Latest news with #TreasuryBills
Yahoo
6 days ago
- Business
- Yahoo
Prediction: These 3 Unstoppable Value Stocks Will Continue Crushing the S&P 500 Beyond 2025
Berkshire Hathaway can still be a winning investment even once Warren Buffett passes the torch to Greg Abel. Allegion is a long-term growth story at an attractive valuation. After underperforming last year, shares of American Electric Power have raced past the S&P 500 in 2025 and show little sign of slowing down. 10 stocks we like better than Berkshire Hathaway › Investors often gravitate to value stocks for their reliability and reasonable valuations. Amid volatility in 2025, value stocks like Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Allegion (NYSE: ALLE), and American Electric Power (NASDAQ: AEP) are all outperforming the benchmark S&P 500 (SNPINDEX: ^GSPC). But buying a stock just because it is doing well in the short term is a great way to lose your shirt. Here's why all three value stocks have what it takes to be excellent long-term investments and could be worth buying now. Daniel Foelber (Berkshire Hathaway): Berkshire Hathaway is up 10.4% year to date (YTD) at the time of this writing -- handily outperforming the S&P 500's slight YTD decline. Warren Buffett grew Berkshire into a company with a market cap of over $1 trillion. And I think Greg Abel, who is set to become the new CEO of Berkshire at the end of 2025, can take Berkshire far beyond a $2 trillion market cap and outperform the S&P 500 in the process. Berkshire has numerous advantages that position it to thrive over the long term. The company has a portfolio of top dividend-paying stocks like Apple, American Express, Coca-Cola, Bank of America, and Chevron. It also has a massive cash position that it can use to pounce on investment opportunities. But the most valuable jewels in Berkshire's crown are its controlled assets. Berkshire has been shifting its focus away from public equities toward its controlled businesses by growing its insurance businesses, Berkshire Hathaway Energy, BNSF railroad, and its various manufacturing, services, and retail segments. Combined, the value of Berkshire's controlled companies is worth much more than its public equity portfolio. The controlled companies generate operating earnings, which Berkshire can park in cash or Treasury Bills, use to buy public stock, or reinvest back into its controlled businesses. And because Berkshire doesn't pay a dividend and only buys its stock when it deems it a bargain, the company is left with plenty of extra cash to put to work in its top ideas. Berkshire earns insurance investment income on its float, which is the sum of premiums collected that haven't been paid in claims. Buffett often refers to this investment income as "free money," since Berkshire earns a return on the float. The float has gradually grown, ballooning to $173 billion as of March 31. Even if Berkshire simply invested the float in a risk-free asset yielding something like 4%, that would still be around $7 billion a year in "free" money. The float is just one of many ways Berkshire is well-positioned to compound its operating earnings for years to come. Add it all up, and Berkshire has plenty of levers to pull to generate value and reward patient investors. Lee Samaha (Allegion): This doors-and-locks security company's stock is up 8.6% in 2025, compared to a slight decline for the S&P 500. This move highlights the business' underlying attractiveness and potential for long-term growth. Allegion's long-term development has several key drivers, including the opportunity to grow sales via the convergence of electronic and mechanical security products, the growing importance of safety and security (notably in the institutional sector), and the opportunity to continue consolidating a highly fragmented industry. The increasing use of web-enabled electronics and services in locks and doors creates substantially more value for building owners because it allows them to monitor and control who has access to which areas, provides valuable data on workflows, and improves convenience. The need for such features will only increase as urbanization trends create greater population density in cities, a statistic often linked to increased crime. As for industry consolidation, its key rival, Sweden's Assa Abloy, is a serial acquirer, and Allegion itself expects mergers and acquisitions to contribute 3% of its total long-term growth rate of above 7%. Management expects the revenue growth rate to drop to double-digit growth in earnings. Wall Street analysts expect $8.42 in earnings per share in 2026 with $675 million in free cash flow (FCF), putting Allegion on 16.7 times earnings and 18 times FCF -- excellent valuations for a company with double-digit earnings growth prospects. Scott Levine (American Electric Power): While the S&P 500 has struggled to stay in positive territory, utility stock American Electric Power has charged considerably higher since the start of the year. As of this writing, shares have climbed more than 11% while the S&P 500 is down 1.3%. Despite its climb, the stock still sports an inexpensive valuation, appealing to those looking for