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CNBC
29-07-2025
- Business
- CNBC
These 'steady compounders' have delivered superior earnings growth for the past decade, Bank of America says
A slate of companies that have posted "consistent and superior" earnings growth over the past 10 years could be poised for strong performances and are worth watching, according to Bank of America. "Since data began in 1998, the Global Steady Compounders have annualized 5.2% outperformance versus the MSCI AC World Index and have outperformed in more months than most strategies we monitor," strategist Nigel Tupper wrote in a Tuesday note. "Stocks screening as Steady Compounders tend to outperform for extended periods." There are circumstances in which "steady compounders" don't fare well. Tupper wrote that the names tend to underperform when bond yields rise with inflation and in "significant" risk-on market periods, given that the stocks reflect earnings stability. The strategist screened for stocks that have an average score of above 95 out of 100 based on 10-year earnings growth, "stable" earnings growth, the stock's two-year earnings per share growth forecast, earnings revisions and its 12-month return. The current earnings season has been solid thus far, which has helped send the market to new highs . Of the 199 S & P 500 companies that have reported earnings, nearly 82% have beaten expectations, per FactSet. Here are some of the names that popped up in the U.S. "steady compounders" screen. Global payments technology company Visa was among the names tied for the highest score on the list, with a score of 100 in the steady compounders rank. Shares have outperformed the S & P 500 in 2025, rising nearly 12%, versus the broad market index's roughly 8% gain during the period. Visa is scheduled to report its quarterly results for the fiscal third quarter after the bell Tuesday. Analysts surveyed by LSEG are expecting the company to post double-digit-percentage earnings and revenue growth compared to the prior-year period. Most analysts on Wall Street are bullish on Visa, as 32 out of 40 total analysts have a strong buy or buy rating on the name, per LSEG data. Microsoft , which reports after the bell on Wednesday, had a score of 100 as well. Analysts expect the "Magnificent Seven" company to post around 14% earnings and revenue growth year over year. The stock has similarly outpaced the broader market, seeing a meaningful advance in 2025 of more than 21%. Like Visa, a majority of the Street is optimistic on the stock's trajectory over the next several months, with 56 among the 62 analysts covering it having a strong buy or buy rating. Financial technology platform Intuit also made the cut at 100 in the steady compounders rank. The stock has soared more than 27% in 2025 and around 35% over the past six months, outperforming the broader market. The company is slated to post its earnings results in late August.
Yahoo
17-07-2025
- Business
- Yahoo
Here's Why CDW Corporation (CDW) Declined in Q2
Cooper Investors, an investment management firm, released its 'Cooper Investors Global Equities Fund (Unhedged)' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 5.21% in the second quarter, compared to a 6.05% return for the MSCI AC World Index Net Divs in Australian benchmark. The portfolio returned 24.4% for the financial year compared to 18.4% return for the benchmark. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Cooper Investors Global Equities Fund highlighted stocks such as CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions provider. The one-month return of CDW Corporation (NASDAQ:CDW) was 3.37%, and its shares lost 24.81% of their value over the last 52 weeks. On July 16, 2025, CDW Corporation (NASDAQ:CDW) stock closed at $175.73 per share with a market capitalization of $23.141 billion. Cooper Investors Global Equities Fund stated the following regarding CDW Corporation (NASDAQ:CDW) in its second quarter 2025 investor letter: CDW is the largest IT reseller in North America. It effectively serves as an outsourced sales and marketing provider for hardware and software vendors, and an extension of its customer's IT team, who rely on CDW's expertise. Operating trends for the business have been persistently weak as IT hardware spending, which accounts for roughly 50% of its gross profit, has been in a downturn. CDW's customer base, which skews smaller, has also had to deal with higher interest rates and digesting IT spend from the COVID period. We exited the investment in CDW earlier in the year. An IT Executive reviewing blueprints and schematics for a hardware solution. CDW Corporation (NASDAQ:CDW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the first quarter, which was 46 in the previous quarter. In the first quarter, CDW Corporation (NASDAQ:CDW) reported net sales of $5.2 billion, up 8% on an average daily sales basis. While we acknowledge the potential of CDW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered CDW Corporation (NASDAQ:CDW) and shared Oakmark Equity and Income Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. 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
Malaysian Reserve
21-06-2025
- Business
- Malaysian Reserve
A new world order is here. Is your portfolio ready?
