Latest news with #consumerdiscretionary
News.com.au
3 days ago
- Business
- News.com.au
Closing Bell: ASX navigates uncharted territory, surging on RBA rate cut
RBA cuts interest rates by 25 basis points ASX notches new all-time intraday and closing highs Broad market strength with 8 of 11 sectors green ASX breaks through 8870 points The ASX 200 set both a new intraday high (8885) and a new record closing high today, muscling higher on interest rate cut momentum to finish up 0.41% at 8880 points. The market had been fairly steady at about +0.2% for most of the day before making a strong climb as soon as the RBA decision came through. More on that in a moment. Of our 11 sectors, eight moved higher. Only real estate, info tech and industrials missed out. Utilities, consumer discretionary and financials led gains, adding about 0.83% each. Cash rate lowered to 3.6% The RBA cut interest rates by 25 basis points this month, as just about everyone was betting the central bank would. The market reacted with a quick spike that turned into some solid gains through the latter half of the day. "Because we didn't take rates as high as some other countries, it may be that we don't need to reduce rates as much either, as demand and potential supply in the economy get closer to balance and inflationary pressures ease,' RBA Governor Michele Bullock said. The term 'neutral rate' has been flying around today, as the market wonders where the RBA will settle in its monetary policy tweaking. It means a cash rate which would neither restrict nor encourage inflation, a sweet spot that would offer stable economic growth without risking uncontrolled price hikes. While we'd all love a hard and fast number for that, it's just not that simple. Bullock responded to the ABC's David Chau's question on the topic with a wide range of between 1% and 4%. 'The neutral rate is something that is a long run concept,' she explained, 'In the absence of shocks. And we are very often not in the absence of shocks. 'Our estimates are somewhere between 1 and 4. It's a very wide range. We don't put a lot of emphasis on the neutral rate in terms of thinking.' Westpac (ASX:WBC) and Commonwealth Bank (ASX:CBA) responded with instant cuts to their variable loan rates, while Macquarie (ASX:MGQ) had already signalled its intention to pass on any reductions in full. The ASX 200 Banks index added 0.74%. The banks themselves were mixed, with CBA and Macquarie lifting only marginally. ANZ (ASX:ANZ) shot up about 2%, joined by Suncorp (ASX:SUN) and QBE (ASX:QBE) while Westpac and NAB (ASX:NAB) added about 0.9% each. ASX Leaders Today's best performing stocks (including small caps): Code Name Last % Change Volume Market Cap AJL AJ Lucas Group 0.013 117% 37668546 $8,254,378 BEL Bentley Capital Ltd 0.025 56% 2524992 $1,218,047 LNU Linius Tech Limited 0.0015 50% 6247950 $6,501,216 LIN Lindian Resources 0.185 37% 22162189 $159,762,002 AM5 Antares Metals 0.008 33% 3492140 $3,089,117 AQX Alice Queen Ltd 0.004 33% 4592596 $4,154,089 PKO Peako Limited 0.004 33% 1579365 $4,463,226 ROG Red Sky Energy. 0.004 33% 1281137 $16,266,682 ANR Anatara Ls Ltd 0.009 29% 3685995 $1,495,132 SRJ SRJ Technologies 0.009 29% 2317321 $7,286,318 ZEU Zeus Resources Ltd 0.018 29% 12747199 $10,044,113 TUA Tuas Limited 7.08 28% 25147473 $2,577,974,009 GRL Godolphin Resources 0.014 27% 11757645 $4,937,606 SMS Starmineralslimited 0.038 27% 2259980 $5,613,200 SGR The Star Ent Grp 0.1125 26% 36484249 $255,312,598 AUA Audeara 0.024 26% 2473477 $3,418,753 MTC Metalstech Ltd 0.175 25% 717440 $31,087,694 CAV Carnavale Resources 0.005 25% 1067633 $16,360,874 CTO Citigold Corp Ltd 0.005 25% 5420000 $12,000,000 ERA Energy Resources 0.0025 25% 207608 $810,792,482 FRX Flexiroam Limited 0.005 25% 23901 $6,069,594 PIL Peppermint Inv Ltd 0.0025 25% 2499992 $4,662,820 PRX Prodigy Gold NL 0.0025 25% 2001571 $13,483,725 QXR Qx Resources Limited 0.005 25% 2739496 $5,241,315 VRC Volt Resources Ltd 0.005 25% 304877 $18,739,398 In the news… AJ Lucas Group (ASX:AJL) has settled a dispute over a carry agreement relating to UK shale gas exploration licences through subsidiary Cuadrilla Resources Limited, receiving a cash sum of £12.5m (about A$26m) and terminating the agreement. Antares Metals (ASX:AM5) has unearthed some promising rock chip results at the Conglomerate Creek prospect of the Mt Isa North copper and uranium project, grading up to 22% copper, 394g/t silver