Latest news with #Inker
Yahoo
15-03-2025
- Business
- Yahoo
Wall Street Battered Again by Trump Chaos as New Winners Emerge
(Bloomberg) -- This is the market Ben Inker has been waiting for. In the grip of Wall Street's rebellion against President Donald Trump's tariff agenda – with stocks down around 2% this week even after Friday's big rebound – Inker is among a cohort of investors making money in this year's volatility spiral. Trump DEI Purge Hits Affordable Housing Groups Electric Construction Equipment Promises a Quiet Revolution NYC Congestion Pricing Toll Gains Support Among City Residents Open Philanthropy Launches $120 Million Fund To Support YIMBY Reforms How Britain's Most Bike-Friendly New Town Got Built The long-time skeptic of the US bull run is sitting on a 4% gain in his benchmark portfolio, beating most of his peers thanks to outsized bets on cheap shares and equities around the world, from Japan to Europe. The international positioning looks smart, for now. The average daily swing in US stocks and bonds has just jumped to levels unseen since the disruptive days of the Federal Reserve's inflation-fighting campaign. 'This does feel pretty violent, mostly because the market had been pretty tame for a couple of years,' the 54-year-old co-head of asset allocation at Grantham Mayo Van Otterloo said in an interview, in the aftermath of the more than $5 trillion equity rout. 'I'm very sympathetic to what the market is doing.' The Boston-based manager is benefiting from trade war-disrupted markets that in the past seemed impervious to concerns about spiraling valuations and concentration. Hedge funds, retail speculators and retirement balances have taken hits, even accounting for days like Friday, when the S&P 500 staged its biggest bounce from a loss in seven months. But for a cohort of long-time skeptics of the tech-fomented bull run — like Inker's peers in international equities and value investing — it's been a market to be relished. Wild rides are a regular feature of Wall Street. Still, what strikes market pros is how unique this moment feels. Much of the trading action can be ascribed to just one variable: Donald Trump. Indeed, the market impact of Trump's early days in office is by some definitions historic, at least in the lens of a new presidency. Amid mounting concern about tariff threats and government firings, US stocks just posted their worst start for new administration since the global financial crisis. The dollar is headed for its biggest post-inauguration loss since Richard Nixon began his second term in 1973. All that made for another bruising week across assets, with the S&P 500 on Thursday capping a 10% plunge that took just 16 sessions — before a Friday rebound. Credit markets also started to confirm the growth angst as junk bond spreads widened. The US dollar was hit for a second week, extending its March loss to 2.5%. Another lens into the gyrations comes from Citigroup Inc. Its gauge of global risk, which analyzes the implied volatility of 22 cross-asset ETFs, is at the highest since 2022. It was a different story just a few weeks ago. Stocks were churning record after record, junk bond spreads were the tightest since 2007, and Bitcoin was above $100,000. Roughly one third of the S&P 500 was concentrated in seven stocks, a level of concentration with no precedent. That excesses like those should be unwound — whatever the reason — strikes many Wall Street skeptics as a long time coming. And the risk-off retreat smells like opportunity to Jeff Muhlenkamp, whose $230 million Muhlenkamp Fund has bucked the broad market rout to eke out a gain this year. He's looking to scoop up bargains in the chip-making and chemical industry. Muhlenkamp notes that with the S&P 500 trading at 27 times reported earnings in January, Trump inherited one of the highest-priced stock markets in history. In his view, it was one that was ripe to be sold, when uncertainty started building around the president's policy agenda and China emerged as a threat to America's dominance in artificial intelligence. 'The market was very expensive anyway and all this uncertainty is going to make people nervous,' Muhlenkamp said. 'So they're going to pull back a little bit. They're not as levered as they were. And that's a very healthy thing.' Volatility Spiral It will also do down as a week in which wary traders took cover in havens again, like gold and government bonds. The precious metal has rallied 10% since Trump's January inauguration — the best start to a presidential cycle since Jimmy Carter's term began in 1977. Treasuries are up 2.5% over the stretch, a gain not seen at this time of a cycle since Bill Clinton in 1993. The persistence of the volatility has market watchers, for weeks, waiting for a so-called 'Trump put,' in which the president intervenes to stem further losses or calm volatility. Yet for now, sentiment remains frail, with faith in the oligarchy of American tech giants getting stress-tested. All this is a boon for fans of foreign stocks, which for more than a decade have paled in comparison to the roaring Magnificent 7. At Morgan Stanley Investment Management, Jitania Kandhari is among those finally benefiting from a rotation out of that group. 'US concentration was up, valuations were extended,' said the deputy CIO of the solutions and multi-asset group, who co-overseas the Passport Overseas Equity Portfolio. 'It did feel like you could have a correction.' How America Got Hooked on H Mart How Trump's 'No Tax on Tips' Could Backfire for the Working Class How Natural Gas Became America's Most Important Export Disney's Parks Chief Sees Fortnite as Key to Its Future Germany Is Suffering an Identity Crisis 80 Years in the Making ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
08-03-2025
- Business
- Yahoo
Is United Microelectronics Corporation (UMC) the Best Cash-Rich Undervalued Stock to Invest In?
