Summary of the Americas Thematic Focus List Conference Call Industry and Company Overview - **Industry**: The thematic focus is on various sectors across North America and Latin America, particularly in technology, energy, healthcare, and education. - **Companies Featured**: The focus list includes notable companies such as Amazon, Microsoft, NVIDIA, Eli Lilly, and Walmart, among others. Key Themes for 2026 1. **Tech Diffusion**: Emphasizes the rapid adoption of AI technologies across various sectors, with significant implications for productivity and competitive dynamics [12][14]. 2. **The Future of Energy**: Focuses on the increasing demand for energy driven by AI infrastructure and the transition to renewable energy sources [12][17]. 3. **The Multipolar World**: Highlights the shift towards localized supply chains and national economic security, impacting multinational corporations [12][13]. 4. **Societal Shifts**: Explores the implications of demographic changes, AI-driven employment disruption, and evolving consumer preferences [12][18]. Americas Thematic Focus List - **List Composition**: The focus list includes 18 high-conviction stock ideas, with a target holding period of 12-18 months [9][20]. - **Key Companies on the List**: - **Amazon (AMZN)**: Positioned as a leader in AI infrastructure, with a projected 32% upside to a price target of $238.18 [23]. - **Microsoft (MSFT)**: Expected to capture significant AI spending, with a 42% upside to a price target of $456.66 [23]. - **Eli Lilly (LLY)**: A leader in the GLP-1 market, with a 25% upside to a price target of $1,032.97 [23]. - **Walmart (WMT)**: Leveraging AI for operational efficiency, with a 13% upside to a price target of $119.20 [23]. Methodology and Specifications - **Focus List Size**: 15-20 stocks, with equal weighting upon construction [21]. - **Sector Weights**: No fixed sector weights, aiming for diversification [21][22]. - **Regional Weights**: Targeting 80-85% in the USA and 15-20% in Latin America [28]. Important Insights and Data - **Amazon's Growth**: Amazon's custom silicon strategy has grown 150% sequentially, indicating strong demand for its AI capabilities [29]. - **Eli Lilly's Market Potential**: The global diabesity market is projected to exceed $150 billion by the early 2030s, with significant growth opportunities for Eli Lilly [39]. - **NVIDIA's Dominance**: NVIDIA is positioned to capture a significant share of the projected $3-4 trillion in annual AI infrastructure spending by the end of the decade [53]. - **Walmart's AI Strategy**: Walmart's AI initiatives have led to a 50% automation rate in its supply chain, significantly reducing delivery costs [68]. Conclusion The Americas Thematic Focus List presents a strategic overview of high-conviction investment opportunities across key sectors, driven by transformative themes such as technology diffusion and energy transition. The insights provided highlight the potential for significant growth and the evolving landscape of investment in the Americas.

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Rockwell Automation (ROK) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 4.8%, but projected EPS growth for this year is expected to be 13.9%, surpassing the industry average of 12.9% [4] Group 2: Financial Metrics - Rockwell Automation's year-over-year cash flow growth is currently at 21.6%, significantly higher than the industry average of -1.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 10.3%, compared to the industry average of 4.8% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Rockwell Automation have been revised upward, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8] - The combination of a Growth Score of B and a Zacks Rank 2 positions Rockwell Automation favorably for potential outperformance [10]

Core Viewpoint - Rockwell Automation (ROK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - For Rockwell Automation, the recent upgrade reflects an improvement in its underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - The Zacks Consensus Estimate for Rockwell Automation indicates expected earnings of $11.99 per share for the fiscal year ending September 2026, with a 5.4% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Rockwell Automation's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Viewpoint - Rockwell Automation has shown strong stock performance, reaching a 52-week high and outperforming its sector and industry peers in terms of stock returns [1] Group 1: Stock Performance - Rockwell Automation's stock has increased by 3.9% over the past month and 7.2% since the beginning of the year, compared to a 29% increase in the Zacks Computer and Technology sector and a 41.6% return in the Zacks Electronics - Miscellaneous Products industry [1] Group 2: Earnings Performance - The company has consistently beaten earnings estimates, with an EPS of $3.34 reported against a consensus estimate of $2.94 in its last earnings report [2] - For the current fiscal year, Rockwell Automation is projected to achieve earnings of $11.99 per share on revenues of $8.87 billion, reflecting a 13.87% increase in EPS and a 6.3% increase in revenues [3] Group 3: Valuation Metrics - The stock trades at a valuation of 34.8 times the current fiscal year EPS estimates, which is above the peer industry average of 24.5 times [7] - On a trailing cash flow basis, the stock trades at 26.9 times compared to the peer group's average of 17.6 times, with a PEG ratio of 2.81 [7] Group 4: Zacks Rank and Style Scores - Rockwell Automation holds a Zacks Rank of 2 (Buy), indicating a favorable earnings estimate revision trend [8] - The company has a Value Score of D, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of B [6]

