Investment Philosophy - The importance of saving a portion of income, recommending a minimum of 10% regardless of the amount earned [1] - Emphasis on investing in sectors aligned with one's expertise, suggesting that individuals should focus on their competitive advantages [1] - Advocating for a long-term investment strategy rather than trading, with a focus on maintaining investment validity [1] - Encouragement to pursue passions over purely financial gains, highlighting the long-term happiness that can come from such choices [1] Personal Background - The individual has a diverse background in engineering, finance, and asset management, with experience in various sectors including natural resources, TMT, consumers, industrials, and transportation [1] - Transitioned from hedge fund management to establishing an asset management firm for family, friends, and high-net-worth individuals [1]

Core Viewpoint - DXP Enterprises, Inc. has completed the acquisition of Triangle Pump & Equipment, Inc., enhancing its capabilities in the water and wastewater industry and expanding its geographic reach [1][2][3]. Company Overview - DXP Enterprises, Inc. is a leading distributor of products and services, providing solutions to industrial customers across the United States, Canada, Mexico, and Dubai [5]. - The company specializes in innovative pumping solutions, supply chain services, and maintenance, repair, operating, and production (MROP) services [5]. Acquisition Details - Triangle Pump & Equipment, Inc. is a manufacturer’s representative and distributor focused on the water and wastewater industry, with sales of approximately $15.1 million and adjusted EBITDA of about $2.4 million for the twelve months ending June 30, 2025 [3][4]. - The acquisition was funded with cash from DXP's balance sheet, and the definitive agreement was signed on November 1, 2025 [2][3]. Strategic Implications - The acquisition is expected to enhance DXP's Water division by providing new geographic territories and capabilities, furthering its mission to build a comprehensive platform for municipal and industrial water and wastewater treatment markets [4][7]. - DXP aims to continue scaling its operations with more acquisitions planned for 2026, indicating a strategic focus on growth in the water and wastewater sector [4][7].

Core Insights - DXP Enterprises is set to release its Q3 2025 earnings results on November 3, 2025, with expected earnings of $1.45 per share and revenue of $499 million [2] - The company reported Q2 2025 earnings of $1.43 per share, exceeding analysts' expectations of $1.39, with revenue of $498.68 million, slightly below the forecast [3] Financial Performance - DXP Enterprises has a market capitalization of $1.88 billion, a price-to-earnings ratio of 22.83, and a beta of 1.16 [4] - The company has a return on equity of 20.94% and a net margin of 4.52% [3] - The stock's 52-week range is between $49.08 and $130.97, with a 50-day simple moving average of $120.49 and a 200-day simple moving average of $102.58 [4] Insider Transactions - Senior Vice President John Jay Jeffery sold 2,000 shares at an average price of $125.43, totaling $250,860, reducing his ownership by 9.09% [5] - Chief Marketing Officer Paz Maestas sold 5,000 shares at an average price of $120.11, totaling $600,550, representing a 0.83% decrease in ownership [5] - Insiders sold a total of 41,316 shares worth $4,960,704 in the last quarter, with company insiders owning 22.70% of the stock [5] Institutional Holdings - Osaic Holdings Inc. increased its stake by 6.7%, now owning 11,644 shares valued at $1.02 million [6] - Public Sector Pension Investment Board raised its holdings by 7.4%, owning 43,343 shares valued at $3.799 million [6] - Institutional investors collectively own 74.82% of DXP Enterprises' stock [6] Analyst Ratings - Singular Research upgraded DXP Enterprises to a "moderate buy" rating, while Wall Street Zen downgraded it from "strong-buy" to "buy" [7] - Weiss Ratings maintained a "buy (b)" rating, with a consensus rating of "Buy" and a price target of $95.00 [7] Company Overview - DXP Enterprises, Inc. distributes maintenance, repair, and operating (MRO) products and services in the U.S. and Canada, operating through three segments: Service Centers, Supply Chain Services, and Innovative Pumping Solutions [8]

Core Insights - The company's shares have experienced strong growth over the past year, significantly outperforming the S&P 500 index [1] Group 1: Share Performance - The shares are considered to be ahead of the S&P 500, indicating a robust performance relative to the broader market [1] - Despite the strong growth, there is a consideration that the shares may be overvalued for a moderately performing company [1]