a bargain. Besides value investors, those seeking passive income will also find their interests amped up with the prospect of owning the stock and its 3.7% forward-yielding dividend. From its 4% year-to-date rise in February to the 17% year-to-date plunge in April, the S&P 500 has been on a roller coaster. During this turmoil, investors have sought the safety of rock-solid investments that represent minimal risk -- stocks like American Electric Power. Because the company primarily operates as a regulated utility, it doesn't enjoy the freedom of raising rates when it wants. However, it guarantees certain rates of return. This low-risk business model may not spark joy in growth investors, but for those seeking conservative investments, it works just fine. Moreover, it lends credibility to management's target of providing an annual 10% to 12% total shareholder return, based on earnings-per-share growth of 6% to 8% and a dividend that yields about 4%. With a lack of clarity regarding President Donald Trump's trade policy and geopolitical tensions continuing to run high, market volatility seems likely to continue to rattle the market's nerves for the foreseeable future, leading investors to the safety of utility stocks like American Electric Power. With its stock trading at 8.8 times operating cash flow -- a discount to its five-year average cash flow multiple of 9.2 -- now looks like a good time to click the buy button on American Electric Power. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 June 2, 2025 American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Chevron. The Motley Fool has a disclosure policy. Prediction: These 3 Unstoppable Value Stocks Will Continue Crushing the S&P 500 Beyond 2025 was originally published by The Motley Fool 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
CNBC
03-06-2025
- Business
- CNBC
Wall Street's next trillion dollar market could grow 10 times by 2030, analysts say
The crypto market's stablecoin sector could grow by more than 10 times in the next five years, becoming the next trillion-dollar market opportunity, analysts say. The current market capitalization of stablecoins is around $225 billion, according to CryptoQuant, but Citizens JMP Securities forecasts that will grow to more than $3 trillion by 2030, Devin Ryan, head of financial technology research, said in a report last week. Citi Institute estimates the potential at a minumum of $1.6 trillion and as much as $3.7 trillion in the same time frame, analyst Alex Saunders said in a May 30 note. Wells Fargo said stablecoins are reaching "must-monitor levels." "Banks, fintechs, payment processors, big tech firms, and even central banks are entering what we view as a post regulatory 'land grab,'" Citizens JMP's Ryan said. "Even as interest rates 'normalize' off our $3 trillion estimate, we project a nearly $100 billion revenue opportunity for issuers, which for some will represent incremental fees while for others will be necessary to offset lower transaction fees." Cryptocurrencies that are pegged Stablecoins are cryptocurrencies whose values are pegged to that of another asset, usually the dollar. They are designed to bring the stability of traditional currencies to blockchain networks (praised for the speed and efficiency they provide for money transfers). USDT , issued by Tether, and USDC , issued by Circle, currently dominate the market. Traditionally used as bridge currencies for crypto traders, stablecoins today are benefiting from interest by banks and payment firms as the Trump administration rolls back restrictive Biden-era crypto policies and Congress makes progress on passing stablecoin legislation , possibly as early as August. In addition to the developments around U.S. regulation, dubbed the GENIUS Act, advances are also coming overseas, where MiCA regulation in Europe and frameworks in Singapore and elsewhere are adding to a global regulatory regime that will spur greater institutional adoption of stablecoins, Ryan said. Citigroup's Saunders said there's also a case to be made for stablecoins in addition to their uses in trading – as an "alternative store of value or a hedge against inflation and political volatility" – noting that stablecoin providers will increase the demand for Treasury Bills used to underpin the coins. The U.S. dollar's reserve currency status "is likely to be reflected in, rather than driven by, relative currency stablecoin issuance," Saunders said. Ryan highlighted stablecoins' utility in other transactions, including remittances, business-to-business payments, e-commerce, in tokenized financial markets and as a store of value in inflation-prone economies — all of which are likely to prove key drivers of growth. "Critically for the United States … we estimate the U.S. could see a multi-trillion structural bid for its debt — supporting liquidity and reinforcing monetary leadership," Ryan said. "Bigger picture, we view stablecoin adoption as a key gateway to broader tokenization of financial and non-financial assets, with blockchains positioned to serve as a foundational technology in an increasingly digital economy." —CNBC's Michael Bloom contributed reporting.
