AxelRedder/iStock via Getty Images In my last article, I wanted to explain the global electrification boom in recent years. The article was about American Electric Power ( AEP ), which seemed to be a very interesting option to participate in the mentioned boom, thanks to its powerful energy infrastructure based on coal and large investments in transmission. If you have some stock in AEP, I recomme...
AxelRedder/iStock via Getty Images In my last article, I wanted to explain the global electrification boom in recent years. The article was about American Electric Power ( AEP ), which seemed to be a very interesting option to participate in the mentioned boom, thanks to its powerful energy infrastructure based on coal and large investments in transmission. If you have some stock in AEP, I recommend keeping it. But I wouldn't add to my position, at least for now. AEP has a market cap of $71 billion, so it is a high quality option. These companies are very analyzed by the market that has already priced in their potential. That's why, sometimes the best opportunities are in companies of small and mid capitalization. In this case, I see that opportunity in Bowman Consulting ( BWMN ), an energy infrastructure construction company that is getting positioned in the electrification boom. With a market cap of $470 million, the company doesn't appear to have been viewed by the market as an attractive investment in Utilities ( XLU ). And that's because BWMN operates in four segments, each one with significant internal diversification. In the same way it builds streets, houses, and offices, it also provides full service solutions for power generation and data centers. Its low market cap also has some risks, such as a higher sensitivity to interest rates, but I believe the cost-benefit analysis is favorable. Besides, the company is trading below its peers while its backlog continues to grow. Bowman Consulting The electrification boom I want to go back just for a moment, to the electrification boom. I believe the Middle East conflict will, once again, demonstrate the need for energy diversification. Yes: It's not only an energy transition. I do believe the world needs more diversification. I would even say that greater energy diversification accelerates the transition to renewable sources. On the way to transition, I believe that to diversify is also to use non-renewable sources...
E_Y_E/iStock Unreleased via Getty Images Summary Following my coverage on American Eagle Outfitters, Inc. ( AEO ) in October 2025, for which I recommended a sell rating as I thought the valuation was too stretched relative to the underlying fundamentals, this post is to provide an update on my thoughts on the business and stock. In this update, I still see some of those issues, especially within t...
E_Y_E/iStock Unreleased via Getty Images Summary Following my coverage on American Eagle Outfitters, Inc. ( AEO ) in October 2025, for which I recommended a sell rating as I thought the valuation was too stretched relative to the underlying fundamentals, this post is to provide an update on my thoughts on the business and stock. In this update, I still see some of those issues, especially within the AE brand and around tariffs. But the recent performance was clearly better, led by strong Aerie momentum and some signs of improvement at AE. In my view, that weakens the bear case enough for me to move back to a hold rating. What got better My original bearish view was that AEO’s recovery was mostly bought through promotions and that its pricing power was weak; margin weakness was also visible, and the setup did not look like a sustainable turnaround. I also thought that Aerie had shown some green shoots, but it is not enough to move the needle, and the American Eagle [AE] brand itself still was not showing the kind of sales acceleration one would expect after all the noise around the celebrity campaigns. Looking at the recent developments, I’d say there is evidence to suggest my bearish view has weakened. I am not ready to turn bullish yet, but I also do not think the right stance is still bearish. Bloomberg One of the key developments here is Aerie. Previously, I said Aerie was not going to move the needle because it was only up 3%, but I am clearly wrong here. Aerie’s comp growth accelerated significantly to 23% in Q4 2025 , with new Aerie customers up 14% and brand awareness up 12% y/y. This wasn’t “bought” through celebrity campaigns but appears to be real organic demand, as it was broad-based across categories and channels. With this level of growth, Aerie is a game changer, especially as it is 40% of total revenue and the largest mix of adj. EBIT. This becomes an even more important growth anchor vs. AE, and there is now a strong angle that growth could potential...
(RTTNews) - French stocks climbed higher on Tuesday, gaining significant ground in positive territory after an extended weekend, as investors indulged in some brisk buying ahead of U.S. President Donald Trump's deadline for Iran to make a deal to reopen the Strait of Hormuz.
(RTTNews) - French stocks climbed higher on Tuesday, gaining significant ground in positive territory after an extended weekend, as investors indulged in some brisk buying ahead of U.S. President Donald Trump's deadline for Iran to make a deal to reopen the Strait of Hormuz.
guirong hao/iStock via Getty Images By Michael Grant The first quarter of 2026 has delivered on the more turbulent half of our forecast while confounding its more orderly assumptions. Operation Epic Fury was not in our script, but it was in our framework. We argued that the equity bull market would encounter significant headwinds in Q1, that peak reflation was approaching, and that volatility woul...
guirong hao/iStock via Getty Images By Michael Grant The first quarter of 2026 has delivered on the more turbulent half of our forecast while confounding its more orderly assumptions. Operation Epic Fury was not in our script, but it was in our framework. We argued that the equity bull market would encounter significant headwinds in Q1, that peak reflation was approaching, and that volatility would rise. All of this has come to pass, though the catalyst has been more dramatic and unexpected. We had anticipated an interim peak for US equity benchmarks in the first quarter, followed by a correction of 10%+ through the summer, with the best opportunities for reinvestment emerging ahead of the midterm elections in autumn. The Iran war has precipitated and dramatized the correction that one could have reasonably judged probable. It has not transformed a correction into a bear market , but it has narrowed the margin for error considerably. Market behavior since the inception of Epic Fury is instructive: there has been no disorderly collapse. The investment community continues to treat the energy shock as temporary and the geopolitical disruption as containable. We share this view as a base case, but it will take time for investors to develop conviction here. The first fortnight of April is a critical juncture, and we see material downside support in the 6,000–6,200 area for the S&P 500 Index ( SP500 ). Why did Trump act now? Our answer is the convergence of the political calendar and strategic conviction. This was his last window to deploy military force on a significant scale before the mid-term elections erode his congressional margin. Trump has been consistent on the Iranian threat for years, never a believer in diplomacy as anything but a mechanism for delay. For a president conscious of legacy, the dismantling of a uniquely malignant regime carries obvious appeal. The minimum objective of Epic Fury - the removal of Iran's nuclear and ballistic missile capability - ap...
Stocks have gotten off to a difficult start here in 2026, and in March, the Dow Jones Industrial Average entered correction territory for the first time since last year's "Liberation Day" tariff announcement shook markets. Getting lost in the shuffle are recent regulatory changes that benefit bank stocks , and one bank on my radar is Truist Financial (NYSE: TFC) . The bank stock trades at a slight...
Stocks have gotten off to a difficult start here in 2026, and in March, the Dow Jones Industrial Average entered correction territory for the first time since last year's "Liberation Day" tariff announcement shook markets. Getting lost in the shuffle are recent regulatory changes that benefit bank stocks , and one bank on my radar is Truist Financial (NYSE: TFC) . The bank stock trades at a slight discount to book value and is an intriguing opportunity for investors looking to play the upside in regional banks amid changing capital requirements. Here's why. Image source: Getty Images. Continue reading