Latest news with #Lakos-Bujas
CNBC
4 days ago
- Business
- CNBC
JPMorgan raises its year-end S&P 500 target, but sees little upside left
Strong earnings and a resilient economy amid extreme policy uncertainty this year have uplifted JPMorgan's view on U.S. equities. Head of global markets strategy Dubravko Lakos-Bujas raised his year-end S & P 500 price target to 6,000 from 5,200. The strategist cited an "encouraging fundamental backdrop" that alleviated investors' concerns about tariffs' impact on corporate growth. He added that results such as Nvidia's confirmed that the AI theme and capital spending boom remains strong. "Absent major policy surprises, the path of least resistance is to new highs supported by Tech / AI led strong fundamentals, a steady bid from systematic strategies on improving volatility and momentum signals, and flows from active investors on dips," Lakos-Bujas wrote in a note to clients. .SPX 1Y mountain S & P 500 performance over the past year. Lakos-Bujas sees double-digit S & P 500 earnings expectations for 2026 lifting stocks in the second half of this year. He also highlighted the U.S. Court of International Trade's recent ruling against the Trump administration's tariffs as a potential tailwind for equities. "Going into 2H25, investors should begin to anchor equities to 2026 EPS growth potential ... which is significantly higher and should help support the relative valuation case for U.S. equities," Lakos-Bujas wrote. To be sure, Lakos-Bujas' target implies just 1% upside from Thursday's close of 5,939.30. "Elevated valuation could limit market upside, but it is rarely a sell catalyst on its own, especially if the U.S. continues to deliver stronger growth relative to DM peers and the AI story remains intact," the strategist said. Lakos-Bujas had slashed his original year-end target from 6,500 to 5,200 as investors navigated the throes of the April tariff scare. The S & P 500 at one point traded around 20% below its record high set in February. However, pauses to the steep duties announced by President Donald Trump helped the market recover. The benchmark sits around 3% below its all-time high. Three other strategists featured in the CNBC Market Strategist Survey also raised their forecasts this week: RBC's Lori Calvasina : to 5,730 from 5,550 Deutsche Bank's Binky Chadha : to 6,550 from 6,150 Barclays' Venu Krishna : to 6,050 from 5,900
Yahoo
16-05-2025
- Business
- Yahoo
German Bonds May Be More Attractive Than US, JPM Says
JPMorgan global markets strategy head Dubravko Lakos-Bujas discusses the outlook for European fixed income markets. "I do think that the German bond market, in terms of supply, actually looks quite attractive and maybe in some cases more attractive than sort of the US side," Lakos-Bujas says. He speaks to Bloomberg's Francine Lacqua on the sidelines of the JPMorgan Global Markets Conference in Paris. (Republishes to fix conference name.) 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
Yahoo
05-02-2025
- Automotive
- Yahoo
Why Tesla (TSLA) Shares Are Falling Today
Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) fell 3.6% in the afternoon session after Bloomberg reported that the company's sales (January 2025) fell almost 60% in Germany, compounding its woes in Europe, days after reports revealed similar weaknesses in Sweden and Norway. Data from the German Federal Motor Transport Authority revealed Tesla registered only 1,277 new cars in January 2025, hitting their lowest level since mid-2021, signaling weakening demand. Furthermore, the data indicated a similar decline in France and the UK. On top of that, JP Morgan flagged Tesla as one of the stocks "most at risk" from trade tensions and tariff disputes. Analyst Lakos-Bujas added, "...we expect sudden bouts of volatility followed by recovery ... with high stock dispersion to be an ongoing feature for markets in 2025." The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tesla? Access our full analysis report here, it's free. Tesla's shares are extremely volatile and have had 111 moves greater than 2.5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 2 days ago when the stock dropped 7.1% as the Trump administration's new tariffs (25% on Canadian goods and 10% on Chinese products) shook markets. While similar tariffs were set for Mexico, they have been delayed. But it doesn't help that Canada has already hit back with its levies on U.S. imports. Also, Canada's Former Finance Minister Chrystia Freeland, who is campaigning to replace prime minister Justin Trudeau), called for a 100% tariff on Tesla. President Trump noted in a social media post that Americans might feel the sting: "WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!)." The tariffs were imposed as part of measures to improve the U.S.'s trade gap with the rest of the world and also to tighten border security. The auto industry stands in the crosshairs. Notably, Tesla builds some of its cars with parts from Canada and Mexico. Tariffs could drive up costs, making cars more expensive from the factory to the dealership. Separately, there are reports Tesla is losing ground in Sweden and Norway. According to Reuters, registration numbers for Teslas in Sweden fell 44% in January 2025, while in Norway, they dropped 38% compared to the previous year. Tesla is down 0.2% since the beginning of the year, and at $378.38 per share, it is trading 21.1% below its 52-week high of $479.86 from December 2024. Investors who bought $1,000 worth of Tesla's shares 5 years ago would now be looking at an investment worth $7,726. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
Is NVIDIA Corporation (NVDA) the Best Stock to Buy for High Returns in 2025?
