Latest news with #investors
Malay Mail
18 minutes ago
- Business
- Malay Mail
Labubu maker Pop Mart's shares slide after China state media calls for stricter oversight of blind-box craze
HONG KONG, June 20 — Shares in Pop Mart International Group tumbled in Hong Kong trading after a Chinese state media commentary reignited regulatory concerns over the booming blind-box toy sector, triggering a sell-off in the toymaker's stock and related counters. The Beijing-based company, famed for its wildly popular Labubu dolls, saw its shares drop as much as 6.6 per cent yesterday, adding to a 5.3 per cent slide the day before. The losses came after People's Daily, the official newspaper of the Chinese Communist Party, ran a commentary urging tighter regulation of 'blind cards' and 'mystery boxes'. While the article did not name Pop Mart directly, it highlighted concerns that such products could lead to addictive buying behaviour among minors. 'China should further refine regulations for 'blind cards' and 'mystery boxes' as some of the current business models easily induce minors to become addicted to purchasing these products,' the commentary said, citing legal experts. The remarks rattled investor confidence, putting the brakes — at least temporarily — on what has been one of the most dazzling rallies among Chinese consumer stocks this year. Pop Mart shares have still surged nearly 170 per cent in 2025, fuelled by a global pop-culture frenzy over its stylised vinyl figurines. 'The commentary has weighed on investor sentiment, flashing some overheating signs in the business,' said Steven Leung, executive director at UOB Kay Hian Hong Kong, to Bloomberg. 'Still, it's a mild reminder as it didn't come directly from a government official.' Pop Mart, valued at around US$40 billion (RM170.2 billion), sells many of its figurines in opaque packaging, with buyers only discovering which character they've purchased after opening the box. Prices start at about 69 yuan, but limited editions can fetch eye-watering sums. Last week, a human-sized Labubu figure sold at auction in Beijing for 1.08 million yuan, underscoring the dolls' transformation from novelty items to sought-after collectibles. According to Bloomberg, the broader sector also took a hit, with shares of rival Bloks Group down as much as 9.3 per cent. Meanwhile, trading card maker Kayou — which shelved its IPO in 2024 following similar scrutiny — has only recently revived its listing plans. The regulatory overhang is not new. In 2023, China banned the sale of blind boxes to children under eight, citing addiction risks. Such concerns have remained a recurring theme in investor discussions around the sector. Still, analysts told Bloombeg they remain largely bullish. Pop Mart remains the top performer on the MSCI China Index this year, buoyed by growing international appeal. Celebrities such as Rihanna and Blackpink's Lisa have been seen with the toys, lending the brand street cred abroad. Wall Street has responded by raising price targets, pointing to the expanding influence of Pop Mart's intellectual properties. Despite the recent sell-off, some investors remain optimistic that Beijing will tread carefully, mindful of the brand's global success. Policymakers have previously expressed support for homegrown consumer brands making a global splash — a category Pop Mart now firmly belongs to.
Yahoo
an hour ago
- Business
- Yahoo
Is Trending Stock Toll Brothers Inc. (TOL) a Buy Now?
Toll Brothers (TOL) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this home builder have returned +1.4%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Building Products - Home Builders industry, which Toll Brothers falls in, has lost 5.8%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. 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. Toll Brothers is expected to post earnings of $3.59 per share for the current quarter, representing a year-over-year change of -0.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -12%. For the current fiscal year, the consensus earnings estimate of $13.95 points to a change of -7.1% from the prior year. Over the last 30 days, this estimate has changed +2.1%. For the next fiscal year, the consensus earnings estimate of $14.41 indicates a change of +3.3% from what Toll Brothers is expected to report a year ago. Over the past month, the estimate has changed -2.4%. 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 Toll Brothers. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. In the case of Toll Brothers, the consensus sales estimate of $2.85 billion for the current quarter points to a year-over-year change of +4.6%. The $10.93 billion and $11.18 billion estimates for the current and next fiscal years indicate changes of +0.8% and +2.3%, respectively. Toll Brothers reported revenues of $2.74 billion in the last reported quarter, representing a year-over-year change of -3.5%. EPS of $3.5 for the same period compares with $3.38 a year ago. Compared to the Zacks Consensus Estimate of $2.5 billion, the reported revenues represent a surprise of +9.53%. The EPS surprise was +22.38%. Over the last four quarters, Toll Brothers surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times 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. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Toll Brothers is graded A on this front, indicating that it is trading at a discount 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 Toll Brothers. 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 Toll Brothers Inc. (TOL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
an hour ago
- Business
- Yahoo
Down 18%, Is Home Depot Stock a Buy on the Dip?
