Investors' Chronicle Global trackers, Diploma & cobalt: Companies and Markets Show
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May 23, 2025 Alex Newman, author of a critical Big Read on global tracker funds, explores the contradictions within these popular investment products, offering strategies for investors to navigate their complexities. Meanwhile, Alex Hamer dives into the cobalt market, discussing China's pivotal role and signaling a potential end to the cobalt bull run as electric vehicle technology shifts. The conversational blend of financial insights on Diploma's strong performance and global equity market dynamics adds layers to this enlightening discussion.
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Diploma's Robust Growth Outlook
- Diploma upgraded its revenue growth guidance from 6% to 8% and increased margin expectations to 22%.
- The strong controls and life sciences divisions along with successful acquisitions drive its performance.
Diploma Bullish on US Market
- Diploma is very bullish on the US market, especially growing sectors like aerospace and data centers.
- The shift of manufacturing back to the US could further boost its SEALs business.
Diploma Valuation Reflects Quality
- Diploma trades at 29 times forward P/E, significantly above the sector average.
- Investors pay a premium for its consistent organic growth, resilient margins, and strong M&A track record.