director of U.S. Equity strategy at Citigroup. Drew, thank you very much for being here right now. What do you make of the market action so far today.I mean, it's not going to get close to getting back what we lost on Friday, but it seems interesting that we do have a bid given escalations in the Middle East. >> Yeah. Look, sometimes markets feel a little bit inhuman at these points, right.Like conflict really isn't good. We all would like to see, you know, relatively peaceful resolutions here. But you know ...

Core Insights - Renée James has been appointed to the board of directors of Portland General Electric (PGE), effective June 11, 2025, bringing valuable experience from the technology sector, particularly in high-tech and semiconductor manufacturing [1][2] - James is the founder, Chair, and CEO of Ampere Computing and has held various leadership roles at Intel Corporation, including President and Executive Vice President [1][2] - PGE is committed to reducing emissions from its retail power supply by 80% by 2030 and 100% by 2040, and it has the No. 1 voluntary renewable energy program in the U.S. [3][4] Company Overview - Portland General Electric (NYSE: POR) serves nearly 950,000 customers in an area of 1.9 million Oregonians, providing safe, affordable, reliable, and increasingly clean electricity since 1889 [3][4] - PGE was ranked the No. 1 utility in the 2024 Forrester U.S. Customer Experience Index, highlighting its commitment to customer satisfaction [3][4] - In 2024, PGE employees, retirees, and the PGE Foundation donated $5.5 million and volunteered nearly 23,000 hours to over 480 nonprofit organizations [3][4]

Core Viewpoint - Krispy Kreme, Inc. is under investigation for potential securities fraud and unlawful business practices following a significant drop in revenue and the suspension of its full-year guidance and dividend payments [1][3]. Financial Performance - On May 8, 2025, Krispy Kreme reported a notable decline in revenue attributed to "consumer softness leading to a decline in doughnut shop transaction volume" [3]. - The company pulled its full-year guidance and suspended future dividend payments due to a challenging environment and efforts to preserve cash [3]. Stock Market Reaction - Following the financial results announcement on May 8, 2025, Krispy Kreme's stock price fell by $1.07 per share, or 24.71%, closing at $3.26 per share [4]. - On May 9, 2025, after analysts from Evercore ISI and Citigroup reduced their price targets for Krispy Kreme, the stock price further declined by $0.53 per share, or 16.26%, closing at $2.73 per share [4].

Core Viewpoint - LPL Financial Holdings Inc. has announced a public offering of 4,687,500 shares of its common stock at a price of $320.00 per share, with an additional option for underwriters to purchase up to 703,125 shares [1][3]. Group 1: Offering Details - The offering is expected to close on April 2, 2025, pending customary closing conditions [1]. - Morgan Stanley & Co. LLC is the sole active book-running manager, with several firms acting as joint book-running managers and co-managers for the offering [2]. Group 2: Use of Proceeds - LPL intends to use the net proceeds from the offering to fund part of the cash consideration for its proposed acquisition of Commonwealth Financial Network, and any remaining proceeds will be used for general corporate purposes if the transaction is not completed [3]. Group 3: Company Overview - LPL Financial is one of the fastest-growing wealth management firms in the U.S., supporting nearly 29,000 financial advisors and servicing approximately $1.7 trillion in brokerage and advisory assets for around 6 million Americans [7].

Core Viewpoint - Amazon.com Inc. is experiencing a resurgence in focus and stock performance after a significant drop, with analysts increasingly bullish on its recovery potential [1][2][5]. Group 1: Financial Performance - Amazon has consistently outperformed earnings expectations throughout 2023, achieving its most profitable quarter on record in February, with revenue and operating income exceeding forecasts [3][4]. - The company has improved its margins by extracting more value from mature segments while investing in high-growth areas, contributing to its status as a reliable performer in the tech sector [4][11]. Group 2: Analyst Sentiment - Analysts maintain a positive outlook on Amazon, with a 12-month stock price forecast averaging $260.65, indicating a potential upside of 29.59% from the current price of $201.13 [5][6]. - Major firms have reiterated Buy ratings, with Loop Capital setting a price target of $285, suggesting a nearly 40% upside from recent closing prices [6][7]. Group 3: Technical Indicators - Technical indicators show a bullish trend for Amazon, with the stock's relative strength index (RSI) recovering from oversold levels, indicating renewed buying interest [8][9]. - The recent bullish crossover in the MACD signal suggests potential further upside, supported by strong closing prices in recent sessions [9]. Group 4: Valuation and Future Growth - Amazon's current valuation appears attractive, with a price-to-earnings ratio at its lowest in years, reflecting a disconnect from its strong earnings and operational discipline [10][11]. - The company's investments in AI, robotics, and logistics are expected to drive future growth, positioning it favorably compared to other mega-cap tech stocks [12].

