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3 Emerging Market Stocks with Promising Prospects

While geopolitical uncertainties and trade policy changes continue to impact global markets, investors are shifting their focus to emerging markets that are less reliant on U.S. trade policies. Against this backdrop, one could consider investing in stocks like Infosys Limited (INFY), Sea Limited (SE), and Vale S.A. (VALE), which are backed by solid fundamentals and promising long-term growth potential. Read more…Amid shifting geopolitical dynamics and the Republicans’ tariff-driven policies, emerging market stocks are gaining traction. The MSCI Emerging Markets Investable Market Index has risen 3.3% year-to-date, reflecting renewed investor interest.
Given this backdrop, investors may consider investing in fundamentally strong emerging market stocks such as Infosys Limited (INFY), Sea Limited (SE), and Vale S.A. (VALE), which are poised to capitalize on their solid prospects.
Since the Republicans took office on January 20, U.S. trade policy has taken center stage, sending ripples across global markets. The new administration’s tariff proposals and immigration reforms are adding fresh uncertainties, particularly for economies heavily reliant on U.S. trade, such as Mexico and China. Meanwhile, China’s AI breakthrough with DeepSeek has rattled U.S. tech stocks, further intensifying economic tensions.
As a result, investors are reassessing their portfolios, seeking markets less exposed to U.S. policy risks. For instance, India, with its largely self-sustained economy and strategic positioning, is emerging as a favorable alternative. Conversely, Brazil is poised to capitalize on potential shifts in agricultural demand, as trade realignments could benefit its exports.
According to S&P Global, EMs are projected to drive global economic growth over the next decade, with an average GDP growth rate of 4.06% through 2035, compared to just 1.59% for advanced economies. Moreover, these markets are likely to contribute 65% of global growth, with economies like China, India, Vietnam, and the Philippines leading the charge.
Furthermore, investors’ interest in emerging market stocks is evident from the iShares MSCI Emerging Markets ETF’s (EEM) 6.3% returns over the past six months. For those looking to tap into this momentum, companies like INFY, SE, and VALE offer strong fundamentals and the potential for continued growth in the evolving global market. Let’s discuss them in detail:
Infosys Limited (INFY)
Headquartered in Bengaluru, India, INFY provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally.
On January 29, 2025, INFY announced an expanded strategic collaboration with Siemens AG to accelerate its digital learning initiatives with generative AI. Under this, Siemens’ My Learning World platform will integrate Infosys Topaz and Infosys Wingspan, providing over 250,000 Siemens employees with AI-powered upskilling opportunities.
This initiative leverages Infosys’ advanced learning technologies and reinforces the company’s role in transforming enterprise learning, enhancing workforce development, and delivering personalized growth experiences globally.
The stock’s trailing 12-month EBITDA margin of 23.08% is 120.3% higher than the 10.48% industry average. INFY’s 17.29% trailing-12-month net income margin is 317.1% higher than the 4.14% industry average. Likewise, its trailing-12-month ROCE of 33.17% compares to the industry average of 4.84%.
For the fiscal third quarter ended December 31, 2024, INFY’s revenues amounted to $4.94 billion, up 5.9% year-over-year. Its gross profit rose 7.6% over the prior-year quarter to $1.49 billion. The company’s net profit and EPS came at $806 million and $0.19, representing an increase of 9.8% and 5.6% year-over-year, respectively. As of December 31, 2024, its cash and cash equivalents stood at $2.66 billion, compared to $1.77 billion as of March 31, 2024.
Street expects INFY’s revenue for the fourth quarter (ending March 2025) to increase 7.1% year-over-year to $4.86 billion, while its EPS is estimated to come in at $0.19. Moreover, the company has topped the consensus revenue estimates in three of the trailing four quarters, which is promising.
The stock has gained 28.6% over the past nine months to close the last trading session at $21.83.
INFY’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has an A grade for Stability and Quality and a B for Momentum. Among nine stocks in the A-rated Outsourcing – Tech Services industry, it is ranked #5. Click here to see additional ratings for INFY (Growth, Value, and Sentiment).
Sea Limited (SE)
SE operates as a consumer internet company through its e-commerce, digital financial services, and digital entertainment segments. Through its core businesses, Garena, Shopee, and SeaMoney, it caters to a wide range of digital consumers in Southeast Asia, Latin America, and other global markets.
In terms of the trailing-12-month levered FCF margin, SE’s 11.08% is 24.6% higher than the 8.89% industry average. Also, its trailing-12-month asset turnover ratio of 0.78x exceeds the industry average of 0.49x by 59.4%.
During the fiscal third quarter (ended September 30, 2024), SE’s revenue increased 30.8% year-over-year to $4.33 billion, while the company’s digital entertainment segment generated a revenue of $2.42 billion, up 41.2% from the prior-year quarter. Its gross profit increased 29.1% year-over-year to $1.86 billion. In addition, its net income and EPS for the quarter stood at $153.32 million and $0.24 compared to the year-ago loss of $143.98 million and $0.26, respectively.
The consensus revenue estimate of $4.64 billion for the fiscal fourth quarter (ended December 2024) represents a 28.4% increase year-over-year. The consensus EPS estimate of $0.69 for the same period indicates a significant improvement from the prior-year quarter. The company has an impressive surprise history; it surpassed the consensus revenue estimates in each of the trailing four quarters.
SE shares have gained 190.2% over the past year and 15.9% year-to-date to close the last trading session at $123.
It is no surprise that SE has an overall rating of B, which is equivalent to a Buy in our POWR Ratings system. It has an A grade for Growth and a B for Momentum, Sentiment, and Quality. Out of 48 stocks in the A-rated Internet industry, it is ranked #22.
In addition to the POWR Rating grades I’ve just highlighted, you can see SE’s Value and Stability ratings here.
Vale S.A. (VALE)
Headquartered in Rio De Janeiro, Brazil, VALE produces iron ore and nickel through its Iron Solutions and Energy Transition Materials segments. The company also produces iron ore pellets, copper, platinum group metals (PGMs), gold, silver, and cobalt.
On January 16, 2025, VALE signed a land reservation agreement with the Royal Commission of Jubail and Yanbu to develop a multi-million-dollar Mega Hub at Ras Al-Khair Industrial City in Saudi Arabia. The project, which will be completed in two phases, could produce up to 12 million tons of cold-briquette iron ore (CBI) annually, accelerating the transition to net-zero steelmaking.
In the same month, the company signed a Memorandum of Understanding (MOU) with GreenIron to advance decarbonization efforts in Brazil and Sweden. The partnership aims to explore the feasibility of GreenIron’s direct reduction facility in Brazil while also ensuring VALE’s iron ore supply to GreenIron’s commercial operations in Sweden.
The stock’s trailing 12-month gross profit margin of 39.06% is 33.9% higher than the industry average of 29.17%. Similarly, its trailing-12-month net income margin and ROCE of 22.86% and 24.20%  favorbaly compare to their respective industry averages of 4.86% and 6.06%.
VALE’s net operating revenue for the third quarter ended September 30, 2024, amounted to $9.55 billion, while its operating income increased 12% from the year-ago value to $3.67 billion. The company’s attributable net income and EPS for the quarter stood at $2.41 billion and $0.56, respectively. In addition, its iron ore shipments increased by 1.3 Mt, driven by an 18% rise in pellet sales due to higher production and strong demand.
Analysts expect VALE’s EPS for the current year ending December 2025 to increase 4.7% year-over-year to $2.03, while its revenue for the same period is expected to grow marginally from the prior year to $38.23 billion.
Over the past month, the stock has gained 9.9%, closing the last trading session at $9.47.
VALE’s robust outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has an A grade for Value and a B for Quality. It is ranked #12 among 32 stocks in the Industrial – Metals industry. Click here to see other VALE’s ratings for Growth, Momentum, Stability, and Sentiment.
What To Do Next?
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INFY shares . Year-to-date, INFY has declined -0.41%, versus a 2.51% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta KumariShweta’s profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.More…The post 3 Emerging Market Stocks with Promising Prospects appeared first on StockNews.com

