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West Australian
10-06-2025
- Business
- West Australian
Wall Street mixed as US-China trade talks grab focus
Wall Street's main indexes are mixed as investors await the outcome of ongoing trade talks between the United States and China aimed at cooling a tariff dispute that has bruised global markets this year. US Commerce Secretary Howard Lutnick said trade talks with China were going well as officials from the two sides met for a second day in London. Investors are hoping for an improvement in ties after the relief around a preliminary deal struck last month gave way to fresh doubts when the US accused China of blocking exports critical to sectors such as aerospace, semiconductors and defence. White House economic adviser Kevin Hassett said on Monday the US was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths. "I think these issues will be resolved but I think it's still early days ... but the fact that they're talking certainly is positive," said Mark Malek, chief investment officer at Siebert Financial. "We're not making progress yards at a time but inches at a time." In early trading on Tuesday, the Dow Jones Industrial Average fell 20.22 points, or 0.05 per cent, to 42,742.88, the S&P 500 gained 10.30 points, or 0.17 per cent, to 6,016.18 and the Nasdaq Composite gained 53.92 points, or 0.28 per cent, to 19,645.16. Seven of the 11 major S&P 500 sub-sectors rose, led by energy with a 1.7 per cent gain, tracking strength in oil prices. Communication services stocks added 0.9 per cent. US equities rallied sharply in May, with the S&P 500 index and the tech-heavy Nasdaq marking their best monthly gains since November 2023, helped by upbeat earnings reports and a softening of US President Donald Trump's harsh trade stance. The S&P 500 remains about 2.0 per cent below all-time highs touched in February while the Nasdaq is about 2.6 per cent below its record peaks reached in December. Investors are awaiting US consumer prices data on Wednesday for clues on the Federal Reserve's rate trajectory. The World Bank slashed its global growth forecast for 2025 by 0.4 per centage point to 2.3 per cent, saying higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. Shares of McDonald's fell 1.4 per cent, weighing on the blue-chip Dow Index, after a report Redburn Atlantic downgraded the fast-food giant to "sell" from "buy". Most megacap and growth stocks were mixed. Tesla shares advanced 2.6 per cent. Insmed shares jumped 27.7 per cent after the drug maker said its experimental drug significantly reduced blood pressure in the lungs and improved exercise capacity in patients in a mid-stage study. US-listed shares of Tencent Music Entertainment Group advanced 2.2 per cent after the Chinese company said it would buy domestic long-form audio platform Ximalaya for about $US2.4 billion ($A3.7 billion) in cash and stock. Advancing issues outnumbered decliners by a 2.52-to-1 ratio on the NYSE and by a 1.76-to-1 ratio on the Nasdaq. The S&P 500 posted 7 new 52-week highs and one new low while the Nasdaq Composite recorded 42 new highs and 29 new lows.
Perth Now
10-06-2025
- Business
- Perth Now
Wall Street mixed as US-China trade talks grab focus
Wall Street's main indexes are mixed as investors await the outcome of ongoing trade talks between the United States and China aimed at cooling a tariff dispute that has bruised global markets this year. US Commerce Secretary Howard Lutnick said trade talks with China were going well as officials from the two sides met for a second day in London. Investors are hoping for an improvement in ties after the relief around a preliminary deal struck last month gave way to fresh doubts when the US accused China of blocking exports critical to sectors such as aerospace, semiconductors and defence. White House economic adviser Kevin Hassett said on Monday the US was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths. "I think these issues will be resolved but I think it's still early days ... but the fact that they're talking certainly is positive," said Mark Malek, chief investment officer at Siebert Financial. "We're not making progress yards at a time but inches at a time." In early trading on Tuesday, the Dow Jones Industrial Average fell 20.22 points, or 0.05 per cent, to 42,742.88, the S&P 500 gained 10.30 points, or 0.17 per cent, to 6,016.18 and the Nasdaq Composite gained 53.92 points, or 0.28 per cent, to 19,645.16. Seven of the 11 major S&P 500 sub-sectors rose, led by energy with a 1.7 per cent gain, tracking strength in oil prices. Communication services stocks added 0.9 per cent. US equities rallied sharply in May, with the S&P 500 index and the tech-heavy Nasdaq marking their best monthly gains since November 2023, helped by upbeat earnings reports and a softening of US President Donald Trump's harsh trade stance. The S&P 500 remains about 2.0 per cent below all-time highs touched in February while the Nasdaq is about 2.6 per cent below its record peaks reached in December. Investors are awaiting US consumer prices data on Wednesday for clues on the Federal Reserve's rate trajectory. The World Bank slashed its global growth forecast for 2025 by 0.4 per centage point