Latest news with #geopoliticaltensions
Yahoo
2 hours ago
- Business
- Yahoo
Iran–Israel: Everything investors need to know
Investors weigh the market impact of the ongoing conflict between Israel and Iran as US President Trump considers US involvement. Yahoo Finance Senior Reporter Allie Canal outlines the latest and examines what experts have told Yahoo Finance. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Geopolitical tensions, we know in the Middle East, are putting Wall Street on edge. Joining us now is Yahoo Finance senior reporter, Ally, now with our weekly investor playbook. Yeah, uncertainties are building when it comes to whether or not the U.S. will enter the Israel-Iran conflict. The White House saying that President Trump will make his decision in roughly two weeks time. Markets have not really done much since the escalation of this conflict outside of that spike that we've seen in oil prices, but even oil prices haven't risen to the upside to the level that's concerning here. Goldman Sachs had a new note published earlier this week. They cited poly-market data that showed markets were pricing in about a 65% chance that the U.S. military takes action against Iran by July. At the same time though, there's also about a 50% chance that both sides can strike some sort of a deal or agreement by this year. Here's a bit more when it comes to what Wall Street strategists had to say. It's trending in a better direction. Markets are comfortable with where it's heading. I think investors' default mode on these things is just to say they don't really matter in the long term. There are two conditions where that's, where that's a different story. One is if you have direct U.S. involvement in the conflict, and the other one that we haven't seen, you know, really in any material way, would be a sustained spike in oil prices. I don't think there is a way to fully assess what Donald Trump is going to do because he himself has said he's not going to know what he does up until the moment he makes that decision. Expect the unexpected. That seems to be the theme right now for Wall Street at large. Now I mentioned oil prices, and we have secured three weeks straight of gains there. Brent, the international benchmark, that's hovering around $77 a barrel. Crude is at roughly $75, but again, that's not significant enough to lead to greater concerns when it comes to the inflationary spiral that that could create. Wall Street strategists have said that we need to see around 120 to about 130 bucks a barrel until we see some of those concerns. So until that happens, until the U.S. definitively enters this conflict and markets need to recalibrate some of that risk, I think we will continue to see this shrug from investors, and that's really been the general nonchalant mood for a lot of overhanging risks out there, not just tensions over in the Middle East, but also tariffs, deficit concerns. A large reason why it's because we have a lot of unanswered questions, and as we've seen throughout the entire year, things can just change so quickly. Just playing a little here, Ally, where it's 75. I wonder, you know, you never, you never want this to come across as cold, but I just wonder if the markets ultimately conclude, listen, as long as this stays limited, as long as it stays contained, the market is willing to look through it and get back to focusing on earnings and the economy. Yes, that really seems to be what it is, and you were just hearing from Ed Mills over at Raymond James there. He was saying that the prolonged risk of this conflict, that's not being accurately reflected in stock prices right now. So if we don't see that, then markets are saying, well, there's other things we should be focusing on like you were saying, Josh, earnings, what happens with the Fed, right? We just received that Fed forecast. They're still pricing in two rate cuts later this year, but Jerome Powell even warned that inflation, that should edge higher later this summer as a result of the tariffs. So what do we see on that front? I think that is top of mind for markets right now. Of course, if we do see tensions escalate, if it is becoming more obvious that this is going to be a longer-term problem, that's when I think you could see the decline on the price of stocks, but for now they're largely looking this, as looking at this as a short-term issue right now. All right. Thank you, Ally. 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
12 hours ago
- Business
- Yahoo
Traders Resist Defensive Stocks' Haven Status Amid Mideast Risk