and 7.4 g/t gold. Mobile network firm Tuas (ASX:TUA) shares surged after raising $385m to acquire M1 Limited in a $1.43 billion deal. M1 is a digital network operator based in Singapore with offerings in mobile services, fixed services and handset and equipment sales. Audeara (ASX:AUA) is moving into the Chinese e-commerce space with a licensing agreement through Eastech Holding Limited, a Taiwan-listed company valued at about $350m. AUA will market its hearing technology under a third-party brand to be distributed via a Chinese e-commerce hearing aid provider with a strong online presence across major platforms, offering exposure to millions of potential customers. Godolphin Resources (ASX:GRL) has materially upgraded the Lewis Pond project's mineral resource, increasing gold 18% to 470koz and silver 31% to 21Moz. GRL reckons there's more room for growth in fresh lodes that haven't been incorporated into the estimate yet, and plans to do more drilling alongside metallurgical testing and a mining scoping study already underway. ASX Laggards Today's worst performing stocks (including small caps): Code Name Last % Change Volume Market Cap MEL Metgasco Ltd 0.002 -33% 134516 $5,511,260 NTM Nt Minerals Limited 0.001 -33% 8000 $1,816,354 RLC Reedy Lagoon Corp. 0.002 -33% 1999998 $2,330,120 SHE Stonehorse Energy Lt 0.005 -29% 4064735 $4,791,046 FNX Finexia Financialgrp 0.2 -27% 24487 $17,133,591 C7A Clara Resources 0.003 -25% 800 $2,353,084 LMLR Lincoln Minerals 0.003 -25% 2582442 $1,249,468 SRN Surefire Rescs NL 0.0015 -25% 8400000 $6,457,219 NAG Nagambie Resources 0.013 -24% 11895558 $13,656,140 EQS Equitystorygroupltd 0.02 -20% 1000000 $4,170,510 BUY Bounty Oil & Gas NL 0.002 -20% 101964 $3,903,680 MOH Moho Resources 0.004 -20% 284500 $3,727,070 RAN Range International 0.002 -20% 17123 $2,348,226 TMK TMK Energy Limited 0.002 -20% 1800000 $25,555,958 VEN Vintage Energy 0.004 -20% 608071 $10,434,568 EDE Eden Inv Ltd 0.038 -17% 541218 $9,452,787 GLL Galilee Energy Ltd 0.01 -17% 193760 $8,486,315 JAV Javelin Minerals Ltd 0.0025 -17% 2299 $18,756,675 KPO Kalina Power Limited 0.01 -17% 7071664 $35,195,948 RR1 Reach Resources Ltd 0.01 -17% 196086 $10,493,176 TFL Tasfoods Ltd 0.005 -17% 10000 $2,622,573 1AI Algorae Pharma 0.006 -14% 5523247 $11,811,763 RGL Riversgold 0.003 -14% 1 $5,892,994 RNX Renegade Exploration 0.003 -14% 4340000 $5,608,272 D3E D3 Energy Limited 0.315 -14% 163132 $29,008,377 In Case You Missed It Neurizon Therapeutics (ASX:NUZ) has begun manufacturing an initial registration batch of NUZ-001 tablets to potentially treat ALS and related neurodegenerative diseases. New data shows Recce Pharmaceuticals' (ASX:RCE) topical gel is highly effective against two challenging antibiotic-resistant bacteria affecting burns. AnteoTech (ASX:ADO) is breaking into the South Korean market with a distribution agreement with Kangshin Industrial Co. White Cliff Minerals' (ASX:WCN) regional drilling at the Danvers copper project in Nunavut, Canada, has extended known mineralisation and identified further sulphide mineralisation along strike. Green Critical Minerals (ASX:GCM) has transitioned into manufacturing VHD blocks, with Module 1 now commissioned at its VHD production plant. Everest Metals Corporation (ASX:EMC) has raised $4 million to advance its key trio of gold and critical minerals projects in Western Australia. QMines' (ASX:QML) high-grade copper and zinc intersections. Small language models promise faster, cheaper and more accurate AI translation, notes ASX-listed language tech company Straker (ASX:STG). Last Orders Tryptamine Therapeutics (ASX:TYP) has locked in a $2.6m credit line with Rockford Equity, secured against TYP's projected FY2026 R&D tax refund. The facility can be drawn down in $500k tranches, accruing interest at 16% per year on the outstanding balance. TYP also expects to receive an $800k R&D tax rebate from the ATO in the coming months. The fresh funding will go to fast tracking key development milestones for Tryptamine's binge eating disorder trial with Swinburne University. Trading Halts Bayan Mining and Minerals (ASX:BMM) – price query Centaurus Metals (ASX:CTM) – cap raise G11 Resources (ASX:G11) – new project acquisition Trigg Minerals (ASX:TMG) – assay results and new mineralisation discovery At Stockhead, we tell it like it is. While Tryptamine Therapeutics and Audeara are Stockhead advertisers, they did not sponsor this article.
