Hamilton Beach Brands (NYSE:HBB) Azioni

Hamilton Beach Brands

Hamilton Beach Brands Holding Co, through its subsidiaries, is engaged in consumer, commercial, and specialty small appliances and specialty retail. It designs, markets, and distributes small branded electric household and specialty housewares small appliances, as well as commercial products for restaurants, bars, and hotels. It has two operating segments Home and Commercial Products and Health.

<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2025/07/2025-07-25_08h53_19.png" alt="" /></figure>
To gain an edge, this is what you need to know today.
<h4 class="wp-block-heading">Necessary Antidote</h4>
Please <a href="https://thearorareport.com/stock-market-chart-analysis-gold-miner-government-borrowing-nem-mc-07252025">click here</a> for an enlarged chart of gold miner Newmont Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>).
Note the following:
<ul class="wp-block-list">
<li>This article is about the big picture, not an individual stock.&nbsp; The chart of NEM is being used to illustrate the point.</li>
<li>The chart shows the rise in NEM so far this year.&nbsp;</li>
<li>The chart shows the upward trendline in NEM stock.</li>
<li>The chart shows the gap up on earnings.</li>
<li>The chart shows negative divergence in RSI.  This indicates internal momentum is slowing as the stock price rises.  In our analysis, this is a negative and indicates the probability of a pullback is high.  As full disclosure, NEM is in our Portfolio.  </li>
<li>It is no secret that reckless government borrowing and spending continues.&nbsp; Prudent investors wanting to protect their wealth for the long term need antidotes to reckless government borrowing and spending.&nbsp;</li>
<li>Durable goods came warmer than expected.&nbsp; Here are the details: 
<ul class="wp-block-list">
<li>Durable goods came at -9.3% vs. -11% consensus.</li>
<li>Durable goods ex-transportation came at 0.2% vs. -0.2% consensus.</li>
</ul>
</li>
<li>President Trump&#8217;s visit to the Fed yesterday was dramatic.&nbsp; It is yet to be seen if the visit will result in a rate cut when FOMC meets next week.</li>
<li>S&amp;P 500 has just traced the longest series of records since December 2024.&nbsp; As is historically the case, investors suffer from recency bias.&nbsp; After the streak just experienced, almost everyone expects the stock market to go higher.&nbsp; Think of a boat where everyone is on the same side.&nbsp; Nothing bad happens until a storm hits, then the boat can capsize.&nbsp;</li>
</ul>
<h4 class="wp-block-heading">Magnificent Seven Money Flows</h4>
In the early trade, money flows are positive in Apple Inc (AAPL), Amazon.com, Inc. (AMZN), Alphabet Inc Class C (GOOG), Meta Platforms Inc (META), Microsoft Corp (MSFT), and Tesla Inc (TSLA).
In the early trade, money flows are negative in NVIDIA Corp (NVDA).
In the early trade, money flows are neutral in SPDR S&amp;P 500 ETF Trust (SPY) and Invesco QQQ Trust Series 1 (QQQ).
<h4 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h4>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (GLD).  The most popular ETF for silver is iShares Silver Trust (SLV).  The most popular ETF for oil is United States Oil ETF (USO).
<h4 class="wp-block-heading">Bitcoin</h4>
Bitcoin is seeing selling and has fallen below the first support level.
<h4 class="wp-block-heading">Our Protection Band And What To Do Now</h4>
It is important for investors to look ahead and not in the rearview mirror.  Our proprietary Protection Band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h4 class="wp-block-heading">Traditional 60/40 Portfolio</h4>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.
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Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

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Market Summary

Broad U.S. Equity ETFs

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Markets

Trading Ideas

Gold Miner Newmont Shines Amid Rising Government Borrowing And Spending

News

General

During Conference Call, Phillips 66 Reportedly Says To Operate Refineries In Low To Mid 90% Range Of Combined Capacity In Q3 2025; Refining Turnaround Expense In Q3 Will Be Around $50M-$60M

WIIM

CMCSA

Comcast shares are trading lower in sympathy with Charter, which missed Q2 earnings estimates.

Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) is demonstrating a clear acceleration in its operational and financial performance, fueled by significant productivity gains and a strong earnings beat in its latest quarter. 
This resurgence, coupled with strategic advancements and a dividend increase, signals a strong trajectory for the rail giant amid evolving market dynamics.
Bank of America Securities (BofA) analyst Ken Hoexter reiterated a Buy rating on Union Pacific Corp. and raised the <a href="https://www.benzinga.com/quote/UNP/analyst-ratings" target="_blank" rel="noreferrer noopener">price forecast</a> to $271 from $262, citing growing confidence in the company&#8217;s operational and financial trajectory under CEO Jim Vena.
Also Read: <a href="https://www.benzinga.com/trading-ideas/rumors/25/07/46557532/is-warren-buffetts-347-billion-cash-buying-railroads-heres-what-the-oracle-of-omaha-said" target="_blank" rel="noreferrer noopener">Is Warren Buffett&#8217;s $347 Billion Cash Buying Railroads? Here&#8217;s What The Oracle Of Omaha Said</a>
Hoexter now applies a 20.5x multiple to 2026 EPS, above Union Pacific&#8217;s historical 14x–20x range, to reflect meaningful improvements in service, cost discipline, and the cultural transformation already underway.
He expects a strong earnings recovery in 2025, with EPS projected to rise from $11.06 in 2024 to $11.80 in 2025 and $13.20 in 2026. This outlook aligns with management&#8217;s long-term target of high-single to low-double-digit compound annual growth.
The second-quarter <a href="https://www.benzinga.com/markets/earnings/25/07/46609130/union-pacific-sticks-to-annual-outlook-confirms-merger-talks-with-norfolk-southern" target="_blank" rel="noreferrer noopener">earnings beat</a>, $3.03 adjusted EPS versus $2.92 consensus, and an industry-best adjusted operating ratio of 58.1% further strengthen his conviction in the turnaround story.
While acknowledging potential dilution risks from merger talks with Norfolk Southern (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NSC#NYSE">NSC</a>), Hoexter sees the <a target="_blank" href="https://www.benzinga.com/pressreleases/25/07/b46600288/union-pacific-and-norfolk-southern-discussing-possible-merger/" rel="noreferrer noopener">proposed</a> combination as strategically aligned with the Trump administration&#8217;s push to modernize U.S. infrastructure and create a more competitive transcontinental rail network.
He also expects Union Pacific to maintain healthy leverage between 2.7x and 3.0x, continue scaling its share repurchase program, and reaccelerate top-line growth.
Union Pacific outperformed in the second quarter, posting $6.15 billion in revenue, up 2% year over year, driven by 4% volume growth, strong core pricing, and record productivity.
Adjusted operating income rose 5% to $2.53 billion, while key efficiency metrics showed notable gains: freight car velocity improved 10%, locomotive productivity increased 5%, and workforce productivity jumped 9%.
The board approved a 3% <a target="_blank" href="https://www.benzinga.com/pressreleases/25/07/b46454775/union-pacific-corporation-announces-3-dividend-increase-for-third-quarter-2025" rel="noreferrer noopener">increase</a> in the quarterly dividend to $1.38 per share, payable Sept. 30. Management reaffirmed its full-year guidance, with earnings tracking toward the high end of its long-term growth outlook.
Beyond BofA, other analysts have also adjusted their positions on Union Pacific. Wells Fargo analyst Christian Wetherbee maintained an Overweight rating and raised his price target from $250 to $260. Conversely, Evercore ISI&#8217;s Jonathan Chappell maintained an In-Line rating but slightly trimmed his price target from $244 to $238. Notably, Jefferies analyst Stephanie Moore upgraded the stock from Hold to Buy, significantly lifting her price target from $250 to $285.
Price Action: UNP shares are trading higher by 2.27% at $224.64 at the last check on Friday.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/earnings/25/07/46633504/phillips-66-charts-confident-path-toward-2027-targets-with-q2-momentum" target="_blank" rel="noreferrer noopener">Phillips 66 Charts Confident Path Toward 2027 Targets With Q2 Momentum</a></li>
</ul>
Photo via Shutterstock

Analyst Color

Price Target

Reiteration

Analyst Ratings

Movers

Union Pacific's Turnaround Gains Momentum With Stellar Q2 Operations

<a href="https://x.com/vonderleyen/status/1948777966139289658?s=46&amp;t=dtUiyC3dUs5yGRgT9qYHWg">https://x.com/vonderleyen/status/1948777966139289658?s=46&amp;t=dtUiyC3dUs5yGRgT9qYHWg</a>

Macro Notification

Politics

European Commission President Ursula von der Leyen Posts On X "Following a good call with @POTUS, we have agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong."

