Latest news with #HighQualityPortfolio
Forbes
17-04-2025
- Business
- Forbes
Disney Stock At $85: Steal Or Value Trap?
Walt Disney stock has underperformed this year, dropping more than 23% since early January, amid rising recession concerns driven by a wave of tariffs imposed by U.S. President Donald Trump. However, Disney's valuation appears compelling, with the stock trading at roughly 16x consensus FY'25 earnings — a modest price for a company with a renowned content library and a streaming segment poised for a recovery. That said, there are some risks to consider. Trefis Disney stock appears relatively inexpensive, though its fragile financials and historical underperformance in bear markets are notable concerns. Nonetheless, its expanding streaming segment and strong content slate may deliver long-term value for investors willing to endure short-term volatility. This underpins our view that DIS is a good stock to buy. Still, concentrating investment in a single stock can be risky. The Trefis High Quality Portfolio, which includes 30 stocks, has a history of consistently outperforming the S&P 500 over the last four years. Why? These stocks, collectively, offered higher returns with lower volatility compared to the index — a smoother ride, as seen in the HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
17-04-2025
- Business
- Forbes
Where Is UNH Stock Headed After The Q1 Slump?
CANADA - 2025/04/06: In this photo illustration, the UnitedHealth Group logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) UnitedHealth Group (NYSE: UNH) recently announced its Q1 results, with both revenue and earnings falling short of market expectations. The company posted revenue of $109.6 billion and adjusted earnings of $7.20 per share, compared to the consensus estimates of $111.6 billion and $7.29, respectively. Due to the disappointing results, UNH stock is trending lower in pre-market trading on Thursday, April 17. If you're looking for upside with less volatility than an individual stock, consider the High-Quality portfolio, which has outperformed the S&P and delivered over 91% returns since inception. In the first quarter, UnitedHealth Group's revenue rose 9.8% year-over-year to $109.6 billion. This increase was primarily fueled by solid performances across both its segments, with UnitedHealthcare seeing a 12% growth and Optum expanding by 5% year-over-year. A key investor metric, the medical care ratio, stood at 84.8%. Although slightly higher than the 84.3% in the year-ago quarter, it was better than the expected 85.9%, which is a positive. Moreover, UNH improved its overall operating profit margin by 40 basis points year-over-year to 8.3% in Q1. Adjusted earnings per share increased to $7.20, up from $6.91 in the prior-year period. However, UnitedHealth Group has revised its full-year 2025 earnings forecast downward. The updated guidance ranges between $24.65 and $25.15 per share, reduced from the earlier projection of $26.00 to $26.50 per share. To summarize, although UNH missed on revenue and earnings and lowered its earnings forecast — developments likely to weigh on the stock — the better-than-expected medical care ratio could offer some comfort to investors. The market has responded negatively to UnitedHealth Group's Q1 showing, with shares down 20% in pre-market trading on Thursday, April 17. This is a sharp reversal from the stock's performance as of April 16, when it had gained 16% year-to-date, outperforming the S&P 500 index, which had dropped 10% over the same timeframe. Looking at a broader time horizon, UNH's stock performance over the past four years has been mixed, mirroring the volatility of the S&P 500. Annual returns for the stock were 45% in 2021, 7% in 2022, 1% in 2023, and -2% in 2024. The current pre-market selloff suggests investors are unimpressed with the Q1 results. By comparison, the Trefis High Quality Portfolio, comprising 30 stocks, has shown lower volatility. It has clearly outpaced the S&P 500 over the last four years. Why is that? These HQ Portfolio stocks tend to deliver better returns with lower risk relative to the benchmark index, as highlighted in the HQ Portfolio performance metrics. Given the current uncertain macroeconomic backdrop, including persistent tariffs and a worsening trade war, the key question is whether UNH could continue underperforming the S&P 500 as it did in 2023 and 2024, or whether a recovery is possible. While we are updating our UNH model to reflect the latest quarterly data, early market signals — with the stock hovering around $470 in pre-market on April 17 — indicate that investors are likely displeased with Q1 outcomes. At this price level, UNH stock trades at a forward P/E ratio of 19x, based on the midpoint of its projected forward earnings of $24.90. This is below its average P/E of 21x over the past three years. In light of its recent performance and lowered full-year outlook, compounded by broader economic concerns, a modest compression in UNH's valuation multiple appears warranted. While UNH stock is trending down, it's useful to examine how UnitedHealth Group Peers are performing on key metrics. You can explore more cross-industry comparisons at Peer Comparisons. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
16-04-2025
- Business
- Forbes
Altria: A Portfolio Essential?
