Core Insights - Group 1 Automotive, Inc. (NYSE:GPI) is recognized as one of the best consumer cyclical stocks, operating 259 dealerships in the US and UK, with 146 located in the US [1] Analyst Recommendations - As of November 28th, there are 10 analyst recommendations for Group 1 Automotive, with 2 Strong Buy, 4 Buy, and 4 Hold ratings, and an average share price target of $469.11 [2] - Barclays set an Overweight rating on GPI with a price target of $510, highlighting that GPI is trading at a P/E ratio below its historical average and that of its peers [3] Financial Performance - In the fiscal third quarter, Group 1 Automotive reported an EPS of $10.45, which was below analyst estimates of $10.81 [4] - Analysts raised concerns regarding the decline in US luxury car sales, the exit from UK Jaguar Land Rover dealerships, and potential partnerships with Chinese brands [4] Management Response - Management acknowledged an inventory buildup for luxury US cars in Q3 but expects clarity in Q4 [5] - Discussions are ongoing regarding partnerships with Chinese brands, with decisions to be made based on shareholder interests [5]

Group 1 - Group 1 operates extensively across the U.S., with a strong presence in the Northeast, Southeast, Texas, and California, and is the 1 auto retailer in Texas [1] - The company has 324 new vehicle franchises and 259 franchised new vehicle dealerships, generating $19.9 billion in revenue last year [3] - Group 1 is a leader in the aftermarket sales segment, successfully adapting to the complexities of modern vehicles, including electric vehicles [2] Group 2 - The U.S. auto dealer market is valued at approximately $2.95 trillion and is projected to reach $3.68 trillion by 2030, reflecting a CAGR of about 4.5% [6] - The demand for personal vehicles remains strong, supporting a steadily expanding automotive dealership industry [7] Group 3 - In Q3 2025, Group 1 reported record revenues of $5.8 billion, a 10% year-over-year increase, and a non-GAAP EPS of $10.45, up 5.6% year-over-year [9] - Analyst Babcock sees Group 1 as having significant growth potential, trading at 8.8x forward P/E, below the dealer average, with a price target of $510, suggesting a 30% gain [10] Group 4 - Lithia Motors, another major player, has 450 dealer locations and reported Q3 revenue of $9.7 billion, up 5% year-over-year [14] - Lithia's strategic goal includes expanding luxury car services, recently acquiring two luxury dealerships generating $450 million in annual revenue [13] Group 5 - AutoNation operates 323 dealer locations and reported Q3 revenue of $7.01 billion, a 7% year-over-year increase [19] - Analyst Babcock highlights AutoNation's consistent operating performance and favorable valuation, setting a price target of $250, indicating a 27% potential gain [20]

Group 1: ADP - The board of directors of ADP approved a $0.16 increase in the quarterly cash dividend to an annual rate of $6.80 per share, marking the 51st consecutive year of dividend increases [1] - The 10% increase in the dividend reflects the Board's confidence in ADP's financial strength [1] - The new quarterly dividend rate of $1.70 per share will be distributed on January 1, 2026, to shareholders of record on December 12, 2025 [1] Group 2: Agree Realty - Agree Realty announced a monthly cash dividend of $0.262 per common share, reflecting an annualized dividend amount of $3.144 per common share [2] - This represents a 3.6% increase over the annualized dividend amount of $3.036 per common share from the fourth quarter of 2024 [2] - The dividend is payable on December 12, 2025, to stockholders of record at the close of business on November 28, 2025 [2] Group 3: Group 1 Automotive - Group 1 Automotive's board declared a $0.50 dividend per share, payable on December 15, 2025 [3] - This dividend is consistent with a previously announced increase of 6% in its annualized dividend rate from $1.88 per share in 2024 to $2.00 per share in 2025 [3] Group 4: Quest Diagnostics - Quest Diagnostics declared a quarterly cash dividend of $0.80 per share, payable on January 28, 2026 [4] - The dividend will be distributed to shareholders of record on January 13, 2026 [4] Group 5: Aflac - Aflac announced a first quarter dividend of $0.61 per share, payable on March 2, 2026 [5] - This represents a 5.2% increase over the previously declared fourth quarter 2025 dividend [5]