We recently published a list of . In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best stocks to buy for high returns in 2025. On December 17, 2024, J.P. Morgan released its market outlook 2025. The report expects the global economy to continue growing at a robust rate, however a sharp slowdown in China is expected. Regarding the equity market, the firm anticipates depressing trends across stocks, sectors, and themes. Analysts at the firm estimate the S&P 500 to be around 6,500 in 2025 with earnings per share of $270. The head of Global Market Research, Hussain Malik noted that the policies of the United States regarding trade, immigration, and regulatory policy will play a critical role in defining the year's outcome for the country and globally. The report further elaborated on its anticipation of a depressed stock market by highlighting de-coupling central bank policies, uneven progress in disinflation, and ongoing technological innovation. Moreover, increased geopolitical tensions are also likely to add unusual complexity to the global stock market. Despite all this, the firm has bright expectations for the United States. It believes that the country will remain a key driver of growth due to factors such as an expanding business cycle, a robust labor market, increased capital spending related to AI, and active capital markets. On the other hand, Europe is expected to grapple with structural challenges, while emerging markets may face headwinds from persistent high interest rates, a strong US dollar, and trade policy issues. Lakos-Bujas, head of Global Markets Strategy at J.P. Morgan warned that a key risk to their base case involves disinflation stalling or reversing, which could prompt the Federal Reserve to consider interest rate hikes later in 2025 or early 2026. Such developments would necessitate a reassessment of their market outlook. To curate the list of the 10 best stocks to buy for high returns in 2025, we used Insider Monkey's third-quarter hedge funds database. We checked the 25 most widely held stocks by hedge funds for 10-year growth rates from Seeking Alpha and ranked these stocks in ascending order of the number of hedge funds. Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (). A close-up of a colorful high-end graphics card being plugged in to a gaming computer. NVIDIA Corporation (NASDAQ:NVDA) is one of the key companies leading the development of AI with its semiconductors and highly powered AI GPUs. Its latest Blackwell GPU series, which is the successor to the H100 and H200 GPUs, is said to be the world's most powerful chip for AI workloads. On January 2, BofA maintained a Buy rating on NVDA, naming the stock to be one of their top picks for 2025. Vivek Arya, who is an analyst at BofA kept his price target of $190 stating that he believes the company's project valuations can grow up to $4 billion in the near future. NVIDIA (NASDAQ:NVDA) in its fiscal fourth quarter of 2024 grew its revenue by 265% year-over-year to $22.1 billion, which easily surpassed the $20 billion outlook. Analysts expect that NVIDIA Corporation (NASDAQ:NVDA) can be amongst the top gainers in 2025, particularly due to the recent announcement of a $500 billion AI project by newly inaugurated President Donald Trump. The President along with Oracle, SoftBank, and OpenAI has announced this project to assure the United States take leadership in this technology. This could be a potential opportunity for the company as OpenAI in its statements has named NVIDIA (NASDAQ:NVDA) to be one of the main technology partners for the project. It ranks 4th on our list of best stocks to buy for high returns in 2025. Infuse Asset Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its : 'We do still own some NVIDIA Corporation (NASDAQ:NVDA) as the forward multiple isn't egregious and it powers over 90% of AI workloads. This company is only becoming increasingly important though the hyperscalers are actively trying to save money through their own ASIC programs. The moat CUDA provides has been underestimated time and time again. While I don't think Nvidia has quite the upside as some of the other companies in the portfolio, it has a product that the best companies in the world literally can't get enough of.' Overall, NVDA ranks 4th on our list of best stocks to buy for high returns in 2025. While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that 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 NVDA but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
Is Amazon.com (AMZN) the Best Stock to Buy for High Returns in 2025?
