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Yahoo
21 hours ago
- Business
- Yahoo
Is Regions Financial Stock Outperforming the S&P 500?
Birmingham, Alabama-based Regions Financial Corporation (RF) is a financial holding company that provides banking and bank-related services to individual and corporate customers. With a market cap of $19.4 billion, the company provides consumer and commercial banking, wealth management, credit life insurance, leasing, commercial accounts receivable factoring, specialty mortgage financing, and securities brokerage services. Companies worth $10 billion or more are generally described as 'large-cap stocks,' and RF perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the regional banks industry. The company boasts a strong regional presence, diversified revenue streams, and improved efficiency. Its robust capital position enhanced digital capabilities, and diversified loan portfolio supports long-term growth. RF's experienced management, disciplined risk management, and customer-centric approach further solidify its competitive edge. 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Despite its notable strength, RF shares slipped 21.5% from their 52-week high of $27.96, achieved on Nov. 25, 2024. Over the past three months, RF stock has gained 2.2%, underperforming the S&P 500 Index's ($SPX) 6.5% rise during the same time frame. In the longer term, shares of RF dipped 6.6% on a YTD basis, underperforming SPX's YTD gains of 1.7%. However, the stock climbed 15.7% over the past 52 weeks, outperforming SPX's 9% returns over the last year. To confirm the bullish trend, RF has been trading above its 50-day moving average since early May. However, it has been trading below its 200-day moving average since early March. RF has outperformed due to its strong presence in growing regional economies, with over 30% of deposits coming from noninterest-bearing sources. The stock is up nearly 145% in the last five years, and stands to benefit from deregulation under the Trump administration, allowing for more lending and potential mergers and acquisitions in the regional bank space. On Apr. 17, RF shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $0.54 beat Wall Street expectations of $0.51. The company's adjusted revenue was $1.81 billion, missing Wall Street forecasts of $1.82 billion. RF's rival, PNC Financial Services Group, Inc. (PNC) shares lagged behind the stock, with a 9.1% downtick on a YTD basis and a 13.5% gain over the past 52 weeks. Wall Street analysts are moderately bullish on RF's prospects. The stock has a consensus 'Moderate Buy' rating from the 25 analysts covering it, and the mean price target of $24.74 suggests a potential upside of 12.7% from current price levels. On the date of publication, Neha Panjwani 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. This article was originally published on Sign in to access your portfolio
Yahoo
21 hours ago
- Business
- Yahoo
Is Huntington Bancshares Stock Outperforming the S&P 500?
Valued at a market cap of $23 billion, Huntington Bancshares Incorporated (HBAN) is a bank holding company headquartered in Columbus, Ohio. It offers a comprehensive range of financial services, including commercial and consumer banking, mortgage lending, vehicle, equipment, and distribution finance, treasury management, wealth and investment management, and capital markets services. Companies worth $10 billion or more are typically classified as 'large-cap stocks,' and HBAN fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the banks - regional industry. The company's strengths lie in its strong regional dominance in the Midwest, supported by a large branch network and a well-diversified financial services portfolio that caters to both retail and commercial clients. Its customer-centric approach, digital innovation, and strong risk management framework help drive consistent loan growth and client retention. 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! This bank holding company is currently trading 14.7% below its 52-week high of $18.45, reached on Nov. 25, 2024. HBAN has surged 6.6% over the past three months, slightly outpacing the S&P 500 Index's ($SPX) 6.5% return during the same time frame. Moreover, in the longer term, HBAN has rallied 26.2% over the past 52 weeks, outpacing SPX's 9% rise over the same time frame. However, on a YTD basis, shares of HBAN are down 3.3%, lagging behind SPX's 1.7% uptick. To confirm its recent bullish trend, HBAN has been trading above its 50-day moving average since early May. The stock's current price level is mirroring its 200-day moving average, indicating stability. On Apr. 17, shares of HBAN closed up more than 3% after its strong Q1 earnings release. Due to higher interest income and a decline in interest expenses, the company's adjusted net interest income improved 10.8% year-over-year, reaching $1.4 billion. Moreover, its revenue net of interest expense advanced 9.5% from the year-ago quarter to $1.9 billion, exceeding the consensus estimates by 2.1%. Meanwhile, its EPS of $0.34 grew 30.8% from the same period last year and came in 9.7% above Wall Street expectations. Key performance drivers included growth in average total deposits, expansion in average loans and leases, an improved net interest margin, and increased operating efficiency, as reflected in a lower efficiency ratio. HBAN has outpaced its rival, M&T Bank Corporation's (MTB) 23.8% rise over the past 52 weeks and 3.4% decline on a YTD basis. Looking at HBAN's recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy' from the 21 analysts covering it, and the mean price target of $17.75 suggests a 12.8% premium to its current price levels. On the date of publication, Neharika Jain 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. This article was originally published on Sign in to access your portfolio
Yahoo
21 hours ago
- Business
- Yahoo
