Group 1: Visa - Visa reported a 9% increase in revenue and a 10% increase in non-GAAP EPS for its fiscal second quarter of 2025, with payment volumes up 8% and processed transactions rising 9% [3][7] - Year-to-date, Visa's stock is up over 8%, significantly outperforming the financial sector and the S&P 500 [4] - The company generated $9.42 billion in free cash flow in the first half of fiscal 2025, supporting stock repurchases of $8.41 billion and dividends of $2.33 billion [6] - Visa is guiding for low-double-digit net revenue growth and a low teens increase in diluted EPS for the full fiscal year [7] - The stock has a P/E ratio of 34.4, above its 10-year median of 33.1, which is considered justified given the company's performance [8] Group 2: Kenvue - Kenvue's stock currently yields 3.5% and presents a value opportunity in a relatively safe industry, with management focused on turning around its underperforming skin health and beauty segment [9][10] - The skin health segment's recovery is slower than expected, with organic sales declining by 1.9% in 2024, although Neutrogena regained its No. 1 position in the U.S. face care group [11] - Other segments, including self-care and essential health, grew organic sales by 1.9% and 4.1% respectively in 2024 [12] - Kenvue is collaborating with activist investor Starboard Value to appoint new board members, indicating a commitment to improving performance [12][13] Group 3: Essential Utilities - Essential Utilities offers a 3.2% forward yielding dividend, making it an attractive option for conservative investors during market volatility [14] - The company provides water and wastewater services to 1.1 million customers, with 99% of its earnings attributed to these services, which are less likely to be affected by economic downturns [15] - Operating in regulated markets allows Essential Utilities to guarantee certain rates of return, aiding in future cash flow management [16] - The company has increased its dividend payout for 30 consecutive years, with a 7% compound annual growth rate over the past decade [17][18]

Market Overview - The S&P 500 index is down approximately 9.5% from its high, while the Nasdaq Composite index has fallen 13.5% [1] - The stock market has experienced significant volatility, which may present investment opportunities in companies with strong long-term potential [2] Unity Software - Unity Software provides tools for developers to create video games and digital content, along with digital advertising tools [3] - Despite being a leader in the game-engine services space, Unity's stock has underperformed, down about 89% from its all-time high shortly after its IPO in 2020 [4][5] - In Q4, Unity's sales declined 25% year over year to approximately $457 million, with a net loss of $127 million [6] - However, revenue from Unity's core strategic portfolio increased 4% year over year to $442 million, indicating potential for recovery [7] - The company is undergoing restructuring and strategic shifts, including changes to its digital advertising network and the rollout of a new AI platform [7] - Unity's shares are considered a worthwhile buy ahead of its first-quarter earnings release on May 7 [8] Kenvue - Kenvue, a spinoff from Johnson & Johnson, has not performed as expected, down more than 15% from its all-time high [9] - The company reported 1.9% organic sales growth in its self-care segment and 4.1% growth in essential health, but a decline of 1.9% in the skin health and beauty segment [11] - Kenvue increased its marketing budget to 10.6% of sales in 2024, but recovery is slower than anticipated [12] - There are signs of improvement in the skin health and beauty segment, with organic sales rising 2.6% in Q4 2024 [13] - Kenvue trades at just below 21 times estimated free cash flow for 2025, close to fair value for a mature consumer staple [14] - The stock offers a 3.6% dividend yield, making it attractive for value investors despite low growth prospects [14]

The market expects Kenvue (KVUE) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 8, 2025, might help the stock move higher if these key numbers are better than ...

Market Overview - Investors are currently selling growth stocks due to new tariff policies, leading to a decline of approximately 10% in the S&P 500 and Nasdaq Composite since April 2, 2023 [1][2]. Company Profile: Kenvue - Kenvue was spun off from Johnson & Johnson in 2023 and represents J&J's consumer health portfolio, including well-known brands like Listerine, Neutrogena, and Tylenol [5][6]. Investment Thesis for Kenvue - Despite potential supply chain disruptions from tariffs, Kenvue is viewed as a good investment opportunity due to its portfolio of consumer staple products that are essential regardless of economic conditions [6][7]. - Kenvue's products tend to have inelastic demand, meaning consumers are likely to continue purchasing trusted brands even if prices rise [8]. - Kenvue is not classified as a growth stock, but it is positioned for stability and potential growth amid market fluctuations, making it a prudent choice for investors [9][10]. Financial Metrics - Kenvue offers an attractive dividend yield of 3.7%, which is nearly three times the yield of the SPDR S&P 500 ETF Trust, providing a compelling case for dividend investors [10][11].

