Core Insights - Amdocs (DOX) and CoStar Group (CSGP) are both considered attractive stocks in the Computers - IT Services sector, but a deeper analysis is needed to determine which is more appealing to value investors [1][3] Valuation Metrics - Both Amdocs and CoStar Group currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - Amdocs has a forward P/E ratio of 11.03, significantly lower than CoStar Group's forward P/E of 91.89, suggesting Amdocs may be undervalued [5] - The PEG ratio for Amdocs is 1.25, while CoStar Group's PEG ratio is 2.18, further indicating Amdocs offers better value based on expected EPS growth [5] - Amdocs has a P/B ratio of 2.67 compared to CoStar Group's P/B of 3.8, reinforcing the notion that Amdocs is the superior value option [6] - Amdocs has a Value grade of A, while CoStar Group has a Value grade of F, highlighting the disparity in their valuation metrics [6]

Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score focuses on trends in stock prices and earnings outlooks, using factors like one-week price changes and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines the three Style Scores to highlight companies with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 ranked stocks should also have A or B scores for potential upside [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks (4 or 5) may still have good Style Scores but are likely to decline in price [11] Company Spotlight: Amdocs Limited - Amdocs Limited (DOX) is a leading provider of customer care, billing, and order management systems, currently holding a Zacks Rank of 2 (Buy) and a VGM Score of B [12] - Amdocs has a Value Style Score of B, supported by a forward P/E ratio of 11.01, making it attractive to value investors [12] - Recent earnings estimates for fiscal 2025 have been revised higher, with the Zacks Consensus Estimate increasing by $0.01 to $6.98 per share, and an average earnings surprise of +1.5% [13]

Core Insights - Amdocs will participate in several investor conferences in the first quarter of fiscal 2026, showcasing its commitment to engaging with investors and stakeholders [1] Conference Participation - Amdocs will attend the Wells Fargo 9th Annual TMT Summit on November 18, 2025, featuring a fireside chat and investor meetings with key executives [1] - The company will also be present at the 6th Annual Needham Tech Week on November 20-21, 2025, with investor meetings scheduled [1] - On December 3, Amdocs will participate in the UBS Global Technology & AI Conference, where the CFO & COO will meet with investors [1] - The Raymond James TMT & Consumer Conference on December 8 will also include investor meetings with Amdocs representatives [1] - Finally, Amdocs will attend the 53rd Annual Nasdaq Investor Conference on December 10, featuring a fireside chat and investor meetings with the President & CEO [1] Company Overview - Amdocs is a leading provider of software and services for communications and media companies, focusing on unlocking innovative potential for its customers [1] - The company aims to empower clients to deliver next-generation communication and media experiences for both individual users and large enterprises [1]

Group 1: Fund Performance - Palm Valley Capital Fund appreciated 2.35% in Q3 2025, underperforming compared to a 9.11% gain for the S&P SmallCap 600 and a 7.99% rise in the Morningstar Small Cap Total Return Index [1] - The Fund's investment in cash equivalents increased from 73.5% to 74.1% by the end of the quarter [1] - Small-cap stocks outperformed large caps during the period due to anticipated Fed easing and reduced tariff concerns [1] Group 2: Amdocs Limited (NASDAQ:DOX) - Amdocs Limited is a software and services provider for communications, entertainment, and media service providers, with a market capitalization of $9.066 billion [2] - Amdocs' one-month return was -1.75%, and its shares lost 6.47% over the last 52 weeks [2] - The Fund's position in Amdocs negatively impacted performance by more than 10 basis points in Q3, despite steady gains in operating income [3] Group 3: Amdocs' Business Strategy - Amdocs experienced a decline in top-line revenue due to the intentional disposition of no-margin, non-core businesses [3] - The valuation for Amdocs has increased reliably over the years, supported by its operating stability and strong competitive position [3] - Amdocs is not among the 30 Most Popular Stocks Among Hedge Funds, with 34 hedge fund portfolios holding its stock at the end of Q2, up from 27 in the previous quarter [4]

Core Insights - Amdocs (DOX) and CoStar Group (CSGP) are both considered for investors looking for undervalued stocks in the IT Services sector [1] - The Zacks Rank system indicates both companies have a rank of 2 (Buy), suggesting positive earnings outlooks [3] Valuation Metrics - DOX has a forward P/E ratio of 10.85, while CSGP has a significantly higher forward P/E of 96.22 [5] - The PEG ratio for DOX is 1.23, compared to CSGP's PEG ratio of 2.26, indicating DOX may be more reasonably valued relative to its expected earnings growth [5] - DOX's P/B ratio is 2.62, while CSGP's P/B ratio is 4, further supporting the argument that DOX is undervalued [6] Value Grades - Based on the valuation metrics, DOX has earned a Value grade of B, whereas CSGP has received a Value grade of F [6] - The analysis suggests that despite both companies having solid earnings outlooks, DOX is currently the superior value option [7]

