Investing.com – Australia stocks were higher after the close on Thursday, as gains in the IT, Financials and Consumer Discretionary sectors led shares higher.
At the close in...
Investing.com – Australia stocks were higher after the close on Thursday, as gains in the IT, Financials and Consumer Discretionary sectors led shares higher.
At the close in Sydney, the S&P/ASX 200 gained 0.37%.
The best performers of the session on the S&P/ASX 200 were Mesoblast Ltd (ASX:MSB), which rose 17.38% or 0.26 points to trade at 1.79 at the close. Meanwhile, Nuix Ltd (ASX:NXL) added 10.17% or 0.60 points to end at 6.50 and Nufarm Ltd (ASX:NUF) was up 6.01% or 0.22 points to 3.88 in late trade.
The worst performers of the session were Resolute Mining Ltd (ASX:RSG), which fell 6.40% or 0.03 points to trade at 0.40 at the close. Domino'S Pizza Enterprises Ltd (ASX:DMP) declined 5.65% or 1.71 points to end at 28.54 and Ramelius Resources Ltd (ASX:RMS) was down 4.93% or 0.10 points to 1.93.
Falling stocks outnumbered advancing ones on the Sydney Stock Exchange by 581 to 462 and 416 ended unchanged.
Shares in Mesoblast Ltd (ASX:MSB) rose to 52-week highs; up 17.38% or 0.26 to 1.79. Shares in Domino'S Pizza Enterprises Ltd (ASX:DMP) fell to 5-year lows; falling 5.65% or 1.71 to 28.54.
The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 2.86% to 10.70.
Gold Futures for December delivery was down 0.85% or 22.10 to $2,564.40 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 0.58% or 0.40 to hit $68.03 a barrel, while the January Brent oil contract fell 0.51% or 0.37 to trade at $71.91 a barrel.
AUD/USD was unchanged 0.35% to 0.65, while AUD/JPY fell 0.02% to 100.81.
The US Dollar Index Futures was up 0.26% at 106.65.
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Canada stocks higher at close of trade; S&P/TSX Composite up 0.26%
Investing.com – Canada stocks were higher after the close on Wednesday, as gains in the IT, Energy and Consumer Discretionary sectors led shares higher.
At the close in Toronto, the S&P/TSX Composite rose 0.26% to hit a new all time high.
The best performers of the session on the S&P/TSX Composite were CAE Inc. (TSX:CAE), which rose 11.94% or 3.22 points to trade at 30.18 at the close. Meanwhile, Shopify Inc (TSX:SHOP) added 5.87% or 8.94 points to end at 161.20 and Suncor Energy Inc (TSX:SU) was up 4.21% or 2.24 points to 55.40 in late trade.
The worst performers of the session were Orla Mining Ltd (TSX:OLA), which fell 9.76% or 0.60 points to trade at 5.55 at the close. Finning International Inc . (TSX:FTT) declined 9.11% or 3.80 points to end at 37.92 and Maple Leaf Foods Inc . (TSX:MFI) was down 5.33% or 1.20 points to 21.30.
Falling stocks outnumbered advancing ones on the Toronto Stock Exchange by 512 to 432 and 94 ended unchanged.
Shares in CAE Inc. (TSX:CAE) rose to 52-week highs; rising 11.94% or 3.22 to 30.18. Shares in Shopify Inc (TSX:SHOP) rose to 52-week highs; rising 5.87% or 8.94 to 161.20.
The S&P/TSX 60 VIX, which measures the implied volatility of S&P/TSX Composite options, was down 5.05% to 10.35.
Gold Futures for December delivery was down 0.94% or 24.60 to $2,581.70 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 0.13% or 0.09 to hit $68.03 a barrel, while the January Brent oil contract rose 0.03% or 0.02 to trade at $71.91 a barrel.
CAD/USD was unchanged 0.42% to 0.71, while CAD/EUR unchanged 0.16% to 0.68.
The US Dollar Index Futures was up 0.42% at 106.39.
