Latest news with #JoshBrown
CNBC
a day ago
- Business
- CNBC
Best Stocks: This momentum play seeing huge investor accumulation is on the verge of another breakout
(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh here - The S & P 500 index has fought all the way to breakeven for 2025, but there's one investment style that's blowing the doors off the rest of the stock market. If you guessed "momentum" you got it right. What's probably very frustrating for all the value investors, the minimum volatility investors, the high dividend investors and other professionals is that momentum was also the best performing factor in 2024, up more than 32% last year. Momentum was the top performing factor in 2015, 2017 and 2020. It was the second best in 2018 and has compounded at 12.7% returns for the last ten years. What does this mean for the portfolio manager who eschews the momentum factor for some other style? One more year of apologies to the end investor who wonders why everyone else is having more fun than he is. Markets are aggravating like that sometimes. On paper, a year with this much volatility and uncertainty might make the casual observer surmise that defense would be the move and momentum would be too risky. If only it were that simple. It turns out that some of the most exciting momentum stocks of 2025 are also among the names that would also be considered traditionally defensive. Take JPMorgan Chase and Walmart , for example — they're not often associated with the momentum trade, and yet they are the number two and three largest holdings in the most popular momentum stock index ETF at the moment. Go figure. For this week's update, Sean took a look at some of the names that appear on both our Best Stocks in the Market list as well as the Momentum factor index to see where we're overlapping. Right now we're overlapping a lot. There are over 40 names on the Best Stocks list that are also momentum winners this year. Take, for example, this absolute juggernaut of a company — Visa (VISA) — currently a constituent of both: Look at that springboard off the 200-day during the trade war panic of early April, you couldn't have asked for a better sign of accumulation. Visa is a Best Stock right now that looks to be on the verge of another breakout above its February all-time high. It's been a big winner ever since it was added to the Dow Jones Industrial Average back in 2013. Both long- and short-term players have been rewarded. I'll let Sean take it from here on the momentum factor and some leaderboards for the Best Stocks list. Why momentum investing works Sean — Factors are characteristics or attributes of securities that help explain their risk and return. You can slice and dice these attributes anyway you want to create a "factor," but the most popular and well-researched ones include value, momentum, size, quality, yield and volatility. These factors are used in both academic research and practical portfolio construction to identify patterns in asset performance. One of the most powerful drivers of stock market returns historically has been momentum. Momentum is a factor based on the idea that assets that have performed well in the recent past tend to continue performing into the future, and vice versa for underperformers. It's rooted in behavioral finance—investors often chase winners and avoid losers, creating a self-reinforcing cycle that pushes trending assets further in the same direction. Momentum strategies typically rank stocks by recent returns (usually over 6 to 12 months). The momentum factor fits well with our analysis as it adheres to the same central theme that technical analysis does - price is the final arbiter of what is right or wrong . Whatever is happening in the world right now has been priced in or is getting priced in as you read this article. Markets are far from efficient every moment of the day, but the current price reflects what buyers and sellers believe is fair. When a stock's price is going up, there's a good reason for it (unless you're a meme stock). Those reasons tend to be bullish for longer than people expect. An overwhelming majority of buyers in a stock is not a bad thing! It means the underlying fundamentals of the stock are set to improve, and the market is recognizing that reality! Our list of stocks is built around this idea - higher prices are telling us a story. Through all of the negative headlines, sentiment, and gloom thus far in 2025, momentum is surprisingly the best-performing factor YTD: Momentum is also notoriously volatile. It can experience sharp reversals, especially during market regime shifts, similar to what we experienced in April. Notice above, momentum was the second worst performer at the market bottom in early April. Below is the iShares MSCI USA Momentum Factor ETF (MTUM) , one of the largest momentum ETFs out there: It's outperforming the unassailable S & P 500 by 11% this year. And that's not a one-off occurrence. It's outperforming the S & P 500 on an annualized basis over the past year, 3 years, 10 years, and since inception (it's underperforming over the past 5 years on an annualized basis). There are currently 43 stocks on our list that also appear in the MTUM ETF. A couple of the big names that appear on our list and the MTUM ETF: AVGO , V , NFLX , COST , and PLTR . This year, we went from a majority of utility stocks on the list, to now a majority of industrials and tech. The dynamic nature of momentum is what makes it a high-performing strategy. It is rules-based, systematic, and adaptive. By relying on price trends rather than forecasts, momentum captures the strength of what's working now, for fundamental reasons. Here's where our list lands in terms of sector and industry exposure, as well as the 5 names with the highest RSI readings: Inside the Best Stocks As of 6/2/2025 morning, there are 112 names on The Best Stocks in the Market list Top Sector Ranking: Top Industries: Top 5 Best Stocks by Relative Strength: DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