Core Insights - Rockwell Automation, Inc. published its 2025 Sustainability Report, highlighting its commitment to integrating technology and manufacturing for sustainability [1] - The company emphasizes its unique position as both a manufacturer and a partner to industrial companies, focusing on innovation and sustainability to enhance operational efficiency [2] Environmental Focus - The sustainability strategy includes advancing energy and emissions management, designing sustainable products, and building a responsible supply chain [3] - The company is setting science-based targets for emissions reductions and investing in climate-proofing supply chains [6] Social Responsibility - Rockwell aims to create a culture that empowers employees, prioritizes safety, and invests in future workforce development [3] - The company is committed to making its operations and culture safer, more efficient, and responsible [4] Governance and Integrity - Rockwell demonstrates integrity through its practices in cybersecurity, product safety, enterprise risk, and ethical leadership [3] - The company’s governance framework supports its sustainability goals and long-term value creation [4] Stakeholder Engagement - Rockwell's sustainability efforts aim to enable customers to achieve their sustainability goals through scalable and intelligent solutions [3] - The company invests in communities where employees live and work, focusing on education, workforce development, and environmental stewardship [4] Strategic Vision - The sustainability strategy is viewed as a growth strategy, with measurable progress being a key focus [4] - Rockwell Automation employs approximately 26,000 individuals globally, dedicated to enhancing productivity and sustainability across industrial enterprises [5]

Core Viewpoint - Rockwell Automation, Inc. (ROK) is positioned as a leading player in industrial automation and digital transformation, with a market cap of $46.1 billion and is set to announce its fiscal Q1 earnings for 2026 soon [1] Financial Performance - Analysts anticipate ROK to report a profit of $2.48 per share for fiscal Q1 2026, reflecting a 35.5% increase from $1.83 per share in the same quarter last year [2] - For the full fiscal year 2026, ROK is expected to achieve a profit of $12.08 per share, which is a 14.7% increase from $10.53 per share in fiscal 2025, with further growth projected to $13.56 per share in fiscal 2027, representing a 12.3% year-over-year increase [3] Stock Performance - ROK's stock has increased by 51.5% over the past 52 weeks, significantly outperforming the S&P 500 Index's return of 19.7% and the State Street Industrial Select Sector SPDR ETF's increase of 24.2% during the same period [4] - Following the release of impressive Q4 earnings results, ROK shares rose by 2.7% on November 6, with total revenue increasing by 13.8% year-over-year to $2.3 billion, exceeding consensus expectations by 5% [5] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for ROK, with 12 out of 24 analysts recommending "Strong Buy" and the remaining 12 suggesting "Hold" [6] - Although ROK is currently trading above its mean price target of $409.36, the highest price target of $470 indicates a potential upside of 13.5% from current levels [6]

Group 1 - Alpha Wealth Insiders Fund reported a return of 4.96% in September 2025, with year-to-date returns reaching 21.37%, outperforming the S&P 500's September return of 3.65% and year-to-date return of 14.83% [1] - The fund highlighted Rockwell Automation, Inc. (NYSE:ROK) as a key investment, noting its one-month return of -0.91% and a significant 52-week gain of 41.60% [2] - Rockwell Automation operates in three segments: Intelligent Devices, Software & Control, and Lifecycle Services, providing products and services aimed at enhancing manufacturing efficiency [3] Group 2 - Rockwell Automation, Inc. is not among the 30 most popular stocks among hedge funds, with 51 hedge fund portfolios holding the stock at the end of Q3 2025, an increase from 49 in the previous quarter [4] - Despite the potential of Rockwell Automation as an investment, the company is viewed as having less upside compared to certain AI stocks, which are considered to carry less downside risk [4]

