Core Insights - Oaktree Capital Management's latest 13F filing reveals a focus on deep-value cyclicals, energy companies with strong free cash flow, and special-situation equities with asymmetric payoff potential [1][2] Group 1: Top Holdings - TORM PLC (TRMD) is Oaktree's largest holding with 40,581,120 shares valued at $834.6 million, indicating strong conviction in the tanker cycle and a favorable supply/demand imbalance in the product tanker market [3] - Expand Energy Corp (CHK) holds 5,062,363 shares worth $537.8 million, reflecting Oaktree's long-term confidence in energy, particularly natural gas, despite minimal activity this quarter [4] - Garrett Motion (GTX) has 31,894,816 shares valued at $434.4 million, representing a classic special situation investment as the company continues to reduce leverage and grow cash flow post-restructuring [5] - AngloGold Ashanti (AU) consists of 4,185,261 shares worth $294.3 million, fitting Oaktree's strategy with improving margins and optionality in an inflationary environment [6] - Viper Energy (VNOM) has 6,285,062 shares valued at $240.2 million, showcasing a strong thematic bet on energy with predictable royalty cash flows [7] Group 2: Investment Strategy - Oaktree's portfolio heavily emphasizes deep-value cyclicals, particularly in tankers, energy producers, and commodity-linked businesses, all characterized by significant cash flow yield and depressed valuations [8] - The firm maintains a consistent philosophy of embracing dislocation, favoring investments in situations where pessimism is already priced in, such as restructuring plays and underfollowed foreign cyclicals [9] - Energy remains the highest-conviction theme for Oaktree, with multiple top holdings indicating an underestimation of cash generation durability across the sector [10] - Position changes reflect a blend of patience and opportunism, with Oaktree trimming stocks that rallied while increasing positions in VNOM and selected common stocks, aligning with a strategy of controlled aggression [11]

Core Viewpoint - Garrett Motion Inc. has announced a new share repurchase program for 2026, authorizing the repurchase of up to $250 million of its outstanding common stock, reflecting its commitment to returning capital to shareholders while investing in growth opportunities [1][2][3] Group 1: Share Repurchase Program - The new share repurchase program will begin on January 1, 2026, after the current program expires on December 31, 2025 [2] - The company aims to return 75% of its Adjusted Free Cash Flow to shareholders over time through dividends and share repurchases, contingent on various factors including market conditions and stock price [3] Group 2: Financial Strategy - The share repurchase plan demonstrates Garrett's disciplined approach to capital allocation, balancing investments in advanced technologies with shareholder returns [3] - Management has the discretion to determine the timing and price of share repurchases, which may occur through various methods such as open market purchases or block trades [3] Group 3: Company Overview - Garrett Motion has a 70-year history in the automotive sector, focusing on innovations that reduce engine size, fuel consumption, and CO2 emissions [4] - The company is expanding its technology solutions for Zero Emission Vehicles, including fuel cell compressors and electric propulsion systems [4] - Garrett operates six R&D centers and 13 manufacturing sites globally, employing over 9,000 people [4]

Core Viewpoint - The article emphasizes the importance of value investing and highlights GARRETT MOTION (GTX) as a strong value stock based on its favorable metrics and earnings outlook [2][5]. Company Summary - GARRETT MOTION (GTX) currently holds a Zacks Rank of 1 (Strong Buy) and an A grade in the Value category, indicating it is among the strongest value stocks available [4]. - The stock has a Forward P/E ratio of 9.45, significantly lower than the industry average Forward P/E of 18.49, suggesting that GTX may be undervalued [4]. - Over the past 52 weeks, GTX's Forward P/E has fluctuated between a high of 9.56 and a low of 5.83, with a median of 7.57, further supporting the notion of undervaluation [4]. Investment Metrics - The Zacks Style Scores system identifies stocks with specific traits, and GTX's strong performance in the Value category makes it an attractive option for value investors [3]. - The combination of a low Forward P/E ratio and a strong earnings outlook positions GARRETT MOTION as a standout in the current market for value stocks [5].

