Category: 3. Business

At a time when AI software and applications have become commonplace in daily life and businesses around the globe, ChatGPT’s maker, OpenAI, has written a cautionary note on AI and how it might be progressing faster than expected.

OpenAI tries to distinguish between AI as conventional technology and the potential emergence of “superintelligence,” which OpenAI believes could pose a catastrophic risk. “The potential upsides are enormous; we treat the risks of superintelligent systems as potentially catastrophic,” OpenAI said.

In a detailed blog post, OpenAI’s artificial intelligence lab has argued that there is a significant gap in the way AI is perceived and its true, rapid advancements.

While the majority of the population can only utilise AI in the form of Chatbots, OpenAI has stated that its systems can already outperform humans in “challenging intellectual competitions.”

In order to mitigate any potential risks originating from AI, OpenAI’s artificial intelligence has called for new safeguards, urging frontier AI companies to agreed on a shared safety principle. This is quite similar to the way society developed building codes.

OpenAI also advocated for an “AI resilience ecosystem”, comparing the need to the creation of the cybersecurity field. It added that no “superintelligent systems” should be deployed without robust methods to align and control them.

Despite the cautionary note, however, OpenAI admitted that AI can be revolutionary in the fields of drug development, climate modelling, and personalised education.

“AI systems will help people understand their health, accelerate progress in fields like materials science, drug development, and climate modelling, and expand access to personalised education for students around the world,” the post read.

OpenAI’s cautionary note on AI comes at a time when the company is gearing up for its debut on the stock market, with the Silicon Valley giant already gobbling up a valuation of half a billion dollars.

ABB (SWX:ABBN) has attracted investor attention recently, with shares trading at 56.12 CHF after a month of mostly sideways movement. Given the company’s steady revenue and profit growth, many are revisiting its long-term prospects.

See our latest analysis for ABB.

ABB’s share price has cooled slightly after its strong year-to-date climb. The recent dip reflects shifting sentiment following a robust run. Still, long-term performance has been remarkable, as highlighted by a 14.43% total shareholder return over the past year and an impressive 171.58% gain over five years. This signals that momentum remains clearly positive even as the stock takes a short breather.

If you’re interested in uncovering more opportunities with strong growth and committed insiders, now is a great time to broaden your search and discover fast growing stocks with high insider ownership

With ABB’s strong fundamentals and only modest recent price shifts, investors face a familiar dilemma: is this a rare window to invest at fair value, or are future gains already reflected in the current price?

The most popular narrative places ABB’s fair value in line with its latest closing price of CHF56.12. While some variance exists in analyst projections, the narrative’s consensus casts ABB as trading close to what its future earnings growth justifies.

ABB’s robust order intake, particularly in electrification, utility, and data center demand, reflects structural increases in global electricity consumption and grid upgrades as industries and urban infrastructure transition away from fossil fuels. This supports visible multi-year revenue growth and an expanding order backlog.

Read the complete narrative.

Curious about why analysts think revenue visibility and recurring income are only part of the story? Discover what ambitious growth assumptions and bold profitability forecasts are driving this razor-sharp valuation call. The secrets behind the numbers might just surprise you.

Result: Fair Value of $55.45 (ABOUT RIGHT)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent weakness in key end-markets and intensifying competition, especially in China, could still trigger earnings volatility and test ABB’s growth assumptions.

Find out about the key risks to this ABB narrative.

Switching lenses, our DCF model suggests ABB may actually be trading above its estimated fair value of CHF49.86 per share. This implies the current price could reflect more optimism than future cash flows might justify. Does this point to hidden downside, or is the market seeing strengths that models cannot capture?

Look into how the SWS DCF model arrives at its fair value.

