Latest news with #WolfeResearch
Yahoo
8 hours ago
- Business
- Yahoo
Why QXO Stock Is Shooting Higher Today
A Wall Street analyst set a price target for QXO that is more than 150% above the stock's Thursday closing price. QXO has a lot of work to grow into its valuation, but the management team has a strong track record. 10 stocks we like better than Qxo › A Wall Street analyst has high hopes for building products distributor QXO (NYSE: QXO), and investors are taking note. Shares of QXO traded up 12% as of 10:30 a.m. ET after Wolfe Research set a target price for the stock that is more than 150% above where the shares closed Thursday. QXO was formed last year by serial entrepreneur Brad Jacobs with a goal of consolidating the building products distribution business. In April, the company closed an $11 billion acquisition of Beacon Roofing Supply and aims to grow revenue from about $10 billion today to $50 billion in the years to come. Now that the company has an operating business, Wall Street analysts are beginning to chime in. On Friday, Wolfe Research analyst Trevor Allinson initiated coverage on the stock with an "outperform" rating, assigning the stock a $44 price target. For context, QXO shares closed Thursday at $16.75. Allinson said QXO "offers investors a superior (earnings before interest, taxes, depreciation, and amortization) EBITDA growth story, both through organic EBITDA growth via operational improvements and accretive M&A, led a management team that has a proven value-creation track record across multiple industries." The analyst is forecasting QXO to grow EBITDA at a 35% compound annual rate over the next five years, which he notes would be significantly higher than the rest of the industry. To be sure, this note is just one analyst's opinion and is based on anticipation of what is to come and not current business fundamentals. That said, Jacobs' track record gives a lot of credibility to those expectations. The CEO has done more than 500 acquisitions in his career, building two of the top 10 Fortune 500 success stories over the last decade in United Rentals and XPO. Jacobs and his team have a history of using a combination of acquisitions and technology to drive efficiencies, a playbook that Allinson believes can be repeated here to generate both organic and inorganic growth. Last month, QXO completed a secondary offering to replenish its M&A firepower. Investors need to be aware that past performance is not a guarantee of future success, and that a range of factors including economic headwinds or a fickle M&A market could slow momentum from here. But for those looking for a growth stock in the industrials sector, QXO deserves at least a spot on the watch list. Before you buy stock in Qxo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Qxo 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 $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% 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 Lou Whiteman has positions in QXO and XPO. The Motley Fool recommends XPO. The Motley Fool has a disclosure policy. Why QXO Stock Is Shooting Higher Today 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
a day ago
- Business
- CNBC
U.S.-China truce talks are likely temporary, it will blow up, says AEI's Derek Scissors
Wolfe Research's Tobin Marcus and AEI's Derek Scissors, join 'The Exchange' to discuss the 'big beautiful bill' and the fallout between Trump and Elon Musk and what it all means from here.
CNBC
a day ago
- Business
- CNBC
Wall Street sentiment on Boeing is improving as 737 MAX production increases
Sentiment on Wall Street been strengthening steadily on Boeing shares, with the aerospace behemoth finally gaining some momentum. Sixty-nine percent of analysts surveyed by FactSet rate Boeing either buy or overweight. That's up from 52% at the end of 2024. Consensus price targets call for about 2% upside from Wednesday's close. The stock has been on a tear in 2025 as well, with a gain of nearly 20%, while the S & P 500 has ticked up 1.5%. JPMorgan, Wolfe Research and Bernstein are among the Wall Street shops that have raised price targets for Boeing stock over the past month. JPMorgan and Wolfe Research both attributed their more upbeat view to the improved pace of production for the troubled 737 MAX and a record-breaking order from Qatar Airways that followed President Donald Trump's visit to the Middle Eastern country. For Bernstein analyst Douglas Harned, Boeing's ability to steadily increase monthly production of its 737 MAX, with the hopes of stabilizing at around 38 per month, is a key reason he thinks sentiment has shifted. "This stock is a momentum-type stock, and people will want to be in it well ahead of when they're actually there," Harned told CNBC when discussing the company's monthly production goals. "What you've seen is slowly, but surely, skeptical people have started to see the evidence — or hear about it at least — in a more compelling way than in the past." Boeing CEO Kelly Ortberg said last month that the company was resuming plane deliveries to China in June, after the Trump administration's trade war prompted a pause. Ortberg also told Bernstein at the firm's Strategic Differences Conference last month that Boeing could produce as many as 42 737 MAX planes by the end of the year. "We think of this as truly 'back to the future' as we look at how the stock behaved back before 2019, prior to the 737MAX groundings and Covid, when there was optimism about the future," Harned wrote in a Monday note, where he also labeled Boeing stock a top pick. Harned's $249 per share price target implies about 17% upside from Wednesday's $211.98 close. BA YTD mountain Boeing stock in 2025. Boeing's troubles extend back to 2018, when Lion Air Flight 610 crashed killing all 189 aboard. After a second deadly crash, the 737 MAX fleet was grounded for 20 months . Just last year, Boeing faced more trouble after the door flew off of one of its 737 MAX 9's midair. Wolfe Research analyst Myles Walton said in a May note to clients that he had already been optimistic that 2025 would see significantly improved production times for the 737 MAX fleet, however, the Qatar order provided more confidence that the stock could continue to run. "A Big Beautiful Order should help (not yet) big beautiful cash flow," the analyst said. Walton upped his price target to $230 per share from $195 last month, which equates to about 9% upside from Wednesday's close. "With balance sheet concerns addressed for the next few years and a backlog of ~$500b, we see potential for BA to outperform if the company can improve execution," JPMorgan analyst Seth Seifman wrote in a note last month. "Specifically, this means gradually increasing production of 737s and 787s while bringing the 777X closer to entering service." Despite Seifman's optimism, JPMorgan's $200 per share price target implies shares could slide 6% from here.