Mark Zuckerberg Is ‘Doubling Down' on AI and That's Great News for META Stock
One of the most notable investment themes in recent memory is, of course, an increasing focus on artificial intelligence (AI). Social media giant Meta Platforms (META) is not above this trend among companies. In fact, Meta Platforms is doubling down. CEO Mark Zuckerberg has gone all-in on AI, and Wall Street is clearly taking notice. META stock has jumped a notable 45% from its April low of $479.80 per share as investors rally behind the firm's growing commitment to AI innovation. The latest jolt of momentum comes from Meta's massive $14.3 billion investment in Scale AI, a leading data-labeling startup whose CEO is now joining Meta's artificial general intelligence (AGI) team. This move comes right after Meta raised its 2025 capital expenditure forecast to as much as $72 billion. That figure underlines just how serious Zuckerberg is about leading the AI race. 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Despite such heavy spending, the market response has remained positive. With several analysts across the Street hiking their price targets for META stock and optimism running high, this AI-fueled rally is hard to ignore. All signs point to Meta remaining a major player in the next tech era — and that makes shares worth a much closer look. Meta Platforms has evolved far beyond its Facebook roots. As the powerhouse behind Instagram, WhatsApp, and Messenger, it still shapes how the world connects. But now the firm is setting its sights on the future of AI. Aside from its latest $14.3 billion bet on Scale AI, Meta has been steadily integrating AI into its core platforms since last year. In April 2025, the company launched Meta AI, a chatbot assistant that has already reached 1 billion monthly active users across its apps. Meta is also gaining traction in hardware, with AI-powered Ray-Ban smart glasses seeing user growth surge. Finally, the company is working on harnessing AI to supercharge ad targeting and boost user engagement across its entire app family, including Instagram and WhatsApp. META stock drew fresh attention on June 16, climbing 2.8% after the company announced plans to roll out ads within its WhatsApp messaging platform, unlocking a powerful new revenue stream from the app's massive global user base. Valued at around $1.75 trillion by market capitalization, Meta's aggressive AI strategy and new revenue channels are turning into a clear market win. The stock has climbed 18.8% so far in 2025, outshining most of its 'Magnificent Seven' peers. It's also outperforming the broader S&P 500 Index ($SPX) by a wide margin, with the benchmark up just 1.7% year-to-date. Meta kicked off fiscal 2025 with a blowout first-quarter earnings report on April 30, easily beating Wall Street's expectations on both the top and bottom lines. META stock jumped 4.2% in the following session as revenue surged 16% year-over-year (YOY) to $42.3 billion, topping forecasts of $41.2 billion. Even more impressive, earnings per share soared 37% to $6.43, crushing estimates by a notable 23.2% margin. Meta's ad business is showing serious strength, with key metrics moving solidly in the right direction. Ad impressions rose 5% YOY while the average price per ad jumped 10% YOY, signaling strong demand. And it's not just the ad side that's thriving. User engagement remains sky-high. In March 2025, Meta's family of apps reached 3.4 billion daily active users, up 6% from the prior year. CEO Mark Zuckerberg highlighted Meta's accelerating AI momentum, citing the success of Meta AI and the growing adoption of the firm's AI-powered smart glasses. Meta is heading into the second quarter with strong momentum, forecasting revenue to range between $42.5 billion and $45.5 billion. The company is also raising the bar on spending, boosting its 2025 capital expenditure outlook to a range of $64 billion to $72 billion, up from the previous range of $60 billion to $65 billion. This increase highlights Meta's sharpened focus on scaling its AI capabilities, with significant investments being poured into data centers to support its rapidly growing infrastructure. Wall Street is growing increasingly bullish on Meta, with major firms raising their price targets amid the company's aggressive AI push and new monetization strategies. Earlier this month, JPMorgan lifted its target on the stock to $735 from $675, reaffirming an 'Overweight' rating and highlighting Meta's dominant social media footprint and long-term growth strategy, particularly in AI and the Metaverse. Wells Fargo is also staying bullish on META stock, reiterating its 'Overweight' rating with a $664 target. The firm pointed to a potential $6 billion boost in WhatsApp ad revenue, a move that signals Meta's next big income stream is already in motion. Adding to the momentum, Oppenheimer bumped its price target to $775 from $665, citing a stronger-than-expected ad market and macro backdrop. While acknowledging some mixed feedback around Llama 4, the firm emphasized investor confidence in Meta's $14.3 billion Scale AI deal and its broader ability to 'unlock new business with AI.' Overall, Wall Street is giving Meta the green light with a 'Strong Buy' consensus that signals broad confidence in the company's growth trajectory and AI-driven future. Of the 53 analysts offering recommendations, 44 give META stock a 'Strong Buy' rating, three suggest a 'Moderate Buy,' four give it a 'Hold," and only two advocate for a 'Strong Sell" rating. META stock's average analyst price target of $704.57 indicates marginal upside potential from current price levels. However, the Street-high price target of $935 suggests that shares can still rally as much as 34% from here. On the date of publication, Anushka Mukherji 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. This article was originally published on
Yahoo
21 hours ago
- Automotive
- Yahoo
Nvidia's Bringing Sovereign AI to Germany. Should You Buy NVDA Stock Here?