(Bloomberg) -- US equities investors are reluctant to seek safety amid flaring geopolitical tensions, raising the risk of getting caught off guard if the conflict between Israel and Iran takes an unexpected turn in the days ahead. Security Concerns Hit Some of the World's 'Most Livable Cities' One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown Normally, this level of anxiety would be enough to send money managers scurrying into stocks offering shelter, especially with President Donald Trump weighing whether to offer Israel military backing in its conflict with Iran. That step could roil crude prices and stoke worries about inflation, and potentially reignite a rush for investment havens. Yet, the events since last week have only triggered a modest shift into so-called defensive sectors such as utilities, consumer staples and health care. That's even as US stocks whipsaw their way higher, with the S&P 500 Index is just 2.7% away from a new all-time high. For Matt Maley at Miller Tabak + Co., it's an ominous setup that leaves investors vulnerable given the fluid situation. 'The war may or may not get worse, but given that any upside potential for stocks is limited due to extended valuations, investors should be taking more precautions,' said the firm's chief market strategist. Underscoring how safer stocks have been on the sidelines lately, defensive sectors' influence on the benchmark — measured by the combined weight of the groups in the gauge — is currently at a 35-year low, Strategas' Todd Sohn found. What's more, a Goldman Sachs Group Inc. pair-trade basket that represents going long cyclicals and short defensives has seen a modest uptick since Israel launched airstrikes against Iran's nuclear program and military targets last week. If traders were rushing to safety due to concerns over the economy the basket would decline, like it did in early April, when investors feared the impact of tariffs on growth. Trump will decide within two weeks whether to strike Iran, his spokeswoman said on Thursday. Reluctance Explained Some say there's good reason for investors to be reluctant to jump into defensives in the face of geopolitical unrest. First, data from UBS shows the impact of such events on equity markets tend to be short-lived. In the past 11 major geopolitical events, the S&P 500 on average fell just 0.3% one week after the event, while 12 months later it rose 7.7%. According to Christopher Murphy, co-head of derivatives strategy at Susquehanna, positioning among hedge funds remained light. In other words, many institutional investors did not aggressively chase the recent rally higher, limiting their need for a forced pivot on geopolitical shocks. Even on the day of strikes, investors showed little fear of a volatility breakout, and were adjusting their exposure and not exiting markets, the strategist said. 'Investors are still hedging with precision, but the dominant behavior remains risk-adjusted engagement — not panic,' he said. Putting Up Guardrails That may be the case but there's one outlier trade. Investors are piling into energy stocks, which tend to behave defensively in times when crude oil supply is at risk. Any escalating Iran-Israel conflict could push oil prices even higher. Meanwhile, some market pros are starting to advise investors to make a bigger defensive move. The Wells Fargo Investment Institute recommended boosting exposure to such stocks amid the uncertainty surrounding tariffs that will extend through the rest of the year. The utility sector stands out to Wells Fargo strategists. The group, which can act as a hedge against market volatility and economic risks, is relatively shielded from tariffs given the businesses are primarily domestic, they wrote in a note. Utilities are also set to benefit from the infrastructure buildout in artificial intelligence. Moreover, valuations are relatively favorable, they added. The S&P 500 Utilities Index is trading at a forward price-to-earnings multiple of 17 times, compared to the S&P 500's 22 times. Dennis DeBusschere at 22V Research said he won't be buying any surge in defensives, given the firm's view that Israel will not strike Iran's oil exporting facilities, thereby limiting the impact on interest rates and inflation expectations. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P.
Bloomberg
13 hours ago
- Business
- Bloomberg
Traders Resist Defensive Stocks' Haven Status Amid Mideast Risk
US equities investors are reluctant to seek safety amid flaring geopolitical tensions, raising the risk of getting caught off guard if the conflict between Israel and Iran takes an unexpected turn in the days ahead. Normally, this level of anxiety would be enough to send money managers scurrying into stocks offering shelter, especially with President Donald Trump weighing whether to offer Israel military backing in its conflict with Iran. That step could roil crude prices and stoke worries about inflation, and potentially reignite a rush for investment havens.
Yahoo
16 hours ago
- Business
- Yahoo
Middle East's Undiscovered Gems Featuring Three Promising Small Caps