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Stock News by TIFIN

3 Warren Buffett Stocks That Are Smart Buys Now

Warren Buffett’s investment strategy has stood the test of time, delivering remarkable returns for decades. Currently, his portfolio includes Visa (V), VeriSign (VRSN), and DaVita (DVA) shares, which reflects his confidence in the long-term growth potential of these companies. So, could they be smart buys right now? Read on to find out…Warren Buffett, popularly known as the “Oracle of Omaha,” is one of the most successful and admired investors of all time. With a net worth of $148.30 billion, Buffett has built his fortune by investing in high-quality businesses with strong fundamentals and long-term growth potential.
Given his track record, it’s no surprise that some of his stock holdings present compelling investment opportunities right now. In this article, we’ll take a closer look at three fundamentally sound stocks from Berkshire’s portfolio: Visa Inc. (V), VeriSign, Inc. (VRSN), and DaVita Inc. (DVA), which are poised to deliver robust returns over the long term.
Buffett’s strategy focuses on identifying companies with durable competitive advantages, solid financials, and the ability to compound value over time. Berkshire Hathaway’s (BRK.A) portfolio is packed with well-established companies that have consistently delivered strong returns.
The conglomerate itself is one of the world’s most closely watched investment firms, with a market capitalization of more than $1 trillion. Its Class A shares, being the most expensive stocks, are currently trading at $714,869 per share. As a result, many investors closely follow Buffett’s stock picks, eager to replicate his proven strategy of compounding wealth.
With that in mind, let’s evaluate the fundamental aspects of the above-mentioned stocks in detail:
Visa Inc. (V)
V is a leading payment technology company that facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. The company offers its products and services under Visa, Visa Electron, Interlink, VPAY, and PLUS brands. It is currently the 17th largest holding in Berkshire’s massive $300 billion portfolio.
On December 19, 2024, the company acquired Featurespace, an AI-driven payments protection firm, to strengthen its fraud prevention capabilities. This integration will enhance Visa’s risk-scoring and fraud detection services, providing real-time protection against financial crimes while ensuring a seamless user experience.
V’s trailing 12-month gross profit margin of 97.82% is 66.5% higher than the 58.74% industry average. Likewise, its 54.27% trailing-12-month net income margin is 142.8% higher than the 22.35% industry average. Furthermore, its trailing-12-month ROCE of 52.19% is considerably higher than the industry average of 10.35%.
During the first quarter (ended December 31, 2024), V’s net revenue increased 10.1% year-over-year to $9.51 billion. Its operating income amounted to $6.23 billion, indicating a 4.7% growth from the prior year quarter. The company’s non-GAAP net income and EPS came in at $5.46 billion and $2.75, up 10.6% and 14.1% year-over-year, respectively.
Street expects V’s revenue for the second quarter (ending March 2025) to increase 8.8% year-over-year to $9.55 billion. Its EPS for the same period is expected to grow 6.8% from the prior year to $2.68. Moreover, it topped the consensus EPS estimates in each of the trailing four quarters, which is excellent.
The stock has surged 34.6% over the past six months to close the last trading session at $347.48.
V’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
V has a B grade for Momentum, Stability, Sentiment, and Quality. It is ranked #7 out of 48 stocks in the Consumer Financial Services industry. Click here to see the additional V ratings for Growth and Value.
VeriSign, Inc. (VRSN)
VRSN provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names. The company ensures the security, stability, and resiliency of internet infrastructure and services. As of Q4 2024, Buffett holds a 14% stake in VRSN, owning 13.3 million shares valued at approximately $2.7 billion.
VRSN’s trailing 12-month gross profit margin of 87.58% is 74.3% higher than the industry average of 50.25%. Likewise, its trailing 12-month EBIT and net income margins of 68.12% and 55.69% compare favorably to their respective industry averages of 5.60% and 4.14%.
VRSN’s revenues for the fourth quarter ended December 31, 2024, increased 3.9% year-over-year to $395.40 million. The company’s operating income grew 2.9% from the year-ago value to $263.80 million. Meanwhile, its net income and EPS for the quarter came in at $191.50 million and $2, respectively. Also, its cash flow from operating activities increased 5.7% year-over-year to $902.60 million.
Analysts expect VRSN’s EPS and revenue for the first quarter ending March 2025 to increase 8.3% and 3.2% year-over-year to $2.08 and $396.52 million, respectively. It surpassed the consensus revenue estimates in each of the trailing four quarters.
Over the past nine months, the stock has gained 30.4%, closing the last trading session at $220.18.
VRSN’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has an A grade for Quality and a B for Sentiment. Within the Internet – Services industry, it is ranked #7 out of 25 stocks. To see VRSN’s ratings for Growth, Value, Momentum, and Stability, click here.
DaVita Inc. (DVA)
DVA provides kidney dialysis services for patients with chronic kidney failure. The company operates various kidney dialysis centers and offers related lab services in outpatient dialysis centers. In addition, it provides outpatient, hospital inpatient, and home-based hemodialysis services and disease management services. Buffett owns a 44% stake in DVA.
DVA’s trailing 12-month net income margin of 6.53% compares to the negative industry average of 4.38%. In addition, its trailing-12-month EBIT and levered FCF margins of 15.10% and 8.80% are considerably higher than their respective industry averages of 2.71% and 2.53%.
For the third quarter of 2024, which ended on September 30, DVA’s total revenues increased 4.6% year-over-year to $3.26 billion. Its operating income grew 7.8% from the year-ago value to $534.88 million, while its attributable net income and EPS for the quarter amounted to $214.69 billion and $2.50, respectively. Also, its free cash flow came in at $555 million, up 22.5% year-over-year.
The consensus revenue estimate of $3.27 billion for the fiscal fourth quarter (ending December 2024) represents a 3.8% increase year-over-year. The consensus EPS estimate of $2.15 for the same period indicates a 14.8% improvement year-over-year. The company has an impressive surprise history; it surpassed the consensus revenue estimates in each of the trailing four quarters.
Shares of DVA have gained 53.5% over the past year and 15.1% year-to-date to close the last trading session at $172.07.
It is no surprise that DVA has an overall rating of B, which translates to a Buy in our proprietary rating system. It also has a B grade for Quality and is ranked #13 among 63 stocks in the Medical – Services industry.
Beyond what we’ve stated above, we’ve also rated DVA for Growth, Value, Momentum, Stability, and Sentiment. Get all DVA ratings here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
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V shares were trading at $347.80 per share on Friday afternoon, up $0.32 (+0.09%). Year-to-date, V has gained 10.05%, versus a 2.63% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta KumariShweta’s profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.More…The post 3 Warren Buffett Stocks That Are Smart Buys Now appeared first on StockNews.com

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3 Water Stocks Tapping into a $1 Trillion Industry

