Why the S&P 500 Is Cruising Through Policy Upheaval
If you are wondering why the S&P 500 Index has held up so well in the past two months, look no further than the technology and communications sectors, which collectively account for nearly half of the index by weighting. For all the wild and headline-grabbing swings in trade policy since early April, analysts have continued to project more than 14% earnings growth in those combined sectors this year — an outlook that really hasn't budged. Wall Street isn't ignoring the potential risks from tariffs and a consumer slowdown, analysts just think that America's innovation superstars will partially offset any damage.
And reasonably so. Artificial intelligence posterchild Nvidia Corp. said Wednesday that it had $44.1 billion in revenue in the latest quarter, up an extraordinary 69% from a year earlier. Microsoft Corp., the index's biggest company by weighting, posted a 20% increase in cloud revenue last quarter, showing why its software-heavy model leaves it relatively insulated from tariffs. And Netflix Inc., which successfully hiked subscription prices recently, said revenue jumped 12.5%, reaffirming the resilience of its business model.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
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. Read: Tomi Kilgore's detailed guide to the information available on the MarketWatch quote page 'You never know what might happen': How do I make sure my son-in-law doesn't get his hands on my daughter's inheritance? Strategists forecast a sizzling summer for small-cap stocks 'I am getting very frustrated': My mother's adviser has not returned my calls. He manages $1 million. Is this normal? My life partner is 18 years my senior. He wants to leave his $4.5 million fortune to me — not his two kids. Do we tell them? 'I'm afraid to ask her': My stepmother won't show me my father's will. What now?
Car and Driver
28 minutes ago
- Car and Driver
2026 Toyota Sienna Hybrid Review, Pricing, and Specs
Overview With lounge-like seating for up to eight, an available center-console fridge, and a built-in vacuum on upper trims, the Toyota Sienna minivan aims to be almost like a mobile home. While homes don't typically receive fuel economy estimates, the EPA rates the Sienna as the efficiency leader in its class. Its fuel-sipping hybrid powertrain comes with either front- or all-wheel drive, and the engine noise while accelerating is really the only disturbance to an otherwise tranquil cabin experience. With its superior fuel economy and flawless execution of all the minivan fundamentals, the Sienna is among our favorite vans, beating out stiff competition like the Honda Odyssey and Kia Carnival and trailing only the quirky and electric Volkswagen What's New for 2026? After a light interior refresh brought an updated infotainment suite, an Advanced Rear Seat Reminder feature, and some upgraded wireless charging tech last year, the Sienna carries over into 2026 unchanged. Pricing and Which One to Buy The price of the 2026 Toyota Sienna is expected to start around $41,000 and go up to $58,000 depending on the trim and options. LE $41,000 (est) XLE $46,000 (est) XSE $49,000 (est) Limited $52,000 (est) Woodland Edition $52,000 (est) Platinum $58,000 (est) We'd go for the XSE model, which comes with sport seats, a 12.3-inch infotainment touchscreen, second-row captain's chairs, and Toyota's "one-motion-stow" third row. Other tweaks include 20-inch wheels, more aggressive front and rear bumpers, and tauter suspension. The XSE, like all Sienna trims, comes standard with front-wheel drive, but adding all-wheel drive costs less than $1000 and seems like a worthwhile upgrade to us. Engine, Transmission, and Performance The Sienna has been offered exclusively as a hybrid since its 2021 redesign. Its powertrain consists of a 2.5-liter four-cylinder engine and a pair of electric motors that make a combined 245 horsepower. All-wheel drive is available across the lineup and features a third electric motor that drives the rear wheels but doesn't increase total output. The Sienna delivers an uninspiring driving experience but, importantly, it aces ride comfort without going too far toward the soft end of the spectrum. 0–60-MPH Times An all-wheel-drive Sienna Limited we tested required 7.5 seconds to reach 60 mph. For context, that's quicker than the Pacifica Hybrid, the same as the Kia Carnival's time, and behind the hot rod of the segment, the Honda Odyssey. View Exterior Photos Toyota Fuel Economy and Real-World MPG The EPA hasn't released fuel economy information for the 2026 Sienna yet, but without any significant changes, the newest model should deliver similar fuel economy to last year's model. The front-drive 2025 Sienna stood as the segment's thriftiest people hauler, with EPA fuel-economy estimates of 36 mpg city and 36 mpg highway. Adding all-wheel drive reduced the city metric by 1 mpg. Over 40,000 miles, our all-wheel-drive Platinum long-term test vehicle averaged 29 mpg. In our 75-mile highway fuel-economy test, an all-wheel-drive Sienna returned an impressive 33 mpg. For more information about the Sienna's fuel economy, visit the EPA's website. Interior, Comfort, and Cargo Toyota packed tons of storage into the Sienna's interior, the centerpiece of which is a large center console that stretches from the dashboard to the start of the second