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One strategist, however is looking keenly at European equities, and notes that "Europe isn't a boring market." "You would hope that will translate through to the stock market in terms of company earnings growth in Europe. "While you might see some kind of short-term downturn, in the longer-term the picture is very positive for the sector," Field added. He sees value in payments, which he described as "one of the most undervalued parts of European financial services." The sector has trailed market performance, with valuations looking "interesting" over the last 12 months, Morningstar noted in its recent report.
Persons: Michael Field, Field, Morningstar Organizations: CNBC Pro, European Central Bank, Consumer, Swatch Group, Financial, Morningstar, ING Bank, Group, Health, Novo Nordisk Locations: U.S, Europe, Netherlands, British, Swiss
CNBC Pro asked three fund managers for their stock picks to to buy now and hold for the longer term. The average price target for PepsiCo is $186.77, according to FactSet data, giving it potential upside of 6.7%. According to Factset data, of 30 analysts, 18 give the stock a buy or overweight rating while 12 have a hold rating. According to FactSet data, of 18 analysts, 14 give the stock a buy or overweight rating, three have a hold rating and one has a sell rating. The average price target for PDD is $180.12, according to FactSet data, giving it potential upside of 54.9%.
Persons: David Dietze, PepsiCo Dietze, Dietze, Bud Light, Michael Field, Edenred, Jason Hsu, Hsu, OpenAI, Elon Musk, Sam Altman, Greg Brockman, Altman Organizations: Wealth Management, CNBC Pro, PepsiCo, Coca Cola, Anheuser, Busch, Brussels Stock Exchange, New York Stock Exchange, Euronext Paris Stock Exchange, Microsoft, Rayliant Global Advisors, OpenAI, Nasdaq Locations: Belgian, U.S, South America, Europe, Edenred, China
Headline inflation in the euro zone jumped to 2.9% in December, up from 2.4% the previous month, though core inflation continued to ease, according to data released Friday by Eurostat. Core inflation — which doesn't include energy, food, alcohol and tobacco prices — cooled to 3.4% last month from 3.6% in November. An overall rise was expected due to base effects from the energy market, as price falls moderate. Energy prices were down 6.7% year on year in December, versus a 11.5% drop in November. The headline inflation rise "is essentially a technicality," Michael Field, European market strategist at Morningstar, said in a note.
Persons: Michael Field Organizations: Eurostat, Energy, European, Morningstar
The US economy is surging, with growth coming in at a hotter-than-expected 4.9% for the third quarter. But problems elsewhere could still be bad news for big US companies, including Apple and Tesla. China's slowing economy and the war between Israel and Hamas are both potential headwinds, according to analysts. AdvertisementAdvertisementThe China challengeThat's bad news for mega-cap US firms such as Apple and Tesla, which count the Asian nation as a major market. On balance, risks to global growth continue to be skewed to the downside," the International Monetary Fund said in its Global Financial Stability report published last month.
Persons: , Ukraine — that's, headwinds, Goldman Sachs, GfK, Michael Field, it's, Tom Donilon, Susan Li, Li Organizations: Apple, Service, Nvidia, Intel, Nike, China —, Morningstar Research, stoke, of America, DuPont, Procter, Gamble, International Monetary Fund Locations: Israel, China, Ukraine, Beijing, BlackRock, Iran
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSome opportunities are opening up in the luxury space, equity strategist saysMichael Field, European equity strategist at Morningstar, discusses the outlook for consumer goods and travel.
Persons: Michael Field Organizations: Morningstar
Chegg's stock price crashed last week after the education company's CEO said ChatGPT was impacting customer growth. But investors shouldn't write off entire sectors just yet, according to analysts. Chegg shares plunged 49% on May 2 following Rosensweig's warning – and other major education stocks sold off as well. Don't write off the whole sector just yetIt can be tempting for investors to see disruptive technology like ChatGPT as a threat to entire industries – hence the broad and deep sell-off for education stocks Tuesday. Read more: Chegg crashes 49% after the education company says the rise of ChatGPT among students is impacting customer growth
LONDON, March 15 (Reuters) - Finance minister Jeremy Hunt presented less gloomy forecasts for Britain's economy at his Spring Budget on Wednesday. Reuters Graphics Reuters GraphicsROSIER OUTLOOKA rout in global banking stocks on Wednesday overshadowed many UK-specific moves. Investments announced by Hunt such as a corporate spending tax break, a boost for defence and extra childcare support were not viewed as particularly inflationary. Unlike in the last budget, noise around windfall taxes on oil and gas companies was muted in the run-up to the budget since energy prices have fallen dramatically since then. "In general, the budget is not the big story for gilts right now, global drivers are in the driving seat," said James Smith, economist at ING.
Meanwhile, extremely wide forecasts for new public borrowing requirements make the outlook for government bonds uncertain. Here are the main budget predictions for UK stocks, gilts and the pound. However NatWest analysts flagged that the OBR will likely revise down growth forecasts for the next five years, making the outlook for interest rates finely balanced. Hunt will likely keep the budget "reasonably dull" after Truss's "mini-budget" sent sterling to its lowest on record, she added. Investors in UK stocks are already grappling with a wide valuation gap with U.S. equities.
If they start to reverse, then you'll see things reversing for next year, but we have to wait and see," he said. Slashing prices also reflects stiffening competition in some markets as companies struggle with waning consumer demand and households tighten budgets. Kraftliner prices, up 60 euros per tonne in the first half, have since fallen by 120 euros a tonne. Europe's gas rollercoasterWAGES AND BORROWING COSTSSome companies won't make cuts though, as they protect margins or face higher wages and borrowing costs. "It does signal a retreat in operating margins for firms like Smurfit, hence the negative reaction in the share price this morning," he said.
[1/2] The logo of French food services and facilities management group Sodexo is seen at the company headquarters in Issy-les-Moulineaux near Paris, France, March 18, 2016. The company delivered a 5% margin in its last fiscal year and last week forecast an increase to 5.5% for 2022-2023. B&R will target capital spending close to 10% of revenue per year between 2022 and 2025, Sodexo said. Sodexo, whose businesses also include workplace design, sterilization of medical devices, reception and cleaning services, said it would step up its focus on food services as rising inflation leads more companies to outsource catering. However, Sodexo forecast organic sales growth of between 6% and 8% for fiscal 2024-2025, lower than its forecast of 8% to 10% for 2022-2023.
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