Asian Markets Face Soft Start as US Rally Fades: Markets Wrap
Asian markets were set to decline in early trading Friday as curbed market optimism was driven by a slowing US economy and legal uncertainties around President Donald Trump's trade war.
US equity futures slipped after the S&P 500 Index pared most of an advance that earlier approached 1%. Contracts for Australia, Japan and Hong Kong pointed to a loss when cash markets reopen Friday. The dollar was mixed in early trading against major currencies.
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Tiger Management Alumnus Snoddy to Launch Japan Engagement Fund
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Yahoo
30 minutes ago
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20 stocks primed for rapid growth while trading at half of Nvidia's valuation
When selecting investments, it is easy to get hung up on a particular metric, such as a dividend yield or a price ratio, but investors need to look deeper or they might miss opportunities. Inc. AMZN provides an example: Its stock has typically traded at a high price-to-earnings ratio. Investors tend to look at a stock's forward P/E ratio, which is the price divided by analysts' consensus estimate for earnings per share over the following 12 months. Over the past 10 years, Amazon's stock has traded at an average forward P/E of 79.5, while the S&P 500 SPX has traded at an average forward P/E of 18.7, according to FactSet. But Amazon's stock was up 855% for 10 years through Friday, while the S&P 500 returned 235% with dividends reinvested. My daughter's boyfriend, a guest in my home, offered to powerwash part of my house — then demanded money What on Earth is going on with the American consumer? My father-in-law has dementia and is moving in with us. Can we invoice him for a caregiver? 'The situation is extreme': I'm 65 and leaving my estate to only one grandchild. Can the others contest my will? 20 stocks primed for rapid growth while trading at half of Nvidia's valuation It turns out that for Amazon's management team, bottom-line earnings traditionally weren't a focus. The emphasis was on reinvesting most of the cash being generated to expand the business in multiple directions. So the Amazon story was about revenue growth, rather than EPS growth. And that brings us to Nvidia Corp. NVDA. Last week Laila Maidan looked into Nvidia's relatively high forward P/E and explained why the stock might still be considered a bargain for long-term investors, based on analysts' expectations for the company's revenue growth. Nvidia's stock traded at a forward P/E of 28.1 at Friday's close, while the S&P 500 traded at a weighted forward P/E of 21.4. It is not a surprise to see Nvidia trading at a P/E valuation that is 31% higher than that of the index. But based on consensus estimates among analysts polled by FactSet, Nvidia is expected to increase its sales per share at a compound annual growth rate of 41.7% through 2026, versus an expected sales-per-share CAGR of 5.5% for the S&P 500. All such estimates in this article are adjusted by FactSet to match calendar years; about 20% of companies in the S&P 500 have fiscal reporting periods that don't match the calendar. For Nvidia, investors pay a premium for the higher expected growth rate. And that sets the stage for a stock screen. Which companies trading at low P/E multiples are also expected to increase revenue quickly? For this screen we are looking at revenue growth projections — specifically sales per share. We are using the per-share numbers because they reflect expected dilution to a company's share count if it issues new shares to help fund an acquisition. Merging with a competitor will obviously make revenue increase. But if the share count rises significantly, sales per share will be lower. The per-share numbers help investors to understand whether or not a company might have overpaid for an acquisition. Starting with the S&P 500, we narrowed the list to companies trading at forward P/E ratios of 14 or less — half Nvidia's valuation. Actually, we rounded down, so the list was confined to stocks trading at a forward P/E of less than 14.5. Then we sorted the list by expected sales-per-share CAGR from calendar 2024 through 2026, based on consensus estimates among analysts polled by FactSet. Here are the 20 stocks in the S&P 500 with the highest expected sales-per-share CAGR through 2025 among those trading at a P/E of less than 14.5: Company Ticker Industry Forward P/E Expected sales-per-share CAGR from 2024 through 2026 Expand Energy Corp. EXE Integrated Oil 12.0 39.6% Super Micro Computer Inc. SMCI Computer Processing Hardware 14.1 31.9% EQT