Considering the critical need for effective water management, filtration, and treatment, the market growth of the water industry in the future is unstoppable. Hence, investors could consider fundamentally sound water stocks such as York Water (YORW), Pure Cycle (PCYO), and Consolidated Water (CWCO) tapping into the $1 trillion industry. Keep reading…Water is an absolute necessity for every aspect of development. Its need across all industries and areas cannot be understated. With a growing population and expanding industrial activities, water consumption might soon outstrip supply. This has urged an urgency for efficient water infrastructure and systems, resulting in significant opportunities for companies offering water management solutions.
Considering the industry’s tailwinds, quality water stocks The York Water Company (YORW), Pure Cycle Corporation (PCYO), and Consolidated Water Co. Ltd. (CWCO), which are tapping into the $1 trillion industry, could be sound Watchlist additions.
With the water crisis becoming more intense and concerning, the need for better and improved water infrastructure, treatment, and management has become more urgent than ever. Billions of people lack access to safe drinking water, driving significant demand for water management, water utilities, and technology companies.
To help communities across the U.S. to safely manage wastewater, protect local freshwater resources, and deliver safe drinking water, governments are taking initiatives through funding to upgrade water infrastructure.
Also, the water management systems market is expected to see significant growth in the coming years, with growing attention to water scarcity and continuous sector expansion. The market is expected to grow to $28.54 billion by 2029 at a CAGR of 13.4%. Factors like rapid industrialization, growing population, and enhanced filtration processes are driving the market growth.
With that in mind, let’s look at the fundamentals of the three top Water stocks in detail, beginning with the third choice:
Stock #3: The York Water Company (YORW)
YORW impounds purifies and distributes drinking water. The company owns and operates three wastewater collection systems, ten wastewater collection and treatment systems, and two reservoirs. It also operates a 15-mile pipeline from the Susquehanna River to Lake Redman and owns satellite groundwater systems in York, Adams, and Lancaster Counties.
On January 28, 2025, YORW’s Board of Directors declared a quarterly dividend of $0.2192 per share. The dividend will be paid to shareholders on April 15, 2025, as of the record date of February 28, 2025.
YORW has paid dividends for 28 consecutive years. The stock pays a $0.88 per share dividend annually, translating to a 2.76% yield on the current price. Its four-year average dividend yield is 1.92%. And its dividend payments have grown at a CAGR of 4% over the past three years.
On December 10, 2024, YORW acquired the wastewater collection and treatment assets of the York Haven Sewer Authority, York Haven Borough, York County. The acquisition added around 230 sewer customers to YORW’s expanding portfolio. The company’s expertise and consistent investment will ensure reliable and sustainable utility infrastructure for the community.
For the third quarter that ended September 30, 2024, YORW’s operating revenues increased 5.1% from the prior year’s quarter to $19.72 million. The company’s net income amounted to $5.86 million for the quarter, and its earnings per common share were $0.41.
For the first quarter ending March 2025, analysts expect the company’s revenue to grow 7.8% year-over-year to $19 million. Its EPS for the ongoing quarter is expected to grow 13.3% year-over-year to $0.34. Further, the company has topped the consensus EPS estimates in three of the trailing four quarters.
YORW’s stock has gained 0.7% over the past month to close the last trading session at $31.60.
YORW’s robust outlook is reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Sentiment and Stability. Within the water industry, YORW is ranked #5 among 13 stocks.
Click here to access additional ratings of YORW for Growth, Momentum, Quality, and Value.
Stock #2: Pure Cycle Corporation (PCYO)
PCYO is a provider of wholesale water and wastewater services. It operates through two segments, Wholesale Water and Wastewater Services; and Land Development. It engages in the wholesale water production, storage, treatment, and distribution systems, wastewater collection and treatment systems.
In terms of the trailing-12-month gross profit margin PCYO’s 74.18% is 65.1% higher than the industry average of 44.92%. Similarly, its trailing-12-month EBIT margin of 41.92% is considerably higher than the industry average of 21.36%. Further, the stock’s trailing-12-month net income margin of 46.32% is 260.4% higher than the 12.85% industry average.
In the first quarter that ended on November 30, 2024, PCYO’s total revenues grew 6.8% year-over-year to $5.75 million. Its income from operations before income taxes increased 85.9% from the prior-year period to $5.21 million. The company’s net income and EPS amounted to $3.94 million and $0.16, up 90.7% and 77.8% over the prior year’s quarter, respectively.
Furthermore, the company’s EBITDA of $5.84 million reflects an increase of 41.5% year-over-year.
Shares of PCYO have surged 20.9% over the past six months and 21.4% over the past year to close the last trading session at $11.78.
PCYO’s POWR Ratings reflect its sound fundamentals. The stock is ranked #4 out of 13 stocks in the Water industry.
Click here to access all the ratings of PCYO.
Stock #1: Consolidated Water Co. Ltd. (CWCO)
Headquartered in Grand Cayman, Cayman Islands, CWCO designs, constructs, manages, and operates water production and water treatment plants internationally. The company operates in four segments: Retail; Bulk; Services; and Manufacturing.
On November 25, 2024, CWCO’s board of directors approved a quarterly cash dividend of $0.11 per share for the first quarter of 2025. The cash dividend was paid on January 31, 2025, to shareholders of record at the close of business on January 2, 2025.
CWCO pays an annual dividend of $0.44, which translates to a yield of 1.63% at the current price levels. Its four-year average dividend yield is 2.09%. Moreover, the company’s dividend payouts have grown at a CAGR of 6.4% over the past three years.
During the third quarter that ended September 30, 2024, CWCO reported total revenue of $33.39 million, of which its revenue from Retail and Bulk segments increased 5.1% and 3.3% year-over-year to $7.59 million and $8.77 million, respectively. The company’s gross profit was $11.63 million for the quarter.
Also, net income attributable to CWCO stockholders and EPS were $4.45 million and $0.28 for the quarter, respectively.
Street expects CWCO’s revenue and EPS for the fiscal year 2025 to grow 8.7% and 8.1% year-over-year to $150.95 million and $1.34, respectively. Moreover, the company has an impressive earnings surprise history, having surpassed the consensus EPS estimate in all four trailing quarters.
Over the past month, the stock has gained 2% to close the last trading session at $26.88.
CWCO’s POWR Ratings reflect its bright prospects. CWCO has an A grade for Quality. It has topped among the 13 stocks within the Water industry.
To see the other ratings of CWCO for Sentiment, Value, Growth, Momentum, and Stability, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

YORW shares were trading at $31.42 per share on Friday afternoon, down $0.18 (-0.57%). Year-to-date, YORW has declined -3.97%, versus a 2.62% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post 3 Water Stocks Tapping into a $1 Trillion Industry appeared first on StockNews.com

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Is Cirrus Logic (CRUS) a Semiconductor Stock Worth Adding to Your Portfolio?