Group 1 - Barclays analyst John Babcock indicates investment opportunities in the automotive dealership sector due to expected profit growth in fiscal year 2026 and a recent decline in valuations [1] - The automotive retail industry is rated as "neutral," but certain companies show potential for above-average performance due to strong growth trends and resilience in adverse economic cycles [1] - Demand for used cars in the U.S. is weak, and auto credit data shows a decrease in demand in the subprime market [1] Group 2 - Companies rated "buy" include Carvana (CVNA.US) for its investment in optimizing online purchasing experience, while CarMax (KMX.US) is rated "sell" due to inconsistent operational performance and potential higher-than-expected loan loss reserves [1] - In the new and used car dealership segment, companies rated "buy" include AutoNation (AN.US), Group 1 Automotive (GPI.US), Lithia Motors (LAD.US), and Penske Automotive (PAG.US) based on strong same-store sales growth and stable operational performance [2] - Asbury Automotive (ABG.US) and Sonic Automotive (SAH.US) are rated "hold" [2]

Core Insights - Graphic Packaging International (GPI) reported a net sales of $2.19 billion for Q3 2025, a decrease of 1.2% year over year, with net income falling to $142 million from $165 million in Q3 2024 [1] Sales Performance - Packaging sales volumes declined by 2% year over year, attributed to sluggish consumer spending and unpredictable customer order flows [1] - Certain customer promotions were noted but deemed insufficient to drive overall volume increases [1] Operational Developments - GPI commenced operations at its recycled paperboard mill in Waco, Texas, ahead of schedule, producing its first commercially saleable rolls in October, with full production expected in 12 to 18 months [1] - The Waco facility is strategically located near four major urban centers, enhancing its ability to source recovered fiber feedstock [1] Plant Closures - The East Angus, Quebec recycled paperboard plant will cease production on December 23, 2025, following the operational launch of Waco [1] - The closure of East Angus, along with the earlier closure of the Middletown, Ohio facility, contributes to a capacity loss in the industry, with Waco adding only 75,000 tons more than the industry had at the start of 2025 [1] Market Dynamics - GPI anticipates that its recycled paperboard will replace more expensive bleached paperboard in various markets [1] - A significant imbalance in the solid bleached sulfate (SBS) market has led competitors to lower SBS pricing, which now matches recycled packaging pricing, impacting sales and profitability [1] Financial Outlook - GPI's full-year guidance for net sales remains unchanged at $8.4 billion to $8.6 billion, while the guidance for earnings before interest, taxes, depreciation, and amortization (EBITDA) has been lowered to between $1.4 billion and $1.45 billion [1] - The company acknowledges challenges in predicting demand but expresses confidence in improving margins moving forward [1]

Core Insights - Sonic Automotive reported quarterly earnings of $1.41 per share, missing the Zacks Consensus Estimate of $1.82 per share, but showing an increase from $1.26 per share a year ago, resulting in an earnings surprise of -22.53% [1] - The company achieved revenues of $3.97 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 8.18% and up from $3.49 billion year-over-year [2] - Sonic Automotive shares have increased approximately 22.9% year-to-date, outperforming the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $3.84 billion, and for the current fiscal year, it is $7.21 on revenues of $14.82 billion [7] - The estimate revisions trend for Sonic Automotive was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Automotive - Retail and Whole Sales industry is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8] - Group 1 Automotive, another company in the same industry, is expected to report quarterly earnings of $10.64 per share, reflecting a year-over-year increase of 7.5%, with revenues anticipated to be $5.63 billion, up 7.8% from the previous year [9][10]

Group 1 - LRT Capital Management's "LRT Global Opportunities Strategy" reported a net return of -8.00% in September 2025 and a year-to-date return of -0.17% [1] - The strategy employs a systematic long/short approach to generate positive returns while controlling downside risks and maintaining low net exposure to equity markets [1] - The strategy faced challenges in September as market indexes surged, particularly driven by a few overvalued mega-cap stocks, while the broader market declined [1] Group 2 - Group 1 Automotive, Inc. (NYSE:GPI) experienced a one-month return of -8.81% but gained 21.52% over the last 52 weeks, closing at $429.33 per share on October 7, 2025, with a market capitalization of $5.555 billion [2] - Group 1 Automotive operates as a premier, internationally diversified automotive retailer with a significant presence in the U.S. and the U.K. [3] - The company has established itself through a disciplined growth strategy, focusing on operational excellence and managing a portfolio of leading automotive brands [3]

