Latest news with #Kahyaoglu
CNBC
14 hours ago
- Business
- CNBC
Defense stocks to buy as spending bill moves through Congress; trading small caps
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in the oil and natural gas space. They are also eyeing a tailwind for defense stocks in President Donald Trump's spending bill. Worldwide Exchange Pick: EOG Resources Patrick Fruzzetti of Rose Advisors said EOG Resources is a good buy despite the decline in oil prices. "It's a premium driller with a great balance sheet, good assets they have been in West Texas for a long time, they are expanding in Utica (Ohio)," said Fruzzetti. "With the environment we have been in geopolitically it's always worth having some exposure oil and gas in your portfolio." EOG Resources shares are down more than 1% in 2025. The stock pays a more than 3% dividend. Investing in defense Sheila Kahyaoglu of Jefferies said she is surprised that defense stocks haven't moved higher during the escalation of the Israel-Iran conflicts and U.S. strikes. However she said a new tailwind for the space for legacy players like RTX , Lockheed Martin and Northrop Grumman could come from Congress in the "Big Beautiful Bill," with defense spending proposed to increase by $150 billion, or roughly 13%, year over year. "If (President Trump) gets the $150 billion approved, maybe you could say it's all used in fiscal 2026, and it's clear he wants to be supportive of his 'Golden Dome' project which would literally be half of that $150 billion, $75 billion. A golden dome would be a beneficiary for existing systems because he wants to deploy it in three years," said Kahyaoglu. Two other stocks Kahyaoglu said are getting recent investor attention Israeli defense contractor Elbit Systems and Kratos Defense & Security Solutions . Investing in industrials Keith Lerner of Truist sees more upside in industrials that have been the leading sector year to date. "I think Industrials lead by defense continues to be something that will have a big," Lerner said. He added: "It is also an indirect AI play with things like cooling as an example." Lerner said FedEx earnings could have an impact on sentiment within the sector and advises investing through a diversified ETF rather than trying to find individual winners with the current trade and geopolitical uncertainty. Outlook for small caps Daniel Morris of BNP Paribas sees gains ahead the Russell 2000 . "If you increase your allocation to the S & P 500 you are implicitly betting more on that tech call," Morris said. "The appeal of small caps then becomes that you can increase your exposure to U.S. growth without increasing your exposure to megacap tech. We see it as diversified access to US growth." The Russell 2000 is more than 13% away from it's 52-week high, while the S & P 500 is 2% from a new all-time high.
Yahoo
29-05-2025
- Business
- Yahoo
Why Heico Stock Eked out a Stock Market Beat on Thursday
Several analysts raised their price targets on the shares. This followed a very encouraging fiscal second quarter reported by the veteran electrical components maker. 10 stocks we like better than Heico › Heico (NYSE: HEI), a manufacturer of electrical components for a variety of industries including aerospace, was the subject of several positive analyst updates on Thursday. This pushed the company's stock higher by just under 2% on the day, which easily exceeded the 0.3% rise of the benchmark S&P 500 index. Those updates were published in the wake of Heico's rather encouraging earnings report for the second quarter of fiscal 2025, unveiled after market close on Tuesday. The quarter saw the company post a new record net sales figure, not to mention double-digit increases in key fundamentals. It also beat the consensus analyst estimates on both the top and bottom lines. On Friday, several of those analysts saw fit to raise their Heico price targets. Among these was Jefferies' Sheila Kahyaoglu, who now feels the stock is worth $340 per share -- up from her previous fair value assessment of $320. She also believes it's still a buy, as she maintained her existing recommendation. According to reports, Kahyaoglu waxed bullish about the company's solid sales growth figures, and its impressive margin expansion. She pointed out that the critical flight support group division was largely responsible for this, with its 14% year-over-year growth. Peer analysts also sounded positive notes on other aspects of Heico's operations. Vertical Research Partners' Robert Stallard, in lifting his price target on the stock to $320 per share from $265 and maintaining his buy recommendation, complimented