Cirrus Logic (CRUS) beat analysts’ estimates on the top and bottom lines in the third quarter of 2024. Solid demand for the company’s product offerings, strategic partnerships, and sound financial standings are driving the company’s continued growth. So, let’s determine whether CRUS is an ideal addition to your portfolio. Read more to find out…Cirrus Logic, Inc. (CRUS), a leader in audio engineering and semiconductor innovation, recently reported impressive financial results for the third quarter of fiscal year 2025. The company’s revenue of $555.74 million surpassed the analysts’ estimate of $510.03 million. Also, its non-GAAP EPS of $2.51 beat the street’s expectation of $2.04.
CRUS is an innovator in low-power, mixed-signal technology and offers audio solutions for smartphones, laptops, tablets, wearables, and AR/VR. After establishing a strong foothold in the audio category, the company expanded to include new product categories such as camera controllers, haptics and sensing, and power-related products.
In 2024, the company accelerated its operations with innovations like digital-to-analog converters (DACs) and ultra-high-performance CODEC designed for superior audio fidelity. Also, by the year-end, it launched its new range of timing products for superior audio experiences in automotive and professional audio applications.
On the financial front, CRUS delivered continued growth. Its revenue in the audio segment grew by an impressive 9.4% from the year-ago value to $346.27 million, and its gross margin rose to 53.6% in the period. Also, through strategic partnerships with leading companies like Intel, CRUS’ prospects appear promising in the coming years.
Besides, prompted by the growing technological advancements, focus on cutting-edge technologies, and high demand for semiconductors in areas like AI, 5g, IoT, and automotive, the semiconductor market is poised for robust growth. Statista projects the U.S. semiconductor market to reach a revenue of $96.12 billion in 2025. The market is projected to grow to $131 billion by 2029 at a CAGR of 8.1%.
Cirrus Logic’s operational efficiency has also propelled its stock performance. Shares of CRUS have surged 4.9% year-to-date and 33.1% over the past year to close its last trading session at $104.41.
Let’s look at factors that could influence CRUS’ performance in the upcoming months.
Positive Recent Developments
On January 7, 2025, CRUS announced a collaboration with Intel to launch a reference design based on the new Intel® Core™ Ultra processors with Cirrus Logic’s high-quality audio solutions. The reference design effects a significant advancement in PC audio technology, offering enhanced sound quality, low power consumption, and flexible audio options for a wide range of PC segments.
Through strategic collaboration, the companies will bring an impressive audio experience from mainstream to premium PCs and simplify the design effort for PC OEMs and ODMs.
Also, on December 5, 2024, CRUS launched its new range of timing products, created with the objective to deliver superior audio experiences in automotive and professional audio applications. The latest product line’s launch is designed to bring innovation to the industry and provide existing customers with a smooth transition from their previous high-performance timing devices.
This will enhance their functionality and elevate the overall user experience.
Robust Financials
CRUS’ net sales increased 2.6% year-over-year to $555.74 million during the third quarter that ended December 28, 2024. Its non-GAAP gross profit grew 5.4% from the year-ago value to $298.14 million. The company’s non-GAAP operating income of $168.90 million indicates growth of 8.2% from the prior year’s quarter.
In addition, the company’s non-GAAP net income and EPS were $138.31 million and $2.51, respectively, reflecting increases of 10.4% and 11.5% year over year.
Also, as of December 28, 2024, the company’s cash and cash equivalents stood at $526.44 million, compared to $483.93 million as of December 30, 2023.
For the fourth quarter fiscal 2025, the company expects revenue between $350 million and $410 million, whereas its gross margin is forecasted to be between 51% and 53%.
Solid Historical Growth
CRUS’ revenue and EBITDA have grown at respective CAGRs of 5.2% and 7.9% over the past three years. The company’s EBIT has increased at a CAGR of 10% over the same timeframe, while its net income and EPS have improved at CAGRs of 6.1% and 8.6%, respectively.
Furthermore, the company’s tangible book value and levered free cash flow have increased at CAGRs of 16.1% and 23.2%, respectively, over the past three years.
Favorable Analyst Estimates
Analysts expect CRUS’ revenue for the fourth quarter (ending March 2025) to increase 2.3% year-over-year to $380.26 million. The consensus EPS estimate is set at $1.18 for the same quarter. Moreover, CRUS has an impressive earnings surprise history, having topped consensus revenue and EPS estimates in all of the trailing four quarters.
For the fiscal year ending March 2025, the company’s revenue and EPS are expected to grow 3.5% and 6.9% year-over-year to $1.85 billion and $7.05, respectively. Additionally, Street expects its revenue for the fiscal year 2026 to increase 0.8% year-over-year to $1.87 billion.
High Profitability
CRUS’ trailing-12-month gross profit margin of 52.18% is 3.8% higher than the industry average of 50.25%. Its trailing-12-month EBIT margin of 20.44% is significantly higher than the industry average of 5.60%. Similarly, its trailing-12-month net income margin of 16.55% is 299.3% higher than the industry average of 4.14%.
Furthermore, the stock’s trailing-12-month ROCE, ROTC, and ROTA of 16.21%, 11.58%, and 12.91% favorably compared to the industry averages of 4.84%, 3.10%, and 2.08%, respectively.
Discounted Valuation
In terms of forward non-GAAP P/E, CRUS is currently trading at 14.81x, 42.3% lower than the industry average of 25.68x. The stock’s forward EV/EBITDA and Price/Sales of 9.37x and 3x are considerably lower than the industry averages of 16.42x and 3.26x, respectively.
Additionally, the stock’s forward EV/Sales and EV/EBIT of 2.63x and 10.34x are 23.4% and 53.7% lower than the industry averages of 3.44x and 22.32x, respectively.
POWR Ratings Reflect Optimism
CRUS’ solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. CRUS has an A grade for Quality, consistent with its higher-than-industry profitability.
In addition, the stock has a B grade for Sentiment and Value, which is in sync with its impressive analysts’ estimates, solid financial performance, and historical growth.
CRUS is ranked $2 in the list of 90-stock Semiconductor & Wireless Chip industry.
Beyond what I have stated above, we have also given CRUS grades for Growth, Momentum, and Stability. Get access to all the CRUS Ratings here.
Bottom Line
CRUS reported better-than-expected earnings for the third quarter of fiscal 2025. The company’s innovative products and solutions, strong industry position, strategic collaborations, and solid financial performance position it for significant growth in the future. Also, the semiconductor industry’s growing demand will drive the company’s operations.
Given CRUS’ solid financials, accelerating profitability, and promising growth outlook, investors can consider investing in this stock.
How Does Cirrus Logic, Inc. (CRUS) Stack Up Against Its Peers?
While CRUS has an overall POWR Rating of B, investors could also check out these other stocks within the Semiconductor & Wireless Chip industry with A (Strong Buy) or B (Buy) ratings: Qualcomm Inc. (QCOM), SMART Global Holdings, Inc. (SGH), and Photronics, Inc. (PLAB).
For exploring more A and B-rated semiconductor stocks, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

CRUS shares were trading at $106.30 per share on Friday afternoon, up $1.89 (+1.81%). Year-to-date, CRUS has gained 6.75%, versus a 2.57% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post Is Cirrus Logic (CRUS) a Semiconductor Stock Worth Adding to Your Portfolio? appeared first on StockNews.com

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Stock News by TIFIN

Is Gorman-Rupp Co. (GRC) a Solid Industrial Stock to Buy?