Yahoo
3 days ago
- Business
- Yahoo
Aussie traveller faces $6,000 problem after 'silent caravan killer' emerges on trip
An Aussie traveller is being forced to overhaul his entire caravan after a $6,000 problem emerged just two years after he purchased it. Chris Ferlazzo was on a trip when he noticed a 'small leak' which he quickly 'taped up'. However, when he returned home the Queenslander soon learned the incoming water was a sign of a much bigger problem. 'We had a caravan repairman out to look at the rest and advise,' he told Yahoo News. 'This is where we found the J mould issue.' Chris said 'not a single bit of silicone' was found under the van's J mould — a trim used to seal and protect the edges of the exterior panels. 'The whole J mould will have to come off, cleaned all surfaces, siliconed and reinstalled. This is both sides, roof, sides and bottom,' he explained. 'I also have to remove my door as there is no silicone behind it as well.' The keen traveller said he was quoted around $6,000 to have it repaired, so he's decided to do it himself. 'Around $600 of materials and a few days work. Haven't started yet.' Leaks in J moulds are often referred to as the 'silent caravan killer' and can cost Aussies a fortune. It's 'one of the biggest problems in the RV industry,' Victoria-based specialist Josh Brown told Yahoo earlier this year. Given their name due to the shape they create, cracks in the seals are a 'serious threat' to a caravan's longevity and often become a 'costly disaster', he said. 'We call them silent caravan killers because you don't see water coming in through that area but it slowly seeps into the wall cavity and then you see water damage, and by that stage the caravan's destroyed,' the owner of Leak Tight RV's explained. A 'nice underseal' of silicone is a vital step in the process of applying a J mould, Brown said. Chris has encountered similar issues with a previous van, 'but it had more silicone than this one'. However, the Queenslander admitted he wasn't entirely surprised by the repairer's discovery of the 'all too common' problem. 'It's expected with the lack of quality in the industry,' Chris said, adding there's 'too much focus on quantity over quality'. 'There are no legal standards in the industry. They could use no silicone anywhere and it's not illegal.' 💦 Warning over 'silent caravan killer' costing Aussie travellers $10,000 🚐 Caravan driver reveals life-saving item after outback mishap 🏕️ Caravan couple blast 'selfish' act creating major camping issue in Australia In February, an anonymous industry insider who contacted Yahoo said 'the caravan manufacturing and sales industry is extremely poorly regulated'. 'Caravans are being supplied brand new with inadequate tyres. Weights specified are often incorrectly determined. Specified minimum towball weights are often too low,' they said. 'GTM [Gross Trailer Mass] limits are sometimes incorrectly determined and sales people give very poor, uninformed advice such as only considering caravan ATM [Aggregate Trailer Mass] and vehicle towing capacity. They ignore tow ball limits, axle weights and much more. "I can only assume this is done in an effort to gain sales.' Do you have a story tip? Email: newsroomau@ You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.
CNBC
5 days ago
- Business
- CNBC
Josh Brown says he's not sure if Nike can ever turn it around
Household brand Nike is not setting itself up for a successful turnaround, according to Josh Brown, CEO of Ritholtz Wealth Management and CNBC PRO contributor . The widely followed investor believes that the iconic footwear brand isn't keeping up with the fierce competition as its celebrity spokespeople age out of popularity. The stock has fallen another 19% this year following a 30% loss in 2024. "The superstars that are all aging. LeBron James is in his 40s. Michael Jordan is 30 years retired," Brown said on CNBC's " Halftime Report ." "I don't even know what we do with something like Nike here. It's just a falling knife. It's a really tough one." In late March, Nike said it expected its sales to decline in the fiscal fourth quarter to be at the "low end" of the "mid-teens range," far worse than analysts expected. The company said its guidance is based on its ongoing restructuring efforts, plus tariffs and sliding consumer confidence. NKE 5Y mountain Nike, 5 years Nike did beat Wall Street's expectations in its fiscal third quarter, however. "This is a stock that is effectively sitting on an eight year low. It keeps making lower lows even when they have a 'better than expected quarter,' within a week, stocks down," Brown said. Nike said last week it will raise prices on a wide range of footwear , apparel and equipment as the retail industry braces for tariffs to hit its profits, The investor said Nike has been getting by through selling staple sneakers like Air Force Ones and Jordans, but that's not enough to beat competition. "This is the same thing they've been doing," Brown said. "You've got these other brands that have come along. They don't have meaningful market share, but they're forcing Nike to fight defensively in key markets, like running." All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
CNBC
5 days ago
- Business
- CNBC
Josh Brown's Best Stock: Darden
Josh Brown, CEO of Ritholtz Wealth Management, joins CNBC's "Halftime Report" to explain why he's adding Darden to his 'Best Stocks' in the market.
