StockNews.com

The S&P 500 (SPY) is testing the 200 day moving average with fears on tariffs and GDP that could push them even lower. Now is a good time to hear what 40 year investment veteran Steve Reitmeister says about the market outlook and odds of bear market.Back on January 13th the stock market was falling like a knife towards the 100 day moving average for the S&P 500 (SPY) at 5,800 and we started our conversation on all the growing uncertainties causing me to raise a lot of cash in our portfolio.
Damn that looked foolish in the weeks that followed as stocks miraculously sprinted to new record highs at 6,147 by late February. This flied in the face of how investors reacted to tariff talks in 2018. Yet I kept that cash on hand as I knew it could just be early in the ballgame.
Voila…here we are falling all the way to test the 200 day moving average today with an intraday low of 5,732.
The real key is what happens next…and that will be the focus of today’s Reitmeister Total Return commentary.
Market Outlook
As noted in the intro, today we tested the technically important 200 day moving average for the first time in a long, long time.

(Yellow = 50 Day Moving Average / Orange = 100 Day MA / Red = 200 Day MA).
Certainly, increased tensions on tariffs are part of the mix. But even more concerning is how we went from WalMart warning on the consumer to news of the largest drop in Consumer Confidence in 4 years to discovery that the GDPNow model from the Atlanta Fed now stands at -2.8% for Q1 of this year.
This happened in 2 big stages.
First, was the Personal Income & Outlays report from 2/28 showing a dramatic drop in spending. In one fell swoop the model went from +2.2% to -1.5%. Next comes the ISM Manufacturing report today that pushed it all the way down to -2.8%.
I am not going to mince words. THIS IS NOT GOOD!
Never in my investment career have I seen this model move so quickly in any direction…let alone dropping into negative territory on the back of just 2 reports.
Then again…this is may not be as bad it sounds.
That same Personal Income & Outlays report from 2/28 showed that income is just fine. The problem is that spending is way down. I would say the main driver of that is the flurry of changes that have come from the Trump administration.
Remember that about half the population did not vote for him…a large % of those people are afraid of him…and their media outlet of choice is likely feeding them news that the world is falling apart with him at the helm.
This fear of what is happening now…and may happen in the future naturally causes people to be more cautious leading them to hold back on unnecessary purchases. That is how the economic picture changed so fast.
Worst case scenario is that it continues to devolve leading to recession and bear market.
Best case scenario…and most likely scenario…is that people get used to all the change. And start to realize that their worst fears are not coming true.
Since there job is still secure with new money flowing in, then they will soon spend that recent savings leading to healthy economic expansion.
The old adage is that the only things certain in this world are “death and taxes”.
Let me add a third element of certainty. The American consumer will spend every dollar in his wallet AND MORE.
Meaning all that extra savings being socked away will be spent at some point. Hopefully fairly soon as more people realize the sky is not falling. That should resolve the recent darkening of the economic outlook.
Let me add in that it was clear from Donald Trump’s first administration that he is very pro-business and pro-economy. And that he often used the growth of the stock market as a measuring stick of how much benefit he was providing to the economy.
Thus, it is my belief that higher tariffs are being used as a negotiating tool to get other countries to come to the table to find more reasonable accommodations to level the economic playing field. That may take another few months to come to fruition.
Plus there are plans to lower taxes for individuals and corporations that is most certainly stimulative.
Hard to be a bear when something as bullish as tax cuts are likely on the way.
Add it all up and certainty reigns supreme.
I think things will resolve in positive fashion with the economy and stocks bouncing higher. But I also appreciate that the odds of recession and bear market have just dramatically increased. Lets call it 35% odds up from 15%.
That still means 2X more likely that things roll bullish in the end.
In the meantime, volatility will stay in place. With likely more tests of the 200 day moving average (5,729) in play. And perhaps a stretch of time below before things improve.
That is why I am not currently putting our cash back in play on this dip as it could get worse before it gets better.
If things turn more clearly bearish, we will raise more cash by selling off our most aggressive positions…and might even add some inverse ETFs into the mix to make money on the way down.
More likely, as recent uncertainty becomes more positively resolved, then we put our cash to use in attractive Risk On stocks for the resumption of the long term bull market.
Yes, I appreciate that you would all like more conviction on this front as to what happens next. But anyone claiming to know precisely how this plays out is 100% full of (you know what).
Economics is an inexact science.
Politics and trade wars are an inexact science.
Investor reactions to new information is an inexact science.
Add those together and you appreciate why its about probabilities and not certainties at this stage. And as always as new facts emerge the probabilities change and we will change with them for the benefit of our portfolios.
What To Do Next?
Check out my portfolio with hand selected picks for the current market environment:

