Latest news with #investorsentiment
Yahoo
03-08-2025
- Business
- Yahoo
nVent Electric (NVT) Climbs Over 14% on Raised Sales Growth
We recently published nVent Electric plc (NYSE:NVT) is one of the companies that stood stronger last week. nVent Electric grew its share prices by 14.45 percent week-on-week as investor sentiment was boosted by an optimistic outlook for the year. Encouraged by strong sales and order volumes during the past quarters, nVent Electric plc (NYSE:NVT) raised its sales growth for full-year 2025 to 24 to 26 percent, from the 19 to 21 percent projected previously. The new guidance range represents 8 to 10 percent organic sales growth versus prior guidance of 5 to 7 percent. Full-year GAAP EPS was also pegged at $2.48 to $2.56 while adjusted EPS was projected to hit $3.22 to $3.30. These compare with previous guidance of $2.48 to $2.58 on a GAAP basis, and adjusted EPS of $3.03 to $3.13. In the third quarter alone, sales were targeted to hit 27 to 29 percent, with organic sales growth of 11 to 13 percent. GAAP EPS was targeted at $0.67 to $0.69, while adjusted EPS was expected at $0.86 to $0.88. In the first half of the year, net income jumped by 117 percent to $470.2 million from $216.1 million in the same period last year, while revenues grew by 20 percent to $1.77 billion from $1.47 billion year-on-year. Copyright: kadmy / 123RF Stock Photo Net income in the second quarter, however, dipped by 1.3 percent to $109.5 million from $111 million year-on-year, while revenues increased by 30 percent to $963.1 million from $739.8 million year-on-year. While we acknowledge the potential of NVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
02-08-2025
- Business
- Yahoo
Meta & Microsoft crushed on earnings, fueling market rally
Meta (META) and Microsoft (MSFT) crushed earnings expectations and are powering the larger market rally. Yahoo Finance Senior Reporters Josh Schafer and Brooke DiPalma break down how artificial intelligence (AI) spending is reshaping investor sentiment and fueling Big Tech gains. To watch more expert insights and analysis on the latest market action, check out more Morning Brief. Josh, let's start with you on these blowout numbers from Microsoft and meta that really, I think we knew expectations were high going to these reports. We've been talking about them, could they possibly beat expectations that were so elevated? And yep, they did. Actually they didn't just beat them, they crushed them, right? I think that's the real realistic way to weigh this out. You're looking at Microsoft stock up over 8% in pre-market, going to hit a $4 trillion market cap like you said. Meta stock up about 11% pre-market. These are large cap stocks that were already trading at or near record highs and the rally is continuing and it's because when you look at the numbers, the story had been, okay, they're going to continue to grow earnings, but earnings growth will start decelerating. Well, look at the numbers. Microsoft grew earnings by 23% in the prior quarter year-over-year. That's the first time Microsoft has grown earnings by over 20% going back five quarters. Meta grew earnings by 38%. That's an acceleration from its year-over-year earnings growth that you saw last quarter at about 36%. And then you look at the key metrics that these companies often trade off of, look at Microsoft Azure growth. Microsoft Azure growth surprised by 4%. Uh, Brent Thilla analyst over at Jeffries was pointing out that Microsoft Azure growth has not surprised by that much in several years. I mean, look at this chart. There used to be a lot of surprises when it came to Azure growth and it was always surprising to the upside. That story had not necessarily been the case over the last couple quarters. It wasn't a massive beater. Well, it was last night and of course, the key driver being AI. So just when you think about the themes that have been driving these stocks, the big tech companies came out and explained that those are going to continue to keep growing. I'll close out with capex here. Also Philips Jeffries looking at meta capex, they had estimated that meta capex would grow by 8% in 2026. Now those estimates after last night's numbers are up to 44%. So not only are they investing AI in AI, but they're showing up in the earnings. So really the rallies, I think start to make sense in these stocks. Well, and it's so fascinating there, right? Because if meta had said this a year ago or two years ago, this would not be happening with the stock, right? You know, for a while there, meta was getting punished for its spending because people were not seeing the payoff that they wanted to see from things like the metaverse, right? So now this has really been a sea change in how the street thinks about this story and Brook, certainly investors and analysts are taking notice here. It does feel like looking through the lens of these