We recently compiled a list of the . In this article, we are going to take a look at where United Microelectronics Corporation (NYSE:UMC) stands against the other cash-rich undervalued stocks. Currently, big tech and high-growth stocks dominate the stock market, making up a much larger share of the broader market than they have historically. This means many investors may be missing out on value stocks, which are companies that are priced lower but have strong fundamentals. In the past, when this gap between growth and value stocks was this wide, value stocks ended up performing better over the next few years. In case the market changes its tide, investors who are too focused on growth stocks could face higher risks. Recently, value stocks have started to show signs of a comeback. However, after trailing growth stocks by almost 10% in 2024, value stocks took the lead in January, with the Morningstar US Value Index rising 4.5%, outperforming the 3.9% gain of the Morningstar US Growth Index. The boost came mainly from healthcare stocks, which jumped 6.8%, and financial services stocks, which surged 6.7%. Among different stock categories, mid-sized growth stocks performed the best, rising 6.1%, followed by small growth stocks at 5.1% and large value stocks at 5%. Looking at history, value stocks have performed better than growth stocks in 46% of months over the past 20 years, showing that the market shifts between favoring one type over the other. Market experts see opportunities in undervalued parts of the market. Ben Inker, a portfolio manager at GMO, is staying cautious as markets hit extreme highs, with Bitcoin topping $100,000 and mega-cap tech stocks driving the broader market's rally. With so much uncertainty in the economic and policy landscape, he remains skeptical of making bets based on long-term predictions. Instead, Inker is focusing on 'deep value' stocks, which are the cheapest 20% of the US market. He sees some of the biggest discounts in that market segment. He is also looking at small-cap stocks in Japan, especially as US stocks trade at record-high premiums compared to global markets. Inker favors the cheaper equal-weighted S&P index as well, which has historically delivered better long-term returns than the standard market cap-weighted version. Let's take a look at some of the best cash-rich undervalued stocks below. For this article, we used the Finviz stock screener to identify cash-rich undervalued stocks. We applied a filter to select companies with P/E ratios under 15. Additionally, we used a current ratio (CR) filter of over 2 to identify stocks with strong current assets. CR is a company's current assets divided by its current liabilities. If the CR is over 1, it means the company has more assets than liabilities, usually because of high cash reserves, receivables, or inventory. After filtering, we manually searched for companies with TTM operating cash flow exceeding $2 billion as of December 31, 2024, and selected 10 stocks with the highest cash reserves. The list below is ranked in ascending order based on TTM operating cash flow. We have also included hedge fund sentiment as of Insider Monkey's Q4 2024. 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 (). A close-up of a state-of-the-art semiconductor wafer foundry. P/E Ratio as of March 3: 10.24 TTM Operating Cash Flow as of December 31, 2024: $87,111,640,000 Number of Hedge Fund Holders: 18 United Microelectronics Corporation (NYSE:UMC) is a Taiwanese semiconductor foundry that manufactures and sells integrated circuits globally. It offers backend and design support services for the mobile communications, IoT, computing, and automotive industries. UMC is one of the best cash rich stocks to watch, with a whopping $87 billion in TTM operating cash flow as of December 31, 2024. UMC earned the highest 'A' rating in Climate Change and Water Security from CDP for the third year in a row. The company aims for net-zero emissions by 2050 and 100% renewable energy use. United Microelectronics Corporation (NYSE:UMC) brought in NT$60.39 billion in revenue for Q4 2024, staying nearly flat from the previous quarter but up 9.9% from last year. The company maintained a solid 30.4% gross margin and reported NT$8.50 billion in net income, with earnings per share at NT$0.68. Cash flow from operations hit NT$32.98 billion, while capital spending reached NT$18.93 billion, leaving NT$14.04 billion in free cash flow. UMC had a net cash inflow of NT$1.59 billion and it plans to repay NT$5.53 billion in bank loans over the next year. According to Insider Monkey's fourth quarter database, 18 hedge funds were bullish on United Microelectronics Corporation (NYSE:UMC), compared to 11 funds in the last quarter. Israel Englander's Millennium Management was the leading stakeholder of the company, with 14.3 million shares worth $93 million. Overall UMC ranks 1st on our list of the best cash-rich undervalued stocks to buy. While we acknowledge the potential of UMC as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UMC but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
08-03-2025
- Business
- Yahoo
Is EOG Resources, Inc. (EOG) the Best Cash-Rich Undervalued Stock to Invest In?