Fair Isaac (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FICO#NYSE">FICO</a>) has outperformed the market over the past 5 years by 15.3% on an annualized basis producing an average annual return of 29.94%. Currently, Fair Isaac has a market capitalization of $37.38 billion. 
Buying $1000 In FICO: If an investor had bought $1000 of FICO stock 5 years ago, it would be worth $3,622.91 today based on a price of $1535.80 for FICO at the time of writing.
<h3>Fair Isaac's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1753460115_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

FICO

$1000 Invested In This Stock 5 Years Ago Would Be Worth This Much Today

In June, the U.S. Food and Drug Administration (FDA) approved&nbsp;Gilead Sciences, Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GILD#NASDAQ">GILD</a>) Yeztugo&nbsp;(lenacapavir) as pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV in adults and adolescents weighing at least 35kg, making it the first and only twice-yearly option available in the U.S. for people&nbsp;<a target="_blank" href="https://www.benzinga.com/news/fda/25/06/46023093/fda-approves-gileads-game-changing-twice-yearly-shot-to-prevent-hiv-transmission-critics-slam-28k-price-tag" rel="noreferrer noopener">who need or want PrEP</a>.
Data show that ≥99.9% of participants who received Yeztugo in the Phase 3 PURPOSE 1 and PURPOSE 2 trials remained HIV negative.
The first PrEP medication, which was also developed by Gilead, was approved in the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/b46004872/yeztugo-lenacapavir-is-now-the-first-and-only-fda-approved-hiv-prevention-option-offering-6-months" rel="noreferrer noopener">U.S. in 2012</a>.
On Friday, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) adopted a positive opinion under accelerated review recommending lenacapavir—the company's injectable HIV-1 capsid inhibitor—for use as pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV-1 in adults and adolescents with <a target="_blank" href="https://www.benzinga.com/general/health-care" rel="noreferrer noopener">increased HIV-1 acquisition risk</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/health-care/25/07/46325593/gileads-lenacapavir-plan-faces-global-hurdles-as-it-commits-to-no-profit-access-for-2-million" rel="noreferrer noopener">Gilead's Lenacapavir Plan Faces Global Hurdles As It Commits To No-Profit Access for 2 Million</a>
The final European Commission (EC) decision is expected later this year. If approved, lenacapavir will be marketed in the European Union (EU) <a target="_blank" href="https://www.benzinga.com/pressreleases/25/07/b46623974/gilead-receives-positive-chmp-opinions-under-accelerated-review-from-european-medicines-agency-for" rel="noreferrer noopener">under the trade name Yeytuo.</a>
If approved, lenacapavir will be granted one additional year of market exclusivity in the EU due to the new indication.
Data from Gilead's Phase 3 PURPOSE 1 and PURPOSE 2 trials supported the positive opinions.
In the&nbsp;<a target="_blank" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.gilead.com%2Fnews%2Fnews-details%2F2024%2Ffull-efficacy-and-safety-results-for-gilead-investigational-twice-yearly-lenacapavir-for-hiv-prevention-presented-at-aids-2024&amp;esheet=54296374&amp;newsitemid=20250724024903&amp;lan=en-US&amp;anchor=PURPOSE+1+trial&amp;index=1&amp;md5=6ae78a11dbc0a3b85088e73bb83a290e" rel="noreferrer noopener">PURPOSE 1 trial</a>, data at the primary analysis showed that administration of twice-yearly subcutaneous lenacapavir led to zero HIV infections among 2,134 participants, 100% reduction in HIV infections and superiority of prevention of HIV infections when compared with once-daily oral Truvada&nbsp;(emtricitabine 200mg and tenofovir disoproxil fumarate 300mg; F/TDF)&nbsp;in cisgender women in sub-Saharan Africa.
In the&nbsp;<a target="_blank" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.gilead.com%2Fnews%2Fnews-details%2F2024%2Fgilead-presents-full-purpose-2-data-results-for-twice-yearly-lenacapavir-for-hiv-prevention-at-hiv-glasgow&amp;esheet=54296374&amp;newsitemid=20250724024903&amp;lan=en-US&amp;anchor=PURPOSE+2+trial&amp;index=3&amp;md5=0681b3673e8bfe8b2783482c26070315" rel="noreferrer noopener">PURPOSE 2 trial</a>, there were two HIV infections among 2,179 participants in the twice-yearly subcutaneous lenacapavir group, demonstrating 99.9% of participants did not acquire HIV infection and superiority of prevention of HIV infections when compared with once-daily oral Truvada among a broad and geographically diverse range of cisgender men and gender-diverse people.
In both trials, lenacapavir demonstrated superiority in preventing HIV infections when compared with background HIV incidence.
Needham upgraded Gilead after positive feedback from a recent physician survey on Yeztugo.
Analyst Joseph Stringer says the physician survey has increased confidence in Yeztugo and could be a multi-billion dollar contributor to the top line over the next several years.
Needham models that the HIV PrEP TAM (actual people on therapy) could grow from approximately 500K to around 900K by 2035.
The analyst upgraded Gilead from Hold to a Buy rating <a target="_blank" href="https://www.benzinga.com/quote/GILD/analyst-ratings" rel="noreferrer noopener">with a price forecast of $133</a>.
Doctors predict the HIV prevention (PrEP) market will grow by about 49% by 2030, and Yeztugo could take about 38% of that growth. They favor Yeztugo because it's easier to take than the current treatments.
With around 70% of Gilead's revenue coming from its HIV drugs, Yeztugo could become a key driver of the company's future growth.
Needham says Yeztugo could generate $4.1 billion in sales by 2030—about 10% more than current expectations—and $6.4 billion by 2035, about 20% above consensus.
Price Action: GILD stock is up 2.75% at $116.31 at the last check on Friday.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/earnings/25/07/46632096/hca-healthcare-eyes-76-billion-revenue-aggressive-profit-growth" target="_blank" rel="noreferrer noopener">HCA Healthcare Eyes $76 Billion Revenue, Aggressive Profit Growth</a></li>
</ul>
Photo by Michael Moloney via Shutterstock

