Latest news with #S&P 500
Bloomberg
4 hours ago
- Business
- Bloomberg
RBC's Calvasina Sees Investors Looking Past Policy to 2026
Lori Calvasina, head of US equity strategy at RBC, discusses the investor sentiment behind her firm's latest raise of the year-end target for the S&P 500. (Source: Bloomberg)
Yahoo
6 hours ago
- Business
- Yahoo
3 Industrials Stocks with Open Questions
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that sway capital spending, like interest rates. Wariness surrounding these influences has caused the industry to underperform the market as it was flat over the past six months while the S&P 500 climbed by 4.1%. Some companies can grow regardless of the economic backdrop, but the odds aren't great for the ones we're analyzing today. On that note, here are three industrials stocks best left ignored. Albany (AIN) Market Cap: $2.11 billion Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries. Why Should You Sell AIN? 3% annual revenue growth over the last five years was slower than its industrials peers Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 9 percentage points Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 6.3% annually Albany's stock price of $70.29 implies a valuation ratio of 11.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why AIN doesn't pass our bar. Great Lakes Dredge & Dock (GLDD) Market Cap: $758.1 million Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally. Why Does GLDD Give Us Pause? Annual revenue growth of 1.8% over the last five years was below our standards for the industrials sector Cash burn makes us question whether it can achieve sustainable long-term growth Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Great Lakes Dredge & Dock is trading at $11.65 per share, or 16x forward P/E. If you're considering GLDD for your portfolio, see our FREE research report to learn more. Whirlpool (WHR) Market Cap: $5.18 billion Credited with introducing the first automatic washing machine, Whirlpool (NYSE:WHR) is a manufacturer of a variety of home appliances. Why Do We Pass on WHR? Disappointing unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned 9× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings At $93.47 per share, Whirlpool trades at 10x forward P/E. Dive into our free research report to see why there are better opportunities than WHR. Stocks We Like More Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Bloomberg
a day ago
- Business
- Bloomberg
Investor Hunger for Yield Drives S&P 500 Dividend Option Growth
Investor demand for yield in the US is helping fuel growth in the market for S&P 500 Index dividend futures and options — a niche corner of the derivatives world where America has long trailed Europe. The contracts, which wager on cumulative dividend payments from companies in a gauge such as the Euro Stoxx 50 Index, have long been popular in Europe as a vehicle to speculate on corporate payouts and hedge long-term liabilities. Now the US is catching up.
Yahoo
3 days ago
- Business
- Yahoo
3 Consumer Stocks with Warning Signs
Most consumer discretionary businesses succeed or fail based on the broader economy. Over the past six months, it seems like demand trends are working against their favor as the industry has tumbled by 4.7%. This performance was disheartening since the S&P 500 gained 4.1%. A cautious approach is imperative when dabbling in these companies as many also lack recurring revenue characteristics and ride short-term fads. On that note, here are three consumer stocks we're steering clear of. Levi's (LEVI) Market Cap: $8.33 billion Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE:LEVI) is an apparel company renowned for its iconic denim products and classic American style. Why Should You Sell LEVI? Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 2.6% Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Levi's stock price of $21.18 implies a valuation ratio of 16.6x forward P/E. Dive into our free research report to see why there are better opportunities than LEVI. Sonos (SONO) Market Cap: $1.28 billion A pioneer in connected home audio systems, Sonos (NASDAQ:SONO) offers a range of premium wireless speakers and sound systems. Why Is SONO Risky? Annual revenue declines of 6.3% over the last two years indicate problems with its market positioning Persistent operating margin losses suggest the business manages its expenses poorly Negative returns on capital show that some of its growth strategies have backfired Sonos is trading at $10.70 per share, or 50.8x forward P/E. Check out our free in-depth research report to learn more about why SONO doesn't pass our bar. Wolverine Worldwide (WWW) Market Cap: $1.65 billion Founded in 1883, Wolverine Worldwide (NYSE:WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony. Why Do We Pass on WWW? Annual sales declines of 4.1% for the past five years show its products and services struggled to connect with the market Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 10.5% annually, worse than its revenue Negative returns on capital show management lost money while trying to expand the business At $19.53 per share, Wolverine Worldwide trades at 18.4x forward P/E. To fully understand why you should be careful with WWW, check out our full research report (it's free). High-Quality Stocks for All Market Conditions Trump's April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
