Latest News from Globe and Mail
Globe and Mail
34 minutes ago
- Business
- Globe and Mail
OXY Stock Outperforms Industry in Last Two Months: How to Play
Occidental Petroleum Corporation 's OXY shares have gained 18.8% in the last two months compared with the Zacks Oil and Gas-Integrated-United States industry's rally of 12.2%. The company operates in a very competitive industry, but Occidental's strong presence in the prolific Permian Basin works to its advantage. Occidental has outperformed some other operators in this space. In the same period, other operators in the same industry, like ConocoPhillips COP and Hess Corporation HES, have gained 9.6% and 9.8%, respectively. Price Performance (Two Months) Occidental is trading above its 50-day simple moving average (SMA), signaling a bullish trend. OXY's 50-Day SMA The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of a stock's uptrend or downtrend. Should you consider adding OXY stock to your portfolio only based on positive price movements? Let's delve deeper and find out the factors that can help investors decide whether it is a good entry point to add OXY stock to their portfolio. Factors Acting as Tailwinds for Occidental Occidental continues to benefit from its strategic acquisitions, which have significantly boosted production volumes and top-line performance. Notably, the acquisition of CrownRock assets has enhanced output while reducing well operating costs. A key focus for Occidental is strengthening its balance sheet and lowering capital servicing expenses. In 2024, the company achieved its short-term debt reduction target of $4.5 billion and aims to further reduce outstanding debt by mid-2027 through free cash flow generation and proceeds from divesting non-core assets. The company's emphasis on developing its Permian Basin assets has been particularly fruitful. Occidental projects total production in 2025 to range between 1,390 and 1,440 thousand barrels of oil equivalent per day (Mboe/d), with the Permian accounting for approximately 760–786 Mboe/d. Under current economic and technical conditions, the company holds more than a decade of high-return drilling inventory in this region. To support its growth strategy, Occidental plans to invest between $3.5 billion and $3.7 billion in the Permian in 2025. In the first quarter alone, the company brought 125 wells online and targets drilling 515 to 565 wells by the end of the year. Its commanding regional presence is reflected in its control of 1.5 million acres in unconventional areas and 1.4 million acres in conventional zones. In addition to its robust U.S. operations, OXY also benefits from stable international performance, further strengthening its overall financial and operational outlook. Headwind for OXY Stock Occidental's operational performance is influenced by changes in demand and the volatility of both global and local commodity prices. The company remains vulnerable to fluctuations in the commodity markets, and as of Dec. 31, 2024, it had no active commodity hedging strategies in place. A significant decline in commodity prices from current levels could negatively affect Occidental's financial performance. OXY Stock's Earnings Surprise History The stable performance of the company allowed it to surpass earnings estimates in each of the last four reported quarters, the average earnings surprise being 24.34%. Hess Corporation, operating in the space, surpassed earnings estimates in each of the last four quarters, resulting in an average positive surprise of 9.58%. Occidental's Earnings Estimates are Going Down The Zacks Consensus Estimate for Occidental's 2025 and 2026 earnings per share has moved down 26.09% and 27.17%, respectively, in the past 60 days. ConocoPhillips' 2025 and 2026 earnings per share have gone down 18.93% and 25.40%, respectively, in the past 60 days. OXY's Shares Are Trading at a Premium Occidental's shares are currently expensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) being 5.11X compared with its industry average of 4.85X. ConocoPhillips and Hess Corporation are currently trading at EV/EBITDA TTM of 5.27X and 7.7X, respectively, a premium to the industry. Occidental's ROE Lower Than the Industry Occidental's return on equity ("ROE") is lower than the industry average in the trailing 12 months. ROE of OXY was 16.6% compared with the industry average of 16.89%. Summing Up Occidental's strength in its domestic and international operations and the positive impact of acquisitions are expected to support its performance. Yet, the company faces challenges from volatile commodity prices and returns that currently lag behind industry averages. Declining earnings estimates are also a concern. Despite the headwinds, it is advisable to keep this Zacks Rank #3 (Hold) stock in your portfolio, given its strong domestic operations and exposure to the prolific Permian Basin. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> ConocoPhillips (COP): Free Stock Analysis Report
Globe and Mail
an hour ago
- Business
- Globe and Mail
BlackRock Targets Raising $400B in Private Market Funds by 2030
