Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midc ...

Core Insights - Woodward, Inc. (NASDAQ: WWD) has garnered significant hedge fund interest and is trending on Reddit, earning a place among the 10 Best Non-Tech Stocks to Buy According to Reddit [1] Group 1: Financial Outlook - UBS analyst Gavin Parsons maintained a Buy rating on Woodward, Inc. with a price target of $299, highlighting the company's positive outlook driven by the growth of the China LNG heavy-duty truck market [2] - The revenue projection for Woodward, Inc. appears well-positioned, with increased demand attributed to LNG's cost advantages over diesel [2] Group 2: Operational Developments - Woodward, Inc. announced plans to invest approximately $200 million to build a 300,000-square-foot factory for aviation parts in Greer, South Carolina, expected to commence operations in 2027 and create around 275 jobs [3] - The fourth quarter is typically the peak season for LNG and electric truck sales, which supports the company's ability to meet or exceed revenue and EBIT expectations in the short term [3] Group 3: Company Overview - Woodward, Inc. is a global manufacturer of control system components serving the commercial and energy sectors, as well as the aerospace and industrial markets [4]

Core Viewpoint - The article discusses the shift in investment focus towards non-tech stocks, particularly those favored by Reddit investors, as a response to changing market conditions and interest rate forecasts [1][2][3]. Group 1: Market Trends - The top-performing sectors of the S&P 500 in 2025 include utilities, financials, and industrials, indicating a broader market leadership beyond technology [1]. - Recent months have seen non-tech sectors achieving new all-time highs, contrasting with 2023-2024 when growth was primarily driven by IT and communication services [2]. - The market's response to U.S. Federal Reserve signals has led to a rotation away from tech stocks, with concerns about overvaluation amid high interest rate forecasts [2]. Group 2: Investment Strategy - Reddit investors are increasingly selecting non-tech companies for stability and long-term growth, highlighting better fundamentals and reduced exposure to Fed policy risks [3]. - The article presents a list of the top ten non-tech stocks to buy, based on trending discussions on Reddit and hedge fund interest as of Q2 2025 [6]. Group 3: Company Highlights - **Comfort Systems USA, Inc. (NYSE:FIX)**: - Supported by hedge fund interest, the stock has seen a 67% year-to-date increase, reaching a record high of $825.78 [10]. - UBS maintains a Buy rating with a price target of $875.00, citing strong fundamentals and a capital-light business model [10][11]. - The company provides mechanical, electrical, and plumbing services across the U.S. [12]. - **Woodward, Inc. (NASDAQ:WWD)**: - Also trending on Reddit with significant hedge fund interest, the company is well-positioned due to growth in the China LNG heavy-duty truck market [14]. - UBS has a Buy rating with a price target of $299, emphasizing the company's revenue projections and demand for LNG [14][15]. - Woodward manufactures control system components for various sectors, including aerospace and energy [16].

Core Viewpoint - Woodward (WWD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Woodward's earnings estimate for the fiscal year ending September 2025 is projected at $6.63 per share, remaining unchanged from the previous year, while the Zacks Consensus Estimate has increased by 6.3% over the past three months [8]. Investment Implications - The upgrade to Zacks Rank 2 places Woodward in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. - Rising earnings estimates and the corresponding rating upgrade reflect an improvement in Woodward's underlying business, which could lead to increased stock prices as investors respond positively [5][10].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest in AI technologies now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy sector, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is described as a "toll booth" operator in the AI energy boom, profiting from the surge in electricity demand [4][5] Market Position - The company is noted for its debt-free status and significant cash reserves, equating to nearly one-third of its market capitalization, which positions it favorably compared to heavily indebted competitors [8][10] - It holds a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth engines in the AI sector [9][10] Strategic Advantages - The company is involved in large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy, which is crucial for America's future power strategy [7][8] - The current political climate, particularly Trump's tariffs, is expected to drive onshoring and increase demand for U.S. LNG exports, further benefiting the company's operations [5][14] Future Outlook - The influx of talent into the AI sector is expected to lead to rapid advancements and innovative ideas, reinforcing the notion that investing in AI is backing the future [12] - The potential for significant returns is emphasized, with projections suggesting a possible 100% return within 12 to 24 months for investors who act now [15]

