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Core Viewpoint - Yeti Holdings' stock has increased by 44% since reporting Q3 2025 earnings, despite a significant decline in gross margins and operating margins, indicating market optimism about the company's future potential [1]. Financial Performance - Yeti's stock is currently trading at approximately $48 per share, nearing levels not seen since December 2023 [1]. - The company reported a gross margin decline from 58.2% to 55.9% and adjusted operating margins at 13.7%, the lowest in years [1]. - Current gross margin stands at 57.79% [2]. Market Dynamics - The decline in gross margin is attributed to tariff impacts on China-sourced goods and a shift in product mix, with higher-margin drinkware sales declining by 4% while lower-margin coolers grew by 12% [5][6]. - Drinkware now constitutes about 54% of sales, down from previous levels, while coolers account for 44% [6]. Supply Chain and Manufacturing - Yeti is reducing its reliance on Chinese manufacturing, projecting that exposure will be less than 5% of cost of goods sold by 2026 [5]. - The company is diversifying its supply chain across countries like Vietnam, the Philippines, and Mexico [5]. Growth Opportunities - Direct-to-consumer sales have increased from 8% to 60% of total revenue over the past decade, providing a scalable platform for growth [8]. - International sales grew by 14% in Q3 2025, now representing about 20% of revenue, with significant growth potential in Asia [9]. Strategic Initiatives - Yeti is targeting new customer segments beyond outdoor enthusiasts, including partnerships in sports and entertainment [10]. - The company has acquired Helimix for $38 million to expand into the sports nutrition market [10]. Competitive Landscape - Competition in the drinkware segment has intensified, with rivals like Stanley gaining market share among younger consumers [11]. - The domestic tumbler category shows signs of saturation, which may prolong pressure on gross margins [11]. Financial Health and Shareholder Returns - Yeti has repurchased $150 million of stock in Q3 2025 and raised its buyback target for the year from $200 million to $300 million, indicating strong cash generation [13]. - The company expects to generate $200 million in free cash flow for 2025 and has a solid balance sheet with approximately $90 million in net cash [14]. Valuation - At around $48 per share, Yeti trades at about 19.5 times management's 2025 earnings and free cash flow expectations, which is considered reasonable given the company's growth potential [15].

Core Viewpoint - VICI Properties offers a high dividend yield, currently over 6%, which is significantly above the S&P 500 average of 1.2%, making it an attractive option for passive income investors [1]. Group 1: Dividend Stability and Growth - VICI Properties owns a diverse portfolio of experiential real estate, including casinos and entertainment complexes, and leases these properties under long-term, triple-net leases, ensuring stable cash flows [2]. - The company pays out approximately 75% of its stable cash flow in dividends, with a history of increasing its dividend for eight consecutive years at a compound annual growth rate of 6.6%, outpacing the 2.3% average of other NNN-focused REITs [5]. Group 2: Investment Strategy and Growth Potential - VICI Properties engages in sale-leaseback transactions, recently completing a $1.2 billion acquisition of seven gaming properties, which enhances its cash flow to support dividend payments [3]. - The company has a significant total addressable market opportunity exceeding $400 billion for U.S. gaming properties, positioning it for continued growth and the ability to increase dividends [6].

Core Viewpoint - Micron Technology is experiencing significant momentum, driven by the increasing demand for high-bandwidth memory (HBM) in artificial intelligence (AI) applications, with a potential for further growth in its stock price [2][4][11] Company Performance - Micron's stock has surged over 260% in the last 12 months, outperforming other AI stocks [2] - Current market capitalization stands at $450 billion, with a price range of $390.76 to $412.22 for the day [3] - The company has a gross margin of 45.53% and a dividend yield of 0.12% [3] Market Dynamics - The total addressable market for HBM is projected to grow from approximately $35 billion last year to around $100 billion by 2028, reflecting a compound annual growth rate of about 40% [6] - Strong demand for HBM is expected to persist, with supply constraints likely continuing beyond 2026 [6][7] Demand Drivers - AI applications are expanding beyond data centers to edge devices, including smartphones and vehicles, increasing the need for memory [3][4] - Developers of large language models are increasing context windows, which require more memory, specifically HBM [4][5] Earnings Potential - Analysts predict that Micron's earnings could nearly quadruple over the next two years due to favorable supply-demand dynamics [8] - The stock is currently trading at 12.5 times forward earnings, with a low price-to-earnings-to-growth (PEG) ratio of 0.7, indicating potential for significant growth [9] Analyst Sentiment - Despite a strong performance, the consensus 12-month price target for Micron is 12% below the current share price, reflecting a cautious outlook among analysts [10] - 37 out of 43 analysts rated Micron as a "buy" or "strong buy," indicating overall positive sentiment despite the lower price target [10]