8 stocks to buy
1 stock to short
1 ETF to buy

All the stocks have been selected using the proven outperformance that comes from our POWR Ratings stock selection model which has done 4X better than the S&P 500 since 1999.
Now add in my 44 years of investing experience seeing bull markets…bear markets…and everything between. This helps me pick the right stocks for the current environment.
If you are curious to learn more, and want to see my current 10 recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 10 Recommendations >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor, Reitmeister Total Return

SPY shares . Year-to-date, SPY has declined -1.57%, 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 How Low Will Stocks Go? appeared first on StockNews.com

The online review industry is anticipated to be bolstered by increasing penetration rates of connected devices, easy availability of high-speed internet, and advanced technology. To analyze which stock offers better investment potential, let’s compare online review platform stocks Yelp (YELP) and Tripadvisor (TRIP). Read on to find out…The widespread digital transformation of businesses in nearly every global industry is fueling significant expansion in the broadband services market. Key factors driving this growth include the rapid rise of e-commerce, the digitization of healthcare, increased consumption of online entertainment, and the growing implementation of e-governance by governments.
In the coming years, the growing presence of well-known and popular e-commerce companies in the country, coupled with technological innovation in the payment gateway landscape, might positively impact the e-commerce market by giving consumers a wide variety of products to purchase online and have them delivered to their address. The U.S. e-commerce market is expected to grow at a CAGR of 10.4% by 2033.
This has also led to online reviews gaining prominence. Online reputation is becoming very important for businesses, so review platforms have become an important gauge of what companies should do.
Against this backdrop, let’s compare two online review platform stocks to analyze which stock offers better investment potential: Yelp Inc. (YELP) and Tripadvisor, Inc. (TRIP).
The Case for Yelp Inc. Stock
With a $2.24 billion market cap, Yelp Inc. (YELP) operates a platform that connects consumers with local businesses in the United States and internationally. Its platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services.
On December 10, 2024, YELP announced its end-of-year product release featuring more than 20 new updates designed to enhance the user experience for consumers and business owners.
YELP also announced AI-powered improvements to the business owner experience with features like job summaries that help manage their inbox and a smart selection tool that automatically optimizes ad performance.
On November 26, 2024, YELP announced that it had completed its previously announced planned acquisition of RepairPal, an auto services platform, for approximately $80 million in cash, subject to customary post-closing adjustments. 
YELP’s stock has plunged 2.5% over the past six months to close the last trading session at $34.09.
YELP’s 1.41x trailing-12-month asset turnover ratio is 187.5% higher than the 0.49x industry average. Also, its 13.51% trailing-12-month Return on Total Assets is 676.7% higher than the 1.74% industry average.
YELP’s net revenue for the fourth quarter, which ended on December 31, 2024, increased 5.7% year-over-year to $361.95 million. In addition, the company’s net income was $42.22 million, or $0.62 per share, up 54% and 67.6%, respectively.
For the first quarter ending March 2025, YELP’s revenue is expected to increase 5.9% year-over-year to $352.42 million. Its EPS for the ongoing quarter is expected to be $0.79. Moreover, the company surpassed EPS estimates in all the trailing four quarters, which is impressive.
YELP’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Value and Quality and a B for Growth. YELP is ranked #4 out of 47 stocks in the A-rated Internet industry.
In addition to the POWR Ratings I’ve just highlighted, you can see YELP’s ratings for Momentum, Stability, and Sentiment here.
The Case for Tripadvisor, Inc. Stock
Valued at $2.03 billion by market cap, Tripadvisor, Inc. (TRIP) operates as an online travel company that primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor; Viator; and TheFork. 
On January 27, 2025, TRIP announced the launch of its first-ever Trendcast report, exploring the trends reshaping travel and predictions for the years ahead.
Shares of TRIP have surged 4.5% over the past three months but declined 16.6% over the past month to close the last trading session at $14.45.
In terms of the trailing-12-month CAPEX/Sales, TRIP’s 4.03% is 10.8% higher than the 3.64% industry average. However, its 6.70% trailing-12-month EBIT margin is 35.3% lower than the 10.36% industry average.
TRIP’s total revenue increased 5% year-over-year to $411 million for the fiscal 2024 fourth quarter that ended December 31, 2024. However, the company’s non-GAAP net income declined 22% year-over-year to $43 million, and its non-GAAP EPS declined 21% year-over-year to $0.30.
For the first quarter ending March 2025, TRIP’s revenue is expected to decline 1.7% year-over-year to $388.23 million. Its EPS for the ongoing quarter is expected to decrease 47.8% year-over-year to $0.06.
TRIP’s fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to Neutral in our proprietary rating system.
TRIP has a C grade for Momentum. It is ranked #10 in the same industry.
Click here for the additional POWR Ratings for TRIP (Growth, Value, Sentiment, Stability, and Quality).
Yelp Inc. (YELP) vs. Tripadvisor, Inc. (TRIP): Which Online Review Platform Offers Better Investment Potential?
As internet penetration rises, so does the global smartphone user population. This expanding user base increasingly engages with various e-commerce avenues, including digital content, financial services, travel and leisure, and e-tailing.
Leading online review companies YELP and TRIP stand to capitalize on the optimistic industry outlook. However, YELP’s strong profitability might make it the better online review platform stock pick.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Internet industry 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 >