We recently compiled a list of the . In this article, we are going to take a look at where EOG Resources, Inc. (NYSE:EOG) stands against the other cash-rich undervalued stocks. Currently, big tech and high-growth stocks dominate the stock market, making up a much larger share of the broader market than they have historically. This means many investors may be missing out on value stocks, which are companies that are priced lower but have strong fundamentals. In the past, when this gap between growth and value stocks was this wide, value stocks ended up performing better over the next few years. In case the market changes its tide, investors who are too focused on growth stocks could face higher risks. Recently, value stocks have started to show signs of a comeback. However, after trailing growth stocks by almost 10% in 2024, value stocks took the lead in January, with the Morningstar US Value Index rising 4.5%, outperforming the 3.9% gain of the Morningstar US Growth Index. The boost came mainly from healthcare stocks, which jumped 6.8%, and financial services stocks, which surged 6.7%. Among different stock categories, mid-sized growth stocks performed the best, rising 6.1%, followed by small growth stocks at 5.1% and large value stocks at 5%. Looking at history, value stocks have performed better than growth stocks in 46% of months over the past 20 years, showing that the market shifts between favoring one type over the other. Market experts see opportunities in undervalued parts of the market. Ben Inker, a portfolio manager at GMO, is staying cautious as markets hit extreme highs, with Bitcoin topping $100,000 and mega-cap tech stocks driving the broader market's rally. With so much uncertainty in the economic and policy landscape, he remains skeptical of making bets based on long-term predictions. Instead, Inker is focusing on 'deep value' stocks, which are the cheapest 20% of the US market. He sees some of the biggest discounts in that market segment. He is also looking at small-cap stocks in Japan, especially as US stocks trade at record-high premiums compared to global markets. Inker favors the cheaper equal-weighted S&P index as well, which has historically delivered better long-term returns than the standard market cap-weighted version. Let's take a look at some of the best cash-rich undervalued stocks below. For this article, we used the Finviz stock screener to identify cash-rich undervalued stocks. We applied a filter to select companies with P/E ratios under 15. Additionally, we used a current ratio (CR) filter of over 2 to identify stocks with strong current assets. CR is a company's current assets divided by its current liabilities. If the CR is over 1, it means the company has more assets than liabilities, usually because of high cash reserves, receivables, or inventory. After filtering, we manually searched for companies with TTM operating cash flow exceeding $2 billion as of December 31, 2024, and selected 10 stocks with the highest cash reserves. The list below is ranked in ascending order based on TTM operating cash flow. We have also included hedge fund sentiment as of Insider Monkey's Q4 2024. 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 (). An oil rig in action in a vast desert, drilling for natural gas. P/E Ratio as of March 3: 11.28 TTM Operating Cash Flow as of December 31, 2024: $12,143,000,000 Number of Hedge Fund Holders: 62 EOG Resources, Inc. (NYSE:EOG) is a Texas-based company engaged in the exploration, development, production, and sale of crude oil, natural gas liquids, and natural gas. EOG Resources announced on February 28 that it is taking its shale expertise to the Persian Gulf, collaborating with Bahrain's Bapco Energies to develop an onshore tight-gas field. Drilling is set to start in the second half of 2024 once the final approvals are in, but production will not commence until 2026. EOG Resources, Inc. (NYSE:EOG) is one of the best cash rich stocks to watch out for. EOG brought in $6.6 billion in adjusted net income last year, delivering a 25% return on capital. It also returned 98% of its free cash flow to shareholders through dividends and stock buybacks. In 2024, the company invested $6.2 billion in new projects, which helped grow oil production by 3% and total company volume by 8%. EOG Resources, Inc. (NYSE:EOG)'s reserves also increased by 6% to 4.7 billion barrels of oil equivalent, replacing 201% of what was produced, excluding price changes. Driven by this robust performance, the company returned a record $5.3 billion to shareholders, far surpassing its 70% free cash flow return commitment. Insider Monkey's fourth quarter database suggests that 62 hedge funds were bullish on EOG Resources, Inc. (NYSE:EOG), up from 56 funds in the last quarter. Harris Associates was the largest position holder in the company, with 8 million shares worth $989.3 million. Overall EOG ranks 4th on our list of the best cash-rich undervalued stocks to buy. While we acknowledge the potential of EOG as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EOG but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
08-03-2025
- Business
- Yahoo
Is Berkshire Hathaway Inc. (BRK-B) the Best Cash-Rich Undervalued Stock to Invest In?