Market Overview - The U.S. stock market is experiencing volatility due to President Trump's tariff threats, the Federal Reserve's interest rate decision, and earnings reports from major tech companies [1][2][11] - The S&P 500 index had a 2% increase before a drop of over 2% following tariff announcements [1] Federal Reserve Interest Rate Decision - The Federal Open Market Committee (FOMC) is expected to maintain the federal funds rate at 3.5% to 3.75% during its meeting on January 28 [3] - The likelihood of a 25-basis-point cut is only 4% according to CME Group's FedWatch tool [3] - Recent economic data suggests a resilient jobs market, with the unemployment rate improving to 4.4% in December from 4.5% in November [4][5] Earnings Reports from "Magnificent Seven" - Four companies from the "Magnificent Seven" will report earnings this week: Tesla, Microsoft, Meta Platforms, and Apple [6][11] Tesla - Expected revenue for Tesla in Q4 is $24.9 billion, a 3% decrease, with non-GAAP earnings projected to drop 45% to $0.40 per diluted share [6] - Focus will be on CEO Elon Musk's comments regarding physical AI initiatives [7] Microsoft - Anticipated revenue increase of 15% to $80.3 billion, with non-GAAP earnings expected to rise 20% to $3.86 per diluted share [8] - Investors will pay attention to Azure's revenue growth and generative AI adoption [8] Meta Platforms - Expected revenue growth of 21% to $58 billion, with non-GAAP earnings projected to increase 3% to $8.23 per diluted share [9] - Investors are looking for continued trends in engagement and advertising conversion rates due to AI investments [9] Apple - Expected revenue increase of 11% to $138 billion, with GAAP earnings also projected to rise 11% to $2.67 per diluted share [10] - Market focus will be on iPhone sales and updates regarding AI innovation [10]

Core Viewpoint - Investors interested in gold may find TRX Gold Corporation an attractive option due to its significant stock price increase and the overall rise in gold prices, which have surged 87% since the start of 2025, with TRX Gold's stock rising 178% since September [1]. Group 1: Company Performance - TRX Gold has a market capitalization of $327 million and has seen its stock price increase by 12.87% to $1.14, with a 52-week range of $0.27 to $1.14 [2]. - The company reported an average gold price of $3,860 per ounce in the first quarter, leading to an increase in its adjusted EBITDA margin from 35.2% to 52.5% [4]. - TRX Gold generated record revenue of $25.1 million in the first quarter and is transitioning from a negative to a positive working capital position, aiming to fund future expansions through operational cash flow rather than equity sales [7]. Group 2: Operational Risks - TRX Gold operates primarily from a single project, the Buckreef Gold Project in Tanzania, which exposes the company to risks such as technical failures, weather events, and political issues [5][6]. - The company operates as a joint venture with the Tanzanian government, which may limit its control over certain operational decisions [6]. Group 3: Future Outlook - The capital cost for the planned plant expansion is estimated at $30 million, which the company expects to finance entirely through internally generated cash flow over the next 18 to 24 months [8]. - TRX Gold is not hedged, providing it with full exposure to rising gold prices, making it a speculative investment for those bullish on gold [9].

