Latest news with #analysts
Geeky Gadgets
3 hours ago
- Business
- Geeky Gadgets
Meet Mo: The AI Assistant Transforming Financial Analysis Forever
What if you could reclaim nearly a third of your workday? For Morningstar's investment analysts, this isn't a hypothetical—it's a reality. With the introduction of Mo, an AI-powered research assistant, Morningstar has transformed how its teams approach the demanding world of financial analysis. Built on the innovative LangGraph intelligence engine, Mo is more than just a tool; it's a fantastic option. By automating repetitive tasks and reducing research time by an impressive 30%, Mo enables analysts to focus on what truly matters: crafting strategies and making informed decisions. In an industry where precision and efficiency are paramount, this shift isn't just helpful—it's innovative. In this overview, Morningstar explain how Mo is reshaping the landscape of investment research. From its ability to process vast datasets with advanced natural language processing to its modular design that ensures adaptability in a rapidly evolving industry, Mo offers a glimpse into the future of financial technology. You'll discover how this AI assistant not only enhances productivity but also minimizes errors and fosters collaboration across teams. As you read on, consider this: how might tools like Mo redefine the boundaries of what's possible in your own field? Morningstar's AI-Powered Assistant How Mo Was Built: A Modular and Scalable Innovation Mo was developed by a dedicated team of engineers to address the challenge of deploying AI across Morningstar's extensive ecosystem, which includes over 60 products and supports a workforce of 12,000 employees. The team adopted a modular architecture, prioritizing scalability and adaptability to ensure seamless integration with evolving AI technologies. This forward-looking approach allows Mo to remain relevant as artificial intelligence continues to advance, making it a sustainable solution for the ever-changing financial industry. The modular design also simplifies updates and maintenance, making sure that Mo can incorporate the latest technological advancements without disrupting existing workflows. This adaptability positions Mo as a long-term asset, capable of evolving alongside the needs of investment professionals and the broader financial sector. What Mo Does: Transforming Research and Analysis Mo's primary function is to process and summarize vast amounts of investment data efficiently. It handles information from over 600,000 investments and hundreds of thousands of research articles, using advanced natural language processing (NLP) and multi-agent workflows to extract insights, refine responses, and ensure accuracy. The results are measurable and impactful: Research time reduced by 20%. by 20%. Writing time cut by 50%. by 50%. Editing errors decreased by 65%. These improvements not only save time but also enhance the quality and reliability of the insights you depend on for critical decision-making. By streamlining the research process, Mo enables you to focus on interpreting data and crafting strategies rather than being bogged down by manual tasks. Morningstar Mo Overview Watch this video on YouTube. Find more information on AI assistants by browsing our extensive range of articles, guides and tutorials. How Mo Enhances Productivity and Decision-Making For investment professionals, Mo delivers precise and actionable insights that are both accurate and verifiable. By automating time-intensive tasks like data summarization, error checking, and information synthesis, it allows you to dedicate more time to strategic analysis and client engagement. This shift in focus can lead to more informed decisions and stronger client relationships. Mo's utility extends beyond analysts. Internal teams such as client success managers, quantitative analysts, and developers have seamlessly integrated Mo into their workflows. By streamlining daily operations, Mo has proven its versatility and value across a wide range of roles within Morningstar. This broad adoption underscores its potential to enhance productivity and collaboration across the organization. Future-Proof Design: Adapting to a Dynamic Industry Mo's modular architecture ensures it remains adaptable to the rapid advancements in AI technology. This design not only supports scalability but also assists the integration of new features and capabilities as they emerge. As the financial industry continues to evolve, Morningstar can seamlessly incorporate innovative technologies into Mo, making sure it remains a valuable tool for investment professionals. The forward-thinking design also reduces the complexity of maintaining and updating the system, allowing Morningstar to focus on innovation rather than troubleshooting. This adaptability ensures that Mo will continue to meet your needs, delivering consistent value in an industry characterized by constant change. Media Credit: LangChain Filed Under: AI, Top News Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
Yahoo
6 hours ago
- Business
- Yahoo
Snowflake Inc. (SNOW) is Attracting Investor Attention: Here is What You Should Know