to 2.3 per cent, saying higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. Shares of McDonald's fell 1.4 per cent, weighing on the blue-chip Dow Index, after a report Redburn Atlantic downgraded the fast-food giant to "sell" from "buy". Most megacap and growth stocks were mixed. Tesla shares advanced 2.6 per cent. Insmed shares jumped 27.7 per cent after the drug maker said its experimental drug significantly reduced blood pressure in the lungs and improved exercise capacity in patients in a mid-stage study. US-listed shares of Tencent Music Entertainment Group advanced 2.2 per cent after the Chinese company said it would buy domestic long-form audio platform Ximalaya for about $US2.4 billion ($A3.7 billion) in cash and stock. Advancing issues outnumbered decliners by a 2.52-to-1 ratio on the NYSE and by a 1.76-to-1 ratio on the Nasdaq. The S&P 500 posted 7 new 52-week highs and one new low while the Nasdaq Composite recorded 42 new highs and 29 new lows.
Yahoo
01-05-2025
- Business
- Yahoo
Is UnitedHealth Group (UNH) the Most Profitable Blue Chip Stock to Buy Now?
We recently published a list of 10 Most Profitable Blue Chip Stocks to Buy Now. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other most profitable blue chip stocks to buy now. Blue chip stocks are large, financially stable companies with strong market presence, consistent profitability, and regular dividend payments. They are generally market leaders, with strong business models that are resilient across business cycles. Many blue chip stocks are included in the Dow Index (DJIA), so the index is often considered an indicator of their overall performance. Investors would typically flock to blue chip stocks in times of market volatility, economic uncertainty, or when the economy is in late-stage expansion, as these large-cap companies tend to offer stability and consistent returns versus smaller or riskier companies. We believe that blue chip stocks, and the constituents of the Dow index in particular, represent a unique blend of the value and size factors, combining the financial stability, earnings consistency, and attractive market valuations typically associated with value stocks, with the scale and market dominance of large-cap companies. This dual exposure enhances their resilience in economic downturns and makes them well-positioned to outperform during recessions, when investors tend to shift towards quality and safer stocks. For reference, the Fama–French Three-Factor Model, introduced in 1993, concludes that incorporating exposure to several favorable factors can further enhance stock returns. In this context, both the value and large size factors outperformed in the last years, and especially year-to-date. READ ALSO: 10 Most Profitable Large Cap Stocks to Buy Now Our research indicates that recession fears and Trump Turmoil are likely to persist and potentially continue to favor the most profitable blue chip stocks over everything else. The US administration appears to be eroding the trust of investors through a plethora of unpredictable and contradictory moves – Trump appeared to soften his stance on the US-China trade war, saying that tariffs on Chinese goods 'will not be as high as 145 per cent' and that 'it'll come down substantially, but won't be zero'. While this represents a good signal at first glance, such actions are very likely to deter the US's partners from negotiating for tariff exemption, simply because the current administration has become too unpredictable. Our thoughts are confirmed by the VIX volatility index remaining elevated compared to the long-term trend, while the crude oil price remains in a downtrend, suggesting expectations of weaker industrial demand and a weaker economy. On the consumer side, there are reasons to believe that US consumers are getting more cautious than ever – the employee quits rate, as reported by FRED, declined substantially year-to-date and reached levels comparable to the aftermath of the 2008 financial crisis. When employees are reluctant to quit it means two things: (1) it is tough to get jobs out there, implying that the economy is slowing down, and (2) their expectation about the future becomes more pessimistic, which leads to less willingness to quit and potentially risk difficulties finding a new job. Both these factors mean the consumer spending will likely slow down in the following quarters, further pressuring GDP growth. The key takeaway for the readers is that the odds of a recession and of a prolonged bear market still persist. In this context, the best hedging strategy would be to hold shares of companies that perform well in bull markets, but at the same time can offer protection against turmoil and recessions. Our belief is that the most profitable blue chip stocks are the best candidates, because they possess the wide moat and strong cash flow capacity to withstand any economic slowdown and even potentially absorb the incremental tariffs. A senior healthcare professional giving advice to a patient in a clinic. To compile our list of most profitable blue chip stocks to buy now, we screened for current and former members of the Dow Jones Industrial Average index and identified companies with the highest net income