I am upgrading Norwegian Cruise Line stock from a sell to a hold due to recent earnings beat and positive changes in quarterly fundamentals. Despite high debt and potential share dilution, NCLH shows strong revenue growth and high returns on equity, indicating potential near-term stock price appreciation. Key risks include inconsistent free cash flow, economic uncertainties, and potential inflationary pressures that may affect discretionary spending.
GOOGL, LDOS and RF are some of the stocks with high ROE to profit from as markets hit record-high tallies on Trump's victory.
Shinhan's Q3 2024 net profit fell short of expectations, primarily due to a significant decrease in non-interest income resulting from derivative trading losses. On the other hand, there is the potential for SHG to trade at a more demanding P/B multiple in the long run, if its 2027 ROE goal of 10% is met. My rating for Shinhan Financial is downgraded to a Hold. I have taken into account SHG's Q3 results and its ROE target in making this decision.
Svenska Handelsbanken is undervalued with a P/B below 1x, despite a strong ROE of 15% and conservative loan underwriting practices. A weak Swedish housing market is only having an impact perhaps on loan growth, but not on the bank's safety. They are restructuring and managing costs well, helping operating profit growth and ROE improvements.
SYY, CF, SNA, ROST and RF are some of the stocks with high ROE to profit from as markets face intense volatility.
CEG is a good stock to have in your portfolio, given its rising earnings estimates and higher returns.
I maintain my Buy rating for Tokio Marine, as the company continues to make the necessary moves to enhance its future ROE. Tokio Marine's subsidiary has recently sold shares in Toyota Motor, which is part of the company's plans to decrease cross-shareholdings. The company has already completed over half or 61% of its JPY 100 billion buyback plan by end-September this year.
LMT, CF, ACGL, PHM and BCH are some of the stocks with high ROE to profit from as traders brace for more crude oil volatility slugfest.
NEE continues to benefit from improving economic conditions, decline in interest rates and rising demand from its customers in Florida.
The Astoria US Equal Weight Quality Kings ETF has a 0.49% expense ratio and $140 million in equal-weighted assets across major sectors. ROE's 23% turnover and equal-weight strategy eliminate market cap bias but fail to generate alpha over broader cap-weighted indices, as represented by SPY or QQQ. Pairing ROE with the Roundhill Daily Inverse Magnificent Seven ETF (MAGQ) can offset Mag 7's impact, but requires precise timing and carries significant risks.