Yahoo
03-06-2025
- Business
- Yahoo
Prediction: These 3 Unstoppable Value Stocks Will Continue Crushing the S&P 500 Beyond 2025
Berkshire Hathaway can still be a winning investment even once Warren Buffett passes the torch to Greg Abel. Allegion is a long-term growth story at an attractive valuation. After underperforming last year, shares of American Electric Power have raced past the S&P 500 in 2025 and show little sign of slowing down. 10 stocks we like better than Berkshire Hathaway › Investors often gravitate to value stocks for their reliability and reasonable valuations. Amid volatility in 2025, value stocks like Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Allegion (NYSE: ALLE), and American Electric Power (NASDAQ: AEP) are all outperforming the benchmark S&P 500 (SNPINDEX: ^GSPC). But buying a stock just because it is doing well in the short term is a great way to lose your shirt. Here's why all three value stocks have what it takes to be excellent long-term investments and could be worth buying now. Daniel Foelber (Berkshire Hathaway): Berkshire Hathaway is up 10.4% year to date (YTD) at the time of this writing -- handily outperforming the S&P 500's slight YTD decline. Warren Buffett grew Berkshire into a company with a market cap of over $1 trillion. And I think Greg Abel, who is set to become the new CEO of Berkshire at the end of 2025, can take Berkshire far beyond a $2 trillion market cap and outperform the S&P 500 in the process. Berkshire has numerous advantages that position it to thrive over the long term. The company has a portfolio of top dividend-paying stocks like Apple, American Express, Coca-Cola, Bank of America, and Chevron. It also has a massive cash position that it can use to pounce on investment opportunities. But the most valuable jewels in Berkshire's crown are its controlled assets. Berkshire has been shifting its focus away from public equities toward its controlled businesses by growing its insurance businesses, Berkshire Hathaway Energy, BNSF railroad, and its various manufacturing, services, and retail segments. Combined, the value of Berkshire's controlled companies is worth much more than its public equity portfolio. The controlled companies generate operating earnings, which Berkshire can park in cash or Treasury Bills, use to buy public stock, or reinvest back into its controlled businesses. And because Berkshire doesn't pay a dividend and only buys its stock when it deems it a bargain, the company is left with plenty of extra cash to put to work in its top ideas. Berkshire earns insurance investment income on its float, which is the sum of premiums collected that haven't been paid in claims. Buffett often refers to this investment income as "free money," since Berkshire earns a return on the float. The float has gradually grown, ballooning to $173 billion as of March 31. Even if Berkshire simply invested the float in a risk-free asset yielding something like 4%, that would still be around $7 billion a year in "free" money. The float is just one of many ways Berkshire is well-positioned to compound its operating earnings for years to come. Add it all up, and Berkshire has plenty of levers to pull to generate value and reward patient investors. Lee Samaha (Allegion): This doors-and-locks security company's stock is up 8.6% in 2025, compared to a slight decline for the S&P 500. This move highlights the business' underlying attractiveness and potential for long-term growth. Allegion's long-term development has several key drivers, including the opportunity to grow sales via the convergence of electronic and mechanical security products, the growing importance of safety and security (notably in the institutional sector), and the opportunity to continue consolidating a highly fragmented industry. The increasing use of web-enabled electronics and services in locks and doors creates substantially more value for building owners because it allows them to monitor and control who has access to which areas, provides valuable data on workflows, and improves convenience. The need for such features will only increase as urbanization trends create greater population density in cities, a statistic often linked to increased crime. As for industry consolidation, its key rival, Sweden's Assa Abloy, is a serial acquirer, and Allegion itself expects mergers and acquisitions to contribute 3% of its total long-term growth rate of above 7%. Management expects the revenue growth rate to drop to double-digit growth in earnings. Wall Street analysts expect $8.42 in earnings