Global shifts are challenging US market dominance, putting diversification back in play by IFAST RESEARCH TEAM OVER the period from 1994 to 2024, US equities have consistently outperformed their international counterparts. For many young investors, it's hard to recall a time when the US did not dominate global markets. As a result, global diversification has long been a losing strategy for most investors. Not this year. The 'Liberation Day' market crash sparked by Trump's tariffs has coincided with rallies in other global markets, including Europe and China. While the S&P 500 recovered most of the losses year-to-date, the MSCI AC World ex-US Index is up more over the same period. While periods of underperformance by the US are not unusual, the gap this year has been particularly pronounced. A New World Order is Taking Shape For decades, there has been no bigger winner on the global stage than the US market, with its stellar performance over the years leading to an approximate 63.7% weighting in the MSCI AC World Index (as of 30 April 2025), up from 43.3% back in 2011. And rightfully so. Investors were drawn to America's exceptionalism: Its technological dominance, deep and liquid financial markets, leadership in free trade, willingness to underwriting global security and a government historically seen as a wise steward of the economy. However, president Trump's erratic policies — including his on-again, off-again tariff announcements and escalating trade tensions with China — along with his transactional approach to diplomacy, suggest a significant shift in America's position on the world stage. This has prompted the rest of the world to diversify trade partners, forge new alliances and pursue long-delayed economic reforms to boost growth and economic resilience. The European Union (EU), for instance, has launched a charm offensive to diversify its trade alliances in Asia and beyond. The bloc has resumed long-stalled negotiations with several countries, including India, Malaysia and Thailand. The clearest sign of the EU's renewed urgency is its revived deal with The Southern Common Market (MERCOSUR), a South American trade bloc that includes Brazil and Argentina. After 25 years of delay, an agreement was finally reached in December. While major European countries such as France and Poland remain opposed, Trump's tariffs could push them towards ratification. Austria, a staunch critic of the deal, has already abandoned its long-standing resistance to the trade agreement. Furthermore, with the US now stepping back from European security, the continent has significantly ramped up its defence spending. Even German lawmakers have voted to loosen the purse strings, allowing for a huge increase in defence and infrastructure investment — a seismic shift for a country traditionally known for its pacifism and fiscal restraint. The recently concluded UK-EU deal has also drawn a line under Brexit, signalling the start of a much closer relationship. Changes are Afoot in China Five years ago, regulators in China launched a sweeping crackdown on technology companies, casting a chill over the private sector. Now, the mood is shifting. Amid China's economic challenges, the government has recognised that revitalising the private sector is crucial to achieving an economy recovery — a task made even more urgent by Trump's tariff war. President Xi Jinping's handshake with Jack Ma — widely seen as the face of China's private sector but sidelined by authorities since the crackdown — at a symposium this year is the surest signal that the party wants the private sector to thrive again. China has also intensified its efforts to steer the economy toward a consumption-led growth model. A raft of stimulus measures, coupled with a revival in consumer and business confidence, is laying the groundwork for a sustained recovery. The government's strategic focus on artificial intelligence (AI) is also providing new momentum for tech leaders. Meanwhile, the recent revival of China's economic dialogues with Japan and South Korea — both of which have aligned more closely to the US in recent years — suggests that regional powers are reassessing their relationships in response to Trump's tariff-induced uncertainty. At the same time, the economic transformation in Japan continues, with inflation, wage increases and interest rate hikes all becoming entrenched. A virtuous cycle of rising wages and prices will stimulate consumption and capital expenditures, opening up a pathway for stronger economic growth in the longer term. Besides, Japan has shown that it can and will step up to provide international economic leadership. In the absence of the US, Japan has picked up the mantle of leadership in the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). As the US retreats from its traditional role as champion of free trade, Japan will likely step up to fill the void and provide trade leadership together with other open-market allies. As a new world order takes shape, the global economy likely to become more balanced, with Europe and Asia shouldering more responsibilities for driving growth and providing international leadership. Against this backdrop, diversification has taken on added importance in our portfolios. An Unprecedented Level of Uncertainty Persists Another reason for diversification: A great deal of uncertainty persists. Start with the tariffs. In just a matter of days, Trump's Liberation Day tariffs have injected the global economy with extraordinary levels of volatility and uncertainty. Trade decisions — along with a slew of other major policy decisions — are now made on Truth Social, often catching even his own advisors off guard. While the tariffs have since been paused, they have not been cancelled. The outcome of ongoing trade negotiations remains uncertain and there's a possibility that the punishingly high tariff rates could be reinstated once the deadline passes. The situation looks increasingly fragile. As if that weren't enough, the legal wrangling over the tariffs have added yet another layer of uncertainty. Most recently, a US trade court blocked the tariffs, ruling that Trump had overstepped his