| | | GE Aerospace just exceeded forecasts, Elevance Health's 5% surge is lifting healthcare stocks, and an ESG-focused blockchain stock is surging more than 100% today. Let's dive into details… | |
|
| | | | | What to Watch | Earnings: | GE Aerospace [GE]: Premarket Union Pacific [UNP]: Premarket Elevance Health [ELV]: Premarket Freeport-McMoran [FCX]: Premarket Intuitive Surgical [ISRG]: Aftermarket Texas Instruments Incorporated [TXN]: Aftermarket | Economic Reports: | Initial Jobless Claims (Jan): 8:30 a.m. |
|
| | Aerospace | GE Aerospace Outperforms with Strong Q4 Results | | GE Aerospace’s financial forecasts announced this morning for the last quarter of the year are far beyond what Wall Street anticipated. The firm’s adjusted earnings of $1.32 per share are much higher than the consensus estimate of $1.04 per share. | The company’s sales have touched $9.9 billion in the quarter. Amidst industry-wide supply chain difficulties, GE Aerospace has managed to leverage a robust maintenance backlog to its advantage. | This morning, GE Aerospace's shares are up 3% in premarket trading. Overall, the firm has seen a 64% rise in the previous year. The company has also decided to repurchase $7 billion worth of its stock in 2025 and boost its dividend by 30%. | Looking forward, GE Aerospace projects adjusted earnings per share to be between $5.10 and $5.45 for the current year, slightly undercutting the average analyst prediction of $5.35. Free cash flow is expected to reach up to $6.8 billion, exceeding expectations. | GE Aerospace has significantly reduced its debt from over $100 billion in 2018 to about $20 billion now, potentially setting the stage for a ratings upgrade. The company has also been dealing with supplier issues, which have inadvertently extended the service life of its engines, enhancing its maintenance revenue. Additionally, GE Aerospace is poised to benefit from an increase in aircraft deliveries this year. |
|
| | Healthcare | Elevance Health Surges After Impressive Quarterly Results and 2025 Forecast | | Elevance Health is reporting a higher-than-expected 6% revenue increase, reaching $44.989 billion for the last quarter. The firm’s stock is up 5% in premarket trading, significantly influencing the sector; competitors like Centene, UnitedHealth Group, Molina Healthcare, Humana, and Cigna have also seen their shares rise. | The health insurance market has been navigating challenges from the Medicaid "unwinding" process, which led to a decrease in Elevance's medical membership by 2 million. Additionally, the company's benefit-expense ratio increased to 92.4%, slightly under consensus, due to higher Medicaid medical costs. | Looking ahead, Elevance Health projects an adjusted EPS for 2025 between $34.15 and $34.85, with revenue growth expected in the high single to low double digits. However, net investment income declined slightly in the last quarter. | Despite these challenges, the company's solid performance and optimistic outlook have alleviated some of the pressures from recent market downturns, where Elevance's stock had fallen 17% over the last year. |
|
| | | | Airlines | American Airlines Projects Weak Q1 Guidance, Shares Dip | | American Airlines shares are dropping by more than 9% this morning as the company’s first-quarter earnings forecast for 2025 is well short of expectations. | The airline anticipates an adjusted loss per share ranging from 20 to 40 cents, much higher than the 4-cent loss per share analysts’ predicted. This disappointing outlook contributed to more than a 6% decline in the stock price. | In terms of operational costs, American Airlines expects unit costs, excluding fuel, to increase slightly compared to the first quarter of 2024 due to a planned reduction in capacity by up to 2%. | However, the airline's performance in the last quarter of 2024 was stronger than anticipated, with earnings per share reaching 86 cents adjusted, surpassing the expected 64 cents. | Revenue for the quarter hit $13.66 billion, exceeding the forecast of $13.40 billion. This led to a significant year-over-year profit increase, with earnings jumping from $19 million to $590 million. Both domestic and international revenues grew, buoyed particularly by strong demand for trans-Pacific flights. |
|
| | Movers and Shakers | | Decent Holding Inc. [DXST] - Last Close: $4.06 | Decent Holding Inc. (DXST) is a China-based company specializing in wastewater treatment, river restoration, and microbial products for water quality enhancement. | The stock debuted on the Nasdaq yesterday at $4.06 and is already up 65% in premarket trade this morning due to investor interest. | My Take: The firm saw a 19% increase in profit margin last year with good revenue growth. However, this is an IPO stock so there could be a lot of volatility in its price. Keep DXST on your radar and see how it performs during the day. |
|
|
|
| Diginex Limited [DGNX] - Last Close: $7.50 | Diginex Limited (DGNX) leverages blockchain, machine learning, and data analysis to offer solutions for ESG (Environmental, Social, and Governance), climate, and sustainability challenges. It debuted on the Nasdaq yesterday. | Diginex is recovering in premarket trade today after a 7% fall on its debut day. The stock is already up by more than 100%. | My Take: This is the second IPO stock among the big movers today. It would be best to keep your eye on how the stock performs during the day before investing. |
|
|
|
| Vince Holding Corp. [VNCE] - Last Close: $2.35 | Vince Holding is in the luxury apparel and high fashion space. The firm’s net margins in the last financial year and the first three quarters of this year have been positive, though the stock has declined 26% in the last year. | VNCE shares are rising in premarket trading today following the announcement that P180 has acquired a 65% stake in the company from Sun Capital Partners. | My Take: The acquistion could be a major boost for VNCE. Make sure to keep this stock on your radar and keep tabs on how the merger progresses. |
|
|
|
| | | | Everything Else | Unicredit's aggressive strategy for Commerzbank draws fire from German FM. Apple and Google face UK scrutiny over mobile ecosystems following the CMA chair's exit. Sainsbury's announced the closure of cafes and job cuts in its £1 billion savings plan. SK Hynix sees doubling of AI chip sales and surpasses Samsung in quarterly profits. WhatsApp won a temporary reprieve from India's data-sharing ban but must pay a partial fine. Despite a profit shortfall, Kinder Morgan advances with Trident Pipeline to meet future gas needs. |
|
| | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia Elite Trade Club |
|
| 📧 Like newsletters? Here are some newsletters our readers also enjoy. Explore. | | | Click here to get our daily newsletter straight to your cell for free. | P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP. |
| |
|
|
|