The Oxford Lane Capital stock price has moved into a bull market after surging by over 20% from its lowest level this year. OXLC has soared to $4.8 and is hovering at its highest level since March 11. So, is this 23% yielding company a good investment to buy and hold today?

What is Oxford Lane Capita, and why does it yield so much?

Oxford Lane Capital is a leading American company operating in the fast-growing credit industry. It is an investment company that invests in equity and junior debt tranches of Collateralized Loan Obligation (CLO) vehicles. These investments are collateralized by portfolios of senior loans with no exposure to the real estate industry.

Oxford also invests in warehousing facilities, which are financial entities that aggregate senior loans that may be used to form part of a CLO vehicle. The company now holds equity investments in almost 200 CLO structures, including of companies like Elmwood, Regatta, Ares, Wind River, and Ceder Funding.

Oxford Lane Capital stock price has jumped because of its strong financial performance as demand for credit jumped. It also soared after the company announced a new share repurchase program.

The company will repurchase up to $150 million worth of stock, a substantial amount since the company has a market cap of $1.5 billion. A share repurchase program help to boost a stock’s performance by reducing the number of outstanding shares, which then boosts its earnings per share.

The other potential catalyst for the OHLC stock price is the fact that interest rates will likely remain higher for a while. Goldman Sachs analysts expect that the Fed will deliver three rate cuts this year, bringing the terminal rate at 3.75%. Still, these are higher-than-average interest rates.

Read more: Oxford Lane Capital (OXLC) has a fat 20% yield: is it a buy?

OXLC and other large players in the industry do well when rates are rising. That’s because interest rates on CLOs tend to do well as well, which can lead to higher cash flows since CLOs have a floating rate. 

Analysts believe that Oxford Lane Capital’s business will do relatively well this year. The average estimate is that its revenue will be $372 million this year followed by $615 million next year. This explains why the average OXLC stock price forecast is $5.38, higher than the current $4.8.

Investors love OXLC for its strong historical performance and its high dividend yield. Its stock yields 22.4%, meaning that a $10,000 investment will bring in about $2,000 in interest each year. This dividend helps to offset the stock performance. For example, its stock dropped by 5% in the last 12 months, while the S&P 500 rose by 7.4%. However, its total return, with dividends included, was 16% compared to S&P 500’s 7.4%. OXLC has often beaten the S&P 500 because of this yield.

OXLC stock price analysis

OXLC chart by TradingView

The weekly chart shows that the OXLC share price has been in a strong uptrend in the past few months. It has formed an ascending channel that connects the lowest and highest swings since March 2023. It recently formed a giant hammer candlestick, a popular reversal sign. 

The stock has remained above the 50-day and 100-day moving averages, and is attempting to cross the key resistance at $4.80, the highest point in January 2022. Therefore, the path of the least resistance for the Oxford Lane Capital stock is bullish, with the next point to watch being at $5.0, its highest point in November last year.

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European healthcare stocks fell sharply on Wednesday as investors braced for potential tariffs on the pharmaceutical industry, a sector that had largely been spared from previous rounds of trade levies.

US President Donald Trump, who has dubbed the new wave of tariffs “Liberation Day,” is expected to announce fresh measures later in the day, raising concerns about their impact on global drugmakers.

Trump said last month that he planned to announce car tariffs “very shortly” and then “we’ll be announcing pharmaceuticals at some point in the not too distant [future] because we have to have pharmaceuticals.”

The STOXX 600 Healthcare index dropped 2.5% in early trading, reaching its lowest level since December.

The broader European market also came under pressure, with the benchmark STOXX 600 index declining by 0.9%.

“This might be a reaction to the tariff announcements expected today from the US administration, which this time could focus on the pharmaceutical sector,” an analyst said.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the losses reflected growing anxiety over the tariffs.

“It’s not surprising that pharma stocks have been caught up in this wave of nervousness,” Streeter said, adding that investors are on “tenterhooks” as the clock ticks down to what’s expected to be the biggest wave of tariffs on US trading partners.

It’s been dubbed Liberation Day by President Trump, but it’s more like entrapment day, with more countries set to be tangled up in a web of fresh duties.

Major pharmaceutical stocks slide due to fears of Trump tariffs

Shares of major European pharmaceutical companies were hit hard as fears over tariffs intensified.

Germany’s Bayer slumped 4.7%, while France’s Sanofi declined 3.3%. Swiss drugmakers Lonza and Novo Nordisk both lost around 2.7%.

Other major healthcare firms, including Novartis, Roche, and Merck, fell between 1.6% and 2.7%.

UK-based AstraZeneca, as well as Bavarian Nordic, GSK, and UCB, recorded losses between 2.5% and 3.7%.

Analysts warned that if Trump moves ahead with tariffs on the sector, pharmaceutical companies could face significant cost increases.

