Market Overview - The three major U.S. indexes, Nasdaq Composite, Dow Jones Industrial Average, and S&P 500, experienced declines of 2.6%, 2.5%, and 1.9% respectively during a holiday-shortened trading week [1] - Concerns over persistent inflation, disappointing economic reports, and new tariff threats from President Trump contributed to investor anxiety [1] Federal Reserve and Economic Indicators - The Federal Reserve maintained key interest rates but expressed worries about rising inflation and the potential effects of Trump's fiscal, trade, and immigration policies [2] - The U.S. Consumer Sentiment Index dropped to a 15-month low of 64.7 in February, down from 71.7 in January [2] - The S&P Global's flash U.S. Composite PMI Output Index fell to a 17-month low of 50.4, down from 52.7 in January [2] Stock Performance and Recommendations - Nomura Holdings, Inc. (NMR) saw a share price increase of 12.3% since being upgraded to Zacks Rank 2 (Buy) on December 24 [3] - Corning Incorporated (GLW) returned 8.8% since its upgrade to Zacks Rank 2 on December 31 [4] - A hypothetical portfolio of Zacks Rank 1 (Strong Buy) stocks returned -3.48% in January 2025, compared to -0.60% for the S&P 500 index [4] Zacks Model Portfolio Performance - The Zacks Model Portfolio, consisting of Zacks Rank 1 stocks, has outperformed the S&P 500 index by nearly 13 percentage points since 1988, with an annualized average return of +23.9% [6] - The Zacks Focus List portfolio returned +3.13% in January 2025, outperforming the S&P 500 index's +2.79% [11] - The Focus List portfolio has produced an annualized return of +11.81% since 2004, compared to +10.48% for the S&P 500 index [12] Sector-Specific Stock Performance - AutoZone, Inc. (AZO) increased by 8.7% over the past 12 weeks, while Costco Wholesale Corporation (COST) rose by 7.4% [13] - The Coca-Cola Company (KO) returned 11.6% over the past 12 weeks, and Quest Diagnostics Incorporated (DGX) increased by 5.3% [16] - Primo Brands Corporation (PRMB) jumped 10.7% year-to-date, outperforming the S&P 500 index's 2.4% increase [19]

Core Viewpoint - Nomura Holdings (NMR) is currently viewed as a superior value opportunity compared to Bank of America (BAC) based on various valuation metrics [1][7]. Valuation Metrics - NMR has a forward P/E ratio of 9.03, while BAC has a forward P/E of 12.66 [5]. - NMR's PEG ratio is 0.31, indicating a more favorable valuation relative to its expected EPS growth rate compared to BAC's PEG ratio of 1.26 [5]. - NMR's P/B ratio stands at 0.84, contrasting with BAC's P/B of 1.32, suggesting that NMR is undervalued relative to its book value [6]. Earnings Outlook - Both NMR and BAC have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3].

