Latest news with #macroeconomics
Yahoo
8 hours ago
- Business
- Yahoo
Otis lowers annual revenue forecast on muted new equipment sales
(Reuters) -Elevator maker Otis Worldwide lowered its annual revenue forecast on Wednesday, anticipating sustained weakness in the demand for new equipment amid global macroeconomic uncertainty. Shares of the Farmington, Connecticut-based company fell 10% premarket following the results. Sales of new equipment remained under pressure during the second quarter, with declines in the Americas, China and Asia Pacific offseting the growth in the EMEA region. Quarterly net sales in Otis' new equipment segment fell by 10% to $1.28 billion from a year ago. China, a significant market for Otis, has also been denting the company's revenue due to a slow recovery in its property market and added risk from the fresh U.S. import tariffs. The company's total net sales came in at $3.60 billion for the three months ended June 30, below analysts' average estimate of $3.71 billion, according to LSEG compiled data. However, Otis' adjusted quarterly profit of $1.05 per share marginally surpassed estimates of $1.03. The company expects its annual net sales to be between $14.5 billion and $14.6 billion, down from its earlier view of $14.6 billion to $14.8 billion. It reiterated its full-year adjusted profit forecast of $4 to $4.10 per share, compared with analysts' estimates of $4.04 per share.
Yahoo
2 days ago
- Business
- Yahoo
1 Industrials Stock with Exciting Potential and 2 Facing Headwinds
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that sway capital spending, like interest rates. Wariness surrounding these influences has caused the industry to underperform the market as it was flat over the past six months while the S&P 500 climbed by 4.1%. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one resilient industrials stock at the top of our wish list and two best left ignored. Two IndustrialsStocks to Sell: Waste Management (WM) Market Cap: $91.48 billion Headquartered in Houston, Waste Management (NYSE:WM) is a provider of comprehensive waste management services in North America. Why Does WM Give Us Pause? Sizable revenue base leads to growth challenges as its 7.2% annual revenue increases over the last two years fell short of other industrials companies 6 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Waste Management's stock price of $227.33 implies a valuation ratio of 29.4x forward P/E. If you're considering WM for your portfolio, see our FREE research report to learn more. Mercury Systems (MRCY) Market Cap: $3.09 billion Founded in 1981, Mercury Systems (NASDAQ:MRCY) specializes in providing processing subsystems and components for primarily defense applications. Why Should You Dump MRCY? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Revenue growth over the past five years was nullified by the company's new share issuances as its earnings per share fell by 28% annually Eroding returns on capital from an already low base indicate that management's recent investments are destroying value At $52.03 per share, Mercury Systems trades at 73.6x forward P/E. Read our free research report to see why you should think twice about including MRCY in your portfolio, it's free. One Industrials Stock to Buy: GE Aerospace (GE) Market Cap: $279.2 billion One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare. Why Are We Bullish on GE? Annual revenue growth of 16.1% over the last two years was superb and indicates its market share increased during this cycle GE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders Improving returns on capital reflect management's ability to monetize investments GE Aerospace is trading at $263.73 per share, or 44.6x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles 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
Yahoo
2 days ago
- Business
- Yahoo
3 Industrials Stocks with Open Questions
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that sway capital spending, like interest rates. Wariness surrounding these influences has caused the industry to underperform the market as it was flat over the past six months while the S&P 500 climbed by 4.1%. Some companies can grow regardless of the economic backdrop, but the odds aren't great for the ones we're analyzing today. On that note, here are three industrials stocks best left ignored. Albany (AIN) Market Cap: $2.11 billion Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries. Why Should You Sell AIN? 3% annual revenue growth over the last five years was slower than its industrials peers Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 9 percentage points Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 6.3% annually Albany's stock price of $70.29 implies a valuation ratio of 11.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why AIN doesn't pass our bar. Great Lakes Dredge & Dock (GLDD) Market Cap: $758.1 million Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally. Why Does GLDD Give Us Pause? Annual revenue growth of 1.8% over the last five years was below our standards for the industrials sector Cash burn makes us question whether it can achieve sustainable long-term growth Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Great Lakes Dredge & Dock is trading at $11.65 per share, or 16x forward P/E. If you're considering GLDD for your portfolio, see our FREE research report to learn more. Whirlpool (WHR) Market Cap: $5.18 billion Credited with introducing the first automatic washing machine, Whirlpool (NYSE:WHR) is a manufacturer of a variety of home appliances. Why Do We Pass on WHR? Disappointing unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned 9× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings At $93.47 per share, Whirlpool trades at 10x forward P/E. Dive into our free research report to see why there are better opportunities than WHR. Stocks We Like More Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
PBOC governor, Bank of America senior executive discuss economy, financial markets
BEIJING (Reuters) -China's central bank governor Pan Gongsheng met Bank of America's president of international business Bernard Mensah earlier this week to discuss economic and financial matters, the People's Bank of China said in a statement on Friday. The Tuesday meeting included an exchange of views on the global economic and financial situation, China's macroeconomic policies, and its financial markets, the PBOC said.
Reuters
6 days ago
- Business
- Reuters
PBOC governor, Bank of America senior executive discuss economy, financial markets
BEIJING, July 18 (Reuters) - China's central bank governor Pan Gongsheng met Bank of America's president of international business Bernard Mensah earlier this week to discuss economic and financial matters, the People's Bank of China said in a statement on Friday. The Tuesday meeting included an exchange of views on the global economic and financial situation, China's macroeconomic policies, and its financial markets, the PBOC said.