If our take doesn’t align with your view or if you prefer digging into the numbers yourself, start building your own ABB story in under three minutes. Do it your way

A great starting point for your ABB research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Don’t let your next big opportunity slip through the cracks. Expand your possibilities with fresh themes and new angles; the smartest investors look beyond the obvious.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ABBN.SW.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• In recent weeks, ENKA announced it selected KBR to provide detailed engineering design for Iraq’s Associated Gas Upstream Project Phase 2, while KBR itself reported contract wins for the Bul Hanine oil and gas field in Qatar and opened a new office near Washington, D.C. to boost government client engagement.

• Alongside these developments, KBR reported third quarter results showing higher net income and earnings per share, but lowered its full-year revenue guidance for 2025 despite completing a major share buyback tranche.

• We’ll examine how new international engineering contract awards, particularly the collaboration with ENKA and TotalEnergies, influence KBR’s investment narrative.

Trump’s oil boom is here – pipelines are primed to profit. Discover the 22 US stocks riding the wave.

The core thesis for owning KBR centers on its ability to translate engineering expertise and global relationships, especially in defense, energy transition, and government contracting, into sustained backlog growth and margin expansion. While the recent wins in Iraq and Qatar showcase international momentum, these awards have a limited immediate effect on the main short-term catalyst: normalization of delayed U.S. government award activity. The biggest near-term risk remains ongoing revenue unpredictability tied to U.S. government budgeting and program decisions, which the latest news does not directly resolve.

Among KBR’s recent actions, the opening of a new office in Rosslyn, Virginia, is most relevant. This move enhances access to U.S. government stakeholders and lays the groundwork for improved contract engagement, a critical element given the current risk around government funding delays. As near-term revenue visibility still depends on smoother federal contract flows, this step could help shape the pace of backlog conversion if award activity picks up.

Yet, despite KBR’s global wins, investors should be mindful that…

Read the full narrative on KBR (it’s free!)

KBR is projected to reach $9.4 billion in revenue and $664.3 million in earnings by 2028. This outlook is based on a forecasted 5.4% annual revenue growth rate and a $264.3 million earnings increase from the current $400.0 million.

Uncover how KBR’s forecasts yield a $59.57 fair value, a 40% upside to its current price.

Fair value estimates from eight members of the Simply Wall St Community span from US$40 to over US$5,400, reflecting a broad spectrum of expectations. Many see upside opportunity, but with unpredictable U.S. government contracting still a key risk, the company’s outlook will remain a point of active debate, compare these perspectives to sharpen your own view.

Explore 8 other fair value estimates on KBR – why the stock might be worth 6% less than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your KBR research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

• Our free KBR research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate KBR’s overall financial health at a glance.

Opportunities like this don’t last. These are today’s most promising picks. Check them out now:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include KBR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Morningstar (MORN) shares have taken investors on a ride over the past year, with returns down nearly 38% in that span. Market watchers are looking closely at recent performance to gauge where value opportunities might emerge.

See our latest analysis for Morningstar.

After a tough year for Morningstar, the share price is showing some early signs of stabilizing, climbing 1.82% over the last trading day after months of negative momentum. While the company’s long-term total shareholder returns have held up better than recent dips might suggest, there is no denying that short-term sentiment remains cautious as investors look for signals of a turnaround.

If you’re on the lookout for other stocks that may be gaining ground under the radar, now is a great time to broaden your search and discover fast growing stocks with high insider ownership

With shares trading well below long-term analyst price targets and recent results showing some signs of progress, the key question is whether Morningstar is undervalued at current levels or if the market is anticipating growth ahead.

Morningstar’s price-to-earnings ratio of 23.6x puts it just below the Capital Markets industry average, suggesting the market sees value but is not pricing in outsized upside. At the last close price of $215.49, this signals Morningstar trades at a slightly lower valuation than its peers, though not at a dramatic discount.

The price-to-earnings (P/E) ratio reflects how much investors are willing to pay today for a dollar of earnings tomorrow. For financial services firms like Morningstar, the P/E ratio is often used as a barometer of growth expectations and profitability.

