ZACKSยท2025-04-25 13:06Market Overview - The U.S. stock markets have been affected by the new tariff regime imposed by President Trump, with the S&P 500 Index reaching an all-time high in mid-February before declining [1] - The S&P 500 Index has declined 6.8% year-to-date, primarily due to rising uncertainty from tariffs [3] Tariff Impact - The tariff war between the U.S. and China has increased the risk of recession or stagflation, coinciding with a recovery from high inflation and supply-chain disruptions [2] - Significant tariffs have been imposed, with a 10% blanket tariff on all imports and a maximum of 145% on China, raising concerns of a trade war [1][2] Broker Reactions - Major brokers, including Deutsche Bank, Barclays, Citi, and Goldman Sachs, have lowered their 2025-end targets for the S&P 500 by 10% to 25% due to tariff-related uncertainties [5] - Despite the reductions, most brokers maintain optimistic targets above current levels, except J.P. Morgan, which expects the index to reach 5200 by year-end [5] Trade Agreements and Negotiations - A 90-day pause on tariffs has been implemented for all U.S. trading partners except China, prompting countries to seek trade agreements to avoid tariff hikes [6] - Both the U.S. and China have exempted certain products from tariffs, indicating some progress, but negotiations remain stalled [7] Company Performance Aveanna Healthcare (AVAH) - Reported Q4 2024 revenues of $519.9 million, an 8.6% year-over-year increase, and a net income improvement to $29.2 million from a loss [11] - Expected revenues for 2025 are projected between $2.10 billion and $2.12 billion, with adjusted EBITDA between $190 million and $194 million [12] - The company has a revenue growth rate of 4.6% and an earnings growth rate of 100% for the current year [13] Cal-Maine Foods (CALM) - In Q3 fiscal 2025, reported sales of $1.4 billion and net income of $508.5 million, driven by higher market prices and strong demand [14] - Anticipates an earnings growth rate of 300.5% for fiscal 2025 [16] CommScope (COMM) - Delivered improved performance in Q4 2024, driven by cost optimization and steady demand for broadband solutions [17] - Expected revenue growth of 3.8% and an extraordinary earnings growth rate of 3000% for the current year [20] Sterling Infrastructure (STRL) - Posted record revenues of $553.5 million in Q4 2024, reflecting a 14% year-over-year increase [22] - Anticipates a revenue decline of 4.1% in 2025 but expects earnings to rise by 34.6% [24]