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Financial Data and Key Metrics Changes - Group-wide net revenue increased by 4% quarter-on-quarter to JPY 502 billion [4] - Income before income taxes grew by 4% to JPY 138.3 billion, while net income rose to JPY 101.4 billion, representing a 3% increase over the last quarter [4] - EPS reached JPY 33.08, and annualized return on equity was 11.8%, marking the seventh consecutive quarter of profit growth [5][6] Business Line Data and Key Metrics Changes - Wealth management net revenue was flat quarter-on-quarter at JPY 116.3 billion, with income before income taxes growing by 2% to JPY 46.2 billion [14] - Investment management net revenue decreased by 18% to JPY 45.7 billion, while income before income taxes fell by 41% to JPY 18.9 billion [24] - Wholesale net revenue increased by 10% to JPY 290.5 billion, with income before income taxes reaching JPY 62.4 billion, the highest level in four years [28][29] Market Data and Key Metrics Changes - International business accounted for nearly 40% of group-wide income before income taxes, with income before income taxes in international regions increasing by 30% over the last quarter [6] - Net inflows of recurring revenue assets exceeded JPY 1.1 trillion in the first three quarters, surpassing the full-year target of JPY 800 billion [22] - Sales of investment trusts increased by 9%, driven by demand for US growth stock investment trusts [19] Company Strategy and Development Direction - The company aims to achieve a consistent ROE of 8% to 10% or more by 2030, focusing on stable recurring profits to enhance earnings stability [39] - Strategic initiatives have led to improved profitability in international operations, with a focus on diversifying revenue sources across all divisions [5][36] - The company plans to maintain cost controls while pursuing bottom-line growth, despite inflationary pressures [81][82] Management's Comments on Operating Environment and Future Outlook - Management noted that while January started slowly compared to Q3, revenue levels remain acceptable, and they continue to aim for bottom-line growth [40] - The company expressed confidence in achieving record high net profits, emphasizing the importance of stabilizing top-line growth and diversifying revenue streams [132][133] - Management acknowledged the challenges posed by external inflationary pressures but remains committed to cost control [83] Other Important Information - The company plans to celebrate its 100th anniversary on December 25, 2025, and will pay a commemorative dividend of JPY 10 per share to shareholders of record as of March 31, 2025 [41] - The sale of the Takanawa property is expected to generate a pre-tax income of approximately JPY 56 billion [40] Q&A Session Summary Question: About wholesale fixed income business and sustainability of revenue environment - Management indicated that the securitization business was strong, with efforts to improve fund turnover and diversify the portfolio [49][50] Question: Regarding asset efficiency and future sales of assets - Management confirmed that they are proactively selling policy holdings and do not expect to change the ratio of holdings significantly [52][121] Question: Shareholder return and dividend policy - Management clarified that the commemorative dividend is separate from regular dividends, and they will monitor proceeds from asset sales for potential shareholder returns [65][66] Question: Impact of client visit rules on sales - Management noted minimal impact on existing client relationships but acknowledged a slight slowdown in new customer acquisition [78] Question: Investment management pipeline and revenue forecast - Management expressed confidence in a strong M&A and ECM pipeline, with expectations for continued high performance in investment banking [95]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Nomura Holdings (NMR) - Nomura Holdings currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Price Performance - NMR shares have increased by 3.51% over the past week, outperforming the Zacks Financial - Investment Bank industry, which rose by 0.24% [6]. - Over the last month, NMR's price change is 21.18%, significantly higher than the industry's 6.84% [6]. - In the past quarter, NMR shares rose by 21.39%, and over the last year, they increased by 27.37%, while the S&P 500 only moved 5.14% and 24.19%, respectively [7]. Trading Volume - NMR's average 20-day trading volume is 604,871 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, one earnings estimate for NMR has increased, while none have decreased, raising the consensus estimate from $0.61 to $0.76 [10]. - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, NMR is recommended as a solid pick for investors seeking short-term gains [12].