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Dj Inside Vw And Rivian's $5.8 Billion Bet To Rescue Each Other
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Dj Inside Vw And Rivian's Big Bet To Rescue Each Other
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Tesla and 2 More Stock Picks to Invest in the 'Red Wave' Election Results
While the final House votes are still being tallied, the latest projections indicate that Republicans are set to take control of the lower chamber of Congress alongside the Senate, clearing the path a full GOP sweep of the executive and legislative branches. Investors have been quick to cheer an expected pro-business agenda from President-elect Trump, which is broadly anticipated to feature investments in domestic manufacturing and infrastructure, widespread deregulation, and fresh tax incentives. Additionally, shifts in environmental policies could affect the renewable energy and waste management industries.
Against this backdrop, analysts at Oppenheimer have highlighted three stocks that could benefit from anticipated policy changes under the incoming “Red Wave” in Washington, D.C.: Caterpillar , a leader in heavy equipment manufacturing expected to benefit from infrastructure spending and reshoring trends; Tesla , the domestic electric vehicle (EV) leader whose CEO Elon Musk is a close ally of Trump's; and Republic Services , a top player in waste management and recycling that could see a boost for its landfill biogas initiatives. Here's a closer look at all three.
#1. Tesla
Tesla has already experienced a meteoric rise following Donald Trump's election win. The stock has surged 32% in the past week, reaching a 52-week high above $358 in the process and reclaiming a $1 trillion market cap. TSLA is now up 33.8% on a YTD basis after spending most of 2024 in the red, although the shares remain down about 15% from their 2021 highs.
Musk, who was openly supportive of Trump during the campaign, could see Tesla benefit from the incoming administration’s policies. For instance, Trump’s potential tariffs on Chinese goods could make it harder for Chinese EVs to penetrate the U.S. market. This would be an advantage for Tesla, which manufactures EVs domestically. As a result, Tesla could also face fewer cost increases on parts than domestic competitors reliant on imports, giving it a stronger competitive edge in U.S. pricing.
In addition to these potential policy tailwinds, Tesla is showing solid growth in its core business, as highlighted in the third-quarter earnings report released on Oct. 23. The company posted a net profit of $2.17 billion, beating estimates of $2.01 billion, although revenue slightly missed expectations at $25.18 billion against a forecast of $25.47 billion. Nevertheless, margins beat estimates, which came as a major relief to investors amid the ongoing EV price war. According to Tesla, it is currently positioned between "two major growth waves."
Earlier in the month, Tesla’s Q3 delivery report had showed that the company delivered 462,890 vehicles, topping consensus estimates and marking a 4% increase over the previous quarter, and 6% year-over-year. Looking forward, Musk projected a 20% to 30% increase in vehicle growth by 2025.
Previously, Tesla’s robotaxi announcement on Oct. 10 had sent the stock reeling as investors reacted to a lack of details, but a recent patent win for the automaker could reveal more insights about the company's ultimate strategy on autonomous driving.
Tesla appears to be a compelling long-term investment, especially if it achieves its autonomous driving goals. However, the company's valuation remains a concern. Despite being a low-margin automaker, Tesla is valued similarly to a disruptive tech company, trading at a forward adjusted price-to-earnings (P/E) ratio of around 140x. This valuation reflects high market expectations for growth, which is worth considering for investors who may not have the patience or risk tolerance to ride out some of Tesla's notorious missed deadlines.
While Tesla bulls, including longtime enthusiast Dan Ives of Wedbush, have weighed in optimistically on the potential impact of a second Trump administration, the stock remains a “Hold” overall.
#2. Caterpillar
With a market cap of $191.5 billion, the construction and mining equipment giant Caterpillar has reached all-time highs this year. The stock is up 32.9% year-to-date and 64% over the past 52 weeks, outpacing the broader S&P 500 Index .
Known for its reliable dividend history, Caterpillar has increased its dividend at an average 7.5% growth rate over the past five years. Currently, it pays a quarterly dividend of $1.41 per share, yielding 1.42%. With over 30 years of consistent dividend growth, CAT is a Dividend Aristocrat, and remains a top choice for passive income investors.
