Latest news with #iSharesU.S.ManufacturingETF
Yahoo
30-04-2025
- Automotive
- Yahoo
Trump Cuts Auto Tariffs: What Does It Mean for FTXR, MADE?
The White House confirmed Tuesday that President Donald Trump will sign an executive order to soften the impact of automotive tariffs, preventing duties on foreign-made cars from stacking on top of other levies and providing reimbursement options for auto-parts tariffs. This decision comes as automakers and the broader transportation sector grapple with regulatory uncertainty and rising costs, with the White House press secretary announcing Trump would sign the executive order later Tuesday, according to CNBC reporting. The auto industry has lobbied intensely for relief, with six major policy groups representing manufacturers, suppliers and dealers joining forces last week to warn the administration that the 25% tariffs on imported parts could jeopardize U.S. automotive production and harm suppliers already "in distress," as reported by CNBC. The impact of these tariffs is reflected in the performance of ETFs holding major automakers like Ford Motor Co. (F) and General Motors Co. (GM). The First Trust Nasdaq Transportation ETF (FTXR), which has large holdings in both companies, has seen its performance decline in recent months. FTXR, which tracks an index of 30 U.S. transportation companies including auto manufacturers and electric-vehicle makers, holds Ford (9.6%), General Motors (8.8%) and Tesla Inc. (TSLA) (8.9%) among its top holdings, based on data. The fund has experienced challenges, declining 19.4% over the past three months and 16.7% year to date. The transportation-focused ETF has also experienced outflows, with investors withdrawing $1.3 million over the past month and $1.1 million year to date. In contrast, the iShares U.S. Manufacturing ETF (MADE), which also holds positions in Ford (3.3%) and General Motors (3.9%), has shown more resilience with smaller declines of 8.4% over three months and around 7% year to date. MADE has attracted new investment, with inflows of $2.5 million over the past month and $4.8 million year to date, data show. These contrasting ETF performances highlight how investors are responding differently to the auto industry's challenges amid the evolving trade policies. The Wall Street Journal reports that under the new measures, automakers paying Trump's 25% automotive tariffs won't be charged for other duties, such as those on steel and aluminum. The administration will also modify its approach to the upcoming 25% tariffs on foreign auto parts scheduled to take effect May 3. Meanwhile, General Motors acknowledged the uncertain trade environment on Tuesday, with shares down 1% after the company reported first-quarter earnings and said it was reconsidering its full-year outlook due to concerns over tariffs and macroeconomic uncertainty, according to | © Copyright 2025 All rights reserved
Yahoo
30-04-2025
- Automotive
- Yahoo
Trump Cuts Auto Tariffs: What Does It Mean for FTXR, MADE?
The White House confirmed Tuesday that President Donald Trump will sign an executive order to soften the impact of automotive tariffs, preventing duties on foreign-made cars from stacking on top of other levies and providing reimbursement options for auto-parts tariffs. This decision comes as automakers and the broader transportation sector grapple with regulatory uncertainty and rising costs, with the White House press secretary announcing Trump would sign the executive order later Tuesday, according to CNBC reporting. The auto industry has lobbied intensely for relief, with six major policy groups representing manufacturers, suppliers and dealers joining forces last week to warn the administration that the 25% tariffs on imported parts could jeopardize U.S. automotive production and harm suppliers already "in distress," as reported by CNBC. The impact of these tariffs is reflected in the performance of ETFs holding major automakers like Ford Motor Co. (F) and General Motors Co. (GM). The First Trust Nasdaq Transportation ETF (FTXR), which has large holdings in both companies, has seen its performance decline in recent months. FTXR, which tracks an index of 30 U.S. transportation companies including auto manufacturers and electric-vehicle makers, holds Ford (9.6%), General Motors (8.8%) and Tesla Inc. (TSLA) (8.9%) among its top holdings, based on data. The fund has experienced challenges, declining 19.4% over the past three months and 16.7% year to date. The transportation-focused ETF has also experienced outflows, with investors withdrawing $1.3 million over the past month and $1.1 million year to date. In contrast, the iShares U.S. Manufacturing ETF (MADE), which also holds positions in Ford (3.3%) and General Motors (3.9%), has shown more resilience with smaller declines of 8.4% over three months and around 7% year to date. MADE has attracted new investment, with inflows of $2.5 million over the past month and $4.8 million year to date, data show. These contrasting ETF performances highlight how investors are responding differently to the auto industry's challenges amid the evolving trade policies. The Wall Street Journal reports that under the new measures, automakers paying Trump's 25% automotive tariffs won't be charged for other duties, such as those on steel and aluminum. The administration will also modify its approach to the upcoming 25% tariffs on foreign auto parts scheduled to take effect May 3. Meanwhile, General Motors acknowledged the uncertain trade environment on Tuesday, with shares down 1% after the company reported first-quarter earnings and said it was reconsidering its full-year outlook due to concerns over tariffs and macroeconomic uncertainty, according to | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Is Woodward Inc. (NASDAQ:WWD) a Small-Cap Manufacturing Stock Hedge Funds Are Buying?