Core Viewpoint - An overlooked part of the market, specifically industrial stocks, is performing exceptionally well in 2025, with UBS identifying 11 compelling buy-rated investment ideas in this sector [2][4]. Group 1: Market Performance - Industrial stocks in the S&P 500 have increased by 15.2% year-to-date, surpassing the benchmark index's rise of 12% [3]. Group 2: Recommended Stocks - UBS highlighted the following companies as strong investment opportunities: - **Woodward (WWD)**: Year-to-date performance of +42%, with expectations of expanding margins and doubling free cash flow (FCF) in the coming years, leading to revenue, EBITDA, and FCF estimates 3%, 6%, and 11% above consensus for FY26 [5]. - **Alaska Air Group (ALK)**: Year-to-date performance of -9%, with confidence in long-term earnings power due to premium seat expansion and easing competitive pressures [6]. - **CSX Corporation (CSX)**: Year-to-date performance of +1.5%, with multiple drivers of EPS growth anticipated and a reduction in operating costs by approximately $100 million in 2026 [7]. - **TE Connectivity PLC (TEL)**: Year-to-date performance of +49%, with strong exposure to AI growth and signs of recovery in other lagging end-markets [8].

Core Viewpoint - The partnership between Women's Wear Daily (WWD) and OUTFRONT Media aims to celebrate National Hispanic Heritage Month 2025 through a nationwide billboard campaign highlighting legendary Hispanic fashion designers, emphasizing inclusion and creativity in the fashion industry [1][2][3]. Group 1: Campaign Overview - The campaign launched in Times Square and runs nationwide from September 15 to October 15, 2025, showcasing designers recognized in WWD's 115th Anniversary Issue [2]. - The campaign aligns with the 2025 National Hispanic Heritage Month theme, "Collective Heritage: Honoring the Past, Inspiring the Future," focusing on the achievements of legendary designers [5]. Group 2: Organizational Commitment - WWD's CEO Amanda Smith stated that the campaign honors the legacy of Hispanic designers whose artistry has significantly influenced the fashion industry [3]. - OUTFRONT Media's Vice President of Marketing, Liz Rave, expressed pride in using OUTFRONT's platform to spotlight these designers, highlighting their talent and creativity [4]. Group 3: Cultural Impact - The collaboration between WWD and OUTFRONT Media represents an innovative approach to delivering culturally relevant content, reinforcing the importance of diverse narratives in public spaces [6]. - The campaign aims to inspire future generations of designers by showcasing the enduring contributions of Hispanic designers to global fashion [3][6].

Core Insights - Woodward, Inc. plans to build a 300,000-square-foot precision manufacturing facility in Greer, South Carolina, focusing on servo-hydraulic actuation systems for aerospace applications, particularly for the Airbus A350 [1][2] - The facility is expected to create approximately 275 high-quality jobs in manufacturing, engineering, and business operations, with potential for future workforce expansion [3][5] - The company will invest nearly $200 million in the development of the site, supported by incentives from the State of South Carolina and local economic development organizations [5][6] Company Strategy - The new facility represents a strategic investment for Woodward, enhancing its capabilities in producing critical flight control systems that improve aircraft performance and safety [2][4] - The site will serve as a showcase for advanced manufacturing techniques, emphasizing operational excellence developed through previous aircraft engine programs [4][5] - The investment aims to solidify Woodward's position in the aerospace market and expand its customer base beyond Airbus [5] Economic Impact - The establishment of the facility is expected to have a significant positive impact on the local economy in Spartanburg County, creating new job opportunities and fostering economic growth [6] - The decision to locate in South Carolina highlights the state's strong manufacturing infrastructure and access to skilled aerospace talent [5][6]

Core Insights - The Aerospace Forum aims to identify investment opportunities within the aerospace, defense, and airline sectors, leveraging data analytics for informed decision-making [2]. Group 1 - The Aerospace Forum is recognized as a leading investment research service focused on the aerospace, defense, and airline industries [1]. - The group is led by an analyst with a background in aerospace engineering, providing context and analysis on industry developments and their potential impact on investment strategies [2]. - The service includes access to proprietary data analytics tools, enhancing the ability to monitor and analyze market trends [2].

Group 1 - GE Aerospace is one of 58 companies in the Aerospace group, which is currently ranked 8 within the Zacks Sector Rank [2] - GE Aerospace has a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and an improving earnings outlook, with a 6.6% increase in the consensus estimate for full-year earnings over the past three months [3] - Year-to-date, GE Aerospace has returned 59.4%, significantly outperforming the average gain of 24.6% for Aerospace stocks [4] Group 2 - GE Aerospace is part of the Aerospace - Defense industry, which consists of 24 companies and is currently ranked 95 in the Zacks Industry Rank, with an average gain of 25.7% this year [5] - Woodward, another outperforming stock in the Aerospace sector, has increased by 47.2% year-to-date and also holds a Zacks Rank of 1 (Strong Buy) [4] - The Aerospace - Defense Equipment industry, which includes Woodward, has 33 stocks and is ranked 161, with a year-to-date increase of 22% [6]