Latest news with #Tengler
CNBC
27-05-2025
- Business
- CNBC
Investors will be rewarded if they believe in Starbucks' turnaround story, CIO says
Starbucks is in the middle of a turnaround story as new management is expected to overhaul the struggling coffee chain, according to Nancy Tengler, Laffer Tengler Investments CEO and CIO. Tengler broke down her views on Starbucks, Nvidia, and EQT on CNBC's "Three-Stock Lunch" Tuesday. Starbucks Last month, Starbucks missed earnings and revenue estimates for its fiscal second quarter as same-store sales fell for the fifth straight quarter. Still, CEO Brian Niccol said the coffee chain is seeing "momentum" in its turnaround, even though the effort will pressure earnings. "I think it's presenting an opportunity to invest, for investors to step in," Tengler said. " New CFO [Nordstrom alumna Cathy Smith] is adding a level of urgency, and they are really investing in labor, which was a weak spot of the company. You're getting paid to wait. I think this is a name that you can add to just take your time, because it's going to take a little while to turn it around." SBUX YTD mountain Starbucks Nvidia Nvidia is in the sweet spot in the artificial intelligence boom, and investors should use the weakness from headlines to add to their holdings, Tengler said. She said she's been increasing her investment in the chip giant during key market events, including President Donald Trump's initial tariff rollout and the launch of a language model from Chinese competitor DeepSeek. "If you look at where they are in the stack of AI, they're in the sweet spot," Tengler said. "They are the go-to chip provider, and all of the hyperscalers have told us that they're capacity constrained." Nvidia is scheduled to report quarterly earnings on Wednesday after the bell. Many investors are focused on the impact of export restrictions to China. The Trump administration said it was requiring an export license for the company's H20 chip. Nvidia said it would take a $5.5 billion write-down on inventory for its H20 chip, what analysts called the biggest write-down in the history of the chip industry. NVDA YTD mountain Nvidia EQT Tengler is also bullish on Pittsburgh-based energy company EQT . The company has a current dividend yield of 1.1%. "This is a company that's pledged to return 60% of free cash flow to shareholders through buybacks and dividend increases," she said. "They are also generating free cash flow at two times the competition. And we think there's a tailwind behind natural gas prices and LNG export prices so we're pretty optimistic on the group." EQT YTD mountain EQT
CNBC
29-04-2025
- Business
- CNBC
Investor Nancy Tengler says to buy this beat-up ‘Magnificent Seven' titan
Microsoft shares are looking a bit dented in 2025, but they're worth buying, according to money manager Nancy Tengler of Laffer Tengler Investments. The firm's CEO and chief investment officer joined CNBC's " Power Lunch " on Tuesday to offer her take on the "Magnificent Seven" titan, as well as a pair of other market movers. Here's what Tengler had to say during the "Three-Stock Lunch" segment. Microsoft Microsoft has not been exempt from the broader sell-off plaguing tech megacaps this year. Shares have fallen more than 6% in 2025 and are down nearly 16% since their high from last July. The company's latest quarterly results are due on Wednesday afternoon . Tengler thinks that investors may have unduly punished the stock, since Microsoft's business still seems "pretty robust." She estimated that Microsoft's revenues will grow between 10% to 11%, while its earnings will increase by 10%. "We think that the company is relatively tariff-proof, because software seems to be a little bit of a carve out," she said. "Dividend growth of 10.3%, a great management team — we think you use these periods of weakness to add to the whole thing." Spotify Shares of Spotify slid more than 3% on Tuesday, after the music streaming platform reported first-quarter operating income of 509 million euros, while analysts polled by FactSet had penciled in 519.9 million euros. Spotify's revenue of 4.2 billion euros was in line with estimates, while its monthly active users of 678 million was also in line with prior guidance. Tengler remains bullish on the name, which she said she has owned "for a long time" and was one of her top ideas for the year. "We think it has plenty of room to run, and that is because management has made really strong decisions around ad-supported growth," she said. "It's going to be lumpy, but they have a strong balance sheet, and we think as cash flow improves we will begin to see an attractive capital allocation plan for the benefit of shareholders." Shares are up about 29% in 2025. AbbVie Finally, Tengler singled out pharmaceutical stock AbbVie , which she said was her largest health-care holding, as another attractive name. Last week, AbbVie reported a first-quarter earnings and revenue beat. The company also raised guidance for full-year earnings per share. Investors may be asking if the stock has run too far, with shares up nearly 20% in the past 12 months. Tengler said the answer is no. For starters, she called out the company's dividend growth of 7.2% and its robust quarterly report. "They delivered a triple play, which is a beat, beat and a raise," she said. "They're well positioned, we think, to replace the HUMIRA revenues with Skyrizi and Rinvoq very, very soon, and we think they're going to raise estimates on those two names. Then they don't have any loss of exclusivity anymore for another 10 years." Tengler added that another one of AbbVie's benefits is that the stock is largely tariff-proof. For instance, she noted that much of the manufacturing for Skyrizi takes place in the U.S.
