Robin Energy stock surges on strong LPG vessel charter rates

Investing.com -- 2026 will likely be another difficult year for US homebuilders as weak demand drivers, rising supply and expensive valuations will keep pressure on earnings after the sector lagged the S&P 500 in 2025.

JPMorgan analysts have a cautious stance on the group downgrading Lennar and Century Communities, though they upgraded Toll Brothers.

The builders underperformed through most of 2025 as affordability stayed near 30-year lows, mortgage rates remained restrictive for buyers and inventory levels increased.

The group’s 2% drop this year compared with a 16% gain in the S&P was due to soft orders, shrinking margins and falling earnings. While the sector saw brief rallies tied to shifting rate expectations, demand failed to improve meaningfully because consumer confidence remained depressed.

JPMorgan expects key demand drivers to stay weak next year, forecasting little to no job growth through the first half of 2026.

The 10-year Treasury yield will rise to 4.35% by the end of 2026 from about 4.05% which is now. It will limit the scope for mortgage rate relief.

JPM said affordability remains severely stretched and expects only minimal volume growth for builders, likely at the cost of further margin pressure.

Supply has stabilized in recent months but sits well below historical norms, and JPMorgan expects an “unlock” in the mortgage market to gradually push inventory higher.

The share of homeowners with sub-4% mortgage rates has been falling steadily as the market turns over, a trend the bank believes will release more existing homes into the market in 2026. Builder spec inventories also remain elevated at several large companies.

Brokerage expects builder orders and closings to remain weak, with downside risk to its forecasts for 8% order growth and 3% closing growth next year.

It also sees potential pressure on its gross margin estimate of 20.7%, which already marks another year of contraction. JPMorgan forecasts only 3% EPS growth across its coverage in 2026 and said investors may remain cautious until there is more clarity on the earnings trough.

Valuations remain expensive relative to the bank’s expectations for fundamentals in 2026. The group trades at about 11.8 times JPMorgan’s 2026 earnings estimate compared with a mid-cycle range of 8 to 9.

JPMorgan upgraded Toll Brothers to overweight from neutral, citing a cheaper valuation than peers and expectations for above-average margins and returns through 2027. It raised price target to $161 from $138.

Brokergae kept PulteGroup at overweight and lifted its target to $149 from $136.

Lennar was cut to underweight from neutral, with JPMorgan flagging weaker margins, lower returns and a valuation it sees as stretched relative to peers. The bank trimmed its price target to $115 from $118. It maintained its underweight on D.R. Horton and raised the target to $136 from $130.

Century Communities, which is a smaller builder was downgraded to underweight from neutral, with the bank cutting its target to $56 from $62 on expectations of below-average margins and returns.

JPM kept its underweight on LGI Homes and held its target at $40. Taylor Morrison remained the lone overweight among small caps.

Investing.com -- JPMorgan expects 2026 to mark a reset for payments and fintech stocks after what it calls the sector’s worst year in 15 years, excluding the COVID shock. 

In a note, the bank says it is “happy to flush 2025,” arguing that slower growth and fears of “commoditization and uncertain ROI” weighed heavily on sentiment. 

For 2026, JPMorgan says it is “going back to basics,” favouring companies with pricing power, strong incremental margins and solid front-book momentum.

According to analyst Tien-tsin Huang, the names that score highest under this framework include Visa, Toast, CPAY and XYZ, while the firm plans to “steer clear of turnarounds” such as FISV and PayPal. 

Both are downgraded to Neutral, with JPMorgan saying it is “too late to sell and too early to buy.”

Visa is JPMorgan’s “top overall pick,” with the firm noting that the company “checks all the boxes” for its preferred setup.

 It highlights Visa’s “reasonable FY26 guidance,” upside from tokenisation pricing and the idea that tokenisation is “foundational to agentic commerce,” potentially boosting sentiment around Visa’s role in AI-enabled payments. 