CNBC
5 days ago
- Business
- CNBC
Best stocks: Why this dining stock is hitting highs, even though Josh Brown never eats at Olive Garden
(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh here — One of the things I've learned to do over the years is to stop thinking about investment opportunities purely through the lens of my own taste or experiences. I may not always be representative of the attitudes and desires of the bulk of the population. Nowhere is this more true than when it comes to consumer discretionary stocks and especially within the restaurant group. Darden Restaurants (DRI) owns eleven major dining brands, including the Capital Grille, Ruth's Chris, Yard House, Eddie V's, Longhorn Steakhouse and Seasons 52. Most people know Darden as the former owner of the Red Lobster chain (no longer part of the company) and the current owner of their flagship chain, The Olive Garden. I live in Nassau County, Long Island, home to the highest concentration of incredible Italian restaurants anywhere in America outside of Brooklyn and Manhattan. I'm a fifteen minute drive away from Cippolini in Manhasset, Il Mulino and 388 in Roslyn, Chris and Tony's in Syosset or, if I want to play a home game, Matteo's or Bella Notte in Bellmore. Suffice it to say, I'm not ever eating at an Olive Garden. But most people don't live where I live or have the same choices that I have. Most people don't even know the difference or what they're missing. For most people, The Olive Garden is a good night out, close enough to home, and at a reasonable price. That's probably why the stock price looks like this with the company hitting our Best Stocks in the Market list this week: They do a great job serving their customers and maintaining the chain's brand equity in a race-to-the-bottom sector where most of their competitors are relying on gimmicks and discounts. Last year, Olive Garden did $3.83 billion in sales earning over $800 million in profit for the company. Darden's systemwide sales are projected to top $12.1 billion this year, with a juicy 2.6% dividend, an authorized stock buyback and a healthy earnings per share number of around $9.50. I also want to say that if you find yourself near a shopping mall or a strange downtown area and you're not 100% sure where to go for lunch or dinner, Capital Grille will never let you down. Get the NY Strip with the au poivre sauce or the ribeye with the cajun rub and it'll be a "lights out" experience for you. You can't go wrong. Fortunately, for the shareholders of Darden, my opinions about their other chains don't mean anything. Their audience of diners are voting with their wallets and the share price is reflecting this. Sean's going to go a little deeper into the technicals and fundamentals while I figure out what's for lunch. Best Stock Spotlight: Darden (DRI) On the list since: 5/27/2025 Sean: Darden is the largest restaurant operator in the U.S., representing 3% to 4% market share — this comes out to about 2,000 company-operated restaurants in the U.S., according to YCharts. Olive Garden represents 44% of the company's revenue, Longhorn Steakhouse is 25% of revenue, fine dining is 11% of revenue, and the rest of the brands make up the last 20%. This is a geographically and economically diversified restaurant chain. It caters to most people along the income spectrum, which is a key diversifier for a restaurant business. Darden has improved segment profit margins across its major brands. Olive Garden's segment profit margin increased from 22.5% to 23.0% YoY in the latest quarter, driven from lower costs of goods sold. A number of brands are seeing positive sales and cost efficiency savings. Leaning into the company's growth capabilities, DRI rolled out its first-party delivery service through various partnerships which has expanded sales channels and improved guest experience, and these improvements are showing up on the top and bottom lines. Over the past 5 years, DRI has compounded revenue at a 6% annual clip. More impressively, they have grown EPS at a 12% clip annually during that same period, and the growth doesn't stop there. EPS is expected to grow 9% annually over the next two years. Darden's long-term chart is up and to the right. This stock has bounced off its 200-day moving average only twice on a weekly basis, going back 5 years: And this year, it's stuck especially close to its 50 day moving average (see one year chart in Josh's commentary). DRI has a 63 Relative Strength Index— not too hot, not too cold. It's about 6% above its 50-day moving average and 19% above its 200-day moving average, solidly in an uptrend which is what we like to see. It's hitting new 52 week highs and all-time highs in what has been a challenging macro environment. Risk Management Josh: Traders want to eyeball the level just below $200 for a change in the short-term trend. That neatly coincides with where the 50-day moving average is keying off of. Investors can use $180 as their line in the sand. Darden reports before the open on Friday, June 20. On each of the last four earnings reports, investors bought the news that day. Good luck and have a great weekend. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