Biotech

Large Cap

Upgrades

Health Care

GILD

Gilead's Newly Approved HIV Prevention Drug Poised To Add Billions To Future Sales

UBS analyst Timothy Chiodo maintains Fiserv (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FI#NYSE">FI</a>) with a Buy and lowers the price target from $225 to $170.

UBS Maintains Buy on Fiserv, Lowers Price Target to $170

UBS analyst Joshua Spector maintains Dow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOW#NYSE">DOW</a>) with a Neutral and lowers the price target from $26 to $25.

UBS Maintains Neutral on Dow, Lowers Price Target to $25

UBS analyst A.J. Rice maintains Community Health Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CYH#NYSE">CYH</a>) with a Neutral and lowers the price target from $3.5 to $3.2.

UBS Maintains Neutral on Community Health Sys, Lowers Price Target to $3.2

Raymond James analyst Ric Prentiss reiterates United States Cellular (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USM#NYSE">USM</a>) with a Outperform and raises the price target from $78 to $84.

Raymond James Reiterates Outperform on United States Cellular, Raises Price Target to $84

UBS analyst John Sourbeer maintains West Pharmaceutical Servs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WST#NYSE">WST</a>) with a Buy and raises the price target from $285 to $320.

UBS Maintains Buy on West Pharmaceutical Servs, Raises Price Target to $320

Raymond James analyst Ric Prentiss reiterates Telephone and Data Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>) with a Outperform and raises the price target from $47 to $49.

Raymond James Reiterates Outperform on Telephone and Data Sys, Raises Price Target to $49

Watching WW International; Shares See A Spike In Volume, As Traders Circulate Lawmakers Press FDA To Target Compounded, Fake GLP-1 Drugs