Despite this, the firm notes that Visa shares trade near a “10-year valuation floor relative to S&P 500.”

Toast also earns an upgrade to Overweight. “We’ve been eagerly waiting for the right time to take a seat at the Toast table,” JPMorgan writes, citing the stock’s 6% year-to-date decline despite estimates rising 27%. 

The bank believes Toast can sustain “top decile growth” as a “bonafide software-led payments leader” and points to its Rule of 54% for 2026.

JPMorgan also flags two thematic wild cards. These are durable upside in lending for names like XYZ, CHYM and KLAR, and potential AI-driven optimism from agentic commerce,  best played, it argues, through Mastercard and Visa.

Investing.com -- Vivakor Inc (NASDAQ:VIVK) stock gained 2% on Thursday after the energy services company announced its first international fuel transaction agreement for the Mexican market.

The deal, executed through the company’s Vivakor Supply & Trading (VST) platform, represents Vivakor’s initial entry into cross-border refined product markets. This expansion moves the company beyond its existing domestic crude oil and LPG operations into international territory.

"This agreement for a fuel transaction into Mexico is a major milestone for Vivakor Supply & Trading and a strong validation of our enhanced compliance and importation structure," said James Ballengee, Vivakor’s Chairman and Chief Executive Officer.

The company indicated that revenue from the transaction will be recognized based on VST’s role as an intermediary in the supply chain once the deal is executed. The actual revenue will depend on market conditions, transaction structure, and VST’s operational role within the process.

Vivakor described the move as part of its broader international growth strategy, which leverages the company’s integrated midstream infrastructure and newly strengthened regulatory processes. The company has implemented specialized trading capabilities designed to ensure compliant and auditable international operations.

The Nasdaq-listed firm provides energy transportation, storage, reuse, and remediation services across the energy sector. With this new agreement, Vivakor aims to position itself for further expansion throughout North America’s energy supply chain.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- U.S. stocks edged higher Thursday, as investors digested the latest labor market data ahead of next week’s Federal Reserve policy-setting meeting.

At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average traded 95 points, or 0.2%, higher, the S&P 500 gained 8 points, or 0.1%, and the NASDAQ Composite climbed 18 points, or 0.1%.

Weekly jobless claims decline

The number of Americans applying for first-time unemployment benefits declined to a three-year low last week.

Seasonally-adjusted initial jobless claims came in at 191,000 in the week ending on November 29, according to Labor Department data. It was a decrease of 27,000 from an upwardly-revised level of 218,000 in the prior week, and the lowest mark since September 2022.

Thursday’s numbers come as investors are widely expecting the Federal Reserve to slash interest rates at its upcoming monetary policy meeting ending on December 10 in a bid to support a weakening labor market. Recent data has appeared to indicate that while layoffs and firings have remained low, demand for Americans looking for work has stayed muted.

Although there has been a relative dearth of more comprehensive official employment data due to a record-long federal government shutdown, the Fed argued at meetings in October and September that there is enough evidence of a slowing in the job market to warrant an easing in borrowing costs.

Adding to the dovish sentiment is growing speculation over the next Fed leadership. Reports that the Trump administration abruptly cancelled interviews with other Fed chair candidates have strengthened the view that Kevin Hassett -- widely perceived as more dovish than current chair Jerome Powell -- could take the helm in 2026.

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Salesforce lifts 2026 guidance

In the corporate sector, Salesforce (NYSE:CRM) shares rose after the software company lifted its fiscal 2026 revenue and adjusted income guidance.

Underpinning the upbeat outlook were projections for strong growth in demand for the group’s AI-enhanced agent platform, especially among its enterprise clients.

Five Below (NASDAQ:FIVE) stock also climbed after the value retailer reported third-quarter earnings that significantly beat analyst expectations, driven by robust comparable sales growth and successful store expansion.

By contrast, Snowflake (NYSE:SNOW) stock dropped sharply after the cloud-based data storage stock provided a slightly disappointing outlook for its product revenue growth for the January quarter.