generated in the latest reported fiscal year. From that group, we picked companies with the highest net profit margin, which suggests sound financial health and excellent cost management. The stocks are ranked in ascending order of their net profit margin as of the most recent quarter. For each stock, we also included the number of hedge funds that own the stock as of Q4 2024, according to Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().UnitedHealth Group Incorporated (NYSE:UNH) is the largest diversified healthcare company offering health insurance plans across employer-sponsored, Medicare Advantage, Medicaid, and individual markets, covering over 50 million people in the US. The company also owns the Optum segment, which provides pharmacy benefit management, healthcare delivery services, and complementary data analytics and technology solutions. UnitedHealth Group Incorporated (NYSE:UNH) started 2025 with strong growth across businesses but faced unexpected performance challenges, leading to a downward revision in adjusted EPS outlook. The company identified two main factors impacting performance: increased care activity in Medicare Advantage, with Q1 2025 care activity increasing at twice the expected rate, and unanticipated changes in Optum Medicare membership profiles affecting 2025 revenue. The care activity increases were primarily in physician and outpatient services, specifically limited to the Medicare Advantage business and not affecting commercial or Medicaid businesses. To address these challenges, UnitedHealth Group Incorporated (NYSE:UNH) is implementing several initiatives, including ensuring complex patients engage in clinical and value-based programs, consistently engaging with members in homes and post-discharge settings, and improving physician clinical workflow to better transition to the new CMS risk model. Despite these challenges, UNH's Medicare Advantage business is still expected to serve an additional 800,000 people this year, while Optum Health is on track to add 650,000 net new patients to value-based care arrangements. UNH remains committed to returning to its long-term EPS growth target of 13% to 16%, making it one of the most profitable stocks to buy now. Overall, UNH ranks 9th on our list of most profitable blue chip stocks to buy now. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Is Visa Inc. (V) the Most Profitable Blue Chip Stock to Buy Now?
We recently published a list of 10 Most Profitable Blue Chip Stocks to Buy Now. In this article, we are going to take a look at where Visa Inc. (NYSE:V) stands against other most profitable blue chip stocks to buy now. Blue chip stocks are large, financially stable companies with strong market presence, consistent profitability, and regular dividend payments. They are generally market leaders, with strong business models that are resilient across business cycles. Many blue chip stocks are included in the Dow Index (DJIA), so the index is often considered an indicator of their overall performance. Investors would typically flock to blue chip stocks in times of market volatility, economic uncertainty, or when the economy is in late-stage expansion, as these large-cap companies tend to offer stability and consistent returns versus smaller or riskier companies. We believe that blue chip stocks, and the constituents of the Dow index in particular, represent a unique blend of the value and size factors, combining the financial stability, earnings consistency, and attractive market valuations typically associated with value stocks, with the scale and market dominance of large-cap companies. This dual exposure enhances their resilience in economic downturns and makes them well-positioned to outperform during recessions, when investors tend to shift towards quality and safer stocks. For reference, the Fama–French Three-Factor Model, introduced in 1993, concludes that incorporating exposure to several favorable factors can further enhance stock returns. In this context, both the value and large size factors outperformed in the last years, and especially year-to-date. READ ALSO: 10 Most Profitable Large Cap Stocks to Buy Now Our research indicates that recession fears and Trump Turmoil are likely to persist and potentially continue to favor the most profitable blue chip stocks over everything else. The US administration appears to be eroding the trust of investors through a plethora of unpredictable and contradictory moves – Trump appeared to soften his stance on the US-China trade war, saying that tariffs on Chinese goods 'will not be as high as 145 per cent' and that 'it'll come down substantially, but won't be zero'. While this represents a good signal at first glance, such actions are very likely to deter the US's partners from negotiating for tariff exemption, simply because the current administration has become too unpredictable. Our thoughts are confirmed by the VIX volatility index remaining elevated compared to the long-term trend, while the crude oil price remains in a downtrend, suggesting expectations of weaker industrial demand and a weaker economy. On the consumer side, there are reasons to believe that US consumers are getting more cautious than ever – the employee quits