Latest news with #TrefisHighQualityPortfolio
Forbes
15-05-2025
- Business
- Forbes
What's Happening With CoreWeave Stock?
A laptop keyboard and CoreWeave logo displayed on a phone screen are seen in this illustration photo ... More taken in Krakow, Poland on March 28, 2025. (Photo by Jakub Porzycki/NurPhoto via Getty Images) CoreWeave (NASDAQ: CRWV), an AI infrastructure provider, recently announced its Q1 results, reporting a loss of $1.49 per share on revenue of $982 million. This exceeded market expectations of $853 million in revenue. However, its capital expenditures plan of $20-23 billion was much higher than the $18 billion anticipated by the analysts and it didn't sit well with investors - triggering a decline in the stock in after-hours trading. Separately, see – Is UNH Stock Now A Falling Knife? Since its IPO at $40 per share in March, CRWV stock has surged past $65 earlier this week, significantly outperforming the NASDAQ index's 11% gain over the same period. CoreWeave's strong backlog of over $25 billion has contributed to its stock's impressive performance. However, if you prefer a less volatile investment alternative, consider the High Quality Portfolio, which has consistently outpaced the S&P 500 and has delivered over 91% returns since inception. CoreWeave's Q1 revenue of $982 million reflects an impressive 420% year-over-year increase. CoreWeave has secured significant contracts with leading AI labs, hyperscalers, and enterprises, including OpenAI, Microsoft, IBM, Meta, and Mistral AI, aiding its revenue growth. The first quarter also saw OpenAI solidify its relationship with CoreWeave by committing to a five-year deal worth up to $11.9 billion. This significant agreement underscores the growing importance of CoreWeave's infrastructure for OpenAI. Additionally, CoreWeave's adjusted EBITDA margin increased by 700 bps to 62%, up from 55% in the previous year's quarter. However, the adjusted net loss widened to $150 million from $24 million in the prior-year quarter. Higher revenue offset by a contraction in net margin resulted in adjusted net loss of $0.61 per share. Looking ahead, CoreWeave expects Q2'25 revenue of $1.08 billion and full-year 2025 revenue of $5.0 billion, at the mid-point of the provided range. This fares better than the consensus estimates of $987 million and $4.6 billion, respectively. CRWV stock has shown some volatility since its debut. In contrast, the Trefis High Quality Portfolio, which consists of 30 stocks, is significantly more stable. It has also comfortably outperformed the S&P 500 over the past four years. Why? This portfolio comprises stocks that have historically provided stronger returns with lower risk compared to the broader index, offering a more predictable performance, as evident in the HQ Portfolio performance metrics. Given the current economic uncertainty surrounding tariffs and ongoing trade disputes, could CoreWeave sustain its upward trajectory? Since the stock was only listed last year, there is no historical data to assess its historical valuation multiple. At its current price of approximately $63 (after market hours), CRWV trades at 13 times trailing revenue. With sales increasing by over 700% in 2024, over 400% in Q1, and it's expected to grow 2.3x this year, the company's high valuation multiple appears justified. However, the company's high capital expenditures and widening losses remain key near-term concerns.
Forbes
22-04-2025
- Business
- Forbes
What's Happening With GE Stock?
Trefis GE Aerospace (NYSE: GE) delivered a strong first-quarter performance, beating expectations on both revenue and adjusted earnings. The company reported revenue of $9.94 billion and adjusted earnings per share of $1.49, exceeding the consensus estimates of $9.04 billion and $1.26, respectively. This robust performance follows a solid prior quarter, driven by improved pricing and higher service contributions. Investor enthusiasm for GE stock—now centered on aviation following its healthcare and energy spin-offs—is reflected in its 6% year-to-date gain, outpacing the S&P 500's 12% decline. For those seeking steadier returns than individual stocks offer, the High-Quality portfolio, which has delivered over 91% returns since inception, is worth considering. GE posted solid financial results for Q1 2025, with revenue growing 11% year-over-year to $9.94 billion. Our GE Aerospace's revenue dashboard provides more detail. This growth, along with a 460 basis point year-over-year rise in adjusted operating margin to 23.8%, led to a 60% year-over-year increase in earnings per share, which reached $1.49. From a segment perspective, commercial engines and services stood out with 14% growth year-over-year, totaling $6.98 billion, while defense and propulsion technologies increased by 1% to $2.32 billion. Looking forward, GE's momentum is projected to continue, backed by a strong aftermarket business. The company reaffirmed its 2025 guidance, targeting low double-digit revenue growth from $35.1 billion in 2024 and adjusted EPS in the range of $5.10 to $5.45, up from $4.60 last year. Total orders rose 12% year-over-year to $12.3 billion in the quarter, further underscoring this positive trend. GE stock has been on an upward trend following its Q1 earnings release. Over a four-year span, GE's stock performance has been volatile compared to the S&P 500, with yearly returns of 10% in 2021, -11% in 2022, 94% in 2023, and 65% in 2024. The Trefis High Quality Portfolio, featuring 30 selected stocks, offers lower volatility and has significantly outperformed the S&P 500 in the same timeframe. Why? These stocks have delivered higher returns with less risk, as shown in the HQ Portfolio performance metrics. Given the prevailing macroeconomic uncertainty, including interest rate dynamics and geopolitical tensions, GE might experience performance swings similar to 2021. However, with the stock's recent climb, it may still offer growth potential. Currently trading at around $185, GE stock is valued at 36x trailing earnings, slightly above its two-year average P/E of 35x. Given the strong sales and earnings growth driven by margin expansion, a modest increase in valuation multiples appears justified. While GE stock may still have upside, it's insightful to explore how GE Aerospace's Peers compare on critical performance indicators. For broader benchmarking, check out Peer Comparisons. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
16-04-2025
- Business
- Forbes
Up 12% In A Week, What's Happening With AVGO Stock?
