Fund Performance - The FPA Queens Road Small Cap Value Fund returned 7.46% in Q3 2025, underperforming the Russell 2000 Value Index which returned 12.60% [1] - For the first three quarters of 2025, the Fund achieved a return of 13.77%, outperforming the index's return of 9.04% [1] - The fund's strategy focuses on a diligent, disciplined, and patient approach, expecting to outperform in down markets and lag in speculative markets [1] Company Overview: Science Applications International Corporation (SAIC) - Science Applications International Corporation (SAIC) is a government contractor providing engineering and IT services, with a revenue split of approximately 50% from defense and 50% from civilian agencies [3] - As of November 21, 2025, SAIC's stock closed at $85.17 per share, with a market capitalization of $3.992 billion [2] - The stock experienced a one-month return of -8.63% and a 52-week decline of 30.31% [2] Market Context and Challenges - SAIC's stock has been negatively impacted by government spending cuts promised by the Trump administration, leading to uncertainty among investors regarding the extent of these cuts [3] - The company reported a 3% decline in revenue and reduced fiscal year estimates during its September 4th earnings release, contributing to a significant sell-off of its shares [3] - Current valuation of SAIC is approximately 10 times earnings, which may reflect an overly pessimistic outlook on potential cuts to its programs [3] Investment Sentiment - SAIC is not among the 30 most popular stocks held by hedge funds, with 33 hedge fund portfolios holding the stock at the end of Q2 2025, down from 39 in the previous quarter [4] - While SAIC is recognized for its potential, certain AI stocks are viewed as offering greater upside potential with less downside risk [4]

Core Points - Science Applications International Corp. (SAIC) has been awarded a $242 million contract by the Naval Undersea Warfare Center Division, Newport to support the Propulsion Test Facility (PTF) for the U.S. Navy [1][2] - The contract is a 5-year follow-on agreement that emphasizes the U.S. Navy's trust in SAIC's capabilities in engineering, technical, and logistics support [2][3] - The contract will enable SAIC to provide testing, engineering, and technical services for various torpedo systems and unmanned underwater vehicles, ensuring the PTF meets emerging Navy research and development needs [3] Company Overview - SAIC is a Fortune 500 mission integrator focused on technology and innovation across defense, space, civilian, and intelligence markets [4] - The company has approximately 24,000 employees and annual revenues of about $7.5 billion [5]

Core Insights - Science Applications International Corp (SAIC) was honored for its commitment to supporting American veterans and their families through a partnership with Building Homes for Heroes, which has resulted in the construction, gifting, and modification of 445 homes over 12 years [1][2]. Company Commitment - SAIC's Interim CEO, Jim Reagan, emphasized the company's deep connection to the armed forces, with over 25% of its employees being veterans, and expressed the privilege of supporting initiatives that transform veterans' lives through housing [2][3]. Partnership Impact - The partnership between SAIC and Building Homes for Heroes is highlighted as a model for how mission-driven organizations and corporations can create significant positive impacts for veterans [2]. - Building Homes for Heroes aims to deliver 50 homes in 2025 and reach its 500th home milestone by the end of 2026, with a goal of assisting over 5,000 veterans this year [2]. Organizational Achievements - Building Homes for Heroes has achieved a 96% program rating in 2024, marking the 13th consecutive year of a rating of at least 93%, and has received a perfect 4-star rating from Charity Navigator for seven years, including a 100% in transparency and accountability [4].

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market [3][4] Zacks Style Scores Overview - The Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, with ratings from A to F [4] - Value Score focuses on identifying undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score evaluates stocks based on price trends and earnings estimate changes [6] - VGM Score combines all three styles to identify stocks with the best overall characteristics [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock Highlight: SAIC - SAIC is a leading IT and professional services provider to the U.S. government, currently rated 3 (Hold) with a VGM Score of A [12] - The company has a Growth Style Score of B, with a projected year-over-year earnings growth of 4.8% for the current fiscal year [12] - Recent upward revision of earnings estimates indicates a consensus estimate increase of $0.08 to $9.57 per share, with an average earnings surprise of +25% [13]

Core Insights - SAIC is prioritizing its first major international expansion in India, viewing it as a strategic opportunity to support the country's aviation transformation [1][7] - The company aims to leverage its capabilities to drive faster development, greater efficiency, and enhance passenger safety and experience in India [2][6] Company Overview - SAIC is a leading technology and defense partner for the US government, with one-third of its business supporting the US civilian government and being a top contractor for the US Federal Aviation Administration [2][7] - The company is recognized as the largest air traffic controller training provider globally [7] Market Opportunities - SAIC sees significant opportunities in priority markets, including the GCC, UAE, and India, particularly in the context of India's rapid growth, which includes building a new airport every fifty days [5][6] - The company is showcasing next-generation air traffic control training, advanced simulation, and modernization solutions at the Dubai Air Show, emphasizing their role in enhancing safety, capacity, and operational excellence [5][6]

Core Viewpoint - Science Applications International Corp. (SAIC) is set to release its third quarter fiscal year 2026 results on December 4, 2025, with a conference call scheduled for 10:00 a.m. Eastern time to discuss operational and financial results [1][2]. Company Overview - SAIC is a Fortune 500 mission integrator focused on technology and innovation across defense, space, civilian, and intelligence markets, offering secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services [3]. - The company employs approximately 24,000 people and has annual revenues of around $7.5 billion, headquartered in Reston, Virginia [4].

