Latest news with #ChrisSenyek
CNBC
04-08-2025
- Business
- CNBC
High quality, low volatility stocks to consider if market turmoil upends the next two months
Investors may want to consider hedging their portfolios with higher quality, lower volatility stocks as the market enters the fall stretch. While stocks roared to new all-time highs for a full week last month, a weaker-than-expected July jobs report and downward revisions to May and June have dampened sentiment since then. Maybe more worrying is that the stock market is entering a seasonal dead zone that could temper any near-term rallies. Data from Wolfe Research showed that since 1990, the S & P 500's monthly total return for August and September has averaged a decline of 0.3% and 0.7%, respectively. "As markets continue to hit new all-time highs, we expect to see a consolidation post earnings season as stocks enter into a historically weaker period," wrote Chris Senyek, chief investment strategist at Wolfe, in a recent note, before Friday's job figures. "Our sense remains that the biggest risk to stocks in the back half of the year is stickier inflation keeping rates much higher than the futures market currently expects!" With this in mind, CNBC Pro screened FactSet data to find high quality stocks with low volatility that could be good hedges against if the market turns turbulent. To be included in the table below, stocks had to meet the following criteria: A market beta below 1 A Standard & Poor's quality ranking of B+ or higher Expected to grow earnings this year Already in the green for 2025 Berkshire Hathaway's Class B shares turned up on the screen. The stock is up 4% this year but was last trading 3% lower on Monday after Warren Buffett's conglomerate reported its operating earnings declined in the second quarter. Last quarter, Berkshire's operating earnings — including those from its insurance and railroad businesses — slipped 4% year-over-year , to $11.16 billion. A drop in insurance underwriting was the culprit for the decline. But with a market beta of 0.62 and prospective 2025 earnings growth of 1.3%, Berkshire could still be a good hedge for investors. Standard & Poor's rates the stock a B+. Transportation stock C.H. Robinson also made the screen, with a market beta of 0.88 and expected 2025 earnings growth of 4.5%. Standard & Poor's gives the stock an A rating. Last week, Baird upgraded the third-party logistics provider to an outperform rating from neutral after C.H. Robinson posted second-quarter adjusted earnings of $1.29 per share, beating the FactSet consensus estimate from analysts of $1.16 per share. "By all accounts, management's efforts to reduce costs and increase operating efficiencies through automation appear to be progressing rapidly, placing it in a unique position to accelerate market share gains and grow earnings," Baird analyst Daniel Moore wrote. Moore's new 12-month price target of $135, up from $105, implies that shares of C.H. Robinson could rally 19% from their Friday close. The stock has already risen 12% this year. Pharmacy chain and health insurer CVS Health has surged 38% this year. The Rhode Island-based company has a market beta of 0.48, an A+ rating from Standard & Poor's and could boost its earnings 1.5% this year. Last Thursday, CVS reported second-quarter adjusted earnings and revenue that beat analyst expectations. Subsequently, Bank of America raised its price objective to $89 from $85. Bank of America's updated target is approximately 42% higher than where shares of CVS currently trade. "As CVS' peers deal with headwinds from higher than expected utilization in Medicare Advantage and structural shifts in the Medicaid market, CVS is outperforming the group, largely due to steps the company took last year to cut benefits and adjust pricing. Separately, CVS is capturing unique tailwinds in the retail pharmacy market, driven by industry consolidation and CVS' position as an integrated [pharmacy benefit manager], mail/specialty pharmacy, and retail pharmacy," the analyst wrote.
CNBC
30-07-2025
- Business
- CNBC
The stock market is entering a seasonal dead zone
The market is soon entering a period when there historically have been no moves to the upside on average. Data from Wolfe Research this week finds that the S & P 500's monthly total return for August and September since 1990 has averaged a decline of 0.3% and 0.7%, respectively. That's in stark contrast to July and the succeeding months October, November and December, all of which have seen an average gain of at least more than 1%. Stocks have been roaring higher, bolstered by strong quarterly results from companies like Alphabet . The broad market index notched its fifth consecutive closing record on Friday and finished above 6,300 for the first time last Monday. The S & P 500 is currently on pace for a nearly 3% jump month to date, almost double the historical average return of 1.5% for July. Year to date, the index has risen more than 8%. "As markets continue to hit new all-time highs, we expect to see a consolidation post earnings season as stocks enter into a historically weaker period," Chris Senyek, chief investment strategist at Wolfe, wrote in a note dated Tuesday. .SPX mountain 2025-07-01 S & P 500, month-to-date A more hawkish signal from the Federal Reserve at the end of its two-day policy meeting Wednesday may increase this consolidation, Senyek said. Fed funds futures traders largely expect the central bank to keep its benchmark overnight borrowing rate steady in a range of 4.25% to 4.5%, per CME's FedWatch tool . "With the growth outlook for the U.S. remaining solid and tariff policy working its way through to consumer prices, we expect the FOMC to hold rates steady at this week's meeting," he wrote. "Our sense remains that the biggest risk to stocks in the back half of the year is stickier inflation keeping rates much higher than the futures market currently expects!" Alongside the Fed, the strategist believes a weaker-than-expected nonfarm payrolls reading for July on Friday, signs of sticky inflation in the wake of Thursday's personal consumption expenditures price index report and disappointing earnings reports and spending expectations for artificial intelligence-related stocks could serve as catalysts. Semiconductor company Qualcomm and "Magnificent Seven" companies Meta Platforms and Microsoft are all set to report Wednesday after the bell. Others such as Amazon and Apple are slated for Thursday.
