Pricing power is what’s allowing many companies — including seven of our Club holdings — to support revenue growth and enhance, or at the very least protect, profitability during an earnings season marked by a still-elevated inflationary environment. When we’re talking about “pricing power,” it’s the ability of companies with strong brands to raise prices without seeing too much impact on demand. In many cases, it’s because consumers, who are also feeling the bite of inflation in their personal budgets, are willing to pay those higher prices because the products are so essential to their everyday lives. And, in times of economic uncertainty, consumers tend to take comfort in their favorite brands. For example, Club holding Procter & Gamble (PG) beat on the top and bottom lines in its fiscal third quarter as price increases enriched profit margins despite a small slip in volumes . Similarly, comparable sales at McDonald’s (MCD) increased by 13% in the first quarter and traffic increased despite increased menu prices. Strategic price hikes at Coca-Cola (KO) resulted in strong Q1 revenue and a muted effect on people’s buying habits. “Some of the best brands in America have been able to push through price increases and have seen favorable demand to where the consumer has responded without too much negativity,” Bradley Thomas, consumer and retail analyst at KeyBanc, said in an interview with CNBC. Cash-strapped Americans are “seeking value,” Thomas added. Remember, value is not always about offering the lowest price, it’s about offering the greatest bang for your buck. The pricing success at P & G, Coca-Cola, or McDonald’s comes down to consumers feeling that they are still getting that value from brands they know and love. Here’s a list of Club holdings with pricing power, starting with a closer look at P & G. PG YTD mountain Procter & Gamble’s stock performance year to date. Procter & Gamble last week delivered quarterly earnings and revenue beats while raising guidance for full-year organic sales growth. The consumer goods powerhouse raised prices across segments, lifting its gross margin by 150 basis points to 48.2% in its fiscal third quarter. P & G reported a 4% increase in fiscal Q3 sales. Organic sales, which exclude the impacts from foreign exchange, acquisitions and divestitures, rose 7%. That increase was driven by a 10% boost from higher pricing. But the Tide, Pampers and Gillette maker’s volume fell 3% as some shoppers traded down to cheaper alternatives. We aren’t concerned since some volume decline is to be expected given the magnitude of the price hikes. Management was able to strike a balance between delivering growth and the best value to customers through its premium products. JNJ YTD mountain Johnson & Johnson’s stock performance year to date. Johnson & Johnson (JNJ)exhibited pricing power during the first quarter in its consumer business, which will be separated later this year and brought public as a standalone company called Kenvue. The unit sales increased 11.4% in Q1, driven by strong pricing actions and healthy demand across its product categories including over-the-counter, skin, health and beauty, and baby care, to name a few. Management during last week’s post-earnings call said its consumer unit, post-separation will be even more competitive. The company’s pharmaceuticals and medtech divisions, which drive a majority of revenue, will remain, and they will keep the Johnson & Johnson name. LIN YTD mountain Linde’s stock performance year to date. Industrial gas giant Linde (LIN) is our way to play decarbonization in an economy focused on clean energy initiatives, and it’s another Club holding that has pricing power. The company produces, processes, and sells different kinds of gases used in a variety of industries including healthcare manufacturing, food, beverage carbonation, steel making, and aerospace. Due to the complexity of the supply chain, Linde has the distinct advantage of contractually passing on additional costs to its customers. This prevents profits from being crunched by higher energy prices and allows Linde to deliver consistent future cash flow and strengthen its earnings power. In its latest earnings, out Thursday, the company said volumes were flat but its price and mix contributed 8% to the top line. Halliburton HAL YTD mountain Halliburton’s stock performance year to date. Halliburton (HAL) on Tuesday announced strong financial performance in the U.S., and international markets in Q1. Total revenue rose 33% year over year while earnings per share more than doubled on an annual basis. The top and bottom-line beats were accompanied by strong operating margin performance and operating cash flow. The oilfield services company has benefitted from an increase in inflation, which has partly resulted from higher energy prices this year. “Pricing continues to trend up for all product lines in all regions,” Halliburton CEO Jeffrey Miller said on the call. Sustained customer demand was also a crucial factor of growth for the quarter. Halliburton has exhibited strong pricing power due to massive demand from global end markets, benefitting from years of under-investment in drilling. AAPL YTD mountain Apple’s stock performance year to date. Apple (AAPL) is another Club holding with pricing strength. In addition to premium prices on its hardware devices, the iPhone maker increased its subscription rate for its streaming service by 40% in November 2022. The monthly price for Apple TV+ rose to $6.99 from its previous $4.99. When Apple TV+ was first rolled out, it only had a few shows and movies, and the price tier was a more affordable option. A few years after its 2019 launch, the platform now has a wider selection of documentaries, films, and TV series in many categories. At that time, the company also increased prices for its Apple Music service to $10.99 from the prior $9.99, in addition to its Apple One bundle service, which hosts these plans among other services to $16.95 from $14.95. When it reported its fiscal first quarter in February, Apple delivered a new record for Services revenue of $20.8 billion despite the difficult macroeconomic backdrop. Apple is out with its latest quarterly next week. MSFT YTD mountain Microsoft’s stock performance year to date. Earlier this year, Microsoft (MSFT) announced changes to global pricing for its cloud services, effective April 1. Microsoft’s cloud offerings, which include Microsoft 365 and Azure, are 9% more expensive in the U.K., and 15% more expensive for customers in the European Union. Microsoft said this price hike is an effort to “align the pricing of our Microsoft Cloud products globally.” Looking ahead, the company will “assess pricing in local currency as part of a regular twice-a-year cadence, taking into consideration currency fluctuations relative to USD [dollar].” While its cloud growth slowed during its fiscal third quarter , rising 27% compared with 31% growth in the prior quarter, the company said Azure took market share, attracting more customers to its AI-powered applications. CAT YTD mountain Caterpillar’s stock performance year to date. During its first-quarter earnings results, out Thursday, Caterpillar (CAT) delivered solid year-over-year revenue growth in each of its product segments, along with meaningful margin expansion. Management said the strength was driven by “favorable price realization and higher sales volume.” Its Construction Industries unit saw sales up 10% and profit margins grew to 26.5% from 17.3%, fueled by stronger pricing and strong demand in both residential and non-residential markets in the U.S. Caterpillar’s latest report shows how its business is benefitting from strategic pricing, which offset costs. (Jim Cramer’s Charitable Trust is long PG, JNJ, LIN, HAL, AAPL, MSFT, CAT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. 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A grocery cart sits in an aisle at a grocery store in Washington, DC, on February 15, 2023.
Stefani Reynolds | AFP | Getty Images
Pricing power is what’s allowing many companies — including seven of our Club holdings — to support revenue growth and enhance, or at the very least protect, profitability during an earnings season marked by a still-elevated inflationary environment.
Aventon has officially announced its latest electric bicycle, the Pace 4, adding advanced smart bike technology and enhanced rider comfort to its popular line of urban-friendly e-bikes. The Pace 4 builds upon Aventon’s successful formula of accessibility and ease of use, now augmented with new connectivity and security features that make it harder to steal and easier to get back.
At the heart of the Pace 4 is Aventon’s latest innovation: the Aventon Control Unit (ACU). The ACU significantly upgrades the bike’s intelligence and security capabilities, bringing GPS tracking, geofencing, and remote locking to the Pace 4.
With the addition of the ACU, riders gain the ability to monitor their bike’s location in real-time, set virtual boundaries that trigger alerts if the bike leaves a specified area, and remotely lock the rear wheel, helping to improve security and peace of mind. A startup passcode can also be enabled to further improve theft deterrence, ensuring the bike can only be activated by authorized users.
The remote locking and passcode can help deter some theft, but the GPS tracking makes it easier to get the bike back if it ever does find itself in the wrong hands. The GPS feature and the 4G data communication both require a 4G data subscription, which is provided complimentary for one year at the time of purchase.
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Of course, there’s no such thing as a theft-proof bicycle, but these types of smart features help riders get closer to that goal. Plus, as bike thieves become more aware of which e-bikes include built-in GPS or other theft deterrence features, hopefully those models will become less attractive targets.
The Pace 4 doesn’t only upgrade its intelligence. Its performance and comfort have also received their own improvements.
Powered by a 500W rear hub motor rated for a peak output of 864 watts and 60 Nm of torque, the Pace 4 provides decent power for smooth urban commuting and enjoyable leisure rides. According to Aventon, riders can expect consistent and reliable performance across various terrains and riding conditions.
It may not match the 750W continuous-rated motors we often see in the North American market, which usually output peak power in the low four figures of watts, but it should still provide good power and climbing performance on moderate hills.
The Pace 4 features a 36V 20Ah battery, which Aventon states can deliver a range of up to 70 miles (112 km) when ridden in ECO mode. Of course, few people actually ride solely in the lowest power mode, and so the real-world range is likely to be somewhat lower – especially for riders who make ample use of the throttle. But with just over 720 Wh of battery capacity, the Pace 4 is likely still ideal for extended city commutes, recreational rides, and weekend exploring. And with the included torque sensor, the pedal assist is more responsive, giving riders more reason to let go of the throttle and enjoy the pedal assist performance.
The 27.5×2.1″ urban tires will be most at home on pavement but can likely still handle fairly smooth trails. Whether for daily commuting or leisurely outings, the bike seems outfitted for a variety of use cases.
The Pace 4 lacks traditional suspension but the bike does include a suspension seat post offering 2 inches (50mm) of travel. This feature absorbs shocks and vibrations from rough roads, preventing them from traveling up through the saddle and into the rider’s rear, enhancing the riding experience. Complementing this is an ergonomic handlebar design aimed at promoting a relaxed, upright riding posture, reducing rider fatigue on longer trips and increasing overall comfort.
