00:00 Speaker A
It is now time for some right this moment’s trending tickers. We’re watching shares of First Photo voltaic, Yum Manufacturers, and Volkswagen. First up, First Photo voltaic tumbling after chopping its first yr internet gross sales steerage, the corporate’s CEO noting important challenges from President Trump’s tariffs that he says weren’t anticipated at first of the yr. Analysts at KeyBank downgraded the inventory to underweight, noting that the corporate’s abroad manufacturing publicity is bigger than they initially thought. Jay Woods nonetheless right here with me to interrupt it down. So not the primary firm to chop steerage off of worries about tariff insurance policies right here, however you make an fascinating level about the way you take a look at photo voltaic typically.
00:39 Jay Woods
Yeah. Nicely, you knew coming into the Trump administration that this was not going to be a type of areas of focus, uh, there he is not trying to assist these, you understand, clear power shares by any stretch of the creativeness. And for photo voltaic, in the event you take a look at it traditionally, you understand, technically, each each rally sadly has been a chance to promote inventory, and the inventory is now going in the direction of its 52 week low round 116 and a half. It is down 29% for the yr. We had a pleasant rally final week within the photo voltaic shares. There was some optimistic information there. Um, however sadly, the steerage, as anticipated wherever, is cloudy, you understand. And, uh, we’re not, uh, you understand, not a believer that this story and photo voltaic shares are going to show round anytime quickly, sadly.
01:34 Speaker A
Yeah, awaiting readability is the secret right here. However subsequent up, Yum Manufacturers. Income falling in need of the road’s expectations in a combined first quarter as Pizza Hut’s similar retailer gross sales fell greater than anticipated. The pizza chain’s efficiency was weakest within the US the place similar retailer gross sales slid 5%. Taco Bell meantime a standout throughout the quarter with similar retailer gross sales up 9%. Regardless of the income miss, Yum Manufacturers beat estimates for adjusted earnings per share. You’ll be able to see their shares down about half a % proper now. Actually fascinating takes on the buyer right here as a result of the Taco Bell energy may probably be a recession indicator, individuals. I imply, they you will get so much for not some huge cash at a Taco Bell.
02:21 Jay Woods
Taco Bell is a staple, uh, you understand, particularly for these school college students, late nights. However, uh, yeah, and a Pizza Hut. I have not seen a Pizza Hut in ages. That brings me again to my childhood. However Yum Manufacturers general, uh, not as dangerous as individuals anticipate. They did have a stable quarter. They’re doing nicely internationally, uh, the place individuals had been just a little stunned in that, okay, this anti-American sentiment possibly will cease going to those American manufacturers, however they’ve they have been doing all proper. After which within the client staples sector, they’re holding their very own weight. It is it is a dip right here, however given the uncertainty in all places else, I do not assume Yum Manufacturers is a nasty place to be proper now. Um, in fact the steerage goes to be rosy like we mentioned with each inventory we talked about right this moment. Who is aware of what we’re doing? However the these staples do nicely. The Taco Model Bell, uh, Taco Bell model is, uh, is one to not mess with. And, uh, these outcomes are stable. So Yum Manufacturers will not be a nasty place to sort of disguise and keep away from a few of this general volatility out there.
03:46 Speaker A
Yeah, admit amongst the buyer names, possibly it is one which has a contact of resilience to your level there. Let’s take a look at Volkswagen although, reporting a 37% drop in working revenue within the first quarter because the auto business makes an attempt to navigate President Trump’s tariffs. In its ahead steerage, the automotive maker says it expects its internet money move to return in on the decrease finish of annual forecasts because of political uncertainty, none else. On Tuesday, President Trump signed an order easing some auto tariffs, although a 25% levy on all automobiles imported into the US will stay. Tariffs on auto half imports set to start by Might third may also go ahead as deliberate. The inventory down practically 30% in the mean time, however that over 30% drop in Q1 revenue in 1 / 4 the place some others within the area probably benefited from pull ahead, that is not essentially an awesome sign.
04:44 Jay Woods
No, that is not a very good sign in any respect. I imply, when persons are dashing out to purchase their autos, Volkswagen sadly wasn’t on the highest of their checklist. And the sector proper now could be a complete keep away from. Uh, even after we get readability, uh, the margins are simply too skinny. It is not the largest development business, if you’ll. Uh, I do know Tesla is a standout there, and that is extra of an influence era story than an auto story. However, uh, you understand, no shock on the information, nonetheless ready to get that certainty. I imply, the truth that we’ve GM possibly giving steerage tomorrow, ready 48 hours, is an indication of what these, you understand, CEOs at these auto sellers are coping with. So for me, uh, the auto sector is an keep away from, and it is not a shock to see Volkswagen down 3% right this moment.
05:42 Speaker A
All proper, Jay. Thanks a lot. Nice insights, as all the time. And you’ll scan the QR code to trace the most effective and worst performing shares on Yahoo Funds trending tickers web page.
