Tariff Refunds Unlikely to Benefit Consumers, CFO Survey Reveals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy MCO?
Source: CNBC
- Tariff Refund Plans: According to the latest CNBC CFO Council quarterly survey, while 12 out of 25 CFOs plan to apply for tariff refunds, none intend to share that money with consumers, indicating that companies may retain these funds to offset costs.
- Refund Expectations: The survey reveals that 10 CFOs believe it could take a year or longer to receive repayments, with only three expecting refunds this year, reflecting a lack of confidence in the tariff refund process that could impact financial planning.
- Ongoing Legal Disputes: Despite the Supreme Court ruling parts of Trump's tariff agenda illegal, Trump announced a new global tariff rate of 10%, potentially increasing to 15%, which will continue to exert pressure on business costs and consumer prices.
- Legislative Challenges: Although several tariff refund bills have been introduced in Congress, analysts suggest that the likelihood of these measures passing remains remote, especially with the upcoming midterm elections highlighting the stark divisions between Democrats and Republicans on tariff issues.
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Analyst Views on MCO
Wall Street analysts forecast MCO stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 448.420
Low
526.00
Averages
586.50
High
660.00
Current: 448.420
Low
526.00
Averages
586.50
High
660.00
About MCO
Moody's Corporation is a global integrated risk assessment company. It is a global provider of research and insights; data and information, and decision solutions, which help companies make decisions. Its MA segment provides data, intelligence and analytical tools to help business and financial leaders make decisions. MA consists of a premier fixed income and economic research business (Research & Insights); a data business powered by databases on companies and credit (Data & Information), and three cloud-based subscription businesses serving banking, insurance and KYC workflows (Decision Solutions). Its MIS segment is a global provider of credit ratings, research, and risk analysis. It publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Return Strategy: All of Berkshire's top ten holdings pay dividends, with Coca-Cola yielding an impressive 63% annually, reflecting Abel's continuation of Buffett's focus on capital returns to enhance shareholder value.
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- Investor Outlook: Despite Wall Street setting a year-end target of 7,459 for the S&P 500, suggesting a 7% upside, analysts caution that if consumer spending slows due to high oil prices and inflation, future earnings forecasts may be revised downward, adding further pressure on the stock market.
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- Capital Return Strategy: All of Berkshire's top ten holdings feature robust capital return programs, with each company paying dividends; Coca-Cola boasts an impressive 63% annual yield, underscoring Abel's dedication to maintaining shareholder value.
- Long-Term Holding Strategy: In his first shareholder letter, Abel classified Apple and Moody's as 'indefinite holdings,' indicating confidence in their long-term prospects, despite Berkshire having sold approximately 75% of its Apple stake in the past two years.
- Value Investment Principle: Both Abel and Buffett emphasize the importance of securing good deals, as evidenced by Berkshire's recent reductions in holdings, reflecting sensitivity to market valuations, particularly when bank stocks trade above book value.
See More
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- Surging Oil Prices: The retaliatory attacks from Iran have drastically reduced the number of ships passing through the Strait of Hormuz to single digits daily, causing Brent crude oil prices to soar above $127 per barrel in early April, creating further market uncertainty and inflationary pressures.
- Historical Data Insight: Since the S&P 500's inception in 1957, the U.S. economy has faced ten recessions, with the index typically experiencing an average decline of 32% during these periods, indicating that the current market's high levels may be at risk of significant corrections.
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