Five AI Value Stocks for Investors to Consider — Barrons.com

Dow Jones Newswires

Charter Communications

Brookfield Renewable Partners LP

-1.12%

Al Root

With Tesla and Palantir trading at triple-digit price-to-earnings ratios, value investors might feel left out of the AI trade. But there are value AI stocks, too.

Value stocks typically trade at lower-than-average P/E ratios and operate in mature industries. They are the kinds of stocks Warren Buffett gravitates toward. Growth stocks tend to be more exciting, with big growth rates — and sometimes big hype — but they come with outsized valuations.

Take the most expensive and cheapest stocks in the S&P 500. Tesla trades at about 210 times its estimated earnings over the next 12 months. For shareholders, its fortunes are not tied to its legacy electric-vehicle business, but to all the potential earnings from AI-trained robotaxis and robots. That makes it a growth stock. On the other end, Charter Communications trades for less than five times earnings as investors weigh how to value a declining cable business. That makes it a value stock.

Most AI trades fall squarely in the growth camp. But not all. "AI is a value story," wrote Krishna Chintalapalli, a portfolio manager at Parnassus Investments, recently. "Value companies can improve their profitability and margin profile using the productivity gains from AI, creating compelling long-term opportunities beyond the typical growth narrative."

While some investors fixate on Nvidia chips or large language models such as Alphabet's Gemini, Chintalapalli is focused on utilities, backup-power providers, and real estate — the physical infrastructure needed to support the AI boom.

Brookfield Renewable, one of the largest renewable-power generators with a portfolio of hydroelectric, wind, nuclear, and solar assets, is one of his AI data-center power plays. The company has agreed to provide power for Microsoft and Alphabet data centers, and its stock yields almost 4%.

Diesel-engine maker Cummins also builds backup generators. So does heavy-machinery maker Caterpillar, along with backup-power specialist Generac. "There is almost a 1:1 correlation, where growth in data centers leads to growth in demand for backup power," Chintalapalli says.

He is also looking for places where the digital world intersects with the physical one. "Legacy industries such as agriculture are...leveraging massive data moats to drive margin expansion and solve real-world problems," he says.

That led him to Deere, which he has held in a portfolio since 2022.

Deere leverages AI to help farmers cut costs — by reducing labor required to operate equipment, minimizing wasted crop chemicals, and applying fertilizer more precisely where soil nutrients are deficient. Improved planting accuracy can also lead to higher yields, boosting farmers' revenue.

The five AI value ideas trade for an average of 15 times estimated 2026 earnings before interest, taxes, depreciation, and amortization, or Ebitda. That's roughly in line with the multiple of nonfinancial companies in the S&P 500.

That is higher than Charter's roughly 5.5 times multiple, but far below Tesla's 89 times multiple, making the group a reasonable starting point for investors looking to diversify beyond the market's most typical AI names.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Disney, Micron Tech among market cap stock movers on Monday

Investing.com

Comstock Resources

-4.14%

Advanced Micro Devices

Monday’s market has witnessed significant movements across various stocks, driven by a mix of corporate news and market dynamics. Today, companies like Disney and Micron Tech are making headlines with their stock performance. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers

Intel Corp (INTC): +7.13%
Micron Tech (MU): +5.96%
Adv Micro Device (AMD): +5.46%
Caterpillar (CAT): +4.49%
Cisco Sys Inc (CSCO): +3.21%
Wal-mart Stores (WMT): +3.8%
IBM (IBM): +2.68%
Lam Research Corp (LRCX); Lam Research and CEA-Leti partner to develop specialty tech devices: +2.54%
Visa Inc (V): +2.9%
Disney (DIS): -7.21%

Large-Cap Stock Movers

SanDisk Corp-Exch (SNDK): +15.67%
Regencell Bioscience Holdings (RGC): +12.0%
Rambus Inc (RMBS): +11.79%
Lumentum Holdings Inc (LITE): +11.3%
Western Digital (WDC): +9.51%
Carnival Corp-Exch (CCL): +8.26%
TTM Technologies (TTMI): +7.24%
GameStop Corp (GME): +8.0%
Robinhood Markets (HOOD): -9.47%
Xpeng Inc (XPEV): -7.95%

Mid-Cap Stock Movers

Phoenix Asia Holdings (PHOE): -85.16%
Twist Bioscience Corporation (TWST); Twist Bioscience stock rises 5% on revenue beat, raised guidance: +10.66%
Semtech Corp (SMTC): +10.63%
TECO Energy Inc-Exch (TE): +10.32%
Saia (SAIA): +9.14%
Applied Opt (AAOI): +8.92%
Comstock Resources Inc (CRK): -8.71%
York Space Systems Inc (YSS): -11.15%
ETHA (ETHA): -12.1%
FETH ETH (FETH): -11.75%

