Core Viewpoint - The price of lithium is increasing due to improving demand and decreasing inventory, with Albemarle's stock rising significantly as a result [1] Group 1: Analyst Upgrades - Albemarle received four analyst price target upgrades this week, ranging from $180 to $210, reflecting the company's strong fundamentals and improving end markets [1][2] - The combination of cost-cutting measures, a doubling in lithium carbonate prices over the past year, and a growing energy storage market positions Albemarle for significant profit increases by 2026 [2] Group 2: Financial Performance - The current stock price of Albemarle is approximately $189.51, with a market cap of $22 billion and a gross margin of 12.27% [3] - Analyst consensus predicts earnings per share for Albemarle to improve to $2.29 in 2026 from a loss of $0.84 in 2025, indicating a significant turnaround [3] Group 3: Market Dynamics - The lithium market experienced a boom due to increased demand from electric vehicle batteries, followed by a slump as automakers reduced investments due to lower-than-expected EV sales [3][5] - Major automakers like Ford and General Motors are increasing investments in battery manufacturing, while Tesla reports strong growth in its energy generation and storage business, contributing to a recovery in lithium demand [5] Group 4: Future Outlook - There is a strong expectation for recovery in the lithium market by 2026, which may lead to further upgrades in Albemarle's earnings estimates if lithium prices continue to rise [6]

Core Insights - The iShares National Muni Bond ETF (MUB) and the iShares Core US Aggregate Bond ETF (AGG) serve different investment strategies, with MUB focusing on U.S. municipal bonds and AGG covering a broader range of U.S. investment-grade bonds [1][2] Cost & Size Comparison - MUB has an expense ratio of 0.05% and an AUM of $42.0 billion, while AGG has a lower expense ratio of 0.03% and a significantly larger AUM of $136.5 billion [3][9] - The 1-year return for MUB is 1.9%, compared to AGG's 4.4%, indicating a higher yield from AGG [3] Performance & Risk Metrics - Over the past five years, MUB experienced a maximum drawdown of -11.88%, while AGG had a larger drawdown of -17.83% [5] - The growth of $1,000 invested over five years would result in $922 for MUB and $857 for AGG, showing MUB's relative stability [5] Investment Implications - AGG offers a yield of 3.9% that is fully taxable, while MUB provides a lower yield of 3.1% that is exempt from federal taxes, making MUB potentially more attractive for high earners in taxable accounts [9][10] - Investors in lower tax brackets or those using retirement accounts may prefer AGG for its higher taxable yield and broader diversification [10]

Core Insights - Serve Robotics is transitioning from a speculative venture to a mainstream alternative in delivery solutions, with over 2,000 delivery robots currently deployed [1][2] - The company is expanding its market presence across several U.S. cities and is moving beyond sidewalk delivery robots, although it remains under the coverage of fewer than 10 Wall Street analysts [2][4] Company Overview - Serve Robotics originated as a spinoff from Uber Technologies' robotics division, Postmates X, following Uber's acquisition of Postmates in 2020 [4] - The company's mission is to revolutionize last-mile delivery by utilizing sidewalk-navigating robots, which aim to lower delivery costs and reduce emissions compared to traditional methods [4] Technology and Innovation - Serve's robots are equipped with advanced sensors and machine learning capabilities, allowing them to safely navigate urban environments and interact with pedestrians [5] - The company is advancing its autonomous vehicle technology to improve the sustainability and efficiency of urban delivery [5] Recent Developments - Serve Robotics announced the acquisition of Diligent Robotics, which provides AI-powered robot assistants for the healthcare sector, marking its first foray into indoor environments [8] - Diligent's robot, Moxi, is already operational in over 25 hospital facilities across the U.S., supporting healthcare staff [9] Market Potential - The global humanoid robot market is expected to grow from $2.92 billion in 2025 to $15.26 billion by 2030, with a compound annual growth rate (CAGR) of 39.2%, driven by increased adoption in various sectors including healthcare [9] Analyst Sentiment - Despite being followed by a limited number of analysts, Serve Robotics has a positive consensus rating, with some analysts projecting a price target of $26 per share, indicating significant upside potential [7]