Many drugmakers manufacture key ingredients and components in overseas markets before assembling final products in the US

Industry lobbies for gradual tariff rollout

Until now, pharmaceuticals had been largely exempt from Trump’s aggressive trade measures.

However, reports indicate that the White House is preparing to impose duties on drug imports as part of its broader push to reduce the US trade deficit.

Industry executives are now urging the US government to implement any tariffs in phases, allowing companies time to shift production closer to their largest market.

Reuters reported on Tuesday that pharmaceutical lobbyists were in discussions with administration officials about delaying the levies.

While a formal announcement may not come immediately, sources familiar with the talks said the tariffs were likely unavoidable.

The uncertainty is already weighing on the sector, with companies warning that investment plans and product launches could be delayed.

“When you bring tariffs, it drives uncertainty, and when you’re uncertain, you pause,” Ester Baiget, CEO of Danish biotech firm Novonesis told CNBC on Tuesday.

“You pause innovation, you pause launches, you pause investments.”

With global markets on edge, investors will be closely watching Trump’s next move and its potential ripple effects on the pharmaceutical industry.

How tariffs could impact Novo Nordisk’s obesity and diabetes treatments

Denmark stands as one of Europe’s leading pharmaceutical and biotech hubs, home to major companies such as Novo Nordisk, the maker of Wegovy, and Bavarian Nordic, a vaccine producer—both of which have significant exposure to the US market.

Novo Nordisk’s chairman, Helge Lund, told CNBC last week that the company was not engaging in speculation ahead of Trump’s tariff announcement, instead emphasizing the importance of adaptability.

“It doesn’t make a lot of sense to speculate too much,” Lund said at the Danish pharmaceutical giant’s Annual General Meeting. “We are laser-focused on what we can impact.”

However, uncertainty lingers over how potential tariffs could affect US sales of Novo’s widely popular obesity and diabetes treatments, as well as the potential consequences for its American rival, Eli Lilly, which produces Zepbound.

Lund declined to comment on what proportion of the company’s weight-loss drug sales come from its US plants, instead highlighting Novo Nordisk’s “very significant” manufacturing presence in the country.

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US tourism is collapsing in 2025, and it’s turning into one of the most immediate economic consequences of Donald Trump’s return to the White House.

Airlines are slashing routes. Hotel chains are missing revenue targets. International bookings have evaporated. 

The world’s largest consumer economy is watching billions in foreign tourist dollars disappear almost overnight.

Why is everyone turning their backs on the US?

According to new data from Tourism Economics, international arrivals are now expected to fall by 9.4%, compared to earlier forecasts of a 9% rise. 

One of the largest drivers of the decline is the political and diplomatic climate under President Donald Trump’s second term. 

Tariffs, border policies, and public rhetoric have made the US less attractive to both leisure and business travelers. 

In particular, Canada’s role as the US’s top international tourism source has been severely disrupted.

For context, approximately 20 million Canadian tourists visited the United States in 2024.

With 77 million tourists reported in 2024, Canada’s contribution stands at 26%.

But ever since Trump announced 25% tariffs on many Canadian goods, traffic at some border crossings has fallen by as much as 45% on certain days. 

Air Canada has reported a 10% decline in bookings for the April to September travel period. 

A poll conducted by Leger in March found that 36% of Canadians who had planned to visit the US have already cancelled.

According to aviation analytics firm OAG, bookings on Canada to US routes are down over 70% compared to the same period last year.

Additionally, Mexico, which is the second largest source of visitors to the US, saw a 6% drop in air travel in February compared to 2024. 

During Trump’s first term, Mexican travel fell by only 3%.

Border enforcement changes and perceived hostility are expected to deepen the drop this year.

Europe is also souring on the US

Western Europe accounted for 37% of US overseas travel in 2024. 

Forward bookings for summer travel from Europe to the US are down 25%, according to Accor SA, one of the world’s largest hotel groups. 

Attitudes in Europe have deteriorated sharply since Trump’s reelection. 

A YouGov survey from March found that unfavorable opinions of the US had reached record highs.

In Germany, 56% now view the US unfavorably, compared to 53% in Britain and 74% in Denmark.

These are the highest levels since polling began in 2016.

High-profile detentions are worsening perceptions. In March, a British woman was held for 10 days due to a visa issue. 

A Canadian woman attempting to renew her visa at the US-Mexico border was detained for 12 days and reportedly shackled. 

These stories have spread widely and led to updated travel advisories from the UK, Germany, and other countries.

On March 15, the UK government added new warnings stating that travelers may be detained even for minor violations.

Several European governments, including those of France, Germany, and Norway, have warned transgender and non-binary citizens of new US entry requirements. 

The US now mandates that all tourists declare their biological sex at birth on visa applications, reinforcing concerns that the US is no longer a welcoming destination for many travelers.