Illustration of BROADCOM, France, March 7, 2025. (Photo by Riccardo Milani / Hans Lucas / Hans ... More Lucas via AFP) (Photo by RICCARDO MILANI/Hans Lucas/AFP via Getty Images) Broadcom Inc. (NASDAQ: AVGO) stock has risen 12% over the past five days due to two key developments: a broader market rebound after President Trump suspended reciprocal tariffs for 90 days, and the company's announcement of a $10 billion share buyback program. Despite the recent gains, AVGO is still down over 20% this year. Such fluctuations are not unusual for the stock—AVGO fell 36% during the 2022 inflation-driven downturn and dropped 48% during the COVID-19-related market selloff in 2020. However, for investors seeking a potentially more stable and high-performing alternative, consider the Trefis High Quality Portfolio, which includes 30 stocks with a strong record of consistently outperforming the S&P 500 over the past four years. Broadcom's key financial indicators highlight its strong foundation: For long-term investors, the recent decline in AVGO stock could offer a compelling entry point, considering the company's solid fundamentals and AI leadership. Those sensitive to volatility should consider hedging, consulting a financial advisor, or diversification, such as the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark to produce strong returns for investors. A calm, strategic approach is crucial for wealth generation during market volatility. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
16-04-2025
- Business
- Forbes
Will Super Micro Stock's Outperformance Last?
LAS VEGAS, NEVADA - MARCH 10: Charles Liang, CEO of Supermicro, and Liz Claman speak onstage during ... More the HumanX AI Conference 2025 at Fontainebleau Las Vegas on March 10, 2025 in Las Vegas, Nevada. (Photo by Bigfor HumanX Conference) Super Micro Computer stock has risen roughly 10% so far this year, compared to the broader S&P 500, which has dropped about 8% year-to-date. Despite this gain, the stock is still down nearly 70% from its all-time highs reached in March 2024. Recently, a few positive developments—such as growing demand for its AI server systems and some resolution of corporate governance concerns from last year—have helped lift sentiment. So, is now the right time to consider buying SMCI stock? Although SMCI stock shows potential, investing in a single company carries risks. In contrast, the Trefis High Quality Portfolio, composed of 30 stocks, has consistently outperformed the S&P 500 over the past four years. Why? Because these stocks have delivered superior returns with lower volatility compared to the broader index, as demonstrated in the HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
15-04-2025
- Business
- Forbes
XRP Price Is Up 20%: What's Next?
ANKARA, TURKIYE - MARCH 07: In this photo illustration, the 'XRP Ripple' logo is displayed on a ... More mobile phone screen in front of a computer screen displaying the 'Cardano Ada' logo in Ankara, Turkiye on March 07, 2025. (Photo by Harun Ozalp/Anadolu via Getty Images) Ripple's XRP has recently seen a sharp price surge, rising over 20% from $1.75 mid-last week to around $2.15. This rally was driven by a broader recovery in equity markets following the Trump administration's temporary halt on tariffs and Ripple's strategic acquisition of Hidden Road. The acquisition represents a major step for Ripple, as Hidden Road operates a prime brokerage and credit network with over 300 institutional clients, clearing more than $10 billion and processing over 50 million transactions daily using traditional financial infrastructure. This opens up a notable opportunity for these transactions to potentially transition to the XRP Ledger, boosting XRP's utility and demand. Even with this recent upswing, XRP still trades about 30% below its January high of $3.30, largely due to ongoing macroeconomic uncertainties. Still, Ripple's core fundamentals have improved significantly this year. A pivotal moment was the announcement by Ripple's CEO that the SEC is expected to drop its appeal against the company, effectively ending a four-year legal dispute that had cast regulatory uncertainty over XRP. Looking forward, XRP remains a potentially strong long-term play in the cryptocurrency space. Ripple's blockchain-based payment network leverages XRP for fast and cost-effective global transfers, strengthening its foothold in the international payments ecosystem. The anticipated approval of XRP ETFs could further open doors to both institutional and retail investors. Ripple is also actively growing its partner network, most recently through a collaboration with Chipper Cash. Still, the most transformative growth driver would be the integration of XRP with major U.S. banks, which could significantly enhance its adoption and real-world use. Overall, with improved fundamentals, expanding institutional ties, and evolving technology, XRP appears well-positioned for long-term growth despite the inherent volatility of the crypto market. Keep in mind that cryptocurrencies are high-risk investments, and their potential for gains depends on the achievement of specific milestones, making them inherently speculative. If the volatility of digital assets concerns you, check out the Trefis High Quality Portfolio, featuring 30 stocks that have consistently outperformed the S&P 500 over the last four years. Why? These stocks, as a group, delivered stronger returns with lower volatility versus the benchmark, offering a smoother ride—as reflected in HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