We recently published a list of the 15 Small-Cap Manufacturing Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Woodward Inc. (NASDAQ:WWD) stands against other small-cap manufacturing stocks. Earlier on February 26, Liz Ann Sonders, Charles Schwab chief investment strategist, joined CNBC's 'Squawk on the Street' to discuss how manufacturing could stall due to the ongoing policy uncertainty. She thinks that the current market sentiment is focused on concerns about economic growth more than on inflation. Sonders noted a list of weakening indicators, such as consumer sentiment surveys, retail sales, and services PMI figures. She emphasized that rising policy uncertainty also manifests in reduced intentions to purchase large capital goods and causes a pullback in capital expenditures and spending plans. Sonders explained that, over the past year, market yields have alternated between responding primarily to inflation data and growth signals, both during periods of increases and declines. She thinks that the recent downward movement in yields is driven by worries about slowing growth more than by expectations of declining inflation. This has led investors to favor more defensive sectors within the market, which reflects a broader sense of caution. Recent PMI data has shown services activity starting to decline, but manufacturing has picked up. This could result in a potential positive convergence between the two sectors. But Sonders thinks that this improvement in manufacturing could be at risk due to the policy-related uncertainty still ongoing. Therefore, many companies within the manufacturing sector are now increasingly cautious about future investments and expansion. Sonders also pointed out that while there have been discussions about significant deficit reductions, originally targeting $2 trillion, the actual figures are much smaller. The current visible cuts amount to less than $10 billion. She argued that it is premature to focus on these spending cuts alone, as the effects of tariffs, immigration, and deportation policies, and regulatory changes are collectively putting downward pressure on growth estimates and upward pressure on inflation expectations. She added that while tax policy changes are being discussed, these are more likely to affect the year-end outlook rather than the near-term trajectory. We first sifted through financial media reports, iShares U.S. Manufacturing ETF, Vanguard Industrials ETF, and Insider Monkey's Q4 2024 hedge funds database reports to compile a list of the small-cap manufacturing stocks hedge funds are buying. For this article, we define small-cap stocks as those that trade between $10 billion and $20 billion, as of April 25. We then selected the top 15 stocks and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close-up of a fuel pump operated by a robotic arm, symbolizing the company's technology-driven industrial solutions. Market Capitalization as of April 25: $10.8 billion Number of Hedge Fund Holders: 35 Woodward Inc. (NASDAQ:WWD) designs, manufactures, and services control solutions for the aerospace and industrial markets. It operates through two segments: Aerospace and Industrial. Its products are used on commercial and private aircraft & rotorcraft, as well as on military fixed-wing aircraft & rotorcraft, guided weapons, and other defense systems. Wooward's Aerospace segment made a $494 million revenue in Q1 2025, which was up 7% year-over-year. While commercial OEM sales declined by 10% due to a pause in deliveries of certain product lines to Boeing, this impact was offset by growth in other areas. For instance, commercial aftermarket sales surged by 19%, defense OEM sales increased by 21%, and defense aftermarket sales grew by 8%. The Aerospace segment's earnings for Q1 reached $95 million, which was 19.2% of segment sales. Woodward Inc. (NASDAQ:WWD) now has demand from airframe and engine OEMs, which indicates growth in the aerospace market. Woodward is preparing to meet this demand through actions like direct labor hiring and close collaboration with suppliers to address any ongoing supply chain challenges. Overall, WWD ranks 12th on our list of the small-cap manufacturing stocks hedge funds are buying. While we acknowledge the growth potential of WWD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Is Textron Inc. (NYSE:TXT) a Small-Cap Manufacturing Stock Hedge Funds Are Buying?