On Oct. 30, Caterpillar reported its third-quarter earnings, which caused a 2% drop in the stock as the results missed expectations. Revenue was down 4%, totaling $16.11 billion, with the Construction Industries segment seeing a 9% decline on lower sales volumes and unfavorable pricing. However, the Energy & Transportation segment experienced 5% growth, driven by rising demand for power generation. Caterpillar attributed the sales volume drop of $759 million mainly to reduced end-user equipment sales and unfavorable dealer inventory adjustments.
On an adjusted basis, Caterpillar reported adjusted EPS of $5.17, while EBITDA of $3.6 billion represented a 7% year-over-year decrease.
CAT maintains a strong balance sheet, and generated ME&T cash flow of $2.7 billion during Q3. The company also increased its forecast for full-year ME&T free cash flow, which is now anticipated to reach the upper end of its previously stated $5-10 billion range.
From a valuation perspective, Caterpillar’s forward adjusted price-to-earnings (P/E) ratio of 18.13 appears attractive, representing a modest discount to both the sector median of 21.1 and its own five-year average. This positions Caterpillar as a relatively affordable entry in the industrial sector.
Wall Street analysts have a consensus “moderate buy” rating on Caterpillar, which has surpassed the mean price target of $379.39.
#3. Republic Services
With a market cap of $66.3 billion, Republic Services stock has performed quite respectably against the broader market, gaining 34.4% over the past 52 weeks and hitting a new high of $214.96 to start this week.
Additionally, Republic's continued commitment to shareholder value through dividends adds some appeal. The company offers a quarterly dividend of $0.58 per share, yielding 1.10%, that's backed by over two decades of consistent growth.
Along with its core, recession-proof operations in waste collection and recycling, Oppenheimer expects RSG to benefit from policy shifts that favor the company's operations in converting landfill gas to energy.
Republic Services, in collaboration with Archaea Energy, is currently developing a renewable natural gas (RNG) facility at the Middle Point Landfill in Tennessee. This project will convert landfill gas into a low-carbon fuel, supporting the company’s sustainability goals while reducing greenhouse gas emissions. The RNG facility is part of a broader initiative to build 39 new RNG projects at landfills across the country. Republic Services already operates 77 renewable energy projects, generating electricity and RNG from its landfills to fuel its fleet and help communities meet sustainability targets.
On Oct. 29, RSG reported an adjusted Q3 profit of $1.81 per share, which comfortably surpassed consensus estimates, while revenue rose 6.5% to $4.08 billion, but slightly missed Wall Street's forecast. The company's gross margins and operating margins improved slightly to 41% and 20.8%, respectively, in the quarter.
Overall, analysts have given Republic Services a consensus rating of “moderate buy,” with a mean price target of $221.84.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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Gartner, Inc. (IT) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Gartner (IT)? Shares have been on the move with the stock up 4.1% over the past month. The stock hit a new 52-week high of $559 in the previous session. Gartner has gained 21.7% since the start of the year compared to the 27% move for the Zacks Business Services sector and the 21.9% return for the Zacks Consulting Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 5, 2024, Gartner reported EPS of $2.5 versus consensus estimate of $2.45.
For the current fiscal year, Gartner is expected to post earnings of $11.88 per share on $6.24 billion in revenues. This represents a 4.85% change in EPS on a 5.61% change in revenues. For the next fiscal year, the company is expected to earn $13.35 per share on $6.74 billion in revenues. This represents a year-over-year change of 12.38% and 8.07%, respectively.
Valuation Metrics
Gartner may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Gartner has a Value Score of D. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 46.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.8X. On a trailing cash flow basis, the stock currently trades at 39.1X versus its peer group's average of 20.9X. Additionally, the stock has a PEG ratio of 3.43. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Gartner currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gartner passes the test. Thus, it seems as though Gartner shares could have a bit more room to run in the near term.
How Does IT Stack Up to the Competition?
