Core Insights - The Vanguard Small-Cap ETF (VB) and the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) are both low-cost options for investors interested in U.S. small-cap stocks, but they differ in portfolio composition and performance nuances [1] Cost & Size - Both VB and SPSM have an expense ratio of 0.03% [2][3] - As of February 12, 2026, VB has a 1-year return of 10.65% compared to SPSM's 10.28% [2] - SPSM offers a higher dividend yield of 1.53% versus VB's 1.27% [2] - VB has significantly larger assets under management (AUM) at $169 billion compared to SPSM's $14 billion [2] Performance & Risk Comparison - Over the past five years, VB experienced a maximum drawdown of -28.16%, while SPSM had a slightly lower drawdown of -27.95% [4] - An investment of $1,000 in VB would have grown to $1,260 over five years, while the same investment in SPSM would have grown to $1,216 [4] Portfolio Composition - SPSM tracks the S&P SmallCap 600 Index and includes 607 stocks, with top sectors being financial services (17%), industrials (16%), and consumer cyclical (15%) [5] - VB holds a broader portfolio of 1,324 stocks, with a focus on industrials (19%), technology (17%), and financial services (13%) [6] Investment Implications - VB's greater diversification, with more than twice the number of stocks as SPSM, may help limit risk associated with small-cap stocks [7] - VB's heavier allocation to technology (17% vs. 13% for SPSM) may lead to higher volatility but also greater long-term returns [8] - Both funds have shown similar total returns over 12 months and five years, but VB has slightly outperformed SPSM in both periods [9]

Group 1 - Qnity Electronics stock's Relative Strength Rating increased from 70 to 79, indicating improved price performance over the past 52 weeks [1] - IBD's rating system scores stocks on a scale from 1 (worst) to 99 (best), reflecting their share price movement [1] Group 2 - Semiconductor equipment vendor Nova exceeded fourth-quarter estimates and provided an optimistic guidance for the current period [1] - Other companies such as Wabtec and Vertiv reached record highs, contributing to a list of nine new stocks to watch [1] - Axcelis Technologies received a boost in its Relative Strength Rating, indicating positive market sentiment [1]

Core Insights - The State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) and the iShares Morningstar Small-Cap Growth ETF (ISCG) differ in cost, portfolio breadth, and historical performance, with ISCG having lower fees and broader industrial exposure but higher volatility over time [2][3] Cost and Size Comparison - SLYG has an expense ratio of 0.15% and AUM of $3.6 billion, while ISCG has a lower expense ratio of 0.06% and AUM of $807.86 million [4] - The one-year return for SLYG is 8.96%, compared to ISCG's 18.02%, while SLYG offers a slightly higher dividend yield of 0.86% versus ISCG's 0.61% [4][5] Performance and Risk Analysis - Over five years, SLYG experienced a maximum drawdown of -29.17%, while ISCG faced a deeper drawdown of -41.49% [6] - The growth of $1,000 over five years is $1,210 for SLYG and $1,095 for ISCG, indicating SLYG's better performance in this period [6] Portfolio Composition - ISCG tracks 971 U.S. small-cap growth stocks, with sector weights led by industrials (26%), technology (18%), and healthcare (17%), and its largest holdings are under 1% of the fund [7] - SLYG holds 334 stocks with a sector tilt towards industrials (20.5%), technology (19%), and healthcare (16%), focusing on firms with strong sales growth and earnings momentum [8] Investment Implications - Investing in small-cap ETFs like SLYG and ISCG provides exposure to a broad range of small-cap stocks, which are generally more volatile but offer greater upside potential [10]

Core Insights - The article compares two small-cap ETFs: iShares Morningstar Small-Cap ETF (ISCB) and State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM), highlighting their differences in portfolio breadth, costs, and performance [4]. Group 1: ETF Overview - ISCB tracks 1,578 small-cap U.S. stocks, with sector weights in industrials (19%), financial services (17%), and healthcare (13.9%) [2]. - SPSM holds 607 U.S. small-cap stocks, with a sector tilt towards financial services (18%), industrials (16%), and technology (15%) [1]. Group 2: Performance and Cost - ISCB has performed slightly better over the last five years, showing more growth and a smaller maximum drawdown compared to SPSM [7]. - SPSM offers a lower expense ratio and a higher dividend yield, making it attractive for cost-conscious investors [3][7]. Group 3: Sector Exposure - ISCB's inclusion of healthcare among its top sectors may appeal to investors looking for defensive opportunities, while SPSM's higher concentration in technology may attract those wanting to capitalize on tech sector trends [8].

