Core Viewpoint - Morgan Stanley believes the recent stock market sell-off has been indiscriminate, particularly affecting stocks linked to the AI trade without proper differentiation among companies [1][9]. Market Dynamics - The current market is in the early stages of a potential $10 trillion capital-spending cycle driven by significant productivity gains, although market movements are rarely linear [2]. - The software and services sector has faced substantial declines, with notable drops in major enterprise software companies over the past month [3][7]. Leadership and Investment Strategy - There is a broadening of leadership in the market, indicating that AI adoption extends beyond just chipmakers and large hyperscalers [4]. - Investors are encouraged to focus on "unloved" market segments such as small caps, REITs, and emerging markets, which may be the first to reflect a market rotation [5]. Future Projections - Morgan Stanley's year-end 2026 target for the S&P 500 is set at 7,800, while other firms have varying targets ranging from 7,100 to over 8,000 depending on market conditions [8][10]. - Companies actively integrating AI into their operations are experiencing margin expansion at nearly half the rate of major benchmarks like the S&P 500 and MSCI World, suggesting a shift from AI builders to AI adopters [9].

A month has gone by since the last earnings report for Citizens Financial Group (CFG) . Shares have added about 0.5% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Citizens Financial Group due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Citizens Financial Group, Inc. before we dive into ...

Analysts expect bank earnings to rise when Canada’s Big Six report next week — but each is under pressure to squeeze higher returns on equity. Read more in the Bay Street Edition newsletter. https://t.co/4imv8HTajh ...

Core Insights - Klarna Group achieved its first billion-dollar revenue quarter, totaling $1.082 billion in Q4 2025, marking a 38% year-over-year increase [1] - The growth was driven by a record GMV of $38.7 billion and a 101% increase in banking consumers, reaching 15.8 million [1] Revenue Growth - The US market was the primary growth engine, with revenue accelerating 58% year-over-year as Klarna reached 29 million domestic consumers [2] - Significant market share gains were observed in the Fair Financing segment, which grew 165% as users moved away from traditional revolving credit [2] User Engagement - The Klarna Card saw substantial adoption, ending the quarter with 4.2 million active users, nearly double the count from the previous quarter [2] - Engaged users generate over 3 times the revenue of average consumers, indicating a strategic shift from a payments provider to a global digital bank [1] Operational Efficiency - Klarna demonstrated significant operating leverage through AI-driven efficiencies and disciplined underwriting [3] - Since 2022, the company has doubled its revenue while reducing operating expenses by 8% and decreasing headcount by 49%, resulting in a revenue per employee of $1.24 million [3] Company Overview - Klarna Group operates as a digital bank and flexible payments provider in the UK, the US, Germany, Sweden, and internationally, offering payment and marketing solutions to consumers and merchants [4]

The number of tax returns the IRS has received so far this tax season is down from last year, but refunds are up double digits, IRS data show. The average refund through Feb. 6 was $2,290, up nearly 11% from $2,065 at the same time in 2025 while total returns received fell 5.2%. The IRS noted refund numbers should rise further, too, as refunds claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are required by law to be held until Feb. 15. These “refund numbers do not ...

Signal vs. Noise: Markets, Misconceptions, and the Case for Optimization in 2026The central theme of 2025 was the disconnect between market sentiment and economic reality. The year began with widespread apprehension regarding aggressive tariffs and forecasts of a recession. Yet, it concluded with global equities at all-time highs and the U.S. economy maintaining consistent growth as the anticipated economic contraction failed to materialize.The fourth quarter reflected this broad dynamic. Markets focused on ...