numbers that we're at a little bit of a tipping point in terms of the AI story. Absolutely, Julie. Uh one note from Keybank this morning actually pointed out that compared to meta's Metaverse vision that they had, this AI revolution is a lot more clear. We saw meta's investment in AI and their their significant spend in what the CEO there is uh Mark Zuckerberg is calling the super intelligence really play out when it comes to engagement and advertisements over this past quarter. And that's giving Wall Street and analysts really this key way, this insight into how exactly this could eventually work out for the social media platform. And that's where we're seeing this rally this morning come from. This optimism around what could be and what continues to be this AI revolution. We had a note out from uh uh from bull Dan Ives on the street there saying that investors are not even fully appreciating the tidal wave of growth on the horizon there from the $2 trillion of spending over the next three years coming from the enterprise and government spending around AI technology and use cases. And so it's interesting to see here how this is a different story for meta, a different story for Microsoft, really this turning point that we're seeing here and it's worth noting that tech now makes up almost one third of the S&P 500 really contributing to this rally here, and that is the highest proportion since 2008. And so after this momentum that we're hearing from the companies about what exactly this AI road map is, there's certainly lots of optimism moving into futures today. Yeah, Josh, talk to us a little bit more about uh concentration here because that, you know, there's a lot of hand wringing, but when it works, it works. It's worked for over two years now at this point, right, Julie? And but it certainly worked off the bottom to your point, right? So if you just look at a three-month chart of round Hill's Magnificent 7 Index versus the S&P 500, that mag 7 index has once again been outperforming significantly. I mean, I think the mag 7 index since about mid- April is up over 20%. There you go. It's up 24% compared to 14% for the regular S&P 500. So that shows you large cap tech really leading there. Then you flip over to something like the equal weight S&P 500 versus the regular S&P 500. Should note the equal weight also recently hit an all-time high, right? We were just talking about that last week. There's been other stocks participating in the rally, but the white line there, the market cap weight continuing to outperform shows you what's really leading the rally. And it's been tech, it's been AI. We use that term mag 7 a lot, but you have to throw names like Broadcom in there and really the broadening of this AI trade. I think you're starting to see that being talked about this morning too. I saw city uh, making a move on core weave this morning due to all this AI investment. Those analysts now feel better about that stock after the rally that it's seen. So it's the broadening of this AI trade and that sort of leading the market higher, and it also is having an impact on the economy too, right? You and I, Julie, were talking about a note out from Neil Data over at RenMac this morning. He was taking a look at GDP contributions, and you could argue looking at certain metrics inside the GDP release that actually he's looking at here, investment in processing equipment plus software, that's your white line. That has been a larger contributor to GDP than consumer spending. So what these companies are spending again, spreads through the economy and then perhaps builds out a broadening of that trade into other sectors that benefit from big tech investing in this technology. And that's the market story that has really been shaping this bull market and feels like it is going to keep carrying it at least this morning and perhaps through the next couple weeks as we sort of break through these earnings. Yeah, I mean that is a mind blowing idea that that capex cycle is a larger part of GDP now than consumer spending. We'll see if it stays that way. Related Videos Bad news flurry, IPO market, crypto dive: Market takeaways Earnings, Fed commentary, consumer credit: What to Watch IPO market heats up: These 4 names prepare to go public next Berkshire Hathaway earnings: 'Perfect' stock to own when 'worried' 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
26-07-2025
- Business
- Yahoo
Enphase (ENPH) Tumbles 14% on Weak Q3 Revenue Outlook
