NATO commits to doubling military budgets: Live Updates
The US-led blocs member states agreed to significantly increase military expenditures
The leaders of NATO member states agreed to a historic increase in defense spending at a two-day summit in the Hague, making a commitment to raise expenditures from 2% to 5% of GDP by 2035.
US President Donald Trump touted the meeting as a "great victory," praising allies for stepping up spending, which he has heavily pushed since his first term in the White House.
At the same time, he defended his decision to strike Iran's nuclear facilities and compared the operation to the atomic bombings of Hiroshima and Nagasaki, claiming it similarly "ended a war" by forcing a ceasefire between Israel and Iran.
Trump also revealed plans for direct US-Iran talks next week, though he downplayed the need for a formal nuclear deal, asserting that Iran's program had already been "destroyed," despite reports suggesting only limited damage.
In a shift from previous NATO summits, the final communique avoided direct mention of Ukraine's conflict with Russia, focusing instead on "long-term threats." The document makes only one mention of Ukraine, stating that NATO members had reaffirmed their commitment to provide support to Kiev and continue direct contributions to the country's military industry.
Ukrainian Leader Vladimir Zelensky attended a pre-summit dinner but was excluded from the main meeting, though he later held talks with Trump. A ceasefire was not on the agenda during a meeting with Zelensky, Trump told journalists.
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Globe and Mail
21 minutes ago
- Globe and Mail
5 High-ROE Stocks to Buy as Markets Bask in Middle East Truce
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However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. VICI Properties Inc. VICI, TE Connectivity plc TEL, Arista Networks Inc. ANET, Banco Bilbao Vizcaya Argentaria, S.A. BBVA and AppLovin Corporation APP are some of the stocks with high ROE to profit from. ROE: A Key Metric ROE = Net Income/Shareholders' Equity ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns. Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. 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The higher the ROA, the better it is for the company. 5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength. Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment. Here are five of the 11 stocks that qualified the screening: VICI Properties: New York-based VICI Properties is an experiential real estate investment trust (REIT) that owns and acquires gaming, hospitality and entertainment destinations. The geographically diverse portfolio comprises approximately 127 million square feet of space, encompassing around 60,300 hotel rooms and more than 500 restaurants, bars, nightclubs and sportsbooks. The company has a long-term earnings growth expectation of 4.6% and delivered a trailing four-quarter earnings surprise of 0.9%, on average. VICI Properties carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements. TE Connectivity carries a Zacks Rank #2. The company has a long-term earnings growth expectation of 9.3% and delivered a trailing four-quarter earnings surprise of 3.3%, on average. It has a VGM Score of B. Arista: Santa Clara, CA-based Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. 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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks' portfolios and strategies are available at: Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> 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 TE Connectivity Ltd. (TEL): Free Stock Analysis Report Banco Bilbao Viscaya Argentaria S.A. (BBVA): Free Stock Analysis Report AppLovin Corporation (APP): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report VICI Properties Inc. (VICI): Free Stock Analysis Report
Globe and Mail
22 minutes ago
- Globe and Mail
Goldman Stock Surges Over 57% in a Year: Is There Still Room to Run?