authority — only for them to be reinstated a day later, pending the appeal process. Trade talks will now be complicated by doubts over the administration's authority to follow through on its threats. Rather than offering relief, the development has introduced new complications at the worst possible time. Besides, even if trade deals are struck before the deadline, there's no guarantee they will hold. Given the unpredictable — and often arbitrary — nature of Trump's decision-making, he could very well renege on these deals. With no real clarity ahead, U.S. businesses are faced with an unprecedented level of uncertainty, which has been further compounded by other factors. Lower Market Correlations Help Enhance Diversification As a risk-mitigation strategy, diversification only reduces volatility if the markets involved have low or negative correlations. If all markets move in lockstep, it doesn't matter how many geographic regions you invest — diversification won't reduce risk. This has certainly been the case over the past two decades, as correlations between US and non-US stocks have risen significantly. In other words, most international markets have moved in tandem with the broader US market. To conclude, we're not suggesting an end to US exceptionalism. The US remains the largest and most liquid market in the world. It is also home to many high-quality companies that are dominant in the digital economy and semiconductor space. While it might be easy to boycott a company like Tesla Inc due to the availability of alternatives, it's much harder to avoid companies like Google LLC or Nvidia Corp. Therefore, maintaining exposure to the US remains important. However, for investors who already have a substantial US allocation, a global ex-US exchange-traded fund (ETF) can provide substantial diversification benefits. The views expressed are of the research team and do not necessarily reflect the stand of the newspaper's owners and editorial board. This article first appeared in The Malaysian Reserve weekly print edition
Economic Times
14-06-2025
- Business
- Economic Times
Gold in a healthy consolidation period, says Chris Wood
Gold prices have risen by 85% since the start of 2022 while the MSCI AC World Index is up only 19% over the same period, according to the note. Synopsis Jefferies' Christopher Wood notes gold's consolidation above $3,000. He maintains high gold allocation in his pension fund. Western gold ETF flows are light despite gold's outperformance since 2022. Total ETF holdings are below 2020 peak. Gold prices have significantly outpaced the MSCI AC World Index since 2022. China's gold imports surged in April. Mumbai: Jefferies' global equity strategist Christopher Wood said gold has entered a 'healthy consolidation' period with prices holding above US$3,000 an ounce-a level he described as ideal for gold mining companies to enjoy rising profit margins. In his newsletter, Greed & Fear, Wood said he maintains a 40% allocation to physical gold and 20% to gold mining stocks in his asset allocation for a US dollar-denominated pension fund. ADVERTISEMENT "Normally, when a certain category of stocks outperform, there are strong flows into the related ETFs. But that has not been the case with gold in recent years," he said. "Flows into gold ETFs in the western world have remained relatively light given the dramatic outperformance of gold since the start of 2022." Total known ETF holdings of gold are up 10% from their May 2024 low but remain 20.3% below the October 2020 peak. Gold prices have risen by 85% since the start of 2022 while the MSCI AC World Index is up only 19% over the same period, according to the said China has increased its gold purchases with imports rising 73% in April from the previous month to 127.5 tonnes, the highest level in 11 months. This volume is equivalent to nearly half of the average monthly global gold production outside China, he said."Holdings in China-listed gold ETFs have increased by 82 tonnes so far this year, compared to an increase of 53.3 tonnes in all of 2024," the note said. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Time of India
14-06-2025
- Business
- Time of India
Gold in a healthy consolidation period, says Chris Wood
Gold prices have risen by 85% since the start of 2022 while the MSCI AC World Index is up only 19% over the same period, according to the note. Jefferies' Christopher Wood notes gold's consolidation above $3,000. He maintains high gold allocation in his pension fund. Western gold ETF flows are light despite gold's outperformance since 2022. Total ETF holdings are below 2020 peak. Gold prices have significantly outpaced the MSCI AC World Index since 2022. China's gold imports surged in April. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Jefferies' global equity strategist Christopher Wood said gold has entered a 'healthy consolidation' period with prices holding above US$3,000 an ounce-a level he described as ideal for gold mining companies to enjoy rising profit margins. In his newsletter, Greed & Fear, Wood said he maintains a 40% allocation to physical gold and 20% to gold mining stocks in his asset allocation for a US dollar-denominated pension fund."Normally, when a certain category of stocks outperform, there are strong flows into the related ETFs. But that has not been the case with gold in recent years," he said. "Flows into gold ETFs in the western world have remained relatively light given the dramatic outperformance of gold since the start of 2022."Total known ETF holdings of gold are up 10% from their May 2024 low but remain 20.3% below the October 2020 peak. Gold prices have risen by 85% since the start of 2022 while the MSCI AC World Index is up only 19% over the same period, according to the said China has increased its gold purchases with imports rising 73% in April from the previous month to 127.5 tonnes, the highest level in 11 months. This volume is equivalent to nearly half of the average monthly global gold production outside China, he said."Holdings in China-listed gold ETFs have increased by 82 tonnes so far this year, compared to an increase of 53.3 tonnes in all of 2024," the note said.