Small-Cap Stock Movers

Aquestive Therapeutics (AQST); FDA issues complete response letter for Aquestive’s anaphylaxis drug: +45.25%
Anbio Biotechnology (NNNN): +35.33%
Peakstone Realty Trust (PKST): +33.23%
VenHub Global (VHUB); VenHub Global appoints Ian Rasmussen as EVP of global expansion: +29.75%
Opera Ltd (OPRA); Opera expects to exceed Q4 guidance on revenue and earnings: +15.86%
AXT Inc (AXTI): +16.56%
Tocagen Inc (FBRX): +15.77%
Adlai Nortye ADR (ANL): -14.66%
ETHU (ETHU): -24.65%
Yext Inc (YEXT); Yext CEO withdraws $9 per share buyout proposal, company plans tender offer: -23.39%

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U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.36%

Investing.com

Charter Communications

+5.38%

Deckers Outdoor

-0.96%

Investing.com – U.S. stocks were lower after the close on Friday, as losses in the Basic Materials, Technology and Industrials sectors led shares lower.

At the close in NYSE, the Dow Jones Industrial Average fell 0.36%, while the S&P 500 index lost 0.43%, and the NASDAQ Composite index declined 0.94%.

The best performers of the session on the Dow Jones Industrial Average were Verizon Communications Inc (NYSE:VZ), which rose 11.83% or 4.71 points to trade at 44.52 at the close. Meanwhile, Chevron Corp (NYSE:CVX) added 3.34% or 5.71 points to end at 176.90 and Coca-Cola Co (NYSE:KO) was up 1.88% or 1.38 points to 74.81 in late trade.

The worst performers of the session were Visa Inc Class A (NYSE:V), which fell 2.99% or 9.93 points to trade at 321.87 at the close. 3M Company (NYSE:MMM) declined 2.06% or 3.22 points to end at 153.16 and Unitedhealth Group (NYSE:UNH) was down 1.83% or 5.36 points to 286.93.

The top performers on the S&P 500 were Deckers Outdoor Corporation (NYSE:DECK) which rose 19.46% to 119.34, Verizon Communications Inc (NYSE:VZ) which was up 11.83% to settle at 44.52 and Charter Communications Inc (NASDAQ:CHTR) which gained 7.62% to close at 206.12.

The worst performers were KLA Corporation (NASDAQ:KLAC) which was down 15.24% to 1,427.94 in late trade, Newmont Goldcorp Corp (NYSE:NEM) which lost 11.49% to settle at 112.35 and Western Digital Corporation (NASDAQ:WDC) which was down 10.12% to 250.23 at the close.

The top performers on the NASDAQ Composite were eLong Power Holding Ltd (NASDAQ:ELPW) which rose 3,141.11% to 13.94, Phoenix Asia Holdings Ltd (NASDAQ:PHOE) which was up 997.44% to settle at 133.12 and Innovation Beverage Group Ltd (NASDAQ:IBG) which gained 456.72% to close at 3.73.

The worst performers were Kaixin Auto Holdings (NASDAQ:KXIN) which was down 88.15% to 1.20 in late trade, Brand Engagement Network Inc (NASDAQ:BNAI) which lost 52.97% to settle at 24.75 and Twin Hospitality Group Inc (NASDAQ:TWNP) which was down 43.38% to 0.15 at the close.

Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1645 to 1085 and 95 ended unchanged; on the Nasdaq Stock Exchange, 2198 fell and 1216 advanced, while 143 ended unchanged.

Shares in Chevron Corp (NYSE:CVX) rose to 3-years highs; gaining 3.34% or 5.71 to 176.90. Shares in Coca-Cola Co (NYSE:KO) rose to all time highs; gaining 1.88% or 1.38 to 74.81. Shares in Kaixin Auto Holdings (NASDAQ:KXIN) fell to all time lows; losing 88.15% or 8.93 to 1.20. Shares in Phoenix Asia Holdings Ltd (NASDAQ:PHOE) rose to all time highs; rising 997.44% or 120.99 to 133.12. Shares in Twin Hospitality Group Inc (NASDAQ:TWNP) fell to all time lows; falling 43.38% or 0.12 to 0.15.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 3.26% to 17.43.

Gold Futures for April delivery was down 8.61% or 460.84 to $4,893.96 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in March rose 0.50% or 0.33 to hit $65.75 a barrel, while the April Brent oil contract rose 0.40% or 0.28 to trade at $69.87 a barrel.