Core Insights - Science Applications International Corp. (SAIC) has been awarded a $1.4 billion task order for the COBRA project to support the Department of War, focusing on multi-domain warfighting technologies [1][4] - The COBRA initiative aims to modernize existing military systems and enhance operational flexibility within the Combined Joint All-Domain Command and Control (CJADC2) ecosystem [2][3] - The project emphasizes the integration of various domains (sea, land, air, space, and cyber) to improve combat effectiveness and decision-making capabilities for military commands [3][4] Company Overview - SAIC is a leading mission integrator with a focus on technology and innovation, serving defense, space, civilian, and intelligence markets [4][5] - The company has approximately 24,000 employees and reported annual revenues of around $7.5 billion [5]

Core Insights - The collaboration between Science Applications International Corp. (SAIC) and HavocAI aims to enhance maritime domain awareness for the U.S. Navy by integrating SAIC's communication infrastructure with HavocAI's autonomous fleets [1][3][4] Group 1: Collaboration Details - The integration connects HavocAI's autonomy stack, which currently operates dozens of autonomous vessels, to SAIC's Joint Range Extension (JRE) system, enhancing command and control capabilities [2][4] - This partnership will allow for the seamless connection of diverse fleets of sensors and platforms, supporting the U.S. military's Combined Joint All Domain Command and Control (CJADC2) initiative [3][4] Group 2: Operational Impact - The integrated solution is expected to provide real-time situational awareness data to maritime operations centers, significantly improving operational capabilities for the Navy [4] - The collaboration is positioned to deliver immediate operational value and drive future maritime operations, enhancing decision-making speed and effectiveness [4] Group 3: Company Backgrounds - SAIC is a Fortune 500 mission integrator with annual revenues of approximately $7.5 billion, focusing on technology and innovation across defense, space, civilian, and intelligence markets [5][6] - HavocAI, founded in 2024, specializes in collaborative maritime autonomy and has delivered over 30 operational products to the U.S. military [7]

Core Insights - Science Applications International Corporation (SAIC) announced a strategic organizational restructuring aimed at enhancing growth opportunities and shareholder value creation while maintaining focus on operational results [2][5]. Business Group Consolidation - Effective January 31, 2026, SAIC will consolidate its five current business groups into three: the Army and Navy business groups will merge into the Army Navy Business Group (ANG), and the Air Force & Combatant Commands along with the Space and Intelligence business groups will form the Air Force, Space and Intelligence Business Group (AFSI) [3][10]. - The Civilian Business Group will remain unchanged [3][10]. Leadership Changes - The newly consolidated business groups will be led by existing SAIC executive vice presidents: Barbara Supplee for ANG, Vinnie DiFronzo for AFSI, and Srini Attili for the Civilian Business Group [5]. - Key executives Josh Jackson, David Ray, and Chief Innovation Officer Lauren Knausenberger will depart the company to pursue other opportunities [5][6]. Organizational Realignment - The Chief Innovation Office will be restructured to align more closely with the new business groups and the markets served [4]. - The restructuring is intended to optimize operations for speed, flexibility, and efficiency, thereby enhancing customer service and accelerating growth [5]. Company Overview - SAIC is a Fortune 500 mission integrator focused on technology and innovation across defense, space, civilian, and intelligence markets, with annual revenues of approximately $7.5 billion and a workforce of around 24,000 [7][8].

Group 1 - Science Applications International Corporation (SAIC) is recognized as an inexpensive stock with potential for investment, as noted by Jim Cramer [1] - SAIC provides a range of services including technical, engineering, IT services, AI solutions, digital engineering, and defense support [2] - The company announced the acquisition of SilverEdge Government Solutions for $205 million, which will enhance its cybersecurity and intelligence capabilities [2][3] Group 2 - The acquisition aims to integrate SilverEdge's technology to improve SAIC's delivery of national security solutions, with a closing expected in the third quarter of fiscal 2026 [3] - SilverEdge's CEO emphasized the alignment of their mission with SAIC's focus on innovation and national security, indicating a strong future collaboration [3] - While SAIC shows potential, there are other AI stocks that may offer greater upside and less downside risk, suggesting a competitive landscape in the AI sector [3]