BlackRock BLK is targeting $400 billion in private markets fundraising by 2030. In its investor presentation, the firm predicted that the private credit market could expand to $4.5 trillion in 2030 from $1.6 trillion last year. As the private credit market emerges as a lucrative sector in global finance, BlackRock has been strategizing to enhance its capabilities in the market by integrating investments, technology and data across the entire portfolio. In the presentation, the company mentioned that it aims to double its operating income and market capitalization by 2030. BLK targets its adjusted operating income to double to $15 billion by 2030 and its market cap to reach $280 billion. Showing further optimism, management mentioned that it has set its annual revenue target at more than $35 billion for 2030, implying a five-year compound annual growth rate of 10%. In 2024, the company earned revenues of $20 billion. Further, in these five years, the company expects organic base fee growth of 5% or more and its adjusted operating margin to be 45% or more. BlackRock's Foray Into the Private Markets Over the past year, BlackRock has committed nearly $28 billion to acquiring private-asset firms. In October 2024, it acquired Global Infrastructure Partners (GIP) for $12.5 billion to enhance its infrastructure offerings and origination capabilities. In December, it announced an agreement to acquire HPS Investment Partners for $12 billion in an all-equity transaction. BLK expects that once the HPS acquisition is complete, it will have about $220 billion of private credit client assets, adding to the more than $225 billion it had in private equity, infrastructure and real estate at the end of the first quarter of 2025. In May 2025, BlackRock acquired Preqin, a premier provider of private markets data, for $3.2 billion (£2.55 billion) in cash. The Preqin buyout represents a strategic expansion of BlackRock's Aladdin technology business into the private markets data segment. Preqin brings a substantial client base to BlackRock, including more than 4,000 relationships with general partners, limited partners and service providers. BlackRock has also collaborated with Partners Group to combine a varied pool of private assets into a single portfolio of alternatives for retail clients. Further, BLK is integrating private equity and credit investments into pre-built portfolios to cater to rising demand among individual investors. It designed model portfolios that combine publicly traded stocks and bonds alongside more sophisticated private equity and credit funds, with plans to add other alternatives over time. The company claims the offering to be the first of its kind in the asset management industry. Our View on BlackRock BLK's inorganic expansion strategy to boost its presence in alternatives and private equity assets, alongside its product diversification efforts, will likely aid top-line and assets under management growth. Moreover, the company's efforts to strengthen its iShares unit (offering more than 1,400 ETFs globally) and ETF operations (received approval for spot Bitcoin and ether ETFs), along with its increased focus on the active equity business, will aid financials. The combination of HPS Investment, Preqin and GIP data with BLK's alternative asset management platform, eFront, will drive solid revenue growth. BLK's Price Performance & Zacks Rank Over the past year, BLK shares have gained 28.5%, outperforming the industry 's 16.9% growth. Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Like BLK, Other Firms Expanding in the Private Credit Market This February, JPMorgan JPM announced an additional $50 billion allocation toward direct lending, solidifying its presence in the credit market. The move, unveiled at its 30th annual Global Leveraged Finance Conference, signals the company's intent to become a dominant force in private credit. Since 2021, JPMorgan has deployed more than $10 billion across 100+ private credit transactions, leveraging its extensive client base and vast origination platform. The bank's partnerships with multiple co-lenders have further strengthened its position, bringing in an additional $15 billion in capital. According to Kevin Foley, global head of Capital Markets at JPM, the company's ability to integrate its origination platform with lender partners has significantly increased deal flow and lending capacity. In 2024, Citigroup C inked a deal with Apollo for its subsidiary and certain affiliates of Apollo to establish a revolutionary $25-billion private credit, direct lending program. The program will initially focus on North America, potentially expanding to additional geographies. Both Citigroup and Apollo expect the program to finance approximately $25 billion of debt opportunities over the next several years, including corporate and financial sponsor transactions. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report BlackRock (BLK): Free Stock Analysis Report
Globe and Mail
an hour ago
- Business
- Globe and Mail
Visa's Fintech Expansion: A New Era of Scalable Digital Payments?