Meanwhile, other countries are already capturing the displaced demand. 

Hotels in Bermuda are seeing a sharp increase in Canadian bookings.

Rental properties across Europe report a 32% rise in summer reservations from Canadian customers.

Egypt and South America are also seeing increased interest as alternative long-haul destinations.

Global events at risk

The timing of this decline couldn’t be worse. The US is currently preparing to host two major global sporting events. 

The 2026 FIFA World Cup will be held across the US, Canada, and Mexico.

Additionally, the 2028 Summer Olympics are scheduled to take place in Los Angeles.

Travel experts and sports officials are concerned that growing visa delays and political perceptions may impact attendance.

In some countries, travelers could face visa wait times of up to 700 days.

Brazil, Turkey, and Colombia are among those affected.

What’s worse is that before the elections, US international arrivals had been nearing pre-pandemic levels.

Tourism Economics now believes those numbers will not return until 2029.

The longer-term risk is not simply about lost revenue but about reputational damage that may take years to undo. 

How big is the financial damage?

Tourism Economics now estimates that foreign visitor spending will fall by up to $18 billion this year.

This includes a $9 billion drop in spending from foreign tourists alone compared to 2024. 

The US Travel Association warned that a 10% drop in Canadian arrivals could mean two million fewer visitors, $2.1 billion in lost spending, and 14,000 lost jobs in hospitality and tourism.

The financial markets are starting to reflect these risks. Shares in major carriers such as United Airlines, Delta, and American Airlines have plummeted, down 30-40% year-to-date.

Most American airline companies are seeing their ratings downgraded.

The hotel sector is facing similar headwinds, particularly for brands with large US portfolios.

Food distributing companies, to flights and airport lounges like Aramark and Performance Food Group, could also receive some indirect hits in their sales.

Moreover, there is a visible economic contradiction in the current trend.

Tariffs were designed to reduce the US trade deficit by limiting imports. 

However, in national accounts, foreign tourism is considered an export.

Fewer tourists mean fewer foreign dollars spent inside the US, which makes the trade deficit worse.

It is highly likely that the drop in US tourism will only get worse. 

This is no longer just an issue of missed hotel stays and cancelled flights.

It is now a broader economic problem, tied to the country’s image, policy decisions, and long-term position in global travel and trade.

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European spirit producers are preparing for the potential fallout of new US tariffs, which could pose a serious challenge to their businesses.

However, while analysts at Berenberg acknowledge the risks, they argue that leading companies in the sector remain in a strong position to weather the storm.

They said although the proposed duties could have a significant impact, major spirits producers have already priced in much of the potential downside.

“Large spirit makers in Europe are in a robust position to face US tariffs, even though they pose a serious concern,” Berenberg analysts Javier Lastra and Craig Sinclair say in a note.

“Spirit stocks have come down to levels that already discount quite negative scenarios,” they said, adding that Diageo and Pernod Ricard offer the most attractive profiles in this backdrop.

“However, the tariff threat shouldn’t be underestimated as a 200% duty could basically kill an import-spirit business,” the analysts added.

The possibility of a 200% tariff on European alcohol imports, recently floated by US President Donald Trump, has sent ripples through the market.

Trump’s threat came as a countermeasure to the European Union’s planned tariff hike on American whiskey and other products.

Liquor stocks under pressure, beer and soft drinks relatively insulated

Following Trump’s announcement, shares of prominent European beverage companies faced immediate pressure.

French spirits groups Pernod Ricard and Rémy Cointreau saw declines, while Italian drinks maker Davide Campari also took a hit.

Luxury giant LVMH, which owns Moët & Chandon and Hennessy, as well as British multinational Diageo, experienced more modest dips.

The Berenberg analysts noted that beer and soft drinks industries are relatively insulated from the impact of tariffs.

Unlike the spirits sector, these industries tend to recover more quickly from cyclical downturns.

As a result, the bank’s top pick among brewers is Heineken, while it also sees upside potential for AB InBev and Molson Coors.

In the soft drinks space, Coca-Cola Hellenic emerged as a standout, earning a Buy rating from the firm.

Tariff uncertainty a risk factor for Diageo (DGE), but gains outweigh risks

On Wednesday, Berenberg initiated coverage on Diageo with a Buy rating and a price target of 23.72 GBP, a more than 15% upside to its share price on Wednesday.

The firm’s analysis suggests that the company’s recent decline—down more than 5% in the past month—offers an attractive entry point for investors.

Despite concerns over rising US bond yields and trade uncertainties, Diageo’s strong global presence and superior return on invested capital (ROIC) justify its valuation premium over competitors such as Pernod Ricard.

The report also examined the tariff concerns, recognizing them as notable challenges but not insurmountable for Diageo.