As geopolitical tensions between Israel and Iran escalate, most Gulf markets have seen a downturn, with key indices such as Saudi Arabia's benchmark experiencing declines. Despite this cautious market sentiment, small-cap stocks in the Middle East can offer unique opportunities for investors willing to explore beyond the usual blue-chip options. Identifying promising small caps often involves looking for companies with strong fundamentals and growth potential that can weather regional instability. Name Debt To Equity Revenue Growth Earnings Growth Health Rating MOBI Industry 6.50% 5.60% 24.00% ★★★★★★ Alf Meem Yaa for Medical Supplies and Equipment NA 17.03% 18.37% ★★★★★★ Baazeem Trading 8.48% -2.02% -2.70% ★★★★★★ Sure Global Tech NA 11.95% 18.65% ★★★★★★ Saudi Azm for Communication and Information Technology 2.07% 16.18% 21.11% ★★★★★★ Nofoth Food Products NA 15.75% 27.63% ★★★★★★ National General Insurance (P.J.S.C.) NA 14.55% 29.05% ★★★★★☆ National Corporation for Tourism and Hotels 19.25% 0.67% 4.89% ★★★★☆☆ Waja 23.81% 98.44% 14.54% ★★★★☆☆ Saudi Chemical Holding 79.49% 16.57% 44.01% ★★★★☆☆ Click here to see the full list of 217 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener. We're going to check out a few of the best picks from our screener tool. Simply Wall St Value Rating: ★★★★★★ Overview: Anadolu Anonim Türk Sigorta Sirketi operates in Turkey providing a range of non-life insurance products, with a market capitalization of TRY42 billion. Operations: Anadolu Anonim Türk Sigorta Sirketi generates revenue primarily from its non-life insurance segments, with significant contributions from Motor Vehicles (TRY14.17 billion) and Disease/Health (TRY10.38 billion) insurance products. The company also earns revenue from Motor Vehicles Liability and Fire and Natural Disasters insurance, contributing TRY9.16 billion and TRY5.25 billion respectively to its overall income streams. Anadolu Sigorta, a prominent player in the insurance sector, has demonstrated robust growth with earnings increasing 65% annually over the past five years. Despite this impressive trajectory, recent performance indicates some challenges; net income for Q1 2025 was TRY 1.98 billion, down from TRY 2.87 billion the previous year, and basic earnings per share fell to TRY 3.95 from TRY 5.73. The company remains debt-free and trades at a valuation perceived as undervalued by about 16%. While not outpacing industry growth last year with only a 13.5% rise in earnings compared to the sector's broader gains, Anadolu Sigorta still boasts high-quality past earnings and positive free cash flow trends that suggest resilience amidst market fluctuations. Delve into the full analysis health report here for a deeper understanding of Anadolu Anonim Türk Sigorta Sirketi. Understand Anadolu Anonim Türk Sigorta Sirketi's track record by examining our Past report. Simply Wall St Value Rating: ★★★★★☆ Overview: Nayifat Finance Company specializes in offering personal financing solutions within the Kingdom of Saudi Arabia and has a market capitalization of SAR1.45 billion. Operations: The company generates revenue primarily from personal financing, contributing SAR258.30 million, followed by SME financing at SAR43.05 million, and Islamic credit cards at SAR1.73 million. Nayifat Finance, a notable player in the Middle East's financial sector, has demonstrated resilience with earnings growth of 87% over the past year, significantly outpacing the Consumer Finance industry's 8%. The company reported net income of SAR 23.55 million for Q1 2025, up from SAR 17.18 million a year earlier. Its debt management appears robust as the debt-to-equity ratio improved from 91% to a more manageable 35% over five years. Recently appointed Acting CEO Khalid Abdulaziz AlJenaidel brings extensive experience, potentially steering Nayifat towards strategic advancements amidst its promising valuation at a P/E ratio of just 10x against the market's average of about double that figure. Get an in-depth perspective on Nayifat Finance's performance by reading our health report here. Evaluate Nayifat Finance's historical performance by accessing our past performance report. Simply Wall St Value Rating: ★★★★★☆ Overview: Urbanica (Palo) Retail Ltd is involved in the design, purchase, marketing, and retail sale of clothing for women, men, and children in Israel with a market cap of ₪1.41 billion. Operations: Urbanica generates revenue primarily from fashion clothing, contributing ₪487.01 million, and fashion accessories, adding ₪132.95 million. Urbanica Retail, a small player in the Middle East retail sector, has shown impressive earnings growth of 69% over the past year, outpacing its industry peers. Despite generating less than US$1 million in revenue, this debt-free company boasts high-quality earnings and positive free cash flow. Recently completing an IPO worth ILS 410 million at ILS 10 per share, Urbanica seems poised for expansion. While it remains profitable with no debt concerns, its future trajectory will likely depend on how effectively it leverages the recent capital influx to boost revenue and market presence. Click here and access our complete health analysis report to understand the dynamics of Urbanica (Palo) Retail. Review our historical performance report to gain insights into Urbanica (Palo) Retail's's past performance. Discover the full array of 217 Middle Eastern Undiscovered Gems With Strong Fundamentals right here. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include IBSE:ANSGR SASE:4081 and TASE:URBC. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
16 hours ago
- Business
- Yahoo
Identifying Undiscovered Gems in the Middle East for June 2025