The housing market is still under pressure, leading to lower interest in home improvement projects. Home Depot's model has a natural hedge because even in these times, people need to do small home improvement projects. The company has diversified its supplier base to boost its leverage. 10 stocks we like better than Home Depot › Is home improvement giant Home Depot (NYSE: HD) stock a buy on the dip? If you're looking for a great value stock, Home Depot stock looks priced to buy today. The market is hovering just north of flat for the year, and there's a tentative confidence in the economy. Many tariff issues have been worked out for now, and U.S. companies are demonstrating resilience. However, it's fragile. With interest rates still high and the real estate market still low, many companies, specifically related to the housing market, are still under pressure. Home Depot has been reporting moderate performance, and it's not expecting that to let up as long as conditions remain the way they are right now. Home Depot stock is 18% off its all-time high, and investors should take a look. Mortgage rates are still high, and the real estate market is still stagnating. According to Redfin data, housing prices rose in May, while house sales tumbled 6% from last year. The national average 30-year fixed mortage rate was 6.8%, slightly lower from last year, but still elevated. This is mostly detrimental to Home Depot's business, because people invest in renovating new homes, whether big projects or small. They try to avoid investing in old homes that they plan to leave. The flip side, though, is that if they remain in their older homes, they have no choice but to fix them up to make them livable or comfortable. That provides a natural hedge against negative market forces. That was borne out in recent results, which demonstrate that customers are shopping for small projects while putting big remodeling jobs on hold. Home Depot is the largest home improvement retail chain in the world, and it has a robust omnichannel network serving individuals and pros. The vast and varied business means that it has many levers to pull to generate engagement and sales. Under any circumstances, Home Depot operates in a great industry because there's always a need for it. Management pointed out that the housing stock is aging, with 55% of U.S. homes at least 40 years old. They're most homeowners' largest asset, and these houses need work. In the 2025 fiscal first quarter (ended May 4), sales were up 9.4%, but comparable sales (comps) were roughly flat year over year. Earnings per share (EPS) declined from $3.63 last year to $3.45 this year, and the results were in line with expectations. For the full year, management is guiding for modest growth in sales and comps and a modest decrease in EPS. CEO Ted Decker noted that the company is well-prepared for whatever happens with tariffs. Half of its goods already come from the U.S., and it has diversified its supply chain over the past few years. It's continuing these efforts, and he expects that no one country will be responsible for more than 10% of its supplies in a year from now. Because of its scale and diversification, it's agile and has pricing power. Home Depot has a $1 trillion opportunity, which is recently expanded by acquiring pro supplier SRS Distribution. It opened 13 stores in Q1, which contributed to its excellent sales growth. Although it already has more than 2,300 stores in the U.S., Canada, and Mexico, it still has expansion opportunities. Home Depot is a top value stock that pays an attractive dividend. The dividend yields 2.6%, and it's increased 290% over the past 10 years. At the current price, it trades at a price-to-earnings (P/E) ratio of 24. That isn't super cheap, but it's around recent averages. This is what the market thinks Home Depot is worth, because it's reliable for strength and passive income, and it's likely to get back into growth mode under better circumstances. If you're looking for a top value stock to buy on the dip, Home Depot is an excellent option. Before you buy stock in Home Depot, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Home Depot wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Redfin. The Motley Fool has a disclosure policy. Down 18%, Is Home Depot Stock a Buy on the Dip? was originally published by The Motley Fool 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
2 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.