Shares of IT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Charles River Associates (CRAI). CRAI has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Charles River Associates beat our consensus estimate by 12.03%, and for the current fiscal year, CRAI is expected to post earnings of $7.47 per share on revenue of $676.12 million.
Shares of Charles River Associates have gained 6.3% over the past month, and currently trade at a forward P/E of 28.84X and a P/CF of 21.86X.
The Consulting Services industry is in the top 23% of all the industries we have in our universe, so it looks like there are some nice tailwinds for IT and CRAI, even beyond their own solid fundamental situation.
Zacks Investment Research
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Dow Jumps Over 400 Points; Monday.com Shares Fall After Q3 Results
U.S. stocks traded higher this morning, with the Dow Jones index gaining more than 400 points on Monday.
Following the market opening Monday, the Dow traded up 0.98% to 44,417.88 while the NASDAQ rose 0.18% to 19,321.30. The S&P 500 also rose, gaining, 0.32% to 6,014.50.
Consumer discretionary shares surged by 1.9% on Monday.
In trading on Monday, information technology shares fell by 0.4%.
Top Headline
Shares of Monday.com Ltd fell around 18% on Monday after the company reported results for its third quarter.
The company reported fiscal third-quarter 2024 revenue growth of 33% Y/Y to $251.0 million, beating the analyst consensus estimate of $246.1 million. The project management software company’s adjusted EPS of 85 cents beat the analyst consensus estimate of 63 cents.
Monday.com raised 2024 revenue guidance to $964 million–$966 million (prior $956 million–$961 million) against the consensus of $960.2 million and an adjusted operating margin of 12%–13% (prior 10%-11%)
Equities Trading UP
CERo Therapeutics Holdings, Inc. shares shot up 190% to $0.2043 after the company announced the presentation of preclinical data demonstrating the capability of CER-1236 to kill ovarian cancer cells in preclinical models
Shares of FOXO Technologies Inc. got a boost, surging 44% to $0.7149.
New Horizon Aircraft Ltd. shares were also up, gaining 37% to $0.3969.
Equities Trading DOWN
1847 Holdings LLC shares dropped 46% to $1.96. 1847 Holdings signed a definitive agreement to acquire a cabinet, door & millwork manufacturer for $18.75 million.
Shares of RAPT Therapeutics, Inc. were down 38% to $1.80 after the company terminated its Zelnecirnon program following an FDA clinical hold due to a severe adverse event involving liver injury.
Nexalin Technology, Inc. was down, falling 30% to $2.65. Nexalin Technology's CEO issued a letter to shareholders.
Commodities
In commodity news, oil traded down 2.2% to $68.81 while gold traded down 1.2% at $2,661.90.
Silver traded down 0.8% to $31.19 on Monday, while copper fell 0.9% to $4.2690.
Euro zone
European shares were higher today. The eurozone's STOXX 600 gained 1.2%, Germany's DAX gained 1.4% and France's CAC 40 gained 1.2%. Spain's IBEX 35 Index rose 0.6%, while London's FTSE 100 rose 0.7%.
The BNP Paribas Real Estate Construction PMI in Ireland rose to 49.4 in October versus 49.0 in September,
Asia Pacific Markets
Asian markets closed mostly higher on Monday, with Japan's Nikkei 225 gaining 0.08%, Hong Kong's Hang Seng Index falling 1.45%, China's Shanghai Composite Index gaining 0.51% and India's BSE Sensex gaining 0.01%.
China's annual inflation rate was 0.3% in October compared to September's reading of 0.4%, while producer prices declined by 2.9% year-over-year in October. China’s vehicle sales climbed by 7% year-over-year to 3.05 million units in October compared to a 1.7% decline in the prior month.
The gauge for Japan's service sector fell to 47.5 in October compared to a revised reading of 47.8 in the prior month, while Japan's current account surplus fell to JPY 1,717.1 billion in September from JPY 2,954.2 billion in the year-ago month.
Economics
No major economic reports are scheduled for released today.
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