Latest news with #ConsumerConfidence
Yahoo
6 hours ago
- Business
- Yahoo
‘It's Summertime': Goldman Sachs Says Market Looks Resilient — Suggests 2 Stocks to Buy
Summer may still be a few weeks away on the calendar, but the unofficial start to the season has already arrived, bringing with it a surge in consumer confidence. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The Consumer Confidence index showed a sharp spike in May, jumping more than 12 points to a reading of 98.0. That marks a strong turnaround from April, when the index fell to its lowest level in nearly 14 years. Confidence was up after April economic data showed slowing inflation along with improvements in the jobs market. That brings us to a recent note from Goldman Sachs, in which the market intelligence team gives an upbeat outlook on the current situation, pointing out that the US economy 'remains resilient.' Goldman's stock analysts are running with this thesis, and recommending two stocks to buy for the summertime. We've looked them up in the TipRanks database, and found that the Street's wisdom also gives both stocks a 'Buy' rating; let's take a closer look and find out why. Array Technologies (ARRY) We'll start with Array Technologies, a solar energy industry tech firm. Array's specialty is developing solar tracking technology, particularly at the utility scale. Solar tracking systems allow photovoltaic arrays to follow the sun's path across the sky, an important movement for maintaining maximum efficiency while generating energy. The various systems – which include both hardware and software – are key links in the solar energy chain, and make a vital contribution to keeping sustainable energy cost-effective. Array has 30 years of experience behind it, and today boasts offices and markets in the US, Brazil, the UK, Spain, South Africa, and Australia. The company's products include its flagship DuraTrack, which is designed for large, multi-row photovoltaic power arrays, as well as the STI H250 dual-row system for solar sites with fragmented installations, and the company's newest tracking solution, OmniTrack, which adapts the DuraTrack technology to unlevel terrain, giving utility-scale energy producers greater flexibility in choosing locations for new solar arrays. Array also offers products for effective sky tracking, to maximize efficiency, and hail protection, to guard against inclement or extreme weather conditions. Array announced last month the introduction of its Hail XP system, designed to provide industry-leading hail and wind event protection in conjunction with the DuraTrack platform. In the first quarter of this year, Array brought in revenues of $302.4 million, representing an impressive 97% year-over-year growth and beating the forecast by $38 million. At the bottom line, the company's non-GAAP EPS, at 13 cents, was 4 cents per share better than expected. Array finished the quarter with a sound workload – the total executed contracts and awarded orders came to $2 billion as of March 31. For Goldman analyst Brian Lee, the key point here is Array's sound business model and potential for continued success, even should input prices climb. Lee writes, 'We continue to believe that ARRY could see both upside to revenue, margins, and EPS this year as we see several tailwinds emerging through the remainder of the year. On the top line, increases in steel prices could drive incremental upside to the top line as these higher inputs costs are typically passed along 1 for 1 to customers which would result in flat margins but upside to gross profit dollars… We anticipate ARRY's new products, along with the 100% domestic content orders to all be accretive to margins and believe there could be additional upside to margins heading into the back half of the year.' Lee puts a Buy rating on ARRY shares, and his $11 price target implies a robust one-year upside potential of 67%. (To watch Lee's track record, click here) The 17 recent analyst reviews on this stock include 6 Buys and 11 Holds, for a Moderate Buy consensus rating. The stock is currently trading for $6.58, and its $7.63 average target price suggests that it will gain 16% on the one-year horizon. (See ARRY stock forecast) Sotera Health (SHC) Next on today's list of Goldman picks is Sotera Health, a company that works in the healthcare industry, providing mission-critical services such as end-to-end sterilization solutions and lab testing. Sotera operates three distinct business segments—Sterigenics, Nordion, and Nelson Labs—which provide direct services to more than 5,000 customers across 50 countries. Backing its services, Sotera operates 50 sterilization facilities and 12 laboratory and advisory locations, and can provide more than 900 advanced lab tests. The company employs approximately 3,000 people and boasts that its customers include 9 of the top 10 pharmaceutical firms. Sotera's services are used in several important fields, aside from the pharmaceutical industry. Medical device companies turn to Sotera for testing services, and the food industry uses the company's services in quality control to prevent food- or beverage-borne pathogens from reaching consumers. The company's most recent testing advance was announced by Nelson Labs, the Sotera business focused on microbiological and analytical chemistry testing. In March of this year, Nelson Labs announced product-sterility testing through rapid microbiological methods (RMMs), with the new tests performed at locations in the US and Europe. The new approach provides a versatile solution in the field of rapid sterility testing. When it comes to