​Sylvamo Corp. (NYSE:SLVM) is one of the Best Small Cap Value Stocks to Buy. Bank of America Securities maintains a positive stance on Sylvamo Corp. (NYSE:SLVM) despite a 36.68% year-to-date decline. Recently, on December 1, George Staphos from BofA reiterated a Buy rating on the stock with a $59 price target. ​The firm had updated the stock to Buy earlier on November 21, along with two other names from the packaging and paper sector. The analyst sees significant catalysts for the company, including impr ...

Sylvamo Corporation (NYSE:SLVM) is one of the best dividend stocks to buy. As of December 5, the average price target for SLVM suggests an upside of 21%, however, the Street high indicates an upside of 54%. Previously, according to a report by The Fly on November 17, analyst George Staphos at BofA upgraded Sylvamo Corporation (NYSE:SLVM) from Underperform to Buy, while boosting the price target from $41 to $59. Wall Street Sees a 54% Upside to Sylvamo Corporation (SLVM) Photo by andres perez on Unsplash ...

Core Insights - The article discusses the potential resurgence of small-cap dividend stocks, highlighting their current undervaluation and the favorable economic conditions that may support their growth [2][5]. Economic Environment - Small-cap American stocks have been slow-moving, but expectations of interest rate cuts by the Fed could benefit these companies due to reduced borrowing costs [2][3]. - Goldman Sachs reports that American small-cap earnings are showing signs of recovery, with 25% of Russell 2000 members posting growing earnings for at least two consecutive quarters [4]. International Perspective - European small-caps are expected to experience robust growth, with higher market expectations compared to larger companies [5]. - Japanese small and mid-cap companies have outperformed large-caps, supported by solid earnings and strong local demand [5]. Valuation Metrics - US small-cap stocks are currently priced about 26% less than large caps, while international small caps are 8% cheaper, indicating potential undervaluation [5]. Investment Strategy - The article presents a list of the best small-cap dividend stocks to buy, focusing on those with significant hedge fund interest [6][9]. - The methodology for selecting these stocks involves using the Invesco S&P SmallCap High Dividend Low Volatility ETF and focusing on holdings with market caps between $300 million and $2 billion [9]. Company Highlights - **Sylvamo Corporation (NYSE:SLVM)**: - Market Cap: $1.967 billion, Dividend Yield: 3.69%, with a potential upside of 21% to 54% based on price targets [11][12]. - Recently upgraded by BofA, with a rights plan approved to protect shareholder value [12][13][14]. - **SunCoke Energy, Inc. (NYSE:SXC)**: - Market Cap: $575.726 million, Dividend Yield: 7.06%, with a suggested upside of 47% [16]. - Adjusted EBITDA guidance for 2025 raised to between $220 million and $224 million, driven by strong performance in Industrial Services [18]. - Extended a cokemaking deal with Cleveland-Cliffs Inc. for three years, starting January 1, 2026 [19].

Group 1 - DENTSPLY SIRONA Inc. (XRAY) has been added to the Zacks Rank 5 (Strong Sell) List due to a 6.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Edenred SE (EDNMY) is also on the Zacks Rank 5 (Strong Sell) List, with a 5.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Sylvamo Corporation (SLVM) has seen an 11.6% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 (Strong Sell) List [2]

Financial Performance - The company's Q3 2025 sales were $6222 million, compared to $6142 million in Q2 2025 and $3979 million in Q3 2024[23] - Adjusted EBITDA for Q3 2025 was $859 million, up from $670 million in Q2 2025 and $366 million in Q3 2024[24] - The Adjusted EBITDA margin increased to 138% in Q3 2025, compared to 109% in Q2 2025 and 92% in Q3 2024[25] - The company reported an Adjusted EBIT loss of $240 million in Q3 2025, compared to an Adjusted EBIT of $239 million in Q2 2025 and $158 million in Q3 2024[26] - Adjusted Operating EPS was $(043) in Q3 2025, compared to $018 in Q2 2025 and $033 in Q3 2024[27] - Free cash flow was $150 million in Q3 2025, compared to $54 million in Q2 2025 and $309 million in Q3 2024[28] Packaging Solutions North America (PS NA) - PS NA YTD Adjusted EBITDA increased from $123 billion in 2024 to $172 billion in 2025, a 40% increase[16] - PS NA YTD Adjusted EBITDA margin increased by 370 bps, from 120% in 2024 to 157% in 2025[16] - PS NA Adjusted EBITDA increased from $515 million in Q2 2025 to $655 million in Q3 2025[30] - The company expects PS NA Adjusted EBITDA to be $600 million in Q4 2025[37] Packaging Solutions EMEA (PS EMEA) - PS EMEA Adjusted EBITDA increased from $194 million in Q2 2025 to $209 million in Q3 2025[30] - The company expects PS EMEA Adjusted EBITDA to be $230 million in Q4 2025[44] Strategic Initiatives and Targets - The company is targeting approximately $06 billion in incremental Adjusted EBITDA for 2026 from cost out and commercial actions[49] - The company updated its 2025 net sales target to approximately $240 billion and Adjusted EBITDA target to approximately $30 billion[51] - The company updated its 2027 net sales target to approximately $255 billion and Adjusted EBITDA target to approximately $50 billion[51]