Investment Strategy Overview - LRT Global Opportunities strategy returned -8.00% in September and -0.17% year-to-date as of October 1, 2025 [4][5] - The strategy focuses on long positions in high-quality companies and short positions in broad market indexes, viewing September's performance as a temporary setback [6] - Current market valuations are at extreme levels, with a trailing P/E ratio over 30x, P/B ratio over 5.6x, and cyclical P/E over 40x, indicating potential future return challenges [7] Company Highlights StoneX Group Inc. (SNEX) - StoneX operates as a diversified financial services network, providing execution, clearing, payment, and advisory services across various asset classes [12][13] - The company focuses on underserved client segments, leveraging deep institutional knowledge and a robust global infrastructure [13][14] - StoneX's growth strategy combines organic expansion with strategic acquisitions, enhancing capabilities and geographic reach [14][15] Simpson Manufacturing Co., Inc. (SSD) - Simpson is a leader in engineered structural connectors, with products specified in building codes, creating high switching costs for customers [16][17] - The company benefits from a strong distribution network and technical support, reinforcing its market position [18][19] - Demand for Simpson's products is driven by housing construction and stricter building codes due to extreme weather events [19][20] Asbury Automotive Group, Inc. (ABG) - Asbury operates a diverse portfolio of dealerships, focusing on high-margin parts and service operations for revenue stability [21][22] - The company has a proven track record in strategic acquisitions, enhancing its operational footprint and earnings power [23][24] - Asbury's digital retailing platform, Clicklane, integrates online and in-store experiences, providing a competitive advantage [24][25] Chemed Corp. (CHE) - Chemed operates VITAS Healthcare and Roto-Rooter, benefiting from strong demand in hospice care and plumbing services [26][27] - VITAS is positioned to capitalize on the aging U.S. population, while Roto-Rooter offers recession-resistant services [28][29] - The company has a disciplined capital allocation strategy, returning significant capital to shareholders [29] The Toronto-Dominion Bank (TD) - TD is a major player in North America's banking sector, with a focus on retail and commercial banking [30][31] - The bank's U.S. retail segment has been a primary growth engine, supported by strategic acquisitions [32] - TD's conservative risk culture and strong capital management contribute to its competitive advantage [34] RLI Corp. (RLI) - RLI is a specialty insurance company known for its underwriting discipline and focus on niche markets [35][36] - The company prioritizes profitability over growth, maintaining a strong alignment of interests through employee ownership [37][38] - RLI has a history of returning excess capital to shareholders, demonstrating a commitment to shareholder value [38] The Toro Company (TTC) - Toro is a leader in turf and landscape solutions, known for its quality and innovation [39][40] - The company has a strong distribution network and a disciplined growth strategy, including strategic acquisitions [41][42] - Toro consistently generates strong free cash flow, which is reinvested in product development and shareholder returns [42] Crown Castle International Corp. (CCI) - Crown Castle owns the largest portfolio of shared communications infrastructure in the U.S., primarily macro cell towers [43][44] - The company benefits from long-term lease agreements, providing predictable revenue streams [44][45] - Crown Castle is divesting non-core businesses to focus on its tower portfolio, enhancing shareholder value [46] Corporación América Airports S.A. (CAAP) - CAAP operates 53 airports across six countries, generating revenue from aeronautical and commercial activities [48][49] - The company invests in airport infrastructure to enhance operational efficiency and passenger experience [51] - CAAP is well-positioned to benefit from the recovery in global air travel [52] Colliers International Group Inc. (CIGI) - Colliers is a global leader in commercial real estate services, distinguished by its decentralized structure and entrepreneurial culture [53][54] - The company pursues a balanced growth strategy, focusing on high-margin business lines [56] - Colliers' ownership culture aligns interests with long-term shareholders, enhancing its competitive advantage [54] The Travelers Companies, Inc. (TRV) - Travelers is a leading provider of property and casualty insurance, organized into three primary segments [57][58] - The company benefits from a vast distribution network and strong relationships with independent agents [58][62] - Travelers leverages its scale and data advantages to maintain profitability and manage risks effectively [62] Petróleo Brasileiro S.A. - Petrobras (PBR-A) - Petrobras is a major integrated energy producer, controlling significant pre-salt oil reserves [63][64] - The company focuses on maximizing value from its most profitable exploration and production activities [65][66] - Petrobras' performance is closely tied to its operational execution in the pre-salt basins [66] Fabrinet (FN) - Fabrinet specializes in advanced optical packaging and precision manufacturing, serving leading OEMs [67][68] - The company's engineering expertise and focus on complex manufacturing create high switching costs [68][69] - Fabrinet benefits from secular tailwinds in the optical communications market, driven by data traffic growth [69][70] UnitedHealth Group Incorporated (UNH) - UnitedHealth is a leading healthcare enterprise, combining health benefits with diversified health services [71][72] - The company's scale provides cost advantages and superior negotiating power in the healthcare market [73][74] - UnitedHealth's integrated model enhances efficiency and patient outcomes, positioning it for continued growth [74] Charter Communications, Inc. (CHTR) - Charter is a major connectivity provider in the U.S., focusing on high-speed broadband services [76][77] - The company is upgrading its network to meet increasing bandwidth demands and expanding into underserved areas [79] - Charter's convergence of services, including mobile offerings, enhances customer loyalty and reduces churn [78][79] Group 1 Automotive, Inc. (GPI) - Group 1 operates a diversified automotive retail business, focusing on luxury and import brands [80][81] - The company's disciplined acquisition strategy enhances performance and profitability [82] - Group 1's digital retailing platform improves customer experience and operational efficiency [82][83] Exxon Mobil Corp (XOM) - Exxon Mobil is a leading integrated energy and chemical manufacturer with a vertically integrated business model [85]