YELP shares were trading at $33.86 per share on Friday afternoon, down $0.23 (-0.67%). Year-to-date, YELP has declined -12.51%, versus a 0.35% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi AgarwalNidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.More…The post Yelp Inc. (YELP) vs. TripAdvisor, Inc. (TRIP): Which Online Review Platform Offers Better Investment Potential? appeared first on StockNews.com

Tennant Company (TNC) reported better-than-anticipated fourth-quarter 2024 results, beating analysts’ expectations. Considering the company’s strong market position, stable financials, product portfolio expansion, and technical expertise, its prospects appear robust. So, let’s determine whether the stock is a wise investment in the industrial sector. Read on to know more…Tennant Company (TNC) is a world leader in designing, manufacturing, and marketing solutions to reinvent how the world cleans. TNC’s extensive product range includes floor maintenance, cleaning equipment, sustainable cleaning technologies, aftermarket parts, and consumables. These products are marketed under brands like Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen.
The century-old industrial company has continuously innovated itself to deliver the best products and solutions to its customers. The company’s operations are not limited to cleaning products but also extend to various business solutions, like financing, rental, and leasing programs.
Recently, the company reported its financial results for the fourth quarter and full-year 2024. The company posted revenue of $328.90 million, exceeding analysts’ estimate of $323.27 million. Also, its non-GAAP EPS came in at $1.52 for the quarter, higher than the consensus estimate of $1.37.
In 2024, Tennant introduced a variety of innovative products, targeting the specific requirements of its customers. These products included advanced scrubbers, like T12 and T291. Further, the company’s 2025 product line is also promising. TNC is preparing for the launch of X6 ROVR and XC1, which will be commercially available in the second quarter of 2025.
X6 ROVR is a larger purpose-built AMR scrubber targeting retail, education, healthcare, manufacturing, logistics, warehousing, and large public spaces. It also features a fully integrated autonomous charging station.
Besides, Tennant has been actively demonstrating its commitment to returning capital to shareholders. The company recently authorized a new share repurchase program of up to 2,000,000 shares of its common stock, effective February 11, 2025.
Also, the directors of the company declared a regular quarterly cash dividend of $0.295 per share on February 11, 2025. The dividend is payable on March 14, 2025, to shareholders of record at the close of business on February 28, 2025.
Shares of TNC have gained 4.3% year-to-date to close its last trading session at $84.74.
Let’s look at factors that could influence TNC’s performance in the upcoming months.
Positive Recent Developments
On December 10, 2024, TNC introduced lithium-ion battery-powered versions of its popular T12 and T16 scrubbers. The product innovation marked a significant milestone in the company’s product innovation. It helps customers achieve their productivity and sustainability goals.
Also, on September 24, 2024, the company launched its T291 small walk-behind scrubber in the North American market. The T291 is a walk-behind scrubber built to simplify and improve facility management by combining cleaning power and maneuverability. The product is designed to be used in both hard-to-reach spaces and open areas.
The product’s versatility and small size make it an efficient fit for mid-size retail, healthcare, and education environments.