Core Insights - DXP Enterprises, Inc. has completed the acquisition of APSCO, LLC, enhancing its water and wastewater platform [1][3] - APSCO, founded in 1986, is a leading manufacturer's representative in the water and wastewater industry, servicing multiple states [2][4] - The acquisition was funded with cash from DXP's balance sheet, indicating a strategic investment in expanding its market presence [2][5] Financial Summary - APSCO reported sales of approximately $12.9 million and adjusted EBITDA of $1.5 million for the twelve months ending July 31, 2025 [4] - Adjusted EBITDA is defined as income before tax, plus interest, depreciation, amortization, and non-recurring items, minus go-forward selling costs [4] Strategic Implications - The acquisition is expected to enhance DXP's product and aftermarket service capabilities, contributing to the growth of its DXP Water platform [3][5] - DXP aims to continue its acquisition strategy in the water and wastewater sector, with plans for further acquisitions into 2026 [5]

Group 1 - DXP Enterprises Inc. shares are currently trading at $116.12, reflecting a 1.78% decrease in the current session and a 7.02% decrease over the past month, while showing a significant increase of 120.26% over the past year [1] - The company's price-to-earnings (P/E) ratio is 22.6, which is lower than the aggregate P/E ratio of 44.27 in the Trading Companies & Distributors industry, suggesting that shareholders may perceive the stock as underperforming compared to its peers or potentially undervalued [5] - The P/E ratio serves as a tool for long-term shareholders to evaluate market performance against historical earnings and industry standards, with a lower P/E possibly indicating weak future performance expectations or undervaluation [4] Group 2 - While the P/E ratio is a useful metric for assessing a company's market performance, it should be interpreted cautiously, as a low P/E can indicate either undervaluation or weak growth prospects [8] - Investors are encouraged to consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors to make informed investment decisions [8]

Group 1 - Mr. Mavroudis is a professional portfolio manager with expertise in institutional and private portfolios, focusing on risk management and financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI, demonstrating resilience in portfolio management [1] - Mr. Mavroudis is the CEO of FAST FINANCE Investment Services, a registered Greek company, and holds multiple advanced degrees in finance, law, and economics [1] Group 2 - He is a certified portfolio manager and has various certifications related to financial instruments, derivatives, and securities market-making [1] - Mr. Mavroudis engages with the investment community through writing on Seeking Alpha, aiming to share insights and learn from others [1]

Group 1 - DXP Enterprises Inc. (NASDAQ: DXPE) is identified as an excellent GARP (Growth At a Reasonable Price) opportunity and is rated a Strong Buy by Seeking Alpha's quant model, analysts, and Wall Street [1] - The article emphasizes the importance of finding strongly undervalued stocks, suggesting that there are opportunities in lesser-known and underrated stocks across various geographies and sectors [1] - The author, a professional portfolio manager, highlights a commitment to independent analysis and shares insights on stocks that are either held or monitored [1] Group 2 - There is a potential for initiating a beneficial Long position in DXPE through stock purchases or call options within the next 72 hours [2] - The article expresses the author's personal opinions and clarifies that no compensation is received for the article, aside from Seeking Alpha [2] - Seeking Alpha's disclosure notes that past performance does not guarantee future results and that the views expressed may not reflect the opinions of Seeking Alpha as a whole [3]

Group 1 - DXP Enterprises Inc. (NASDAQ: DXPE) is identified as an excellent GARP (Growth At a Reasonable Price) opportunity and is rated a Strong Buy by Seeking Alpha's quant model, analysts, and Wall Street [1] - The article emphasizes the importance of finding strongly undervalued stocks, suggesting that there are opportunities in lesser-known and underrated stocks across various geographies and sectors [1] - The author, a professional portfolio manager, highlights a commitment to independent analysis and shares insights on stocks that are either held or monitored [1] Group 2 - There is a potential for initiating a beneficial Long position in DXPE through stock purchases or call options within the next 72 hours [2] - The article expresses the author's personal opinions and clarifies that no compensation is received for the content, aside from Seeking Alpha [2] - Seeking Alpha's disclosure notes that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [3]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on DXP Enterprises (DXPE), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Group 1: Brokerage Recommendations - DXP Enterprises has an average brokerage recommendation (ABR) of 1.83, indicating a position between Strong Buy and Buy, based on recommendations from three brokerage firms [2]. - The current ABR is derived from one Strong Buy and one Buy recommendation, with each accounting for 33.3% of the total recommendations [2]. Group 2: Limitations of Brokerage Recommendations - Relying solely on brokerage recommendations for investment decisions may not be advisable, as studies suggest they often fail to guide investors effectively towards stocks with high price appreciation potential [5]. - Brokerage analysts tend to exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Group 3: Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more reliable indicator of near-term stock performance compared to ABR [8][11]. - Unlike ABR, which may not be up-to-date, the Zacks Rank reflects timely changes in earnings estimates, providing a more accurate indication of future price movements [12]. Group 4: Current Earnings Estimates for DXP Enterprises - The Zacks Consensus Estimate for DXP Enterprises remains unchanged at $5.3 for the current year, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, DXP Enterprises holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].