HAPPY WEDNESDAY TO THE STREET
It’s official: the Federal Reserve will hold rates steady for another month at least, keeping its benchmark rate unchanged at 3.75%-4%.
But Fed Chair Kevin Warsh buried the lede in the calendar: starting in 2027, one of eight FOMC meetings will skip the rate vote entirely to ponder big-picture strategy. It’ll climb to two in 2028.
A meeting with no decision? Corporate America perfected that years ago.
🟩 | US stocks rose again today, as the Fed acting as expected and major earnings continued to roll in.
📉 | One Notable Decliner: Enphase Energy (ENPH) tumbled about 16% after quarterly revenue fell and Q4 guidance missed.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
ORACLE, LOGITECH, WENDY'S
📈 | Oracle (ORCL) forecast $225B in fiscal 2030 revenue and capped new funding at $20B.
📉 | Logitech (LOGI) posted mixed fiscal Q2 results, with operating income missing estimates.
📈 | Wendy's (WEN) jumped on a $1.4B take-private offer from Nelson Peltz's Trian.
📈 | Brinker International (EAT) raised its full-year earnings and revenue guidance.
Tomorrow's Trade Idea, Today
CHE-CH-CH-CH-CHANGES
Stock Spotlight
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Compounder Comeback
Chemed's old reputation is ready for a reboot.
Jefferies analyst Brian Tanquilut upgraded the hospice and plumbing services company to Buy after a third-quarter beat.
Rooting for Roto
Investors once treated Chemed as a defensive, steady compounder worth a premium valuation. But CHE has made some changes. After a stretch of operating hiccups, Tanquilut thinks that premium is coming back.
The analyst says Chemed has fully worked through the Medicare hospice cap issues that weighed on results. He also expects a Q4 and full-year beat versus guidance.
Meanwhile, Roto-Rooter's top line is stabilizing as it laps a heavier marketing push. Tanquilut sees the resulting margin reset as already baked into long-term expectations, and expects earnings to return to healthy, predictable growth.
Paying Up Again
Shares have climbed over the past year, beating the broader market but trailing the healthcare sector. Of the five analysts covering the stock, three rate it a Buy or Strong Buy and two say Hold.
If Tanquilut is right, the premium multiple is just a plumbing problem… and Chemed knows a guy.
Do you own shares of Chemed Corporation (CHE)?
OVERHEARD ON THE STREET
💻 | Apple (AAPL) unveiled its first touchscreen MacBook Pro, with prices starting at $2,899.
🚗 | China's car market is on pace for its worst sales year since 2014, even as exports boom.
🏒 | The New York Rangers began trading as a standalone company, MSG Rangers Corp. (MSGR).
TUESDAY’S POLL RESULTS
Do you own shares of Broadcom Inc. (AVGO)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Long-term upside.”
🐻 Nope, not interested — “Shares are too high and chips are supply limited for growth...”
👀 No, but I’m interested — “Will look into AVGO. Normally it's kind of a boring, under-the-radar stock, but your column has piqued my interest.”