EUR/USD was down 0.99% to 1.19, while USD/JPY rose 1.09% to 154.78.

The US Dollar Index Futures was up 0.88% at 96.98.

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Tesla and AMD among market cap stock movers on Friday

Investing.com

Anbio Biotechnology Inc.

-15.39%

Thermo Fisher Scientific

-0.85%

Two Harbors Investment Corp.

Friday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Tesla (TSLA) and Advanced Micro Devices ( are rallying, while companies like KLA-Tencor (KLAC) are facing setbacks. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers ($200 billion+ market cap)

KLA-Tencor (KLAC) -11.29%
Advanced Micro Devices (AMD); AMD (AMD) Quickly Falls 5.1% -4.03%
Palantir Technologies (PLTR) -2.07%
Lam Research (LRCX) -2.58%
American Express (AXP) -2.37%
Thermo Fisher Scientific (TMO) -1.97%
Tesla (TSLA); Elon Musk’s SpaceX Is Said To Consider Merger With Tesla Or xAI +3.95%
Metropcs Communications (TMUS) +3.55%

Large-Cap Stock Movers ($10-$200 billion market cap)

Unity Software (U) -21.59%
Rocket Companies (RKT) -14.83%
AngloGold Ashanti (AU) -9.37%
Coeur d’Alene Mines (CDE) -8.59%
Yandex (NBIS) -8.75%
Hecla Mining (HL) -7.73%
Charter Communications (CHTR); Charter shares rise over 6% as earnings beat offsets revenue miss +10.14%
SanDisk Corp-Exch (SNDK) +12.9%
Deckers Outdoor (DECK) +14.83%
Lumentum Holdings (LITE) +5.86%

Mid-Cap Stock Movers ($2-$10 billion market cap)

Pennymac Financial Services (PFSI) -36.25%
IES Holdings (IESC) -15.19%
Cavco Industries (CVCO); Cavco Industries shares slip 4% as Q3 earnings, revenue fall short of estimates -16.32%
Sanmina-SCI (SANM) -10.47%
Corcept Therapeutics (CORT) -12.64%
Mudrick Capital (HYMC) -8.11%
TFS Financial (TFSL); TFS Financial shares fall as first quarter earnings miss estimates -7.49%
Applied Optoelectronics (AAOI) +10.21%
Robert Half International (RHI); Robert Half shares surge after beating Q4 expectations +22.02%

Small-Cap Stock Movers ($300 million-$2 billion market cap)

TechCreate (TCGL) +155.33%
Lexicon Pharmaceuticals (LXRX); Lexicon Pharmaceuticals launches public offering of common stock -21.18%
Junee (SUPX); SuperX begins production at Japan supply center, secures orders -20.23%
Beazer Homes USA (BZH) -14.21%
Gores Holdings IV (UWMC) -14.12%
Two Harbors Investment (TWO) -14.3%
Red Rock Acquisition (NAMM) -14.53%
Oxford Lane Capital (OXLC) -14.02%
Anbio Biotechnology (NNNN) -11.11%
AXT (AXTI) +18.19%

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CAT Q4 Deep Dive: Order Momentum Drives Record Backlog Amid Tariff Pressures

Stock Story

Caterpillar

-1.57%

Construction equipment company Caterpillar reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 18% year on year to $19.13 billion. Its non-GAAP profit of $5.16 per share was 9.5% above analysts’ consensus estimates.

Caterpillar (CAT) Q4 CY2025 Highlights:

Revenue: $19.13 billion vs analyst estimates of $17.75 billion (18% year-on-year growth, 7.8% beat)
Adjusted EPS: $5.16 vs analyst estimates of $4.71 (9.5% beat)
Adjusted EBITDA: $3.26 billion vs analyst estimates of $3.40 billion (17% margin, 4.1% miss)
Operating Margin: 13.9%, down from 18% in the same quarter last year
Organic Revenue rose 16.9% year on year (beat)
Market Capitalization: $311.3 billion

StockStory’s Take

Caterpillar’s fourth quarter results drew a positive response from the market, as the company reported better-than-expected revenue and adjusted earnings per share. Management credited robust volume growth across its main business segments, particularly in power and energy, for the strong performance. CEO Joe Creed highlighted record sales in power generation and oil and gas, with demand for large generators and turbines tied to data center expansion as a key factor. Management also noted that backlog reached an all-time high, driven by strong ordering activity across construction, resource, and energy markets.

