Ticker Reports for June 30th
Value vs Growth Ratio Hits Cycle Low—Top Value Picks to Buy
Today, one specific ratio could send value stocks flying next.
In a world where the most exciting stocks on the market have seen their valuations rise to stratospheric levels, other high-quality businesses have been left behind and forgotten during this rally.
Times like these offer investors some of the best opportunities to close the performance gap as long as they land on the right side of the equation. Today, that side suggests that value stocks will outperform.
By tracking the performance ratio between the iShares S&P 500 Value ETF (NYSEARCA: IVE) and the iShares S&P 500 Growth ETF (NYSEARCA: IVW), investors can see how the past couple of quarters have created a gap that can be exploited. Within this space, it is stocks like PepsiCo Inc. (NASDAQ: PEP), Berkshire Hathaway Inc. (NYSE: BRK.B), and even Coca-Cola Co. (NYSE: KO) that act as some of the best picks moving forward.
An Inevitable Rotation Swings in Favor of Pepsi Stock
Given that this ratio is now at a cyclical low, it is the law of the market that a catalyst down the line might shift things back into balance. Whether it's trade negotiations, geopolitical conflicts, or economic data within the United States, there is a high likelihood that an event will occur to shift the sentiment and capital rotation back to discounted value.
This is where Pepsi stock comes into play, as it not only trades at a low 72% of its 52-week high but also on a forward price-to-earnings (P/E) ratio of only 16.4x today, the lowest valuation multiple seen for the company since the onset of the COVID-19 pandemic.
Logic will argue that this business is doing much better than it was even before the pandemic, and today’s economic conditions are nowhere near what they were back then; lockdowns and uncertainty could surely justify such a discounted multiple for Pepsi, though the reasoning is lacking for it to go back to such a cheap multiple in today’s market.
This creates a massive opportunity for investors to start accumulating positions in Pepsi stock for the coming months and quarters, but it will be the value-to-growth ratio that ultimately tells them when this rotation begins. It looks like some of the “smart money” corner has already begun rotating ahead of this broader sentiment shift, according to institutional flows.
Those from UBS Asset Management have now built a stake worth up to $1.7 billion in Pepsi stock, which acts as a reiteration of this upcoming shift happening sooner rather than later, something investors must consider in their views.
Momentum and Upside Already in Berkshire Hathaway
Whenever anyone thinks of a value play, Berkshire Hathaway is always at the top of the list, which might explain why this holding company now trades at 90% of its 52-week high compared to many others in the value space. If sentiment is expected to change and rotate into value stocks, it’s logical to see this name lead the way first.
More than just momentum relative to its highs, investors can see that as far back as March 2025, analyst Kevin Heal from Argus placed a valuation target of up to $575 for Berkshire Hathaway stock. The fact that this view hasn’t changed since then says a lot about how Wall Street feels about this stock and its future, but that’s not all.
Compared to today’s prices, this valuation calls for not only a new 52-week high to be broken through but also up to 18% additional upside potential. Chances are that, when the rotation happens, there will be a lot more updates coming from other analysts expressing where they see the true value of Berkshire Hathaway heading.
Premium Investors Go for Coca-Cola
There are some in the market who would argue Pepsi stock is very cheap today for reasons that are yet to be known, and that’s a risk most aren’t willing to take. If that is the case, then the opposite view can be taken regarding premiums, and this is where Coca-Cola comes into play, with a steep 28.2x P/E valuation compared to the consumer staples sector's average of 19.6x.
However, some of the reasons why Coca-Cola is trading at 90% of its 52-week high should be the same ones that could lead Pepsi higher, so having both in a watchlist could yield great results with less volatility. A weakening dollar, a pending rotation into value, and momentum will all serve as bullish factors for these international consumer names.
In fact, it appears that investors from UBS Asset Management did their homework on both Pepsi and Coca-Cola, as they also built up a position of $2.2 billion in Coca-Cola as of the same dates when they established a position in Pepsi, indicating that this rotation is more than just a thesis.
Elon's BIGGEST warning yet?
Elon's BIGGEST warning yet?