Core Insights - The paper and packaging industry is currently facing significant demand challenges, with executives from various companies expressing a pessimistic outlook for the near future [2][3][4] - Analysts suggest that while a modest recovery in demand may be on the horizon, it is not expected to be dramatic, and the worst of the downturn may be over [7][18] Demand and Supply Dynamics - International Paper's CEO indicated that current demand is nearing a bottom, while GPI's CEO noted an unusual period of volume weakness [1] - Box shipments are projected to decline by 3% year over year in Q3 2025, with a full-year decline of approximately 2.5% to 3% expected [3] - BofA's box survey indicates a slight improvement in growth expectations, with a decrease of 0.2% anticipated for the next two quarters, compared to a 1% decline previously [4] - Containerboard producers have announced closures totaling about 3.9 million tons, or 9.5% of North American capacity, which is expected to help rebalance supply and demand [7][8] Capacity Adjustments - The industry has seen unprecedented capacity reductions, with 5.4 million tons cut since 2023, marking a significant correction in the market [9][10] - Analysts believe that these capacity cuts are necessary to address the years of oversupply that have affected both North American and global markets [5][10] Pricing Trends - Prices for old corrugated containers (OCC) surged by 245% year over year by mid-2024 but have since declined due to weak containerboard demand [12][13] - Analysts expect OCC prices to continue declining in the coming months, although a modest uptick in demand could lead to price increases by the end of the year [14] Tariff and Trade Impacts - Tariffs have not significantly impacted fiber demand but have affected the demand for goods shipped in boxes, with containerboard production for export dropping nearly 12% year over year [15][16] - Current tariffs are considered mild compared to previous levels, which may help stabilize the market as trade tensions ease [16] Future Outlook - Analysts predict that the downward trend in corrugated demand may ease in Q4, supported by potential interest rate cuts and progress on tariff resolutions [18] - A slow and mild recovery is anticipated, with RaboResearch expecting flat linerboard pricing through the first half of 2026 and a potential price increase later in the year [19] - Industry observers are closely monitoring a class action price-fixing lawsuit against top containerboard producers, which could influence future pricing strategies [20][21]

Core Insights - Brown & Brown, Inc. has appointed Joia M. Johnson to its board of directors, bringing extensive experience from her previous roles at Hanesbrands Inc. and RARE Hospitality International, Inc. [1][2] Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm established in 1939, with over 700 locations and a workforce of more than 23,000 professionals [4]. Leadership and Governance - H. Palmer Proctor, Jr., lead independent director, highlighted Johnson's ability to navigate complexity and her experience on various publicly traded boards [2]. - J. Powell Brown, CEO, emphasized that Johnson's unique experience will significantly impact the board and support the company's growth strategy [2]. Joia M. Johnson's Background - Johnson served as Hanes' chief administrative officer from 2016 to 2021 and held multiple leadership roles from 2007 to 2021 [2]. - Prior to her tenure at Hanes, she was executive vice president and general counsel at RARE Hospitality International, Inc. from 2001 to 2007 [2]. Board Memberships - Johnson currently serves on the boards of Global Payments Inc., Sylvamo Corporation, and Regions Financial Corp., holding various committee memberships [3].

