logo
Tariffs are a negotiation tactic and policy looks positive for equities: Jefferies' David Zervos

Tariffs are a negotiation tactic and policy looks positive for equities: Jefferies' David Zervos

CNBC03-06-2025

David Zervos, Jefferies chief market strategist, joins 'Squawk on the Street' to discuss the talks with China and the U.S., if there's a danger in slow negotiations and much more.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

5 Must-Read Analyst Questions From Celsius's Q1 Earnings Call
5 Must-Read Analyst Questions From Celsius's Q1 Earnings Call

Yahoo

time7 hours ago

  • Yahoo

5 Must-Read Analyst Questions From Celsius's Q1 Earnings Call

Celsius' first quarter results drew a positive market reaction despite falling short of Wall Street's top- and bottom-line expectations. Management attributed the revenue decline primarily to slower product velocity, shifts in the timing and structure of distributor incentives, and increased retail promotional activity. CEO John Fieldly highlighted that the company was facing difficult comparisons to the prior year, which included the nationwide launch of CELSIUS ESSENTIALS and elevated retail promotions. Fieldly noted, 'We saw business fundamentals strengthen through the quarter and are encouraged by the positive momentum heading into Q2.' Is now the time to buy CELH? Find out in our full research report (it's free). Revenue: $329.3 million vs analyst estimates of $342.3 million (7.4% year-on-year decline, 3.8% miss) Adjusted EPS: $0.18 vs analyst expectations of $0.19 (5.9% miss) Adjusted EBITDA: $69.69 million vs analyst estimates of $72.12 million (21.2% margin, 3.4% miss) Operating Margin: 15.8%, down from 23.4% in the same quarter last year Market Capitalization: $11.38 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kaumil Gajrawala (Jefferies) asked about the continued strength of the energy drink category and drivers behind velocity. CEO John Fieldly described health and wellness trends and category innovation as key factors. Peter Grom (UBS) inquired about the drivers of first quarter sales decline in North America. Fieldly and CFO Jarrod Langhans explained that slower velocity, distributor incentives, and promotional timing were the primary contributors. Kevin Grundy (BNP Paribas) questioned Celsius' pricing strategy amid mixed industry dynamics. Fieldly said the company took price in Q4 but remains cautious about further increases due to shifting consumer purchase behaviors. Jon Andersen (William Blair) asked for details on shelf space expansion and the impact for both Celsius and Alani Nu. Fieldly cited gains in secondary placements and excitement about Alani Nu's distribution momentum, particularly among female consumers. Andrea Teixeira (JPMorgan) sought clarification on Costco performance and the impact of allowances and destocking. Langhans stated that scanner data for Costco was up, with timing and promotional allowances impacting reported revenue, but no major destocking was observed. In the coming quarters, our analysts will closely track (1) the integration progress and performance of Alani Nu within Celsius' broader portfolio, (2) the effectiveness of new marketing campaigns and their impact on product velocity, and (3) ongoing shelf space expansion efforts, including secondary placements and foodservice channel growth. The trajectory of gross margins and adaptability to potential cost pressures will also be key indicators of future execution. Celsius currently trades at $44.44, up from $33.95 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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

Trip.com (TCOM) Drops as E-Commerce Giant Emerges as Potential Competitor
Trip.com (TCOM) Drops as E-Commerce Giant Emerges as Potential Competitor

Yahoo

time14 hours ago

  • Yahoo

Trip.com (TCOM) Drops as E-Commerce Giant Emerges as Potential Competitor

We recently published a list of 10 Stocks Take A Shocking Nosedive. Group Limited (NASDAQ:TCOM) is one of the worst-performing stocks on Thursday. Group saw its share prices drop by 6.81 percent on Wednesday to finish at $56.54 apiece following news that one of China's e-commerce giants is making foray into the travel sector with a hotel membership program. In an open letter to hoteliers, said that it would provide supply-chain services without any commission for three years in a bid to lower operational costs, enhance guest experience, and support consumer traffic to hoteliers. The announcement weighed in on investor sentiment for Group Limited (NASDAQ:TCOM), one of the leading multinational travel agencies globally. Group Limited's (NASDAQ:TCOM) drop followed the company's 'buy' recommendation from investment firm Jefferies, with a price target of $80. A customer in a travel agents office, highlighting the convenience of the companies corporate travel solutions. According to Jefferies, its analysis reflected its share repurchase agreement with MakeMyTrip, under which, Group Limited (NASDAQ:TCOM) will sell a portion of its Class B ordinary shares back to MakeMyTrip for cancellation. While we acknowledge the potential of TCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.

Earnings Preview: Jefferies (JEF) Q2 Earnings Expected to Decline
Earnings Preview: Jefferies (JEF) Q2 Earnings Expected to Decline

Yahoo

time2 days ago

  • Yahoo

Earnings Preview: Jefferies (JEF) Q2 Earnings Expected to Decline

Wall Street expects a year-over-year decline in earnings on lower revenues when Jefferies (JEF) reports results for the quarter ended May 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on June 25, 2025, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This investment banking and capital markets company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -35.8%. Revenues are expected to be $1.56 billion, down 6.1% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Jefferies, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +8.24%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Jefferies will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Jefferies would post earnings of $0.88 per share when it actually produced earnings of $0.60, delivering a surprise of -31.82%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Jefferies doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store