Gorman-Rupp (GRC) has established a strong market presence through its specialized production of pumps and pump systems across various industries. With the industrial manufacturing sector experiencing significant growth, is GRC well-positioned to capitalize on these expanding opportunities? Continue to read…The industrial manufacturing sector is riding a steady growth wave driven by technological breakthroughs resulting in reduced operating costs and increased efficiency. In this favorable environment, The Gorman-Rupp Company (GRC) is well-positioned to leverage the sector’s growing prospects.
The industrial sector continuously evolves, adapting to the latest technological advancements that reshape its operations. Today, innovations such as cloud computing, machine learning, the Internet of Things, and artificial intelligence have become deeply embedded in manufacturing, fostering greater efficiency, flexibility, and cost-effectiveness.
This rapid transformation, known as Industry 4.0 or the Fourth Industrial Revolution, has driven higher productivity, reduced operating costs, and increased profitability for businesses. Within this landscape, GRC stands out as a premier industrial stock, specializing in the production of pumps and pump systems across various industries.
Reflecting its strong market position and growth potential, GRC’s stock has climbed 15.3% over the past nine months, closing its latest trading session at $37.80.
Now, let us discuss the factors that could affect the stock’s growth trajectory.
Stable Historical Growth
GRC’s performance is evident in its steady growth across key metrics. Over the past three years, revenue and EBITDA have grown at a CAGR of 21.5% and 31.8%, respectively, while operating income and total assets have expanded at 31.3% and 27.9%.
Furthermore, net income and EPS have increased at a CAGR of 8.2% and 8%, underscoring the company’s sustained profitability and expansion.
Sound Financials
For the fiscal 2024 third quarter that ended September 30, 2024, GRC’s net sales marginally increased year-over-year to $168.18 million. Its operating income rose 9.2% from the year-ago value to $23.89 million.
Furthermore, the company’s non-GAAP adjusted earnings and non-GAAP adjusted EPS grew 43.9% and 44.1% from the prior year’s quarter to $12.92 million and $0.49, respectively. As of September 30, 2024, GRC’s cash and cash equivalents amounted to $39.70 million, compared to $30.52 million on December 31, 2023.
Dividend Growth
On January 17, GRC declared a quarterly cash dividend of $0.185 per share, payable on March 10, 2025, to shareholders of record as of the close of business on February 14, 2025. The commitment to returning value may appeal to long-term investors, potentially driving stock demand.
GRC has increased its dividends for 11 consecutive years. Currently, it pays an annual dividend of $0.74, which translates to a 1.95% yield at the current price level. The stock’s dividend payouts have increased at a CAGR of 5.7% over the past five years. Its four-year average dividend yield is 2.08%.
Optimistic Analyst Estimates
Analysts expect GRC’s revenue and EPS for the fiscal 2024 fourth quarter that ended December 2024 to increase 1.4% and 32.4% year-over-year to $162.84 million and $0.45, respectively.
For the fiscal 2025 first quarter ending in March, GRC’s revenue and EPS are expected to rise 3.5% and 50% from the prior year’s period to $164.84 million and $0.45, respectively.
Discounted Valuation
GRC is currently trading at a forward non-GAAP PEG of 1.63x, which is 14.7% lower than the industry average of 1.91x. Moreover, the stock’s forward EV/EBITDA multiple stands at 10.97, 8.6% lower than the industry average of 12x.
Additionally, it has a forward Price/Book multiple of 2.59, which is 17.1% lower than the industry average of 3.13x. This indicates that GRC is undervalued compared to its peers, offering potential upside for investors.
POWR Ratings Reflects Optimism
GRC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
GRC has an A grade for Sentiment, which is in line with the optimistic analyst estimates. It earns a B for Value, driven by its discounted valuation metrics relative to the industry average. Moreover, the stock earns a B for Stability, supported by its 60-month beta of 0.96, which reflects low volatility.
Within the A-rated Industrial – Machinery industry, GRC is ranked #3 out of 78 stocks. Beyond what is stated above, we have also given GRC grades for Momentum, Growth, and Quality. Get all GRC ratings here.
Bottom Line
The industry’s prospects remain strong, and GRC has positioned itself as a leading player in the industrial manufacturing sector, backed by its solid fundamentals. Additionally, the company’s commitment to returning value to shareholders is evident through its recent dividend payouts.
With robust financials, an attractive valuation, optimistic analyst projections, and low volatility, now may be an opportune time to consider adding GRC to a portfolio.
How Does The Gorman-Rupp Company (GRC) Stack Up Against Its Peers?
Although GRC’s near-term outlook appears sound, it may be worthwhile to explore its industry peers, who also exhibit strong POWR Ratings. So, consider these A (Strong Buy) rated stocks from the Industrial – Machinery industry:
Donaldson Company, Inc. (DCI)
Amada Co., Ltd. (AMDLY)
TechnoPro Holdings, Inc. (TCCPY)
To explore more A or B-rated Industrial – Machinery stocks, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

GRC shares were unchanged in premarket trading Friday. Year-to-date, GRC has declined -0.32%, versus a 3.45% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_GangopadhyayAritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.More…The post Is Gorman-Rupp Co. (GRC) a Solid Industrial Stock to Buy? appeared first on StockNews.com

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Stock News by TIFIN

Investors…Why Be Bearish?

The S&P 500 (SPY) is making new highs and yet some experts are still trying to scare investors that a bear market is looming. 44 year investment expert Steve Reitmeister tackles this subject to show why there should be more good times ahead for stock investors. Read on for the full story…The theme in last week’s commentary was that, once again, mega caps are leading the way and smaller stocks are lagging behind. This explains how the S&P 500 (SPY) was making new highs in early October and yet the small caps in the Russell 2000 were actually in the red.
Gladly since then…the script has flipped.
The Russell 2000 has surged by nearly 5% week over week well ahead of the other large cap indices. This is a trend that should continue to play out in 2025 after four straight years of underperformance by small stocks. That trend is not built to last.
We will talk about that and more in today’s commentary.
Market Outlook
Give me a reason to be bearish.
I know its popular to be a “devil’s advocate” and take the opposing side of an argument. But right now, it’s pretty hard to come up with a bearish argument with a straight face.
The US economy continues to expand at a healthy clip. Most experts see another 2 to 3% of growth in the 3rd quarter. And with the Fed adding accommodation to the economy via rate cuts…then it’s hard to imagine a recession unfolding any time soon.
If one want’s to be a stickler they could point out that recent inflation reports have come in higher than expected and that could postpone the Fed’s rate cut intentions. I spoke about that in my previous commentary from earlier this week: Are Rising Bond Rates Bad News for Stocks?
The solution to that from the Fed would be to pause longer on the next rate cut as the current level is still restrictive. That would further lower demand to tamp down inflation.
If it did slow the economy, then that would be all the more reason for the Fed to then speed up the pace of rate cuts which investors would cheer with ample buying.
Meaning we are kind of in a Goldilocks period on the economic front where bad news is good news because it would lead to more Fed accommodation. And as the saying goes “Don’t Fight the Fed”.
Please don’t take the above to mean that we are in a runaway bull market that is only going to go up and up and up.
That was basically the case the past 2 years…but that is pretty typical behavior for a new bull market which bounces with gusto from extreme lows (like we had in October 2022).
Now 2 years later the S&P 500 has rallied over 60% and it’s fair to say that most large cap stocks are fully valued (average PE of nearly 22). There is not much more air in that balloon before value investors start crying about a bubble.
The more rational thing to do is for investors to look beyond the safety of large caps to find more value in the small and mid cap space where the average PE is under 16. Not only is that much more attractive than the pricing of large caps…but is also under the long term average.
The key word here is “rational”. As in reasonable. As in logical.
But in the short run the market can avoid these labels for a long time.
As the famed economist, John Maynard Keynes once said…
“The market can stay irrational longer than you can stay solvent”
So, it is reasonable to assume that investors will seek more value in the year ahead and that will lead them to smaller stocks. Unfortunately, it is also possible that investors keep hitting the “Easy Button” with the usual suspects in the large and mega cap space until they reach bubble proportions.
My investment plan will always seek value. And that has me overweighting my portfolio with smaller stocks. And I can be patient to wait for whenever rationality is restored to stock investment decisions. And when that happens we will beat the stuffing out of the market.
Gladly in the meantime our portfolio is doing impressively well. More details below…
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares were trading at $583.82 per share on Friday morning, up $1.47 (+0.25%). Year-to-date, SPY has gained 23.99%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post Investors…Why Be Bearish? appeared first on StockNews.com