[Financial Summary for the Nine Months Ended December 31, 2024](index=4&type=section&id=Financial%20Summary%20for%20the%20Nine%20Months%20Ended%20December%2031%2C%202024) This section provides a comprehensive financial overview of Nomura Holdings for the nine months ended December 31, 2024 [Consolidated Operating Results](index=4&type=section&id=1.%20Consolidated%20Operating%20Results) For the nine months ended December 31, 2024, Nomura Holdings reported significant growth in net revenue and net income Operating Results for the Nine Months Ended December 31 | Indicator | 2023 (Millions of yen) | 2024 (Millions of yen) | % Change | | :--- | :--- | :--- | :--- | | Net revenue | 1,116,898 | 1,439,750 | 28.9% | | Income before income taxes | 181,756 | 374,220 | 105.9% | | Net income attributable to NHI shareholders | 109,113 | 268,766 | 146.3% | | Basic EPS (Yen) | 36.08 | 90.95 | 152.1% | | Diluted EPS (Yen) | 34.69 | 87.66 | 152.7% | | Return on shareholders' equity (annualized) | 4.5% | 10.4% | - | [Financial Position](index=4&type=section&id=2.%20Financial%20Position) As of December 31, 2024, Nomura's total assets and shareholders' equity significantly increased Financial Position as of December 31, 2024 | Indicator | At March 31, 2024 (Millions of yen) | At December 31, 2024 (Millions of yen) | | :--- | :--- | :--- | | Total assets | 55,147,203 | 60,529,845 | | Total NHI shareholders' equity | 3,350,189 | 3,569,930 | | Total NHI shareholders' equity as a percentage of total assets | 6.1% | 5.9% | | Total NHI shareholders' equity per share (Yen) | 1,127.72 | 1,207.81 | [Cash Dividends](index=5&type=section&id=3.%20Cash%20Dividends) Nomura declared a **¥23.00** per share dividend for September 30, 2025, including a special commemorative dividend Dividends Per Share (Yen) | Record Date | FY2024 | FY2025 (Plan) | | :--- | :--- | :--- | | At September 30 | 8.00 | 23.00 | | At March 31 | 15.00 | Unconfirmed | | **For the year** | **23.00** | **Unconfirmed** | - The planned dividend for the year ending March 31, 2025 includes a **¥10.00** commemorative dividend for the company's 100th anniversary[14](index=14&type=chunk)[15](index=15&type=chunk) [Earnings Forecasts](index=5&type=section&id=4.%20Earnings%20Forecasts) Nomura refrains from providing earnings or dividend forecasts due to global capital market uncertainties - The company refrains from issuing earnings forecasts because of uncertainties in the global capital markets[16](index=16&type=chunk)[30](index=30&type=chunk) [Qualitative Information of the Quarterly Consolidated Results](index=7&type=section&id=1.%20Qualitative%20Information%20of%20the%20Quarterly%20Consolidated%20Results) This section offers qualitative insights into Nomura's quarterly consolidated results, performance drivers, and financial position [Consolidated Operating Results Breakdown](index=7&type=section&id=1.%20%281%29%20Consolidated%20Operating%20Results) Nomura's net revenue for the nine-month period increased **28.9%**, driven by strong performance across all divisions Business Segment Performance (Nine Months Ended Dec 31, 2024) | Segment | Net Revenue (¥B) | % Change YoY | Income Before Tax (¥B) | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Wealth Management | 346.9 | 18.2% | 133.7 | 59.3% | | Investment Management | 149.5 | 35.2% | 74.1 | 74.5% | | Wholesale | 798.8 | 30.5% | 128.8 | 286.3% | - The Retail Division was renamed the 'Wealth Management Division' effective April 1, 2024[23](index=23&type=chunk) - Assets under management in the Investment Management division reached **¥93.5 trillion** as of December 31, 2024[25](index=25&type=chunk) [Consolidated Financial Position Analysis](index=9&type=section&id=1.%20%282%29%20Consolidated%20Financial%20Position) Total assets increased by **¥5.4 trillion** to **¥60.5 trillion**, primarily due to higher trading assets - Total assets increased by **¥5,382.6 billion** compared to March 31, 2024, primarily due to a rise in Trading assets[29](index=29&type=chunk) - Total liabilities increased by **¥5,156.0 billion**, mainly from an increase in Trading liabilities[29](index=29&type=chunk) [Quarterly Consolidated Financial Statements](index=10&type=section&id=2.