Visa Inc. V focuses on sharpening its edge in the digital payments space through robust and growing fintech partnerships, acquisitions and platform building. It is redefining its role from a card network to a vital technology partner in the ever-changing payments landscape. The company saw impressive growth in payment volume during the second quarter of fiscal 2025, resulting from its partnerships with fintech companies and the increase in consumer spending on its app-based platforms. In fiscal 2023, Visa's payment volume rose 9% year over year on a constant-dollar basis, which grew 8% year over year in fiscal 2024, followed by an 8% increase in the second quarter of fiscal 2025. In the same quarter, processed transactions grew 9% year over year. Our model suggests a 9.9% year-over-year increase in processed transactions in fiscal 2025. Visa extended its partnership with TabaPay, which is serving over 6,500 fintechs and businesses. With Visa Direct, the company introduced push-to-account and wallet features alongside the existing push-to-card option. It also launched a new program, Visa Commercial Integrated Partners, designed to improve connectivity between fintechs and Visa Commercial products. Visa's proactive strategies reflect its active move to shape the new era of payments. As the demand for digital payment rises globally, the company's position as a flexible infrastructure partner might be its valuable long-term advantage. How Are Competitors Faring? Some of V's competitors in the fintech payments space are Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL. Mastercard reported a 15% Y/Y increase in cross-border volumes in the first quarter of 2025. In the same quarter, its payment network net revenues grew 13% year over year. Mastercard projects adjusted net revenues to witness low-teens growth in 2025. PayPal Holdings' total payment volume increased 3% year over year in the first quarter of 2025. The company's payment transactions decreased 7% year over year in the same quarter. PayPal Holdings anticipates the transaction margin to be in the range of $15.2-$15.4 billion in 2025. Visa's Price Performance, Valuation & Estimates Shares of Visa have jumped 12.3% in the year-to-date period, outperforming the 8.5% growth of the industry. From a valuation standpoint, V trades at a forward price-to-earnings ratio of 30.1, above the industry average of 23.7. V carries a Value Score of D. The Zacks Consensus Estimate for Visa's fiscal 2025 earnings implies a 12.9% jump from the year-ago period. It witnessed 11 upward estimate revisions in the past 60 days against one downward movement. Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
an hour ago
- Business
- Globe and Mail
Is Roku's Strategy for Devices Segment Holding Back Its Profitability?
Roku 's ROKU Devices segment remains a challenging part of the business, acting more as a strategic tool to grow its user base than as a source of profitability. While devices are essential for expanding Roku-powered households, the segment continues to face financial strain, with persistent losses and margin pressure. Roku maintains that its priority is growing its streaming footprint, even at the cost of short-term Devices profits. These trends are expected to continue. For the second quarter of 2025, Roku projects Devices revenues to decline around 10% year over year, with margins staying negative. To manage macro and tariff-related risks, the company is leaning on its diversified manufacturing and flexible pricing. The Zacks Consensus Estimate for Roku's second quarter 2025 revenues of the Devices segment is pegged at $124.42 million and the estimate for the gross loss of the segment is pegged at $14.06 million. To improve brand appeal and deepen engagement, Roku recently launched a refreshed device lineup. The updated Roku-made TVs feature better picture and sound quality, faster app launches and deeper bass. The new Pro Series introduces QLED and Mini-LED technology, along with an upgraded Voice Remote Pro and software features like Smart Picture and personalized Backdrops. Despite similar efforts in the past, profitability remains elusive. In the first quarter of 2025, Devices revenues rose 11% year over year to $140 million (13.7% of total revenues), but the segment posted a gross loss of $19 million and a negative 14% margin due to lingering holiday promotions. While unit sales were strong, the Devices business continues to function as a long-term strategic lever rather than a near-term profit engine. Roku's Competition in This Space Several players are competing with Roku's devices business, with companies like Amazon AMZN and Apple AAPL offering alternative streaming hardware and expanding their user ecosystems. Amazon continues to expand its Fire TV lineup, combining affordability