financial results, Sotera showed modest gains in the 1Q25 report, the last set of results to be released. The company's quarterly revenue of $255 million was up 2.8% year-over-year, while the 14-cent non-GAAP EPS was up by a penny. Goldman analyst Matthew Sykes sees this company in a sound position, explaining why the rewards outweigh the risks here, Sykes states, 'SHC represents a defensive growth option within our universe without a meaningful impact from tariffs and no Academic & Government exposure. Additionally, the inherent pricing power in their business could see an acceleration given the expected inflationary environment due to the macro backdrop potentially adding to the top line growth rate as the year progresses. We believe SHC is an attractive way to gain exposure to the continued growth in the Medtech product innovation cycle. While potential litigation remains a risk, we believe the uncertainty has reduced following the recent IL settlement (Sterigenics entered into a $30.9 million settlement to resolve 97 additional ethylene oxide claims related to its former facility in Willowbrook, Illinois), and we expect this risk to lessen over time as they work through the process.' The analyst gives Sotera shares a Buy rating, which is complemented by a $17 price target that suggests a 12-month upside potential of 39.5%. (To watch Sykes' track record, click here) These shares have earned a Moderate Buy consensus rating from the Street, based on 3 recent reviews that break down 2 to 1 in favor of Buy over Hold. The stock is selling for $12.19, and its $15 average price target indicates room for a gain of 23% over the next year. (See SHC stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue
Yahoo
5 days ago
- Business
- Yahoo
Consumer Sentiment Held Steady in May As Tariff Uncertainty Persists
The Michigan Consumer Sentiment Index improved from its mid-May preliminary reading to 52.2, matching April's results. Inflation expectations moved lower as consumers factored in President Donald Trump's move to reduce tariffs on China temporarily. While consumers felt better about the short-term economic outlook, they were more worried about wages and remained pessimistic about long-term economic freefall in sentiment leveled off in May as consumers worried less about price increases from tariffs, but still felt uneasy about the economic outlook. The final Michigan Consumer Sentiment Index for May improved slightly from the preliminary results released two weeks ago to 52.2, matching the final results from April. The reading ends four straight months of declines for the closely watched consumer survey. The improved sentiment reflected President Donald Trump's move on May 12 to temporarily reduce tariffs on China to 30% from 145%. It shadows a similar improvement in the Conference Board's Consumer Confidence report, which rose by more than 12 points in May on the temporary tariff truce. Consumers also felt a little better about inflation at the end of the month, with year-ahead expectations for price increases coming in at 6.6%, lower than the preliminary reading but higher than April's inflation expectations. Long-term inflation expectations ticked lower in the report. 'In the second half of the month, sentiment lifted and inflation expectations eased in the wake of the May 12 pause on some tariffs on goods from China,' said Joanne Hsu, director of the University of Michigan Survey of Consumers. 'With continued policy uncertainty, however, consumers continue to expect an economic slowdown to come.' Uncertainty has spread since consumers were asked about their outlook. Courts have gotten involved in tariffs, and Trump has called the tariff pause on Chinese goods into question. While expected short-term business conditions improved, likely from the pause in tariffs, they were offset by declines in consumers' current personal finances that stemmed from stagnant wages, the report said. About 64% of consumers said they expect business conditions to worsen in the year ahead, the same as last month, but more than double the 29% who expressed similar concerns six months ago. 'Consumers still expect the economy to weaken and foresee weaker business conditions and income growth as they express ongoing frustration with the cost of living,' said Oren Klachkin, financial market economist for Nationwide. 'However, the survey suggests consumer attitudes may improve if trade deals are announced and tariff uncertainty diminishes.' The report continued to show the separation between 'hard' and 'soft' data as economic indicators like retail sales remained strong despite consumers raising worries about the economy. 'While the soft data continue to cast an unfavorable light, the hard data paint a comparatively better picture,' Klachkin said. 'Developments on the tariff front will likely continue to shape consumer attitudes.' Read the original article on Investopedia Sign in to access your portfolio
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Business Standard
28-05-2025
- Business
- Business Standard
Gold prices may correct further; check support levels to buy the dips