BP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>) stock has been recovering recently from its April lows, along with other major oil and gas companies. This recovery is related to the improvement in oil prices lately. But why should you consider BP stock now?
While the stock has not outperformed its peers over the past five years, the company has become a potential takeover target for larger firms. Even if a takeover doesn&#8217;t happen, the activist investor Elliott has been building a stake in the company this year, which is something very interesting to watch.
Why Is It Important to Have an Activist Investor in Your Company?
Because of voting rights. Activist investors aim to influence the strategic direction of the company. This is crucial for BP, which has been struggling with recent board decisions and shifting targets. BP has also altered its strategy as we saw in February, when the company dropped its climate targets and announced a renewed focus on oil and gas. In July, most BP-related news has centered on the company planning to halt or exit its green energy projects.
Let the Numbers Speak for Themselves
The company is set to announce its quarterly earnings on August 5th, which are expected to provide more clarity about BP's future even if they are below the expectations, especially after it experienced revenue declines in the past two quarters. However, the real challenge lies in its profitability as the profit margin is in negative territory.
BP also has a high debt-to-equity ratio of 92%, which highlights the urgent need for change to lower its debt and improve profitability. The company has committed to cutting costs by $4–$5 billion through 2027. It also plans to divest $20 billion in assets by 2027 while increasing investments in oil and gas and reducing net debt from $23 billion to a target range of $14–$18 billion. There&#8217;s also growing pressure for the company to sell off its renewable energy projects.
<figure class="wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex"> 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="554" data-id="16456" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144150/bp-new-1-1024x554.png" alt="" class="wp-image-16456" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144150/bp-new-1-1024x554.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144150/bp-new-1-300x162.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144150/bp-new-1-768x415.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144150/bp-new-1.png 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure> 
</figure>
BP's forward P/E ratio stands at 13.39 compared to the sector average of 13.75, keeping it competitive. The company is gradually narrowing the gap with its peers in terms of its debt-to-equity ratio.
Analyst Recommendations
The consensus price target is $35.98, based on ratings from 13 analysts. The highest target is $53, issued by Bernstein on February 8, 2023. The lowest is $29, issued by Jefferies on May 19, 2025. The three most recent analyst ratings came from Piper Sandler, Scotiabank, and Wells Fargo—released on July 15, July 11, and June 26, 2025, respectively. With an average price target of $33.67 from those three firms, there&#8217;s an implied 5.18% upside.
<figure class="wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-2 is-layout-flex wp-block-gallery-is-layout-flex"> 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="538" data-id="16458" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144417/new-pic-1024x538.png" alt="" class="wp-image-16458" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144417/new-pic-1024x538.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144417/new-pic-300x158.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144417/new-pic-768x404.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/07/25144417/new-pic.png 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure> 
</figure>
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

Equities

Commodities

Why BP Stock Should Be On Your List Now?

Hims & Hers Health, Inc. Class A Common Stock

HIMS

Hims & Hers Health shares are trading lower following a report indicating lawmakers are pressing the FDA to target compounded or fake GLP-1 drugs.

UBS analyst Nik Cremo maintains WEX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WEX#NYSE">WEX</a>) with a Neutral and raises the price target from $138 to $185.

