Core Insights - The transportation sector in 2025 has faced challenges due to tariff issues, supply-chain crises, and low freight demand, compounded by geopolitical tensions and a prolonged U.S. government shutdown. However, declining oil prices and cost-cutting measures have positively impacted profitability [1]. Industry Overview - Oil prices are expected to remain low in 2026, benefiting transportation stocks as fuel costs are a significant expense for these companies. The average price of West Texas Intermediate crude is projected at $65.32 per barrel in 2026, down from $76.60 in 2025. Jet fuel costs are also expected to decrease to $88 per barrel in 2026 from $90 in 2025, with the total fuel bill anticipated to be $252 billion in 2026 [2][3]. Macroeconomic Factors - The macroeconomic environment is showing signs of improvement as inflation in the U.S. is declining, despite remaining above the Federal Reserve's 2% target. The Fed has implemented three rate cuts in 2025, which may support the transportation sector [4]. Shipping Industry Insights - The shipping industry is expected to benefit from a supportive macro backdrop, with capsize bulk carriers positioned well due to strong demand for iron ore and bauxite. The recent increase in dry bulk rates is likely to continue into the next year [5]. Cost Control and E-commerce - Ongoing cost-control efforts amid soft freight demand are expected to enhance profitability. The strength of e-commerce continues to be a significant tailwind for the sector, while steady air travel demand is encouraging for airlines despite economic headwinds [6]. Stock Recommendations - Three transportation stocks are highlighted for potential investment: Expeditors International of Washington (EXPD), Global Ship Lease (GSL), and LATAM Airlines (LTM). These stocks carry Zacks Rank 1 (Strong Buy) or 2 (Buy) and are expected to deliver healthy returns [6]. Company Performance - Expeditors is benefiting from cost cuts and e-commerce strength, with a 7.6% EPS estimate increase for 2026. The company has a strong earnings surprise history, with an average surprise of 13.9% over the last four quarters [9][11]. - Global Ship Lease has a diversified fleet and has consistently outperformed earnings estimates, with a 16.8% average earnings beat and a 3.1% upward revision to its 2026 EPS view [9][12]. - LATAM Airlines is experiencing growth due to its lean cost structure and improved air travel demand, with a 4.5% upward revision to its 2026 EPS estimates and an average earnings surprise of 29.8% over the last four quarters [9][14].

Group 1 - Verizon Communications Inc. is recognized as one of the best telecom stocks to invest in, with Raymond James reaffirming its Outperform rating and setting a price target of $47, highlighting the company's strong dividend yield and potential for subscriber growth [1] - The company is analyzing legacy expenditures that are overdue for reduction, with plans to significantly cut or cancel ineffective initiatives such as Mobile Edge Compute, Internet of Things emphasis, and Private Networks, expecting benefits from these changes to appear between late 2026 and early 2027 [2] - Verizon has established a new 100G specialized optical ring for Monumental Sports & Entertainment, enhancing the network infrastructure of the Monumental Sports Network, and has successfully completed the sale of €2.25 billion and £1 billion in subordinated notes due in 2056, involving major financial institutions like BNP Paribas and Goldman Sachs [3]

Core Viewpoint - PepsiCo has agreed to reduce its product lineup by 20% in the US, lower some prices, and lay off an unspecified number of workers as part of a deal with activist investor Elliott Management [1][2][3] Group 1: Product Changes - The company will cut an unspecified number of brands from its well-known snack and beverage lineup, which includes Lay's, Cheetos, Doritos, and Pepsi [1][6] - PepsiCo has repackaged its Lay's potato chips to emphasize they are made with "real potatoes" and has replaced artificial dyes with natural alternatives in some products [4] - The company plans to introduce new products with higher protein and fiber content, as well as reduced-sugar options [5][8] Group 2: Financial Strategy - PepsiCo expects organic revenue growth of 2% to 4% in fiscal 2026, slightly below analysts' estimates of 2.7% [5] - The CEO stated that savings from cost-cutting measures will be used to lower prices on top brands to boost sales, as inflation has led consumers to avoid expensive snacks and sodas [7][8] Group 3: Corporate Restructuring - The company is making structural changes that will affect some roles, although the specific number of layoffs and areas impacted have not been disclosed [3] - PepsiCo is not considering a full refranchising of its North American business despite Elliott's push for changes [10]

This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. Graphic Packaging International announced late Monday it will undertake a series of changes in the coming weeks, including bringing in a new CEO and conducting layoffs in 2026. Mike Doss, president and CEO for 10 years, will depart as of Dec. 31, and Robbert Rietbroek will take over on Jan. 1, according to a securities filing. Doss will also leave his position ...