We recently published a list of the 15 Small-Cap Manufacturing Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Textron Inc. (NYSE:TXT) stands against other small-cap manufacturing stocks. Earlier on February 26, Liz Ann Sonders, Charles Schwab chief investment strategist, joined CNBC's 'Squawk on the Street' to discuss how manufacturing could stall due to the ongoing policy uncertainty. She thinks that the current market sentiment is focused on concerns about economic growth more than on inflation. Sonders noted a list of weakening indicators, such as consumer sentiment surveys, retail sales, and services PMI figures. She emphasized that rising policy uncertainty also manifests in reduced intentions to purchase large capital goods and causes a pullback in capital expenditures and spending plans. Sonders explained that, over the past year, market yields have alternated between responding primarily to inflation data and growth signals, both during periods of increases and declines. She thinks that the recent downward movement in yields is driven by worries about slowing growth more than by expectations of declining inflation. This has led investors to favor more defensive sectors within the market, which reflects a broader sense of caution. Recent PMI data has shown services activity starting to decline, but manufacturing has picked up. This could result in a potential positive convergence between the two sectors. But Sonders thinks that this improvement in manufacturing could be at risk due to the policy-related uncertainty still ongoing. Therefore, many companies within the manufacturing sector are now increasingly cautious about future investments and expansion. Sonders also pointed out that while there have been discussions about significant deficit reductions, originally targeting $2 trillion, the actual figures are much smaller. The current visible cuts amount to less than $10 billion. She argued that it is premature to focus on these spending cuts alone, as the effects of tariffs, immigration, and deportation policies, and regulatory changes are collectively putting downward pressure on growth estimates and upward pressure on inflation expectations. She added that while tax policy changes are being discussed, these are more likely to affect the year-end outlook rather than the near-term trajectory. We first sifted through financial media reports, iShares U.S. Manufacturing ETF, Vanguard Industrials ETF, and Insider Monkey's Q4 2024 hedge funds database reports to compile a list of the small-cap manufacturing stocks hedge funds are buying. For this article, we define small-cap stocks as those that trade between $10 billion and $20 billion, as of April 25. We then selected the top 15 stocks and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A military cargo plane landing at its destination, signifying the strength of its defense arm. Market Capitalization as of April 25: $12.35 billion Number of Hedge Fund Holders: 29 Textron Inc. (NYSE:TXT) manufactures, sells, and services different aircraft for the defense, industrial, and commercial businesses. It has six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Bell segment manufactures and supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The Bell segment's revenue reached $983 million in Q1 2025, which was a 35% increase year-over-year. On the military side, Bell grew due to the execution of the Future Long-Range Assault Aircraft (FLARA) program and strengthened military support programs. As the FLARA program progresses, the focus for 2025 includes design maturation and achieving other related deliverables. On the commercial side, Textron Inc. (NYSE:TXT) delivered 29 helicopters in Q1 2025, which was an increase from the 18 delivered in Q1 2024. Bell secured a contract for 5 additional CMV-22 aircraft and extended production through 2027. Furthermore, Bell announced a purchase agreement with Air Methods for 15 IFR-configured 407 GXIs with an option for 12 more. Deliveries for this are slated to begin later in 2025. Overall, TXT ranks 15th on our list of the small-cap manufacturing stocks hedge funds are buying. While we acknowledge the growth potential of TXT, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TXT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Is Snap-On Inc. (NYSE:SNA) a Small-Cap Manufacturing Stock Hedge Funds Are Buying?
