Core Insights - Hardman Johnston Global Advisors reported underperformance in its portfolio for Q3 2025, with a return of 5.02% net of fees, compared to 7.62% for the MSCI AC World Net Index [1] Company Performance - Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is highlighted as a key stock, with a one-month return of 8.76% and a 52-week gain of 15.91% [2] - As of December 26, 2025, Vertex's stock closed at $462.90 per share, with a market capitalization of $118.683 billion [2] Challenges and Opportunities - Vertex Pharmaceuticals faced challenges in Q3 2025, with underperformance attributed to macro uncertainties from a Section 232 tariff investigation into medical devices and setbacks in chronic pain treatment developments [3] - The company ended its pursuit of a broad chronic neuropathic pain label for Journavx, which limited its total addressable market (TAM) in chronic pain, despite the drug being approved for acute pain with positive initial indications [3] - Vertex's next-generation pain asset, VX-993, failed in phase II development, impacting stock performance [3] - Positive updates were noted in other areas, including progress in treatments for kidney disease, type 1 diabetes, and gene-editing therapy, indicating a strong pipeline [3] - The launch of Alyftrek, a next-generation cystic fibrosis treatment, is underway, with patients transitioning from Trikafta, which is expected to improve margins due to a lower royalty burden [3] - The long-term outlook for Vertex remains positive, supported by its high-margin cystic fibrosis franchise and a robust balance sheet [3]

Amazon - Amazon has deployed over 1 million robots in its warehouses, projected to save up to $4 billion annually in fulfillment costs, with expectations of significantly lifting operating margins for the retail segment by 2030 [1] - The company is investing heavily in AI, with planned capital expenditures projected at $125 billion in 2025, focusing on custom silicon chips to enhance performance and reduce costs compared to competitors [2] - Amazon's advertising segment is the fastest-growing, with annualized revenue expected to exceed $60 billion in 2025, potentially approaching $100 billion annually in the coming years [3] - Amazon Web Services (AWS) remains the primary profit engine, accounting for approximately 30% of the global cloud infrastructure market [4] - In Q3 2025, Amazon reported revenue of $180.2 billion, a 13% year-over-year increase, with net income rising 38% to $21.2 billion [7] Vertex Pharmaceuticals - Vertex Pharmaceuticals has a trailing-10-year return of around 90%, driven by its cystic fibrosis drug franchise and expansion into the rare disease market [8] - The company is diversifying its portfolio with late-stage clinical programs targeting kidney disease, pain management, and type 1 diabetes, supported by a solid balance sheet and substantial free cash flow [9] - Vertex is launching Casgevy, a gene-editing therapy for sickle cell disease, and Journavx, a non-opioid medicine for pain management, with significant market interest and regulatory approvals [10][11] - The company reported revenue of over $3 billion in Q3 2025, an 11% increase from the previous year, and is positioned for significant growth through innovation and diversification [14] TJX Companies - TJX Companies has seen a nearly 150% increase in stock value over the last five years, attributed to its effective off-price retail model [15] - The company plans to expand its store footprint to 7,000 globally, enhancing its physical presence in existing and new markets [16] - TJX's business model encourages frequent shopper visits due to its ever-changing inventory and unique product offerings, appealing to cost-conscious consumers [17] - In Q3 2026, TJX reported earnings per share of $1.28 on $15.1 billion in revenue, reflecting year-over-year increases of 12% and 7% respectively [19]

Core Viewpoint - Moderna has transitioned from a clinical-stage biotech to a profitable commercial-stage company due to its coronavirus vaccine, but recent declines in vaccine sales and underperformance of its RSV vaccine raise concerns about its growth potential [1][2] Group 1: Moderna's Current Situation - Moderna's stock has seen a decline in vaccine sales, and its RSV vaccine has not met growth expectations [2] - Despite challenges, Moderna has made progress in cost-cutting and is focusing on promising programs, leading to a stock increase of over 30% in the past month [2] - The company aims for cash breakeven by 2028 and the launch of new products, which may not appeal to cautious investors [5] Group 2: Vertex Pharmaceuticals Overview - Vertex Pharmaceuticals is highlighted as a better investment option for both cautious and aggressive investors due to its strong earnings growth in cystic fibrosis treatment [6] - Vertex's CFTR modulators, Trikafta and Alyftrek, treat nearly 95% of cystic fibrosis patients, with ongoing development for remaining patients [7] - Vertex's revenue increased by 11% to over $3 billion in the latest quarter, driven by its CF products [8] Group 3: New Product Approvals and Pipeline - Vertex has expanded its product line with approvals for Casgevy and Journavx, which could significantly boost revenue in the coming years [9] - Journavx addresses a critical need for effective non-opioid pain management, with over 300,000 prescriptions filled since its launch [9] Group 4: Financial Performance and Valuation - Vertex's stock has increased nearly 100% over the past five years and about 15% this year, indicating strong long-term and short-term performance [11] - The current valuation of Vertex is 25 times forward earnings estimates, a reasonable price given its market leadership and expanding product portfolio [11] - Vertex's financial strength and diverse product offerings position it well for future growth, making it a more attractive investment compared to Moderna [12]

