Big Tech earnings, including Alphabet and Microsoft, are in focus as the US economy's resilience surprises despite the likelihood of a recession. ClearBridge Investments recommends defensive stocks like pharmaceutical and beverage companies [8eb9ccfb]. Oil prices ease due to efforts to contain the Israel-Hamas war, creating an opportunity for energy companies like Petroleo Brasileiro (PBR) to refill the Strategic Petroleum Reserve at reasonable prices [0b1f66c3]. Despite falling crude prices, PBR is considered a compelling investment opportunity due to its low valuation and bullish catalysts. Analysts have raised their earnings estimates for PBR, and the company operates in various segments of the energy industry. With its depressed valuation, top Zacks Rank, and bullish technical chart pattern, PBR offers a convincing risk-reward setup [0b1f66c3]. Investing in oil stocks during a recession may seem counterintuitive, but there are reasons to consider it. Despite reduced mobility during an economic downturn, certain oil stocks may benefit from increased individual driving and the need for transportation. Chevron Corporation (CVX) offers relevance across the entire value chain of the energy industry. Kinder Morgan (KMI) operates pipelines and terminals, making it essential for moving energy commodities. Phillips 66 (PSX) focuses on retail and marketing, which could see a boost as people seek new job opportunities and engage in domestic travel. These oil stocks may provide opportunities for contrarian investors [5b72aa3b].
In other news, KBR, in collaboration with Bering Straits Information Technologies (BSIT), has been selected by the U.S. Air Force for the Human Performance Optimization (HPO) contract. The contract, which is expected to span ten years until March 2034, will see KBR providing resiliency and well-being services to military personnel both within and outside the country. This contract adds to KBR's extensive experience in the health and human performance market, having worked with NASA and the Department of Defense for over 50 years. KBR's backlog as of December 29, 2023, was $21.73 billion. Additionally, KBR recently secured the management contract for the Lobito Refinery Project by Sonangol. KBR's stock has seen a 12.1% increase in the past three months, and earnings estimates for 2024 are projected at $3.20 per share. Other well-ranked stocks in the industry include NVR, Vulcan Materials Company, and Sterling Infrastructure [ec7ed9a7].
BTIG has reduced its price target for Braze Inc (NASDAQ: BRZE) shares from $75 to $68 while maintaining a Buy rating. The company's fourth-quarter results exceeded revenue expectations by $6 million, with customers with an annual recurring revenue (ARR) exceeding $500,000 rising by 29% year-over-year. Braze's largest customers demonstrated nearly 40% ARR growth and achieved a 120% net retention rate. Management plans to resume hiring for go-to-market roles, indicating an optimistic outlook for demand. BTIG's research supports the view that Braze is becoming an integral component for businesses seeking to enhance sales and marketing budgets. Braze's revenue growth remains robust, with a 32.74% increase in the last twelve months. The stock is currently in oversold territory according to the Relative Strength Index (RSI) [1782083f].
Battery Ventures, a venture capital firm, is introducing a new framework called the "revenue-quality podium" to assess revenue quality in its industrial tech and life science tools practice. The framework categorizes companies based on the percentage of their revenue derived from recurring sources. To earn a gold medal, a company must derive 66% or more of its revenue from recurring sources, while a silver medal is awarded to companies with between 33-66% of revenue from recurring sources. Companies generating less than 33% of their revenue predictably over time receive a bronze medal. Battery Ventures highlights Danaher as the gold medalist with 78.2% of its revenue deemed recurring, while Sandvik is the bronze medalist with 4.2% recurring revenue. The framework is specific to non-software businesses in the industrial tech and life science tools sector [d7f66410].
Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) has been upgraded by analysts at StockNews.com from a "hold" rating to a "buy" rating. The company's stock traded down $0.04 during midday trading on Wednesday, hitting $6.48. It has a 52-week low of $6.41 and a 52-week high of $9.11. Centrais Elétricas Brasileiras S.A. - Eletrobrás last issued its earnings results on Thursday, May 9th, reporting $0.03 EPS for the quarter and $1.76 billion in revenue. Several hedge funds and institutional investors have recently bought and sold shares of EBR. The company generates electricity through hydroelectric, thermoelectric, nuclear, wind, and solar plants [9f89e1d4].
Sabadell, a Spanish bank, has redeemed €3.2 million in bonds early as part of its debt management strategy. This move is aimed at strengthening the bank's balance sheet and improving its financial flexibility [46e0a866].
Meanwhile, Elecnor, a Spanish infrastructure, energy, and telecommunications company, has reported a significant increase in profits for the first half of 2024. The company's profits rose from €47.4 million to €848.4 million, driven by successful project completions and new contracts. This strong performance has attracted new investors to Elecnor [46e0a866].
In the market analysis, Berenberg has adjusted the target price for Repsol, a Spanish energy company, down to €15.50. This adjustment reflects a cautious outlook for Repsol's performance in the evolving market conditions [46e0a866]. Barclays has also trimmed the target price for Sacyr, a Spanish construction company, to €4.1. This adjustment indicates a cautious but strategic approach to Sacyr's outlook in the current economic conditions [46e0a866].
Overall, Sabadell and Elecnor are actively managing their strengths and opportunities to strengthen their positions in the financial landscape. The revised target prices for Repsol and Sacyr reflect cautious but strategic adjustments in response to evolving market conditions [46e0a866].