CNBC
2 days ago
- Business
- CNBC
Financial stocks seem to be losing momentum and show signs of weakness
One sector that was seen as a potential winner of the Trump administration is starting to cool, even as some of the projected benefits seem to be materializing. Wolfe Research analyst Rob Ginsberg wrote in a note to clients that financials are showing signs of weakness. The group is still outperforming the S & P 500 year to date, but the gap has been closing in recent weeks. "The sector peaked on a relative basis in April and has been leaking lower since. The most concerning group in our view? Capital Market names," Ginsberg wrote, referring especially to financial exchanges and data companies. The analyst highlighted the SPDR S & P Capital Markets ETF (KCE) , which has fallen in five of the past six sessions and has triggered a sell signal in one of the technical analysis tools Wolfe tracks. KCE 1M mountain This ETF focused on capital markets stocks dipped since the middle of May. Curiously, the struggles for financial stocks come just as the IPO market is showing signs of life and merger activity has started to regain its footing despite tariff uncertainty. And, in addition to Wall Street power players, the KCE also includes brokerage stocks like Robinhood and Coinbase that should, in theory, see a boost from the deregulation of crypto. All those areas were seen as reasons to be bullish on the group after November's election. The recent struggles could be a sign that the upside has been priced in, with some investors now looking to sell in the event of positive news. Wells Fargo is a potential example of this. On Tuesday, the Federal Reserve made the long-awaited move to lift the asset cap on the bank, allowing Wells Fargo to push for growth. However, the stock gave back all of its morning gains to close lower on Wednesday and is well off its highs of the year, reached in February. WFC YTD mountain Wells Fargo is trading below its highs of the year even after the Federal Reserve lifted the bank's asset cap. "With the steady underperformance of Banks in mind as well, Financials just does not look like one of the more appealing sectors currently," Ginsberg wrote.
CNBC
2 days ago
- Business
- CNBC
The setup is ‘compelling' for these two real estate stocks, Wolfe says – and they pay big dividend yields
The real estate sector has been a lackluster performer in recent weeks, but some dividend-paying stocks in the group could be showing signs of promise, according to Wolfe Research. While the S & P 500 was up more than 6% in May, the real estate sector only advanced about 0.9% in that time. Real estate's performance last month coincided with a volatile period for longer-dated Treasurys, including the 10-year note, as investors grappled with shakiness around tariff policy and deficit worries as the House of Representatives cleared a massive tax and spending bill . The 10-year Treasury is closely tied to the real estate sector, as a spike in yields raises borrowing costs and hurts returns on real estate investments. But even as the real estate sector has had a rough go, one corner of the market is standing out. "A more diluted group that intrigues us is Office [real estate investment trusts]," wrote Wolfe Research managing director and technical analyst Rob Ginsberg in a May 30 report. Indeed, the S & P 500's office REIT sub-industry group was up more than 5% in May – its first winning month in 2025. "[T]he group is starting to come around nicely following months of aggressive underperformance," Ginsberg added, noting that two names in particular are seeig "compelling setups." COPT Defense Properties Ginsberg called out COPT Defense Properties , noting that once the stock punches through its 200-day moving average of $29, its November high at $34 will be "the only thing left in its path." COPT Defense ended Tuesday's trading at $27.56. Shares are off more than 11% in 2025, and pay a current dividend yield of 4.4%. COPT Defense, based in Maryland, has a tenant base that includes U.S. government agencies and defense contractors. It also owns and operates more than 30 data centers. Earlier this year, the REIT lifted its quarterly dividend by 3.4%, a move that caught the attention of Wedbush analyst Richard Anderson. "The company confidently raised the dividend as results are beating essentially every guidance building block," he said in a May 12 report. Anderson rates COPT outperform. "Bigger picture, even though CDP appears protected from [Department of Government Efficiency] cuts and other military forced departures, we think the market [sees] the company as too close for comfort," he added. "Assuming CDP continues to perform, we expect it to shake that stigma." Wall Street also likes the name, with most analysts rating it a buy or strong buy, according to LSEG, and the consensus price target calling for 15% upside. Highwoods Properties Ginsberg also highlighted North Carolina-based Highwoods Properties , which owns and manages real estate in business districts in major Sunbelt cities, including Atlanta, Charlotte and Orlando. The key level for investors to watch is the $30.50 mark – Highwoods' 200-day moving average, Ginsberg said. Once the stock tops that, it would open a "sizable runway to the high $30s," he added. Shares ended Tuesday at $30.31. Highwoods' stock is off about 1% in 2025, and it pays a dividend yield of 6.6%. "We see the set-up into FY26-27 as promising but still see some execution risk and remain Neutral," Mizuho analyst Vikram Malhotra said in a report last week after meeting with Highwoods' CFO Brendan Maiorana. Malhotra noted that the South is still benefiting from migration trends, which is lifting office demand in Highwoods' markets. "Getting back to steady 'mid-single-digit' cash flow growth combined with a well-covered 7% dividend is the opportunity for investors," the analyst added. Analysts largely rate the company a hold, and the consensus price target sees just 1% upside from current levels, according to LSEG. —CNBC's Michael Bloom contributed reporting.
