Core Insights - Kering's growth strategy necessitates a reduction in dependence on the underperforming flagship brand Gucci [1] - The company plans to further scale back its store network to enhance operational efficiency [1] - Kering aims to pursue more synergies across its brands to drive overall performance [1]

Core Insights - 2025 has seen significant investment themes including artificial intelligence, quantum computing, and notably, nuclear energy stocks, with the VanEck Uranium and Nuclear ETF delivering a total return of 55% as of November 17 [2] Company Performance - NuScale Power experienced a tumultuous year, with shares rising nearly 200% through mid-October but subsequently collapsing by around 61% from their peak due to disappointing Q3 earnings [3][6] - The company reported a substantial loss of $1.85 per share against analyst expectations of a loss of only 11 cents, primarily due to a $128.5 million payment to ENTRA1 Energy aimed at expediting a six-gigawatt nuclear energy deployment [4][5] - Following the earnings report, NuScale's shares dropped 14% on November 6 and continued to decline, resulting in a total decrease of 45% since the report, with Royal Bank of Canada lowering its price target from $35 to $32 [5] Market Reactions - Constellation Energy, the largest operator of nuclear energy facilities in the U.S., reported Q3 earnings on November 7, missing both sales and adjusted EPS expectations, yet the stock gained 2% on the same day [7] - Despite a 16% decline from mid-October highs, Constellation has still achieved a total return of 52% year-to-date [7]

Core Insights - The rapid growth in demand for artificial intelligence (AI) is significantly impacting the energy requirements of data centers, which are known for their high power consumption [1] Group 1 - The increasing demand for AI is a primary driver of energy consumption in data centers [1] - Energy supply is identified as a potential limiting factor for the rapid expansion of AI capabilities [1]

Market Overview - The US equity market experienced a rally in the third quarter of 2025, with the S&P 500 Index increasing by 8.12% [1] - Bonds also saw gains, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% during the same period [1] Performance Analysis - The composite return for the quarter was 7.22% gross of fees and 7.10% net of fees, which underperformed the S&P 500 Index's 8.12% gain [1] - The underperformance of the strategy was attributed to security selection [1] Company Spotlight: Constellation Energy Corporation - Constellation Energy Corporation (NASDAQ:CEG) is highlighted as a key stock, being the largest producer of carbon-free energy in the United States [3] - The company operates the largest nuclear fleet in the nation and has a diversified energy portfolio including natural gas, geothermal, wind, solar, and hydro assets [3] - Constellation Energy's stock had a one-month return of -8.61% but gained 46.84% over the last 52 weeks, closing at $338.52 per share with a market capitalization of $105.76 billion on November 14, 2025 [2] - The pending acquisition of Calpine is expected to significantly enhance Constellation's generation portfolio, combining nuclear power with additional gas capacity [3] - The company serves over 2.5 million customers and plays a crucial role in the U.S. energy transition, focusing on reliable, affordable, and sustainable power [3]

Core Insights - Constellation Energy Corporation (CEG) reported Q3 2025 earnings of $3.04 per share, missing the Zacks Consensus Estimate of $3.13 by 2.89% while revenues reached $6.57 billion, exceeding expectations by 7.3% [1][9] Financial Performance - Revenues of $6.57 billion increased by 0.3% from $6.55 billion in the same quarter last year [7] - CEG's net interest expenses decreased by 8.8% to $134 million from $147 million year-over-year [10] - The trailing 12-month return on equity for CEG is 21.59%, outperforming the industry average of 7.99% [23] Stock Performance - CEG stock closed at $335.74 on Nov. 13, reflecting a 5.16% decline in intraday trading following the mixed earnings report [2] - Over the past six months, CEG shares have gained 49.2%, outperforming the industry’s 38.9% rise and the S&P 500's 16.7% growth [2] Operational Highlights - Renewable energy capture for CEG's wind, solar, and hydro fleet was 96.8%, up from 96% in Q3 2024 [7] - The company produced 46,477 gigawatt-hours (GWhs) from its Salem and South Texas Project Generating Stations, an increase from 45,510 GWhs in Q3 2024 [8] Strategic Initiatives - CEG plans capital expenditures of approximately $3 billion for 2025 and $3.5 billion for 2026, with about 35% allocated for nuclear fuel purchases [16] - The company aims to achieve 95% carbon-free output by 2030 and 100% by 2040, with nearly 90% of its yearly power generation already carbon-free [18] Investment Outlook - The Zacks Consensus Estimate for CEG's 2025 and 2026 earnings per share reflects year-over-year growth of 8.77% and 21.09%, respectively [20] - CEG's board has authorized a share repurchase program of up to $3 billion, with approximately $593 million remaining as of Sept. 30, 2025 [25] - The company aims to increase its dividend by 10% annually, currently offering a quarterly dividend of 38.78 cents per share [26] Valuation - CEG is currently trading at a forward P/E ratio of 31.79X, which is a premium compared to the industry average of 23.94X [27]

Core Insights - The demand for electricity driven by artificial intelligence (AI) is significantly outpacing the current grid's capacity, with projections indicating a need for 60 to 120 gigawatts of new load by 2030, equivalent to Italy's entire power consumption [1][2] Group 1: Companies Leading the Trend - Constellation Energy operates the largest nuclear fleet in the U.S. with 21 reactors producing about 22,000 megawatts of carbon-free power, and has secured multi-year power purchase agreements with major tech companies like Microsoft and Meta [4][6] - Vistra combines 41 gigawatts of nuclear, gas, and utility-scale batteries, enabling it to serve both peak and firm demand, with a third-quarter adjusted EBITDA of $1.58 billion and a narrowed full-year guidance of $5.7 billion to $5.9 billion [7][9] - Quanta Services focuses on building high-voltage transmission and substations, reporting third-quarter revenue of $7.6 billion and a record backlog of $39.2 billion, indicating strong demand for grid upgrades [10][12] Group 2: Market Dynamics - The scarcity of reliable power sources is leading to premium pricing for nuclear baseload and flexible generation, as companies race to secure firm power to support AI infrastructure [13]