rate, as reported by FRED, declined substantially year-to-date and reached levels comparable to the aftermath of the 2008 financial crisis. When employees are reluctant to quit it means two things: (1) it is tough to get jobs out there, implying that the economy is slowing down, and (2) their expectation about the future becomes more pessimistic, which leads to less willingness to quit and potentially risk difficulties finding a new job. Both these factors mean the consumer spending will likely slow down in the following quarters, further pressuring GDP growth. The key takeaway for the readers is that the odds of a recession and of a prolonged bear market still persist. In this context, the best hedging strategy would be to hold shares of companies that perform well in bull markets, but at the same time can offer protection against turmoil and recessions. Our belief is that the most profitable blue chip stocks are the best candidates, because they possess the wide moat and strong cash flow capacity to withstand any economic slowdown and even potentially absorb the incremental tariffs. To compile our list of most profitable blue chip stocks to buy now, we screened for current and former members of the Dow Jones Industrial Average index and identified companies with the highest net income generated in the latest reported fiscal year. From that group, we picked companies with the highest net profit margin, which suggests sound financial health and excellent cost management. The stocks are ranked in ascending order of their net profit margin as of the most recent quarter. For each stock, we also included the number of hedge funds that own the stock as of Q4 2024, according to Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Net Profit Margin: 54.27% Visa Inc. (NYSE:V) is a payment processing company that facilitates digital payment transactions between consumers and merchants in over 200 countries. Its proprietary VisaNet network acts as a huge competitive advantage, in that it allows the authorization, clearing, and settlement of payment transactions without issuing cards or extending credit itself. The company also offers value-added services like fraud prevention, tokenization, and data analytics to complement its primary payment processing service. V effectively runs a duopoly along with Mastercard, making it one of the most profitable stocks to consider. Visa Inc. (NYSE:V) reported strong Q1 2025 financial results with net revenue of $9.5 billion, up 10% YoY, and EPS growth of 14%. The company saw improvements in key business drivers, with payments volume growing 9% in constant dollars, US payments volume up 7%, international payments volume rising 11%, and cross-border volume excluding intra-Europe increasing 16%. The company's tokenization efforts showed significant progress as well, with 4.7 billion credentials (up 7% YoY) and 12.6 billion tokens (up 44% YoY), while tap-to-pay transactions reached 74% of all face-to-face transactions. This illustrates the company's success in protecting its competitive advantage with alternative services and quality improvement. Value-added services remain a key driver of growth, with revenues up 18% YoY in constant dollars, while new flows revenue increased 19% YoY in constant dollars. The company demonstrated strong client relationships through multiple renewals and new partnerships, including agreements with major institutions like ICBC in Mainland China, ICICI Bank in India, and BNP Paribas in Europe. Looking ahead, management has updated its full-year outlook, expecting adjusted net revenue growth to be in the low double digits and adjusted EPS growth in the low teens. Overall, V ranks 2nd on our list of most profitable blue chip stocks to buy now. While we acknowledge the potential of V as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
Johnson & Johnson (JNJ): Among the Most Profitable Blue Chip Stocks to Buy Now
We recently published a list of 10 Most Profitable Blue Chip Stocks to Buy Now. In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against other most profitable blue chip stocks to buy now. Blue chip stocks are large, financially stable companies with strong market presence, consistent profitability, and regular dividend payments. They are generally market leaders, with strong business models that are resilient across business cycles. Many blue chip stocks are included in the Dow Index (DJIA), so the index is often considered an indicator of their overall performance. Investors would typically flock to blue chip stocks in times of market volatility, economic uncertainty, or when the economy is in late-stage expansion, as these large-cap companies tend to offer stability and consistent returns versus smaller or riskier companies. We believe that blue chip stocks, and the constituents of the Dow index in particular, represent a unique blend of the value and size factors, combining the financial stability, earnings consistency, and attractive market valuations typically associated with value stocks, with the scale and market dominance of large-cap companies. This dual exposure enhances their resilience in economic downturns and makes them well-positioned to outperform during recessions, when investors