Core Viewpoint - Popular, Inc. is a leading regional financial institution with a strong presence in Puerto Rico and expanding operations in select U.S. and Caribbean markets, leveraging a diversified product offering and extensive branch network to drive customer engagement and deposit growth [1] Group 1: Company Overview - Popular serves individuals, small and medium-sized businesses, and institutional clients across Puerto Rico, the U.S. mainland, and the British Virgin Islands [2] - The company generates revenue primarily through net interest income from lending activities and fee-based services such as insurance, leasing, and brokerage operations [2] Group 2: Recent Transaction - Alejandro M Sanchez, Director of Popular, reported the sale of 1,451 shares of common stock in an open-market transaction on February 26, 2026, with shares priced around $140.85, amid a one-year total return of 45.95% [3][5][6] - The sale accounted for 29.83% of Sanchez's direct holdings, reducing his ownership from 4,865 to 3,414 shares, marking his first reported open-market sale of common stock [4][6] Group 3: Financial Performance - Popular had a strong year with a GAAP net income of approximately $833.1 million in 2025, up from $614.2 million in 2024, representing a 27% increase in adjusted net income [6] - Loans and deposits grew while credit quality improved, and the bank repurchased over $500 million worth of shares, authorizing an additional $500 million repurchase program and raising its quarterly dividend to $0.75 per share, yielding around 2.2% [7] Group 4: Market Outlook - Analysts have raised their average price target for Popular stock to $170 from $161, as a more normalized yield curve improves profitability outlook for regional banks, with the stock price up 7.8% year to date as of March 24 [8]

Core Viewpoint - The Vanguard Dividend Appreciation ETF (VIG) is designed for investors seeking reliable income through dividends rather than maximum growth, showing strong performance during market downturns despite lagging behind broader indexes during bull markets [2][4][5]. Performance Analysis - The Vanguard Dividend Appreciation ETF has underperformed compared to the S&P 500 during strong market years, ranking in the bottom 20% of large-blend ETFs in 2021 and trailing the S&P by 12 and 8 percentage points in 2023 and 2024 respectively [3]. - In contrast, during the bear market of 2022, the ETF's losses were only half of those experienced by the S&P 500, resulting in a 10 percentage point outperformance, placing it in the top 10% of large-blend funds for that year [4]. - Over the past decade, the ETF has delivered total returns of 12.26% per year, which lags the S&P 500 by 1.5 to 2 percentage points annually, but remains impressive in absolute terms [5]. Dividend Distribution - In 2025, the Vanguard Dividend Appreciation ETF distributed approximately $3.56 per share, yielding around 1.7%, which is higher than the 1.1% yield from S&P funds and 0.5% from Nasdaq 100 index trackers [6][7]. - The ETF's dividend payments have increased significantly, with a 33% rise from $2.67 per share in 2021 to the current distribution [8]. Future Outlook - The future performance of the Vanguard Dividend Appreciation ETF will be analyzed in subsequent articles, focusing on its positioning and alignment with investor goals [9].

Core Insights - Lululemon and DocuSign have shown signs of recovery from their 52-week lows after both companies exceeded Q4 expectations, with LULU rising over 3% to $165 and DOCU increasing more than 2% to $48 [1] Lululemon (LULU) - Q4 sales increased nearly 1% year over year to $3.64 billion, surpassing estimates of $3.58 billion by 1.65%. Earnings per share (EPS) were $5.01, exceeding expectations of $4.76 by 5.25%, although down from $6.14 in the prior-year quarter [2] - International markets contributed significantly to Lululemon's strong Q4 results, indicating successful global expansion. The company is focusing on new products and enhancing customer experience, which is viewed positively by investors [3] - Concerns remain regarding the restoration of its core North American market, leading to the resignation of former CEO Calvin McDonald. The company is currently searching for a new CEO, with two senior executives serving as interim Co-CEOs [4] DocuSign (DOCU) - Q4 sales rose nearly 8% to $836.86 million, exceeding estimates of $828.2 million by 1.05%. EPS was $1.01, up from $0.86 a year ago and surpassing expectations of $0.95 by 6.32% [6] - DocuSign surpassed $1 billion in Billings for the first time, a key metric indicating future revenue and annual recurring revenue (ARR) growth [7] - The stock's decline is attributed to market skepticism regarding the sustainability of its expansion rather than operational efficiency [8] Valuation Analysis - Both Lululemon and DocuSign have consistently exceeded Zacks EPS Consensus for over 10 consecutive quarters. They are trading at forward price-to-earnings (P/E) multiples of 12X and 11X, respectively, which are significantly lower than the S&P 500's average of 22X [9][10] - DocuSign appears undervalued relative to its growth potential, with a PEG ratio of 1X or less, while Lululemon's PEG ratio stands at 9.9X, suggesting it may be overvalued [13] Future Outlook - Both companies may benefit from short-term sentiment following their Q4 earnings beats, but their growth trajectories have shifted towards single-digit growth compared to previous double-digit growth [14] - Analysts project that DocuSign could achieve over 10% EPS growth next year, while Lululemon's growth prospects are less optimistic until a new CEO is appointed [15]

