Trivariate Research identified several major companies likely to see their profit margins contract by at least 1% in the next fiscal year. Companies that experienced more than 100 basis points of gross margin contraction underperformed their industry group average by over 15% in the past year, according to founder Adam Parker. Apple could see a 1.4% margin decline, while Oracle faces a contraction exceeding 6% and Altria Group more than 14%. The stakes are considerable for these valuations if these projections materialize.
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