As geopolitical tensions in the Middle East continue to influence market dynamics, many Gulf markets have seen a retreat, with indices such as Dubai's main share index and Abu Dhabi's index experiencing declines. Despite these challenges, the search for undiscovered gems remains crucial, as identifying stocks with strong fundamentals and growth potential can provide valuable opportunities even amidst broader market volatility. Name Debt To Equity Revenue Growth Earnings Growth Health Rating MOBI Industry 6.50% 5.60% 24.00% ★★★★★★ Alf Meem Yaa for Medical Supplies and Equipment NA 17.03% 18.37% ★★★★★★ Baazeem Trading 8.48% -2.02% -2.70% ★★★★★★ Sure Global Tech NA 11.95% 18.65% ★★★★★★ Saudi Azm for Communication and Information Technology 2.07% 16.18% 21.11% ★★★★★★ Nofoth Food Products NA 15.75% 27.63% ★★★★★★ National General Insurance (P.J.S.C.) NA 14.55% 29.05% ★★★★★☆ National Corporation for Tourism and Hotels 19.25% 0.67% 4.89% ★★★★☆☆ Waja 23.81% 98.44% 14.54% ★★★★☆☆ Saudi Chemical Holding 79.49% 16.57% 44.01% ★★★★☆☆ Click here to see the full list of 217 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Value Rating: ★★★★☆☆ Overview: Taaleem Holdings PJSC is a company that provides and invests in education services in the United Arab Emirates, with a market capitalization of AED3.79 billion. Operations: Revenue for Taaleem primarily comes from school operations, amounting to AED1.05 billion. Taaleem Holdings PJSC, a nimble player in the UAE's education sector, has demonstrated robust earnings growth of 16.9% over the past year, outpacing the industry average of 6.7%. With sales for Q2 2025 reaching AED 343.74 million compared to AED 282.54 million previously, revenue and net income figures also showed positive trends at AED 20.1 million and AED 92.02 million respectively for the quarter ended February 28, though net income was slightly lower than last year's same period at AED 92.19 million. The company's debt-to-equity ratio has risen from 19.9% to a more leveraged position of 29.1%, yet its interest obligations are comfortably covered by EBIT at nearly fifty times over—demonstrating financial resilience amidst strategic expansion efforts targeting premium segments despite potential margin pressures from higher costs associated with these initiatives. Taaleem Holdings PJSC plans to add 10,000 seats by 2026 through strategic expansion. Click here to explore the full narrative on Taaleem's growth strategy and market positioning. Simply Wall St Value Rating: ★★★★★★ Overview: Ackerstein Group Ltd is involved in production, infrastructure, construction, and development activities in Israel and the United States, with a market capitalization of ₪2.55 billion. Operations: Ackerstein Group's revenue primarily comes from its Engineering Segment, generating ₪560.42 million, followed by the Industry Sector at ₪289.34 million and the Real Estate Sector at ₪47.92 million. The Industry Sector Abroad contributes an additional ₪57.57 million to the total revenue stream. Ackerstein Group, a notable player in the Middle East's basic materials sector, showcases impressive financial health with earnings growth of 48.8% over the past year, outpacing the industry average of -6.7%. The company's interest payments are well-covered by EBIT at 50.8 times, indicating strong operational efficiency. A significant one-off gain of ₪62.3 million impacted its recent financial results, highlighting some volatility in earnings quality. Over five years, Ackerstein has reduced its debt to equity ratio from 43.3% to a satisfactory 12%, reflecting prudent debt management strategies amidst a highly volatile share price environment recently observed over three months. Take a closer look at Ackerstein Group's potential here in our health report. Gain insights into Ackerstein Group's historical performance by reviewing our past performance report. Simply Wall St Value Rating: ★★★★★☆ Overview: Y.D. More Investments Ltd is a privately owned investment manager with a market capitalization of ₪1.77 billion, focusing on various financial management services. Operations: The company's primary revenue streams include management of provident and pension funds, generating ₪540.82 million, and mutual fund management with revenues of ₪231.26 million. Investment portfolio management contributes an additional ₪34.40 million in revenue. Y.D. More Investments, a nimble player in the Middle East market, has shown robust growth with earnings up 38.9% over the past year, outpacing the industry average of 28.5%. The company's net income for Q1 2025 surged to ILS 31.62 million from ILS 17.11 million a year prior, while revenue climbed to ILS 230.15 million compared to last year's ILS 188.26 million. Despite a volatile share price recently, Y.D.'s debt-to-equity ratio rose from just 0.3% to an elevated level of 62.7% over five years, indicating increased leverage but also potential for strategic expansion and investment opportunities in its sector. Click here and access our complete health analysis report to understand the dynamics of Y.D. More Investments. Understand Y.D. More Investments' track record by examining our Past report. Delve into our full catalog of 217 Middle Eastern Undiscovered Gems With Strong Fundamentals here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include DFM:TAALEEM TASE:ACKR and TASE:MRIN. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
