Latest news with #dipbuying
Yahoo
09-08-2025
- Business
- Yahoo
Down 27% or more, I think these FTSE 250 shares are brilliant bargains!
The FTSE 250 index of mid-cap shares is up a healthy 6.2% so far in 2025. That's pretty good considering the severe headwinds facing the UK and global economies. But not all of the indice's members have enjoyed stellar price gains. For various reasons, the following FTSE 250 stocks have dropped a quarter in value or more in the year to date. I think this represents an attractive dip-buying opportunity that savvy investors may wish to research further. Bloomsbury: top buying opportunity? Powered by the Harry Potter franchise, Bloomsbury Publishing (LSE:BMY) shares have risen strongly over time. But signs of weakness more recently have pulled the publisher sharply lower — it's down 27.7% since 1 January alone. The chief problem I see is weakness at its academic publishing division. It's facing two issues: 'current UK and US budgetary pressures and the accelerated shift from print to digital', as the firm described in May's full-year update. These pressures pushed academic organic sales 10% lower in the 12 months to February. Risks remain, but I believe Bloomsbury's powerhouse consumer unit — and more specifically its fantasy and science fiction catalogue — makes it a great stock to consider. Harry Potter remains a colossal money spinner decades after its release. Genre heavyweight Sarah J Maas has roughly half a dozen more books to come too, boosting the company's packed pipeline of new titles. I think Bloomsbury's recent performance is a rare bump, and I'm confident a busier release schedule following a disappointing last year will help it turn things around. Investment in artificial intelligence (AI) could also revive academic demand. Today, it trades on a forward-looking price-to-earnings (P/E) ratio of 12.7 times. That's well below the five-year average of 17.4 times and I think makes it a brilliant recovery stock to think about. Greggs: shares too cheap to ignore? Without doubt, buying Greggs' (LSE:GRG) shares has proven a disaster for me. Since opening a position in late November, the baker has fallen a whopping 40.8% in value. A series of underwhelming trading statements continuing into 2025 means it's dropped 43.4% this year too. Consequently, the company's valuation has toppled — a forward P/E ratio of 12.1 times today is significantly below the 10-year average of 22-23 times. Greggs could face further turbulence as the cost-of-living crisis endures and consumers cut back. Latest financials showed like-for-like sales growth cooled to just 2.6% between January and June, while operating profit dropped 7.1%, reflecting large expansion costs. However, I believe Greggs shares are now so cheap that they merit a close look. To my mind, the business still has enormous growth potential as it builds its store network to 3,000 outlets over the next few years, up from 2,649 today. Focusing this strategy on high footfall transport hubs, as well as plans to increase the number of especially profitable franchise stores on its books, is especially encouraging to me. Greater evening trading, and rising investment in digital and delivery, also bodes well for its recovery. Indeed, I'm optimistic Greggs' share price will rebound strongly over time, and that my long-term investing strategy will pay off. With a sharply revised valuation, the baker's worth serious consideration, in my book. The post Down 27% or more, I think these FTSE 250 shares are brilliant bargains! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Greggs Plc. The Motley Fool UK has recommended Bloomsbury Publishing Plc and Greggs Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-08-2025
- Business
- Yahoo
‘Historical trends are no longer working.' This strategist says retail investors are completely baffling Wall Street.