Core Viewpoint - The technology sector, led by artificial intelligence (AI), is on track for a third consecutive year of over 20% gains, but signs of narrowing leadership and increased volatility are emerging, prompting a shift towards defensive stocks to balance risks in tech holdings [1]. Group 1: Defensive Sectors - Traditional defensive sectors such as blue-chip pharmaceuticals, regulated utilities, and essential consumer goods continue to play a significant role in investment strategies [3]. - Quantitative strategist Steven Cress has identified four high-quality defensive stocks that combine durable cash flows, essential services, and key growth metrics, suitable for investment if the tech sector cools down by 2026 [3]. Group 2: Brookfield Infrastructure (BIP.US) - Brookfield Infrastructure operates a global portfolio of high-quality infrastructure assets, generating predictable cash flows largely insulated from economic cycles, supported by long-term contracts linked to inflation [4]. - The company reported a funds from operations (FFO) of $654 million for Q3 2025, with a per unit FFO of $0.83, reflecting a 9% year-over-year growth [5]. - Brookfield aims to distribute 60-70% of its FFO as dividends, targeting a 5-9% annual dividend growth, making it a foundational holding for defensive allocations in 2026 [5][6]. Group 3: Iberdrola (IBDRY.US) - Iberdrola is one of the largest electric utility companies globally, with a strong focus on renewable energy and regulated pricing structures that provide profit visibility [7]. - The company reported a 16.6% year-over-year increase in net profit and a 4.4% growth in adjusted EBITDA for the first nine months of the year, supported by robust cash flow of $15 billion [7]. - Iberdrola offers a solid dividend yield of 3.40%, making it an attractive option for investors seeking stability and gradual growth [8]. Group 4: Vertex Pharmaceuticals (VRTX.US) - Vertex Pharmaceuticals is a biotechnology company known for its leadership in cystic fibrosis and sickle cell disease, providing strong recurring revenue and industry-leading profit growth [9]. - The company has a low price-to-earnings growth (PEG) ratio of 0.16, indicating an attractive valuation relative to its future earnings growth [9]. - Vertex is diversifying its pipeline beyond cystic fibrosis, which supports its strong forward growth indicators, including a projected EBITDA growth rate of nearly 12% [10]. Group 5: Incyte (INCY.US) - Incyte focuses on oncology and inflammatory diseases, with its flagship product Jakafi being a cornerstone of its revenue and cash flow [11]. - The company has a price-to-earnings ratio of 14.20, significantly lower than the industry median, and a PEG ratio of 0.07, indicating strong growth potential at an attractive valuation [11]. - Incyte's recent approval of a treatment option for certain adult follicular lymphomas further supports its growth outlook [11]. Summary - As the technology sector shows signs of fatigue, investors may find better risk-adjusted opportunities in defensive sectors with inherent growth drivers. Brookfield Infrastructure and Iberdrola provide classic, cash flow-driven utility defensive attributes, while Vertex Pharmaceuticals and Incyte enhance the resilience of the healthcare sector [12].

Core Insights - The article highlights the emerging potential of Vertex's stem cell therapy Zimislecel for treating Type 1 Diabetes (T1D), which could revolutionize the treatment landscape by enabling patients to achieve insulin independence [1][5][7] - The current treatment options for T1D, primarily insulin therapy, have significant limitations, leading to severe complications and a pressing need for innovative solutions [2][3] Group 1: Patient Challenges and Market Overview - Approximately 9.15 million people globally suffer from T1D, with nearly 20% being under 20 years old, and the treatment landscape remains largely focused on Type 2 Diabetes [2][3] - T1D patients rely on external insulin from diagnosis, facing risks of severe hypoglycemia and long-term complications such as retinopathy and kidney failure [2][3] - The annual treatment cost for T1D is around $40,000, with the U.S. market alone exceeding $8 billion, indicating a substantial market opportunity despite the niche perception of T1D [3] Group 2: Zimislecel's Mechanism and Clinical Data - Zimislecel utilizes induced pluripotent stem cells (iPSCs) to create functional pancreatic beta cells, addressing the donor shortage issue inherent in traditional therapies [5][6] - In Phase 1/2 clinical trials, 83% of patients (10 out of 12) achieved insulin independence after one year, with a 92% reduction in daily insulin dosage and no severe hypoglycemic events reported post-treatment [5][6] Group 3: Safety and Future Prospects - The most common serious adverse event associated with Zimislecel is neutropenia, with two reported deaths, although Vertex claims these were not drug-related [6][7] - Vertex aims to submit for global approval in 2026, with an estimated 60,000 severe T1D patients in the U.S. and Europe potentially eligible for treatment [6][7] - The therapy's reliance on long-term immunosuppression poses significant safety concerns, which Vertex is actively working to address through various strategies [7][8] Group 4: Competitive Landscape and Innovations - Other companies are also exploring innovative treatments for T1D, such as CRISPR Therapeutics and Otsuka, which are developing gene-edited and xenotransplantation approaches, respectively [8][9] - Domestic efforts in China are advancing, with clinical trials for alternative therapies underway, indicating a growing interest in addressing T1D through diverse methodologies [9]