Core Viewpoint - Popular's CEO, Javier D. Ferrer, indicates that the Puerto Rico economy is experiencing "momentum" with a broad-based recovery, which is expected to support loan growth and profitability initiatives for the bank [4][6]. Economic Recovery - The recovery in Puerto Rico is described as broad-based, with strengths noted in construction, hospitality, and manufacturing sectors [2][6]. - Puerto Rico's economy has shown resilience, with low unemployment and a labor participation rate now in the "low 40s," approximately 44% to 45%, which is about five percentage points higher than in previous years [3][4]. Onshoring and Investment - The post-pandemic trend of onshoring is yielding tangible results for Puerto Rico, with over $2.6 billion in new investments announced last year and close to 5,000 direct jobs created [7]. - Improved relations between the current governor and the White House are also contributing positively to the economic landscape [7]. Demographics and Labor Market - Outmigration from Puerto Rico appears to have leveled off, with indications that talented workers are interested in returning, particularly for high-paying, high-tech roles [8]. - Housing affordability remains a challenge, as building new homes is expensive and projects take time to complete [8]. Capital Strategy and M&A - Popular is maintaining a conservative capital posture, shaped by past economic shocks, and plans to return excess capital through share repurchases of about $150 million per quarter and dividend increases [5][12]. - The bank is open to targeted M&A opportunities, particularly FDIC-assisted deals and portfolio acquisitions, but is not pursuing large whole-bank deals at this time [5][15]. Government Deposits - Popular holds approximately $18 billion to $20 billion in Puerto Rico government deposits across around 2,000 accounts, but the timing of any decline in these balances is difficult to forecast due to ongoing reconstruction and developments related to the Puerto Rico Electric Power Authority (PREPA) [5][16]. Future Outlook - The bank expects a good year ahead, with loan growth anticipated, although projections have been tempered compared to the previous three to four years [14]. - Ferrer emphasizes the importance of sustainable profitability and the bank's commitment to transforming its operations to strengthen profitability across various business lines [13][18].

Group 1 - The company invests thousands of hours and over $100,000 annually to identify profitable opportunities, resulting in over 500 five-star reviews from members experiencing real results [1] - Jussi Askola, President of Leonberg Capital, is a recognized expert in REIT investing, having authored award-winning academic papers and built relationships with top REIT executives [1] - The investment group High Yield Landlord offers features such as three portfolios (core, retirement, international), buy/sell alerts, and a chat room for direct access to analysts [1]

Economic Outlook - The Puerto Rican economy is showing positive momentum and has not slowed down despite global uncertainties [1] - Current economic indicators reflect low unemployment and a high number of employed individuals [1] Company Positioning - The company is well-positioned to benefit from the ongoing economic growth in Puerto Rico [1] U.S. Economic Influence - The health of the U.S. economy is considered important for the Puerto Rican economy, although current local economic performance remains strong [1]

Summary of Popular, Inc. Conference Call Company Overview - **Company**: Popular, Inc. (NasdaqGS: BPOP) - **Total Assets**: Approximately $75 billion - **Market Capitalization**: Around $8.5 billion - **CEO**: Javier D. Ferrer, who has been with the company since 2015 Economic Context - **Puerto Rican Economy**: - The economy is experiencing momentum with low unemployment and a high employment rate, despite a declining population. The participation rate is reported at 44%-45%, which is an increase of 5% from previous years [4][5]. - Key sectors contributing to growth include construction, hospitality, and manufacturing [5]. - The economy has recoupled with the U.S. economy after a period of decoupling since 2006 due to the loss of tax benefits for U.S. companies operating in Puerto Rico [5][6]. Investment and Job Growth - **Onshoring Trend**: - Puerto Rico is benefiting from onshoring, with over $2.6 billion in new investments announced last year, creating close to 5,000 direct jobs [11]. - The relationship between the local government and the U.S. federal government has improved, aiding economic development [13]. Population Trends - **Population Dynamics**: - The outmigration trend has leveled off, with anecdotal evidence suggesting a desire among young professionals to return to Puerto Rico, particularly in high-paying and tech jobs [14][18]. - Housing affordability remains a challenge, but government initiatives are in place to provide tax exemptions for young professionals [19][21]. Regulatory Environment - **Basel III Compliance**: - Basel III regulations are not yet applicable to Popular, Inc., but the company is monitoring regulatory developments closely [22][23]. - The bank emphasizes a conservative approach to capital management, maintaining a CET1 ratio of approximately 15.7%, significantly above the required 7% [34][38]. Capital Management - **Capital Strategy**: - The bank is focused on optimizing its capital stack and has initiated a share repurchase program of around $150 million per quarter [41][44]. - The importance of sustainable profitability is emphasized, with a focus on returning value to shareholders through dividends and share buybacks [43][60]. M&A Strategy - **Acquisition Outlook**: - The company is open to FDIC-assisted transactions and niche business acquisitions but is currently focused on internal transformation rather than large-scale mergers [67][78]. - The competitive landscape in Puerto Rico is acknowledged, with a need to earn customer trust daily [81][82]. Government Deposits - **Government Relationship**: - Popular, Inc. manages approximately $18-$20 billion in deposits from the Puerto Rican government, which is a complex relationship involving over 2,000 accounts [113][118]. - The bank has been successful in servicing these deposits, although predicting future levels remains challenging [118][124]. Future Outlook - **2026 Projections**: - The company expects a good year in 2026, with tempered loan growth projections but positive credit conditions [161][164]. - The ongoing geopolitical situation, particularly in the Middle East and Venezuela, is noted as a potential influence on the Puerto Rican economy [166][170]. Key Takeaways - Popular, Inc. is well-positioned in the recovering Puerto Rican economy, with a strong focus on sustainable profitability and capital management. - The bank is actively engaging in community development and maintaining a competitive edge in a challenging market. - The leadership emphasizes a long-term commitment to Puerto Rico and its economic future, while also exploring growth opportunities outside the island.