Solid Financials
For the fourth quarter that ended December 31, 2024, TNC’s net sales increased 5.6% year-over-year to $328.90 million. Its adjusted gross profit grew 3.4% from the year-ago value to $136 million. Also, the company’s adjusted operating income rose 22.3% from the prior quarter’s quarter to $34 million.
Furthermore, the company’s net income and EPS were $6.60 million and $0.35 for the quarter, respectively. TNC’s adjusted EBITDA was $47.40 million for the quarter, up 14.2% year-over-year.
The company’s total assets stood at $1.19 billion as of December 31, 2024, compared to $1.11 billion as of December 31, 2023.
Impressive Historical Growth
TNC’s revenue grew at a CAGR of 5.7% over the past three years, while its EBITDA improved at a CAGR of 9%. Its EBIT increased at a CAGR of 13.5% over the same period, while the company’s net income and EPS grew at respective CAGRs of 8.9% and 8.4% over the same time frame.
In addition, the company’s tangible book value and levered free cash flow increased at CAGRs of 38.2% and 10.7% over the same timeframe, respectively.
Favorable Analyst Estimates
Analysts expect TNC’s EPS for the third quarter (ending September 2025) to come in at $1.49, indicating an increase of 7.2% year-over-year. The consensus revenue estimate for the same period is $306.03 million. Moreover, the company has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is remarkable.
For the fiscal year (ending December 2026), the company’s revenue and EPS are anticipated to grow 4.5% and 13.9% year-over-year to $1.30 billion and $6.76, respectively.
Elevated Valuation
In terms of forward non-GAAP P/E, TNC is currently trading at 14.34x, 25.3% lower than the industry average of 18.68x. Also, the stock’s forward EV/Sales and EV/EBITDA of 1.41x and 8.67x are considerably lower than the industry averages of 1.89x and 11.08x, respectively.
Additionally, the stock’s forward Price/Sales of 1.29x is 12.3% lower than the industry average of 1.47x.
POWR Ratings Reflect Promise
TNC’s 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. TNC has a B grade for Value, consistent with its low valuation.
TNC is ranked #18 among the 77 stocks in the A-rated Industrial – Machinery industry.
Beyond what I have stated above, we have also given TNC grades for Stability, Quality, Sentiment, Growth, and Momentum. Get access to all the TNC ratings here.
Bottom Line
TNC recently reported solid financial results for the fourth quarter and full-year 2024. The company is continuously growing with innovative product launches and the integration of advanced features to keep demand for its offerings high. TNC’s long-term prospects further appear promising, driven by strategic fund allocation and solid cash flow position.
Given TNC’s strong financial performance, strong market position, and discounted valuation, investing in this stock seems prudent.
How Does Tennant Company (TNC) Stack Up Against Its Peers?
While TNC has an overall POWR Rating of B, investors could also check out these other stocks within the A-rated Industrial – Machinery industry with A (Strong Buy) or B (Buy) ratings: TechnoPro Holdings Inc. ADR (TCCPY), Luxfer Holdings PLC Ordinary Shares (LXFR), and Astec Industries, Inc. (ASTE).
For exploring more A and B-rated industrial 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 >

TNC shares were trading at $85.39 per share on Friday afternoon, up $0.65 (+0.77%). Year-to-date, TNC has gained 4.73%, versus a 0.20% 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 Tennant Company Cleaning Up in the Industrial Sector? appeared first on StockNews.com