We recently published . Enphase Energy, Inc. (NASDAQ:ENPH) is one of the worst performers on Wednesday. Enphase Energy fell by 14.16 percent on Wednesday to end at $36.48 apiece as investor sentiment was dampened by a weak revenue outlook for the third quarter of the year. In a statement, Enphase Energy, Inc. (NASDAQ:ENPH) said that it expects revenues for the current quarter to end as low as $330 million or increase to as high as $370 million. Quarter-on-quarter, this would translate to expectations of either a 9 percent drop or a 1.2-percent increase. According to Enphase Energy, Inc. (NASDAQ:ENPH) remains a key headwind for the company, but said that it was exploring steps to diversify its supply chain and reduce reliance on Chinese components, where tariffs are steep. Copyright: lassedesignen / 123RF Stock Photo In the second quarter of the year, Enphase Energy, Inc. (NASDAQ:ENPH) achieved a 242-percent jump in net income at $37 million versus the $10.8 million in the same period last year. Revenues were also higher by 19.8 percent to $363 million from $303 million year-on-year. While we acknowledge the potential of ENPH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . 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
20-07-2025
- Business
- Yahoo
LGI Homes (NASDAQ:LGIH) sheds US$96m, company earnings and investor returns have been trending downwards for past five years
Generally speaking long term investing is the way to go. But unfortunately, some companies simply don't succeed. For example the LGI Homes, Inc. (NASDAQ:LGIH) share price dropped 55% over five years. That's an unpleasant experience for long term holders. And some of the more recent buyers are probably worried, too, with the stock falling 51% in the last year. If the past week is anything to go by, investor sentiment for LGI Homes isn't positive, so let's see if there's a mismatch between fundamentals and the share price. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Looking back five years, both LGI Homes' share price and EPS declined; the latter at a rate of 1.7% per year. This reduction in EPS is less than the 15% annual reduction in the share price. This implies that the market was previously too optimistic about the stock. The low P/E ratio of 6.50 further reflects this reticence. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. A Different Perspective While the broader market gained around 16% in the last year, LGI Homes shareholders lost 51%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand LGI Homes better, we need to consider many other factors. For example, we've discovered 1 warning sign for LGI Homes that you should be aware of before investing here. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
19-07-2025
- Business
- Yahoo
Recursion Pharmaceuticals (RXRX) Sees 14% Price Surge Over Last Month
Recursion Pharmaceuticals recently experienced a share price increase of 14% over the last month. This upward movement comes amid a flat broader market trend in the last week and coincides with a stable market performance rising 15% over the past year. While the latest key developments surrounding the company have not been provided, any events from the last month would either reinforce or counteract the broader market dynamics. Despite market predictions anticipating 15% annual earnings growth in the coming years, RXRX's recent price shift stands out, potentially indicative of company-specific factors influencing investor sentiment. We've discovered 3 risks for Recursion Pharmaceuticals (1 is a bit unpleasant!) that you should be aware of before investing here. The end of cancer? These 25 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. Recursion Pharmaceuticals' recent uptick in share price could signify a shift in investor sentiment, aligning with ongoing trials and partnerships that underscore its potential for future growth. Despite a 23.26% decline in total shareholder returns over the past year, the recent 14% monthly rebound could reflect optimism surrounding the positive clinical trials of REC-617 and REC-994, as these developments promise enhanced revenue streams and potential earnings growth. Within the past year, the company's performance, while underwhelming compared to a 15% rise in the broader market, remains affected by its significant cash burn and R&D expenditures, which weigh on profitability. Analysts project a revenue growth rate of 39.9% annually, suggesting that recent developments may bolster these projections, even though profitability remains elusive in the foreseeable future. The current share price of US$5.84 is approximately 22% below the analysts' consensus price target of US$7.14. This gap implies potential upside, assuming that the drivers behind the share price increase materialize as anticipated. However, the disparity also highlights uncertainties, particularly given analysts' differing price targets ranging from US$4.00 to US$10.00. As investors evaluate the situation, these factors underscore both the potential and the risks inherent in Recursion Pharmaceuticals' evolving landscape. Understand Recursion Pharmaceuticals' track record by examining our performance history report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RXRX. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