Core Viewpoint - The Schwab U.S. Dividend Equity ETF has rebounded significantly in 2026, becoming the top-performing U.S. dividend ETF after a challenging period from 2023 to 2025 [1][4]. Performance Overview - The ETF has grown to over $85 billion in assets, making it the second largest dividend ETF globally, with eight consecutive years of strong performance in the top one-third of Morningstar's Large Value category [2]. - Despite its previous success, the ETF underperformed during the tech-driven market from 2023 to 2025, particularly due to overweights in energy and consumer staples, leading to bottom-quartile performance [3]. Sector Allocation - In 2026, the ETF's allocation is well-aligned with market trends, with nearly 40% of its investments in energy (20%) and consumer staples (19%) [6][7]. - Energy stocks have increased by approximately 27% this year, while consumer staples have risen by 15%, significantly contributing to the fund's returns [7]. Investment Strategy - The ETF maintains a deep value tilt with a price-to-earnings ratio of 18, which is favorable compared to the Schwab U.S. Large Cap ETF's P/E of 28 [9]. - The fund's underweights in the four worst-performing sectors—financials, technology, consumer discretionary, and communication services—position it advantageously in the current market [10]. Fund Characteristics - The Schwab U.S. Dividend Equity ETF focuses on large, financially healthy, cash-generating companies, which tend to perform well during market stress [11].

Core Insights - CoreWeave Inc (NASDAQ:CRWV) stock has decreased by 2.7% to $72.76 despite Oppenheimer initiating coverage with an "outperform" rating and a price target of $140, highlighting the company's strong positioning in the hyperscaler market and significant total addressable market (TAM) opportunity in the infrastructure-as-a-service (IaaS) sector [1] - Bernstein has initiated coverage on CRWV with a "sell" rating and a price target of $56, citing substantial overvaluation risks, coinciding with a fraud class action lawsuit filed against the company and a mixed response to its Q4 report [2] - The stock has a support level around $70 and has experienced a decline of approximately 50% over the past nine months, with today's drop testing its year-to-date breakeven level [2] Analyst Sentiment - Prior to recent adjustments, the majority of analysts were bullish, with 17 out of 30 covering analysts recommending a "buy" or "strong buy," and the average 12-month price target being $122.16, representing a 68% premium to current levels [3] - If the prevailing bullish sentiment begins to shift, it could lead to additional challenges for the stock [3]

Tesla - Tesla's stock price reflects optimism about future AI and robotics developments rather than its current EV operations, with a significant decline in automobile deliveries expected in 2025 [4] - Analysts at GLJ believe the market is overly optimistic about the adoption of Tesla's humanoid robots, estimating a 15% to 20% chance of successful commercialization, which is not aligned with current stock pricing [5] - The expectation for Tesla to become a major ride-hailing provider faces challenges, as attracting ridership from existing platforms has proven difficult for competitors [6] - GLJ Research has a sell rating on Tesla with a 12-month price target of $25.28, indicating a 94% downside from the current share price of approximately $409 [7] - Analysts predict Tesla's EV deliveries will recover to 1.75 million units by 2026, although this may be impacted by a shift in production capacity towards Optimus robots [8] - Tesla's current valuation metrics, including a forward P/E ratio of about 200 and a price-to-sales ratio of about 15, suggest that significant future growth in robotaxis and Optimus robots is necessary to justify current prices [9] Palantir - Palantir has experienced strong revenue growth and improved profitability, driven by its AI platform, which enhances data analytics capabilities [10] - Management anticipates continued momentum, projecting revenue growth of 61% for the current year, supported by a significant increase in U.S. commercial remaining deal value [11] - Despite impressive results, challenges exist, including a decline in government contract value and uncertainty regarding sustained growth in the commercial segment [13] - Palantir's stock trades at over 100 times forward earnings estimates and more than 44 times sales expectations for 2026, indicating a high-risk investment profile [14] - RBC's Rishi Jaluria has a sell rating on Palantir with a price target of $50, suggesting a 63% downside from the current share price of about $135 [7]