Yahoo
09-03-2025
- Business
- Yahoo
Don't rush into the recession trade — Wall Street pros see opportunity in tech and banks
Concerns over valuations, tariffs, and slowing economic growth triggered an ugly week for stocks. A sell-off in the Magnificent Seven trade pushed the Nasdaq Composite (^IXIC) into correction territory. The index closed the week down 3.6%, while the S&P 500 (^GSPC) recorded its worst weekly performance since September. But before investors hightail it, strategists told me it's not time to panic and pile into the recession trade just yet. Rather, they see the recent sell-off as a buying opportunity, as long as investors are willing to look past uncertainty out of Washington, D.C. 'We get a correction once every 12 months, and this time, it's spurred by the tariffs,' Nancy Tengler of Tengler Investments told me. 'If they're short-lived, then this is just an opportunity to buy stocks for the long term.' And according to Tengler, technology and financials are among the two trades that stand out. 'The defensive trade is just that, a trade," she remarked. "We like financials ... And the use cases for AI are exploding. This is an industrial revolution like we haven't seen for 100 years ... Use the weakness to add to your holdings." Valuation corrections paired with strong earnings make the group more compelling too. Market cap losses from Nvidia's (NVDA) record high in January reached $1 trillion in value during Friday's trade. Recently, the chips giant announced fourth quarter earnings that included an 82% year-over-year jump in earnings per share. 'Tariffs add uncertainty but it doesn't change the demand cycle,' Wedbush's Dan Ives told me on Yahoo Finance's Morning Brief. 'This is not going to end the tech bull market; it's a scare, but I see more opportunity than a reason to head for the hills.' Ives reiterated his stance that Mag Seven stocks Nvidia, Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), and Tesla (TSLA) remain companies to own, along with Palantir (PLTR) and Salesforce (CRM), arguing 'any weakness is a buying opportunity given the fundamental demand picture.' Another underperforming sector drawing attention this week is financials. The KBW Nasdaq Bank Index (^BKX) erased its post-election rally, falling nearly 13% from its recent peak as concerns around a weakening economy and sluggish dealmaking weighed on the sector. However, strategists argue that beyond the headline worry, key catalysts for the sector remain intact: deregulation, attractive valuations, and the prospect of lower interest rates. Truist's Keith Lerner, who recently downgraded equities from Attractive to Neutral, maintains his "attractive" outlook on Financials (XLF). In a note to clients, Lerner wrote the group 'should benefit from pro-growth policies, deregulation and a pickup in mergers and acquisitions.' Citigroup's Stuart Kaiser echoed a cautiously optimistic view and emphasized the importance of staying selective. He told me on Catalysts to exercise patience and said he sees opportunity in large-cap, high-quality stocks in the financial and tech sectors. But unlike others, Kaiser isn't buying into the Mag Seven names just yet, arguing positioning in those stocks remains crowded. 'Be in large, safe, high-quality stocks … Hedge and be patient,' Kaiser advised. 'We still like banks … and the Nasdaq Equal Weighted Index. It gives you exposure to large-cap tech space while reducing your concentration risk in the Mag Seven.' The Nasdaq 100 Equal Weighted Index (^NDXE) closed the week down 3.3%. Seana Smith is an anchor at Yahoo Finance. Follow Smith on X @SeanaNSmith. Tips on deals, mergers, activist situations, or anything else? Email seanasmith@ Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
How tariffs, geopolitical uncertainty are driving market volatility
US stocks (^DJI, ^IXIC, ^GSPC) are trading higher Friday afternoon following a contentious meeting between US President Trump and Ukrainian President Volodymyr Zelenskyy. The exchange included sharp criticism from Trump, with Trump even telling Zelensky, "You're gambling with World War 3." Laffer Tengler Investments CEO and CIO Nancy Tengler joins Market Domination to discuss the market (^DJI, ^IXIC, ^GSPC) reaction and other factors influencing current trading. Tengler attributes part of the market's rally to the Federal Reserve Bank of Atlanta's downgrading gross domestic product (GDP) projections for the first quarter to -1.5%: "I think it has a lot to do with [President Trump's] tariffs and the uncertainty around that," while adding "but the geopolitical part I think will play out." She expresses optimism about resolving current tensions, stating, "I do think that we'll see a resolution, and it'll probably happen fairly quickly." Looking ahead, Tengler forecasts volatile markets in the first half of the year but anticipates improvement as clarity emerges around key policies such as taxes, deregulation, and tariffs. She suggests that once these issues are resolved, "we would have the decks cleared for the headline risk." She concludes by emphasizing that "it is the uncertainty that is driving this volatility." To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith Sign in to access your portfolio
Yahoo
12-02-2025
- Business
- Yahoo
How govt. spending crackdowns could impact tech investments
With government spending on IT and tech continuing to rise, questions around the impacts of investments have become more pressing. Nancy Tengler, CEO and CIO at Laffer Tengler Investments, explains on the Morning Brief that while government efficiency might improve, it will drive demand for technologies that boost productivity. "I think at the margin where we're going to see spending, and we've seen it with Palantir (PLTR), is that the government is going to really focus on spending efficiently — which means productivity-improving technologies," Tengler says. Tengler highlights that as the government looks to cut jobs, it will rely on companies like ServiceNow (NOW) and Nvidia (NVDA) to fill the gap. Regarding Intel (INTC), Tengler expresses doubt about the AI semiconductor manufacturer's future, stating, 'I just worry that this company is so far behind. Can you make money on a trade? I think you can. Can you make money for the long term? I don't think so.' She compares Intel's struggles under former CEO Pat Gelsinger to Xerox Holdings' (XRX) failure to capitalize on key innovations, to which Tengler believes there are better investment opportunities elsewhere. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Josh Lynch Sign in to access your portfolio
