very undervalued to us here, especially because healthcare is skewed to the upside, because [of] Eli Lilly," said Dave Sekera, chief U.S. market strategist for Morningstar. "Eli Lilly is overvalued. We think the market is over extrapolating the amount of profitability and growth in the GLP-1 drugs, which Eli Lilly, of course, is, you know, the the poster child for today." "If you were to take that out, the healthcare sector, as a sector, looks even more undervalued today," Sekera said, presenting an opportunity for investors. .GSPHC YTD mountain S & P 500 health care sector, year to date On Tuesday, the Dow Jones Industrial Average , which contains health care giants UnitedHealth Group , Johnson & Johnson , Amgen and Merck rallied, while the S & P 500 and Nasdaq Composite, which are weighted toward tech stocks that led the recent advance, retreated. Health care's relatively cheap valuations and above-average dividend yields give investors a "margin of safety" heading into the second half of the year, when the S & P 500 starts to look fairly valued at the same time as risks from tariffs and federal deficits continue, Sekera said. The strategist said he likes other beaten down parts of the market too, citing a preference for value stocks over growth issues and small caps over large caps. "Right now, I would actually prefer to see a greater margin of safety in the marketplace as a cushion for absorbing that amount of risk ," Sekera said. "With the market being at fair value, I think positioning is ever more important than usual."
Yahoo
31-03-2025
- Business
- Yahoo
Is Apollo Global Management, Inc. (NYSE:APO) a High-Growth Non-Tech Stock That Is Profitable in 2025?
We recently published a list of 12 High Growth Non-Tech Stocks That Are Profitable in 2025. In this article, we are going to take a look at where Apollo Global Management, Inc. (NYSE:APO) stands against other high-growth non-tech stocks that are profitable in 2025. On March 27, David Sekera, CFA, chief US market strategist at MorningStar released his Q2 2025 market outlook. He highlights that the market was priced to perfection at the start of the year, trading at a rare premium to its fair value. He advised investors at the start of the year to overweight value stocks, which were attractively priced while underweighting growth stocks that were significantly overvalued. This advice proved prescient as the Morningstar US Market Index fell by 1.74% through March 24, with losses concentrated in growth and core stocks. This was particularly true for stocks linked to artificial intelligence, which dropped by 3.79% and 3.52%, respectively. In contrast, value stocks gained 4.59%, showcasing their resilience. Sekera noted that as of March 24, the US equity market had declined to a price/fair value ratio of 0.95, representing a 5% discount to Morningstar's fair value estimates. Moreover, growth stocks experienced a sharp correction, reducing their premium from 24% at the start of the year to just 3%. On the other hand, despite their recent gains, value stocks became even more undervalued, trading at a 13% discount to fair value. He emphasizes that this has made value stocks the most attractive investment category for the year. His outlook also addresses market dynamics by capitalization. He recommends overweighting small-cap stocks due to their significant undervaluation at an 18% discount to fair value. However, he cautions that small-cap performance might not materialize until later in the year when economic conditions improve and monetary policy becomes more accommodative. Conversely, large-cap and mid-cap stocks are less appealing as they are trading at similar discounts to the overall market. Moreover, monetary policy plays a central role in Sekera's analysis. Morningstar's economics team forecasts three federal funds rate cuts in 2025 and anticipates a gradual economic rebound starting in early 2026. While long-term interest rates are expected to remain stable initially, they are projected to enter a multiyear downward trend later in 2025. He also addressed misconceptions about market sell-offs being driven by tariffs. Instead, he attributed much of the downturn to a concentrated sell-off in AI-related stocks. According to Morningstar's analysis, losses from just ten highly AI-correlated stocks outweighed overall market declines, with seven of these being among the top-performing stocks in 2024. To curate the list of 12 high-growth non-tech stocks that are profitable in 2025, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of non-tech stocks that have grown their revenue and net income by more than 15% over the past 5 years. Next, we cross-checked the 5-year sales growth and net income from Seeking Alpha. We also checked for TTM net income from Yahoo Finance and only added companies that had a TTM net income of more than $500 million. