3 Reasons Why This Beaten-Down Growth Stock Could Trounce the S&P 500 in the Second Half of 2025
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CTV News
an hour ago
- CTV News
Eastern Canadian premiers, U.S. governors to meet in Boston Monday
The flags of Canada and the United States fly outside a hotel in downtown Ottawa, on Saturday, Feb. 1, 2025. THE CANADIAN PRESS/Justin Tang Eastern Canadian premiers and U.S. state governors will gather in Boston Monday to discuss trade and tariffs. The meeting, announced last month, is expected to focus on energy, manufacturing, and tourism in face of U.S. President Donald Trump's trade war. Attending the meeting from Canada will be Newfoundland and Labrador Premier John Hogan, Prince Edward Island Premier Rob Lantz, Nova Scotia Premier Tim Houston, New Brunswick Premier Susan Holt, Quebec economic minister Christine Fréchette, and Ontario Premier Doug Ford. The premiers were invited to the meeting by Maine Gov. Janet Mills, Vermont Gov. Phil Scott, Rhode Island Gov. Daniel McKee, Connecticut Gov. Ned Lamont, Massachusetts Gov. Maura Healey, and New York Gov. Kathy Hochul. Canada is the largest single trading partner for Massachusetts and Maine. Mills said Trump's tariffs have damaged her state's economy and relationship with Canada. 'I understand, their feelings are hurt,' said Mills about Canadians, in an interview with CTV News Atlantic's Todd Battis Friday. 'My feelings are hurt too. The people who have a deep seeded relationship with Canada are all hurt by this. We share that feeling.' Mills and Holt have held multiple discussions about trade over the past several months. Holt, along with Lantz, travelled to Boston in March to meet with Healey. Holt said she planned to focus on energy development at Monday's meeting. 'New Brunswick supplies a lot of energy products to New England,' Holt said to reporters Thursday. 'I think 90 per cent of the cars in Boston are driving with gas that comes from the Irving refinery and us. They are keen to make sure we will continue to be a reliable supplier of energy to them.' With files from CTV's Todd Battis and Avery MacRae For more New Brunswick news, visit our dedicated provincial page.
Globe and Mail
2 hours ago
- Globe and Mail
These 3 Stocks Are Buying Back Billions in Shares
As market volatility and sector rotations persist in 2025, companies sitting on strong balance sheets are leaning into one of the most shareholder-friendly strategies available: stock buybacks. A wave of fresh repurchase authorizations has hit the tape in recent weeks, signaling confidence from management teams about the future of their businesses and the current undervaluation of their stocks. These announcements are especially notable in the current environment, where selective value and capital return are once again top priorities for investors. Multiple large-cap stocks just announced significant buyback programs. Among them is one of the hottest consumer discretionary names over the past few years. It now has buyback capacity equal to nearly 16% of its market cap, and its shares are down massively from highs. This suggests the company is highly confident in the ability of its shares to perform well going forward. LII: Strong Mid-Term Industrials Performer Boosting Buybacks and Dividends [content-module:CompanyOverview|NYSE:LII] First up is Lennox International (NYSE: LII), an approximately $20 billion player in the heating, ventilation, air conditioning, and refrigeration space. On May 22, the company announced an increase to its buyback capacity of $1 billion, bringing its total capacity to just under $1.3 billion. As of the May 30 close, this is equal to about 6.4% of the company's market capitalization. In addition, the company announced a very notable 13% increase to its quarterly dividend. The next $1.30 per share dividend will be payable on July 15 to shareholders of record on June 30. This gives the stock an indicated dividend yield of 0.9%. Despite achieving relatively moderate sales growth over the last couple of years, Lennox has been a standout performer. Since the end of 2022, the stock has provided a total return of nearly 142% as of the May 30 close. The company's operating margin expanded significantly from around 14% in 2022 to nearly 19.5% in 2024. Its full-year adjusted earnings per share (EPS) grew by 54% over this period, supporting the rise in shares. DECK: Ups Repurchase Capacity After Quarter of Record Buybacks [content-module:CompanyOverview|NYSE:DECK] Next up is one of the most talked-about consumer discretionary stocks over the past several years, Deckers Outdoor (NYSE: DECK). From the beginning of 2022 to Jan. 30, 2025, the stock gained approximately 265%. However, since then, the trajectory of the Hoka shoemaker's stock has pointed straight down. From that all-time high in January, the stock is down approximately 53% as of the May 30 close. The company's recent share repurchase authorization announcement indicates that it may be looking to take advantage of this huge fall from grace. On May 22, along with its fiscal Q4 2025 results, Deckers announced it had increased its buyback authorization to approximately $2.5 billion. This equates to an absolutely massive 15.8% of the company's market capitalization as of the May 30 close. This gives the company a huge ability to decrease its outstanding share count and provide a large tailwind to its EPS. The company already stepped up its buybacks in a big way in calendar Q1 as the huge drop in shares began to manifest. The company spent $266 million on repurchases, by far the highest amount in a single quarter in its history. In Q4, when shares were nearing their peak, the company spent just $50 million on buybacks. This buyback authorization suggests the firm may be looking to step up repurchases