Investors might be ready to buy Tuesday's dip in the stock market triggered by weak service-sector numbers and signs of price pressures. Our call of the day from Nationwide Investment Management Group's chief market strategist, Mark Hackett, discusses the fierce battle that's been ongoing between institutional and retail investors. He says for now, Wall Street shouldn't bet against that cohort. Why Nvidia and other chip stocks are shrugging off Trump's latest tariff threat My late husband's employer is forcing me to take 10% 401(k) distributions. Help! I plan to work until 80. Can I contribute to my IRA while taking RMDs? Friday's selloff marked a 'typical response' for the institutional investors, Hackett told MarketWatch in an interview. 'Bad jobs data on top of the tariff launch and then you had the Russia submarine issue. There's a whole lot of things together that caused the pullback in the market and then you saw Monday which was almost a complete reversal,' he said. 'To me, that is retail investors having been trained into this concept of buying a dip and it's confusing institutional investors completely at this point,' he said. 'And then you go back to the April/May timeframe where institutions were completely on the sidelines, very conservatively positioned and the retail investors was aggressively buying dips. Now it's worked so many times, at this point, the retail investor has fueled this sense of inevitability about recoveries, and that's what i think you saw [Monday] continuing a little bit today [Tuesday],' said Hackett. According to data from Interactive Brokers, some retail investors didn't even wait for Monday to buy. The retail brokerage said its cumulative net stock buy orders rose 78% on Friday from a week ago. Friday also marked the S&P 500's SPX fourth-straight losing session, the longest such streak since May 23. 'If you look back in history before the pandemic, Friday would have led to a more consistent downturn. You have the seasonal period of August and September weak, you're sitting at 22 times earnings [for the S&P 500], the market had rallied almost 30% off the [April] low. That's exactly the time you would expect this period of consolidation, downward sloping for a couple of months until you can maybe have a full-order rally,' he said. 'Historical trends are no longer working, and what it does is make institutional investors very cautious about being short on an absolute relative basis, simply because of what's happening with the retail investor,' said Hackett. That said, the nature of those investors has become predictable as they aggressively buy with each market pullback, he added. Helping those investors out has been an enhanced toolkit with access to more options, lowered tech barriers and lots of free time during the pandemic that gave them a foothold in markets. 'Retail investors have a sensitivity to momentum, a focus on thematics, and an insensitivity to high valuations,' LPL Financial head of equity research Thomas Shipp wrote in July. In a reboot of 2021, investors have this summer also been flexing their muscles on individual names, such as OpenDoor OPEN. The bottom line from Hackett is that 'you don't bet against the retail investor right now.' That's not to say that their power is unlimited and that buy-the-dip strategy might run out of steam, but now 'the retail investor confusing the institutional investor out of doing what they want,' he said. He said the last time retail investors ran into trouble was the spring of 2022 when Russia invaded Ukraine and markets endured a lengthy stretch of weakness, he noted. 'But again, you got to October and then for no reason that felt real at the time, you saw this rebound and a very aggressive move from there,' he said. Institutions coming into the final quarter of this year are struggling because major technology stocks are so heavily weighed already and they can't have most of a diversified portfolio just sitting in seven major technology stocks. 'Layer on top of that the fact that most of these people were very conservatively positioned back in April and now you're chasing, you're running from behind and it's a terrifying place to be,' he said. His expectation is that markets could consolidate through September, until tailwinds from U.S. government's spending package and elsewhere start to kick in. That could then build up to a year-end rally, in his view. Hackett says the retail cohort should take care right now, as markets bump up against high valuations, and economic uncertainty swirls. 'Now wouldn't be the time where I would be aggressively shifting my portfolio to risk on,' he said. Read: U.S. data is a bedrock of the American economy. Now it's under attack. U.S. stocks SPX DJIA COMP opened higher but paring gains, with Treasury yields BX:TMUBMUSD10Y BX:TMUBMUSD02Y mostly steady and gold prices GC00 dropping. Oil prices CL00 BRN00 are climbing. Key asset performance Last 5d 1m YTD 1y S&P 500 6299.19 -1.12% 1.18% 7.10% 20.21% Nasdaq Composite 20,916.55 -0.86% 2.44% 8.32% 27.80% 10-year Treasury 4.225 -15.40 -11.50 -35.10 27.10 Gold 3426.4 2.96% 3.13% 29.82% 41.41% Oil 65.52 -6.80% -4.06% -8.84% -13.16% Data: MarketWatch. Treasury yields change expressed in basis points Need to Know starts early and is updated until the opening bell, but to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern. Walt Disney DIS beat on earnings and missed on revenue as the NFL said it would take a 10% stake in Disney's ESPN. Shares are down. McDonald's