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Group 1: Company Overview - Garrett Motion (GTX) is a stock within the Auto-Tires-Trucks sector, which consists of 99 individual stocks and currently holds a Zacks Sector Rank of 9 [2] - GTX has a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 4.1% increase in the consensus estimate for full-year earnings over the past three months [3] Group 2: Performance Comparison - Year-to-date, Garrett Motion has gained approximately 89%, significantly outperforming the Auto-Tires-Trucks sector's average return of 4.1% [4] - Another stock in the sector, LCI (LCII), has also outperformed the sector with a year-to-date return of 5.3% [4] Group 3: Industry Context - Garrett Motion is part of the Automotive - Original Equipment industry, which includes 51 companies and currently ranks 89 in the Zacks Industry Rank; stocks in this industry have gained about 2.5% year-to-date, indicating GTX's superior performance within this group [6] - LCI is also included in the Automotive - Original Equipment industry [6] Group 4: Future Outlook - Investors interested in Auto-Tires-Trucks stocks are encouraged to monitor Garrett Motion and LCI as they aim to maintain their strong performance [7]

Market Overview - The U.S. stock market is expected to remain volatile due to inflation concerns and policy uncertainty, impacting market sentiment [1] - It is advisable to invest in low-beta stocks to safeguard portfolios during this volatility [1] Beta Measurement - Beta measures the volatility of a stock relative to the market, with a beta of 1 indicating movement in line with the market [2][3] - Stocks with a beta greater than 1 are more volatile, while those with a beta less than 1 are less volatile [3] Stock Screening Criteria - Stocks with a beta between 0 and 0.6 are screened for lower volatility [4] - Additional criteria include positive price movement over the last month, average trading volume greater than 50,000, a minimum price of $5, and a Zacks Rank of 1 (Strong Buy) [5] Featured Low-Beta Stocks - **USA Compression Partners (USAC)**: Positioned to benefit from rising demand for cleaner fuels and plans to add new equipment by year-end, indicating growth potential [6][9] - **Futu Holdings (FUTU)**: A digital financial services provider experiencing rapid growth and increased client trust, expanding its global presence [7][9] - **Garrett Motion (GTX)**: A leading manufacturer of turbochargers focused on efficiency and emissions reduction, also exploring opportunities in advanced cooling technology for data centers [10][9]

Core Insights - Garrett Motion Inc. is a leading differentiated automotive technology provider with a focus on innovation in the automotive sector and beyond [2] Group 1: Company Overview - Garrett Motion has a 70-year history of innovation in automotive technology, including cars, trucks, off-highway equipment, marine, and power generators [2] - The company specializes in turbocharging technology, which has led to significant reductions in engine size, fuel consumption, and CO2 emissions [2] - Garrett is actively developing technology solutions for Zero Emission Vehicles, including fuel cell compressors for hydrogen fuel cell vehicles and systems for battery electric vehicles [2] - The company operates six R&D centers and 13 manufacturing sites, employing over 9,000 people across more than 20 countries [2] Group 2: Upcoming Events - Garrett Motion will participate in the Baird Global Industrial Conference on November 12, 2025, with presentations by Sean Deason (SVP and CFO) and Craig Balis (Chief Technology Officer) [1]

Core Insights - In times of market volatility, investors are increasingly turning to value investing as a strategy to capitalize on discounted stock prices when others are selling off [1][3] Group 1: Value Investing Strategy - Value investing allows investors to purchase stocks at lower prices during market uncertainty, presenting opportunities for long-term gains [1] - The strategy can lead to "value traps" if not properly understood, where stocks underperform due to persistent issues rather than temporary setbacks [3] Group 2: Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio indicating better value [5] - While P/E ratios alone may not accurately reflect a stock's true value, the PEG ratio helps in assessing intrinsic value [5] - Investors should also consider other parameters alongside the PEG ratio to enhance investment outcomes [6] Group 3: Screening Criteria for Value Stocks - Effective screening criteria for identifying potential value stocks include a PEG ratio lower than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, average trading volume exceeding 50,000, and upward revisions in earnings estimates greater than 5% [6] Group 4: Selected Stocks - Fox Corporation (FOX) has a Zacks Rank of 1, a Value Score of A, and a five-year historical growth rate of 12.3% [10] - Flex Ltd. (FLEX) also holds a Zacks Rank of 1, a Value Score of B, and a five-year historical growth rate of 35.1% [12] - Suzano S.A. (SUZ) has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 52% [14] - Garrett Motion Inc. (GTX) maintains a Zacks Rank of 1, a Value Score of A, and a five-year expected growth rate of 23.1% [15]