Group 1 - NICE, Digital Turbine, and Kimball Electronics are currently rated as Zacks Rank 1 (Strong Buy) [1] - Long-term earnings growth rates for Advanced Energy Industries, Digital Turbine, and Kimball Electronics are projected at 33.4%, 42.4%, and 20% respectively [2] - Over the past year, shares of Advanced Energy Industries, Digital Turbine, and Kimball Electronics have appreciated by 90.4%, 181.3%, and 52.5% respectively [2] Group 2 - NICE shares have decreased by 37.2% over the past year, underperforming sector peers due to macro challenges and competition [3] - AI-driven cloud revenue for NICE increased by 13% to $563 million, with CXone and Cognigy contributing to strong bookings and ARR growth [3] - NICE projects cloud revenue growth of 12-13% for 2025 and expects EPS to be between $12.18 and $12.32, reflecting a 10% year-over-year increase [3]

Core Insights - Hewlett Packard Enterprise (HPE) stock fell over 8% in pre-market trading despite reporting better-than-expected results for Q4 fiscal 2025, with non-GAAP earnings of 62 cents per share, surpassing the Zacks Consensus Estimate by 5.1% and increasing 6.3% year over year [1] - HPE's revenues grew 14.4% year over year to $9.68 billion but missed the Zacks Consensus Estimate by 2.63%, driven primarily by the networking business [1] Segment Performance - The Server segment generated $4.5 billion in revenues, down 5% year over year due to delays in AI server shipments and reduced U.S. federal spending, with an operating profit margin of 9.8%, down 180 basis points from the previous year [3] - Networking revenues reached $2.8 billion, up 150% year over year, largely due to the addition of Juniper Networks, although the operating profit margin decreased to 23%, down 140 basis points [4] - The Hybrid Cloud division reported $1.4 billion in revenues, down 12% year over year, as HPE focused on higher-margin solutions, resulting in an operating profit margin of 5%, down from 7.8% [5] - The Financial Services segment recorded $889 million in revenues, flat year over year, with an operating margin of 11.5%, up 230 basis points [6] Operating Results - HPE's non-GAAP gross profit for Q4 fiscal 2025 was $3.52 billion, with a non-GAAP gross margin of 36.4%, up 550 basis points year over year [7] - The non-GAAP operating profit was $1.18 billion, with an operating margin of 12.2%, up 110 basis points from the previous year [7] Balance Sheet and Cash Flow - HPE ended Q4 with $5.77 billion in cash and cash equivalents, up from $4.57 billion in the previous quarter [8] - The company generated $2.5 billion in cash from operating activities and produced $1.9 billion in free cash flow, both significantly higher than the prior year [8] Shareholder Returns - HPE returned $271 million to shareholders in Q4 through dividends and share repurchases, totaling $886 million for the full fiscal 2025 [9] Guidance for FY26 and Q1 - For Q1 fiscal 2026, HPE expects revenues between $9 billion and $9.4 billion, with a Zacks Consensus Estimate of 54 cents per share, indicating 10.2% year-over-year growth [12] - For full-year fiscal 2026, HPE forecasts revenue growth of 17-22% and projects non-GAAP diluted EPS of $2.25-$2.45, with a Zacks Consensus Estimate of $2.31 per share, indicating 21.5% year-over-year growth [14]

Investment Rating - The report indicates a scarcity of stocks with improving Return on Equity (ROE), leading to a cautious investment outlook for the S&P 500, particularly in the context of macroeconomic concerns and trade issues [1][10]. Core Insights - The number of stocks classified under the "Good ROE" category has decreased significantly, with fewer than 90 stocks meeting the criteria in the latest rebalance, compared to over 100 in previous quarters [2][9]. - The Positive ROE Trend baskets have shown consistent outperformance against Negative ROE Trend baskets, even during market downturns, reinforcing the notion that growth stocks are becoming a defensive investment strategy [3][14]. - Despite the widening performance spreads, the Positive ROE Trend baskets maintain justifiable valuations, with attractive PEG ratios compared to indices [4][20]. Summary by Sections ROE Trends - The report highlights a decline in the number of stocks with expected ROE gains, with fewer than 90 stocks in the Large Cap basket, down from over 100 in prior assessments [2][10]. - In Small/Mid Cap, a 100-stock basket is still achievable, but fewer stocks exhibit "Good ROE" trends [9][12]. Performance Analysis - The Positive ROE Trend baskets have consistently outperformed Negative ROE Trend baskets, indicating a robust investment strategy amidst broader market fluctuations [3][11]. - The performance spread between Good and Bad ROE stocks has remained persistent, suggesting opportunities for both long-only and pair trading strategies [11][12]. Valuation Metrics - The Positive ROE Trend basket is characterized by higher P/E ratios but is supported by stronger EPS growth expectations, making it a reasonable investment despite higher valuations [4][20]. - The PEG ratios for the Positive ROE Trend basket are more attractive than those of comparable indices, indicating potential for growth [20][21]. Sector Exposure - The Positive ROE Trend basket is heavily weighted towards Industrials and Materials, while the Negative ROE Trend basket has more exposure to Consumer Discretionary and Health Care sectors [17][18]. - In the Small/Mid Cap category, the Positive ROE Trend basket shows a significant tilt towards Financials, Tech, and Industrials, with a notable growth style exposure [22][23]. Factor Correlations - The Positive versus Negative ROE Trend spread has shown mild positive correlations with various long/short factors, aligning closely with Growth and Size factors in the near term [5][26]. - The report emphasizes a unique approach to screening for improving quality metrics, differentiating it from traditional quality or growth frameworks [30][32].

Group 1 - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] - It highlights the dual approach of analyzing financial data while narrating the stories and strategies of businesses to provide insights into market performance [1] - The focus on both quantitative analysis and qualitative storytelling reflects a commitment to understanding and explaining the financial landscape [1]