Latest news with #earningsGrowth
Yahoo
06-07-2025
- Business
- Yahoo
Wells Fargo maintained a Buy rating on Thermo Fisher Scientific (TMO)
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the 11 Best 52-Week Low Stocks to Buy Right Now. On June 26, Brandon Couillard from Wells Fargo maintained a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) with a price target of $570. Analyst Brandon Couillard noted the recent Amendment to the acquisition deal with Solventum Corp (NYSE:SOLV). The revised agreement excludes Solventum's lower-margin Drinking Water Filtration business from the acquisition, reducing the purchase price from about $4.1 billion to $4.0 billion. Couillard believes that this simplifies the transaction and also potentially accelerates its closing by the end of 2025, while improving the financial attractiveness of the deal. A workstation in a research lab stocked with laboratory products and services. The deal revision is expected to be accretive to Thermo Fisher Scientific Inc.'s (NYSE:TMO) earnings per share even after accounting for financing costs. The exclusion of the non-core Drinking Water business aligns with the focus of the company on higher-margin, higher-growth segments, supporting stronger earnings growth. In addition, Thermo Fisher Scientific Inc. (NYSE:TMO) has demonstrated consistent quarter-over-quarter improvement in core growth, with expectations of about 5% core growth in 2025. Moreover, its long-range plan aims to achieve robust organic growth of 7% to 9%, significant operational margin expansion, and double-digit growth in operating profits. Thermo Fisher Scientific Inc. (NYSE:TMO) is a leading company in the life sciences and diagnostics industry. While we acknowledge the potential of TMO 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
South China Morning Post
30-06-2025
- Business
- South China Morning Post
Standard Chartered and UBS bullish on Hong Kong, China stocks on policy support, earnings
Mainland Chinese and Hong Kong stocks will rise in the second half as Beijing's policy support is expected to revive earnings growth, according to Standard Chartered and UBS Group. Advertisement Standard Chartered was overweight on allocations to Chinese equities due to the de-escalation of tariff tensions with the US following the signing of a framework agreement last week, the UK bank said in a report on the second-half outlook on Monday. The bank said it preferred Chinese offshore stocks to onshore ones because many of them were growth companies that had strong upside potential and their valuations were lower than their peers in the US and Europe. Meanwhile, UBS predicted that the premium of mainland China-listed A shares to their Hong Kong counterparts would further narrow this year as more Chinese institutional investors hunted for bargains in Hong Kong via the Stock Connect trading link. A large screen shows the latest stock exchange and economy data in Shanghai. Photo: EPA-EFE 'We see increasing buying interest in H shares by mainland-based mutual funds,' said Meng Lei, a strategist with the Swiss Bank, on Monday, referring to the Hong Kong-listed stocks. 'The price gap between A and H shares is set to narrow further.' Advertisement Standard Chartered set a 12-month target of 25,500 for the Hang Seng Index, implying roughly a 5 per cent gain from the benchmark's current level. The Hang Seng Index advanced 20 per cent in the first half of the year, closing at 24,072.28 on Monday.
Yahoo
21-06-2025
- Business
- Yahoo
Value stocks in aerospace… yes, please!
Melrose Industries (LSE:MRO) and Airbus are both major players in the aerospace sector, albeit the former being much smaller than the latter. However, I also believe they're both rather exciting value stocks, providing exposure to a fast-growing sector with secular trends contributing to strong expected earnings growth. And by secular trends, I'm referring to rising global air traffic, a growing middle class, and surging demand for more efficient, sustainable aircraft. Advancements in digital technologies, artificial intelligence (AI) and automation are transforming manufacturing and maintenance, while defence spending and aftermarket services provide resilient long-term growth opportunities for the sector. What's more, both companies are executing ambitious growth strategies and, crucially, their forward-looking financial metrics suggest the market may be underestimating their long-term potential. Starting with Melrose, the company's transformation into a pureplay aerospace specialist is already showing results. In 2024, adjusted diluted earnings per share (EPS) surged 45% to 26.4p, with operating profit up 38% and margins expanding. Management has set a bold, but achievable, target of more than 20% annual EPS growth through to 2029. Noting the starting point, this could lead us to adjusted EPS between 65.7p and 80.6p by then, depending on the growth scenario. Even using 2023 as the starting point, EPS could reach 55.8p to 71.3p. With shares trading at 475p, this implies a forward 2029 price-to-earnings (P/E) ratio between just 5.9 times and 8.5 times. I'd suggest that's remarkably low for a business with a strong economic moat and one with claims 70% of its revenue comes from products where it's the sole producer. Moreover, the forward price-to-earnings-to-growth (PEG) ratio also points to severe undervaluation. Using the forward P/E ratio of 13.7 