POLAND - 2024/11/24: In this photo illustration, the Altria Group company logo is seen displayed on ... More a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images) Let us start with a surprising fact: a company with negative revenue growth has outperformed the S&P 500 over the last five years, delivered mid-double-digit annual returns excluding dividends, offered a compelling 6.7% dividend yield, and acted as a market crash hedge—all with lower volatility than your typical tech stock. Introducing the paradox—Altria Group (NYSE: MO). The maker of Marlboro might not grab headlines, but it arguably deserves a central place in your portfolio. We emphasize 'portfolio' because relying on one or a few stocks is inherently risky, no matter how strong the fundamentals look. At Trefis, we prioritize risk management in our High-Quality portfolio, which has outperformed the S&P 500 and delivered over 91% returns since inception. The kicker? All of this is available at a P/E ratio below 10. You're paying a bargain price for a business already delivering an 8% free cash flow yield and an 11% earnings yield. Here's the truth: Altria's revenue hasn't grown. Its 3-year average revenue growth stands slightly negative at -1.1%. And it's not a concern. Why? Because this isn't about revenue expansion—it's about capital efficiency, strong cash returns, and defensive resilience. MO doesn't need to grow to generate wealth. It simply needs to run—and it does that better than most. Think MO only works in bull markets? Think again. In 2022, while the S&P 500 dropped nearly 20%, MO returned +4.4%. And in 2025 (so far), with the broader market down 8%, MO is up +11.2%. It's your portfolio's built-in more? Since December 2020, MO's annualized volatility is just 20.5%, only slightly above the S&P 500's 18%. For a stock delivering superior returns and high yields, that's impressively stable. So how does a tobacco company continue to thrive in 2025? Through pricing power, consumer stickiness, and a dedicated customer base. Pair that with years of operational rigor and a focused product lineup, and you get a business that behaves more like a utility than a consumer product. Should you only look for stocks like this? Of course not. The market is broad. The real advantage lies in diversifying smartly—combining different categories to boost upside while reducing risk and volatility. That's the philosophy behind the Trefis High Quality Portfolio, which features 30 hand-picked stocks and has consistently outpaced the S&P 500 over the past four years. Why? As a group, these stocks have delivered higher returns with lower risk—less of a roller-coaster ride, as highlighted in the HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
15-04-2025
- Business
- Forbes
Another 2x Gain For Stride?
LRN Stock Very likely! Consider this: with 40% EPS growth, strong double-digit enrollment gains, and operating margins above 15%, Stride – a digital K-12 education company – is outperforming legacy early education and child care provider Bright Horizons on nearly every key metric. Yet, BFAM trades at roughly 30x EBIT, while Stride is valued at just 16x. The market is taking notice, which explains why LRN has surged 120% over the past year, compared to only 5% for BFAM. Stride is expanding faster, scaling more efficiently, earning better margins – yet it's still priced like a lower-tier company. This kind of setup is often overlooked by Wall Street – until it isn't. While it might be smart to pick up LRN on a dip, investing in a single stock carries inherent risk. For a more balanced approach with strong upside potential, consider the High-Quality portfolio, which has consistently outperformed the S&P 500, delivering returns over 91% since inception. If that's not compelling enough – here's another point. Stride's fully online model scales nationally without the drag of physical infrastructure, while BFAM must contend with growing labor and facility costs. And this trend isn't limited to Stride – Grand Canyon Education, another digital-first education provider, is also gaining investor traction, reinforcing the market's shift toward asset-light, high-margin education models. That said, there's always risk in concentrating investments in one or a few stocks. For a broader, lower-risk approach, take a look at Trefis' High Quality Portfolio, a diversified basket of 30 stocks that has consistently outperformed the S&P 500 over the last four years. Why is that? Because the HQ Portfolio delivers stronger returns with less volatility than the benchmark index, as seen in the HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
14-04-2025
- Business
- Forbes
Is Coca-Cola Stock About To Pop?
Coca Cola cans are pictured in a supermarket in Bayonne, New Jersey, on April 8, 2025. (Photo by ... More CHARLY TRIBALLEAU / AFP) (Photo by CHARLY TRIBALLEAU/AFP via Getty Images) Who would have thought that your favorite soft drink maker could hold up so well during a period of tariff-driven market volatility? In fact, Coca-Cola stock (NYSE: KO) has recently reversed its short-term downtrend, suggesting there may be further upside ahead. We believe adding it to your portfolio could be a smart move to diversify risk and enhance resilience during market downturns. For those seeking less volatility than individual stocks, consider the High-Quality portfolio, which has outperformed the S&P 500 and delivered returns of over 91% since its inception. Coca-Cola's stock has shown strong technical momentum, with its 50-day moving average recently rising above the 200-day moving average in a bullish 'golden cross' formation. KO Stock Price History Furthermore, the current share price is trading above both these key levels, indicating a potential shift in trend and growing upward momentum—even as the broader market remains volatile due to tariff issues. Investors aiming to lower risk in their portfolios may find Coca-Cola appealing for several reasons: The combination of these technical indicators and Coca-Cola's solid fundamentals make the stock a strong candidate for investors seeking portfolio stability in uncertain times. KO stock is currently trading at 24 times its projected 2025 earnings of $2.94, consistent with its historical average price-to-earnings ratio. But if KO doesn't spark your interest, consider Trefis' High Quality Portfolio, a curated basket of 30 stocks. This portfolio has consistently outperformed the S&P 500 over the past four years. Why? Because as a group, HQ Portfolio stocks have delivered higher returns with lower volatility compared to the index—a smoother ride as seen in HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