We recently compiled a list of the . In this article, we are going to take a look at where Berkshire Hathaway Inc. (NYSE:BRK-B) stands against the other cash-rich undervalued stocks. Currently, big tech and high-growth stocks dominate the stock market, making up a much larger share of the broader market than they have historically. This means many investors may be missing out on value stocks, which are companies that are priced lower but have strong fundamentals. In the past, when this gap between growth and value stocks was this wide, value stocks ended up performing better over the next few years. In case the market changes its tide, investors who are too focused on growth stocks could face higher risks. Recently, value stocks have started to show signs of a comeback. However, after trailing growth stocks by almost 10% in 2024, value stocks took the lead in January, with the Morningstar US Value Index rising 4.5%, outperforming the 3.9% gain of the Morningstar US Growth Index. The boost came mainly from healthcare stocks, which jumped 6.8%, and financial services stocks, which surged 6.7%. Among different stock categories, mid-sized growth stocks performed the best, rising 6.1%, followed by small growth stocks at 5.1% and large value stocks at 5%. Looking at history, value stocks have performed better than growth stocks in 46% of months over the past 20 years, showing that the market shifts between favoring one type over the other. Market experts see opportunities in undervalued parts of the market. Ben Inker, a portfolio manager at GMO, is staying cautious as markets hit extreme highs, with Bitcoin topping $100,000 and mega-cap tech stocks driving the broader market's rally. With so much uncertainty in the economic and policy landscape, he remains skeptical of making bets based on long-term predictions. Instead, Inker is focusing on 'deep value' stocks, which are the cheapest 20% of the US market. He sees some of the biggest discounts in that market segment. He is also looking at small-cap stocks in Japan, especially as US stocks trade at record-high premiums compared to global markets. Inker favors the cheaper equal-weighted S&P index as well, which has historically delivered better long-term returns than the standard market cap-weighted version. Let's take a look at some of the best cash-rich undervalued stocks below. For this article, we used the Finviz stock screener to identify cash-rich undervalued stocks. We applied a filter to select companies with P/E ratios under 15. Additionally, we used a current ratio (CR) filter of over 2 to identify stocks with strong current assets. CR is a company's current assets divided by its current liabilities. If the CR is over 1, it means the company has more assets than liabilities, usually because of high cash reserves, receivables, or inventory. After filtering, we manually searched for companies with TTM operating cash flow exceeding $2 billion as of December 31, 2024, and selected 10 stocks with the highest cash reserves. The list below is ranked in ascending order based on TTM operating cash flow. We have also included hedge fund sentiment as of Insider Monkey's Q4 2024. 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 (). A team of insurance professionals in a boardroom overlooking a city skyline. P/E Ratio as of March 3: 12.52 TTM Operating Cash Flow as of December 31, 2024: $30,592,000,000 Number of Hedge Fund Holders: 131 Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the best cash rich stocks to buy, with an impressive $30.6 billion in operating cash flow as of December 31, 2024. Berkshire paid a massive $26.8 billion in taxes in 2024, which is the largest corporate tax payment ever, even more than trillion-dollar tech giants. This accounted for 5% of all corporate taxes collected last year. In his latest investor letter, Buffett urged the US government to utilise the money wisely, help those in need, and keep the financial system stable. Berkshire Hathaway Inc. (NYSE:BRK-B) saw a huge boost in Q4 earnings, with operating profit rising 71% to $14.5 billion, mainly due to a 302% surge in insurance underwriting. Insurance investment income also grew nearly 50%. For the full year, operating earnings grew 27% to $47.4 billion. Meanwhile, the company's cash reserves hit a record $334.2 billion as Warren Buffett continues to hunt for his next major investment. Among the hedge funds tracked by Insider Monkey in Q4, 131 funds were bullish on Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 120 funds in the earlier quarter. Overall BRK-B ranks 2nd on our list of the best cash-rich undervalued stocks to buy. While we acknowledge the potential of BRK-B as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BRK-B but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
08-03-2025
- Business
- Yahoo
Is Halliburton Company (HAL) the Best Cash-Rich Undervalued Stock to Invest In?