Core Insights - Kenvue Inc. has launched a new campaign for its OGX® brand featuring actress Shay Mitchell as the global brand ambassador, focusing on hair repair solutions at competitive prices [1][2][4] - The campaign emphasizes the OGX® Bond Protein Repair line, which utilizes a patented bond-building protein to repair and strengthen hair, making it accessible to consumers seeking effective solutions without the high costs associated with salon brands [3][4] Company Overview - Kenvue Inc. is recognized as the world's largest pure-play consumer health company by revenue, with a portfolio of iconic brands including Aveeno®, BAND-AID® Brand, Johnson's®, Listerine®, Neutrogena®, and Tylenol® [6] - The company aims to empower consumers through science-backed products and has a commitment to addressing everyday health and beauty needs [6] Product Details - The OGX® Bond Protein Repair line is designed to protect and strengthen hair, featuring products like the OGX® Bond Protein Repair 450°F Heat Protect Spray, which offers protection against high heat styling [3] - The campaign includes educational content on social media, highlighting the impact of heat, color, and styling damage on hair, while promoting affordable repair solutions [2][4] Brand Positioning - OGX® positions itself as the 1 brand in hair repair, leveraging Shay Mitchell's influence to enhance brand visibility and consumer engagement [1][4] - The campaign aims to educate consumers on hair damage and effective repair methods, with expert insights from trichologist Abbey Yung [2][4]

Inspired by the legendary 'You Can't See Me' catchphrase, the Sunscreen You Can't See campaign reinforces that while you may not see Ultra Sheer ® Sunscreen on your skin, the high-SPF mineral formula is working hard to protect you from the harshest UV rays. Joining Cena in the campaign is dermatologist and skin cancer surgeon Dr. Neera Nathan. "I had a blast working on this campaign. It's funny, but it also gets across a really important point—wearing SPF every day isn't something you should skip," said Joh ...

Core Insights - The campaign "Sunscreen You Can't See" emphasizes the effectiveness of Neutrogena® Ultra Sheer® Sunscreen, highlighting its high-SPF mineral formula that provides protection from UV rays while being lightweight and invisible on the skin [1][2] Product Features - Neutrogena® Ultra Sheer® Sunscreen offers broad-spectrum UVA/UVB protection through proprietary Helioplex® and Purescreen® Technology, ensuring a fast-absorbing, ultra-light, and non-greasy application [2] - The product is designed for daily use, aiming to make sunscreen application effortless and enjoyable [2] Marketing Strategy - The company aims to engage younger audiences by using humor and cultural relevance in its messaging about sun safety and daily sunscreen use [3] - Neutrogena® plans to enhance its commitment to sun safety education in 2025, increasing dermatologist engagement and providing sunscreen samples at events like the Coachella Valley Music and Arts Festival [3][4] Community Engagement - The brand will serve as the official sun care sponsor for the 2025 World Surf League, promoting sun protection for beach and water activities [4] - Neutrogena® has partnered with Young Minds Inspired to create the Sun Safety for All program, which aims to educate students nationwide about sun protection [4] Company Background - Kenvue Inc. is recognized as the world's largest pure-play consumer health company by revenue, with a portfolio of iconic brands including Neutrogena®, which has been developing skincare solutions for over 90 years [5][6]

Group 1 - The article discusses a value investing approach focusing on classical value ratios such as low P/B, P/FCF, Owner Earnings discounting, PEG ratios, and the Graham Number [1] - It emphasizes the importance of tracking earnings growth versus price appreciation as a key element in evaluating investment quality [1] - The author advocates for self-indexing using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula for tax efficiency [1] Group 2 - The author has a background in private credit and CRE mezzanine financing, having worked with notable CRE developers [1] - The article does not provide specific financial advice and is based on the author's personal opinions and experiences [3] - There is a disclosure of beneficial long positions in several companies, indicating a vested interest in the stocks mentioned [2]