Summary of Conference Call Company Overview - The company is identified as Garrett, a technology company primarily involved in the automotive and transportation sectors, with a focus on turbocharger technology [2][3] - The company has approximately 192 million shares, trading around $17, with a market capitalization of about $3.3 billion and net debt of $1.2 billion, leading to a total enterprise value of approximately $4.5 billion [1] Financial Performance - The company reports adjusted EBIT margins of over 14% and adjusted EBITDA margins of 18%, indicating strong profitability [2] - The company generates significant free cash flow due to its aerospace-derived products [2] Market Position and Strategy - Garrett is a leading player in the turbocharger market, primarily competing with BorgWarner, and is described as the "last man standing" in turbo technology [3] - The company has a strong geographic sales distribution, with a significant focus on Europe due to stringent emission standards [3][4] - Turbo penetration rates are high in Europe (over 70%) compared to the U.S. (around 50%), with all diesel engines being turbocharged [4] Product Development and Innovation - Garrett has developed new zero-emission products based on its aerospace-derived intellectual property [5] - The company has a diverse product portfolio, including high-speed rotating machines, air and gas compression technologies, and fuel cell compressors [11][12] - The e-cooling compressor technology is highlighted for its potential applications beyond automotive, including HVAC systems for buildings [19] Growth Opportunities - The company sees growth in the commercial vehicle sector, particularly in backup power generation for data centers, and anticipates recovery in mining and agriculture [29] - There is a growing interest in e-boosting technologies and range-extended vehicles (REVs) in markets like China, which could drive demand for Garrett's products [17][18] - The company is well-positioned to benefit from the shift towards hybrid and plug-in hybrid vehicles, which typically have higher turbo penetration [39][40] Competitive Landscape - Garrett's strong balance sheet and financial stability are seen as advantages over smaller competitors, which may struggle with price increases and financial viability [9] - The company is actively monitoring the competitive landscape in China, where local OEMs are gaining market share [37] Regulatory Environment - The regulatory environment in Europe is evolving, with potential extensions to emission deadlines, which could favor Garrett's turbocharged products [39][40] Financial Discipline and R&D - The company maintains a financial framework that limits R&D spending to 5% of revenue, currently operating in the low 4% range [23] - Garrett has redirected excess cash from its turbo business to invest in new technologies without exceeding its R&D budget [24] Future Outlook - The company has set a target of $1 billion in sales from electric products by 2030, which may be conservative given the evolving market dynamics [53] - An investor day is planned for 2026 to provide updates on growth and strategic direction [54] Key Metrics - Free cash flow for the year is projected at $385 million, representing over 10% of the company's equity capitalization [51] This summary encapsulates the key points discussed during the conference call, highlighting Garrett's market position, financial performance, product innovation, growth opportunities, and strategic outlook.

Company Performance - BRP Inc. has returned 29.3% year-to-date, significantly outperforming the average gain of 13% in the Auto-Tires-Trucks sector [4] - The Zacks Consensus Estimate for BRP Inc.'s full-year earnings has increased by 26.3% over the past quarter, indicating improving analyst sentiment [3] Industry Context - BRP Inc. is part of the Auto-Tires-Trucks group, which ranks 10 within the Zacks Sector Rank, consisting of 99 companies [2] - Within the Automotive - Original Equipment industry, which includes 51 companies, BRP Inc. ranks 83 in the Zacks Industry Rank, with the average stock in this group gaining 3.7% this year [6] Competitive Landscape - Garrett Motion, another stock in the Auto-Tires-Trucks sector, has returned 93% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - Both BRP Inc. and Garrett Motion are expected to maintain solid performance in the Auto-Tires-Trucks sector [7]