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey's Q4 2024 database. Please note that the data was recorded on March 28, 2025. Also note that for some companies the TTM net income was mentioned in foreign currencies, in such cases it was manually converted to USD. The conversion rates are as of March 28, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A team of professional financial investors in a modern office analyzing Investment opportunities. Apollo Global Management, Inc. (NYSE:APO) is a leading global alternative asset manager and retirement services provider. The company operates through Asset Management, Retirement Services, and Principal Investing. It manages over $500 billion in assets and operates globally with offices in multiple regions. In the fiscal fourth quarter of 2024, Apollo Global Management, Inc. (NYSE:APO) achieved record fee-related earnings of $554 million and an adjusted net income of $1.4 billion. Moreover, Assets Under Management reached a record $751 billion, with total inflows of $150 billion. Baron FinTech Fund mentioned the company in its Q4 2024 investor letter, highlighting that the company was one of the main contributors to the fund's performance. It also noted that Apollo Global Management, Inc. (NYSE:APO) has recently been added to the S&P 500, which is expected to broaden the shareholder base and provide more investors access to private markets through their stock. The company aims to grow its fee-related earnings at an average annual rate of 20% and spread-related earnings at 10% over the next five years. It is the top high-growth non-tech stocks that are profitable in 2025. Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q4 2024 investor letter: 'Alternative asset manager Apollo Global Management, Inc. (NYSE:APO) contributed to performance. The company held a well-received Investor Day during which management highlighted the firm's expansive credit management capabilities and introduced bullish five-year growth targets. Apollo also participated in the broader rally of financial stocks spurred by the Republican elections sweep, which has bolstered expectations for greater capital markets activity and looser regulations. Investors expect a more business-friendly administration will support growth initiatives for alternative managers, including plans to introduce private investments into retirement accounts. Finally, Apollo was added to the S&P 500 Index during the quarter, which prompted passive buying of the shares. We remain invested due to Apollo's long-term growth prospects, formidable competitive advantages, and strong management team.' Overall, APO ranks 1st on our list of best aerospace and defense stocks to buy according to analysts. While we acknowledge the potential of APO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APO but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Is Interactive Brokers Group, Inc. (NASDAQ:IBKR) a High-Growth Non-Tech Stock That Is Profitable in 2025?
We recently published a list of 12 High Growth Non-Tech Stocks That Are Profitable in 2025. In this article, we are going to take a look at where Interactive Brokers Group, Inc. (NASDAQ:IBKR) stands against other high-growth non-tech stocks that are profitable in 2025. On March 27, David Sekera, CFA, chief US market strategist at MorningStar released his Q2 2025 market outlook. He highlights that the market was priced to perfection at the start of the year, trading at a rare premium to its fair value. He advised investors at the start of the year to overweight value stocks, which were attractively priced while underweighting growth stocks that were significantly overvalued. This advice proved prescient as the Morningstar US Market Index fell by 1.74% through March 24, with losses concentrated in growth and core stocks. This was particularly true for stocks linked to artificial intelligence, which dropped by 3.79% and 3.52%, respectively. In contrast, value stocks gained 4.59%, showcasing their resilience. Sekera noted that as of March 24, the US equity market had declined to a price/fair value ratio of 0.95, representing a 5% discount to Morningstar's fair value estimates. Moreover, growth stocks experienced a sharp correction, reducing their premium from 24% at the start of the year to just 3%. On the other hand, despite their recent gains, value stocks became even more undervalued, trading at a 13% discount to fair value. He emphasizes that this has made value stocks the most attractive investment category for the year. His outlook also addresses market dynamics by capitalization. He recommends overweighting small-cap stocks due to their significant undervaluation at an 