times for 2025, and a 20% earnings growth rate, the PEG ratio comes in a 0.69. Yes, the company's carrying a significant amount of debt. — £1.3bn. And if things don't go to plan, that's a bit of a concern. However, even factoring in the debt, the PEG ratio's significantly under one, and far below the global industrials sector average of around 1.8. The stock might not grow 1,000% like Rolls-Royce has from its nadir, but it absolutely could surge. I think we just need to see some solid earnings beats (beating expectations) in order to gain the market's attention. As for Airbus, which is listed in Europe, the financial story is one of steady improvement and growing shareholder returns. The stock currently trades at 24.6 times forward earnings for 2025. This falls to 20.2 in 2026, and just 17.6 by 2027 as earnings accelerate. Taking the forward P/E for 2025 and dividing it by earnings growth of 16%, we get a PEG ratio of 1.54. I don't think that's problematic considering its duopoly in aircraft manufacturing. I'm sure investors will be keen to point out concerns relating to tariffs and even quality assurance. However for me, it remains a quality company with a strong net cash position — €11.8bn. I believe both these stocks should be carefully considered by investors. I'm not the only bull either. Analysts currently see Airbus as undervalued by 13% and Melrose by 33%, suggesting meaningful appreciation in the near term. The post Value stocks in aerospace… yes, please! 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 positions in Melrose Industries Plc and Rolls-Royce Plc. The Motley Fool UK has recommended Melrose Industries Plc and Rolls-Royce Plc. 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 Sign in to access your portfolio
Yahoo
14-06-2025
- Automotive
- Yahoo
Carvana (NYSE:CVNA) Reports Remarkable First-Quarter Earnings Growth
Carvana has been making significant advancements in its business operations, including the recent launch of same-day vehicle delivery in Denver and the establishment of an Inspection and Reconditioning Center in Nashville. These strategic expansions, aimed at enhancing customer convenience and operational capacity, coincide with a substantial quarterly share price increase of 64%. During the same period, Carvana reported remarkable first-quarter earnings growth, which further aligns with the positive market sentiment despite the market remaining largely flat in recent days. These developments underscore the company's commitment to improving service delivery and its adaptability to market demands. Carvana has 4 risks (and 1 which is significant) we think you should know about. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The introduction of same-day vehicle delivery in Denver and the new Inspection and Reconditioning Center in Nashville could have a significant influence on Carvana's operational efficiency and customer satisfaction. These advancements, coinciding with a significant share price jump, align with the company's aim to enhance service delivery. Over the last three years, Carvana's total return, including share price and dividends, increased by a notably large percentage, showcasing the company's substantial growth, even as the annual industry return was lower. In the past year, Carvana outperformed both the US Specialty Retail industry and the broader market, with returns surpassing industry averages. This differentiation highlights Carvana's capacity to generate notable shareholder value amidst broader market conditions. The news mentioned may further bolster revenue and earnings forecasts as expansion and technology adoption are expected to foster sales growth and improved margins. With the share price closely aligning with the analyst consensus price target of $259.81, the market shows confidence in Carvana's capacity to meet these targets, considering both their ambitious growth strategies and potential risks. However, balancing debt levels and operational scaling remains crucial as the company navigates its path forward. Understand Carvana's earnings outlook by examining our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:CVNA. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
The Independent
10-06-2025
- Business
- The Independent
Housebuilding and China trade hopes lift London stocks
Stocks in London ended higher on Tuesday, led by gains in housebuilders and amid signs of progress in US- China trade talks. The FTSE 100 index rose 20.80 points, 0.2%, to 8,853.08. It had earlier risen as high as 8,886.06. The FTSE 250 ended up 103.55 points, 0.5%, at 21,389.46, and the AIM All-Share climbed 2.43 points, 0.3%, to 766.32. In Paris, the Cac 40 rose 0.2%, while Frankfurt's Dax 40 ended 0.8% lower. In the UK, figures showed the unemployment rate rose slightly in the three months to April, as expected, while pay growth was more moderate than forecast. The Office for National Statistics said the rate increased to 4.6% in the period from February to April, in line with FXStreet-cited consensus, from 4.5% in the first three months of 2025. The last time the jobless rate was higher was in the period from April to June 2021, at 4.7%, according to the ONS. The ONS also said annual growth in average earnings was 5.2% for regular earnings, which exclude bonuses, and 5.3% for total earnings, which factor in bonuses. However, regular earnings growth of 5.4% was expected, and total earnings growth of 5.5% was predicted, according to FXStreet. Regular earnings growth eased from 5.5% in the three months to March, and total earnings growth ebbed from 5.6%. 