Core Insights - Former Citigroup CEO Sandy Weill announced a $50 million donation to establish the Weill Cancer Hub East, focusing on cancer treatment through research on nutrition and metabolism [1][2] - The partnership includes four leading research institutions: Princeton University, The Rockefeller University, Weill Cornell Medicine, and the Ludwig Institute for Cancer Research, aiming to enhance immunotherapy strategies [1][2] - The hub will investigate the influence of nutrition and gut microbes on immunotherapy and other cancer treatments, including the effects of GLP-1 agonists [3] Research Focus - The Weill Cancer Hub East will explore how to increase the effectiveness of immunotherapy across various cancer types and patients, addressing a critical scientific question [5] - The hub's projects will involve "reprogramming" the tumor microenvironment and will include clinical trials to test new approaches [4] Previous Initiatives - The Weill Family Foundation previously established the Weill Neurohub in 2019, which focused on developing treatments for neurological and psychiatric diseases by collaborating with researchers from multiple prestigious institutions [6]

Company Overview - Citigroup is based in New York and operates in the Finance sector, with a year-to-date share price change of 5.8% [3] - The company currently pays a dividend of $0.56 per share, resulting in a dividend yield of 3.01%, which is significantly higher than the Financial - Investment Bank industry's yield of 1% and the S&P 500's yield of 1.57% [3] Dividend Analysis - Citigroup's annualized dividend of $2.24 has increased by 2.8% from the previous year, with an average annual increase of 1.58% over the past five years [4] - The company's current payout ratio is 38%, indicating that it pays out 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Citigroup anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $7.47 per share, reflecting a year-over-year earnings growth rate of 25.55% [5] Investment Considerations - Citigroup is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Financial Data and Key Metrics Changes - The fourth quarter adjusted EPS from continuing operations was $2.11, reflecting a decrease from $2.29 in the previous year [41][43] - Adjusted operating income decreased by 15% to $628 million, with an adjusted operating margin decline of 230 basis points [42][43] - Net sales from continuing operations increased by 0.7% to $5 billion, while consolidated net sales were $8.3 billion, at the high end of the outlook range [25][26] Business Line Data and Key Metrics Changes - Dollar Tree's Q4 comparable store sales (comp) growth was 2%, with traffic up 0.7% and ticket up 1.3% [17][18] - Consumables mix increased by 60 basis points to 45.2%, with consumables comp at 4.2% [19] - Adjusted operating income for the Dollar Tree segment declined by 12.1% to $768 million, with a 220 basis point decline in adjusted operating margin [44][45] Market Data and Key Metrics Changes - Middle-income shoppers, making up about half of the customer base, are increasingly focused on value, while higher-income customers are also turning to Dollar Tree for cost-effective products [16][107] - The company reported a balanced comp growth with a notable increase in discretionary comp, which was 0.4%, its first positive reading since Q4 of the previous year [19][102] Company Strategy and Development Direction - The company announced the sale of Family Dollar for over $1 billion, aiming to focus on Dollar Tree's long-term growth and profitability [8][10] - The strategy includes expanding the multi-price assortment and improving store standards to drive sales productivity and profitability [11][14] - The company plans to target approximately 5,200 3.0% format stores by the end of 2025, with a focus on optimizing performance and learning from past conversions [24][122] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the top line growth for 2025, expecting sales in the range of $18.5 billion to $19.1 billion, driven by multi-price expansion and new store growth [53][60] - The company is addressing cost pressures, particularly from tariffs, and is confident in its ability to mitigate these impacts [54][64] - Management emphasized the importance of returning to Dollar Tree's roots and unlocking the brand's full potential post-sale of Family Dollar [34][67] Other Important Information - The company generated $2.2 billion in cash from operating activities for the full year, with capital expenditures of $1.3 billion [47][48] - The company plans to repurchase shares in the near future, with approximately $952 million remaining under the existing share repurchase program [48][62] Q&A Session Summary Question: Can you discuss the tariff mitigation strategies? - Management highlighted that they have successfully mitigated 90% of the first round of tariffs and are actively working on strategies for the second round, emphasizing flexibility in sourcing and negotiations with suppliers [73][74][80] Question: What is the outlook for margins and investments? - Management indicated a strong long-term margin outlook, with ongoing investments in stores and distribution centers, while navigating the transitional year of 2025 [95][96] Question: What trends are observed among different income groups? - Management noted that all income cohorts, including higher-income shoppers, are increasingly finding value at Dollar Tree, contributing to growing ticket sizes and share [106][107] Question: What are the product priorities moving forward? - Management emphasized a balanced approach to discretionary and consumable products, with a strong focus on seasonal offerings to exceed customer expectations [112][114] Question: How is the performance of the 3.0% format stores? - Management reported that the 3.0% format stores continue to perform well, with ongoing learning and optimization efforts to enhance performance [118][122]