Core Viewpoint - AppLovin is positioned for potential strong growth in 2026 despite facing ongoing short-seller allegations and a recent stock decline [2][5][7] Company Overview - AppLovin has been accused by short-sellers of installing apps without user consent and being involved in money laundering linked to criminal syndicates [2][3] - The company has maintained strong growth, with a revenue increase of 68% and adjusted EBITDA growth of 79% in the last quarter [5] Financial Performance - AppLovin's stock is currently trading at a forward price-to-earnings (P/E) ratio of just under 38, which is considered more attractive than previous valuations [5] - The company has a market capitalization of $177 billion and a gross margin of 82.06% [4] Growth Opportunities - AppLovin has introduced a self-serve ad manager to attract small and midsize advertisers and is expanding its platform to international markets [6] - The management forecasts a 20% to 30% annual growth in the gaming market, driven by industry growth and improvements in its AI-based advertising technology [6] Investor Sentiment - Notable investors, including billionaire hedge fund managers, hold significant stakes in AppLovin, indicating confidence in the company's potential [4]

Core Insights - Oracle's backlog increased by $68 billion in Q2 of fiscal 2026, resulting in a total remaining performance obligations (RPO) of $523 billion, positioning the company for significant revenue growth in the AI sector [1][2] - The company's revenue grew 14% year over year, reaching $16 billion in the same quarter, with a notable 438% increase in backlog attributed to new commitments from major clients like Meta and Nvidia [3][5] Financial Metrics - Current market capitalization of Oracle is $509 billion, with a stock price of $177.16, and a gross margin of 65.40% [2] - The stock has experienced a 5% decline over the past year, but has gained 200% over the last five years, outperforming the S&P 500's 80% gain [5] Competitive Landscape - Oracle faces competition from major players such as Amazon Web Services, Microsoft Azure, and Google Cloud, which adds pressure to convert its backlog into revenue [7] - The company's forward price-to-earnings (P/E) ratio has decreased from the low 30s to approximately 26, indicating a potential buying opportunity for investors [8] Operational Considerations - The substantial backlog represents multiple years of revenue, but fulfilling these orders will require significant capital investment in data centers and infrastructure, raising concerns among investors [6]

Core Insights - Micron has experienced significant stock growth, nearly doubling in value over the last three months with a 93% increase, and a 165% rise since last September [2][4] - The company is benefiting from a supply crunch in the memory subsector, leading to increased prices and a favorable market for major players like Micron [4] - Micron's latest earnings report indicates a $100 billion total addressable market (TAM) for high-bandwidth memory (HBM) expected to be reached by 2028, two years earlier than previously anticipated [5] Industry Dynamics - The compound annual growth rate for HBM is projected at 40% through 2028, which may alleviate concerns regarding the cyclicality of the memory sector [5] - Micron's fiscal second quarter guidance shows expected revenue of approximately $18.7 billion, significantly above the consensus estimate of $14.3 billion, with earnings per share forecasted at a midpoint of $8.42, nearly double the expected $4.71 [6] - The ongoing memory shortage is expected to favor Micron and its peers, as indicated by Intel's struggles with growth due to the same shortage [7] Valuation Perspective - Micron is currently valued as a high-risk, cyclical stock, trading at a forward P/E of 12 based on fiscal 2026 consensus [8] - Given the low valuation and persistent memory shortage amid the AI boom, Micron is viewed as a strong buy for 2026 [8]

Core Insights - Atwater Malick disclosed a purchase of 42,862 shares of the iShares MSCI ACWI ex U.S. ETF, valued at approximately $2.84 million, indicating a strategic investment in international equity markets [1][2]. Fund Overview - The iShares MSCI ACWI ex U.S. ETF has an Assets Under Management (AUM) of $7.87 billion and a current price of $70.15, reflecting a 32% increase over the past year [4][5]. - The ETF offers a yield of 2.8% and has achieved a total return of 32.48% over the last year, making it an attractive option for investors seeking international diversification [4]. Investment Strategy - The fund aims to track the MSCI ACWI ex U.S. Index, providing exposure to both developed and emerging markets outside the United States, with at least 80% of assets invested in component securities of the underlying index [7]. - The portfolio consists of approximately 1,750 large- and mid-cap companies, with significant exposure to financials, industrials, and global technology sectors [9]. Recent Transactions - Following the recent purchase, the fund's holding in ACWX rose to 4.2% of its 13F reportable assets, indicating a strategic allocation towards international equities [2][3]. - The transaction appears to serve as a counterweight to existing U.S. mega-cap holdings, suggesting a balanced approach to asset allocation amid changing market conditions [6].