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Five Risks for Stocks That Cloud the Outlook for the Second Half

Five Risks for Stocks That Cloud the Outlook for the Second Half

Bloomberg28-06-2025
Some of the world's biggest money managers are wary of chasing the stock rally further in the second half of 2025, bracing for more volatility.
Markets are wrapping up a wild six months that saw the S&P 500 plunge 19% from peak to trough, before it recouped those losses. The index closed at a record high on Friday after the ceasefire between Israel and Iran revived the risk-on rally.
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LANXESS Aktiengesellschaft (ETR:LXS) Just Released Its Half-Year Earnings: Here's What Analysts Think
LANXESS Aktiengesellschaft (ETR:LXS) Just Released Its Half-Year Earnings: Here's What Analysts Think

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LANXESS Aktiengesellschaft (ETR:LXS) Just Released Its Half-Year Earnings: Here's What Analysts Think

Explore LANXESS's Fair Values from the Community and select yours LANXESS Aktiengesellschaft (ETR:LXS) just released its latest interim report and things are not looking great. It was a pretty negative result overall, with revenues of €3.1b missing analyst predictions by 3.4%. Worse, the business reported a statutory loss of €1.18 per share, much larger than the analysts had forecast prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, the current consensus, from the 14 analysts covering LANXESS, is for revenues of €6.01b in 2025. This implies a noticeable 2.3% reduction in LANXESS' revenue over the past 12 months. Per-share losses are predicted to creep up to €2.01. Yet prior to the latest earnings, the analysts had been forecasting revenues of €6.17b and losses of €1.21 per share in 2025. So it's pretty clear the analysts have mixed opinions on LANXESS after this update; revenues were downgraded and per-share losses expected to increase. Check out our latest analysis for LANXESS There was no major change to the consensus price target of €27.61, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on LANXESS, with the most bullish analyst valuing it at €38.00 and the most bearish at €20.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.5% by the end of 2025. This indicates a significant reduction from annual growth of 1.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - LANXESS is expected to lag the wider industry. The Bottom Line The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at €27.61, with the latest estimates not enough to have an impact on their price targets. With that in mind, we wouldn't be too quick to come to a conclusion on LANXESS. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple LANXESS analysts - going out to 2027, and you can see them free on our platform here. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for LANXESS that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. 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

£20,000 in savings? Here's how investors can aim to turn that into a £1,680 second income overnight!
£20,000 in savings? Here's how investors can aim to turn that into a £1,680 second income overnight!

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£20,000 in savings? Here's how investors can aim to turn that into a £1,680 second income overnight!

Having 20 grand in the bank is a nice lump sum of capital to get started generating a chunky second income using the stock market. When leveraging a FTSE 100 index fund, it's enough to instantly start earning £660 passive income overnight. And for investors willing to take on more risk, there are some dividend-paying stocks offering more than 8% right now. Take Legal & General Group (LSE:LGEN) as an example to consider. The insurance stock currently has an 8.4% payout, enough to start earning a £1,680 second income straight away. So what's the catch? Investigating the yield Generally speaking, a high dividend yield usually stems from a sudden drop in a stock price. Yet looking at Legal & General, that doesn't appear to be the case. In fact, the shares are actually up close to 15% in the last 12 months, and the company's been hiking shareholder payouts for the previous four years in a row. That certainly makes the high yield seem like it's here to stay. But if that's the case, why aren't more investors jumping aboard to take advantage? Despite recent outperformance, there's growing concern among institutional investors that earnings will soon be under pressure. Higher interest rates have made their long-term annuity financial products very popular in recent years, resulting in gold-rush-like growth. However, with rates coming down, demand's starting to slow. And in the meantime, all the recently-created annuity products issued during the higher interest rate environment now introduce long-duration risk exposure as well as miss-pricing risk. This creates two problems: lower future growth and increased sensitivity to market shocks. And if Legal & General fails to hedge against these threats, earnings and, in turn, dividends could end up on the chopping block. A risk worth taking? The risk of earnings pressure is why Legal & General shares offer such a generous dividend today. However, despite these looming challenges, it's worth pointing out that the company's in a fair strong position at the moment. The group maintains a Solvency II ratio of 217%. That's a very strong signal for robust financial health and provides a significant capital buffer against a market downturn. At the same time, management's been busy executing numerous operational efficiency schemes to bolster margins across its key divisions. For example, its Asset Management division's on track to steadily grow its operating profits to as high as £600m by 2028, versus the £401m achieved in 2024. And with the long-term demand for its Institutional Retirement products climbing on the back of an ageing population, dividends might be more sustainable than many investors currently think. The bottom line All things considered, Legal & General seems to offer a compelling case for investors seeking to build a second income stream. Admittedly, this comes paired with an elevated risk profile compared to other dividend opportunities in the FTSE 100. But given the level of payout, investors with a higher risk tolerance may want to investigate further. The post £20,000 in savings? Here's how investors can aim to turn that into a £1,680 second income overnight! 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 Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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

