logo
3 surprising market winners in 2025

3 surprising market winners in 2025

Washington Post04-06-2025

Investors brave enough to peek at their account statements know that it's been a rocky 2025.
Even before tariff-related volatility, DeepSeek AI's launch clouded the major technology theme that powered the market in 2023 and 2024, as AI stocks entered a bear market in March.
But there have been equity gains to be had in 2025. When I look at year-to-date returns across indexes , I notice a few surprising stars: European stocks, Latin America, and real estate investment trusts.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Tesla Starts Long-Awaited Robotaxi Service With Low-Key Rollout
Tesla Starts Long-Awaited Robotaxi Service With Low-Key Rollout

Bloomberg

time11 minutes ago

  • Bloomberg

Tesla Starts Long-Awaited Robotaxi Service With Low-Key Rollout

Tesla Inc. rolled out its long-promised driverless taxi service to a handful of riders Sunday, a modest debut for what Elon Musk sees as a transformative new business line. The first robotaxi trips were limited to a narrow portion of Tesla's hometown of Austin, with an employee in each vehicle keeping tabs on the operations. The carmaker hand-picked a friendly crop of initial riders, which featured investors and social-media influencers who live-streamed their trips.

Baby Bunting Group Limited's (ASX:BBN) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
Baby Bunting Group Limited's (ASX:BBN) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?

Yahoo

time21 minutes ago

  • Yahoo

Baby Bunting Group Limited's (ASX:BBN) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?

Most readers would already be aware that Baby Bunting Group's (ASX:BBN) stock increased significantly by 6.9% over the past month. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to Baby Bunting Group's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Baby Bunting Group is: 5.9% = AU$6.2m ÷ AU$106m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each A$1 of shareholders' capital it has, the company made A$0.06 in profit. View our latest analysis for Baby Bunting Group We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. On the face of it, Baby Bunting Group's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 15% either. Therefore, it might not be wrong to say that the five year net income decline of 8.6% seen by Baby Bunting Group was probably the result of it having a lower ROE. We reckon that there could also be other factors at play here. Such as - low earnings retention or poor allocation of capital. So, as a next step, we compared Baby Bunting Group's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 7.2% over the last few years. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is Baby Bunting Group fairly valued compared to other companies? These 3 valuation measures might help you decide. While the company did payout a portion of its dividend in the past, it currently doesn't pay a regular dividend. This implies that potentially all of its profits are being reinvested in the business. On the whole, we feel that the performance shown by Baby Bunting Group can be open to many interpretations. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Hong Leong Industries Berhad's (KLSE:HLIND) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
Hong Leong Industries Berhad's (KLSE:HLIND) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?

Yahoo

time25 minutes ago

  • Yahoo

Hong Leong Industries Berhad's (KLSE:HLIND) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?

Hong Leong Industries Berhad (KLSE:HLIND) has had a rough three months with its share price down 2.9%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Hong Leong Industries Berhad's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Hong Leong Industries Berhad is: 25% = RM634m ÷ RM2.6b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.25. Check out our latest analysis for Hong Leong Industries Berhad We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To begin with, Hong Leong Industries Berhad has a pretty high ROE which is interesting. Additionally, the company's ROE is higher compared to the industry average of 8.0% which is quite remarkable. This probably laid the groundwork for Hong Leong Industries Berhad's moderate 18% net income growth seen over the past five years. Next, on comparing Hong Leong Industries Berhad's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 18% over the last few years. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Hong Leong Industries Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. While Hong Leong Industries Berhad has a three-year median payout ratio of 59% (which means it retains 41% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow. Moreover, Hong Leong Industries Berhad is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. In total, we are pretty happy with Hong Leong Industries Berhad's performance. Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable. Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals. So it may be worth checking this free detailed graph of Hong Leong Industries Berhad's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store