row, with a sizable open storage cubby underneath. There are also 18 cupholders scattered about the cabin. Frequent haulers of cargo may be disappointed to learn that the Sienna's second-row seats are not removable like those in the Odyssey and the Pacifica Hybrid. As a consolation prize of sorts, the second-row captain's chairs can slide a total of 25 inches fore and aft, providing either maximum legroom for either of the rear rows or more cargo space behind the second row. The cargo area behind the third row measures 34 cubic feet compared to the Kia Carnival's 40 cubes. Limited and Platinum models feature reclining second-row seats with pop-up ottomans, and an onboard vacuum cleaner and fridge are available on the Limited and standard on the Platinum trim. View Interior Photos Toyota Infotainment and Connectivity The Sienna LE's infotainment touchscreen measures 8.0 inches, while all other models get a 12.3-inch display. Apple CarPlay, Android Auto, and Amazon Alexa connectivity features are all standard, as is an onboard Wi-Fi hotspot and SiriusXM satellite radio. A smattering of USB-C ports dot the van's cabin, and there's a USB-A port in the console for older devices. The base stereo is a 6-speaker setup, and XLE models get eight speakers. A 12-speaker JBL stereo system is optional on the XLE and XSE and standard on the Limited and Platinum. In-dash navigation is standard starting with the XSE trim; a rear-seat entertainment system with an 11.6-inch display is optional on all but the base LE model. A 7.0-inch instrument cluster display is nestled between analog gauges on LE and XLE models, while upper trims get a fully digital gauge cluster. A head-up display is available and is standard on Platinum. Safety and Driver-Assistance Features Ten airbags, blind-spot monitoring, rear-cross-traffic alert, and Toyota's Safety Sense 2.0 bundle of driver-assistance features are standard on the Sienna, while convenience items such as parking sensors and a 360-degree exterior camera system are optional. For more information about the Sienna's crash-test results, visit the National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (IIHS) websites. Key safety features include: Standard automated emergency braking with pedestrian detection Standard lane-departure warning with lane-keeping assist Standard adaptive cruise control Warranty and Maintenance Coverage The Kia Carnival offers longer powertrain and bumper-to-bumper warranty coverage than the Sienna. But Toyota adds some value to its fairly basic warranty package with a two-year complimentary maintenance plan. Limited warranty covers three years or 36,000 miles Powertrain warranty covers five years or 60,000 miles Hybrid-component warranty covers ten years or 150,000 miles Complimentary maintenance is covered for two years or 25,000 miles Specifications Specifications 2023 Toyota Sienna Hybrid Limited Vehicle Type: front-engine, all-wheel-drive, 7-passenger, 4-door van PRICE Base/As Tested: $51,730/$53,855 POWERTRAIN DOHC 16-valve Atkinson-cycle 2.5-liter inline-4, 189 hp, 176 lb-ft + 3 permanent-magnet synchronous AC motors, front: 180 hp, 199 lb-ft; rear: 54 hp, 89 lb-ft (combined output: 245 hp); 1.5-kWh (est.) nickel-metal hydride battery pack TRANSMISSIONS, F/R CVT/direct drive CHASSIS Suspension, F/R: struts/multilink Brakes, F/R: 12.9-in vented disc/12.5-in vented disc Tires: Goodyear Assurance Finesse 235/55R-19 101H M+S DIMENSIONS Wheelbase: 120.5 in Length: 203.7 in Width: 78.5 in Height: 69.7 in Passenger Volume, F/M/R: 58/58/47 ft3 Cargo Volume, Behind F/M/R: –/75/34 ft3 Curb Weight: 4811 lb C/D TEST RESULTS 60 mph: 7.5 sec 1/4-Mile: 15.8 sec @ 88 mph 100 mph: 22.1 sec Results above omit 1-ft rollout of 0.3 sec. Rolling Start, 5–60 mph: 8.5 sec Top Gear, 30–50 mph: 3.9 sec Top Gear, 50–70 mph: 5.8 sec Top Speed (gov ltd): 117 mph Braking, 70–0 mph: 190 ft Roadholding, 300-ft Skidpad: 0.78 g C/D FUEL ECONOMY Observed: 27 mpg 75-mph Highway Driving: 33 mpg 75-mph Highway Range: 590 mi EPA FUEL ECONOMY Combined/City/Highway: 35/35/36 mpg C/D TESTING EXPLAINED More Features and Specs
CNN
29 minutes ago
- CNN
Warner Bros. Discovery shareholders reject CEO David Zaslav's pay package
Warner Bros. Discovery shareholders voted on Tuesday to reject the pay packages for several of the company's executives, including CEO David Zaslav's compensation package of more than $50 million. Nearly 60% of the symbolic vote was against the 2024 executive payouts at Warner Bros. Discovery's annual meeting, according to a regulatory filing. The vote is non-binding. Last year, shareholders narrowly approved executive pay, with 53% voting in favor. Warner Bros. Discovery is the parent company of CNN. Zaslav, who has been CEO of Warner Bros. Discovery since 2022, when the company was created by the merger of WarnerMedia and Discovery, Inc., was paid a total of $51.9 million last year, including equity awards and other compensation. Warner Bros. Discovery's stock (WBD) declined 7% in 2024, while media competitor Netflix (NFLX) saw its stock gain more than 80% in 2024 and Disney's stock (DIS) rose 24%. Netflix's co-CEOs, Ted Sarandos and Greg Peters, were paid $61.9 million and $60.3 million last year, respectively, while Disney's Bob Iger was paid $41.1 million. The broader S&P 500 gained over 23% last year. Warner Bros. Discovery did not respond to a request for comment.