We recently compiled a list of the . In this article, we are going to take a look at where Halliburton Company (NYSE:HAL) stands against the other cash-rich undervalued stocks. Currently, big tech and high-growth stocks dominate the stock market, making up a much larger share of the broader market than they have historically. This means many investors may be missing out on value stocks, which are companies that are priced lower but have strong fundamentals. In the past, when this gap between growth and value stocks was this wide, value stocks ended up performing better over the next few years. In case the market changes its tide, investors who are too focused on growth stocks could face higher risks. Recently, value stocks have started to show signs of a comeback. However, after trailing growth stocks by almost 10% in 2024, value stocks took the lead in January, with the Morningstar US Value Index rising 4.5%, outperforming the 3.9% gain of the Morningstar US Growth Index. The boost came mainly from healthcare stocks, which jumped 6.8%, and financial services stocks, which surged 6.7%. Among different stock categories, mid-sized growth stocks performed the best, rising 6.1%, followed by small growth stocks at 5.1% and large value stocks at 5%. Looking at history, value stocks have performed better than growth stocks in 46% of months over the past 20 years, showing that the market shifts between favoring one type over the other. Market experts see opportunities in undervalued parts of the market. Ben Inker, a portfolio manager at GMO, is staying cautious as markets hit extreme highs, with Bitcoin topping $100,000 and mega-cap tech stocks driving the broader market's rally. With so much uncertainty in the economic and policy landscape, he remains skeptical of making bets based on long-term predictions. Instead, Inker is focusing on 'deep value' stocks, which are the cheapest 20% of the US market. He sees some of the biggest discounts in that market segment. He is also looking at small-cap stocks in Japan, especially as US stocks trade at record-high premiums compared to global markets. Inker favors the cheaper equal-weighted S&P index as well, which has historically delivered better long-term returns than the standard market cap-weighted version. Let's take a look at some of the best cash-rich undervalued stocks below. For this article, we used the Finviz stock screener to identify cash-rich undervalued stocks. We applied a filter to select companies with P/E ratios under 15. Additionally, we used a current ratio (CR) filter of over 2 to identify stocks with strong current assets. CR is a company's current assets divided by its current liabilities. If the CR is over 1, it means the company has more assets than liabilities, usually because of high cash reserves, receivables, or inventory. After filtering, we manually searched for companies with TTM operating cash flow exceeding $2 billion as of December 31, 2024, and selected 10 stocks with the highest cash reserves. The list below is ranked in ascending order based on TTM operating cash flow. We have also included hedge fund sentiment as of Insider Monkey's Q4 2024. 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 (). A drilling rig in the desert with an orange sunset in the background. P/E Ratio as of March 3: 9.32 TTM Operating Cash Flow as of December 31, 2024: $3,865,000,000 Number of Hedge Fund Holders: 49 Halliburton Company (NYSE:HAL) is a global energy services company that assists oil and gas companies with operations ranging from well stimulation and cementing to artificial lift and pipeline solutions. On February 26, Halliburton and Sekal AS introduced the world's first fully automated on-bottom drilling system, combining Halliburton's LOGIX automation, Sekal's Drilltronics, and rig automation controls. The technology was successfully used on an Equinor well in Norway, allowing real-time drilling optimization and precise well placement with the push of a button. It is one of the best cash rich stocks to buy. On February 12, 2025, Halliburton Company (NYSE:HAL) declared a $0.17 per share dividend for Q1 2025, payable on March 26 to shareholders on record as of March 5. The company reported $22.9 billion in revenue for 2024. Halliburton Company (NYSE:HAL) brought in $3.9 billion in operating cash flow and $2.6 billion in free cash flow. Investors received a 60% return on free cash flow, with $1 billion spent on stock buybacks and $600 million paid out in dividends. According to Insider Monkey's Q4 data, 49 hedge funds reported owning stakes in Halliburton Company (NYSE:HAL), compared to 38 funds in the previous quarter. Overall HAL ranks 7th on our list of the best cash-rich undervalued stocks to buy. While we acknowledge the potential of HAL as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HAL but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