18% discount to fair value. However, he cautions that small-cap performance might not materialize until later in the year when economic conditions improve and monetary policy becomes more accommodative. Conversely, large-cap and mid-cap stocks are less appealing as they are trading at similar discounts to the overall market. Moreover, monetary policy plays a central role in Sekera's analysis. Morningstar's economics team forecasts three federal funds rate cuts in 2025 and anticipates a gradual economic rebound starting in early 2026. While long-term interest rates are expected to remain stable initially, they are projected to enter a multiyear downward trend later in 2025. He also addressed misconceptions about market sell-offs being driven by tariffs. Instead, he attributed much of the downturn to a concentrated sell-off in AI-related stocks. According to Morningstar's analysis, losses from just ten highly AI-correlated stocks outweighed overall market declines, with seven of these being among the top-performing stocks in 2024. To curate the list of 12 high-growth non-tech stocks that are profitable in 2025, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of non-tech stocks that have grown their revenue and net income by more than 15% over the past 5 years. Next, we cross-checked the 5-year sales growth and net income from Seeking Alpha. We also checked for TTM net income from Yahoo Finance and only added companies that had a TTM net income of more than $500 million. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey's Q4 2024 database. Please note that the data was recorded on March 28, 2025. Also note that for some companies the TTM net income was mentioned in foreign currencies, in such cases it was manually converted to USD. The conversion rates are as of March 28, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A skilled senior trader executing an order in a fast paced trading environment. Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a global brokerage firm that facilitates trading and investment activities for individuals, institutions, and financial professionals. It provides a platform for buying and selling a wide range of financial products, including stocks, options, futures, bonds, mutual funds, and more. Moreover, it also specializes in automated trading through advanced platforms like IBKR Desktop, IBKR Mobile, and Trader Workstation. During fiscal 2024, Interactive Brokers Group, Inc. (NASDAQ:IBKR) added 775,000 new accounts, with 217,000 in the fourth quarter alone. This brought total client equity to $568 billion, a 33% increase from the previous year and the first time exceeding half a trillion dollars. As a result, the company achieved a record quarterly pretax income of over $1 billion and full-year net revenues exceeding $5 billion with a pretax margin of 71%, the highest in the brokerage industry. The Baron Focused Growth Fund in its Q4 2024 investor letter expressed its bullish sentiment for Interactive Brokers Group, Inc. (NASDAQ:IBKR). The fund noted that the account growth was driven by the company's strength in international markets, as non-US investors sought access to US equities, which outperformed global peers in 2024. The fund remains confident in the company's long-term prospects. Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of the high-growth non-tech stocks that are profitable in 2025. Baron Focused Growth Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q4 2024 investor letter: 'Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a leading online brokerage house that serves customers in over 200 countries. Positive returns during the quarter reflected strong fundamental performance, including year-over-year growth of 30% in accounts, 33% in client assets, and 45% in margin loans. These increases were driven largely by Interactive Brokers' strength in international markets, as non-U.S. investors looked to access U.S. markets and equities, which largely outperformed their global peers in 2024. The company also participated in the broader rally of financial stocks following the Republican elections sweep. Expectations of heightened capital markets activity, a more pro-business regulator, and the potential for increasing market volatility all bode well for the company's volumes, account growth, and earnings. We believe Interactive Brokers has a compelling long-term growth path and remain investors.' Overall, IBKR ranks 2nd on our list of best aerospace and defense stocks to buy according to analysts. While we acknowledge the potential of IBKR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBKR but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Is Diamondback Energy, Inc. (NASDAQ:FANG) a High-Growth Non-Tech Stock That Is Profitable in 2025?
