Good MorningEquity markets rebounded on Thursday after softer-than-expected PPI data took the sting out of Wednesday's CPI report. Because the PPI is a leading indicator of consumer prices, market participants believed the data points to decelerating inflation, keeping the FOMC on track to cut rates this year. The caveat is that the CPI was largely driven by gas and energy prices, which are up significantly from recent lows and $10 or 13% above 2023's average price. With this situation underpinning the economy, inflation should be expected to persist for the foreseeable future.
Next week's focus will be on earnings. The banks usher in the CQ1 earnings reporting season today, which is expected to show earnings growth accelerate from the prior quarter. The risk is that results, guidance, or both will be less than anticipated, undercutting the outlook for full-year results. Inflation and interest rates aside, a deteriorating outlook for earnings is a powerful headwind for the S&P 500 that it may be unable to overcome. Add in the growing possibility that there will be no interest rate cuts this summer, and the odds of a major S&P 500 correction before or over the summer grow to a near certainty. Featured: A.I. Pioneer Issues Urgent Warning to Americans (TradeSmith) 
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Dividend Aristocrat Fastenal (NASDAQ: FAST) fell about 5% after its Q1 release and may fall further. Not because the business is flagging but because the valuation has run up to unsustainable levels. This stock rose nearly 100% over the last two years, recently peaking at an all-time high, and cor... Read the Full Story |
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Stocks | | | U.S. stocks tumbled Friday following a mixed start to earnings reporting season. Worries about potentially escalating tensions in the Middle East rattled financial markets, pushing investors to look for safer places for their money.The S&P 500 sank 1.5% to close out its worst week since October,... Read the Full Story |
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Constellation Brands Inc. (NYSE: STZ) stock is up 2.4% in early trading after the adult beverages company reported a double beat in its fourth quarter 2023 earnings report. Revenue of $2.14 billion topped estimates for $2.10 billion. But it was the earnings per share (EPS) that got the most attent... Read the Full Story |
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Markets | | | The European Central Bank signalled Thursday it could cut interest rates at its next meeting in June, a big step as the rich world's central banks, including the U.S. Federal Reserve, wrestle with how soon declining inflation will let them lower credit costs for business and consumers. The bank left... Read the Full Story |
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When you're bullish on a stock and expect it to move higher, your initial impulse may be to play the stock options and buy a long call contract. There's nothing wrong with that if you believe a rapid price spike will happen in a relatively short period of time. Remember that Theta (time decay) wor... Read the Full Story |
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CarMax, Inc. (NYSE: KMX) shares are down a solid 10% following a weak Q4 earrings report and a revision in the long-term guidance. The company didn't lower its sales targets. Still, it extended the time frame to reach it, citing uncertain conditions, the impact of higher prices and interest rates,... Read the Full Story |
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Markets | | | Weak details or not, the 25% price implosion in SMART Global (NASDAQ: SGH) share price is an opportune time to buy into this stock. The expectations were high going into the Q2 report, and end-market normalization is still in play, so weakness is not surprising. The takeaway is that this company is ... Read the Full Story |
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Markets | | | China’s exports contracted in March after growing in the first two months of the year, underscoring the uneven nature of the country's recovery from the pandemic. Customs data released Friday show exports declined 7.5% in March from a year earlier, while imports slipped 1.9%. Both figures fell short... Read the Full Story |
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Markets | | | Shop for a home now or hold out for the possibility of lower mortgage rates? That question is confronting many home shoppers this spring homebuying season.Lower rates give home shoppers more financial breathing room, so holding out for a more attractive rate can make a big difference, especially for... Read the Full Story |
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Markets | | | Millions of jobs that new immigrants have been filling in the United States appear to solve a riddle that has confounded economists for at least a year: How has the U.S. economy managed to prosper, adding hundreds of thousands of jobs, month after month, at a time when the Federal Reserve has aggressively raised interest rates — normally a recipe for a recession Read the Full Story |
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Friday's Early Bird Stock Of The Day KKR & Co., Inc. operates as an investment firm. It offers alternative asset management as well as capital markets and insurance solutions. The firm's business segments include Asset Management and Insurance Business. The Asset Management segment engages in providing private equity, real assets, credit and liquid strategies, capital markets, and principal activities. The Insurance Business segment offers retirement, life insurance and reinsurance solutions to clients across individual and institutional markets. The company was founded by Henry Kravis, George R. Roberts, and Jerome Kholberg on May 1, 1976 and is headquartered in New York, NY. | Should I Buy KKR & Co. Inc. Stock? KKR Bull and Bear Case Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of KKR & Co. Inc. was last updated on Thursday, February 20, 2025 at 6:11 PM.
KKR & Co. Inc. Bull Case -
The company has a strong reputation in the investment management industry, which can attract more clients and increase assets under management.
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Recent analyst ratings indicate a consensus target price of $161.43, suggesting potential for price appreciation from current levels.
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Kohlberg Kravis Roberts & Co. L.P. has diversified its offerings, including private equity, credit, and insurance solutions, which can provide stability and growth opportunities.
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76.26% of the stock is owned by hedge funds and institutional investors, indicating strong institutional confidence in the company's future performance.
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The firm has shown resilience in its financial performance, with recent reports highlighting significant investments and strategic acquisitions that could enhance growth.
KKR & Co. Inc. Bear Case -
Recent downgrades from analysts, such as HSBC Global Research lowering its rating from "strong-buy" to "hold," may indicate concerns about future performance.
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Market volatility can impact the performance of alternative asset management firms, potentially leading to fluctuations in stock price.
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Increased competition in the investment management space could pressure margins and affect profitability.
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Changes in regulatory environments can pose risks to the business model and operational strategies of investment firms like Kohlberg Kravis Roberts & Co. L.P.
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Recent sales by institutional investors, such as Rational Advisors LLC reducing its position by 10.2%, may signal a lack of confidence among some stakeholders.
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