Globe and Mail
2 hours ago
- Business
- Globe and Mail
2 Artificial Intelligence (AI) Stocks That Could Soar in the Second Half of 2025
Artificial intelligence (AI) stocks were the market's biggest winners last year as investors flocked to this area of great opportunity. Analysts expect the AI market to reach into the trillions of dollars in the coming years, which suggests some of today's early players in the field could benefit -- and so could investors who buy now and hold. But this investing theme lost its momentum temporarily a couple of months ago. President Donald Trump announced tariffs on imports, and investors worried that such duties would lift prices -- which would weigh on consumers' wallets and companies' budgets. All this represented bad news for the economy and corporate earnings. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » In recent weeks, though, investors have shrugged off their most negative thoughts as initial trade deals and talks between the U.S. and China have led to renewed optimism. On top of this, positive economic data -- from consumer sentiment to inflation figures -- also calmed investors' fears. All of this has helped indexes rally, and this bodes well for growth stocks such as AI companies in the months to come. Let's zoom in on two AI stocks that could soar in the second half of 2025. 1. Nvidia Nvidia (NASDAQ: NVDA) investors have become used to major gains,as this top AI chip designer's shares soared 800% over the past two calendar years. But as of the start of this year, performance weakened amid the concerns I mentioned and the idea that Nvidia customers may rein in spending. Evidence from these customers, though, from Meta Platforms to Alphabet, shows investing in AI remains a priority -- and this is excellent news for Nvidia. Meanwhile, Nvidia's latest quarterly earnings report highlights this ongoing spending in AI, as revenue surged 69% to $44 billion. The company continues to see strong demand for its new Blackwell architecture and chip, especially in the area of inference, or the "thinking" an AI model must do to solve problems. Inferencing could represent a significant growth driver in the next stages of the AI story, so strength here is key. Of course, Nvidia may face increased competition in the years ahead, but I'm confident that the company's leadership now and pledge to innovate annually will keep it a few steps ahead of its rivals. The tech giant has already set out its roadmap for chip releases through 2028, offering us evidence that it's well on the way to reaching its innovation goals. So, it's clear Nvidia is positioned to gain over time -- but why is the stock set to soar now? Today, Nvidia trades for only 33x forward earnings estimates, down from 50x earlier this year, and many investors may see this as a great buying opportunity. From this level, Nvidia has plenty of room to run, and after a tough start to the year, any good news in the second half could prompt it to roar higher. 2. SoundHound AI SoundHound AI (NASDAQ: SOUN) soared more than 800% last year amid market enthusiasm about AI stocks, and as the company reported accelerating revenue growth. But the uncertainties that weighed on AI and growth stocks in general hurt SoundHound's performance this year, dragging it down about 50%. However, SoundHound's growth remains strong, and the company's long-term outlook is bright. SoundHound specializes in voice AI, with a product that stands out thanks to years of research and development. The company translates speech directly to meaning -- skipping the common step of translating speech to text. The SoundHound method results in improvements in speed and quality, and revenue growth shows customers are recognizing this. For most of last year, SoundHound reported double-digit quarterly revenue growth, and in the most recent two quarters, revenue has advanced in the triple digits. In this latest period, SoundHound said revenue surged 151% to a record of more than $29 million. Another good sign is the company has expanded its revenue base from initially the auto market to a broad range of industries -- and today, no customer represents more than 10% of revenue. SoundHound may be in the early days of addressing a $140 billion market, so the company's revenue levels could skyrocket from current figures. Of course, this won't happen overnight, but as companies in various industries integrate AI in their processes to increase efficiency and cut costs, SoundHound could benefit. All this means that now, on the dip, is the perfect time to get in on this growth story, as the shares could take off at any moment. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