The rail industry is rapidly growing, driven by technological advancements, increasing urbanization, and the demand for sustainable transportation solutions. Hence, it could be ideal to keep track of top rail stocks such as GATX (GATX), FreightCar America (RAIL), and L.B. Foster (FSTR), which keeps the economy moving. Read more…The railroad market is growing as governments and private sectors invest in infrastructure development and upgrades. Sustainability efforts, including eco-friendly technologies and digital innovations like IoT and big data, enhance efficiency and reduce carbon footprints.
Given the industry’s tailwinds, investors could consider looking into fundamentally sound rail stocks, GATX Corporation (GATX), FreightCar America, Inc. (RAIL), and L.B. Foster Company (FSTR), which keeps the economy moving.
The railroad market growth is increasing due to infrastructure development, where governments and private entities are committing significant resources toward expanding and upgrading rail lines. The market is expected to grow at a CAGR of 3.5% by 2033.
Another emerging trend is the growing emphasis on sustainability, as railroads implement environmentally friendly technologies like electrification and hybrid locomotives to lower carbon emissions. Adopting digital technologies, such as the Internet of Things (IoT) and big data analytics, improves operational efficiency and enables predictive maintenance.
Considering these encouraging trends, let’s take a look at the fundamentals of the three best Railroads stocks, starting with #3.
Stock #3: GATX Corporation (GATX)
GATX operates as a railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America; Rail International; and Engine Leasing. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries.
GATX’s trailing-12-month EBIT and gross profit margins of 30.13% and 73.79% are 192.1% and 134.1% higher than the respective industry averages of 10.31% and 31.52%.
GATX’s total revenues for the fourth quarter that ended December 31, 2024, were reported at $413.50 million. Its net income came in at $76.50 million, up 15.9% from the year-ago quarter. The company reported EPS of $2.10, up 16% from the prior-year quarter.
Analysts expect GATX’s revenue for the fiscal first quarter ending March 2025 to increase 9.8% year-over-year to $417.25 million. For the same quarter, Street expects its EPS to increase 3.8% year-over-year to $2.09. The company surpassed its revenue estimates in each of the trailing four quarters, which is promising.
GATX’s stock has soared 6.2% year-to-date to close the last trading session at $164.53.
GATX’s POWR Ratings reflect its outlook. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has a B grade for Stability. It is ranked #13 in the 16-stock Railroads industry.
Beyond what is stated above, we’ve also rated GATX for Value, Momentum, Growth, Quality, and Sentiment. Get all GATX ratings here.
Stock #2: FreightCar America, Inc. (RAIL)
RAIL engages in the design, manufacture, and sale of railcars and railcar components for the transportation of bulk commodities and containerized freight products in the United States and Mexico. It operates in two segments: Manufacturing and Parts.
RAIL’s trailing-12-month levered FCF margin of 9.67% is 35.5% higher than the industry average of 7.14%. Its trailing-12-month ROTC of 41.11% is 485.8% higher than the industry average of 7.02%.
During the third quarter that ended September 30, 2024, RAIL’s revenues increased 83% year-over-year to $113.26 million, and its gross profit grew 75.6% year-over-year to $16.20 million. Furthermore, the company’s non-GAAP net income and earnings per share came in at $7.28 million and $0.08, respectively.
Street expects RAIL’s revenue for the fourth quarter (ended December 2024) to increase 20.1% year-over-year to $152.02 million, and its EPS is expected to be $0.05, respectively. Moreover, the company topped the consensus EPS estimates in three of the four trailing quarters, which is impressive.
RAIL’s stock has increased 114.3% over the past nine months to close the last trading session at $7.78.
RAIL’s POWR Ratings reflect its bright prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. 
RAIL has an A grade for Growth and a B for Sentiment. It is ranked #2 in the same industry.
In addition to the POWR Ratings highlighted above, one can access RAIL’s ratings for Momentum, Stability, Value, and Quality here.
Stock #1: L.B. Foster Company (FSTR)
FSTR provides engineered and manufactured products and services for building and infrastructure projects in the United States, Canada, the United Kingdom, and internationally. It operates through two segments: Rail, Technologies, and Services; and Infrastructure Solutions.
FSTR’s trailing-12-month net income margin of 7.96% is 25.4% higher than the industry average of 6.35%. Its trailing-12-month ROCE of 26.42% is 102.8% higher than the industry average of 13.03%.
During the third quarter that ended September 30, 2024, FSTR’s net sales were reported at $137.47 million, and its gross profit increased 19.5% year-over-year to $32.76 million. Furthermore, the company’s net income and earnings per common share increased significantly year-over-year to $35.90 million and $3,27, respectively.
Street expects FSTR’s revenue and EPS for the fourth quarter (ended December 2024) to be $130.80 million and $0.12, respectively.
FSTR’s stock has gained 38.5% over the past six months to close the last trading session at $26.59.
FSTR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. 
FSTR has a B grade for Value, Quality, Growth, and Sentiment. It is ranked first in the same industry.
Click here to access the additional FSTR ratings (Momentum and Stability).
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 >