Berenberg’s analysts consider the uncertainty surrounding tariffs a risk factor, yet they believe the potential gains for investors in Diageo’s stock outweigh these concerns at this stage.

Pernod Ricard’s valuation compelling despite tariff uncertainty

Berenberg also initiated coverage on Pernod Ricard (EPA:PERP) SA (RI:FP) (OTC: PDRDY) with a Buy rating and a price target of EUR 114.00.

The decision follows the company’s recent withdrawal of its mid-term guidance for 4-7% average top-line growth in its H1 FY25 results, a move echoed by competitor Diageo and described by some analysts as a “clearing event.”

Berenberg notes that Pernod Ricard’s current valuation already reflects a substantial portion of the tariff risks.

The firm suggests that any resolution on tariffs could help restore the stock to a more typical valuation in the short term.

Currently, Pernod Ricard is trading at an FY26E EV/EBITA multiple of 12.0 times, or 12.9 times when factoring in tariff-related impacts—below its 20-year historical average of 14.0 times.

Despite lingering uncertainty over trade policies, Berenberg views Pernod Ricard’s valuation as compelling.

With much of the tariff risk already accounted for in the share price, the firm sees an attractive risk-reward balance for investors looking at the stock.

Caution for Davide Campari-Milano due to reliance on international markets

Meanwhile, Berenberg initiated a Hold rating on Davide Campari-Milano, setting a price target of €6.30.

The firm remains cautious on Campari’s outlook due to its reliance on key international markets.

With approximately 25% of its net sales at risk from trade tariffs, Campari could face headwinds if new duties are implemented.

However, the analysts also point out that if trade tensions ease, the company could benefit from a substantial revaluation.

Tariff concerns loom, but sector remains attractive

While the proposed tariffs remain a significant risk factor, Berenberg analysts suggest that investors should not overreact.

Large spirits makers such as Diageo and Pernod Ricard have diversified operations and extensive global footprints that allow them to mitigate potential losses.

Nonetheless, the analysts warn that a 200% duty could be devastating for some import-dependent businesses, making it a key issue to watch.

Berenberg’s report underscores the importance of monitoring ongoing trade negotiations between the US and the EU.

If tariffs are ultimately imposed, companies with high exposure to the US market may need to adapt by shifting production or exploring alternative revenue streams.

Until then, the sector remains a mix of risks and opportunities, with well-positioned firms likely to emerge stronger in the long run.

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Waton Financial Limited is in focus today after shares of the financial services company rallied a whopping 400% on their Nasdaq debut.

WTF plans on using $17.5 million it raised in the initial public offering (IPO) to improve its trading platform and strengthen the asset management segment.

The company’s offering sold 4.38 million shares in total to fetch a valuation of about $190 million.

Waton Financial stock is now priced at about $20, sharply above the IPO price of only $4.0.

Is Waton Financial a meme stock?

Waton Financial is a high-risk investment at current levels since much of its debut rally was likely driven by retail investors, which effectively makes it similar to a “meme stock”.

Therefore, it’s believable that WTF shares could see a huge correction following the initial surge, much like what usually happens with the meme stocks.

Additionally, Waton Financial stock is going for a price-to-sales multiple of about 90 at the time of writing, which is materially expensive compared to the likes of Charles Schwab and Robinhood at less than 15 times each.

This underscores the disconnect between the company’s financials and its valuation – and it’s not like WTF pays a dividend to incentivize investing in it despite gross overvaluation either.

WTF’s profitability is not too inspiring

Caution is advised in buying Waton Financial stock at current levels also because it operates in the immensely competitive financial technology landscape.

While the sector evidently has potential for meaningful growth, the company’s ability to scale and compete globally remains uncertain, especially when it’s up against renowned names like Charles Schwab, Robinhood, and Interactive Brokers.

Plus, WTF’s profitability picture isn’t too inspiring either. In 2024, Waton grew its revenue by an exciting 73% on a year-over-year basis.

Still, its net profit came in down 19% last year, which further substantiates that investing in Waton Financial is coupled with significant risk as well.

Inflation and interest rates matter to Waton

Last week, the monthly core personal consumption expenditure (PCE) price reading, which is the Fed’s preferred inflation gauge, came in up 0.4% for the month and 2.8% for the year.

Economists, in comparison, had called for a 0.3% and 2.7% increase, respectively.

Stickier inflation could make it more challenging for the Federal Reserve to consider lowering its key interest rate any further in 2025, which may serve as another headwind for WTF shares this year.

Rising borrowing costs might reduce trading activity, potentially affecting its brokerage services.

Moreover, higher rates could increase the cost of margin financing, possibly deterring some clients as well.  

Put together, these macro factors also indicate that investing in Waton Financial stock, particularly when it’s trading at such a high valuation, could prove disastrous for investors in 2025.

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