Globe and Mail
05-08-2025
- Business
- Globe and Mail
3 Popular Stocks to Consider as Earnings Approach: DIS, FTNT, SHOP
There will be many notable companies reporting their quarterly results this week, and several have stocks with pleasant ratings regarding the renowned Zacks Rank. With representation from the consumer discretionary and tech sectors, here are three of these popular stocks that investors may want to consider as their quarterly reports approach on Wednesday, August 6. Disney – DIS Zacks Rank #2 (Buy) Reporting results for its fiscal third quarter, Disney's DIS return to prominence as a consumer discretionary leader appears to be around the corner. The media conglomerate has seen its stock rise over +30% in the last year, hitting a 52-week high of $124 a share in late June. Cost-cutting initiatives and strategic pivots have led to strong performance across Disney's core businesses. To that point, Disney has seen a comeback at the box office with major screen hits like Inside Out 2 and Lilo & Stitch topping $1 billion in global receipts while also seeing increased profitability in its streaming platforms such as Disney+ and Hulu. Like Netflix NFLX, Disney has cracked down on password sharing and introduced extra-member fees for its streaming services, boosting monetization. Plus, the recent release of the latest Fantastic Four movie and the upcoming Freakier Friday reboot are keeping Disney atop the domestic box office, with 2% and 6% growth expected on its top and bottom lines during Q3. Reassuringly, DIS still checks the box in regard to value at a reasonable 20.1X forward earnings multiple with a price to sales ratio near the optimum level of less than 2X. Fortinet – FTNT Zacks Rank #2 (Buy) In the tech sector, Fortinet FTNT is increasing in popularity thanks to its next-generation AI-powered threat detection and post-quantum cryptography readiness, which prepares organizations for a future where quantum computers could break today's widely used encryption algorithms. Coming off a record Q1 for revenue, operating margin, and free cash flow, Fortinet's top line is thought to have stretched 13% to what would be a Q2 peak of $1.62 billion. Furthermore, Q2 EPS is expected to be up 3% to $0.59, with it noteworthy that Fortinet has fueled investor sentiment by exceeding earnings expectations for a remarkable 29 consecutive quarters dating back to May of 2018. Notably, over the last year, FTNT is sitting on gains of more than +70% with the impressive quarterly EPS beats illustrated by the green arrows in the Price, Consensus, and Surprise chart below. Shopify – SHOP Zacks Rank #1 (Strong Buy) Rounding out the list of popular stocks to watch on Wednesday is Shopify SHOP, which has seen its stock spike over +15% year to date and now has staggering gains of +140% in the last year. Shopify's commerce platform has continued to grow in popularity after introducing AI-powered tools like its virtual assistant "Sidekick" and to help merchants navigate global trade complexities. Strategic partnerships with Meta Platforms META, Amazon AMZN, and TikTok have also expanded Shopify's ecosystem by increasing merchant reach and engagement. Shopify's Q2 sales are projected to spike 24% to $2.54 billion, with Q2 EPS expected to rise 8% to $0.28. Furthermore, analysts expect Shopify's Gross Merchandise Volume (GMV) to reach $81 billion, continuing a streak of seven consecutive quarters of 20%+ GMV growth. Bottom Line As it relates to portfolio-worthy stocks to consider, Disney, Fortinet, and Shopify will be three popular companies to watch as their quarterly results approach. To that point, these popular top-rated stocks look poised for more upside, but a post-earnings selloff could lead to even more compelling long-term opportunities. Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Inc. (AMZN): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
Yahoo
21-07-2025
- Business
- Yahoo
2 Reasons FOXA is Risky and 1 Stock to Buy Instead
FOX has had an impressive run over the past six months as its shares have beaten the S&P 500 by 13.8%. The stock now trades at $56.48, marking a 17.9% gain. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is there a buying opportunity in FOX, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Why Do We Think FOX Will Underperform? We're glad investors have benefited from the price increase, but we're swiping left on FOX for now. Here are two reasons why you should be careful with FOXA and a stock we'd rather own. 1. Long-Term Revenue Growth Disappoints Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, FOX's sales grew at a sluggish 5.4% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector. 2. Revenue Projections Show Stormy Skies Ahead Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect FOX's revenue to drop by 4.4%, a decrease from its 5.4% annualized growth for the past five years. This projection doesn't excite us and implies its products and services will see some demand headwinds. Final Judgment We see the value of companies helping consumers, but in the case of FOX, we're out. With its shares topping the market in recent months, the stock trades at 14.2× forward P/E (or $56.48 per share). This valuation multiple is fair, but we don't have much confidence in the company. There are better stocks to buy right now. We'd suggest looking at one of our all-time favorite software stocks. High-Quality Stocks for All Market Conditions Trump's April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
Yahoo
18-07-2025
- Business
- Yahoo
What Makes Salesforce (CRM) a Wonderful Business to Invest In?