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Stock News by TIFIN

3 Luxury Retail Stocks to Buy as High-End Spending Rebounds

The luxury retail industry’s robust growth is being fueled by the increasing dominance of high-net-worth individuals and growing wealth inequality. In this environment, purchasing luxury retail stocks like Dillard’s (DDS), Tapestry (TPR), and Signet Jewelers (SIG) could be a smart move as high-end spending continues to rebound. Read on…The rising number of affluent individuals, coupled with increased demand for luxury fashion products, is significantly driving growth in the luxury retail sector. This trend is benefiting the industry by expanding its high-spending customer base, which consistently seeks premium goods, contributing to market expansion and brand profitability.
Against this backdrop, investors could capitalize by grabbing shares of fundamentally strong luxury retail stocks like Dillard’s, Inc. (DDS), Tapestry Inc. (TPR), and Signet Jewelers Limited (SIG). These companies are strategically positioned to benefit from the growing spending power of wealthy consumers, who are driving demand for exclusive, high-end products.
Several factors, including a rising affluent consumer base, an increasing desire for exclusivity, and the importance of brand value, are pushing the luxury market upward. According to Bain, the top 2% of luxury consumers drive 40% of luxury sales, underscoring the significance of this customer segment for the industry.
A rising wealth inequality is also a contributing factor for the industry’s growth. Over the past 60 years, wealth has shifted dramatically from the middle class to the wealthiest families, exacerbating inequality, particularly in America. Recent research from Duke University highlights that a racial wealth gap is expanding, driven by deep-rooted racial and economic histories.
In this context of growing wealth inequality, luxury stocks are primed for growth. As the affluent class expands, their appetite for luxury goods intensifies, boosting sales and profits. This makes luxury brands an attractive investment choice for those looking for sustained financial returns.
According to Fortune Business Insights, the global luxury goods market is set to grow to $392.40 billion by 2030 at a CAGR of 4.7%. This growth reflects the increasing influence of technology and the expanding wealth of luxury consumers.
In light of these encouraging trends, let’s examine the fundamentals of three Fashion & Luxury stock picks, starting with #3.
Stock #3: Dillard’s, Inc. (DDS)
DDS is a fashion retailer with over 273 stores and a general contracting construction company. The company operates over 28 clearance centers and an online store at dillards.com. It also operates CDI Contractors, LLC, which works in store construction and remodeling.
DDS’ trailing-12-month gross profit margin of 41.20% is 9.9% higher than the 37.48% industry average. Its trailing-12-month levered FCF margin of 5.19% is 3.9% greater than the 5% industry average. Additionally, the stock’s ROCE and ROTA of 36.10% and 20.89% are 218.3% and 238.6% higher than the sector averages of 11.34% and 6.17% respectively.
For the fiscal 2024 second quarter that ended August 3, DDS reported net sales of $1.49 billion. Its net income came in at $74.50 million, while EPS stood at $4.59. In addition, as of August 3, 2024, the company’s cash and cash equivalents came in at $946.70 million, compared to $774.30 million as of July 29, 2023.
Analysts expect DDS’ revenue for the year ending January 2026 to increase marginally year-over-year to $6.51 billion. Moreover, its EPS is expected to be $29.93 for the same period. In addition, the company surpassed consensus EPS estimates in three of the trailing four quarters.
DDS’ stock has soared 7.7% over the past month and 24.2% over the past year to close the last trading session at $376.53.
DDS’ bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
DDS has an A grade for Quality and a B grade for Momentum and Value. It is ranked #18 in the 59-stock A-rated Fashion & Luxury industry.
Beyond what is stated above, we’ve also rated DDS for Growth, Stability, and Sentiment. Get all DDS ratings here.
Stock #2: Tapestry Inc. (TPR)
TPR is a global powerhouse with iconic accessories and lifestyle brands like Coach, Kate Spade New York, and Stuart Weitzman that offer women’s handbags, women’s accessories, men’s products, and more.
TPR’s trailing-12-month EBITDA margin of 21.44% is 88.5% higher than the industry average of 11.37%. Moreover, the stock’s trailing-12-month gross profit margin of 73.29% is 95.5% higher than the sector average of 37.48%. Likewise, its trailing-12-month net income margin of 12.23% is 163.6% higher than the industry average of 4.64%.
For the fiscal 2024 fourth quarter that ended on June 29, TPR’s net sales came in at $1.59 billion. Its gross profit rose 1.6% year-over-year to $1.19 billion. Moreover, the company’s net income amounted to $159.30 million, or $0.68 per share. As of June 29, 2024, its total assets stood at $13.40 billion, compared to $7.12 billion as of July 1, 2023.
Street expects TPR’s revenue for the fiscal year ending June 2025 to marginally increase year-over-year to $6.70 billion. Its EPS for the ongoing period is expected to rise 4.5% from the previous year to $4.48. Plus, the company surpassed its consensus EPS estimates in all four trailing quarters.
TPR’s stock has soared 10.7% over the past six months and 63.8% over the past year to close the last trading session at $45.20.
TPR’s POWR Ratings reflect its optimistic outlook. It has an overall rating of B, which equates to Buy in our proprietary rating system.
TPR has a B grade for Sentiment and Quality. It is ranked #17 out of 59 stocks in the Fashion & Luxury industry.
Beyond what we stated above, we have also given TPR grades for Growth, Value, Momentum, and Stability. Get all the TPR ratings here.
Stock #1: Signet Jewelers Limited (SIG)
Based in Hamilton, Bermuda, SIG is a diamond jewelry retailer with segments comprising North America; International; and Other. The company operates approximately 2,700 stores under the brands Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, JamesAllen.com, Rocksbox, and more.
SIG’s trailing-12-month levered FCF margin of 6.25% is 25.2% higher than the 5% industry average. Its trailing-12-month EBIT margin of 7.94% is marginally higher than the 7.89% industry average. Likewise, the stock’s trailing-12-month gross profit margin of 39.49% is 5.4% higher than the industry average of 37.48%.
For the fiscal 2025 second quarter that ended August 3, SIG’s sales were reported to be $1.49 billion. Its adjusted operating income came in at $68.60 million. The company’s adjusted EPS also came in at $1.25. As of August 3, 2024, the company’s total current assets amounted to $2.58 billion.
The consensus revenue estimate of $6.93 billion for the fiscal year ending January 2026 reflects a rise of 2% year-over-year. Its EPS for the next fiscal year is estimated to grow 6.9% from the previous year to $11.26. Furthermore, the company topped the consensus EPS estimates in each of the four trailing quarters, which is noteworthy.
SIG’s stock has gained 14.8% over the past three months and 43.7% over the past year to close the last trading session at $99.53.
SIG’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our proprietary rating system.
SIG has a B grade for Value, Growth, and Quality. Within the same industry, it is ranked #16 out of 59 stocks.
To see additional POWR Ratings for Momentum, Stability, and Sentiment for SIG, click here.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these “death trap” stocks are lurking in your portfolio:
10 Stocks to SELL NOW! >

TPR shares were unchanged in premarket trading Wednesday. Year-to-date, TPR has gained 25.78%, versus a 23.13% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal SugandhAanchal’s passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor’s degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.More…The post 3 Luxury Retail Stocks to Buy as High-End Spending Rebounds appeared first on StockNews.com

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Stock News by TIFIN

Are Rising Bond Rates Bad News for Stocks?