Looking ahead, Caterpillar’s outlook is shaped by expectations for continued sales growth across all segments, underpinned by a record backlog and healthy end-market demand. Management believes that ongoing investment in capacity expansion, digital technologies, and service offerings will be critical for maintaining momentum. However, CFO Andrew Bonfield cautioned that tariff-related manufacturing costs are set to increase further in the coming year, putting pressure on operating margins. The company is prioritizing operational efficiency and targeted price realization to offset these headwinds while executing on its refreshed growth strategy.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to unexpected strength in power and energy volumes, while ongoing tariff headwinds and higher compensation expenses weighed on operating margins.

Power and Energy Outperformance: Unanticipated growth in power generation and oil and gas drove Caterpillar’s quarterly results, with notable demand for large generator sets and turbines especially for data center applications.
Construction Industries Resilience: Sales to users in construction industries exceeded expectations, boosted by strong U.S. nonresidential and residential activity, increased dealer rental activity, and successful merchandising programs.
Resource Industries Mixed Trends: While mining activity remained subdued due to lower coal prices, there was strong order momentum in heavy construction and Latin American mining, particularly in copper.
Tariff Headwinds Impact Margins: Manufacturing cost increases from tariffs significantly reduced segment margins, especially in Construction and Resource Industries, despite management’s mitigation efforts and selective pricing actions.
Services and Digital Progress: The company expanded its connected asset base and digital offerings, including condition monitoring and e-commerce, aiming to grow services revenue and position itself for long-term growth.

Drivers of Future Performance

Caterpillar expects growth to continue, supported by strong backlog and capacity expansion, but faces margin pressure from rising tariff costs and higher investment needs.

Tariff and Cost Management: Management expects a further increase in tariff-related manufacturing costs, projecting an $800 million rise, which will require ongoing cost controls and selective price increases to maintain operating profit margins.
Capacity Expansion and Supply Constraints: The ability to bring new production capacity online—especially for large engines and turbines—will determine if Caterpillar can meet robust demand, particularly from data center and energy infrastructure customers.
Services and Digital Revenue Growth: Expansion of digital asset monitoring, service offerings, and the connected equipment base is expected to drive higher recurring revenue, helping to offset cyclicality in equipment sales and support long-term profitability.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will focus on (1) the pace at which Caterpillar can expand production capacity to meet growing demand, especially in power and energy; (2) the company’s ability to mitigate rising tariff and cost pressures through operational efficiencies and pricing; and (3) progress in scaling digital and service revenue streams. Execution on strategic investments and backlog conversion will be important indicators for sustained outperformance.

Caterpillar currently trades at $664.62, up from $643.28 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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U.S. stocks mixed at close of trade; Dow Jones Industrial Average up 0.11%

Investing.com

Investing.com – U.S. stocks were mixed after the close on Thursday, as gains in the Telecoms, Financials and Oil & Gas sectors led shares higher while losses in the Consumer Goods, Technology and Basic Materials sectors led shares lower.

At the close in NYSE, the Dow Jones Industrial Average rose 0.11%, while the S&P 500 index declined 0.13%, and the NASDAQ Composite index fell 0.72%.

The best performers of the session on the Dow Jones Industrial Average were International Business Machines (NYSE:IBM), which rose 5.13% or 15.08 points to trade at 309.24 at the close. Meanwhile, Honeywell International Inc (NASDAQ:HON) added 4.89% or 10.60 points to end at 227.24 and Caterpillar Inc (NYSE:CAT) was up 3.41% or 21.96 points to 665.24 in late trade.

The worst performers of the session were Microsoft Corporation (NASDAQ:MSFT), which fell 9.99% or 48.13 points to trade at 433.50 at the close. Salesforce Inc (NYSE:CRM) declined 6.09% or 13.88 points to end at 214.08 and Boeing Co (NYSE:BA) was down 3.13% or 7.55 points to 234.04.

The top performers on the S&P 500 were Southwest Airlines Company (NYSE:LUV) which rose 18.70% to 48.50, Royal Caribbean Cruises Ltd (NYSE:RCL) which was up 18.52% to settle at 345.60 and Meta Platforms Inc (NASDAQ:META) which gained 10.40% to close at 738.28.

The worst performers were Las Vegas Sands Corp (NYSE:LVS) which was down 13.96% to 52.71 in late trade, United Rentals Inc (NYSE:URI) which lost 12.86% to settle at 787.04 and First Solar Inc (NASDAQ:FSLR) which was down 10.15% to 224.10 at the close.

The top performers on the NASDAQ Composite were Republic Power Group Ltd (NASDAQ:RPGL) which rose 173.86% to 0.88, Adlai Nortye Ltd ADR (NASDAQ:ANL) which was up 88.18% to settle at 6.53 and Linkers Industries Ltd (NASDAQ:LNKS) which gained 71.50% to close at 1.32.

