Latest news with #marketpullback
Globe and Mail
4 days ago
- Business
- Globe and Mail
Zacks.com featured highlights Disney, BJ's Wholesale Club, Ralph Lauren and McKesson
For Immediate Release Chicago, IL – August 5, 2025 – The stocks in this week's article are The Walt Disney Co. DIS, BJ's Wholesale Club Holdings, Inc. BJ, Ralph Lauren Corp. RL and McKesson Corp. MCK. Disney & 3 Other Stocks with Strong Interest Coverage to Buy Now The recent market pullback, triggered by fresh tariffs and a stark slowdown in job growth, has shaken investor confidence. With July nonfarm payrolls rising by just 73,000, far below expectations, and June's numbers revised drastically downward, the labor market appears weaker than initially thought. This deteriorating backdrop, combined with renewed trade tensions, has not only fueled expectations of a Federal Reserve rate cut but also created a wave of risk aversion, sending major indices sharply lower. In such uncertain conditions, relying solely on stock price movements without understanding the company's fundamentals can cause investors to lose money. Investors must carefully review a company's financial health to make informed decisions, especially in today's unpredictable market. While sales and earnings are often the go-to metrics, they can sometimes be misleading and may not show whether a company has the financial strength to cover its obligations. This is where the coverage ratio holds the key — a higher ratio signals that a company is more capable of meeting its financial commitments. The Walt Disney Co., BJ's Wholesale Club Holdings, Inc., Ralph Lauren Corp. and McKesson Corp. have impressive interest coverage ratios. Why Interest Coverage Ratio? The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt. Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company's creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision. Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense. The interest coverage ratio suggests how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest. An interest coverage ratio lower than 1 suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company's past performance to determine whether the interest coverage ratio has improved or worsened over time. Here are four of the nine stocks that qualified the screening: Walt Disney, an iconic name in entertainment and media, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 16.4%, on average. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Walt Disney's current financial-year sales and EPS calls for growth of 4% and 16.3%, respectively, from the year-ago period. The stock has rallied 32.9% in the past year. BJ's Wholesale Club, one of the leading operators of membership warehouse clubs, carries a Zacks Rank #2 and has a VGM Score of B. BJ delivered a trailing four-quarter earnings surprise of 17.7%, on average. The Zacks Consensus Estimate for BJ's Wholesale Club's current financial-year sales and EPS suggests growth of 5.5% and 6.2%, respectively, from a year ago. The stock has risen 29.1% in the past year. Ralph Lauren, a global leader in the design, marketing and distribution of luxury lifestyle products, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 9%, on average. The Zacks Consensus Estimate for Ralph Lauren's current financial-year sales and EPS calls for growth of 3.8% and 11.8%, respectively, from the year-ago period. The stock has advanced 83.9% in the past year. McKesson Corporation, a diversified healthcare services leader, carries a Zacks Rank #2 with a VGM score of A. The company has a trailing four-quarter earnings surprise of 3.9%, on average. The Zacks Consensus Estimate for McKesson Corporation's current financial-year sales and EPS implies growth of 13.1% and 12.7%, respectively, from the year-ago period. The stock has risen 14% in the past year. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and back test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. For the rest of this Screen of the Week article please visit at: Follow us on Twitter: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Contact: Jim Giaquinto Company: Phone: 312-265-9268 Email: pr@ Visit: provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. McKesson Corporation (MCK): Free Stock Analysis Report BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report
Bloomberg
5 days ago
- Business
- Bloomberg
Wall Street Warns of a Stock Market Correction
Some of Wall Street's biggest firms are warning clients to prepare for a major market pullback as sky-high equity valuations slam into souring US economic data. How big? Maybe 15%. Morgan Stanley, Deutsche Bank and Evercore all cautioned that the S&P 500 Index is due for a near-term drop thanks to the darkening economic picture. Driving concern is the expanding fallout from President Donald Trump's trade war, including slowing consumer spending, diminished economic growth, rising unemployment and potentially reignited inflation.