UBS Maintains Neutral on WEX, Raises Price Target to $185

Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is facing mounting pressure from investors as concerns intensify over its lagging generative AI (GenAI) strategy, a key driver of growth across the tech sector. 
With the company&#8217;s shares down 14% year-to-date, contrasting sharply with the S&amp;P 500&#8217;s 8% gain, the market is signaling a clear demand for a definitive plan to catch up with rivals like Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google and Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), which have aggressively integrated AI into their offerings. 
The upcoming fiscal third-quarter earnings call on July 31 is now seen as a critical juncture for Apple to unveil a substantial GenAI investment roadmap, potentially involving significant increases in capital expenditure for infrastructure and even a multi-billion dollar acquisition, to stem the innovation gap and justify its premium valuation.
Also Read: <a href="https://www.benzinga.com/markets/tech/25/07/46538668/apples-online-store-is-now-live-in-saudi-arabia-flagship-stores-coming-by-2026" target="_blank" rel="noreferrer noopener">Apple&#8217;s Online Store Is Now Live In Saudi Arabia, Flagship Stores Coming By 2026</a>
Needham analyst Laura Martin, who maintains a <a href="https://www.benzinga.com/quote/AAPL/analyst-ratings">Hold rating</a> on Apple shares, issued a cautionary note to investors ahead of the earnings release. Martin emphasized that Apple can no longer afford a passive stance without a clearly defined GenAI strategy or implementation plan.
So far, the analyst noted that Alphabet Google has emerged as the fastest adopter among Big Tech, embedding GenAI across its entire product suite and operational framework. As a result, iOS continues to lag further behind Android each quarter, she said. 
Since the iPhone remains Apple&#8217;s anchor product, driving both hardware upgrades and services revenue, Martin noted the widening innovation gap as a potential existential threat to Apple. 
Today&#8217;s most forward-thinking technologists want to work on GenAI to build what wasn&#8217;t previously possible. If Apple fails to give its employees the tools and freedom to integrate GenAI into its ecosystem, the analyst said it risks losing top AI talent to firms like Meta Platforms, OpenAI, or Anthropic.
With every quarter Apple delays its GenAI vision, criticism from both the media and Wall Street about Tim Cook&#8217;s leadership grows louder, he said. Apple shares have dropped 14% year-to-date, while the S&amp;P 500 is up 8%, a clear signal that investors expect Apple to act, as per the analyst.
Martin continues to advise caution ahead of next week&#8217;s earnings call. The analyst says Apple needs to present a defined GenAI investment plan. She says the company is trailing its peers by 1–2 years, and catching up will require elevated operating costs, increased capital expenditures, and potentially even a large acquisition.
Specifically, Martin is concerned Apple may announce a significant increase in CapEx guidance, from $12 billion in fiscal 2025 to somewhere between $30-$50 billion annually, to build GenAI-ready data centers, networking gear, and server infrastructure.
The analyst feared the company may announce a multi-billion-dollar annual licensing deal with Anthropic or another proprietary model developer to create a custom GenAI foundation for Apple.
She expressed concerns over the company&#8217;s announcement of higher operating expenses due to adding GenAI engineers, absorbing cloud usage costs (since Apple lacks its own cloud business), and building GenAI tools and systems.
Martin highlighted increased costs to retain GenAI talent as Apple faces fierce hiring competition from Meta and others and growing signs of talent attrition.
According to the analyst, a large-scale GenAI acquisition, such as Perplexity AI ($14 billion), would accelerate GenAI&#8217;s capabilities and close the gap.
Most Big Tech companies have already laid out GenAI roadmaps that aim to enhance return on invested capital (ROIC), and their valuations reflect that, despite higher costs and CapEx. 
In contrast, Martin noted that Apple&#8217;s forecasts don&#8217;t account for the incremental investment needed to catch up in the GenAI race. 
She said that Apple&#8217;s stock could come under pressure once the market prices are at the true cost of this catch-up. Until Apple&#8217;s GenAI capital plans align with the pace of its competitors, the analyst advised staying cautious.
Apple remains the only Big Tech firm still on the sidelines, allocating just $12 billion annually to CapEx. Martin noted this won&#8217;t be sustainable if Apple wants to remain competitive in a GenAI-driven world.
Apple currently trades at a forward FY2026 P/E of approximately 27.7x, which is 63% higher than Apple&#8217;s 10-year historical average of ~17x, nearly 25% higher than the S&amp;P 500&#8217;s average 2026 P/E of ~22x.
For Apple shares to justify this multiple, a major iPhone upgrade cycle is needed, something Martin doesn&#8217;t anticipate within the next 12 months.
She expects Apple will need to pour billions into GenAI over the next three years, costs that aren&#8217;t factored into current consensus estimates.
Martin noted that despite trading at a premium, Apple is delivering the slowest revenue and margin growth among Big Tech. In the March 2025 quarter, peers reported 2-3 times faster revenue growth and 3-12 times faster margin expansion. According to the analyst, these metrics suggest Apple&#8217;s premium valuation relative to peers is vulnerable.
Martin noted that Apple faces structural disadvantages in the long term. It can only use GenAI to enhance its own ecosystem, while Google not only improves Android with its Gemini LLM but also monetizes it through Google Cloud by licensing it to thousands of external customers, as per the analyst.
Similarly, Amazon.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) benefits from a large cloud business that earns revenue from GenAI startups building on its infrastructure, she said. Apple, lacking a cloud platform, bears GenAI costs without the offsetting revenue potential, putting it at a competitive and valuation disadvantage, as per the analyst.
Meanwhile, Apple&#8217;s Big Tech rivals are building platforms designed to bypass Apple&#8217;s ecosystem entirely, targeting its 15-30% App Store revenue share. Martin added that Apple remains exposed without a strategic GenAI plan to protect its moat.
AAPL&nbsp;Price Action:&nbsp;Apple stock is trading higher by 0.45% to $214.70 at last check Friday.
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