Core Insights - The recent pullback in artificial intelligence stocks and nuclear-heavy AI energy trade presents a buying opportunity for investors, particularly in stocks like GE Vernova and Constellation Energy, which are currently trading about 20% below their highs [1][7]. Industry Overview - The demand for energy is surging due to the AI arms race, with projections indicating a 25% increase in U.S. electricity demand by 2030 and a 75% increase by 2050 [2]. - AI data centers require reliable and clean energy, making nuclear energy a key player in meeting this demand [3][4]. Company Insights: GE Vernova - GE Vernova Inc. has seen a 300% increase in stock price since its spin-off from GE in April 2024, outperforming Nvidia and the tech sector [5]. - The company is positioned to hold its ground at pre-July breakout levels, with potential long-term buying opportunities if it pulls back to its 200-day moving average [6]. - GE Vernova's portfolio includes nuclear energy, natural gas, electrification, and grid technologies, contributing to approximately 25% of global electricity generation [8]. - The company is recognized for its energy technology manufacturing capabilities, paying dividends, and stock repurchases, distinguishing it from speculative stocks [9]. - GE Vernova's BWRX-300 small modular reactors (SMRs) are viewed as potential leaders in the future of nuclear power [10]. - The company projects a 34% increase in adjusted EPS for FY25 and a 71% increase for FY26, with revenue expected to reach nearly $42 billion by FY26 [14]. Company Insights: Constellation Energy - Constellation Energy is the largest U.S. nuclear power plant operator and has seen its stock rise over 525% since going public in early 2022 [15]. - The stock has recently dropped 19% from its mid-October high, presenting a potential buying opportunity if it approaches its 200-day moving average [16]. - Constellation's $27 billion acquisition of Calpine will enhance its position as the largest clean energy firm, expanding its reach into energy-demanding regions like Texas and California [17]. - The company has secured long-term nuclear power agreements with major tech firms like Microsoft and Meta to support their AI initiatives [18]. - Constellation has raised its dividend by 10% for 2025 and 25% for 2024, with expectations of adjusted EPS growth of 9% in 2025 and 21% in 2026 [20].

Core Insights - The company is experiencing strong fundamental growth factors, indicating a positive outlook for its performance [1] - The shares of the company are considered undervalued, suggesting potential for price appreciation [1] Company Analysis - The analyst has a background in equity analysis, with experience across various sectors including telecom and industry, which enhances the understanding of the company's financial statements [1] - The analyst's educational background includes a bachelor's degree in Antwerp, a master's at KU Leuven, and an MBA in Finance at Vlerick, providing a solid theoretical and practical foundation for investment analysis [1] Investment Focus - The analyst is currently building an investment project focused on the CIS region, aiming to apply Western analytical tools to identify hidden value in emerging markets [1] - There is an emphasis on deep, fundamentals-driven research to uncover the underlying stories behind companies [1]

Market Overview - U.S. equity markets are experiencing robust gains, driven by optimism over a potential resolution of the government shutdown and a strong rebound in the technology sector [1][3] - Major indexes are recovering from last week's declines, with the Nasdaq Composite leading the charge, climbing between 1.4% and 1.9% [2][3] Sector Performance - Growth-oriented sectors, particularly technology, are showing strong performance, with AI-related stocks leading the recovery despite previous valuation concerns [4] - Energy and industrial stocks are also contributing positively, while health insurers are declining due to uncertainty over healthcare tax credits [4] Corporate Earnings - Approximately 82% of S&P 500 companies have exceeded earnings estimates this reporting season, marking the highest rate in four years [6] - Notable companies reporting include CoreWeave, Barrick Mining, and Paramount Skydance, with Cisco Systems set to report later this week [6] Major Stock Movements - Nvidia is a standout performer, surging between 3.7% and 4%, recently reaching a $5 trillion valuation [11] - Pfizer is acquiring Metsera for approximately $10 billion, impacting both companies' stock prices [11] - Tesla shares are up around 4% following shareholder approval of CEO Elon Musk's pay package [11] - Palantir Technologies is bouncing back, jumping between 6.7% and 8% after a prior decline [11] - Taiwan Semiconductor Manufacturing Co. saw its stock rise 3.1% to 3.2% after reporting nearly 17% year-over-year revenue growth [11] - Plug Power Inc. plans to generate over $275 million through asset monetization and operational efficiencies [11]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum [2] Zacks Style Scores Overview - The Style Scores utilize an alphabetic rating system from A to F, where A indicates the highest potential for stock outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses stocks based on their future earnings, sales, and cash flow potential [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, helping investors capitalize on market movements [5] VGM Score - The VGM Score combines all three Style Scores to identify stocks with the best value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500 with an average annual return of +23.93% since 1988 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - The direction of earnings estimate revisions is crucial in stock selection, as downward trends can indicate potential price declines [10] Company Spotlight: Constellation Energy Corporation (CEG) - Constellation Energy Corporation, based in Baltimore, MD, provides electric power and natural gas services to 2 million customers [11] - CEG holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - The company is projected to achieve year-over-year earnings growth of 8.9% for the current fiscal year, with a Zacks Consensus Estimate of $9.44 per share [12]