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund underperformed its benchmark, the S&P 500 Index, but outperformed the benchmark since inception. The largest contributors to performance were financials and consumer discretionary, at the sector level, while health care and consumer staples detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Fund highlighted stocks such as Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. The one-month return of Salesforce, Inc. (NYSE:CRM) was -0.60%, and its shares gained 2.68% of their value over the last 52 weeks. On July 16, 2025, Salesforce, Inc. (NYSE:CRM) stock closed at $257.95 per share, with a market capitalization of $246.6 billion. Oakmark Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its second quarter 2025 investor letter: "Salesforce, Inc. (NYSE:CRM) is a leading technology company that offers a collection of software products aimed at providing businesses with a full front office productivity suite. We believe Salesforce is a wonderful business going through a transformation into a profitable, shareholder-focused enterprise. Since management announced their renewed focus on operating discipline a couple years ago, Salesforce's margins have increased substantially. In our view, there is further room to improve as the company leverages its unique position to help businesses deploy AI and continues to restructure its sales organization. Since exiting our position in Salesforce in December, the stock price has declined by over 30% despite continuing to report fundamental results that are in line with our expectations. We were pleased to buy the stock, but we first established our position using a put writing strategy to lower our entry price. We believed the puts were overvalued as they implied that Salesforce was among the most volatile large companies, which was completely at odds with our assessment of its business value." A customer service team in an office setting using the company's Customer 360 platform to communicate with customers. Salesforce, Inc. (NYSE:CRM) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 140 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the first quarter, which was 162 in the previous quarter. In the fiscal first quarter of 2026, Salesforce, Inc. (NYSE:CRM) delivered $9.83 billion in revenue representing an 8% increase from last year's comparable quarter. While we acknowledge the potential of CRM 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 Salesforce, Inc. (NYSE:CRM) and shared the list of must-watch AI stocks on Wall Street. 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
Yahoo
07-07-2025
- Business
- Yahoo
Xponential Fitness (XPOF): Buy, Sell, or Hold Post Q1 Earnings?
Shareholders of Xponential Fitness would probably like to forget the past six months even happened. The stock dropped 29.4% and now trades at $10.10. This may have investors wondering how to approach the situation. Is there a buying opportunity in Xponential Fitness, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we're swiping left on Xponential Fitness for now. Here are three reasons why you should be careful with XPOF and a stock we'd rather own. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Xponential Fitness's recent performance shows its demand has slowed significantly as its annualized revenue growth of 9.3% over the last two years was well below its four-year trend. Note that COVID hurt Xponential Fitness's business in 2020 and part of 2021, and it bounced back in a big way thereafter. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Xponential Fitness's operating margin has shrunk over the last 12 months, and it ended up breaking even over the last two years. Although this result isn't good, the company's elite historical revenue growth suggests it ramped up investments to capture market share. We'll keep a close eye to see if this strategy pays off. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? A company's ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). Xponential Fitness's five-year average ROIC was negative 31.4%, meaning management lost money while trying to expand the business. Its returns were among the worst in the consumer discretionary sector. Xponential Fitness isn't a terrible business, but it isn't one of our picks. Following the recent decline, the stock trades at 9× forward P/E (or $10.10 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. We'd recommend looking at one of our top digital advertising picks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