We recently published a list of the 15 Small-Cap Manufacturing Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Snap-On Inc. (NYSE:SNA) stands against other small-cap manufacturing stocks. Earlier on February 26, Liz Ann Sonders, Charles Schwab chief investment strategist, joined CNBC's 'Squawk on the Street' to discuss how manufacturing could stall due to the ongoing policy uncertainty. She thinks that the current market sentiment is focused on concerns about economic growth more than on inflation. Sonders noted a list of weakening indicators, such as consumer sentiment surveys, retail sales, and services PMI figures. She emphasized that rising policy uncertainty also manifests in reduced intentions to purchase large capital goods and causes a pullback in capital expenditures and spending plans. Sonders explained that, over the past year, market yields have alternated between responding primarily to inflation data and growth signals, both during periods of increases and declines. She thinks that the recent downward movement in yields is driven by worries about slowing growth more than by expectations of declining inflation. This has led investors to favor more defensive sectors within the market, which reflects a broader sense of caution. Recent PMI data has shown services activity starting to decline, but manufacturing has picked up. This could result in a potential positive convergence between the two sectors. But Sonders thinks that this improvement in manufacturing could be at risk due to the policy-related uncertainty still ongoing. Therefore, many companies within the manufacturing sector are now increasingly cautious about future investments and expansion. Sonders also pointed out that while there have been discussions about significant deficit reductions, originally targeting $2 trillion, the actual figures are much smaller. The current visible cuts amount to less than $10 billion. She argued that it is premature to focus on these spending cuts alone, as the effects of tariffs, immigration, and deportation policies, and regulatory changes are collectively putting downward pressure on growth estimates and upward pressure on inflation expectations. She added that while tax policy changes are being discussed, these are more likely to affect the year-end outlook rather than the near-term trajectory. We first sifted through financial media reports, iShares U.S. Manufacturing ETF, Vanguard Industrials ETF, and Insider Monkey's Q4 2024 hedge funds database reports to compile a list of the small-cap manufacturing stocks hedge funds are buying. For this article, we define small-cap stocks as those that trade between $10 billion and $20 billion, as of April 25. We then selected the top 15 stocks and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A workshop full of tools and supplies, showcasing the range of products available. Market Capitalization as of April 25: $16.15 billion Number of Hedge Fund Holders: 32 Snap-On Inc. (NYSE:SNA) manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions. It operates through the Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. It serves several industries that range from aviation & aerospace to infrastructure construction. The company made a total revenue of $1.14 billion in Q1 2025. Although this was a ~3.5% decline year-over-year, Snap-on's RSNI (Repair Systems & Information) segment grew its sales by ~3.7% in this quarter, which was driven by RSNI's software-packed offerings. Notably, software sales within the segment grew at a higher rate than the overall increase in RSNI revenue. The consistent performance of this segment positions RSNI as a growth engine and profit center for Snap-On Inc. (NYSE:SNA). RSNI's products are also becoming increasingly effective due to their ability to use their database, which is further enhanced by the integration of AI. AI facilitates the translation of technicians' natural language descriptions of repairs into the database more efficiently. Ariel Focus Fund stated the following regarding Snap-on Incorporated (NYSE:SNA) in its Q4 2024 investor letter: 'Tool innovator, Snap-on Incorporated (NYSE:SNA) was the top contributor to performance in the period as the company continues to effectively navigate the growing complexity of the automotive repair industry. Amidst a challenging macro backdrop, SNA began redirecting product design, capacity and marketing efforts towards more affordable hand tools resulting in a sequential improvement in quarterly sales and gross margin expansion. We believe these results highlight SNA's differentiated value proposition to its end markets, particularly as it continues to respond to real-time feedback and invest in new products to service unique needs of original equipment manufacturers. In our view, the automotive repair industry sports a favorable runway due to aging vehicles and the increased technological complexity associated with repair.' Overall, SNA ranks 14th on our list of the small-cap manufacturing stocks hedge funds are buying. While we acknowledge the growth potential of SNA, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