Core Insights - ATI Inc. reported a profit of $100.7 million or 70 cents per share for Q2 2025, an increase from $81.9 million or 58 cents in the same quarter last year, with adjusted earnings of 74 cents, up 23.3% year over year, surpassing the Zacks Consensus Estimate of 72 cents [1][10] Financial Performance - Net sales for Q2 2025 were $1,140.4 million, slightly below the Zacks Consensus Estimate of $1,144.3 million, but up approximately 4.1% year over year, driven by strong growth in aerospace and defense [2] - High-Performance Materials & Components (HPMC) segment reported sales of $608.8 million, an 8.3% increase year over year, although it missed the consensus estimate of $621.4 million; segment EBITDA rose 26.5% year over year to $144 million [3] - Advanced Alloys & Solutions (AA&S) recorded sales of $531.6 million, a slight decline of 0.3% from the previous year, but exceeded the consensus estimate of $525.2 million; segment EBITDA decreased by 12.3% year over year to $76.7 million [4] - Cash and cash equivalents stood at $319.6 million, down from $425.6 million the previous year, while long-term debt decreased by 7.7% to $1,710.7 million [5] Future Outlook - For Q3 2025, adjusted EBITDA is expected to be between $200 million and $210 million, with full-year guidance set between $810 million and $840 million; adjusted earnings per share are projected at 69-75 cents for Q3 and $2.90 to $3.07 for the full year [6][10] - Adjusted free cash flow for the full year is estimated to be between $270 million and $350 million, with anticipated capital expenditures between $260 million and $280 million [6]

Core Insights - Scotts Miracle-Gro Company (SMG) reported a third-quarter fiscal 2025 profit of $149.1 million or $2.54 per share, an increase from $132.1 million or $2.28 per share in the same quarter last year [1] - Adjusted earnings were $2.59 per share, up from $2.31 a year ago, surpassing the Zacks Consensus Estimate of $2.19 [1] - Net sales decreased by approximately 1.2% year over year to $1,188 million, missing the consensus mark of $1,230.9 million [1] Segment Performance - In the U.S. Consumer division, net sales increased by 1% year over year to $1,030.2 million, although it fell short of the estimate of $1,071.4 million; the segment's profit rose by 12% to $235.5 million [2] - The Hawthorne segment experienced a significant decline, with net sales plummeting 54% year over year to $31.2 million, missing the estimate of $56.5 million [2] - The other segment saw an 8% increase in net sales year over year to $126.6 million, exceeding the estimate of $100.2 million, and reported a profit of $16.8 million, up 44% year over year [3] Financial Position - At the end of the quarter, the company had cash and cash equivalents of $51.1 million, down from $279.9 million a year ago; long-term debt was $2,136.2 million, a decrease of approximately 12.3% year over year [4] Future Outlook - The company reaffirmed its full-year adjusted fiscal 2025 outlook, projecting low single-digit growth in U.S. Consumer net sales, excluding non-recurring sales from AeroGarden and bulk raw materials; adjusted gross margin is expected to be around 30% [5] - Adjusted EBITDA is anticipated to be between $570 million and $590 million, with adjusted earnings per share projected to be at least $3.50 and free cash flow estimated at approximately $250 million [5] Stock Performance - Shares of Scotts Miracle-Gro have declined by 10.5% over the past year, contrasting with a 10.2% rise in the industry [6]

Core Insights - The Mosaic Company (MOS) reported a net profit of $411 million or $1.29 per share for Q2 2025, a significant improvement from a loss of $162 million or $0.50 per share in the same quarter last year [1] - Adjusted earnings per share were 51 cents, down from 54 cents a year ago, and below the Zacks Consensus Estimate of 67 cents [1] - Net sales increased by nearly 6.7% year over year to $3,005.7 million, but fell short of the Zacks Consensus Estimate of $3,130.5 million [2] Segment Highlights - Potash segment net sales were $711 million, up approximately 7.2% from $663 million in the prior-year quarter, with a gross margin increase to $89 per ton from $79 per ton [3] - Phosphate division net sales remained flat at $1.2 billion, with sales volume down to 1.5 million tons from 1.7 million tons last year, and a gross margin decrease to $67 per ton from $91 per ton [4] - Mosaic Fertilizantes segment net sales were $1.2 billion, up about 20% year over year, with a gross margin increase to $73 per ton from $46 per ton [5] Financial Overview - At the end of the quarter, Mosaic had cash and cash equivalents of $286.2 million, down 11.1% year over year, and long-term debt of $3,331.3 million, up 4.3% [6] - Net cash provided by operating activities was $609.5 million in the reported quarter [6] Outlook - For full-year 2025, phosphate production volumes are expected to range between 6.9 million and 7.2 million tons, while potash production is projected at 9.3 million to 9.5 million tons [7] - Total capital expenditures are estimated at $1.2 billion to $1.3 billion, with SG&A expenses forecasted between $520 million and $550 million [8] Q3 2025 Projections - For Q3 2025, phosphate sales volumes are expected between 1.8 million and 2.0 million tons, with DAP FOB plant prices ranging from $700 to $720 [9] - Potash sales volumes are projected at 2.2 million to 2.4 million tons, with MOP FOB mine prices estimated between $270 and $290 [9] Price Performance - Mosaic's shares have declined by 34.2% over the past year, compared to a 28.5% decline in the industry [12]