In this case, the P/E multiple is lower than the average for similar companies in the sector, meaning investors are not overpaying relative to the industry. However, compared to the estimated “fair” P/E of 14.1x, the current valuation could be seen as stretched if the company does not deliver higher earnings growth to justify the market’s premium. The current level is above what might be expected if the market consensus shifts closer to intrinsic value.

Explore the SWS fair ratio for Morningstar

Result: Price-to-Earnings of 23.6x (ABOUT RIGHT)

However, continued earnings volatility or slower revenue growth could pressure the stock, particularly if broader market sentiment remains defensive in the near term.

Find out about the key risks to this Morningstar narrative.

Taking another approach, our SWS DCF model presents a very different picture for Morningstar. Based on future cash flows, the model finds the current price of $215.49 is well above its fair value estimate of $93.05. This suggests Morningstar could be significantly overvalued at the moment. How do investors reconcile these sharply opposing signals as they look ahead?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Morningstar for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 875 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you have a different perspective or prefer to dive into the numbers yourself, you can easily assemble your own narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Morningstar.

Keep your portfolio ahead of the curve by uncovering top stocks in booming sectors and fast-changing markets. Now is your chance to stay a step ahead.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MORN.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• XPO, Inc. recently reported its third quarter 2025 earnings, posting sales of US$2.11 billion and net income of US$82 million, alongside the completion of a US$60 million share repurchase program.

• The company’s focus on technology-driven operational improvements and premium service expansion fueled margin gains, positioning XPO as the only public less-than-truckload carrier to expand margins this quarter despite a soft freight market.

• We’ll examine how XPO’s operational gains in premium and high-margin shipments influence its investment narrative and future performance outlook.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

To own XPO shares, I need to believe the company can sustainably expand margins and grow premium offerings amid freight market swings. The latest results reinforce XPO’s reputation for margin improvement, but the soft freight environment leaves near-term volume recovery and persistent cost pressures as the big catalysts and main risk. These quarterly updates do not materially alter either factor at this stage.

One news item fitting this context is XPO’s buyback program completion, with US$60 million in share repurchases this quarter. While this supports capital return, it does not address industry-specific risks such as margin pressures from labor costs, or the importance of future volume trends for earnings growth.

However, investors should not overlook the potential longer-term impact of freight market cyclicality if end-market demand remains weaker for longer periods than expected…

Read the full narrative on XPO (it’s free!)

XPO’s narrative projects $9.2 billion in revenue and $661.0 million in earnings by 2028. This calls for 4.7% annual revenue growth and a $316 million increase in earnings from the current $345.0 million.

Uncover how XPO’s forecasts yield a $141.52 fair value, in line with its current price.

Fair value estimates from three Simply Wall St Community members range from US$91.89 to US$141.52 per share, revealing a wide spread of views. Consider how XPO’s heavy concentration in the US less-than-truckload segment shapes these outlooks and impacts the company’s future resilience.

Explore 3 other fair value estimates on XPO – why the stock might be worth as much as $141.52!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your XPO research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

• Our free XPO research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate XPO’s overall financial health at a glance.

Early movers are already taking notice. See the stocks they’re targeting before they’ve flown the coop:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include XPO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Nintendo (TSE:7974) shares edged slightly lower today, slipping 1.4%. This move follows a relatively quiet trading session with no major company news released. Investors are left to weigh recent performance and valuation metrics.

See our latest analysis for Nintendo.

With Nintendo’s share price up more than 53% so far this year and an impressive 72% total shareholder return over the past twelve months, the recent slip feels more like a pause rather than a reversal. Momentum remains firmly on the company’s side after such a strong run, which suggests that investors are recalibrating expectations rather than abandoning the growth story.

If Nintendo’s recent surge has you curious about other opportunities, now is a great moment to explore fast growing stocks with high insider ownership.

But with shares trading near all-time highs, investors must now ask themselves whether Nintendo is undervalued after such gains, or if the market has already priced in every bit of its future potential.

Nintendo’s price-to-earnings ratio stands at 43.9x based on the latest close of ¥13,905, making it look expensive relative to both its peer group and the broader entertainment industry.