Elsewhere, Meta Platforms (NASDAQ:META) will be in the spotlight after Brussels opened a new antitrust investigation into the tech giant over its rollout of artificial intelligence features in WhatsApp, the European Commission said on Thursday, reflecting rising scrutiny of Big Tech’s use of generative AI.

Bloomberg News also reported that Meta is expected to make up to 30% budget cuts for its Metaverse initiative.

Crude edges higher

Oil prices rose after more strikes on Russian oil infrastructure raised threats to global supply, adding to the lack of progress in diplomatic efforts to end the war in Ukraine.

Brent futures climbed 0.3% to $62.83 a barrel, and U.S. West Texas Intermediate crude futures advanced 0.3% to $59.15 a barrel.

A Reuters report on Wednesday, citing sources, said that Ukrainian forces struck the Druzhba pipeline in Russia’s central Tambov region, reviving concerns over potential disruptions to Russian oil exports.

At the same time, high-level peace talks between U.S. and Russian officials concluded without any breakthrough earlier this week.

Ayushman Ojha contributed to this article

Investing.com -- European building and construction stocks present compelling investment opportunities for 2026, with several companies positioned for significant growth according to Jefferies analysts.

Their latest research highlights potential catalysts across the sector, from pricing power to market recovery and strategic capital allocation.

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Heidelberg (Buy, Price Target €300)

Jefferies analysts see Heidelberg as undervalued at 13x 2026 PE ratio, with multiple growth drivers ahead. Price increases across Europe are expected to drive near-term upgrades, while potential industry consolidation could maintain strong pricing momentum.

The company is well-positioned to benefit from European market recovery through 2026, with additional cost savings amplifying regional leverage.

Analysts highlight that strategic capital allocation through M&A and share buybacks should provide further upside potential.

Heidelberg Materials has also received several analyst upgrades, including from Barclays to Overweight and from both UBS and Goldman Sachs to Buy, with the firms noting factors such as carbon pricing benefits and structural tailwinds.

Saint-Gobain (Buy, Price Target €144.5)

With a price target suggesting over 65% upside potential, Saint-Gobain offers a compelling risk/reward profile according to Jefferies. The company trades at 11.8x 2026 PE, approximately 50% lower than sector peers.

Analysts identify several catalysts for 2026, including reassurance on European growth, improved US profitability, and emerging market expansion opportunities.

However, they suggest a return to meaningful M&A activity could be the most significant trigger to remind investors of the company’s structural transformation.

Saint Gobain also saw BofA Securities resume coverage on its stock with a Buy rating and a price target of EUR105.00.

Persimmon (Buy, Price Target 1815p)

Jefferies names Persimmon as their top pick among UK housebuilders. The company’s northern-focused land bank and continued momentum in outlet openings are expected to drive growth into 2026.

Analysts highlight that positive price and margin mix from premium brand offerings should differentiate Persimmon from competitors. Progress through limited building safety provisions could enable increased capital returns. Trading at 1.1x P/NTAV while forecasted to achieve over 13% ROE in 2026, analysts see significant value.

In recent developments, Persimmon PLC reported positive sales growth and a substantial increase in forward sales for its third quarter of 2025. The company also received a rating upgrade to Outperform from RBC Capital, which noted its success in opening new construction sites.

Geberit (Buy, Price Target CHF732)

Despite commanding the sector’s highest valuation at 22.1x 2026E EV/EBITDA, Jefferies believes Geberit’s fundamentals justify the premium. The company’s two largest markets, Germany and Switzerland (approximately 40% of sales), show clear catalysts for renovation growth.

Analysts suggest consensus estimates may underestimate the disproportionate margin benefits these markets could deliver, along with potential volume boosts from inventory restocking ahead of market recovery.

JPMorgan upgraded its rating on Geberit AG to Neutral from Underweight, citing the company’s strong performance and its recently raised like-for-like growth expectation of 4.5%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.