GATX shares were trading at $165.66 per share on Friday afternoon, up $1.74 (+1.06%). Year-to-date, GATX has gained 6.91%, versus a 0.21% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi AgarwalNidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.More…The post 3 Rail Stocks Keeping the Economy Moving appeared first on StockNews.com

The logistics industry is experiencing a growing demand driven by technological advancements, supply chain evolution, and growing global trade. Given the industry tailwinds, it could be wise to invest in quality logistics stocks: United Parcel Service (UPS), FedEx (FDX), and Radiant Logistics (RLGT), capitalizing on supply chain disruptions. Read on…With the growing globalization of trade and the prevalence of e-commerce around the world, the operations of freight and shipping companies have become more critical and essential for smooth functioning. Such trends, along with advanced technologies, are opening new avenues for the logistics market.
With the industry’s promising prospects, it could be wise to invest in fundamentally sound logistics stocks: United Parcel Service, Inc. (UPS), FedEx Corporation (FDX), and Radiant Logistics, Inc. (RLGT) amid supply chain disruptions.
Recent technological evolutions and rapid expansion of e-commerce have caused significant supply chain developments. Owing to these advancements, customers’ demands and requirements are also evolving towards faster, more efficient supply chains, prompting logistics companies to enhance their operations with innovative technologies.
Also, continued globalization of trade and easier access to resources are accelerating demand in different regions. Such trends have resulted in surging infrastructure and supply chain investments, propelling the freight and logistics market’s growth.
The Business Research Company projects that the global freight and logistics market will expand to $23.16 billion by 2029, exhibiting growth at a CAGR of 6.4%. The market’s demand is attributable to factors like digital transformation, integration of AI and machine learning, advancements in transportation, and globalization and cross-border trade.
Given these encouraging trends, let’s look at the fundamentals of the three best Air Freight & Shipping Services stocks, beginning with the third choice.
Stock #3: United Parcel Service, Inc. (UPS)
UPS engages in the provision of package delivery and logistics services. The company operates in two segments: U.S. Domestic Package and International Package. The company offers time-definite delivery services for express letters, documents, packages, and palletized freight via air and ground services.
On February 5, 2025, UPS announced its regular quarterly dividend of $1.64 per share on all outstanding Class A and Class B shares, which is payable on March 6, 2025, to shareholders of record on February 18, 2025.
UPS’ annual dividend of $6.56 translates to a yield of 5.58% at the current share price. Its four-year average dividend yield is 3.43%. Moreover, the company’s dividend payouts have increased at a CAGR of 12.6% over the past three years. UPS has raised its dividends for 15 consecutive years.
On January 8, 2025, UPS completed the acquisition of Frigo-Trans and its sister company BPL, a leading provider of complex healthcare logistics solutions across Europe. The strategic acquisition enhanced UPS’s end-to-end capabilities with end-to-end temperature-controlled solutions across Europe.
For the fourth quarter that ended December 31, 2024, UPS reported posted total revenue of $25.30 billion, up 1.5% year-over-year. The company’s non-GAAP adjusted operating profit increased 11.2% from the previous year’s quarter to $3.10 billion. Also, its non-GAAP adjusted net income and EPS came in at $2.36 billion and $2.75, up 11.5% and 11.3% from the prior-quarter quarter, respectively.
Analysts expect UPS’ revenue and EPS for the fiscal year (ending December 2026) to increase 2.1% and 12.4% year-over-year to $91.10 billion and $8.88, respectively. Further, the company has surpassed the consensus EPS estimates in three of the trailing four quarters.
UPS’ stock has declined 6.7% year-to-date to close the last trading session at $117.63.
UPS’ 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, each weighted to an optimal degree.
UPS’s stock has a B grade for quality. Within the Air Freight & Shipping Services industry, UPS is ranked #6 of 16 stocks.
Click here to access UPS’ additional ratings (Stability, Momentum, Value, Sentiment, and Growth).
Stock #2: FedEx Corporation (FDX)
FDX is an international provider of transportation, e-commerce, and business services. The company operates in segments like FedEx Express; FedEx Ground; FedEx Freight; and FedEx Services. It offers express transportation, small-package ground delivery, freight transportation services, and time-critical transportation services.
