Gotrade News - Berkshire Hathaway disclosed a new Macy's stake while Leidos secured a $10 billion State Department contract. Toast expanded into the UK hospitality market and Las Vegas Sands posted record Q1 cash returns.
The cluster of catalysts highlights deep-value, government, and global-expansion themes converging across mid and large-cap US equities. Investors are rotating into names with tangible assets, contracted revenue, and durable buyback programs.
Key Takeaways
- Berkshire bought 3.04 million Macy's shares worth about $55 million, a 1% stake.
- Leidos won a $10 billion State Department Evolve contract for IT modernization.
- Toast partnered with ICC UK while Las Vegas Sands repurchased $740 million in Q1.
Berkshire Bets on Macy's Real Estate
According to Barchart, Berkshire disclosed the Macy's position in its latest 13F filing. It marks the conglomerate's first department-store bet in roughly 60 years.
The thesis appears anchored in Macy's owned real estate footprint, not just its retail operations. The retailer owns or controls 243 of its 665 stores, including the flagship Herald Square location.
That Herald Square property alone has been independently valued between $1 billion and $3 billion. Macy's broader real estate base provides a tangible floor under the equity story.
Macy's also offers a 4.02% dividend yield, well above the sector median of 2.61%. Shares trade at 9.05x forward earnings versus the sector median of 15.04x.
The company has paid dividends for 22 consecutive years, reinforcing its appeal to income-focused investors. Berkshire's Berkshire Hathaway (BRK.B) signal could draw fresh attention to Macy's (M) shares.
Government Contract Tailwinds for Leidos
As reported by Insider Monkey, Leidos was selected on May 21 for the Evolve contract. The award carries a $10 billion ceiling under a multiple-award IDIQ structure.
The contract spans four categories: cloud and data center services, application development, network and telecommunications, and end-user support. It backs modernization of the State Department's globally distributed infrastructure.
Leidos plans to deploy zero-trust security, AI-driven operations, and automated monitoring across embassies and consulates. The work aligns with the company's NorthStar 2030 digital transformation strategy.
For Leidos (LDOS) investors, the ceiling award expands a long-duration federal IT revenue backlog. Defense and civilian agency awards remain a structural tailwind for diversified government services providers.
Per Insider Monkey, Toast also announced a sponsorship of ICC UK's Trade and Export initiative on May 21. The deal supports hospitality brands expanding between the UK and US markets.
Toast will supply its software, AI, payments, and financial solutions stack to ICC UK's network. The company already powers roughly 171,000 locations globally, including Chotto Matte, Miznon, and Carbone.
Las Vegas Sands rounds out the catalyst cluster with a strong Q1 print and continued capital returns. Net revenue rose 25.3% year over year to $3.59 billion, while net income climbed 57.1% to $641 million.
Diluted EPS grew 73.5% to $0.85 and adjusted property EBITDA gained 24.6% to $1.42 billion. The operator repurchased $740 million of stock during the quarter alone.
Since late 2023, Sands has bought back roughly 14.3% of its outstanding shares for $5.24 billion total. It also maintains a $0.30 quarterly dividend and ended the period with $3.33 billion in cash.
Taken together, the four names point to a tape rewarding hard assets, contracted backlog, and disciplined buybacks. Stock-pickers may find selective entries across deep-value retail, federal IT, fintech, and gaming.
Sources
- Berkshire Hathaway Buys Macy's After 60 Years Away From Department Stores (Barchart)
- Leidos Selected for $10B Evolve Contract to Modernize US State Department IT Systems (Insider Monkey)
- Toast Partners With ICC UK to Support Global Expansion for Hospitality Brands (Insider Monkey)
- Is Las Vegas Sands (LVS) One of the Cheap NYSE Stocks to Buy According to Analysts? (Insider Monkey)