The worst performers were Quince Therapeutics Inc (NASDAQ:QNCX) which was down 91.51% to 0.27 in late trade, Tian Ruixiang Holdings Ltd (NASDAQ:TIRX) which lost 91.06% to settle at 0.12 and Fractyl Health Inc (NASDAQ:GUTS) which was down 68.04% to 0.58 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1578 to 1164 and 91 ended unchanged; on the Nasdaq Stock Exchange, 1941 fell and 1438 advanced, while 166 ended unchanged.

Shares in Southwest Airlines Company (NYSE:LUV) rose to 3-years highs; up 18.70% or 7.64 to 48.50. Shares in Salesforce Inc (NYSE:CRM) fell to 52-week lows; down 6.09% or 13.88 to 214.08. Shares in Caterpillar Inc (NYSE:CAT) rose to all time highs; rising 3.41% or 21.96 to 665.24. Shares in Quince Therapeutics Inc (NASDAQ:QNCX) fell to all time lows; down 91.51% or 2.91 to 0.27. Shares in Adlai Nortye Ltd ADR (NASDAQ:ANL) rose to 52-week highs; rising 88.18% or 3.06 to 6.53. Shares in Tian Ruixiang Holdings Ltd (NASDAQ:TIRX) fell to all time lows; down 91.06% or 1.20 to 0.12. Shares in Linkers Industries Ltd (NASDAQ:LNKS) rose to 52-week highs; rising 71.50% or 0.55 to 1.32. Shares in Fractyl Health Inc (NASDAQ:GUTS) fell to all time lows; falling 68.04% or 1.25 to 0.58.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 3.24% to 16.88.

Gold Futures for April delivery was up 1.79% or 95.71 to $5,435.91 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in March rose 3.34% or 2.11 to hit $65.32 a barrel, while the April Brent oil contract rose 3.12% or 2.10 to trade at $69.47 a barrel.

EUR/USD was unchanged 0.13% to 1.20, while USD/JPY fell 0.19% to 153.14.

The US Dollar Index Futures was down 0.22% at 96.06.

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A Weak Dollar Could Spell Trouble for Trump, and the Next Fed Chair — Barrons.com

Dow Jones Newswires

Karishma Vanjani

The weakening dollar could turn out to be a problem for both Donald Trump and the Federal Reserve, even though the president told reporters in Iowa that the currency is "doing great."

Measured against a basket of six major currencies, the dollar is down 2.1% this month after a fall of over 9% last year. A further slide in its value threatens to create a high-inflation future, a problem for both the Republican Party and whoever wins the job as the next Fed chair.

Trump said Thursday he will reveal his choice of a nominee next week.

A weak dollar has always been part of the Trump agenda. "We have a big currency problem," Trump said in a 2024 interview with Bloomberg. "Nobody wants to buy our products because they're too expensive," he added. After he began his second term in 2025, he said, "I will never say I like a low currency...but you make a hell of a lot more money with a weaker dollar."

The logic goes that a weak dollar allows for faster economic growth and smaller trade deficits. Manufacturers such as Caterpillar that make more than half their sales overseas get more dollars when converting other currencies into the greenback. Companies like Nvidia and Micron Technology are in the same position.

But here's the challenge: If the dollar slides too much, then the U.S. runs the risk of effectively importing inflation. Everything the nation buys abroad, from electronics to vehicles, becomes more expensive. Americans imported $348.9 billion worth of goods in November, $56.8 billion more than the value of the goods sold abroad.

Tariffs create an incentive to produce goods domestically, but no one is suggesting that import totals will be anything less than enormous.

"Trump's disregard for the value of the currency could come back to bite him, blowing up his economic agenda and causing the Republicans to lose their majority in the House," wrote Ned Davis Research's chief macro strategist Joe Kalish.

Affordability is a vulnerability for the Republican party. The most recent polls show voters already have a less favorable view of the GOP as the midterm elections in November draw closer. At stake is control of both houses of Congress.

On Wednesday, Powell told reporters the Fed doesn't talk about the dollar, and that it is the Treasury Department "that has the job of oversight" over the currency. Ironically, though, it might be moves by the bank that could help defend the dollar if inflation becomes a more serious problem.

The December consumer price index showed inflation of 2.7%, well above the Fed's 2% target. Additional inflation, triggered by a continued slide in the dollar, could prevent the bank from cutting rates, as Trump wants it to, or even lead it to increase them. Higher interest rates increase the value of the dollar because foreign investors have to have the currency to buy assets such as Treasury debt.

"The new Fed Chair could be walking into a trap," Kalish wrote.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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