Core Insights - The ongoing inflation and changes in federal policies are significantly impacting both households and corporations, leading to layoffs and restructuring efforts across various industries [1] Company Overview - United Supermarkets, a grocery chain founded in 1916, operates 96 stores under multiple banners and employs around 18,000 workers [2][3] Layoffs and Restructuring - United Supermarkets plans to lay off 126 workers at its main office in Lubbock, Texas, on January 19, 2026, affecting various roles including director-level and marketing positions [4] - The company aims to transition affected employees into alternative roles during the restructuring process, with new operating systems expected to be implemented by mid-to-late 2026 [5][6] Cost-Cutting Strategies - Albertsons, the parent company of United Supermarkets, is executing a cost-cutting strategy that includes reducing Selling, General, and Administrative (SG&A) expenses [7] - Albertsons has already eliminated hundreds of corporate roles across its Safeway banner, including significant layoffs in Phoenix and Pleasanton [8] Financial Performance and Future Plans - Albertsons anticipates $1.5 billion in savings from fiscal 2025 through fiscal 2027, which will be reinvested into digital expansion and operational productivity [9][10] - The company reported a 2.2% increase in same-store sales and a 23% rise in digital sales during the second quarter of fiscal 2025 [10] Industry Trends - The grocery industry is facing challenges due to a failed $24.6 billion merger between Kroger and Albertsons, which was blocked by the FTC [11][12] - Both companies are undergoing significant operational changes to reduce costs and improve efficiency in response to economic pressures [12] Labor Market Conditions - The labor market is experiencing a slowdown, with 911,000 fewer jobs added than expected over the past year, and the unemployment rate rising to 4.3% [17][18] - The reliance on layoffs as a strategy to manage economic shifts may lead to long-term costs that undermine company stability and performance [19]

Core Viewpoint - H&M is closing two large stores in Manhattan as part of a global cost-cutting strategy, which will add significant retail space to the market in New York City [1][2]. Group 1: Store Closures - H&M will close its stores located at 18 Church St. at the World Trade Center and 150 E. 86th St. in January, resulting in a total of 55,000 square feet of retail space becoming available [1][3]. - After these closures, H&M will retain eight locations in New York City [2]. Group 2: Global Strategy - The closures in Manhattan are part of H&M's broader plan to shut down approximately 200 of its more than 4,300 stores worldwide as a measure to reduce costs [2].

Group 1: ABN Amro Bank N.V. - ABN Amro Bank N.V. announced a restructuring plan to cut 5,200 full-time equivalent positions by 2028 as part of a cost-cutting strategy [2][8] - The bank has already eliminated over 1,000 jobs in 2025, with the remaining 4,200 positions to be cut in the coming years [2] - CEO Marguerite Bérard is leading the new financial strategy aimed at enhancing profitability and right-sizing the cost base [2] Group 2: Jefferies Price Target Adjustments - Jefferies increased its price target for Agilent Technologies from $130 to $150, reflecting a positive outlook on the life sciences company [3][8] - The firm also raised the price target for Canadian Imperial Bank of Commerce (CIBC) from C$106 to C$118, indicating optimism about the bank's performance [4][8] - Conversely, Jefferies lowered its price target for EQB Inc from C$107 to C$93, suggesting a more cautious view on the lender's near-term prospects [5][8]

DOGE days are over as Trump disbands Elon Musk’s team of federal cost-cutters https://t.co/3RAA7SPkJw ...

Core Insights - PepsiCo's 2025 strategy focuses on aggressive cost reduction and an accelerated innovation agenda to rebuild profitability after facing margin pressure from inflation and supply-chain issues [1][8] - The company aims to strengthen margins through productivity improvements, including SKU reductions and workforce cuts, while also investing in new product development [2][3] Cost Reduction Initiatives - PepsiCo has cut over 35% of SKUs and reduced Frito-Lay's workforce by 7%, alongside shutting down some plants and consolidating distribution [2] - The company plans to implement an additional 15% SKU reduction in the fourth quarter to further enhance margins [2] Innovation and Product Development - PepsiCo is focusing on a stronger pipeline of new products, including functional drinks and clean-label snacks, to drive higher-value growth [3] - Successful product launches like Pepsi Zero Sugar and Gatorade Lower Sugar reflect the company's shift towards health-focused categories [3] Financial Performance and Projections - PepsiCo's shares have decreased by 2.5% over the past three months, compared to a 0.2% decline in the industry [7] - The forward price-to-earnings ratio for PepsiCo is 17.49X, slightly below the industry average of 18.01X [9] - The Zacks Consensus Estimate indicates a 0.7% decline in earnings for 2025, with a projected growth of 5.9% for 2026 [10]

Core Insights - Volkswagen AG has reduced the cost of developing electric vehicles (EVs) for the Indian market to approximately $700 million from the previous estimate of $1 billion, reflecting a strategic shift in its investment approach due to low market share of around 2% after nearly two decades of operations [2][10][12] - The company is actively seeking domestic partners, including discussions with an Indian contract manufacturer and the JSW Group, to share investment and risks, especially after previous talks with Mahindra & Mahindra collapsed [1][3][10] - Volkswagen's India-specific EV launch is anticipated in 2028, with the company also considering short-term alternatives such as importing electric cars if trade agreements between the EU and India facilitate such shipments [5][10] Investment Strategy - The cost-cutting measures are part of a broader recalibration of investments by global automakers across various markets, including India, China, and Western regions [7][12] - Despite significant investments over the years, Volkswagen has struggled to gain substantial market share in India, where local competitors like Maruti Suzuki and Hyundai dominate with affordable offerings [8][12] - The company is prioritizing a partnership model to unlock further internal funding, indicating a shift towards collaboration in a challenging market environment [10][12] Regulatory Environment - With stricter carbon-emission norms set to take effect in India by 2027, car manufacturers are under increasing pressure to transition to cleaner technologies [4][10] - Volkswagen's strategic reset aims to maintain relevance in one of the fastest-growing automotive markets while addressing rising investment pressures and the need for cleaner mobility solutions [9][12]