Core Insights - Energy companies are positioned as attractive investments for those looking to diversify their portfolios in the AI sector, particularly due to their solid dividend yields [1][2] Group 1: Energy Consumption and AI - AI is projected to significantly increase energy consumption, with data centers currently using 4.4% of all energy generated in the U.S. and expected to consume as much electricity as 22% of all U.S. households by 2028 [2] - The demand for energy is anticipated to rise, creating opportunities for energy companies that also offer dividends [2] Group 2: Constellation Energy - Constellation Energy is the largest nuclear power producer and clean energy provider in the U.S., contributing about 10% of the country's clean energy [4] - The company has a revenue CAGR of 3.14% over the past three years, with a gross profit margin of 20.13% and a net income margin of 11% [5] - Constellation has partnered with Microsoft to revitalize the Three Mile Island nuclear plant, which will enhance its nuclear capacity and secure a long-term buyer for its electricity, projecting an EPS growth rate of 10%-13% through 2030 [6] Group 3: NextEra Energy - NextEra Energy operates a 76-gigawatt capacity, with 65% derived from renewable and nuclear sources, and has a revenue CAGR of 9.85% over the past three years [8][10] - The company has partnered with Alphabet to bring the Duane Arnold Energy Center back online, which is expected to contribute to an 8% EPS CAGR through 2035 [9] - NextEra has a gross margin of 62% and a net income margin of 24.73%, with a dividend yield of 2.71% that has been growing for 30 years [10] Group 4: Duke Energy - Duke Energy operates in a strategic location between Virginia and Georgia, which are key states for new data centers, with Virginia's energy demand projected to grow by 153% by 2040 [13][15] - The company has a revenue CAGR of 5.29%, a gross margin of 52.4%, and a net margin of 15.97%, with a dividend yield of 3.57% that has been growing for 15 years [16] - Duke is well-positioned to meet the increasing energy demands from Virginia, which has become the largest energy importing state in the U.S. [15]

Core Insights - Courant Investment Management has completely exited its position in CarMax, selling 247,520 shares for an estimated value of $11.11 million, indicating a significant shift in investment strategy [1][2]. Company Overview - CarMax operates a nationwide network of used vehicle retail stores, generating revenue through vehicle sales, financing, and ancillary services, with a total revenue of $25.94 billion and a net income of $457.84 million [4]. - As of January 21, CarMax shares were priced at $48.75, reflecting a 38.7% decline over the past year, significantly underperforming the S&P 500 by 52.3 percentage points [3][4]. Recent Performance - In the third quarter, CarMax reported a 50% year-over-year decline in net earnings to $62 million, with earnings per share (EPS) dropping from $0.81 to $0.43, attributed to softer unit volumes and margin pressures [6]. - Comparable store used unit sales decreased by 9%, although CarMax Auto Finance income increased by 9% to $174.7 million, indicating challenges in the core retail operations [6]. Management Actions - The company is implementing cost-cutting measures, aiming for at least $150 million in reductions in selling, general, and administrative expenses (SG&A) by fiscal 2027, and has repurchased $201.6 million of stock in the last quarter [8].

Core Viewpoint - The Vanguard Growth ETF (VUG) has consistently outperformed the S&P 500 and is expected to continue this trend due to its focus on growth stocks and the performance of key technology companies known as the "Magnificent Seven" [2][10]. Group 1: ETF Performance - In 2025, the Vanguard Growth ETF rose by 18.9%, surpassing the S&P 500's gain of 16.4% [2]. - The Vanguard Growth fund has outperformed the S&P 500 in 15 of its 22 years on the market, indicating a strong historical performance [10]. - Over the past decade, the Vanguard Growth fund has gained 390%, while the S&P 500 has increased by 265% [6]. Group 2: Fund Composition - The Vanguard Growth ETF mirrors the CRSP US Large Cap Growth Index, focusing on companies with faster-growing sales and profits, currently holding 151 companies [4]. - The fund is heavily weighted towards technology, with 65.8% of its holdings in tech stocks, which have been the best-performing growth stocks [6]. - The "Magnificent Seven" stocks constitute close to 58% of the fund, making their performance critical to the ETF's overall success [8]. Group 3: Key Stocks and Market Trends - The "Magnificent Seven" includes major companies like Nvidia (12.7%), Apple (11.9%), and Microsoft (10.6%), which are pivotal for the fund's performance [11]. - Concerns exist regarding the potential overvaluation of the "Magnificent Seven," but positive trends in AI spending and technology could support their growth [8][9]. - If investors see tangible returns from increased AI spending, the "Magnificent Seven" could perform well, but impatience among investors could lead to struggles [9].

Core Viewpoint - Fidelity Total Bond ETF (FBND) offers a higher yield and broader sector exposure compared to iShares 3-7 Year Treasury Bond ETF (IEI), but comes with a higher annual cost and greater historical risk [1][2]. Cost and Size Comparison - FBND has an expense ratio of 0.36%, while IEI has a lower expense ratio of 0.15% [3][4]. - As of January 9, 2026, FBND's one-year return is 2.5%, compared to IEI's 3.0% [3]. - FBND provides a dividend yield of 4.6%, whereas IEI offers a yield of 3.5% [3][4]. - The assets under management (AUM) for FBND is $23.4 billion, while IEI has an AUM of $17.7 billion [3]. Performance and Risk Comparison - Over the past five years, FBND has a maximum drawdown of -17.23%, compared to IEI's -14.05% [5]. - An investment of $1,000 in FBND would have grown to $862 over five years, while the same investment in IEI would have grown to $903 [5]. Investment Strategy and Holdings - FBND includes over 4,400 holdings, primarily consisting of U.S. Treasuries, investment-grade corporate bonds, and mortgage-backed securities, with up to 20% allocated to high-yield corporate bonds and emerging market debt [7][10]. - IEI exclusively invests in U.S. Treasury bonds with maturities between three and seven years, avoiding corporate and sector risks [8][10]. Investor Guidance - Conservative investors seeking government-backed safety should consider IEI, while income-focused investors willing to accept moderate corporate credit risk for higher yields may prefer FBND [12].