Snowflake Inc. (SNOW) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this company have returned +14.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Internet - Software industry, to which Snowflake belongs, has gained 5.6% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Snowflake is expected to post earnings of $0.26 per share for the current quarter, representing a year-over-year change of +44.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%. For the current fiscal year, the consensus earnings estimate of $1.06 points to a change of +27.7% from the prior year. Over the last 30 days, this estimate has changed -8.8%. For the next fiscal year, the consensus earnings estimate of $1.5 indicates a change of +41.7% from what Snowflake is expected to report a year ago. Over the past month, the estimate has changed -3.5%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Snowflake. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Snowflake, the consensus sales estimate for the current quarter of $1.08 billion indicates a year-over-year change of +24.9%. For the current and next fiscal years, $4.51 billion and $5.51 billion estimates indicate +24.5% and +22% changes, respectively. Snowflake reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +25.7%. EPS of $0.24 for the same period compares with $0.14 a year ago. Compared to the Zacks Consensus Estimate of $1 billion, the reported revenues represent a surprise of +3.73%. The EPS surprise was +9.09%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Snowflake is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Snowflake. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Yahoo
8 hours ago
- Business
- Yahoo
Why Serviceware SE (ETR:SJJ) Could Be Worth Watching
Serviceware SE (ETR:SJJ), is not the largest company out there, but it led the XTRA gainers with a relatively large price hike in the past couple of weeks. The company is now trading at yearly-high levels following the recent surge in its share price. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let's examine Serviceware's valuation and outlook in more detail to determine if there's still a bargain opportunity. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The stock seems fairly valued at the moment according to our valuation model. It's trading around 10.75% above our intrinsic value, which means if you buy Serviceware today, you'd be paying a relatively reasonable price for it. And if you believe that the stock is really worth €13.72, then there isn't really any room for the share price grow beyond what it's currently trading. Is there another opportunity to buy low in the future? Since Serviceware's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for Serviceware Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With revenues expected to grow by 31% over the next couple of years, the future seems bright for Serviceware. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? SJJ's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping tabs on SJJ, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Diving deeper into the forecasts for Serviceware mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Serviceware, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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
Reuters
9 hours ago
- Business
- Reuters
German producer prices fall 1.2% y/y in May
June 20 (Reuters) - German producer prices fell in line with expectations in May, decreasing by 1.2% on the year, the federal statistics office reported on Friday. Analysts polled by Reuters had expected a 1.2% decline. The office publishes more detailed data, opens new tab on its website.
Yahoo
15 hours ago
- Business
- Yahoo
Estimating The Intrinsic Value Of Oiltek International Limited (SGX:HQU)
The projected fair value for Oiltek International is S$0.46 based on 2 Stage Free Cash Flow to Equity With S$0.55 share price, Oiltek International appears to be trading close to its estimated fair value Our fair value estimate is 4.0% lower than Oiltek International's analyst price target of RM0.48 Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Oiltek International Limited (SGX:HQU) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM85.5m RM39.8m RM40.7m RM41.5m RM42.4m RM43.4m RM44.4m RM45.4m RM46.5m RM47.5m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ 2.12% Est @ 2.19% Est @ 2.24% Est @ 2.28% Est @ 2.30% Est @ 2.32% Est @ 2.33% Present Value (MYR, Millions) Discounted @ 8.6% RM78.7 RM33.7 RM31.7 RM29.8 RM28.1 RM26.4 RM24.9 RM23.4 RM22.0 RM20.8 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM319m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.4%. We discount the terminal cash flows to today's value at a cost of equity of 8.6%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM48m× (1 + 2.4%) ÷ (8.6%– 2.4%) = RM776m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM776m÷ ( 1 + 8.6%)10= RM339m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM658m. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of S$0.6, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Oiltek International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.6%, which is based on a levered beta of 1.058. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Oiltek International Strength Earnings growth over the past year exceeded the industry. Currently debt free. Weakness Dividend is low compared to the top 25% of dividend payers in the Construction market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the Singaporean market. Threat Paying a dividend but company has no free cash flows. Revenue is forecast to grow slower than 20% per year. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Oiltek International, there are three relevant aspects you should explore: Risks: For example, we've discovered 1 warning sign for Oiltek International that you should be aware of before investing here. Future Earnings: How does HQU's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the SGX every day. If you want to find the calculation for other stocks just search here. 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