Core Viewpoint - The class-action lawsuit against major containerboard manufacturers alleges price-fixing and market manipulation, claiming a coordinated effort to inflate prices by approximately 30% since late 2020 [2][3][4]. Group 1: Lawsuit Details - The lawsuit was initiated by Artuso Pastry Foods Corp. in July 2025, naming eight major containerboard manufacturers as defendants [1]. - Graphic Packaging International was voluntarily dismissed from the case on 25 September 2025, leaving seven defendants accused of conspiring to raise prices [2][5]. - The plaintiffs allege that the defendants engaged in coordinated price increases through seven hikes from November 2020 to the present, despite weak demand [3]. Group 2: Antitrust Allegations - The lawsuit claims that the actions of the defendants constitute a violation of U.S. antitrust laws, suggesting they operated as a "cartel" to manipulate market prices [4]. - Over 85% of the U.S. containerboard market is reportedly controlled by a small number of companies, which may facilitate collusive behavior [4]. Group 3: Industry Response and Legal Proceedings - Most defendants have not publicly commented on the litigation, but Georgia-Pacific has denied the claims, asserting they are without merit [5]. - The case is set to proceed against the remaining companies, with a status update required by 17 December 2025 [6]. - Plaintiffs are seeking treble damages, which could lead to settlements or increased scrutiny of pricing practices in the sector [6]. Group 4: Market Implications - The ongoing litigation has significant implications for the broader containerboard market, potentially affecting pricing and market stability [7].

Core Insights - CarMax shares fell over 20% after missing quarterly earnings and revenue expectations, reporting earnings per share of 99 cents and revenue of approximately $6.6 billion, a 6% decline year-over-year [1][2] - The company's vehicle sales decreased by 4.1% compared to the same period last year, contributing to a 28% drop in net income to $95.4 million [2] - Other car retailers' shares also declined following CarMax's results, indicating the company's performance is viewed as a barometer for the industry [3] Financial Performance - Earnings per share: 99 cents, below the expected 1.05 [1] - Revenue: Approximately $6.6 billion, down 6% from the previous year, while analysts expected $7.01 billion [1] - Net income: $95.4 million, a decrease of 28% year-over-year [2] Market Reaction - CarMax's disappointing results led to a significant drop in its stock price, impacting other car retailers such as Group 1 Automotive, Penske Automotive Group, Sonic Automotive, Lithia Motors, AutoNation, and Carvana, which saw declines of around 2% to 4% [3]