Globe and Mail
5 days ago
- Business
- Globe and Mail
3 Top Dividend Stocks Yielding More Than 3% That You Shouldn't Hesitate to Buy Right Now
Key Points ExxonMobil has the best dividend growth track record in the oil industry. Johnson & Johnson has increased its dividend for over 60 straight years. Essex Property Trust has delivered over three decades of dividend increases. With the S&P 500 back in rally mode, the dividend yield on the broad market index is falling. It was recently down to around 1.2%, which is approaching its record low last hit a quarter-century ago. It won't surprise you, then, that the dividend yield on many stocks isn't very appealing these days. However, there are still some attractive options out there for yield-seeking investors. ExxonMobil (NYSE: XOM), Essex Property Trust (NYSE: ESS), and Johnson & Johnson (NYSE: JNJ) all currently have dividend yields of more than 3%. With top-notch track records of paying dividends, income investors shouldn't hesitate to buy their shares right now. The best in the oil patch by far ExxonMobil built its business to withstand the ups and downs of the oil patch better than any of its peers. Its dividend history is a major testament to its resilience. The oil giant has increased its payout for 42 straight years. That not only leads the oil patch but is also a claim that only 4% of companies in the entire S&P 500 can make. Two factors have helped fuel Exxon's durable and growing dividend over the decades. First, it has an integrated business model built around advantaged assets -- i.e., low-cost, high-margin assets -- that allows it to generate more resilient cash flows than most of its peers do. On top of that, Exxon has a fortress balance sheet, with the lowest leverage ratio among its peer group. That gives it the financial flexibility to borrow money during periods of lower oil prices to continue funding its growth, which it repays as prices improve. Exxon should have plenty of fuel to continue increasing its dividend in the future. Its 2030 plan aims to boost its earnings by $20 billion and its cash flow by $30 billion. The company expects to deliver that growth by investing in expanding its advantaged assets and continuing to strip out structural costs. That earnings growth should enable Exxon to continue increasing its high-yielding dividend in the coming years. A healthy dividend stock Johnson & Johnson is a financial fortress. The healthcare behemoth has a pristine AAA credit rating, which is higher than that of the U.S. government. The company ended the first quarter with only $13.5 billion of net debt -- $52.3 billion of debt against $38.8 billion of cash and securities. That's a paltry amount for a company with a $380 billion market cap that produced about $20 billion in free cash flow last year, which easily covered its $11.8 billion dividend outlay. The company's strong financial position has helped support its ability to steadily increase its dividend. Johnson & Johnson has raised its dividend for 63 straight years. That qualifies it as an elite Dividend King, a company with 50 or more years of increasing its dividends. Johnson & Johnson's financial strength also enables it to invest heavily in growing its business. It spent $17 billion on research and development last year, as it remained one of the top research-and-development investors across all industries. The company also secured more than $30 billion of merger-and-acquisition deals last year. These investments position Johnson & Johnson to grow its earnings so that it can continue increasing its 3.3%-yielding dividend payment. A top-tier landlord Essex Property Trust is one of the country's largest apartment owners. The real estate investment trust (REIT) focuses solely on West Coast markets including Los Angeles, San Diego, San Francisco, and Seattle. Its properties benefit from the durable and growing demand for rental housing in those strong housing markets. The REIT has increased its dividend for 31 straight years, which is one of the longest growth streaks in the sector. Essex Property Trust has increased its payout by a cumulative 516% since its initial public offering in 1994. Its dividend currently yields 3.6%. Essex Property Trust is in an excellent position to continue increasing its dividend. Housing demand along the West Coast remains strong, which keeps occupancy levels high and rents rising. Meanwhile, the REIT has a strong investment-grade balance sheet, giving it ample financial flexibility to continue expanding its portfolio. The company will acquire operating properties, fund development projects, invest capital to redevelop existing assets, and provide loans to developers that often come with an option to buy the completed project. These investments complement rent growth, enhancing the REIT's ability to continue increasing its dividend. High-quality, high-yielding dividend stocks ExxonMobil, Johnson & Johnson, and Essex Property Trust have exceptional records of paying dividends. With yields currently above 3% and more growth likely, they're dividend stocks that you can buy without hesitation right now. Should you invest $1,000 in ExxonMobil right now? Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