per share in 2026 with $675 million in free cash flow (FCF), putting Allegion on 16.7 times earnings and 18 times FCF -- excellent valuations for a company with double-digit earnings growth prospects. Scott Levine (American Electric Power): While the S&P 500 has struggled to stay in positive territory, utility stock American Electric Power has charged considerably higher since the start of the year. As of this writing, shares have climbed more than 11% while the S&P 500 is down 1.3%. Despite its climb, the stock still sports an inexpensive valuation, appealing to those looking for a bargain. Besides value investors, those seeking passive income will also find their interests amped up with the prospect of owning the stock and its 3.7% forward-yielding dividend. From its 4% year-to-date rise in February to the 17% year-to-date plunge in April, the S&P 500 has been on a roller coaster. During this turmoil, investors have sought the safety of rock-solid investments that represent minimal risk -- stocks like American Electric Power. Because the company primarily operates as a regulated utility, it doesn't enjoy the freedom of raising rates when it wants. However, it guarantees certain rates of return. This low-risk business model may not spark joy in growth investors, but for those seeking conservative investments, it works just fine. Moreover, it lends credibility to management's target of providing an annual 10% to 12% total shareholder return, based on earnings-per-share growth of 6% to 8% and a dividend that yields about 4%. With a lack of clarity regarding President Donald Trump's trade policy and geopolitical tensions continuing to run high, market volatility seems likely to continue to rattle the market's nerves for the foreseeable future, leading investors to the safety of utility stocks like American Electric Power. With its stock trading at 8.8 times operating cash flow -- a discount to its five-year average cash flow multiple of 9.2 -- now looks like a good time to click the buy button on American Electric Power. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 June 2, 2025 American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Chevron. The Motley Fool has a disclosure policy. Prediction: These 3 Unstoppable Value Stocks Will Continue Crushing the S&P 500 Beyond 2025 was originally published by The Motley Fool
India Gazette
26-05-2025
- Business
- India Gazette
RBI to Auction Rs19,000 Crore in Treasury Bills on May 28
ANI 26 May 2025, 13:38 GMT+10 New Delhi [India] May 26 (ANI): The Reserve Bank of India (RBI) has announced the latest auction of Government of India Treasury Bills (T-Bills) to raise Rs 19,000 crore. The Government uses these short-term debt instruments to manage its immediate funding and liquidity requirements, the central bank said in a press release on May 23. The auction will comprise three tenures: 91-days, 182-days, and 364-days T-Bills, with the total notified amount spread across these maturities. The auction is scheduled for May 28 with the settlement to take place the following day, on May 29. The RBI has stated that the auction will be price-based using multiple price method, allowing potential investors to bid competitively. RBI has advised that the bids for auction should be submitted electronically to its Core Banking Solution (E-Kuber) system. Results of the auction will be announced on the day of the auction. Payment by successful bidders will have to be made on May 29. This latest announcement follows the RBI's successful Government Securities (G-Sec) auction held on May 23 this year, where bonds with a total notified amount of Rs. 27,000 crore were fully subscribed in two tranches--underscoring strong investor appetite for Indian sovereign debt instruments. (ANI)
Zawya
20-05-2025
- Business
- Zawya
CBB 12 month treasury bills Issue No. 128 oversubscribed
RELATED TOPICS FINANCIAL SERVICES Manama, Bahrain – This week's BD 100 million issue of Government Treasury Bills has been oversubscribed by 139%. The bills, carrying a maturity of 12 months, are issued by the CBB, on behalf of the Kingdom of Bahrain. The issue date of the bills is 22nd May 2025, and the maturity date is 21st May 2026. The weighted average rate of interest is 5.12% compared to 5.03% of the previous issue on 17th April 2025. The approximate average price for the issue was 95.081% with the lowest accepted price being 94.823%. This is issue No. 128 (ISIN BH0002SG78H4) of Government Treasury Bills. With this, the total outstanding value of Government Treasury Bills is BD 2.110 billion.
