NXP Semiconductors reported solid third-quarter earnings, exceeding analyst expectations. However, the company’s outlook for the fourth quarter reflects concerns about macroeconomic weakness, particularly in Europe and the Americas. This news sent the stock price down after-hours.
Russell Investments’ Chief Investment Strategist, Paul Eitelman, advises investors to maintain a strategic allocation to small-cap stocks despite the current economic uncertainty. While small-caps face challenges due to macroeconomic volatility, their attractive valuations and potential for outperformance make them a compelling long-term investment.
ManpowerGroup (MAN) faces a challenging operating environment due to ongoing macroeconomic uncertainty, leading to declining revenue and negative operating leverage. The company’s 1Q24 results missed expectations, and management has not seen a positive inflection point in temporary staffing demand. While the company is taking steps to improve efficiency and has a strong balance sheet, these factors are not enough to offset the near-term headwinds. As a result, I recommend a sell rating for MAN.