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Given mounting inflationary pressure, a slowdown/recession in the U.S. economy is expected. Amid such a backdrop, companies are rethinking their M&A plans despite stabilizing rates and having significant investible capital. In the first quarter of 2025, Goldman reported an 8% year-over-year decline in IB revenues, underwhelming against JPMorgan's 12% growth and Morgan Stanley's 7.7% increase in IB fees over the same period. On the surface, this may suggest Goldman is losing ground to its peers. However, the company continues to maintain a leading market share in global M&A advisory, underscoring deep institutional relationships and trusted deal execution capabilities. GS has reported an increased IB backlog, indicating a strong pipeline of potential deals that could convert into revenues as soon as macro conditions improve. This positions Goldman to capitalize well once M&A momentum improves, potentially giving it an edge over peers. GS & Easing Capital Requirement Proposal This week, the Federal Reserve proposed a 1.4% reduction in capital requirements for Global Systemically Important Banks (GSIBs), which could translate to approximately $13 billion in capital relief for major players like Goldman, JPMorgan, and Morgan Stanley. This proposal, if finalized, would increase operational flexibility for GS. With lower capital buffers, Goldman would be able to reallocate resources more efficiently, potentially scaling operations in key areas such as lending, trading and treasury activities. Further, freeing up billions in capital could boost return on equity (ROE) and unlock new growth avenues. The company may opt to deploy excess capital into higher-yielding assets, invest in business expansion, or return it to shareholders via dividends and share buybacks. Goldman's Focus on Core Business GS is making efforts to exit non-core consumer banking business and sharpen its focus on areas wherein it holds a competitive edge — IB, trading, and asset and wealth management (AWM). Last November, per the Wall Street Journal report, Goldman received a proposal from Apple to end their consumer banking partnership. Per a January 2025 Reuters report, the collaboration may end before the contract runs out in 2030. The move is expected to affect two consumer banking products that Apple currently offers — the Apple Card and the Apple Savings account. In 2024, Goldman finalized a deal to transfer its GM credit card business to Barclays and completed the sale of GreenSky, its home-improvement lending platform. In 2023, the company divested its Personal Financial Management unit. These moves demonstrate a well-thought-out exit from consumer finance, allowing Goldman to reallocate capital and attention toward higher-margin, more scalable businesses. This strategic shift is benefiting the AWM division, which now plays a crucial role in the company's long-term growth. AWM is expanding into fee-based revenue streams to help offset the volatility of the IB business. As of March 31, 2025, AWM managed more than $3.2 trillion in assets under supervision and is experiencing strong momentum in alternative investments and customized wealth solutions for ultra-high-net-worth individuals. In the first quarter of 2025, Goldman reported significant net inflows into its wealth management platform, providing solid evidence of the segment's increasing market traction and client confidence. Goldman's Strong Liquidity Profile GS maintains a fortress balance sheet, with Tier 1 capital ratios well above regulatory requirements. This financial strength allows it to return capital to shareholders aggressively through buybacks and a healthy dividend yield (1.79%). As of March 31, 2025, cash and cash equivalents were $167 billion, and near-term borrowings were $71 billion. Given its strong liquidity, the company rewards its shareholders handsomely. In July 2024, it increased its common stock dividend 9.1% to $3 per share. In the past five years, the company hiked dividends four times, with an annualized growth rate of 23.6%. Currently, its payout ratio sits at 28% of earnings. Meanwhile, GS' peer JPMorgan raised its dividend five times over the past five years, with a payout ratio of 27%. Morgan Stanley raised its dividend four times over the past five years and has a payout ratio of 43%. Additionally, Goldman has a share repurchase plan in place. In the first quarter of 2025, the board of directors approved a share repurchase program authorizing additional repurchases of up to $40 billion of common stock. Earlier, in February 2023, it announced a share repurchase program, authorizing repurchases of up to $30 billion of common stock with no expiration date. At the end of the first quarter, GS had $43.6 billion worth of shares available under authorization. Goldman's Estimates and Valuation Analysis The Zacks Consensus Estimate for GS' 2025 and 2026 revenues indicates a year-over-year rise of 3.5% and 5.9%, respectively. Likewise, the consensus estimate for 2025 and 2026 earnings indicates an 8.8% and 14.1% rise, respectively. Sales Estimates Image Source: Zacks Investment Research Earnings Estimates Image Source: Zacks Investment Research In terms of valuation, GS stock also looks expensive. The stock is trading at forward price/earnings (P/E) of 14.60X compared with the industry average of 14.55X. Goldman is also trading at a discount compared with its peers, JPMorgan and Morgan Stanley. Currently, JPM and MS have P/E multiples of 15.26X and 15.67X, respectively. Price-to-Earnings F12M GS Stock: A Solid Long-Term Play, Near-Term Caution Advised Goldman has delivered outstanding returns over the past year, driven by strategic initiatives, strong capital returns and a growing wealth management business. Though its IB business performance lagged peers in the first quarter, its leadership in M&A advisory and robust deal pipeline signal potential upside once market conditions stabilize. The Fed's proposed capital requirement changes, combined with Goldman's exit from lower-margin consumer banking, provide additional flexibility to boost profitability and scale core operations. However, with the stock trading at a premium compared with the industry and macro uncertainties persisting, the near-term risk/reward may be balanced. As such, Goldman stock warrants a cautious approach for now. However, it remains a strong long-term holding for investors looking for exposure to a diversified, well-capitalized financial giant poised to benefit from a recovery in deal-making and capital markets activity. At present, Goldman carries a Zacks Rank #3 (Hold) You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report
Winnipeg Free Press
27 minutes ago
- Winnipeg Free Press
Lawyers for Kilmar Abrego Garcia ask judge to keep him in jail over deportation concerns
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