Biotech Catalyst Alert: NKTR, CDTX & WGS Rallying With Big Gains
The biopharmaceuticals space is notorious for sudden, sharp rallies, and for precipitous sell-offs as well. The industry is crowded with names, many of which are tiny firms working toward developing a small number of drug candidates and lacking a means of achieving profitability until one or more of those products make it to market.
As such, there can be a revolving door of healthcare names for investors to watch, and the most talked-about companies are often ones with pending trial data or other major developments on the horizon.
Three such firms Nektar Therapeutics (NASDAQ: NKTR), Cidara Therapeutics Inc. (NASDAQ: CDTX), and GeneDx Holdings Corp. (NASDAQ: WGS) have recently experienced rallies that are likely to put them on healthcare investors' radar. What's more, these companies all have strong votes of confidence from bullish Wall Street analysts as well.
Rezpeg Phase 2b Trial Successes Send Nektar Shares Upward
Nektar develops immunotherapy drug candidates such as rezpegaldesleukin (Rezpeg), a candidate for the treatment of systemic lupus erythematosus and ulcerative colitis, among other conditions. Indeed, one of those other conditions, atopic dermatitis (eczema), has been most notable for Nektar in recent days.
With success on both primary and secondary goals in its recent Phase 2b trial and a Fast Track designation from the FDA, Rezpeg appears poised to help to address eczema for the roughly 10 million patients across the United States facing this condition. Shares rallied after Nektar's announcement of the latest trial results.
Nektar's latest impressive rally began on June 23, 2025, and sent shares more than tripling in value in the span of five trading days. However, it's important to note that the rally already showed signs of faltering in the same week in which it began. Besides that, Nektar's share price at the peak of the rally was just under $30 per share.
This is still dramatically lower than its all-time high of more than $1,500 per share from early 2018, and lower than the price of the stock for essentially all of its trading history up until the last two years. Nonetheless, six out of seven analysts view NKTR as a Buy, with upside potential of about 227% based on a consensus price target of $84.17.
Major Advance in Non-Vaccine Flu Preventative for Cidara
Cidara is known for innovative therapies such as rezafungin acetate, a treatment for invasive fungal infections, and drug-Fc conjugates, or drugs that use human antibody fragments. CDTX shares reached their highest level since spring 2021 in late June, when they climbed by almost 150% in about a week. The spike aligned with the company's positive phase 2b trial results for CD388, a non-vaccine for the prevention of seasonal influenza.
Investors have long seen CD388 as a key component of Cidara's pipeline, and this latest data, including a noteworthy 76% symptomatic influenza protection rate for 24 weeks for a single 450-milligram dose, indicates that a phase 3 trial is likely not far off. Should CD388 reach the market, it is likely a game-changer for the biopharma space.
CD388 could either aid traditional vaccines or supplant them as a once-per-season preventative for seasonal flu, with a massive potential market.
While analysts are widely bullish on CDTX (all nine rating the stock have assigned it a Buy), investors should note that the company also issued $250 million in new stock the same week as the CD388 announcement in a potentially dilutive move.
Promising Partnership and AAP Guidance, But Other Concerns Remain for GeneDx
GeneDx is known for its Centrellis platform, utilizing AI to conduct genomics-related diagnostics. Investors have had sky-high hopes for the company that have not necessarily come to pass. In fact, despite topping analyst predictions for first-quarter sales by about 10% and raising guidance to suggest at least 30% year-over-year (YOY) revenue gains for FY 2025, WGS shares plummeted by almost 50% around the start of May 2025.
In the last several days of June, the stock surged by nearly 40% to recapture some of that decline.
The latest rally coincided with GeneDx's announcement of a partnership with Galatea Bio to provide genetic testing for common diseases, including cardiovascular diseases and, eventually, hereditary cancers.
It also aligned with updated guidance from the American Academy of Pediatrics (AAP) recommending exome and genome sequencing as first-tier tests for children with intellectual disability and global developmental delay.
Both of these factors are likely to drive business for GeneDx.
Six out of eight analysts rate WGS a Buy, but investors should beware of its comparably high valuation, a recent and potentially concerning sequential volume decline, and the threat of competitors in the difficult genomic diagnostics space.