even further. Decker's cash balance of just under $1.9 billion, while only having $277 million in debt, gives it a very strong ability to do so. Adding to this ability is the fact that the company is relatively frugal when it comes to capital expenditures, spending an average of just $22 million over the last four quarters. TS: Robust Balance Sheet, 5% Dividend, Substantial Buyback Capacity [content-module:CompanyOverview|NYSE:TS] Last up is Tenaris (NYSE: TS). The large-cap steel pipe supplier for oil and gas companies recently approved a substantial new share repurchase program, valued at $1.2 billion. As of the May 30 close, this number is equal to approximately 6.7% of the company's market capitalization. Tenaris also has a very strong dividend yield of just under 5%. Tenaris first started buying back shares at the beginning of 2024. The company has been making notable use of buybacks since, spending an average of $315 million on repurchases per quarter. This buyback pace suggests it could use its full capacity over the next 12 months. Tenaris remains in a very strong position to continue this buyback pace if it chooses. It ended last quarter with a net cash balance of $4 billion and generated free cash flow of over $2.1 billion in the last 12 months. Thus, if operating results remain similar going forward, the company could execute its full buyback capacity without reducing its cash reserves. Overall, these three firms are reiterating their commitment to returning capital to shareholders through their new buyback authorization. Deckers stands out due to the dramatic fall in its share price and its gigantic buyback authorization. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
Globe and Mail
2 hours ago
- Globe and Mail
This 6.7% Dividend Stock Looks Absurdly Good Today
I first initiated a position in Enterprise Products Partners (NYSE: EPD) more than two years ago. How has that investment fared so far? Not bad. The midstream energy company has generated a total return of roughly 45%. Granted, that performance lags behind the S&P 500 's total return of 56% during the same period. However, one thing I could count on, rain or shine, with Enterprise Products Partners was (and is) its juicy distribution. How does the stock look today? Absurdly good, in my opinion. An income investor's dream stock First of all, Enterprise Products Partners is an income investor's dream stock. It currently offers a forward distribution yield of 6.7%. The master limited partnership (MLP) doesn't have to produce much in the way of unit price appreciation to deliver a solid total return. What's more, Enterprise boasts an outstanding track record of distribution hikes. The company has increased its distribution for 26 consecutive years. It has also paid $1.2 billion in "invisible" distributions since its initial public offering in 1998 via unit buybacks. Building this impressive record wasn't easy. Enterprise Products Partners faced multiple big challenges through the years, including the financial crisis of 2007 through 2009, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic of 2020 through 2022. However, it was able to generate strong cash flow per unit to fund its distributions during every crisis. Some rivals were forced to resort to selling assets to cover their distributions during tough periods. Not Enterprise Products Partners. It's the only midstream energy company that has been able to grow its adjusted cash flow from operations (CFFO) per unit and reduce unit count without any material asset sales. Today, Enterprise Products Partners operates more than 50,000 miles of pipeline. It owns 43 natural gas processing trains and 26 fractionators, which separate the components of hydrocarbons. In addition, the MLP can store over 300 million barrels of liquids and has 20 deepwater docks. More to the story I mentioned earlier that Enterprise Products Partners' total return hasn't been as high as the S&P 500's since I bought it. If we looked back over the last five years, though, it would be a different story. Enterprise has also narrowly outperformed the S&P 500 in total return so far in 2025. The MLP's distribution isn't the only reason behind its market-beating total returns. The rising demand for U.S. hydrocarbons, especially natural gas liquids (NGLs), has played a key role as well. I think these demand trends will extend well into the future. Production of oil, NGLs, and natural gas is projected to increase steadily through the end of this decade. Artificial intelligence (AI) is an important driver behind the higher demand for natural gas. The data centers that host AI models require massive amounts of electricity, and natural gas is a good option to fuel the power plants that serve these data centers. In addition, LNG demand in Asia and Europe is expected to rise by roughly 30% by 2030. Enterprise is well positioned to capitalize on the demand growth. The MLP has $7.6 billion in major capital projects underway, with $6 billion of these projects projected to come online this year. It is also hitting the ground to create more opportunities: Enterprise's staff have visited over 20 international cities to boost export growth. An attractive valuation, too What more could investors want than an ultra-high-yield distribution and solid growth prospects? An attractive valuation. Enterprise Products Partners has that, too. The MLP's units trade at 11.2 times forward earnings. That's the lowest forward earnings multiple in its peer group. It's also well below the S&P 500 energy sector's forward price-to-earnings ratio of 15.9. I think Enterprise Products Partners easily qualifies as an absurdly good stock to buy right now. Should you invest $1,000 in Enterprise Products Partners right now? Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