Core Insights - Systelligence disclosed a new position in the Vanguard Russell 2000 Growth ETF (VTWG), acquiring 72,824 shares valued at approximately $17.19 million, representing 3.27% of its reportable U.S. equity assets under management at quarter-end [2][3]. ETF Overview - The Vanguard Russell 2000 Growth ETF (VTWG) tracks the Russell 2000 Growth Index, providing diversified small-cap growth exposure through a cost-efficient, index-based strategy [1][6]. - As of January 21, the ETF's price was $255.99, reflecting a 16% increase over the past year, outperforming the S&P 500 by 3.3 percentage points [3][4]. - The ETF has an Assets Under Management (AUM) of $1.34 billion and a yield of 0.59% [4]. Investment Strategy - The ETF aims to track the performance of the Russell 2000 Growth Index, focusing on a broad basket of U.S. small-cap growth equities [9]. - The portfolio primarily consists of small-cap growth stocks, closely mirroring the index's sector and security weightings, with a low expense ratio of 0.10% [11]. Market Positioning - The addition of VTWG to Systelligence's portfolio indicates a strategic shift towards small-cap growth, suggesting a rebalancing away from larger-cap stocks that have dominated returns [10][12]. - Historically, small-cap growth stocks benefit when earnings breadth improves and capital rotates down the market-cap stack, rather than when leadership narrows [12].

Core Viewpoint - President Trump's threat to ban dividends and stock buybacks for defense companies has created uncertainty in the defense stock market, particularly affecting companies that rely heavily on these financial practices [1][2]. Group 1: Executive Order and Its Implications - The executive order aims to address "exorbitant and unjustifiable" executive compensation and mandates that defense contractors prioritize investment in production capacity over shareholder returns [2][5]. - Defense Secretary is tasked with identifying underperforming contractors and providing them with a 15-day window to submit a plan to resolve identified issues before any punitive actions are taken [7][8]. - Future contracts will include clauses that could ban dividends and stock buybacks if companies fail to meet performance standards or prioritize government contracts [8][9]. Group 2: Impact on Defense Stocks - The average dividend yield for the ten largest defense contractors is approximately 1%, which is slightly lower than the S&P 500 average of 1.2% [11]. - Lockheed Martin and L3Harris are highlighted as the largest stock buyback companies and are considered the most vulnerable to potential dividend bans [12]. - The defense stocks most likely to be affected include Lockheed Martin (2.3% yield, $2.4 billion buybacks), General Dynamics (1.6% yield, $0.6 billion buybacks), and L3Harris (1.4% yield, $1 billion buybacks) [11].

Core Viewpoint - 3M has shown strong performance in 2025 despite challenging market conditions, making its stock attractive for investors [1] Group 1: Company Performance - 3M's stock price increased by 24% in 2025, outperforming the S&P 500 index, which gained 16.4% [3] - The company achieved organic sales growth of 2.1% in 2025, which was at the low end of management's guidance of 2% to 3% [3] - Operational improvements under CEO Bill Brown have led to better key metrics, including on-time deliveries and overall equipment effectiveness [4][6] Group 2: Operational Improvements - Key operational metrics have improved significantly from 2024 to 2025, including: - On-time in full deliveries (OTIF) increased from 87% to over 90% [5] - Overall equipment effectiveness (OEE) rose from 60% to 63% [6] - Cost of poor quality decreased from 7% to 6% [6] - New Product Vitality Index (NPVI) improved from 11% to 13% [6] - New product launches increased from 169 to 284, with expectations of 350 in 2026 [6] - Operating profit margin expanded to 23.4% in 2025 compared to 21.4% in 2024 [6] Group 3: Future Outlook - Management's guidance for 2026 indicates a modest organic sales growth of 3%, amid a decelerating industrial production index [7] - Earnings-per-share guidance for 2026 is set between $8.50 and $8.70, with implied free cash flow guidance of at least $4.6 billion [9] - The stock is valued at 18.1 times earnings and 18 times free cash flow for 2026, which are considered attractive for a mature industrial company [9][10] - A low double-digit return on the stock is anticipated, with potential for better performance if economic conditions improve [10]