On February 14, 2025, FDX declared a quarterly cash dividend of $1.38 per share on its common stock, in line with the company’s continued focus on delivering stockholder value. The dividend will be paid on April 1, 2025, to stockholders of record at the close of business on March 10, 2025.
FDX pays an annual dividend of $5.52, which translates to a yield of 2.14% at the current share price. Its four-year average dividend yield is 1.68%. Moreover, the company’s dividend payouts have increased at a CAGR of 23% over the past three years. FedEx has raised its dividends for four consecutive years.
On February 5, 2024, FDX announced the acquisition of RouteSmart Technologies, a global leader in route optimization solutions. The strategic acquisition further enhances FDX’s efficiency across its international operations with the combination of RouteSmart’s leading technology solutions with FedEx’s unparalleled physical and data networks.
FDX reported a total revenue of $21.97 billion during the second quarter that ended November 30, 2024. Its non-GAAP operating income for the same period rose 13.1% from the year-ago value to $1.26 billion. The company’s non-GAAP net income was $990 million, while its non-GAAP EPS was $4.05, reflecting growth of 1.5% from the prior year’s quarter.
In addition, FDX’s cash and cash equivalents and total assets stood at $5.03 billion and $85.48 billion as of November 30, 2024.
Street expects FDX’s revenue for the third quarter (ending February 2025) to increase 1% year-over-year to $21.96 billion. Likewise, the company’s EPS for the same quarter is expected to grow 22.3% year-over-year to $4.72. Moreover, it has surpassed the consensus EPS estimates in three of the trailing four quarters.
FDX’s shares have gained 7.1% over the past year to close the last trading session at $258.54.
FDX’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 a B grade for Quality. Within the same industry, FDX is ranked #2 of 16 stocks.
In addition to the POWR Ratings we’ve stated above, we also have FDX ratings for Growth, Sentiment, Momentum, Value, and Stability. Get all FDX ratings here.
Stock #1: Radiant Logistics, Inc. (RLGT)
RLGT is a third-party logistics company that provides technology-enabled global transportation and value-added logistics solutions. The company provides domestic, international air, and ocean freight forwarding services, and freight brokerage services.
On December 3, 2024, RLGT acquired the assets and operations of TCB Transportation Associates, LLC, a privately held intermodal marketing company. RLGT acquired TCB through its wholly-owned subsidiary Radiant Road and Rail, Inc. The acquisition will accelerate RLGT’s bi-modal brokerage platform growth.
On October 2, 2024, RLGT acquired the operations of Focus Logistics, Inc., a Michigan-based, privately held company with operations in Romulus, Michigan. The strategic acquisition aligned well with the company’s operations extended its capabilities, and will result in enhanced future operations.
During the second quarter that ended December 31, 2024, RLGT’s revenues increased 31.6% year-over-year to $264.54 million. Its adjusted gross profit grew 2.1% from the prior year’s quarter to $63.31 million. The company’s adjusted EBITDA increased 55.9% from the year-ago value to $12.02 million.
In addition, the company’s adjusted net income amounted to $10.69 million or $0.22 per common share, up 94.6% and 100% over the prior year period, respectively.
Street expects RLGT’s revenue and EPS for the first quarter (ending September 2025) to increase 15.4% and 25% year-over-year to $235 million and $0.20, respectively. Further, the company has an impressive earnings surprise history as it has topped consensus EPS estimates in three of the trailing four quarters.
Shares of RLGT have surged 8.8% over the past six months and 20% over the past year to close the last trading session at $6.78.
RLGT’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
RLGT’s stock has a B grade for Sentiment, Growth, Value, and Quality. The stock has topped among the 16 stocks in the Air Freight & Shipping Services industry.
Click here to access additional RLGT ratings for Momentum and Stability.
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 >

UPS shares were trading at $118.85 per share on Friday afternoon, up $1.22 (+1.04%). Year-to-date, UPS has declined -4.40%, versus a 0.06% 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 Logistics Stocks Capitalizing on Supply Chain Disruptions appeared first on StockNews.com

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

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

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

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

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