Group 1: Hormel Foods Corp. - Hormel Foods Corp. is known for its products like ham and bacon, but it owns around 40 brands and sells in approximately 80 countries [4] - The stock experienced a 17% decline in the third quarter due to rising costs for pork and beef, which are impacting profit margins [4] - At a recent price of about $25, the stock trades at 1.1 times revenue and 2.7 times book value, which are considered attractive multiples [4][5] - Despite Wall Street's lack of enthusiasm, with only two out of twelve analysts rating it a "buy," the company has a strong historical record, having never posted a loss since going public in 1928 [5] Group 2: Amdocs Ltd. - Amdocs Ltd. provides software and services primarily to communications and entertainment companies, with a significant historical reliance on AT&T as a customer [6] - The stock fell over 9% in the latest quarter, but six out of seven analysts covering it recommend buying [6] - Revenue decreased by about 3% over the past year due to shedding low-margin businesses, while earnings increased [7] Group 3: Eastman Chemical Co. - Eastman Chemical Co. shares fell 17% in the recent quarter, attributed to signs of a slowing economy [10] - Insider purchases were noted, with the CEO and CFO increasing their stakes, indicating confidence in the company's long-term prospects [9] Group 4: LKQ Corp. - LKQ Corp. recycles auto parts and operates around 1,500 high-tech junkyards in the U.S. and Europe [11] - The stock declined nearly 17% in the past quarter, with sales and earnings missing expectations, particularly in European operations [12] - The expectation is that rising car prices in the U.S. due to tariffs may lead consumers to keep their cars longer, benefiting the recycled-parts business [11] Group 5: Ingredion Inc. - Ingredion Inc. produces ingredients for foods and beverages, with a focus on sweeteners [13] - Despite a revenue dip in the past year, earnings remained strong, yet the stock fell 9% last quarter [13] - The company has achieved a return on stockholders' equity of 15% in 11 of the past 15 years, and the stock is considered cheap at 12 times earnings [13]

Core Insights - Amdocs Ltd (NASDAQ:DOX) is identified as a promising investment opportunity in the AI sector, particularly following a recent agreement with Optimum to utilize its AI solutions [1][5]. Group 1: Agreement Details - Optimum has signed a multi-year agreement to leverage Amdocs' amAlz Suite, a telecommunications-grade AI platform, to implement new solutions such as AI-powered Bill Presenter and Gen AI Care Agent [2]. - This integration aims to modernize Optimum's billing infrastructure and address challenges associated with its legacy systems [2]. Group 2: Market Demand and Strategy - The agreement highlights the increasing demand for Amdocs' solutions, driven by the need for smart and scalable operations in the telecommunications sector [3][4]. - Amdocs' AI-powered solutions are designed to simplify complexity, accelerate innovation, and create long-term business value for clients like Optimum [4]. Group 3: Technological Collaboration - Amdocs has partnered with NVIDIA to develop and deploy advanced AI solutions, utilizing NVIDIA's infrastructure and models to enhance its AI offerings [4].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [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 identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score assesses trends in stock prices and earnings outlooks, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify companies with the best value, growth forecasts, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify the process of building a successful portfolio [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] 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 [10] - Stocks with lower ranks, even if they have high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [11] Company Spotlight: Amdocs Limited - Amdocs Limited is a leading provider of customer care, billing, and order management systems for communications and Internet services [12] - Amdocs has a Zacks Rank of 3 (Hold) and a VGM Score of B, with a forward P/E ratio of 12.3 indicating attractive valuation [12] - Recent earnings estimates for fiscal 2025 have been revised higher, with the Zacks Consensus Estimate increasing by $0.02 to $6.98 per share, and an average earnings surprise of +1.5% [13]

Group 1 - The article discusses the Asia Value & Moat Stocks research service aimed at value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1][2] - Amdocs Limited (DOX) is currently rated neutral, with no significant earnings beats or misses that would warrant a change in rating, indicating a balanced view on the company's performance [1] - The author highlights both positive and negative aspects emerging from Amdocs Limited's results and comments, suggesting a mixed outlook for the company [1]

Core Insights - Amdocs Limited (DOX) reported better-than-expected third-quarter fiscal 2025 results with non-GAAP earnings of $1.72 per share, exceeding management's guidance and the Zacks Consensus Estimate [1][10] - The company's revenues for Q3 were $1.14 billion, surpassing the consensus mark but down 8.4% year over year due to the phase-out of certain business activities [2][10] Financial Performance - Non-GAAP operating income increased 5.3% year over year to $244.7 million, with an operating margin expansion of 280 basis points to 21.4% [5] - Managed services revenues rose 4.1% year over year to $771.5 million, while the company ended the quarter with a backlog of $4.15 billion [5] - Amdocs generated operating cash flow of $241.2 million and free cash flow of $211.8 million during the third quarter [7] Revenue Breakdown - North America revenues were $745.4 million, representing 65.1% of total revenues, down 10.1% year over year [3] - Revenues from the Rest of the World (RoW) declined 14.5% year over year to $209.6 million, while Europe revenues increased 7.7% year over year to $189.4 million [3][4] Guidance and Outlook - For Q4, Amdocs expects revenues between $1.125 billion and $1.165 billion, with non-GAAP earnings per share projected between $1.79 and $1.85 [8][9] - The updated guidance for fiscal 2025 indicates a revenue decline rate of 9.0-10.0%, with a mid-point suggesting a decline of 9.5% [11] - Non-GAAP earnings per share growth is now expected in the range of 8.0-9.0%, up from previous forecasts [12]