stock MCD is rising after the fast-food giant posted forecast-beating results. Uber UBER reported better-than-forecast results and announced a $20 billion share buyback program. Airbnb ABNB and DoorDash DASH will report after the close. Super Micro SMCI backed off a lofty forecast and the server maker's stock is down 16%. Disappointing Snap SNAP earnings are sending the Snapchat parent's shares tumbling. Shares of Advanced Micro Devices AMD are dropping even after the chipmaker's upbeat revenue outlook. Rivian Automotive shares RIVN getting hit after EV maker forecast a bigger loss for 2025. Banned Coinbase ad portrays a dystopian Britain — with only crypto as an exit. OpenAI in talks for share sale at $500 billion valuation. AI is listening to your meetings. Watch what you say. Richard Bernstein Advisors, in a post on X, shows how Tuesday's Institute for Supply Management services survey stacks up looking back over the past 18 years: 'Services #ISM now screaming LATE-CYCLE #STAGFLATION. Prices going up and New Orders going down. Not seen in ~18 years since before the [global financial crisis].' These were the top-searched stock-market tickers on MarketWatch as of 6 a.m.: Ticker Security name NVDA Nvidia TSLA Tesla AMD Advanced Micro Devices PLTR Palantir Technologies SMCI Super Micro Computer GME GameStop AMZN Amazon AAPL Apple TSM Taiwan Semiconductor Manufacturing NIO NIO The U.K.'s viral birthday-cake sandwich. A driver got caught for speeding a mere 124 miles per hour above the speed limit Denim war? Beyonce versus Sydney Sweeney. Eli Lilly's weight-loss pill didn't work so well, and the stock is plunging Mortgage rates plunge to 10-month low, opening window of opportunity for house hunters SoundHound earnings show a growing embrace of voice AI, and the stock is surging 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
Wall Street Journal
04-08-2025
- Business
- Wall Street Journal
Dow Bounces Back From Last Week's Slump
Stocks rallied Monday, with last week's worries about the economy giving way to broad dip-buying and rate-cut optimism. All three major U.S. indexes rose more than 1%, with each notching its largest daily percentage gain since May. The rally was broad-based, encompassing everything from utilities to meme stocks.
Yahoo
23-07-2025
- Business
- Yahoo
Bullish retail traders are the biggest force behind the stock market's latest rally to all-time highs
The stock market's latest push to all-time highs has largely been driven by dip-buying retail investors. Barclays said the 26% climb since early April was spurred by individuals rather than institutions. Retail traders bought $270 billion in stocks in the first half, according to a JPMorgan analysis. You can thank the little guys for pushing the stock market to its latest all-time high. Retail traders have been on a dip-buying frenzy since President Donald Trump announced his tariffs in April. Analysts at Barclays estimated that retail traders ploughed around $50 billion into global stocks in the last month. Stock-buying among institutional investors has paled by comparison, with hedge fund re-risking remaining "modest" and their long positions in US stocks remaining below the long-term median, the bank said on Tuesday. The data suggests retail investors are largely driving the red-hot rally to record highs. The S&P 500, which weathered a historic sell-off in early April, is now up 26% from its low on April 8. "In retrospect, 'Liberation day' ushered in historic retail-driven 'buy-the-dip,'" analysts wrote. Wall Street has been keeping a close eye on the swelling appetite for US stocks among retail traders. In a note to clients this month, JPMorgan estimated that retail investors purchased a net $270 billion worth of stocks over the first half of the year. The bank added that it sees retail traders buying another $360 billion worth of stocks through the end of 2025, which could push the S&P 500 higher by 5%-10%. A separate analysis from Vanda Research estimated that cumulative retail net purchases of stocks and exchange-traded funds hit $155.3 billion in the first six months. That's the largest inflow over the first half of the year in at least the last 10 years, the firm said in a note. "Portfolio health is likely a strong factor behind elevated retail participation so far in Q2," Vanda Research's Ianchini wrote in a separate note last week. "That, plus a successful dip-buying effort in April, and a still-OK labor market may help explain why mom-and-pop traders remain a resilient source of demand for equities in 2025." According to an eToro survey conducted in May, 61% of retail investors say they're dip-buyers, with the majority buying into the market once it drops 18% or more. In particular, younger traders said they were most likely to change their investing strategy when the market was turbulent, with 91% of Gen Z investors and 87% of millennials saying that they react when volatility increases. Read the original article on Business Insider 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
Bloomberg
20-06-2025
- Business
- Bloomberg
Investors Are Torn Between Selling Equities or Buying the Dip
Stock exposure is high enough to cause a sharp risk-off move, yet light enough to spark a round of dip-buying, and all it would take is a single headline. US equities have whipsawed in recent days as traders track headlines from the Middle East. Tensions are building at a moment when various forces that could pull the market higher — or lower — are at play.