'Today's data was soft across the board. Wage growth slowed in April and was revised lower in March. 'Unemployment rose while vacancies fell. Tax data for May suggests further easing to come. 'This doesn't change our June (Bank of England) call for a hold, but solidifies the case for easing,' analysts at Barclays said. Barclays added that the data 'gives us increased confidence in our forecast that the (Monetary Policy Committee) will cut in August'. Rate cut optimism was reflected in a weaker pound. Sterling was quoted at 1.3509 dollars late on Tuesday afternoon in London, lower compared to 1.3556 dollars at the equities close on Monday. The euro stood at 1.1418 dollars, little changed against 1.1419 dollars. Against the yen, the dollar rose to 144.93 yen compared to 144.42 yen. The data also gave a lift to rate-sensitive housebuilders, who took further encouragement from an upbeat trading statement from Bellway and a rumoured government announcement. Bellway, up 7.9%, said it is on track for 'strong growth in volume output and profits' in its financial year, and it predicted average selling prices will be above previous guidance. The housebuilder said it saw 'robust' trading through the spring selling period. 'Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. 'We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26,' chief executive Jason Honeyman said. Volume output for the year to July 31 is now expected between 8,600 and 8,700 homes, a rise from 7,654 homes in the prior financial year. In its March interim results, it predicted output of at least 8,500 homes. The overall average selling price is now expected to be around £315,000, up from its previous guidance of £310,000 and a rise from £307,909 last year. It put the guidance hike to 'changes in product mix'. 'Bellway's update should be well-received as there was a degree of caution in the market around slower trading after the stamp duty changes,' analysts at Stifel commented. The statement supported the housebuilding sector. On the FTSE 100, Persimmon rose 6.0%, Barratt Redrow climbed 5.6% and Taylor Wimpey advanced 4.6%. In addition, the Financial Times reported that Chancellor Rachel Reeves has drawn up plans for a housing bank, to be announced as early as Wednesday's spending review, alongside a potential long-term funding settlement for affordable homes of up to £25 billion. The plans would enable Homes England, the Government's housing agency, to more easily deliver cheaper financing to housebuilders by redesignating it as a public financial institution, according to FT sources. Analysts at RBC Capital Markets said this would provide 'a welcome lift to the sector'. In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.3% higher, and the Nasdaq Composite 0.2% to the good at the time of the closing bell in London. The yield on the US 10-year Treasury was quoted at 4.48%, narrowing from 4.49% on Monday. The yield on the US 30-year Treasury was quoted at 4.95%, narrowing from 4.96%. Negotiations between US and Chinese officials in London stretched into a second day, with Washington sending positive signals that the two superpowers might resolve a bitter trade war dragging on the global economy. The talks were 'going well,' US commerce secretary Howard Lutnick told Bloomberg Television, adding he expected Tuesday's discussions to last 'all day'. US President Donald Trump told reporters at the White House on Monday: 'We are doing well with China. China's not easy.' He added: 'I'm only getting good reports.' Back in London, Marks & Spencer rose 3.8% after it reopened its website to shoppers, having been forced to halt internet orders in April following a damaging cyber attack. The retail giant said shoppers are now able to buy a selection of its best-selling fashion ranges and new products for home delivery to England, Scotland and Wales. Rival Next, a perceived beneficiary from the outage at M&S, fell back 2.7%. On the FTSE 250, Hochschild Mining plunged 23% after the London-based gold and silver miner in Argentina, Brazil and Peru said it expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project. Hochschild Mining said it has suffered 'contractor performance issues', alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years. Hochschild is planning to suspend operations at Mara Rose's processing plant for about six weeks in order to carry out repairs, but it insists that mining 'will continue as planned'. The biggest risers on the FTSE 100 were Persimmon, up 77.50 pence at 1,380.0p, Barratt Redrow, up 25.30p at 475.3p, Taylor Wimpey, up 5.35p at 121.7p, Marks & Spencer, up 13.60p at 373.4p and Shell, up 90.5p, at 2,595.5p. The biggest fallers on the FTSE 100 were Standard Chartered, down 34.0p at 1,148.0p, Barclays, down 9.1p at 323.3p, Next, down 345.0p at 12,495.0p, BAE Systems, down 50.5p at 1,872.0p, and Fresnillo, down 34.0p at 1,340.0p. Brent oil rose to 67.82 dollars a barrel late in London on Tuesday afternoon, from 66.88 dollars late on Monday. Gold was quoted lower at 3,325.36 dollars an ounce against 3,329.84 dollars on Monday. Wednesday's global economic calendar sees a US inflation reading. The UK corporate calendar on Wednesday has full-year results from pub operator Fuller, Smith & Turner.