We recently published a list of 12 High Growth Non-Tech Stocks That Are Profitable in 2025. In this article, we are going to take a look at where Diamondback Energy, Inc. (NASDAQ:FANG) stands against other high-growth non-tech stocks that are profitable in 2025. On March 27, David Sekera, CFA, chief US market strategist at MorningStar released his Q2 2025 market outlook. He highlights that the market was priced to perfection at the start of the year, trading at a rare premium to its fair value. He advised investors at the start of the year to overweight value stocks, which were attractively priced while underweighting growth stocks that were significantly overvalued. This advice proved prescient as the Morningstar US Market Index fell by 1.74% through March 24, with losses concentrated in growth and core stocks. This was particularly true for stocks linked to artificial intelligence, which dropped by 3.79% and 3.52%, respectively. In contrast, value stocks gained 4.59%, showcasing their resilience. Sekera noted that as of March 24, the US equity market had declined to a price/fair value ratio of 0.95, representing a 5% discount to Morningstar's fair value estimates. Moreover, growth stocks experienced a sharp correction, reducing their premium from 24% at the start of the year to just 3%. On the other hand, despite their recent gains, value stocks became even more undervalued, trading at a 13% discount to fair value. He emphasizes that this has made value stocks the most attractive investment category for the year. His outlook also addresses market dynamics by capitalization. He recommends overweighting small-cap stocks due to their significant undervaluation at an 18% discount to fair value. However, he cautions that small-cap performance might not materialize until later in the year when economic conditions improve and monetary policy becomes more accommodative. Conversely, large-cap and mid-cap stocks are less appealing as they are trading at similar discounts to the overall market. Moreover, monetary policy plays a central role in Sekera's analysis. Morningstar's economics team forecasts three federal funds rate cuts in 2025 and anticipates a gradual economic rebound starting in early 2026. While long-term interest rates are expected to remain stable initially, they are projected to enter a multiyear downward trend later in 2025. He also addressed misconceptions about market sell-offs being driven by tariffs. Instead, he attributed much of the downturn to a concentrated sell-off in AI-related stocks. According to Morningstar's analysis, losses from just ten highly AI-correlated stocks outweighed overall market declines, with seven of these being among the top-performing stocks in 2024. To curate the list of 12 high-growth non-tech stocks that are profitable in 2025, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of non-tech stocks that have grown their revenue and net income by more than 15% over the past 5 years. Next, we cross-checked the 5-year sales growth and net income from Seeking Alpha. We also checked for TTM net income from Yahoo Finance and only added companies that had a TTM net income of more than $500 million. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey's Q4 2024 database. Please note that the data was recorded on March 28, 2025. Also note that for some companies the TTM net income was mentioned in foreign currencies, in such cases it was manually converted to USD. The conversion rates are as of March 28, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A pipeline worker overseeing the flow of crude oil into storage tanks from an integrated water system. Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company that focuses on the acquisition, development, and exploration of unconventional, onshore oil and natural gas reserves in the Permian Basin. It specializes in horizontal drilling within formations like Wolfcamp, Spraberry, and Bone Spring. On March 18, Barclays analyst Betty Jiang maintained a Buy rating on the stock with a price target of $200. Diamondback Energy, Inc. (NASDAQ:FANG) achieved significant operational milestones during the fiscal fourth quarter of 2024. It drilled 131 gross wells in the Midland Basin and six in the Delaware Basin, producing an average of 475.9 MBO/d. This resulted in a net income of $1.1 billion. Diamondback Energy, Inc. (NASDAQ:FANG) is executing a significant drawdown of drilled but uncompleted wells. This strategy is expected to yield approximately $200 million in capital savings for the year. By completing these wells, the company can reduce future drilling costs and accelerate production without incurring additional drilling expenses. It is one of the high-growth non-tech stocks that are profitable in 2025. Overall, FANG ranks 5th on our list of best aerospace and defense stocks to buy according to analysts. While we acknowledge the potential of FANG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FANG but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
31-03-2025
- Business
- Yahoo
Is HDFC Bank Limited (NYSE:HDB) a High-Growth Non-Tech Stock That Is Profitable in 2025?