%20Quarterly%20Consolidated%20Financial%20Statements) This section presents Nomura's unaudited quarterly consolidated financial statements, including accounting policy changes and a key subsequent event Consolidated Balance Sheet Summary (in Millions of yen) | Account | March 31, 2024 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **55,147,203** | **60,529,845** | **5,382,642** | | Trading assets | 19,539,742 | 23,629,649 | 4,089,907 | | **Total Liabilities** | **51,698,690** | **56,854,739** | **5,156,049** | | Trading liabilities | 10,890,610 | 13,641,814 | 2,751,204 | | **Total Equity** | **3,448,513** | **3,675,106** | **226,593** | Consolidated Income Statement Summary (Nine Months Ended Dec 31, in Millions of yen) | Account | 2023 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenue | 2,986,540 | 3,657,389 | 22.5% | | Net revenue | 1,116,898 | 1,439,750 | 28.9% | | Total non-interest expenses | 935,142 | 1,065,530 | 13.9% | | Income before income taxes | 181,756 | 374,220 | 105.9% | | Net income attributable to NHI shareholders | 109,113 | 268,766 | 146.3% | - A significant subsequent event occurred after the quarter-end: a subsidiary entered a contract to sell real estate in Tokyo, which is expected to result in approximately **¥56 billion** of pre-tax income in either Q4 FY25 or Q1 FY26[52](index=52&type=chunk) - Effective April 1, 2024, Nomura changed its accounting policy to no longer apply broker-dealer accounting (ASC 940) to its non-broker-dealer entities, allowing new non-trading debt securities to be classified as held-to-maturity (HTM) or available-for-sale (AFS)[39](index=39&type=chunk)[40](index=40&type=chunk) [Supplementary Information](index=19&type=section&id=3.%20Supplementary%20Information) This section provides quarterly comparative data for consolidated statements of income and business segment information Quarterly Income Statement (Three Months Ended Dec 31, 2024 vs Sep 30, 2024) | Indicator (Millions of yen) | Sep 30, 2024 (A) | Dec 31, 2024 (B) | % Change (B-A)/(A) | | :--- | :--- | :--- | :--- | | Net revenue | 483,327 | 501,981 | 3.9% | | Income before income taxes | 133,010 | 138,279 | 4.0% | | Net income attributable to NHI shareholders | 98,387 | 101,441 | 3.1% | Quarterly Segment Income Before Taxes (Three Months Ended Dec 31, 2024 vs Sep 30, 2024) | Segment (Millions of yen) | Sep 30, 2024 (A) | Dec 31, 2024 (B) | % Change (B-A)/(A) | | :--- | :--- | :--- | :--- | | Wealth Management | 45,289 | 46,174 | 2.0% | | Investment Management | 31,935 | 18,938 | -40.7% | | Wholesale | 45,294 | 62,361 | 37.7% |

Core Viewpoint - Nomura Holdings (NMR) is currently considered a more attractive value investment compared to Bank of America (BAC) based on various valuation metrics [3][7]. Valuation Metrics - NMR has a forward P/E ratio of 9.34, while BAC has a forward P/E of 12.66, indicating that NMR is undervalued relative to BAC [5]. - The PEG ratio for NMR is 0.41, suggesting strong expected EPS growth relative to its price, whereas BAC has a PEG ratio of 1.26, indicating a less favorable growth outlook [5]. - NMR's P/B ratio stands at 0.82, compared to BAC's P/B of 1.31, further supporting the notion that NMR is undervalued [6]. Earnings Outlook - Both NMR and BAC have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3][7]. - Despite both companies having solid earnings prospects, NMR's superior valuation metrics position it as the better value option [7].

Core Viewpoint - Nomura Holdings (NMR) has shown a downtrend recently, losing 5.9% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near or above the opening price, reflecting some buying interest [3][4]. - This pattern is significant when it occurs at the bottom of a downtrend, signaling that bears may be losing control [4]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for NMR, which supports the bullish case for the stock [2][6]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 6.4%, indicating that analysts expect better earnings than previously predicted [7]. - NMR holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8]. Conclusion - The combination of the hammer chart pattern and positive earnings estimate revisions enhances the likelihood of a trend reversal for Nomura Holdings [1][6][8].

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation m ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, inc ...