Core Viewpoint - The article presents a list of 12 stocks that are recommended for investment during the countdown to the new year, highlighting their long-term growth potential and current market conditions. Group 1: Recommended Stocks - **Apple**: Expected to achieve an 11% gain for the year, with a strong brand and growing AI integration across products, which may drive future revenue growth [5][6]. - **Costco**: Trading at 43x forward earnings estimates, down from over 58x, with a strong business model and high membership renewal rates above 90% in the U.S. and Canada [7][9]. - **Carnival**: The world's largest cruise operator has returned to profitability and is paying down debt, trading at only 11x forward earnings estimates [11][12]. - **Intuitive Surgical**: A leader in robotic surgery with a strong moat due to high costs of its systems and recurrent revenue from instruments and accessories [13][15]. - **Vertex Pharmaceuticals**: Leading in cystic fibrosis treatment with strong revenue and growth potential in new treatment areas [16][18]. - **Coca-Cola**: Strong brand and distribution network with a history of dividend increases for over 50 consecutive years, making it a solid choice for passive income [19][20]. - **Pool Corp.**: The largest supplier of pool equipment, trading at 22x forward earnings estimates, with consistent demand for maintenance services [21][22]. - **Amazon**: A leader in e-commerce and cloud computing, benefiting from AI growth, with AWS reporting a $132 billion annual revenue run rate [24][25]. - **Target**: Facing challenges but may recover in 2026, trading at 13x forward earnings estimates, presenting a potential buying opportunity [27][28]. - **CRISPR Therapeutics**: Recently approved a blood disorder treatment, with expected significant growth in the coming year [29][30]. - **Broadcom**: A networking giant emerging as a potential AI chip winner, with high demand for custom chips [31][32]. - **Taiwan Semiconductor Manufacturing**: A key player in chip production for AI, benefiting from multiple clients and significant investments in U.S. manufacturing [33][34].

Core Viewpoint - Healthcare stocks have underperformed compared to broader equities this year, but there are still attractive investment opportunities in the sector for long-term investors [1] Group 1: CRISPR Therapeutics - CRISPR Therapeutics is a gene-editing company with potential catalysts for stock price growth, particularly with its therapy Casgevy for sickle cell disease and beta-thalassemia [4] - The company has been enhancing third-party coverage and establishing treatment centers for Casgevy, which is expected to see significant growth next year [5] - CRISPR is also developing SRSD107, a potential anticoagulant with promising phase 1 results, and CTX112, which targets various cancers and autoimmune disorders, both of which could contribute to stock price increases [6][8] Group 2: Vertex Pharmaceuticals - Vertex Pharmaceuticals has faced challenges this year, primarily due to its reliance on its cystic fibrosis (CF) treatments, but these continue to generate steady revenue [10] - In Q3, Vertex reported an 11% year-over-year revenue increase to $3.08 billion and a 4.7% increase in net earnings per share to $4.20, indicating strong performance in its core area [11] - The company is advancing new therapies, including zimislecel for Type 1 diabetes and candidates targeting kidney diseases, with regulatory submissions planned for next year [13][14]