Core Insights - The FTSE 100 has shown strong performance in 2026, rising 7.69% year-to-date and 22.75% over the past year, outperforming the S&P 500, which is down 0.24% year-to-date but up 12.16% over the past year [1][10] Market Trends - Rising geopolitical tensions and U.S. market volatility related to AI concerns have led investors to reassess their U.S. exposure and shift away from American securities [2][3] - The "AI scare" has heightened investor anxiety, particularly affecting the S&P 500 due to its heavy concentration in the information technology sector, prompting a rotation away from U.S. equities [3] Sector Performance - The FTSE 100 benefits from a heavier weighting in banks and mining stocks, with limited exposure to big tech and AI-driven companies, contributing to its outperformance compared to the S&P 500 [4] - U.K. large caps are trading at approximately a 40% valuation discount relative to U.S. equities, with U.K. banks showing compelling valuations compared to U.S. peers [5] Economic Indicators - The S&P Global U.K. Composite PMI rose to 53.9 in February, indicating continued economic momentum, marking the strongest level since April 2024 [6] - U.K. retail sales saw a 4.5% year-over-year increase in January, the strongest annual gain in almost four years [7] - The U.K. recorded a £30.4 billion ($40.9 billion) budget surplus in January 2026, a significant improvement from the previous year [8] Inflation and Monetary Policy - U.K. inflation eased to 3.0% in January, the lowest since March 2025, raising expectations for a potential interest rate cut by the Bank of England [9][10] - Following the inflation data, market expectations for a March rate cut by the Bank of England increased to nearly 90% [10][11] Investment Opportunities - Investors can consider U.K. ETFs such as iShares MSCI United Kingdom ETF (EWU) and Franklin FTSE United Kingdom ETF (FLGB) for increased exposure to the U.K. market [12] - Other diversified ETFs with significant U.K. exposure include iShares MSCI Europe Small-Cap ETF (IEUS) and iShares Core MSCI Europe ETF (IEUR) [13]

Core Viewpoint - ING Groep Inc. has shown significant stock performance, with a 72.51% increase over the past year, leading to optimism among long-term shareholders, while concerns about potential overvaluation arise from the price-to-earnings (P/E) ratio analysis [1]. Group 1: Stock Performance - The current trading price of ING Groep Inc. is $29.59, reflecting a 1.91% increase in the current session [1]. - Over the past month, the stock has increased by 3.34% [1]. - The stock has experienced a substantial increase of 72.51% over the past year [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS) [2]. - A higher P/E ratio may indicate that investors expect better future performance, potentially suggesting overvaluation, but it can also reflect investor confidence in future earnings and dividends [2]. - ING Groep has a lower P/E ratio compared to the aggregate P/E of 15.82 for the Banks industry, which may suggest that the stock is undervalued despite the potential for underperformance relative to peers [3].

Core Insights - Bridgewater Bancshares, Inc. (BWB) operates in the banking sector, providing a range of financial services including commercial real estate loans, commercial loans, and deposit products [1] Performance Overview - Over the past 30 days, BWB has experienced a modest gain of approximately 0.78%, reflecting investor confidence and positive market sentiment [2][6] - Despite a recent decline of 2.63% over the last 10 days, this dip may present a strategic buying opportunity for investors [2] Growth Potential - BWB's stock price has significant growth potential, with an estimated increase of 21.89%, indicating that the stock is currently undervalued [3][6] - Analysts have set a target price of $23.50 for BWB, suggesting further room for appreciation in the stock [5] Financial Health - The company has a robust financial health, evidenced by a Piotroski Score of 8, which indicates strong financials, efficient operations, and a solid balance sheet [4][6]

Credicorp Ltd (NYSE:BAP) is one of the best emerging markets stocks to buy right now. On February 12, Credicorp Ltd (NYSE:BAP) delivered fourth-quarter and full-year 2025 results. Fourth quarter net profit totaled $468.8 million, translating to earnings per share of $5.88. Credicorp Ltd. (BAP) Reports Strong Earnings and Loan Growth Outlook The company generated $2.18 billion in revenue, which dropped to $1.8 billion on accounting for interest expenses. Total profit for the full year totaled $1.94 billio ...