Core Viewpoint - The recent volatility in the market has highlighted Boeing Co. as a potential investment opportunity, with positive sentiment surrounding its stock performance amidst broader market uncertainty [1][2]. Company Analysis - Boeing's stock has shown a breakout since mid-March 2025, indicating strong performance compared to the S&P 500 [2]. - Analysts have set a 12-month price forecast for Boeing at $195.68, suggesting an 8.17% upside from the current price of $180.90, with a high forecast of $250.00 and a low of $113.00 [3]. - Citigroup analysts have reiterated their Buy ratings for Boeing, increasing the valuation to $210 per share from a previous $207 [3]. - The stock is currently trading at 90% of its 52-week high, indicating bullish price momentum and justifying the analysts' double-digit upside predictions [5]. Earnings Outlook - Wall Street analysts expect Boeing to report positive earnings per share (EPS) for 2025, a significant improvement from current net losses, which is a key driver for stock price action and valuations [6]. - The anticipated rise in demand for Boeing's products, particularly from recent orders from China, could further support these EPS forecasts [11]. Market Sentiment - Short interest in Boeing has decreased by 10.9% over the past month, indicating a shift in sentiment as short sellers reconsider their positions [7]. - Institutional capital has increasingly flowed into Boeing, with $8.8 billion invested over the past quarter, reflecting a broader market trend to hedge against S&P 500 volatility [13]. Sector Dynamics - The manufacturing sector, particularly industrial stocks, is gaining investor interest, which could indirectly benefit Boeing as it aligns with rising demand for basic materials [2][10]. - Institutional investments in the Materials Select Sector SPDR Fund have reached $955 million over the past quarter, suggesting a positive outlook for basic materials that could support Boeing's growth [12].

Core Viewpoint - The retail sector is experiencing significant growth, particularly in E-commerce, presenting investment opportunities in related areas such as online payment systems and logistics [1][2]. E-commerce Growth - E-commerce companies are expected to see a breakout in activity, which will positively impact online payment platforms and logistics stocks [2]. - PayPal Holdings Inc. is highlighted as a key player in the payment processing ecosystem, with institutional investors showing confidence by increasing their stakes [3][4]. PayPal Insights - PayPal's stock is forecasted to reach $90.03 within 12 months, indicating a potential upside of 28.27% from the current price of $70.19 [5]. - Institutional investments in PayPal have surged, with $5.5 billion entering the stock over the past quarter, reflecting strong confidence in its future performance [5][6]. - The earnings per share (EPS) forecast for PayPal suggests a growth rate of 9.2%, with an expected EPS of $1.30 in Q4 2025 [7]. United Parcel Service (UPS) Analysis - Analysts from Citigroup maintain a Buy rating for United Parcel Service, with a target price of $149, suggesting a potential increase of 26.4% from current levels [9]. - UPS's stock is forecasted to reach $138.09 in 12 months, representing a 19.81% upside [10]. - UPS offers a dividend of $6.56 per share, translating to an annualized yield of 5.6%, which is attractive in the current market [11]. FedEx Overview - FedEx stock is projected to reach $301.67 within 12 months, indicating a potential upside of 31.02% [13]. - The EPS forecast for FedEx suggests a significant increase of 37.5%, with an expected EPS of $5.57 in Q3 2025 [13][14]. - FedEx is also trading at a premium P/E ratio of 15.6x, reflecting market confidence in its growth potential linked to E-commerce trends [12].