Strong start for earnings season creates support for Wall Street's record highs
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CNBC
9 minutes ago
- CNBC
Morgan Stanley's highest conviction picks into earnings
Morgan Stanley expects a handful of stocks that are reporting quarterly results soon to see big gains. Second-quarter earnings season has so far impressed Wall Street, even as investors keep an eye on commentary about tariff-related uncertainty and artificial intelligence spending and demand. Of the 88 S & P 500 companies that have reported results, more than 82% have beaten analysts' estimates, according to FactSet data. Analyst Michelle Weaver wrote in a Tuesday note to clients that Morgan Stanley expects a "normal" rate of companies outpacing earnings estimates this season. "Given the downward EPS revisions we saw in April / May and the subsequent recovery in Earnings Revisions Breadth from –25% to ~1% , we expect the index to deliver 2Q beat rates roughly in line with historical averages (4-5%)," Weaver wrote. She added, earnings should be "top-heavy," led by strong year-over-year "Magnificent Seven" net income growth. Below are five of Morgan Stanley's 13 highest conviction plays. These are stocks in which near-term catalysts should drive "a meaningful move" upward, according to the firm. Morgan Stanley views Nvidia as an earnings winner. The firm rates the chipmaking giant overweight with a $170 price target, which implies 1.8% potential upside. "Expect the pace of revenue and EPS to accelerate on the print, as demand remains very strong and NVDA continues to deliver upside on the supply side having resolved issues with rack scale products," the firm said about the stock. Analysts are bullish that Nvidia's revenue growth in the second half of 2025 and 2026 will improve after the company resumes shipments of previously banned H20 chips to China. CVS Health is another name Morgan Stanley likes, with an overweight rating and a price target that implies the stock could gain about 31%. Analyst Erin Wright called CVS a "compelling turnaround story in Managed Care," given its focus on the Medicare Advantage business, which she said has earnings power. "CVS should be a cleaner print in what has been a volatile period for Managed Care, with another 'beat and maintain' or ~in line quarter likely, in our view, offering welcomed relief," Wright said. CVS in the first quarter exceeded estimates and hiked its earnings guidance , but did not provide a revenue forecast given uncertainty with higher medical costs from more Medicare Advantage patients returning to hospitals. CVS 1Y mountain CVS Health performance over the past year. AI data center play Eaton has room for upside, according to analyst Chris Snyder. He views the stock as attractively positioned heading into earnings due to margins in its Electrical Americas business. "We have confidence in both ETNs pricing power & ability to drive volumes higher given company backlog and ongoing capacity adds," the analyst said.
Yahoo
11 minutes ago
- Yahoo
Fiserv (FI) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
Fiserv (FI) reported $5.2 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 8.4%. EPS of $2.47 for the same period compares to $2.13 a year ago. The reported revenue represents a surprise of -0.03% over the Zacks Consensus Estimate of $5.2 billion. With the consensus EPS estimate being $2.41, the EPS surprise was +2.49%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Fiserv performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Adjusted Revenue- Merchant Solutions: $2.64 billion compared to the $2.69 billion average estimate based on nine analysts. Adjusted Revenue- Financial Solutions: $2.55 billion compared to the $2.52 billion average estimate based on nine analysts. Revenue- Product: $1.21 billion versus $1.06 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +25.3% change. Revenue- Corporate and Other: $320 million compared to the $336 million average estimate based on five analysts. Revenue- Processing and services: $4.3 billion compared to the $4.45 billion average estimate based on five analysts. The reported number represents a change of +4% year over year. Operating income- Corporate and Other: $-462 million compared to the $-512.86 million average estimate based on three analysts. Operating income- Financial Solutions: $1.24 billion versus $1.27 billion estimated by three analysts on average. Operating income- Merchant Solutions: $914 million versus the three-analyst average estimate of $991.11 million. View all Key Company Metrics for Fiserv here>>> Shares of Fiserv have returned -3.9% over the past month versus the Zacks S&P 500 composite's +5.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. 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 Fiserv, Inc. (FI) : 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
Time Business News
an hour ago
- Time Business News
Global Indices in Transition: IGW Management Reviews Market Movements
As we move through mid-2025, stock markets across the world are reacting to a landscape shaped by shifting monetary policies, geopolitical developments, and evolving investor sentiment. While some regions have shown resilience, others face mounting economic pressures that could impact performance in the months ahead. From advanced economies in the West to key Asian markets, the picture remains dynamic and often unpredictable. Analysts at IGW Management have been closely tracking the state of several leading indices, providing insight into what's driving movement across global equity benchmarks. Alt-text: global stock markets in 2025 Source: The U.S. stock market continues to hover near historic highs, buoyed by robust tech sector earnings and persistent enthusiasm around AI innovation. The S&P 500 is up around 4% YTD, but recent debates around tariff policy and fiscal tightening have introduced new layers of uncertainty. IGW Management analysts point out that while investor optimism remains strong, the market is becoming increasingly sensitive to domestic policy decisions and global trade shifts. This makes it more vulnerable to short-term swings, drawing attention to flexible approaches like index CFD trading. Germany's DAX is one of the major outperforming indices in 2025, even as the country grapples with subdued economic growth projections. Industrial production has faced pressure due to weakening demand, but export-driven sectors and EU-wide green investment programs have helped support market confidence. Alt-text: German DAX bull market Source: According to IGW Management, the interplay between a stable euro and ongoing fiscal support from Brussels has kept investors engaged. As with other European benchmarks, index CFDs are increasingly used by traders seeking agility amid regional macro shifts. The FTSE 100 reached record territory in June, reflecting strong dividends and growing expectations of a rate cut by the Bank of England. Yet, beneath the surface, uncertainties surrounding weak productivity data have led to cautious positioning. Experts note that the U.K. market's sensitivity to both political change and currency movement has made short-term strategies more prominent. In this context, index CFD trading provides one potential method to stay responsive to sudden moves without long-term commitments. Japan's equity markets continue their upward trajectory, powered by corporate governance reforms, a favorable export climate, and accommodative monetary policy. The Nikkei 225 has traded close to record highs in recent months, supported in part by the yen's weakness against major currencies. Analysts observe that Japan presents a unique case where domestic reform and international macro trends intersect. Index CFDs linked to Japanese indices have seen growing interest from traders monitoring these interlinked forces. Across all major markets, 2025 is proving to be a year of transition, marked not by clear trends but by fluctuating conditions and nuanced investor behavior. IGW Management suggests that tracking these shifts closely and understanding their drivers is essential for staying ahead in this environment. With equity benchmarks reacting quickly to policy, sentiment, and global developments, tools like index CFDs are increasingly part of the conversation for those seeking adaptability in the face of change. TIME BUSINESS NEWS