We recently published a list of 12 High Growth Non-Tech Stocks That Are Profitable in 2025. In this article, we are going to take a look at where HDFC Bank Limited (NYSE:HDB) stands against other high-growth non-tech stocks that are profitable in 2025. On March 27, David Sekera, CFA, chief US market strategist at MorningStar released his Q2 2025 market outlook. He highlights that the market was priced to perfection at the start of the year, trading at a rare premium to its fair value. He advised investors at the start of the year to overweight value stocks, which were attractively priced while underweighting growth stocks that were significantly overvalued. This advice proved prescient as the Morningstar US Market Index fell by 1.74% through March 24, with losses concentrated in growth and core stocks. This was particularly true for stocks linked to artificial intelligence, which dropped by 3.79% and 3.52%, respectively. In contrast, value stocks gained 4.59%, showcasing their resilience. Sekera noted that as of March 24, the US equity market had declined to a price/fair value ratio of 0.95, representing a 5% discount to Morningstar's fair value estimates. Moreover, growth stocks experienced a sharp correction, reducing their premium from 24% at the start of the year to just 3%. On the other hand, despite their recent gains, value stocks became even more undervalued, trading at a 13% discount to fair value. He emphasizes that this has made value stocks the most attractive investment category for the year. His outlook also addresses market dynamics by capitalization. He recommends overweighting small-cap stocks due to their significant undervaluation at an 18% discount to fair value. However, he cautions that small-cap performance might not materialize until later in the year when economic conditions improve and monetary policy becomes more accommodative. Conversely, large-cap and mid-cap stocks are less appealing as they are trading at similar discounts to the overall market. Moreover, monetary policy plays a central role in Sekera's analysis. Morningstar's economics team forecasts three federal funds rate cuts in 2025 and anticipates a gradual economic rebound starting in early 2026. While long-term interest rates are expected to remain stable initially, they are projected to enter a multiyear downward trend later in 2025. He also addressed misconceptions about market sell-offs being driven by tariffs. Instead, he attributed much of the downturn to a concentrated sell-off in AI-related stocks. According to Morningstar's analysis, losses from just ten highly AI-correlated stocks outweighed overall market declines, with seven of these being among the top-performing stocks in 2024. To curate the list of 12 high-growth non-tech stocks that are profitable in 2025, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of non-tech stocks that have grown their revenue and net income by more than 15% over the past 5 years. Next, we cross-checked the 5-year sales growth and net income from Seeking Alpha. We also checked for TTM net income from Yahoo Finance and only added companies that had a TTM net income of more than $500 million. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey's Q4 2024 database. Please note that the data was recorded on March 28, 2025. Also note that for some companies the TTM net income was mentioned in foreign currencies, in such cases it was manually converted to USD. The conversion rates are as of March 28, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A business owner tallying their profits in the back office of a local banking branch. HDFC Bank Limited (NYSE:HDB) is one of India's leading private sector banks, offering a comprehensive suite of banking and financial services. Its operations are divided into key segments such as Retail Banking, Wholesale Banking, Treasury Operations, and other Financial Services. During the fiscal third quarter of 2024, HDFC Bank Limited (NYSE:HDB) reported ₹652.8 billion in consolidated net revenue and ₹176.6 billion in profit after tax. The profit after tax grew by 13.1% year-over-year, whereas the net income rose 7.7% to ₹306.5 billion. Management noted that the bank is navigating a challenging macroeconomic environment in India, marked by tight liquidity, moderating urban demand, and volatility in the Indian rupee. Despite the challenges, HDFC Bank Limited (NYSE:HDB) achieved robust growth in average deposits, with a 16% increase year-over-year. Moreover, it also added over 1,000 branches, enhancing its reach and accessibility for customers. The bank is well-positioned with sufficient liquidity and capital, enabling it to capitalize on opportunities when macroeconomic conditions improve. It is one of the high-growth non-tech stocks that are profitable. Brown Advisors Global Leaders Strategy stated the following regarding HDFC Bank Limited (NYSE:HDB) in its Q4 2024 investor letter: 'HDFC Bank Limited (NYSE:HDB) has shown robust fundamental business drivers, but the shares have relatively underperformed since its merger with former parent HDFC Ltd. This merger enhances HDFC Bank's long-run business opportunities, particularly mortgages, in the Indian market but comes with short-term sub-optimal funding which we expect to unwind over the next couple of years. With an enhanced competitive position, we feel it unlikely this remains an issue over time. HDFC Bank has also shown good downside protection historically when the credit cycle turns, and the bank's defensive lending practices allow it to outperform peers. Impressively, management has expanded lending at the right time historically too. We believe these characteristics remain intact.' Overall, HDB ranks 7th on our list of best aerospace and defense stocks to buy according to analysts. While we acknowledge the potential of HDB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HDB but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