Artificial intelligence (AI) darling Nvidia's (NVDA) CEO Jensen Huang has been championing the idea of 'sovereign AI' since 2023, a vision rooted in the belief that every nation should have ownership over its own AI, shaped by its unique language, culture, and values. And now, Europe is starting to take this message seriously. Just last week, the chip giant partnered with Deutsche Telekom (DTEGY) to introduce sovereign AI in Germany, unveiling plans to develop an AI-powered industrial cloud for European manufacturers. This so-called 'AI factory,' which will be operated by Deutsche Telekom, is expected to be up and running by 2026. It's designed to help European manufacturers integrate AI into a wide range of applications, from design and engineering to simulation, robotics, and digital twins. 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! In fact, this is just the beginning. Nvidia is also looking beyond Germany, with plans to expand its chip footprint into data centers across Spain, Italy, the United Kingdom, Finland, and Sweden. So, with sovereign AI finally gaining traction in Europe, is Nvidia's growing role in this development worth investors' attention? California-based Nvidia Corporation (NVDA) has rapidly risen to the forefront of the tech world, thanks to its game-changing advances in AI and GPU technology. From powering immersive gaming experiences to fueling data centers, autonomous vehicles, and high-performance computing, Nvidia's chips are the engine behind countless modern breakthroughs, firmly establishing the company as a driving force in the digital revolution. With a staggering $3.5 trillion market cap, Nvidia has cemented its place among the world's most valuable companies. But in 2025, the chip giant's meteoric rise has started to lose a bit of steam. A mix of geopolitical headwinds, including escalating U.S.-China trade tensions and tariff battles, along with growing investor caution around the pace of AI spending and the emergence of new competitive chips, have all weighed on investors' sentiment. After an eye-popping 794% return over the past three years, Nvidia is up just 7.3% so far this year, a far cry from its previous pace, yet still outpacing the broader S&P 500 Index's ($SPX) modest 1.7% gain during the same stretch. High-growth giants like Nvidia rarely come cheap, and with its dominant position in the AI world, that premium is expected. The stock currently trades at 35.4 times forward earnings, well above sector norms. However, on a positive note, that valuation is actually more reasonable than it's been in the past. Compared to its five-year average of 47.33x, Nvidia's current multiple suggests the stock, while still expensive, isn't as overheated as it once was. All eyes were on Nvidia last month, when the chip king dropped its fiscal 2026 first-quarter earnings results on May 28, and once again, it blew past expectations. Revenue skyrocketed 69% year-over-year to $44.1 billion, blowing past the $43.3 billion estimate. Once again, Nvidia's data center segment stole the spotlight, delivering aggressive growth as the company continues to power the engine behind the AI revolution. Nvidia's data center business delivered a wonderful 73% annual surge to $39.1 billion, accounting for a dominant 88% of the company's top-line figure. Meanwhile, its gaming segment, driven by demand for high-performance 3D chips, climbed 42% to $3.8 billion. Even its automotive and robotics division joined the growth party, accelerating 72% year over year to $567 million. During the quarter, Nvidia hit a regulatory speed bump when the U.S. government ruled that its previously approved H20 chip for China would face new restrictions. The impact was costly. Nvidia took a $4.5 billion charge for excess inventory tied to the chip and estimated it lost out on $2.5 billion in potential sales. As a result, the company's adjusted gross margin landed at 61%, but without the China-related hit, it would have been a much stronger 71.3%. On the bottom line, Nvidia posted adjusted earnings of $0.81 per share, up 33% year over year and topping estimates by 8%. Without the drag from the H20 chip charge, that figure would've jumped to $0.96. Nevertheless, investors appeared satisfied with the company's Q1 performance, with the stock soaring 3.3% on May 29. For the second quarter of fiscal 2026, Nvidia is projecting revenue of $45 billion, give or take 2%, a figure that already accounts for an estimated $8 billion hit from recent export control restrictions impacting its H20 chips. On the profitability front, GAAP and non-GAAP gross margins are expected to land at 71.8% and 72%, respectively, with a 50-basis-point wiggle room. Despite the headwinds, Nvidia is still aiming high, targeting gross margins in the mid-70% range by the end of the year. Overall, Wall Street's confidence in Nvidia remains rock-solid, with the stock still carrying a resounding 'Strong Buy' consensus rating, reflecting unwavering confidence in its long-term story. Of the 44 analysts offering recommendations, 37 are giving it a solid 'Strong Buy,' three suggest