tend to shift towards quality and safer stocks. For reference, the Fama–French Three-Factor Model, introduced in 1993, concludes that incorporating exposure to several favorable factors can further enhance stock returns. In this context, both the value and large size factors outperformed in the last years, and especially year-to-date. READ ALSO: 10 Most Profitable Large Cap Stocks to Buy Now Our research indicates that recession fears and Trump Turmoil are likely to persist and potentially continue to favor the most profitable blue chip stocks over everything else. The US administration appears to be eroding the trust of investors through a plethora of unpredictable and contradictory moves – Trump appeared to soften his stance on the US-China trade war, saying that tariffs on Chinese goods 'will not be as high as 145 per cent' and that 'it'll come down substantially, but won't be zero'. While this represents a good signal at first glance, such actions are very likely to deter the US's partners from negotiating for tariff exemption, simply because the current administration has become too unpredictable. Our thoughts are confirmed by the VIX volatility index remaining elevated compared to the long-term trend, while the crude oil price remains in a downtrend, suggesting expectations of weaker industrial demand and a weaker economy. On the consumer side, there are reasons to believe that US consumers are getting more cautious than ever – the employee quits rate, as reported by FRED, declined substantially year-to-date and reached levels comparable to the aftermath of the 2008 financial crisis. When employees are reluctant to quit it means two things: (1) it is tough to get jobs out there, implying that the economy is slowing down, and (2) their expectation about the future becomes more pessimistic, which leads to less willingness to quit and potentially risk difficulties finding a new job. Both these factors mean the consumer spending will likely slow down in the following quarters, further pressuring GDP growth. The key takeaway for the readers is that the odds of a recession and of a prolonged bear market still persist. In this context, the best hedging strategy would be to hold shares of companies that perform well in bull markets, but at the same time can offer protection against turmoil and recessions. Our belief is that the most profitable blue chip stocks are the best candidates, because they possess the wide moat and strong cash flow capacity to withstand any economic slowdown and even potentially absorb the incremental tariffs. A smiling baby with an array of baby care products in the foreground. To compile our list of most profitable blue chip stocks to buy now, we screened for current and former members of the Dow Jones Industrial Average index and identified companies with the highest net income generated in the latest reported fiscal year. From that group, we picked companies with the highest net profit margin, which suggests sound financial health and excellent cost management. The stocks are ranked in ascending order of their net profit margin as of the most recent quarter. For each stock, we also included the number of hedge funds that own the stock as of Q4 2024, according to Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Net Profit Margin: 24.4% Johnson & Johnson (NYSE:JNJ) is a leading healthcare company focusing on developing treatments in complex areas such as oncology, immunology, neuroscience, and cardiovascular health. The company is known for products such as Darzalex, Stelara, and Tremfya. Its MedTech segment offers medical devices across orthopaedics, surgery, and vision care. JNJ ranked eighth on our recent list of 10 Best Low Risk Stocks To Buy in 2025. Johnson & Johnson (NYSE:JNJ) delivered strong operational sales growth of 4.2% across their business in Q1 2025, with YoY sales increases in both the innovative medicine and MedTech segments. This growth was particularly impressive as the company managed to achieve it despite facing an approximate 810 basis point headwind from the STELARA product and the impact of Part D redesign. In Innovative Medicine, eleven key brands grew double digits, with DARZALEX continuing to set standards in multiple myeloma with over 20% growth and quarterly sales exceeding $3 billion. Looking ahead, 2025 is positioned as a catalyst year that will set up accelerated growth through the second half of the decade and beyond. Johnson & Johnson (NYSE:JNJ) strengthened its portfolio through strategic moves, including the completion of the Intra-Cellular Therapies acquisition and a commitment to invest more than $55 billion in US manufacturing, R&D, and technology over the next four years. The company also demonstrated confidence in its future by increasing its dividend for the 63rd consecutive year and maintaining its adjusted reported earnings per share guidance of 6.2% at the midpoint, despite various headwinds, including tariffs. With more than $24 billion in net income generated in the latest fiscal year, JNJ is one of the most profitable blue-chip stocks on our list. Overall, JNJ ranks 5th on our list of most profitable blue chip stocks to buy now. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