Why have bond rates risen ever since the Fed said they would could rates? And what does that mean for the S&P 500 (SPY) after making recent highs? Answering those 2 questions will be at the heart of Steve Reitmeister latest market commentary. Read on for more…Rising stock prices is a magical eraser that removes a lot of worry for investors. However, it must be a curiosity to a lot of you how the Fed could start rate cuts and yet bond yields have moved higher…actually quite a bit higher.
We will dive into this oddity today along with what it means for the market outlook and my year end S&P 500 (SPY) target.
Market Outlook
Let’s begin with this vital data point. The average 10 Year Treasury yield going back 4 decades is 3.87%.
If we went back further to include the hyper inflation days of the early 1980’s it would be much higher. It would also be much higher if we removed the artificially low rates Bernanke’s Fed produced to put an end to the Great Recession and revive the economy. However, it is fair to say that about 4% is the long term average for the 10 Year Treasury.
So, without a deeper dive the 4.05% yield today is pretty much on par with the long term average and thus not a serious cause for concern.
Now let’s go a step further.
Why did rates fall to 3.6% into the Fed rate cut announcement…then the Fed tell us that 1.5% of additional cuts will likely be on the way by the end of 2025…and yet rates have spiked since then???

OK. It could simply be said “buy the rumor, sell the news”.
Or simply that the Treasury yield is simply returning to the historical average near 4%.
OR…it could be noted that recent inflation data has not been good and thus the pace of future rate cuts may be a lot slower than advertised.
Going back to Friday October 4th job gains were larger than expected. With that Average Hourly Earnings (aka Wage Inflation) increased to 4% when a drop to 3.8% year over year was expected. Meaning this sticky form of inflation is not fading away as it should be.
This was later corroborated in the 10/10 CPI report where Core Inflation increased to 3.3% year over year. Another sticky form of inflation (housing/shelter) was also not easing as much as hoped for.
It did not help that on the next day the core reading for PPI rose from 2.6% to 2.8% year over year. Remember that PPI is the forward looking indicator of what shows up in CPI down the road.
Oddly investors took in all this rising inflation data and still believe that rates will be cut another 25 points at the next Fed meeting on 11/7. In fact, right now the odds point to 91.6% chance.
Put me in the 8.4% who see no rate forthcoming in November.
The Fed are patient and slow moving academics who base each decision on the facts in hand. With the labor market strong…they don’t need to cut rates to support that part of their dual mission.
Instead, they will likely focus on the “stable prices” part of the mission and notice quite clearly that recent data is not moving towards 2% as intended. So they will likely keep rates unchanged in the hopes that it will further slow demand and get inflation moving lower once again.
Reity, does this change your stock market outlook?
Not really. Things are still pretty well on track with the ideas shared in my recent 2025 Stock Market Outlook.
The target of hitting 6,000 before the year ends is too tempting not to reach after the election is finalized plus the seasonal benefit of the Santa Claus rally.
However, after that I suspect a fairly lackluster year for the S&P 500 in 2025. This fits in with historical trends that year 3 of a bull market is often around 0%.
And fits in with the fact that the PE for large caps, especially mega caps, are fully valued by any reasonable standard (PE of 22 and 30 respectively when long term average is 18).
Gladly there is plenty of room to catch up in the small and mid cap space where the forward looking PE is only 15-16. Add in 4 years of underperformance for the group and 2025 should be their time to shine.
That is why I am leaning in heavily with these smaller stocks in the Reitmeister Total Return portfolio. It has led to strong results this year…especially of late. And fully expect our lead over the market to increase in the year ahead.
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares fell $0.21 (-0.04%) in after-hours trading Tuesday. Year-to-date, SPY has gained 23.13%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post Are Rising Bond Rates Bad News for Stocks? appeared first on StockNews.com

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Stock News by TIFIN

October Stock Market: More Trick Than Treat?

The S&P 500 (SPY) has been in the plus column for 5 straight months. Investment pro Steve Reitmeister shares why that party ends in October and how to prepare for resumption of the bull market in November and beyond. Read below for full story…The only conversation in September was Fed rate cuts.
The only conversation in October is the election which is leading to a pause in the bull market.
But soon we will get back to normal…that being a focus on the economic environment and what that means for earnings growth and how that translates to stock prices. So, let’s use our time today to review the economic outlook and what that means for stock prices.
Market Outlook
It’s easy to get lost in the cornucopia of economic data. So, the best place to start is with a picture of GDP. As long as that is healthy, then hard to get too hung up about a bad report here or there.
The most successful model in measuring GDP in the United States is GDPNow from the Atlanta Fed. That stands at a fairly robust +3.2% growth estimate for Q3. At this stage the model has well over 80% of the inputs for Q3…so it is not likely to change much.
Some of the most recent data is also very encouraging about the direction of the economy. ISM Services last Thursday being the most impressive with a showing of 54.9 which is well above the previous month at 51.5. Even better is the forward looking New Orders component soaring up to 59.4 which says more good times ahead.
This was a nice relief after another tepid ISM Manufacturing report on Tuesday that came in at 47.2…the same as the previous month. Yes, below 50 is a sign of contraction. But really that has been the case for manufacturing the majority of the last 2 years as rising rate environment is rarely good for industrials. That should improve going forward.
The stock market immediately celebrated the impressive job gains last Friday in the Government Employment Situation report. However, as the news washed over investors, they realized this was not such good news for inflation (especially given the uptick in Average Hourly Earnings to 4%). This may have the Fed being more cautious in their approach to rate cuts.
Bond investors are right now a bit more wise to this issue given how 10 year Treasury rates have actually gone up ever since the 9/18 Fed rate cut meeting. Instead of the recent low of 3.6% on the 10 year Treasury it is now back to 4%.
Yes, some will point out that 4% is basically the long term average and is not necessarily a bad thing. But it does seem odd that the Fed has talked about 1.5% in additional rate cuts between now and the end of 2025. Thus, to see the Treasuries move higher is a bit of a head scratcher.
Here are the key economic events on the horizon:
10/9 FOMC Minutes- investors will be looking for more clues of their plans for future rate cuts.
3 Inflation Reports: 10/10 CPI > 10/11 PPI > 10/31 PCE (trick or treat)- The overall trend has clearly been down for a while making the Fed feel comfortable in finally cutting rates. However, any more signs of sticky inflation, like the unwanted gain in Average Hourly Earnings, then the ever cautious Fed might be slower in rolling out future rate cuts. This would obviously be a negative for the stock market which is very much counting on this additional accommodation.
At this stage I see the 5 month winning streak for the S&P 500 (SPY) coming to an end in October. I am not talking about anything ominous. Just the Presidential election makes for a natural place for investors to press pause.
Pause doesn’t necessarily mean flat or calm. It might end up being a volatile month with a lot of sector rotation. That certainly has been the case so far in October.
Yet once the election results are in hand, I see a bull run resuming with 6,000 a very attractive target to reach by years end. Even better should be the gains for small and mid caps who still have a lot of room to play catch up with their large cap peers.
So I would lean into these smaller stocks. Especially in Risk On industries like industrials, materials, consumer discretionary, banks, auto, home building etc.
The big difference from the first couple years of this bull market should be a greater eye towards value as the nearly 22 PE for the S&P 500 says we are fully valued at this time.
Gladly small and mid caps are a more appealing 15-16 PE as a group. Again, this is why they should be the group that outperforms in the months, and likely years ahead.
Thankfully our POWR Ratings has a small cap bias…and a value bias. So we really are coming into the sweet spot for the top stocks selected by the system. This should lead to some great outperformance in the months ahead.
As always, my favorite POWR Ratings stocks are shared in the section below…
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares fell $0.37 (-0.06%) in after-hours trading Tuesday. Year-to-date, SPY has gained 21.73%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post October Stock Market: More Trick Than Treat? appeared first on StockNews.com