with Alexa integration to drive adoption. Amazon's Fire TV devices remain a key part of its strategy to increase engagement within its content and services ecosystem. Apple's premium Apple TV 4K appeals to users seeking a high-performance experience with seamless integration into the Apple ecosystem. Apple continues to attract loyal users through tight ecosystem linkages and exclusive content. Roku's Share Price Performance, Valuation and Estimates ROKU shares have gained 10.3% in the trailing three months, outperforming the Zacks Broadcast Radio and Television industry's return of 22% but underperforming the Zacks Consumer Discretionary sector's growth of 10.6%. ROKU's 3-Month Price Performance Image Source: Zacks Investment Research From a valuation standpoint, ROKU stock is currently trading at a Price/Cash Flow ratio of 36.19X compared with the industry's 32.97X. ROKU has a Value Score of D. ROKU Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter 2025 loss is pegged at 15 cents per share, which has remained steady over the past 30 days, indicating 37.5% year-over-year growth. The consensus mark for 2025 loss is pegged at 17 cents per share, which has remained steady over the past 30 days. The estimate indicates 80.9% year-over-year growth. Roku currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report
Globe and Mail
an hour ago
- Automotive
- Globe and Mail
Does Rivian's AI-Driven RAP Provide It a Competitive Edge?
Rivian RIVN, an American EV manufacturer, has created its advanced driver assistance system (ADAS), known as the Rivian Autonomy Platform (RAP). This in-house platform features a more powerful computing system than that used in Rivian's earlier vehicles and is tailored specifically for its current and future models. RAP provides Level 2+ autonomy, meaning it supports the driver with alerts and interventions, such as steering corrections and emergency braking, but it never takes full control of the vehicle. The system includes a comprehensive set of ADAS tools, stepping in only when necessary. Standard on the R1T and R1S models, RAP's features fall into two main categories: Driving Assist and Active Safety Assist. Driving Assist includes user-activated tools like Highway Assist, Adaptive Cruise Control and Lane-Change Assistance. Active Safety Assist includes automatic features aimed at preventing accidents, such as lane safety, lighting adjustments, parking and reversing aids, and collision mitigation. RIVN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. With the introduction of its second-generation R1 platform, Rivian has significantly upgraded RAP. The vehicles now use a revamped perception system and computing setup, including 55-megapixel cameras and onboard processing power exceeding 200 trillion operations per second. The platform's AI-driven design and vertically integrated hardware allow Rivian to efficiently collect and process high-quality, multi-modal sensor data, giving it a competitive edge in ADAS development. Other automakers like Toyota Motor Corporation TM and Waymo, a subsidiary of Alphabet Inc. GOOGL, and Tesla TSLA are also making progress on the development of their respective autonomous vehicle platforms. In April, Toyota and GOOGL's Waymo reached a preliminary agreement to explore a collaboration focused on the development of a new autonomous vehicle platform. Toyota and GOOGL's Waymo aim to combine their respective strengths to develop the platform. In parallel, the companies will explore how to leverage Waymo's autonomous technology and Toyota's vehicle expertise to enhance next-generation personally owned vehicles. Tesla's Full Self-Driving (FSD) system is a sophisticated driver-assistance technology designed to allow Tesla cars to navigate various driving conditions autonomously. FSD builds on Tesla's existing Autopilot features and is sold as an optional upgrade. The company has long been a leader in autonomous vehicle development. Tesla released its last major FSD update, v13, in December 2024. Rivian's Price Performance, Valuation and Estimates Rivian has outperformed the Zacks Automotive-Domestic industry year-to-date. RIVN shares have gained 4.6% against the industry's decline of 18.3%. YTD Price Performance From a valuation perspective, Rivian appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.47, lower than its industry's 2.64. EPS Estimates Revision The Zacks Consensus Estimate for 2025 and 2026 EPS has moved down 3 cents and up 2 cents, respectively, in the past 30 days. Image Source: Zacks Investment Research 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 Toyota Motor Corporation (TM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Rivian Automotive, Inc. (RIVN): Free Stock Analysis Report This article originally published on Zacks Investment Research (