Yahoo
25-07-2025
- Business
- Yahoo
The latest speculative trades raise the risk of a stock market turndown: Goldman Sachs
Investors beware. With the S&P 500 (^GSPC) at all-time highs, some on Wall Street are warning that a rise in speculative trades could increase the risk of a market pullback. Goldman Sachs analysts said their Speculative Trading Indicator has risen sharply during the past few months. The gauge now sits at its highest level on record, outside of the 1998-2001 dot-com bubble era and 2020-2021 during COVID, though it still remains well below those peaks. The indicator shows an elevated recent share of trading volumes in unprofitable stocks, penny stocks, and stocks with rich valuations compared to revenue. Apart from "Magnificent Seven" heavyweights Nvidia (NVDA) and Tesla (TSLA), some of the stocks with the highest trading volumes over the past month include speculative plays like (BBAI), Lucid (LCID), and Plug Power (PLUG). "The recent rise in speculative trading activity signals near-term upside risk for the broad equity market but also increases the risk of an eventual downturn," Goldman's Ben Snider and his team wrote on Thursday. The analysts noted that over the past 35 years, similar spikes in speculative trading often led to stronger-than-usual returns over the next three, six, and 12 months. But those returns faltered over a two-year horizon. Speculative trading has also been accompanied by a sharp short squeeze. That's when investors who bet that a stock will go lower are forced to buy back shares to cover their positions, and that rush to buy drives the stock price even higher. "Like in 2021, the recent short squeeze has occurred alongside an improvement in social media sentiment and a rally in stocks popular with retail traders," the analysts wrote. The recent highfliers in the latest meme-stock rally noted by Wall Streeters — Krispy Kreme (DNUT), Opendoor (OPEN), and Kohl's (KSS) — all have one key thing in common: They are heavily shorted stocks. Since President Trump reversed his broad-based tariff stance on April 9, betting against the market has proven costly, as stocks rebounded in a V-shape recovery. Goldman Sachs analysts also note that call option volumes, or bets that an asset's price will go up, have recently surged. Meanwhile, investor appetite for investments such as initial public offerings (IPOs) has also risen, along with special-purpose acquisition companies (SPACs). "The median US IPO in June rose by 37% in its first trading day, the best month since early 2024 and a top decile return relative to the past 3 decades," the analysts wrote. Cloud platform CoreWeave (CRWV) boomed following its IPO in late March. Stablecoin issuer Circle (CRCL) is up more than 500% since going public in early June. Crypto firm Bitmine Immersion Technologies (BMNR) is up roughly 400% from its public offering price last month. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices 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
25-07-2025
- Business
- Yahoo
The latest speculative trades raise the risk of a stock market turndown: Goldman Sachs
Investors beware. With the S&P 500 (^GSPC) at all-time highs, some on Wall Street are warning that a rise in speculative trades could increase the risk of a market pullback. Goldman Sachs analysts said their Speculative Trading Indicator has risen sharply during the past few months. The gauge now sits at its highest level on record, outside of the 1998-2001 dot-com bubble era and 2020-2021 during COVID, though it still remains well below those peaks. The indicator shows an elevated recent share of trading volumes in unprofitable stocks, penny stocks, and stocks with rich valuations compared to revenue. Apart from "Magnificent Seven" heavyweights Nvidia (NVDA) and Tesla (TSLA), some of the stocks with the highest trading volumes over the past month include speculative plays like (BBAI), Lucid (LCID), and Plug Power (PLUG). "The recent rise in speculative trading activity signals near-term upside risk for the broad equity market but also increases the risk of an eventual downturn," Goldman's Ben Snider and his team wrote on Thursday. The analysts noted that over the past 35 years, similar spikes in speculative trading often led to stronger-than-usual returns over the next three, six, and 12 months. But those returns faltered over a two-year horizon. Speculative trading has also been accompanied by a sharp short squeeze. That's when investors who bet that a stock will go lower are forced to buy back shares to cover their positions, and that rush to buy drives the stock price even higher. "Like in 2021, the recent short squeeze has occurred alongside an improvement in social media sentiment and a rally in stocks popular with retail traders," the analysts wrote. The recent highfliers in the latest meme-stock rally noted by Wall Streeters — Krispy Kreme (DNUT), Opendoor (OPEN), and Kohl's (KSS) — all have one key thing in common: They are heavily shorted stocks. Since President Trump reversed his broad-based tariff stance on April 9, betting against the market has proven costly, as stocks rebounded in a V-shape recovery. Goldman Sachs analysts also note that call option volumes, or bets that an asset's price will go up, have recently surged. Meanwhile, investor appetite for investments such as initial public offerings (IPOs) has also risen, along with special-purpose acquisition companies (SPACs). "The median US IPO in June rose by 37% in its first trading day, the best month since early 2024 and a top decile return relative to the past 3 decades," the analysts wrote. Cloud platform CoreWeave (CRWV) boomed following its IPO in late March. Stablecoin issuer Circle (CRCL) is up more than 500% since going public in early June. Crypto firm Bitmine Immersion Technologies (BMNR) is up roughly 400% from its public offering price last month. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices 登入存取你的投資組合
Yahoo
01-07-2025
- Business
- Yahoo
Market FOMO Still Needs Less Policy Uncertainty: Evercore's Emanuel
"We're uncomfortable with where multiples are," says Julian Emanuel, chief equity and quantitative strategist at Evercore ISI, as he expects a pullback in stocks with the amount of policy uncertainty still weighing on markets. 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