Market Overview - The U.S. stock market experienced a slight decline on December 26, 2025, primarily due to low trading volume following the Christmas holiday, with many institutional investors absent for the year [1] - Major indexes such as the S&P 500, Dow, and Nasdaq saw small dips, ending short winning streaks observed earlier in the week [1][9] Investment Strategy - During the holiday season, equity investors may favor dividend-growth stocks over high price-growth stocks, as companies with a consistent history of dividend increases often exhibit strong financial health [2] - Dividend-growth stocks provide a defensive hedge against economic uncertainty and market volatility, making them attractive during periods of low market activity [4] Dividend Growth Stocks - Stocks with a strong history of year-over-year dividend growth are considered healthier investments, offering greater potential for capital appreciation compared to simple dividend-paying stocks [3][6] - Five selected dividend-growth stocks include: - Woodward Inc. (WWD): Expected revenue growth of 11.1% for fiscal 2026, long-term earnings growth rate of 15.20%, and an annual dividend yield of 0.36% [10] - Enersys (ENS): Projected revenue growth of 4% for fiscal 2026, long-term earnings growth rate of 15%, and an annual dividend yield of 0.70% [11] - Donaldson (DCI): Anticipated revenue growth of 3.5% for fiscal 2026, long-term earnings growth rate of 10%, and an annual dividend yield of 1.31% [12] - Rockwell Automation (ROK): Expected revenue growth of 5.8% for fiscal 2026, long-term earnings growth rate of 12.4%, and an annual dividend yield of 1.38% [13] - Vertiv Holdings (VRT): Projected revenue growth of 27.5% for fiscal 2025, long-term earnings growth rate of 30.2%, and an annual dividend yield of 0.15% [14] Stock Selection Criteria - Stocks selected for their strong fundamentals include criteria such as: - 5-Year Historical Dividend Growth Greater Than Zero [6] - 5-Year Historical Sales Growth Greater Than Zero [7] - 5-Year Historical EPS Growth Greater Than Zero [7] - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Price/Cash Flow Less Than Industry Median [8] - 52-Week Price Change Greater Than S&P 500 [8]

Core Insights - The hydrogen energy industry is experiencing explosive growth, with significant emphasis on safety and quality control in hydrogen storage bottle production [1] - A partnership between Rockwell Automation and Beijing Max Times aims to enhance production management and compliance through a digital traceability system [2][3] Challenges - Quality traceability efficiency needs improvement, as manual checks are time-consuming, taking up to 4 hours per bottle [1][6] - Stringent control over production processes is required due to the complexity of manufacturing hydrogen storage bottles, which involves multiple critical steps [1] - Compliance requirements are increasing, necessitating adherence to standards such as GB/T 35544 and ISO 9001 [1] - The need for flexible production processes is highlighted as diverse hydrogen applications lead to a variety of bottle models and pressure levels [1] Solutions - The implementation of the ThingWorx industrial IoT platform allows for real-time monitoring and analysis of production processes, enhancing consistency and quality [2][3] - A unique identification system for each hydrogen storage bottle is established, utilizing QR codes or RFID for comprehensive traceability throughout the production lifecycle [2] - The deployment of an OPC Router central communication platform integrates data from various production systems, ensuring seamless data collection and aggregation [5] Results - The digital traceability system significantly reduces quality issue resolution time from 4 hours to just 3 minutes, enabling precise recall and minimizing quality losses [6] - The system ensures 100% compliance with GB/T 35544 requirements, covering all critical data points throughout the production lifecycle [6] - Real-time monitoring of production parameters has led to a 95% reduction in parameter violation rates, enhancing overall production stability [6]

Group 1 - The article provides a market analysis covering key players in the automation and technology sectors, specifically Rockwell Automation Inc, Teradyne Inc, Zebra Technologies Corporation, and Symbotic Inc [1] - It highlights the growth trends and market dynamics affecting these companies, indicating a positive outlook for automation technologies driven by increased demand for efficiency and productivity [1] - The analysis includes financial performance metrics and projections for these companies, showcasing their revenue growth and market share within the industry [1] Group 2 - Rockwell Automation Inc is noted for its strong position in the industrial automation market, with significant investments in innovation and technology development [1] - Teradyne Inc is recognized for its advancements in test automation and robotics, contributing to its competitive edge in the semiconductor and electronics sectors [1] - Zebra Technologies Corporation is highlighted for its focus on enterprise asset intelligence, leveraging data analytics to enhance operational efficiency [1] - Symbotic Inc is discussed in the context of its automated supply chain solutions, which are gaining traction in the logistics and warehousing industries [1]