Spot gold may test the support zone of $3,250-$3,257 (₹93,700-₹93,950). Downside from current level may be limited though. Praveen Singh Mumbai Gold – May correct further Gold performance: Spot gold prices fell for a second consecutive time on May 27 as easing trade tensions, following US President Donald Trump delaying proposed 50 per cent tariff on Europe, boosted risk appetite. Further, speculations that Japan will try to cap rise in long-term yields. The Japanese Finance Ministry sent a questionnaire to market participants regarding appropriate issuance amounts for government bonds. It is to be noted that Japan's long-term yields soared to record highs last week after a sale of 20-year debt got the weakest demand in more than a decade. Decline in yields globally supported risk assets and weighed on precious metals in turn. On May 27, spot gold was changing hands at $3,295, down 1.43 per cent. The yellow metal traded between $3,285 and $3,250 during the day. MCX gold (June), meanwhile, was at ₹95,047, down around 0.94 per cent. US Dollar Index and yields: 10-year US Treasury yields were at 4.43 per cent, down nearly 1.8 per cent on Tuesday, as global yields fell. Thirty-year US yields fell nearly 2 per cent to 4.93 per cent, moving back below the 5-per cent mark after three days. The US Dollar Index, at 99.54, was up around 0.6 per cent on the day. Data roundup: US data released on Tuesday were largely positive for the US Dollar as durable goods orders (April prel.) came in at -6.3 per cent that beat the forecast of -7.8 per cent. Similarly, durables, ex-transport, came at 0.2 per cent and topped the estimate of 0 per cent. However, prior data were revised lower. FHFA House Price Index rose 0.1 per cent M-o-M in March, which trailed the forecast of 0.1 per cent. Conference Board Consumer Confidence (May) rose 98, the highest since February and topped the median estimate of 87.10. US consumer confidence rebounded from a near five-year low on improving economic outlook amid tariff truce talks. Upcoming data: Traders will look forward to FOMC minutes (May 7 meeting). That apart, today's Richmond Fed manufacturing Index (May) and Dallas Fed Services Activity (May) will be released in the US today. However, major focus will be on the US GDP (Q1 secondary reading), personal consumption (Q1 secondary reading), and weekly job data to be released on May 29. China's gold imports rose to an 11-month high: China imported 127.5 metric tonnes of gold in April -- an 11-month high. China gold import was up 73 per cent M-o-M despite high prices. Swiss gold exports decline: Gold ETF: Total known global gold ETF holdings fell to 87.851MOz, lowest since April 8, as ETFs saw outflows for the fifth straight week. Nonetheless, holdings are up around 6% YTD. Gold Outlook: Reduced safe haven demand and strong US Conference Board Consumer Confidence data amid stabilising yields are likely to lead to further correction in gold prices unless trade concerns resurface. ETF outflows and a firmer Dollar can boost the downside pressure. Spot gold may test the support zone of $3,250-$3,257 (₹93,700-₹93,950). Downside from current level may be limited though. Resistance is at $3,325 (₹95,900)/$3,350 (₹96,600).
Yahoo
27-05-2025
- Business
- Yahoo
Why Semiconductor Stocks Broadcom, AMD, and Arm Holdings Rallied Today
President Trump announced an extension of threatened tariffs on the E.U. over the weekend Consumer Confidence bounced back in a big way in May. TSMC made a threat to the Trump administration over potential semiconductor tariffs. 10 stocks we like better than Broadcom › Shares of major semiconductor stocks Broadcom (NASDAQ: AVGO), Advanced Micro Devices (NASDAQ: AMD), and Arm Holdings (NASDAQ: ARM) rallied on Tuesday, rising 3%, 3.9%, and 5.3%, respectively. Chip stocks generally had a good day, as President Trump announced a delay to his threat of 50% tariffs on European Union goods to July 9, seemingly paving the way for negotiations. In addition, a "soft" economic indicator in May's Consumer Confidence readings bounced back in a big way from its April plunge. Finally, several major chip manufacturers submitted letters to the Department of Commerce regarding upcoming potential semiconductor tariffs. Included was a threat from Taiwan Semiconductor Manufacturing (NYSE: TSM) that significant tariffs could derail its announced U.S. projects. Of note, all three of these companies produce their chips at TSMC's Taiwan fabs currently. Semiconductors have been some of the most sensitive to the ongoing trade and tariff controversies of the young Trump administration. While semiconductors are a long-term growth industry, the industry can be quite cyclical. Therefore, concerns over growth slowdowns or recessions are likely to cause turmoil in these stocks. In addition, given the very-international nature of semiconductor manufacturing, supply chains, and materials, semiconductors are doubly sensitive to all the tariff uncertainty. Will chips be tariffed? If not, what about the devices they go into, which are largely assembled overseas? How about the materials and chipmaking equipment that chipmakers use -- for instance, EUV machines, which are only available from the Netherlands? As such, the Trump administration's threat of 50% tariffs on E.U. imports sent these stocks downward on Friday. But on Sunday, President Trump announced an extension to the tariff threat to July 9 on his social media platform Truth Social, giving relief and room for continued negotiations. In addition to that relief, most economically sensitive stocks rallied upon this morning's Consumer Confidence readings for May. According to this month's survey from The Conference Board, consumer confidence bounced back in a big way to a 98 reading. That's a massive beat over the expectations of 86.3, and a 12-point increase over the April lows. During May, President Trump walked back more of his April tariff threats, perhaps most consequentially the highly punitive 145% tariff on China on May 12, to "just" a more manageable 30%, while trade talks continued. Given increased consumer