Core Insights - Goldman Sachs Conviction List features top stock picks for institutional and high-net-worth clients, highlighting companies with strong growth and income potential [1][2] - Five dividend-paying companies have been on the Conviction List for extended periods, all rated as Buy by Goldman Sachs [1] Company Summaries - **Bank of America (NYSE: BAC)**: - Dividend yield of 2.06% - Target price set at $67 - On the Conviction List for 362 days - Operates in Global Markets, Global Banking, Global Wealth & Investment Management, and Consumer Banking segments [1][2] - **Johnson & Johnson (NYSE: JNJ)**: - Dividend yield of 2.10% - Target price set at $250 - On the Conviction List for 275 days - Focuses on pharmaceuticals, biotechnology, and medical devices across Innovative Medicine and MedTech segments [1][2] - **Huntington Ingalls Industries (NYSE: HII)**: - Dividend yield of 1.33% - Target price set at $425 - On the Conviction List for 214 days - Engages in designing and constructing military ships and offers various naval nuclear support services [1][2] - **Duke Energy (NYSE: DUK)**: - Dividend yield of 3.37% - Target price set at $141 - On the Conviction List for 214 days - Operates in Electric Utilities and Infrastructure and Gas Utilities and Infrastructure segments [1][2] - **Kontoor Brands (NYSE: KTB)**: - Dividend yield of 3.09% - Target price set at $84 - On the Conviction List for 214 days - A global lifestyle apparel company with brands like Wrangler and Lee [1][2]

Group 1 - Jefferies initiated coverage of Kontoor Brands, Inc. (KTB) with a Hold rating and a $65 price target, highlighting the company's free cash flow profile and low valuation multiple as positives, while noting risks related to Helly Hansen and tariffs [1] - Baird analyst Jonathan Komp named Kontoor Brands, Inc. a bullish Fresh Pick with an Outperform rating and a $105 price target, contrasting with Wells Fargo's lowered price target of $95 from $100 while maintaining an Overweight rating [2] - Kontoor Brands, Inc. designs, produces, and markets denim and lifestyle apparel, footwear, and accessories primarily under the Wrangler and Lee brands [3] Group 2 - Concerns among bearish investors focus on Helly Hansen being a poor investment with limited growth potential, although Wells Fargo disagrees and remains bullish on the stock [2] - The broader group of stocks has rallied 10% in recent months, while Kontoor shares have underperformed by 40% [2] - The company is acknowledged as a potential investment, but certain AI stocks are considered to offer greater upside potential and carry less downside risk [3]

Core Viewpoint - Kontoor Brands, Inc. has declared a quarterly cash dividend of $0.53 per share, reflecting the company's commitment to returning value to shareholders [1]. Company Summary - Kontoor Brands, Inc. operates a portfolio that includes three iconic lifestyle, outdoor, and workwear brands: Wrangler®, Lee®, and Helly Hansen® [1]. - The cash dividend is scheduled to be payable on March 20, 2026, to shareholders of record as of March 10, 2026 [1].

Core Viewpoint - Kontoor Brands, Inc. plans to release its fourth quarter 2025 financial results on March 3, 2026, at approximately 6:50 a.m. ET, followed by a conference call at 8:30 a.m. ET to discuss the results [1] Group 1 - The financial results announcement will be accessible via a live broadcast on the company's investor relations website [1] - An archived version of the conference call will be available for those unable to attend the live session [1]

Company Overview - Kontoor Brands, Inc. (KTB) was spun off from V.F. Corporation (VFC) in 2019 as it was considered a non-core business for VFC [1] Business Focus - KTB is an apparel company that is always on the lookout for undervalued and promising stocks, emphasizing a focus on risk and reward [1]

Core Insights - Kontoor Brands (KTB) was spun off from V.F. Corporation (VFC) in 2019 as it was considered a non-core business for VFC [1] Company Overview - KTB is an apparel company that focuses on iconic brands [1] Investment Perspective - The company is viewed as an opportunity for investors seeking undervalued stocks with a focus on risk and reward [1] - There is a belief that the best investment ideas are often the simplest, and contrarian approaches may yield better results [1]

Core Insights - Kontoor Brands (KTB) experienced a significant stock price increase of 57.3% following the Q2 FY2025 earnings release, but has since lost investor appeal despite strong Q3 FY2025 performance and an earnings beat [1] Financial Performance - The company reported solid Q3 FY2025 numbers, indicating strong operational performance [1] Investment Perspective - The article emphasizes a value investing approach focused on long-term growth, highlighting the importance of strong fundamentals and sustainable competitive advantages [1]

Core Insights - Goody, a leading hair accessories brand, has launched a limited-edition collection in collaboration with Lee, marking Lee's first entry into the hair and beauty market [1][2] - The collection features 20 items, including hairbrushes, hair ties, headbands, scrunchies, claw clips, and bows, all inspired by American denim style [2] - The collection is exclusively available at Walmart, Walmart.com, and Lee.com, with prices ranging from $5.94 to $12.94, making it an affordable option for consumers [2][3] Company Overview - Goody has been a leader in the hair accessory market since its founding in 1907, known for its 'ouchless' hair accessories that allow for personal style expression without damaging hair [4] - Lee, a brand under Kontoor Brands (NYSE: KTB), has a 135-year history in designing denim and workwear, appealing to a global audience with products sold in over 100 countries [4] - Lee's focus on trend-right and timeless styles, along with its integration into pop culture through collaborations, aims to attract a new generation of fans [4]

Core Viewpoint - Kontoor Brands (KTB) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to buying pressure from institutional investors, resulting in stock price movements [4]. Business Improvement Indicators - The upgrade in ratings for Kontoor suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Kontoor has increased by 0.8%, reflecting analysts' growing confidence in the company's earnings potential [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Kontoor's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - The Federal Reserve cut interest rates for the third time in 2025, leading to a rally in U.S. stocks, which is seen as a relief for investors amid high inflation concerns [2][4] - The Fed is optimistic about inflation slowing to 2.4% and economic growth accelerating to 2.3% by the end of 2026, which is favorable for the broader market [3][7] Consumer Discretionary Stocks - **Brightstar Lottery PLC**: Expected earnings growth rate for the current year is 17.9%, with a Zacks Consensus Estimate improvement of 29.5% over the last 60 days, currently holding a Zacks Rank 2 [8] - **Las Vegas Sands Corp.**: Anticipated earnings growth rate is 30%, with a Zacks Consensus Estimate increase of 10.5% over the last 60 days, currently rated as a Zacks Rank 1 (Strong Buy) [9][10] - **Roku, Inc.**: Projected earnings growth rate exceeds 100%, with a Zacks Consensus Estimate improvement of 83.3% over the past 60 days, currently holding a Zacks Rank 2 [11] - **Kontoor Brands, Inc.**: Expected earnings growth rate is 12.5%, with a slight improvement of 0.7% in the Zacks Consensus Estimate over the last 60 days, currently rated as a Zacks Rank 2 [12]