the mergers and acquisitions strategy that has helped it bulk up the fundamentals, according to reports. With demand for aircraft robust and Heico well positioned to take advantage of this, I'd agree with those pundits that the company's stock is a buy. It is fairly expensive on certain valuations, however, so would-be investors need to take that into consideration. Before you buy stock in Heico, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Heico 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% 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 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool recommends Heico. The Motley Fool has a disclosure policy. Why Heico Stock Eked out a Stock Market Beat on Thursday was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
Jefferies upgrades Air Canada on improved execution and earnings visibility
-- Jefferies has upgraded Air Canada (TSX:AC) to Hold from Underperform, citing better-than-expected first-quarter execution and improved visibility into cost control and earnings stability. The investment bank also lifted its price target on the stock to C$18 from C$12, suggesting a more balanced risk-reward profile heading into 2025. 'We upgrade to Hold and C$18 PT at 4X EBITDA and 7.5X P/E,' analyst Sheila Kahyaoglu wrote in a report published Monday. 'JEFe '25 EBITDA of $3.48BB is near the top-end of the reduced $3.2–3.6BB guide and sits comfortably within the original $3.4–3.8BB range.' Air Canada's Q1 results topped expectations, despite trimming its 2025 EBITDA guidance by 6% to C$3.2–C$3.6 billion due to shifting demand and inflationary pressures. Jefferies' 2025 EBITDA forecast of C$3.48 billion remains above the midpoint, reflecting confidence in management's strategy and the positive effects of a C$150 million cost-reduction program. The analyst noted that domestic and international bookings remain relatively stable despite weaker U.S. transborder demand, where bookings are down in the low teens for the next six months. Nonetheless, Air Canada reallocated capacity away from the U.S. and into other geographic areas, including ramping up its high-margin Atlantic routes and expanding service in the Pacific region. Jefferies sees some limitations to Air Canada's long-term operating leverage, pointing to structurally higher costs in Canada and significant capital expenditures through 2028. Still, Kahyaoglu stressed the importance of strategic flexibility, noting, 'The diversified network (no single entity >1/3rd of ASMs) is a positive when demand signals change as rapidly as they have of late.' Air Canada shares have rebounded more than 30% in recent months, trimming their year-to-date decline to around 15%. 'Shares already logged 30%+ rally… but Q1 execution gives confidence in AC's renewed guide,' Kahyaoglu wrote. Jefferies' shift in tone reflects broader investor sentiment that leans toward cautious optimism amid sector volatility. While Air Canada faces structural cost challenges and a complex macro backdrop, disciplined execution and network nimbleness are helping the company chart a more stable course for earnings and shareholder returns. Related articles Jefferies upgrades Air Canada on improved execution and earnings visibility Tesla valuation problem 'to get worse before it gets better': Morgan Stanley Bath & Body Works shares fall: Appoints new CEO, pre-announces Q1 results 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
Globe and Mail
07-04-2025
- Business
- Globe and Mail
Jefferies downgrades Delta Air Lines (DAL) to a Hold
Delta Air Lines (DAL – Research Report) received a Hold rating and price target from Jefferies analyst Sheila Kahyaoglu today. The company's shares closed last Friday at $37.25. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. According to TipRanks, Kahyaoglu is a 5-star analyst with an average return of 7.5% and a 53.94% success rate. Kahyaoglu covers the Industrials sector, focusing on stocks such as Boeing, GE Aerospace, and American Airlines. Currently, the analyst consensus on Delta Air Lines is a Strong Buy with an average price target of $68.73, representing an 84.51% upside. In a report released on April 4, DBS also downgraded the stock to a Hold with a $45.00 price target. The company has a one-year high of $69.98 and a one-year low of $34.74. Currently, Delta Air Lines has an average volume of 10.74M. Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DAL in relation to earlier this year. Most recently, in February 2025, Rahul D Samant, the EVP & Chief Info Officer of DAL sold 38,023.00 shares for a total of $2,467,312.47.