Group 1 - Kenvue has settled its proxy fight with activist investor Starboard Value, with Starboard's Jeff Smith joining the board along with two new independent directors [1] - Kenvue is known for its well-known brands such as Aveeno, Band-Aid, Listerine, Neutrogena, Tylenol, and Johnson & Johnson's baby powder and shampoo [2] - Johnson & Johnson completed its separation from Kenvue in August 2023 but still retains a stake in the consumer goods company [2] Group 2 - Starboard Value has amassed a significant stake in Kenvue and has expressed disappointment in the company's management and share-price performance [2]

Transformation and Growth Strategy - Kenvue has executed a significant transformation agenda since its separation from J&J, focusing on modernizing systems and optimizing operations to drive sustainable and profitable growth[21]. - Following the Kenvue IPO in May 2023, J&J owned approximately 89.6% of Kenvue's outstanding common stock, which was reduced to 0% after the completion of the Debt for Equity Exchange in May 2024[22]. Product Portfolio and Innovation - Kenvue's product portfolio includes major brands in Self Care, Skin Health and Beauty, and Essential Health, with a focus on delivering connected health offerings and dermatological solutions[28]. - The company employs approximately 1,600 scientists and professionals in its R&D organization, which operates a global network of innovation hubs to enhance product development[31]. Manufacturing and Supply Chain - Over 60% of Kenvue's sales volume during fiscal year 2024 was delivered through in-house manufacturing, providing significant operational flexibility[37]. - Kenvue's distribution network is designed to meet complex consumer demands, with most centers operated in partnership with third-party operators to leverage their expertise[39]. - The company maintains a global supplier base for raw materials, ensuring no single supplier provides a significant portion of total material requirements, thus mitigating supply chain risks[36]. Workforce and Employee Engagement - Kenvue's workforce consists of approximately 22,000 employees, with 99% being full-time, reflecting a diverse and inclusive company culture[50]. - The company emphasizes transparency, empowerment, and accountability in its talent practices to enhance performance and engagement[52]. - Investment in learning and development is prioritized to ensure employees' skills remain relevant, contributing to superior performance and engagement[53]. - Regular surveys are conducted to gauge employee sentiment on strategic alignment, execution, inclusion, and career development[54]. - Competitive compensation and benefits packages are offered to attract and retain top talent, with periodic benchmarking to ensure competitiveness[56]. - Employee benefits include retirement plans, life insurance, medical and dental insurance, and well-being reimbursement programs[57]. Corporate Social Responsibility and ESG - The company's ESG strategy, known as the Healthy Lives Mission, focuses on nurturing healthy people, enriching a healthy planet, and maintaining healthy practices[45]. - The company supports communities through strategic investments and its global employee volunteer program, Kenvue Cares[55]. Regulatory Compliance and Risk Management - Compliance with extensive government regulations is essential, impacting business strategies and operational costs[65]. - The company’s OTC products are regulated under the FDA's monograph system, requiring adherence to specific quality and labeling standards[69]. - In China, OTC products are regulated by the National Medical Products Administration (NMPA), which oversees safety and registration[71]. Financial Performance and Economic Factors - A hypothetical 10% unfavorable change in the average exchange rate would result in a decline in net income of approximately $83 million for the fiscal year ending December 29, 2024[425]. - A hypothetical 10% unfavorable change in exchange rates would lead to an unrealized loss of approximately $187 million related to the fair value of forward foreign exchange contracts and cross currency swap contracts[426]. - Inflationary pressures have increased costs of raw materials, packaging, and other inputs, with price increases implemented to offset these costs during 2023 and 2024[427]. - The company has experienced higher than expected inflation since 2021, affecting transportation, commodity, and supply chain costs[428]. Debt and Interest Rate Management - The long-term debt portfolio is primarily composed of fixed-rate debt, minimizing the impact of interest rate fluctuations on results of operations[430]. - The company incurred approximately $9.0 billion of new debt related to the Debt Financing Transactions[431]. - As of December 29, 2024, the company has $7.7 billion of Senior Notes and $797 million of commercial paper outstanding[431]. - The company is exposed to interest rate risk due to potential changes in interest rates affecting new floating rate debt[431]. - The company entered into forward starting interest rate swap agreements for long-term financing purposes[432]. Commodity and Credit Risk Management - The company is exposed to commodity price risks from various inputs including resins, silicon, and energy[434]. - Credit risk is managed through evaluations of customers' financial conditions and obtaining collateral as appropriate[435]. - Current adverse macroeconomic factors may increase the difficulty in collecting receivables[435]. - The company contracts with diverse, credit-worthy counterparties to mitigate credit loss risks[435].