The price-to-earnings (P/E) ratio measures how much investors are willing to pay for each yen of current earnings. For a major entertainment company with widely recognized franchises, the P/E highlights how the market is weighing sustained profit generation and future growth prospects.

At 43.9x, investors are pricing Nintendo shares above the average for direct peers (35.8x) and notably above the JP Entertainment industry average (22.5x). This premium suggests that the market is confident in the company’s blockbuster franchises and its ability to post future earnings growth. However, it also sets a higher expectation for future performance. Compared to the estimated fair P/E of 46.7x, the current multiple is relatively close to what the market could reasonably support given Nintendo’s growth profile.

Explore the SWS fair ratio for Nintendo

Result: Price-to-Earnings of 43.9x (OVERVALUED)

However, risks remain, such as slowing profit growth or negative surprises in upcoming earnings, which could quickly test investor conviction in Nintendo’s rally.

Find out about the key risks to this Nintendo narrative.

While Nintendo looks expensive on earnings multiples, our SWS DCF model suggests a different story. According to this approach, the shares are currently trading well above our fair value estimate. This challenges the market’s optimism and raises the question: is sentiment running ahead of fundamentals?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nintendo for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 877 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see things differently or want to reach your own conclusions, you can dive into the numbers and craft your own take in just a few minutes using our tools. Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Nintendo.

Don’t let Nintendo’s story be the last opportunity you act on. There is a world of high-potential stocks waiting that you do not want to miss.

• Tap into ongoing technological disruption by checking out these 24 AI penny stocks, which are making waves in artificial intelligence research and real-world applications.

• Boost your income goals with these 17 dividend stocks with yields > 3%, featuring attractive yields above 3% and robust fundamentals for reliable long-term returns.

• Ride the innovation wave at the frontier of computing with these 28 quantum computing stocks, where select companies are driving quantum breakthroughs and reshaping entire industries.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 7974.T.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

JFrog (FROG) captured market attention after releasing third quarter results that beat expectations on revenue and earnings. Cloud revenue jumped 50% year over year, which reflects broader adoption across enterprise customers.

See our latest analysis for JFrog.

Following these blowout results, JFrog’s share price has soared, jumping nearly 27% in a single day and delivering a 95% year-to-date share price return. That momentum reflects investor excitement about cloud growth, product innovation, and a brighter outlook, even as some long-term holders are still just above breakeven on a five-year total shareholder return basis.

If you’re looking to spot fast-rising names with inside ownership skin in the game, now’s a good moment to broaden your search and discover fast growing stocks with high insider ownership

Yet with share prices approaching new highs and analyst targets, it raises an important question: is JFrog still undervalued after this rally, or has the market already priced in most of its future growth potential?

With JFrog last closing at $60, the most widely followed narrative puts fair value at $56.44, just under current levels. This sets up a lively debate about whether the rally has sprinted beyond reasonable expectations, given where growth and profitability might land in the coming years.

Continued product expansion and innovation targeting advanced security features, ML model lifecycle management, and new pricing packages position JFrog to raise contract values and further penetrate its growing addressable market. This supports both revenue acceleration and long-term earnings growth as digital transformation intensifies across industries.

Read the complete narrative.

Wondering which bold forecasts are fueling this premium valuation? The narrative builds a case on aggressive top-line growth and a dramatic turn-around in profitability. See the concrete assumptions that drive this punchy fair value and decide if they stack up to reality.

Result: Fair Value of $56.44 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, slowing cloud migration or rising competition in security could dampen JFrog’s growth outlook and challenge the assumptions behind these bullish forecasts.

Find out about the key risks to this JFrog narrative.

If you see things differently or want to follow your own hunches, it’s easy to dive in and craft your own take in just a few minutes. Do it your way

A great starting point for your JFrog research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

Expand your investment playbook right now by targeting the boldest opportunities screeners reveal. These picks can give you an informed edge and help you avoid missing the next breakout star.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FROG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com