The Federal Reserve started taking actions this month that are likely to lead to lower interest rates. It just announced a 50-basis-point reduction to the federal funds rate, and there could be more cuts coming before the end of the year, especially if the U.S. economy shows further signs of slowing. For investors, a rate-cutting environment could be an opportune time to buy stocks that could benefit from reduced rates. Three companies that could see significant upsides from falling interest rates are Pfizer (NYSE: PFE), Carnival (NYSE: CCL), and Verizon Communications (NYSE: VZ). Here’s why I think these three companies…
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Image source: Getty Images The BT (LSE: BT.A) share price recently surprised me, hitting new highs in September when I was sure it would dip. The move up to 148p on 18 September last week was its highest price since June last year. The growth follows a period of extreme volatility after the shares jumped 28% in May. A jump I felt sure would lead to a correction — yet here we are. Turns out BT’s controversial transition to digital may be going better than expected. But I’m still a bit wary about the stock. Its £14.5bn market-cap’s overshadowed by…
On Tuesday, Citi adjusted its outlook on TripAdvisor (NASDAQ:), reducing the price target from the previous $20.00 to $16.00, while keeping a Neutral rating on the stock. The revision follows TripAdvisor’s second quarter of 2024 financial results, which led to changes in Citi’s analytical model. The firm’s analyst cited persistent demand headwinds for Hotel Meta (NASDAQ:) searches in July as a key factor for the adjustment. These headwinds are expected to continue, influencing the full-year revenue projections to increase at a lower single-digit rate. Additionally, the analyst anticipates TripAdvisor’s adjusted EBITDA margin to contract by 100 to 200 basis points,…
Google’s $10 million contract with early-stage carbon removal startup Holocene offers a unique but risky template for corporations evaluating direct air capture technology that are deterred by the high prices commanded by this approach. Under the deal, the tech company will pay $100 per metric ton for 100,000 tons of carbon removal from Holocene projects, starting at an unspecified date in the early 2030s. It’s the lowest publicly disclosed price for a deal involving direct air capture, a method of removing carbon dioxide directly from the atmosphere regardless of the location. The average per-ton price for this technology is far…
We recently compiled a list of the 7 Best Transportation Stocks To Invest In Now. In this article, we are going to take a look at where United Airlines Holdings, Inc. (NASDAQ:UAL) stands against the other transportation stocks.At the September meeting, the Fed decided to lower its target range for the federal funds rate by 0.5%, bringing it down to 4.75%-5%. The decision is based on progress toward reducing inflation, which remains somewhat elevated but is moving closer to the Fed’s 2% target.This could be a good sign for the transportation industry as lower rates reduce borrowing costs which could help…
A San Francisco venture firm developed a proprietary model it calls “moneyball for venture capital.”The firm is revealing 19 exceptional female investors with a keen eye for identifying future unicorns.Women still comprise only about 11% of investing partners at US VC firms. Thanks for signing up! Access your favorite topics in a personalized feed while you’re on the go. download the app By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy. You can opt-out at any time by visiting our Preferences page or by clicking “unsubscribe” at the bottom of the email. Even though venture capitalists…
Rare earths are mainly used in permanent magnets. Their extraction is complex and costly. Mining mainly takes place in China. US Geological Survey. (31. Januar, 2024). Anteil der wichtigsten Erzeugerländer an der weltweiten Minenproduktion von Seltenen Erden im Jahr 2023 [Graph]. In Statista. Zugriff am 03. September 2024, von https://de.statista.com/statistik/daten/studie/281730/umfrage/anteil-fuehrender-erzeugerlaender-an-der-weltproduktion-seltener-erden/ Statista × The majority of rare earths are extracted in Chinese mines, as Statista has determined. The statistics provider has determined the shares of the most important producing countries in the global mine production of rare earths in 2023 based on data from the US Geological Survey. According to the study,…
Warren Buffett, CEO of Berkshire Hathaway, oversees a portfolio of 45 publicly traded stocks and securities worth $315 billion, in addition to a $277 billion cash pile and numerous private, wholly owned businesses.Buffett has a remarkable track record. His investment picks have propelled Berkshire stock to a compound annual return of 19.8% since he took the helm in 1965, crushing the 10.2% average annual gain in the S&P 500 (SNPINDEX: ^GSPC) index over the same period.Buffett knows average investors would struggle to replicate his returns by picking individual stocks, so he often recommends they buy exchange-traded funds (ETFs) instead. And…
It’s often claimed that small-cap stocks are more interest-rate sensitive than their large-cap counterparts because of their reliance on outside financing. This seems plausible. But what do the data say? In this blog post, I explore the relationship between small- and large-cap stocks and interest-rate changes using the Stocks, Bonds, Bills and Inflation® (SBBI®) monthly dataset — which is available to CFA Institute members — and the Robert Shiller long-bond rate dataset. I use graphs and correlations (and a little regression). My main findings are: Small-stock monthly returns are no more sensitive to rate changes than large-stock returns. Small stocks…
Small caps to grow at a multiple of the ‘Magnificent Seven,’ says Richard BernsteinSmall caps are poised to see massive gains over the next few months, according to Richard Bernstein of Richard Bernstein Advisors.”The reason, I think, that we’re such big bulls on mid-caps and small caps is that that’s where the earnings growth is forecasted to be,” the firm’s CEO and chief investment officer told CNBC’s “The Exchange” on Monday. “By the end of this year [or] early next year, we’re going to find that small caps … are going to grow at a multiple of what, say, the…