We recently published a list of . In this article, we are going to take a look at where Inc. (NASDAQ:AMZN) stands against other best stocks to buy for high returns in 2025. On December 17, 2024, J.P. Morgan released its market outlook 2025. The report expects the global economy to continue growing at a robust rate, however a sharp slowdown in China is expected. Regarding the equity market, the firm anticipates depressing trends across stocks, sectors, and themes. Analysts at the firm estimate the S&P 500 to be around 6,500 in 2025 with earnings per share of $270. The head of Global Market Research, Hussain Malik noted that the policies of the United States regarding trade, immigration, and regulatory policy will play a critical role in defining the year's outcome for the country and globally. The report further elaborated on its anticipation of a depressed stock market by highlighting de-coupling central bank policies, uneven progress in disinflation, and ongoing technological innovation. Moreover, increased geopolitical tensions are also likely to add unusual complexity to the global stock market. Despite all this, the firm has bright expectations for the United States. It believes that the country will remain a key driver of growth due to factors such as an expanding business cycle, a robust labor market, increased capital spending related to AI, and active capital markets. On the other hand, Europe is expected to grapple with structural challenges, while emerging markets may face headwinds from persistent high interest rates, a strong US dollar, and trade policy issues. Lakos-Bujas, head of Global Markets Strategy at J.P. Morgan warned that a key risk to their base case involves disinflation stalling or reversing, which could prompt the Federal Reserve to consider interest rate hikes later in 2025 or early 2026. Such developments would necessitate a reassessment of their market outlook. To curate the list of the 10 best stocks to buy for high returns in 2025, we used Insider Monkey's third-quarter hedge funds database. We checked the 25 most widely held stocks by hedge funds for 10-year growth rates from Seeking Alpha and ranked these stocks in ascending order of the number of hedge funds. Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (). A customer entering an internet retail store, illustrating the convenience of online shopping. Inc. (NASDAQ:AMZN) is a major e-commerce, streaming, and cloud technology giant that ranks as the best stock to buy for high returns. The company has made significant developments with regard to artificial intelligence, including AWS cloud partnerships and Tranium to strengthen its position in AI development. On January 23, Scotiabank raised its price target for the stock from $246 to $306, while keeping its Outperform rating. The firm believes consistent demand for large-cap stocks and AMZN is one of its top picks for 2025. During the fiscal third quarter of 2024, Inc. (NASDAQ:AMZN) generated $158.9 billion in revenue, up 11% year-over-year. Management noted that its e-commerce segment grew its revenue by 60% during that time driven by the incorporation of AI features. Moreover, the AWS segment took the lead in delivering profitability as the segment added $10.4 billion to the overall operating income of $17.4 billion. Inc. (NASDAQ:AMZN) is the best stock to buy for high returns in 2025. Vulcan Value Partners stated the following regarding Inc. (NASDAQ:AMZN) in its : 'There were five material contributors to performance: Inc. (NASDAQ:AMZN), Salesforce Inc., Live Nation Entertainment Inc., Carlyle Group Inc., and Alphabet Inc. is a dominant, world class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. The market is beginning to reward the company for its untapped margin opportunity in the core retail business as its consolidated operating margins expanded.' Overall, AMZN ranks 1st on our list of best stocks to buy for high returns in 2025. While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that 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 AMZN but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