分组1 - Colette Kress, CFO of Nvidia, indicated that geopolitical issues and competition in China are impacting the company's data center revenue outlook, with no revenue from China assumed in Q4 [1][6] - Nvidia's inventory increased by 32% and supply commitments rose by 63% sequentially, positioning for demand outside of China [1] - The U.S. government will receive a 25% revenue cut from Nvidia's H200 AI chip sales to approved customers in China, as announced by President Trump [5] 分组2 - Michelle Chang of Zoom emphasized a shift towards an AI-first strategy, focusing on enhancing workplace collaboration and developing new AI products [2] - Zoom's free cash flow margin reached 50%, aided by one-time improvements, but sustained progress is uncertain [3] - Enterprise net dollar expansion remains at 98%, with a goal to exceed 100% in the future [3] 分组3 - Virgin Galactic reported only $400,000 in revenue but is transitioning to a scalable operating model, with operating expenses down to $67 million [7][8] - The company aims for approximately $450 million in annual revenue and $100 million in adjusted EBITDA from two ships flying 125 missions a year [8] - Engineering milestones, such as a new oxidizer tank, are expected to enhance operational efficiency and reduce downtime [8] 分组4 - Bark's CFO highlighted a shift towards higher-value customers and improved retention, with marketing costs decreasing due to lower acquisition costs [9][10] - The company plans to increase margins through sourcing changes and a price increase in 2026 [10] 分组5 - Warner Bros. Discovery's CFO noted a strategic shift away from costly NBA rights to a standalone sports streaming app, expecting significant financial benefits [11][12] - HBO Max is projected to generate over $1.3 billion in EBITDA this year, with a target of 150 million streaming subscribers by 2026 [12] 分组6 - Texas Roadhouse is preparing for approximately 7% commodity inflation in 2026, with labor inflation expected to be around 3% to 4% [13][14] - The company plans to invest approximately $400 million in capital expenditures in 2026, focusing on new units and franchise acquisitions [14][15] 分组7 - DoorDash's CFO indicated that 2026 will be a year of heavy reinvestment while still achieving modest margin expansion [16][17] - The acquisition of Deliveroo is performing well, contributing approximately $200 million to EBITDA, with growth exceeding expectations [18] 分组8 - Vertex Pharmaceuticals is prioritizing capital investment in innovation and expansion, particularly in its kidney portfolio [19][20] - The company is focused on building a durable pain franchise while managing operating expenses and external uncertainties [20]

Core Viewpoint - The Zacks Style Scores provide a comprehensive framework for investors to evaluate stocks based on value, growth, and momentum, enhancing the effectiveness of the Zacks Rank in identifying high-potential investment opportunities [2][7]. Summary by Category Zacks Style Scores Overview - The Zacks Style Scores rate stocks using an alphabetic system from A to F, where A indicates the highest potential for outperforming the market [3]. - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6]. Value Score - The Value Score targets investors seeking undervalued stocks, utilizing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to identify attractive investment opportunities [3]. Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4]. Momentum Score - The Momentum Score assists investors in capitalizing on price trends, using metrics like one-week price changes and monthly earnings estimate changes to identify favorable buying opportunities [5]. VGM Score - The VGM Score combines all three Style Scores, providing a holistic view of a stock's value, growth potential, and momentum, making it a robust indicator alongside the Zacks Rank [6]. Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7]. - There are over 800 stocks rated 1 or 2, and the Style Scores help investors narrow down their choices [8]. Stock Example: Vertex Pharmaceuticals - Vertex Pharmaceuticals, focused on developing drugs for serious diseases like cystic fibrosis, holds a 3 (Hold) rating with a VGM Score of B and a Momentum Style Score of B, having seen an 11.2% increase in share price over the past four weeks [11]. - The company's earnings estimate for fiscal 2025 has been revised upwards by nine analysts, increasing the Zacks Consensus Estimate by $0.44 to $18.30 per share, with an average earnings surprise of +2% [12].

Core Viewpoint - Vertex Pharmaceuticals has established itself as a leader in the treatment of cystic fibrosis (CF), generating significant revenue and profit, and is now exploring growth in other therapeutic areas [1][2][5]. Group 1: Financial Performance - Vertex's revenue increased by 11% to over $3 billion in the latest quarter, with a net income of $1.1 billion on a GAAP basis, and the company anticipates up to $12 billion in revenue for the full year [6]. - The stock has appreciated more than 40% over the past three years, although it has recently declined by 10% from its peak in April [2][3]. Group 2: Product Portfolio and Growth Drivers - The CF business is the primary growth driver for Vertex, with CFTR modulators developed to treat nearly 95% of CF patients [5][6]. - Vertex has received regulatory approval for a gene editing therapy for blood disorders and a non-opioid pain management drug, Journavx, which has seen over 300,000 prescriptions filled since its launch [2][9]. - The company projects that Casgevy, the blood disorders treatment, will generate over $100 million in revenue by 2025, with significant growth expected next year [8]. Group 3: Research and Development - Vertex is conducting clinical trials for a candidate that may address the remaining 5% of CF patients who are not currently treatable with existing therapies, and is also developing a next-generation CFTR corrector, VX-828 [10]. - The company has strong intellectual property protections for its innovations, which will last into the late part of the next decade [10][11]. Group 4: Market Position and Strategy - Vertex's manufacturing is primarily based in the U.S., reducing vulnerability to potential import tariffs [11]. - The company is viewed as a strong investment opportunity due to its dominance in the CF market and growth potential in other therapeutic areas, trading at 24 times forward earnings estimates [13].