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Stock News by TIFIN

3 Media Stocks to Watch as Streaming Wars Heat Up

The wide availability of online content and social media platforms has fueled market competition among streaming service companies, resulting in rising media industry prospects. Therefore, investors could watchlist sound media stocks Apple (AAPL), Netflix (NFLX), and The Walt Disney (DIS) as streaming wars heat up. Keep reading…The increasing demand for digital content among consumers, growing internet penetration, and rising adoption of low-latency video streaming platforms have propelled the prospects for the streaming services market. The rising prevalence of impressive technologies like Gen AI further supports this trend.
Given this backdrop, investors could consider fundamentally sound entertainment stocks Apple Inc. (AAPL), Netflix, Inc. (NFLX), and The Walt Disney Company (DIS) to watch for now.
In today’s digital generation, where the internet is easily accessible, digital media consumption is surging rapidly. In a recent survey, it was discovered that 99% of all U.S. households pay for at least one or more streaming services. Also, notably, Americans spend about three hours and nine minutes a day on streaming digital media.
These consumption figures and growing demand have resulted in rigid competition among different media companies offering streaming services.
Besides, the global video streaming market is projected to grow to $2.66 trillion by 2032, exhibiting a CAGR of 18.7%. The market is currently driven by increasing demand for video-on-demand (VoD) streaming services, improving internet connectivity, and the popularity of social media platforms.
With these favorable trends in mind, let’s delve into the fundamentals of the three top entertainment stock choices mentioned above.
Apple Inc. (AAPL)
AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories globally. The company provides iPhone, Mac, iPad, wearables, home, and accessories including AirPods, Apple TV, Apple Watch, Beats products, and HomePod.
On September 9, AAPL introduced breakthrough sleep and hearing health features for its Apple Watch® and AirPods Pro® 2 to help customers support their sleep and hearing health for several medical conditions. The Hearing Aid feature helps make access to hearing assistance easier for the users.
The new technology will strengthen AAPL’s customer support, contribute to user well-being, and establish the company as a leader in health-focused technology.
On the same day, AAPL launched a new lineup of AirPods® models and features. The new AirPods 4 are the most advanced and comfortable headphones AAPL has created, offering an open-ear design, which comes in two distinct models: AirPods 4 and AirPods 4 with Active Noise Cancellation (ANC).
The company also introduced iPhone® 16 Pro and iPhone 16 Pro Max, featuring Apple Intelligence™, larger display sizes, new creative capabilities with innovative pro camera features, and stunning graphics for immersive gaming, and more, all powered by the A18 Pro chip.
AAPL’s total net sales increased 4.9% from the year-ago value to $85.78 billion during the third quarter that ended June 29, 2024. Its operating income increased 10.2% year-over-year to $25.35 billion. The company’s net income and EPS came in at $21.45 billion and $1.40, reflecting 7.9% and 11.1% growth from the prior year’s quarter, respectively.
Analysts expect AAPL’s revenue for the fourth quarter (ended September 2024) to grow 5.3% year-over-year to $94.21 billion. The company’s EPS is expected to increase 9.4% year-over-year to $1.60 for the same period. Moreover, the company surpassed the consensus revenue and EPS estimates in all of the trailing four quarters.
Shares of AAPL have surged 34.3% over the past six months and 30.6% over the past year to close the last trading session at $226.80.
AAPL’s bright prospects are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has an A grade for Quality. Within the Technology – Hardware industry, AAPL is ranked #20 out of 42 stocks.
Click here to access additional ratings of AAPL for Value, Momentum, Growth, Sentiment, and Stability.
Netflix, Inc. (NFLX)
NFLX is an entertainment services provider. The company provides TV series, documentaries, feature films, and games across various genres and languages. It also allows its members to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
NFLX’s trailing-12-month EBIT margin and net income margin of 23.82% and 19.54% are 151.7 % and 530.6% higher than the respective industry averages of 9.32% and 3.10%. Likewise, the stock’s trailing-12-month levered FCF margin of 55.22% is significantly higher than the industry average of 8.04%.
During the second quarter, which ended June 30, 2024, NFLX’s revenues increased 16.7% year-over-year to $9.56 billion. Its operating income grew 42.5% year-over-year to $2.60 billion. The company’s net income and EPS were $2.15 billion and $4.88, up 44.3% and 48.3% from the prior year’s quarter, respectively.
In addition, the company’s total assets stood at $49.10 billion as of June 30, 2024, compared to $48.73 billion as of December 31, 2023.
Analysts expect NFLX’s revenue for the third quarter (ended September 2024) to increase 14.3% year-over-year to $9.76 billion, while its EPS for the same quarter is expected to grow 37.1% year-over-year to $5.11. Also, NFLX has topped the consensus revenue estimates in each of the trailing four quarters.
NFLX’s shares have gained 16.6% over the past six months and 91% over the past year to close the last trading session at $719.70.
NFLX’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Quality and a B grade for Sentiment. Within the A-rated Internet industry, NFLX is ranked #17 among the 52 stocks.
In addition to the POWR Ratings we’ve stated above, we also have NFLX ratings for Stability, Momentum, Value, and Growth. Get all NFLX ratings here.
The Walt Disney Company (DIS)
DIS is a global entertainment company. The company operates through three segments: Entertainment; Sports; and Experiences. It produces and distributes film and television video streaming content under banners like ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels.
DIS’ trailing-12-month net income margin of 5.31% is 71.2% higher than the industry average of 3.10%. Further, the stock’s trailing-12-month EBIT margin and levered FCF margin of 12.93% and 9.19% are 38.7% and 14.4% higher than the industry averages of 9.32% and 8.04%, respectively.
For the third quarter that ended June 29, 2024, DIS’ total revenue increased 3.7% year-over-year to $23.16 billion. Its total segment operating income increased 18.7% from the year-ago value to $4.23 billion. Also, net income attributable to DIS was $2.62 billion, against a net loss of $460 million during the prior year’s quarter.
Furthermore, the company’s cash and cash equivalents and total assets stood at $5.95 billion and $197.77 billion as of June 29, 2024, respectively.
Street expects DIS’ revenue and EPS for the fourth quarter (ended September 2024) to increase 5.9% and 35.8% year-over-year to $22.49 billion and $1.11, respectively. Also, the company topped the consensus EPS estimate in all four trailing quarters, which is remarkable.
Shares of DIS have surged 5.9% over the past month and 20% over the past year to close the last trading session at $95.15.
DIS’ POWR Ratings reflect its sound fundamentals. The stock has a B grade for Sentiment and Growth. It is ranked #6 out of 12 stocks within the Entertainment – Media Producers industry.
In addition to the POWR Ratings we’ve stated above, we also have DIS ratings for Momentum, Quality, Value, and Stability. Get all DIS ratings here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

AAPL shares were trading at $222.39 per share on Monday afternoon, down $4.41 (-1.94%). Year-to-date, AAPL has gained 15.95%, versus a 20.51% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post 3 Media Stocks to Watch as Streaming Wars Heat Up appeared first on StockNews.com

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