Corp. EQT Integrated Oil 13.6 26.0% Micron Technology Inc. MU Semiconductors 9.4 23.2% Coterra Energy Inc. CTRA Integrated Oil 8.3 21.2% First Solar Inc. FSLR Solar Power Equipment 8.7 20.5% Norwegian Cruise Line Holdings Ltd. NCLH Hotels/ Resorts/ Cruiselines 7.9 15.9% Incyte Corp. INCY Pharmaceuticals 10.7 15.5% Seagate Technology Holdings PLC STX Computer Peripherals 12.4 15.0% Gen Digital Inc. GEN Software 11.1 13.0% DaVita Inc. DVA Medical/ Nursing Services 11.6 12.0% Oneok Inc. OKE Oil & Gas Pipelines 14.2 11.8% Molina Healthcare Inc. MOH Managed Healthcare 11.7 11.8% Aptiv PLC APTV Electrical Products 9.0 10.9% UnitedHealth Group Inc. UNH Managed Healthcare 12.5 10.7% Elevance Health Inc. ELV Managed Healthcare 10.5 10.4% Dell Technologies Inc. Class C DELL Computer Processing Hardware 11.4 10.2% American International Group Inc. AIG Multi-Line Insurance 12.2 10.2% HCA Healthcare Inc. HCA Hospital/ Nursing Management 14.4 9.9% Ball Corp. BALL Containers/ Packaging 14.3 9.7% Source: FactSet You may need to scroll the table to see all of the data. It is a varied list. Super Micro Computer SMCI ranks second, with a 31.9% CAGR expected for sales per share through 2026. The stock soared last month after President Donald Trump announced investment agreements with Saudi Arabia to build data centers in the U.S., which lifted suppliers of related equipment. Read: Super Micro's stock keeps surging. Here's what might come next. It might surprise you to see UnitedHealth Group UNH on the list, in light of the company's numerous difficulties. These have included higher-than-expected costs in its Medicare Advantage business, reports of a government investigation into possible healthcare fraud and the departure of Chief Executive Andrew Witty. But with the stock having tumbled 40% this year through Friday, with dividends reinvested, analysts working for brokerage and research firms believe the worst is over, with 21 out of 29 analysts polled by FactSet rating UnitedHealth a buy or the equivalent. Only three of the analysts rate the stock a sell or the equivalent. Leaving the companies passing the screen in the same order, here is a summary of analysts' opinions about the stocks: Company Ticker Share buy ratings Share neutral ratings Share sell ratings May 30 price Consensus price target Implied 12-month upside potential Expand Energy Corp. EXE 90% 10% 0% $116.13 $128.45 11% Super Micro Computer Inc. SMCI 47% 41% 12% $40.02 $40.69 2% EQT Corp. EQT 72% 24% 4% $55.13 $60.63 10% Micron Technology Inc. MU 85% 12% 3% $94.46 $123.95 31% Coterra Energy Inc. CTRA 83% 17% 0% $24.31 $33.41 37% First Solar Inc. FSLR 78% 20% 2% $158.08 $202.43 28% Norwegian Cruise Line Holdings Ltd. NCLH 72% 28% 0% $17.65 $23.65 34% Incyte Corp. INCY 45% 52% 3% $65.06 $73.95 14% Seagate Technology Holdings PLC STX 59% 36% 5% $117.94 $119.88 2% Gen Digital Inc. GEN 45% 55% 0% $28.48 $31.83 12% DaVita Inc. DVA 9% 83% 8% $136.26 $167.14 23% ONEOK Inc. OKE 67% 33% 0% $80.84 $106.75 32% Molina Healthcare Inc. MOH 42% 47% 11% $305.04 $356.93 17% Aptiv PLC APTV 68% 23% 9% $66.81 $75.76 13% UnitedHealth Group Inc. UNH 73% 17% 10% $301.91 $376.05 25% Elevance Health Inc. ELV 75% 25% 0% $383.84 $491.94 28% Dell Technologies Inc. Class C DELL 81% 19% 0% $111.27 $136.52 23% American International Group Inc. AIG 55% 45% 0% $84.64 $90.88 7% HCA Healthcare Inc. HCA 59% 34% 7% $381.39 $387.95 2% Ball Corp. BALL 61% 33% 6% $53.58 $61.23 14% Source: FactSet Any stock screen has its limits and should only be used as a tool as part of your own research if you are selecting individual companies for investment. Click on the tickers for more about each company. 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Yahoo
an hour ago
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Antisemitism is on the rise. Here's how the West is reacting
President Donald Trump condemned the attack in Boulder, Colorado, on a group advocating for the release of Israeli hostages held by Hamas in Gaza. The police arrested a man who allegedly threw Molotov cocktails and used a makeshift flamethrower on a crowd of 20 people. The suspect, disguised as a gardener, yelled 'free Palestine' during the attack, according to eyewitnesses. He faces hate crime charges in federal court, according to The Associated Press. Twelve people suffered injuries. Trump on Monday said the attack 'will not be tolerated' and blamed former President Joe Biden's border policies for allowing the suspect to come to the U.S. Sources at the Department of Homeland Security and Immigration and Customs Enforcement told Fox News the suspect 'is an Egyptian national who overstayed his visa.' Trump promised