Silicon Valley Gold Rush
Silicon Valley Gold Rush
Buybacks Galore: Repurchases From the Oval Office to Olive Garden
Several notable stocks, associated with everything from President Trump to pasta dinners, are significantly boosting their buybacks. Together, these newly announced programs add over $10 billion in fresh repurchase capacity to the stock market. While the reasons vary, the message is clear: these companies are looking to reward shareholders and potentially reduce their outstanding shares.
Below, we break down which companies now have the financial firepower to make a major dent in their share count. All data used is as of the June 27 close unless otherwise indicated.
DJT Announces $400 Million Buyback After Huge Slide and Bitcoin Deal
First up is the baby of the Commander in Chief, Trump Media and Technology Group (NASDAQ: DJT). On June 23, the company announced a share buyback program worth $400 million. This is substantial, accounting for around 8.3% of its $4.8 billion market capitalization. The timing of this announcement isn’t overly surprising, given the recent performance of the stock. Shares of TMTG have gotten crushed in 2025, down approximately 49% this year. There is a chance that the company sees its shares as undervalued, which gives it a reason to repurchase stock.
This comes as the firm raised $2.5 billion, which it will use to fund the creation of a large Bitcoin (BTC) treasury. This will put the company’s liquid assets above $3 billion, as it had $759 million in cash and equivalents previously. However, this figure could change substantially in the future, based on the price of Bitcoin. Despite this influx of cash, TMTG remains a deeply money-losing operation. The company has generated under $4 million in revenues over the last 12 months, but had operating expenses north of $127 million.
JCI: $5 Billion in Buyback Spending Ahead?
Next up is Johnson Controls International (NYSE: JCI). The industrial company provides a variety of building products to customers around the world. This mainly includes heating, ventilation, and air conditioning (HVAC) systems, as well as fire protection and security solutions. On June 13, the company announced an increase to its share buyback authorization of $9 billion. This adds to the company’s remaining authorization, giving it $10.1 billion in share repurchase capacity. This number equates to a very large 14.6% of its approximately $69 billion market capitalization.
This announcement comes even as the stock ended June 27 at its all-time high closing price. This suggests that the company continues to be confident in its prospects going forward and doesn’t view its shares as overvalued. JCI recently spoke at the Bank of America’s 2025 Industrials, Transportation & Airlines Conference. They said they plan to return $5 billion worth of capital in the “fourth quarter”. This most likely refers to the firm’s fiscal Q4 2025, which ends on Sept. 30. This suggests the firm is looking to buy back $5 billion worth of shares by that date. Based on JCI’s current price, this could reduce its share count by around 7% over that period, providing a huge earnings per share tailwind.
DRI: Buybacks and Dividends Get a Boost as the Stock Outperforms in 2025
Last up is Darden Restaurants (NYSE: DRI). The company operates large chains like Olive Garden and LongHorn Steakhouse. In an industry that has performed rather well as a whole in 2025, Darden has more than held its own. Shares have provided a total return of approximately 17%, substantially beating out the less than 6% return of the S&P 500. Along with releasing its latest earnings on June 20, the company announced a $1 billion share buyback program. The new buyback program is moderate in size, equating to just under 4% of the stock’s over $25 billion market capitalization.
Over the last 12 months, the company spent $418 million on buybacks. This is somewhat below its five-year average of approximately $488 million in buyback spending over the past 12 months. Overall, these numbers suggest the firm could exhaust its buyback capacity in around two years. Darden also announced a sizable increase to its quarterly dividend of 7.1%. Its next $1.50 dividend will be payable on Aug. 1 to shareholders of record on July 10. This gives the stock a solid indicated dividend yield of around 2.8%. This is one of the highest figures among U.S. restaurant stocks.
Reduced Share Counts Could Boost Long-Term Shareholder Value
These substantial buyback announcements from DJT, Johnson Controls, and Darden Restaurants highlight a broader corporate trend of returning capital to shareholders, whether to offset stock declines, reinforce confidence, or enhance earnings metrics.
While the motivations differ, the end result is the same: reduced share counts and potentially stronger shareholder returns. Investors should watch not just the size of these buybacks, but how quickly and effectively each company executes them in the coming quarters.
Here's the last trade you should make before heading out for the weekend tomorrow.
Here's the last trade you should make before heading out for the weekend tomorrow.
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