Mohamed bin Zayed University of Artificial Intelligence begins new academic year with largest-ever cohort of 400+ students
Mohamed bin Zayed University of Artificial Intelligence begins new academic year with largest-ever cohort of 400+ students

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Mohamed bin Zayed University of Artificial Intelligence begins new academic year with largest-ever cohort of 400+ students

ABU DHABI,UAE, Aug. 16, 2025 /PRNewswire/ -- Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) has welcomed its largest cohort for its Fall 2025 intake, enrolling 403 new students. This includes its inaugural undergraduate class, new graduate cohorts in existing programmes in Computer Science, Computer Vision, Machine Learning, Natural Language Processing, and Robotics, and the first intakes into the Master of Science in Statistics & Data Science and Master in Applied Artificial Intelligence. This semester received more than 8,000 applications across the university's Bachelor and graduate programmes, yielding an acceptance rate of 5 per cent, and reinforcing the university's prestigious position and ability to attract the best talent in the UAE and from around the world. Timothy Baldwin, MBZUAI Provost and Professor of Natural Language Processing, said: "This year, MBZUAI welcomes our largest cohort of graduate students alongside our inaugural undergraduate class. Artificial intelligence is transforming the world at a pace that vastly outstrips traditional education models. To realise its full global potential, MBZUAI invests heavily in reviewing and updating our programmes to reflect modern AI research methodology and workflows, based on our bleeding-edge AI research credentials and grounded in societal and industrial needs. As a young institution, MBZUAI has already earned a place among the world's top 10 AI universities based on our research credentials. With the introduction of our undergraduate and Master's in Applied AI programmes, we continue to build world-leading programmes aligned with the UAE's National Strategy for AI 2031 and supporting Abu Dhabi's rapidly growing AI ecosystem." The newly launched Bachelor of Science in Artificial Intelligence programme offers two streams, AI for Business and AI for Engineering, combining technical rigor with leadership, hands-on entrepreneurship, and in-situ industry experience. The first class consists of 115 undergraduate students from more than 25 countries, over 25 per cent of which are UAE Nationals. Professor Baldwin said: "The jobs of tomorrow are being shaped by AI today and we must ensure that future generations are equipped with the tools and skills to navigate that shift. Our extraordinarily talented students don't just learn about AI, but learn with it, through it, and for it. This is an extraordinary value proposition across all our programmes, but especially for our undergraduate students, who will be studying towards a bachelor's degree in AI that I believe sets a new global benchmark in terms of technical depth, real-world relevance, and the high-end AI job-readiness of the students." The key highlights for the Fall 2025 intake includes MBZUAI's total student body totaling more than 700, representing over 47 nationalities. Nationalities represented in the undergraduate programmes are Bulgaria, China, Egypt, Georgia, Greece, India, Indonesia, Kazakhstan, the UAE and the UK. Postgraduate programmes bring together students from Canada, China, Egypt, France, India, Italy, Kazakhstan, Serbia, UAE, UK, USA and Vietnam. MBZUAI continues to attract exceptional students, with 151 of the incoming graduate students (27.5 per cent) holding degrees from the world's top 100 computer science universities (CSRankings), including Cornell University, Tsinghua University, the University of Edinburgh, and the University of California, San Diego. In welcoming the new students, MBZUAI has begun its immersive Orientation Week, introducing new students to the university's culture of academic excellence, AI-driven innovation, and community engagement. The programme combines academic sessions, mentorship activities, and cultural programming celebrating UAE heritage and life in Abu Dhabi. Highlights include the Orientation Mini Fair, where internal and external partners showcase resources for academic success, career development, and student life. Orientation Week is designed to foster a strong sense of belonging and connection, laying the foundation for academic success and life-changing university experiences. For more information, visit Media Contact:Noorul Tharola View original content: SOURCE Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) Sign in to access your portfolio

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