CNBC
18-07-2025
- Business
- CNBC
Wolfe Research's Chris Senyek: We're encouraged by earnings season so far
Chris Senyek, Wolfe Research chief investment strategist, joins CNBC's 'Squawk on the Street' to discuss market outlooks, expectations for the dollar, and more.
Yahoo
19-06-2025
- Business
- Yahoo
JPMorgan Emerges Strong Amid Market Swings, Says Wolfe Research
JPMorgan Chase & Co. (NYSE:JPM) is one of Best Dividend Stocks to Buy for Dependable Growth. According to Wolfe Research, investors should consider JPM amid volatility. The stock has surged by over 12% since the start of 2025, outperforming the broader market by a wide margin. A group of business people discussing plans around a boardroom table adorned with a financial services company logo. With markets remaining unsettled due to evolving trade policies and geopolitical tensions, Wolfe Research is focusing on companies with a long-standing habit of buying back their own shares as a way to weather the volatility, and JPMorgan Chase & Co. (NYSE:JPM) made the cut. Wolfe's 'consistent buyback' list highlights firms that have reduced their share count for at least 10 consecutive years. According to Chief Investment Strategist Chris Senyek, this group of stocks tends to perform well during defensive market phases and around periods of economic downturn. According to the firm, JPMorgan Chase & Co. (NYSE:JPM) kicked off 2025 by increasing its share repurchases, despite CEO Jamie Dimon expressing caution at the bank's 2024 investor day, when he felt the stock was somewhat overvalued. However, with JPM sitting on a growing cash reserve, the buybacks moved forward. Wolfe's data indicates the bank's buyback-to-market-cap ratio stands at 4%. So far in 2025, JPMorgan stock has seen steady performance, and about 56% of analysts tracked by FactSet have rated it a 'Buy,' with the average price target suggesting a roughly 3% potential upside. JPM is also a solid dividend payer, currently offering a quarterly dividend of $1.40 per share for a dividend yield of 2.08%, as of June 17. JPMorgan Chase & Co. (NYSE:JPM) is a leading provider of investment banking, commercial banking, asset management, and financial transaction services. The firm serves millions of customers across the U.S., along with major corporate, institutional, and government clients around the world. While we acknowledge the potential of JPM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. 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
CNBC
15-06-2025
- Business
- CNBC
These companies have a track record of stock buybacks and are winners amid volatility, says Wolfe Research
As markets remain jittery amid still-shifting trade policy and geopolitical concerns, Wolfe Research is eyeing companies that steadily repurchase their own stock as a way to ride out the volatility. Wolfe's consistent buyback basket screens for companies that have such a track record of stock repurchases that their share counts have fallen for at least 10 straight years. Chief investment strategist Chris Senyek said this basket of stocks typically performs well in defensive cycles, as well as heading into and out of recessions. Stocks took a leg lower while oil prices spiked on Friday after Iran retaliated against Israeli airstrikes . The geopolitical tensions scuttled the possibility of stocks logging three winning weeks in a row. Investors have been hopeful that the U.S. will reach trade deals with China and other trading partners. Here's a look at some of the names that came up on Wolfe's screen. Apple made the list. Shares of the iPhone maker have pulled back about 22% in 2025. While investors wait for Apple to roll out its artificial intelligence suite, including a revamped Siri, the company has kept up with its share repurchases. On the heels of a better-than-expected second quarter , Apple announced a $100 billion buyback program. AAPL YTD mountain Apple stock in 2025. Over the past 12 months, the ratio of Apple stock buybacks to average market cap was 3.3%, per Wolfe data. About 62% of analysts polled by FactSet maintain a buy rating on Apple stock, with their consensus price target implying roughly 16% upside. JPMorgan Chase also made the cut. The stock has gained about 11% so far in 2025. The banking giant started off the year by stepping up its buybacks , even though CEO Jamie Dimon had pushed back on the idea at the bank's investor day in 2024. The executive feared JPMorgan's stock was a bit pricey at the time, but the bank's cash pile was ballooning so it continued to make repurchases. Wolfe's data shows JPMorgan's buyback to market cap ratio is 4%. JPM YTD mountain JPMorgan Chase stock in 2025. Roughly 56% of analysts surveyed by FactSet have a buy rating on JPMorgan stock, and the average analyst consensus price target implies about 3% upside.