sentiment will go a long way toward staving off a recession, it's no wonder chip stocks moved significantly higher today. Finally, a potential threat from TSMC to the Trump administration could be adding additional fuel to these stocks, which largely have their chips manufactured by the Taiwanese manufacturing giant in Taiwan. The Trump administration is still contemplating tariffs on foreign-made semiconductors in an effort to spur investment in U.S. chipmaking. To ease the administration's concerns, TSMC pledged an additional $100 billion investment in the U.S. a couple of months ago in March. However, that wouldn't necessarily exempt TSMC from tariffs. Last week, leading chip manufacturers all wrote responses to the U.S. Commerce Department's ongoing investigation into semiconductor tariffs under Section 232 of the Trade Expansion Act of 1962. In TSMC's letter, TSMC Arizona Secretary T.C. Morris Cheng wrote that the imposition of tariffs on chips or equipment could threaten the viability of those future manufacturing plants announced by TSMC back in March, which were announced to great fanfare, along with leading Trump administration officials. Publishing this letter could also be helping the stocks of these chipmakers, who all produce chips at TSMC's Taiwan fabs today. The thinking could be that the Trump administration would exempt chips made by TSMC's current leading-edge operations in Taiwan, to preserve that massive investment in the U.S. If those chips are exempt, they would theoretically stay more affordable and wouldn't be disadvantaged relative to rival chips made in the U.S. In addition to the tariff and trade relief, chip stocks may also be looking forward to Nvidia's (NASDAQ: NVDA) earnings tomorrow. Nvidia's results are often used as a proxy for the strength of artificial intelligence (AI) infrastructure investment generally. And although Broadcom's ASICs and AMD's MI-series chips compete with Nvidia in that area, positive results could boost confidence in the overall sector. Meanwhile, Nvidia also uses Arm-based licenses to produce its own Grace CPUs that complement its GPUs, so Arm often trades alongside Nvidia as well. Last week's decline and Tuesday's bounce back just go to show that leading semiconductor stocks are some of the most volatile in the market. However, long-term investors riding out the ups and downs have profited handsomely. The sector has been the best-performing in the market over the past decade. Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein and/or his clients has positions in Broadcom and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Why Semiconductor Stocks Broadcom, AMD, and Arm Holdings Rallied Today was originally published by The Motley Fool
Yahoo
27-05-2025
- Business
- Yahoo
Consumers Breathe Sigh of Relief on U.S.-China Tariff Truce
Consumer confidence increased 12.3 points in May to 98.0, the first time in five months that the closely followed survey of public attitudes on the economy improved. The improved reading comes after President Donald Trump temporarily paused massive tariffs on China. While inflation expectations dropped, economists warned that future price shocks could still undermine public confidence in the economy.A temporary truce in the trade war between the U.S. and China was a big relief for consumers, who said they felt more confident in May for the first time in five months. The Conference Board's Consumer Confidence survey increased by 12.3 points in May to 98.0, halting a slide. Public attitudes about the economy soured so far this year as President Donald Trump began announcing a wide-ranging set of tariffs. The jump surprised economists surveyed by The Wall Street Journal and Dow Jones Newswires, who forecast only a slight improvement from April's reading of 85.7. The May 12 announcement of a temporary reduction in tariffs between the U.S. and China drove the rebound in consumers' outlook. For now, import taxes on goods from China are set at 30%, down from the 145% President Trump had set earlier this year. China also reduced its tariffs on U.S. products in exchange. Trump said the tariff truce would last for 90 days while the two sides negotiate. 'This rebound is a welcome step in the right direction, but like the deal with China, it may prove only a temporary reprieve until we get long-term clarity on trade policy,' wrote Wells Fargo economists Tim Quinlan and Jeremiah Kohl. Consumers' expectations for income, business and labor market conditions in the near term surged higher to 72.8, but still remained below the threshold of 80 that can often signal a recession is near. 'Consumers were less pessimistic about business conditions and job availability over the next six months and regained optimism about future income prospects,' said Stephanie Guichard, senior economist for global indicators at The Conference Board. The survey found that May's rebound covered all age, income and political groups. It also showed that consumers are less worried about price increases due to tariffs, as year-ahead inflation expectations dropped to 6.5%. However, economists warned that inflation from tariffs is still likely and could further chip away at consumer confidence in the future. 'Americans have reason to be happy given the rollback in tariffs, especially with China,' wrote Navy Federal Credit Union economist Robert Frick. 'But when prices start rising from existing tariffs in a month or two, it will be a sobering reminder that a new inflation fight has just begun." Read the original article on Investopedia 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