a 'Moderate Buy,' three advocate 'Hold,' and the remaining one gives a 'Strong Sell.' The average analyst price target of $174.02 indicates 23% potential upside from the current price levels. The Street-high price target of $220 suggests that NVDA could rally as much as 55% from here. As sovereign AI gains traction across Europe, Nvidia is positioning itself at the core of the region's AI ambitions. Through strategic partnerships like the one with Deutsche Telekom in Germany and a broader push into European data centers, the company is ensuring that even as countries strive for AI independence, they continue to heavily rely on Nvidia's technology. With China sales constrained by export restrictions, this European expansion opens up a timely new growth avenue. Plus, taking into account the company's strong fundamentals and continued backing from Wall Street, Nvidia's latest European expansion adds another powerful layer to its growth story. In a market where regional AI independence is becoming a priority, NVDA's strategic move certainly deserves investors' attention. On the date of publication, Anushka Mukherji 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. This article was originally published on
Economic Times
a day ago
- Business
- Economic Times
Asian stocks slide after Fed's inflation warning
While officials continued to pencil in two rate cuts in 2025, they downgraded their estimates for growth this year while lifting forecasts for unemployment and inflation. Asian equities experienced a dip following Jerome Powell's inflation outlook. The Fed held rates steady, signaling two potential cuts this year, but tariff-driven uncertainty complicates policy easing. Powell highlighted that tariffs are likely to boost prices, impacting consumers. Markets await further details on the global economy and geopolitical tensions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Asian equities dipped on Thursday after Federal Reserve Chair Jerome Powell said he expected inflation to pickup meaningfully in the coming regional gauge of shares was down 0.3%, as markets in Japan and Australia opened lower. US equity futures fell about 0.3% after the S&P 500 Index closed steady in the previous session. The dollar was little changed, and cash trading in Treasuries is closed Thursday for a US Fed left rates unchanged in its Wednesday meeting and indicated it still sees two further cuts this year. Yet Powell said tariff-driven economic uncertainty and inflation risk continued to complicate the central bank's bid to ease policy. Oil steadied as the Trump administration offered few clues about whether the US will join Israel's offensive aimed at destroying Tehran's nuclear broadly muted moves indicated a lack of direction across global markets as investors awaited further details on the global economy, US inflation and the prospect of heightened tension in the Middle East.'The Fed's assessment indicates that the economy is in good shape, aligning with current economic data,' said Tai Hui, APAC chief market strategist for JP Morgan Asset Management. 'However, trade policy, fiscal policy, and unintended consequences of policies from the Trump administration' are contributing to market volatility this year, he noted that increases in tariffs are likely to boost prices, while adding that the effects on inflation could be more persistent. He also declined to say if he'll stay on after his term ends.'Ultimately, the cost of the tariff has to be paid and some of it will fall on the end consumer,' Powell said. 'We know that's coming and we just want to see a little bit of that before we make judgments prematurely,' he Fed's decision to hold rates steady – coupled with Powell's latest warning on tariffs – underscores the delicate balance facing policymakers guiding the economy toward continued expansion. While officials continued to pencil in two rate cuts in 2025, they downgraded their estimates for growth this year while lifting forecasts for unemployment and inflation.'Powell played it safe,' said Haris Khurshid, chief investment officer at Karobaar Capital in Chicago. 'They're sticking to two cuts for now, but clearly rattled by tariffs. No urgency to move. It's a tough spot: growth slowing, inflation lingering, and geopolitical risk heating up.'While the median expectation for two rate cuts in 2025 didn't change, a number of officials lowered their projections. Seven officials now foresee no rate cuts this year, compared with four in March. Two others pointed to one cut this New Zealand dollar was stable Thursday after gross-domestic product data was slightly stronger than consensus expectations. Australian and New Zealand bond yields were little changed. The yen strengthened 0.2% against the in Asia, data set for release employment in Australia and rate decisions in Taiwan and the Philippines. Thailand faces fresh political uncertainty after the second-largest party in Prime Minister Paetongtarn Shinawatra's government quit the ruling Thursday the central banks of Switzerland, Norway, Turkey and the UK will also hand down rate decisions.