that such 'acts of terrorism will be prosecuted to the fullest extent of the law' before expressing his condolences to the victims and Coloradans. This is one of the latest high-profile incidents of violence to make headlines. Late last month, another suspect chanting 'free Palestine' fatally shot two staff members at the Israeli Embassy in Washington, D.C., as they were leaving an event at the Capital Jewish Museum. The police identified the victims as Yaron Lischinsky, a Christian Israeli man, and Sarah Milgrim, a Jewish American woman, as the Deseret News reported. Antisemitism and political violence are on the rise in the U.S. According to the Anti-Defamation League, more than 9,350 instances of antisemitism were recorded in 2024, a 344% increase over the past five years. The White House is putting up a fight against colleges by directly negotiating for more oversight with prestigious educational institutions like Harvard University. The Federal Task Force to Combat Anti-Semitism led the fight against Harvard and other universities where antisemitic incidents have been reported. Several states are also taking note of a rise in hate crimes against American Jews in the U.S. and proposing legislation to address this troubling trend. In Colorado, Gov. Jared Polis, who is Jewish and represented the state in Congress for a decade, condemned the Boulder attack publicly and through a letter signed by more than two dozen state and local leaders. Here's what other Western states are proposing. A recent bill from the state House, which was passed in the state Senate, would ban educators in Arizona's public schools and colleges from teaching antisemitism. Teachers and university professors can be held liable if they are found to be teaching or promoting antisemitism. Rep. Michael Way, a Republican, introduced the bill to make schools a place of learning, 'not breeding grounds for hatred and discrimination,' he said in February. 'Arizona has zero tolerance for antisemitism, and this bill ensures that our classrooms are free from the toxic ideology that fuels division and hostility,' the press release said. The state's teacher's union wrote a letter to Arizona Gov. Katie Hobbs, opposing the bill, which, they argue, 'strips Arizona public school educators of professional liability protections if they face accusations of antisemitism.' The letter added the bill doesn't address 'racism, sexism, anti-LDS bias, Islamophobia, or other forms of bigotry.' HB2867 also does not cover incidents of antisemitism at private schools supported by taxpayer-funded vouchers. The Democratic-led Nevada Legislature passed a bill that defines antisemitism for discrimination investigations. The language in the bill, now on the governor's desk, defines antisemitism as 'a certain perception of Jews, which may be expressed as hatred toward Jews. Rhetorical and physical manifestations of antisemitism are directed toward Jewish or non-Jewish Individuals and/or their property, toward Jewish community institutions and religious facilities.' It uses the widely used definition provided by the International Holocaust Remembrance Alliance. Jolie Brislin, regional director of the Anti-Defamation League, told the Las Vegas Review-Journal this definition 'does not limit free speech or punish criticism of Israel.' The final vote on the bill came a day after the attack in Boulder. Two Jewish teenagers from Las Vegas — 15-year-old Ethan Cohen and 14-year-old Meyer Delee — helped put a spotlight on the bills that designate Jan. 27 each year as 'International Holocaust Remembrance Day' and define antisemitism for the Nevada Equal Rights Commission. Like other states in the West, members of California's Legislative Jewish Caucus initially pursued a bill to create standards for what's acceptable coursework for the state's ethnic studies classes. They wanted to prevent students from being exposed to dangerous content in classrooms. But the caucus shifted strategies and decided to widen the scope by backing a law that strengthens the processing of discrimination complaints to include educators and board members and install an 'antisemitism coordinator' for the state. 'There have been troubling reports of incidents of antisemitism happening within the very spaces meant to foster inclusion and critical thinking,' state Sen. Akilah Weber Pierson, D-La Mesa, chair of the Legislative Black Caucus, told J-Weekly. Her caucus supports the bill. 'We've heard allegations that some educators and even school board members have made comments that marginalize or exclude Jewish voices.' Activists who support Palestine said the bill censors people who criticize Israel.