Neither of these can replace true front or rear suspension, but they go a decent way toward adding more comfort to the ride.
Aventon has also emphasized accessibility with the Pace 4. It features a step-through frame design that makes getting on and off the bike much easier than swinging a leg over the rear, helping the bike cater to riders of all ages and abilities. Available in two frame sizes and three colors of Flint, Mica, and Blue Steel (grey, black, and light blue), the Pace 4 also offers a bit of variation to help riders dial in the size and style closer to their tastes.
The new Aventon Pace 4 sticks with the company’s recent drive to push the boundaries of e-bike technology, combining smart connectivity, enhanced security features, modest performance, and some nods toward comfort. I’d imagine the bike would appeal to a broad range of riders if it wasn’t for the price, which feels fairly high to me. Plus, the base model doesn’t include a rack, fenders, or other commuter staples that will only elevate the price further. That being said, the Pace 4 launches at a time when e-bike prices are expected to arrive across the board, either slightly for models built in various Asian countries or significantly for models built in China.
But ignoring the price (as hard as that may be), I do like what I see here. It’s hard to compare to Class 3 e-bikes with more powerful 48V systems, but this isn’t designed to compete with those models. It’s a more modest, easier-going model. But for its intended audience, it comes with some nice features that we don’t often see elsewhere.
I really hope features like built-in tracking become more common across the board, as they’re hugely valuable for riders.
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British Columbia got its first 400 kW DC fast charger last week at Canadian C-store chain On The Run, but that’s not the good part. As part of a limited time offer, these chargers are FREE!
The Canadian convenience store chain just took the wraps off its new, ABB-developed, 400 kW chargers earlier this month, but they’re already planning to bring the ultra-fast 400 kW dispensers to at least four more locations in BC this spring, and have them online just in time for the summer road trip season – something On The Run hopes its customers will appreciate.
“The A400 charger delivers an enhanced customer experience, with reliability and performance from a 32-inch screen to higher power charging sessions and power sharing,” reads the company’s official announcement, via LinkedIn. “Download the Journie Rewards app to start the charge – free for a limited time.”
On The Run’s new 400 kW ABB DC fast chargers are compatible with CCS and CHAdeMO plugs, and can accommodate Tesla and other NACS-equipped vehicles with an adapter. That said, the company seems to imply that Tesla drivers in particular will have a maximum charging speed of “just” 50 kW, which feel hilarious (given the current state of affairs between Tesla and the Canadian government), but probably isn’t.
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In addition to the ABB A400 400 kW units shown here, On The Run locations also employ the ABB Terra 184 dispensers rated at 180 kW. On The Run plans similar deployments at the four BC locations mentioned above, as well as two more each in Quebec and Ontario slated to go live towards the end of this year.
Electrek’s Take
Tesla’s controversial CEO Elon Musk once mocked 350 kW charging speed as being “for a child’s toy,” despite the fact that, nearly nine years later, his own cars and Superchargers can barely make it to 325 kW while others have sailed right on past. I made fun of that fact on the Quick Charge episode shown, above – and, while I do think it’s funny and relevant, the much more relevant piece of news here is that companies like BP Pulse, Revel, and Wallbox are actively deploying 400 kW solutions, today (while others hit the same mark as far back as 2017).
Terawatt Infrastructure‘s first medium- and heavy-duty electric charging truck stop in California is now online, in Rancho Dominguez.
Located 12 miles north of the ports of Long Beach and Los Angeles, the private Rancho Dominguez site, which is shared among multiple fleets, will support electric trucking fleet operations in and out of the largest container ports in the US.
First customers include Dreaded Trucking, Hight Logistics, PepsiCo, Quick Container Drayage, Southern Counties Express, Tradelink Transport, and WestCoast Trucking & Warehousing.
Terawatt’s electric charging truck stop features 20 pull-through and bobtail DC fast charging stalls with a capacity of 7 megawatts (MW), enabling charging for up to 125 trucks per day using a simple reservations system. Terawatt’s site features a proprietary charge management system, in-house technicians, 24/7 customer service, and onsite parts management.
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“This launch underscores growing collaboration between enterprises, shippers, carriers, and charging infrastructure providers to advance sustainable technologies across logistics and transportation operations, especially in the medium and heavy-duty sectors,” said Neha Palmer, CEO and cofounder of Terawatt. Palmer added that the company will bring another charging site online in Rialto, California, in June.
Terawatt joined some of the world’s largest shippers and carriers in September 2024 to launch the I-10 Consortium heavy-duty EV operations pilot, the “first-ever US over-the-road electrified corridor.” Terawatt is providing charging infrastructure, including software, operations, and maintenance support at six of its owned charging hubs along the I-10 corridor.
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