Market Overview - Wall Street has experienced significant volatility in 2026, with major indexes losing previous gains, particularly affected by the downturn in tech stocks that have previously driven market rallies [1][3] - High inflation and uncertainty regarding the Federal Reserve's interest rate policies have contributed to market instability [1][6] Dividend-Paying Stocks - In light of market volatility, investors seeking steady income may consider dividend-paying stocks as a protective measure [1][2] - Three notable dividend-paying stocks include Verisk Analytics, Inc. (VRSK), Seanergy Maritime Holdings Corp (SHIP), and Vulcan Materials Company (VMC) [2] Verisk Analytics, Inc. (VRSK) - Verisk Analytics is a leading data analytics provider serving various sectors, including insurance and energy, with a Zacks Rank of 3 (Hold) [7] - The company announced a dividend of $0.50 per share, with a dividend yield of 1.02% and a payout ratio of 26% of earnings [8] Seanergy Maritime Holdings Corp (SHIP) - Seanergy Maritime is a prominent Capesize ship-owner providing marine dry bulk transportation services, holding a Zacks Rank of 1 [11] - The company declared a dividend of $0.20 per share, with a dividend yield of 4.11% and a payout ratio of 28% of earnings [12] Vulcan Materials Company (VMC) - Vulcan Materials is the largest supplier of construction aggregates in the U.S. and has a Zacks Rank of 3 [13] - The company announced a dividend of $0.52 per share, with a dividend yield of 0.65% and a payout ratio of 23% of earnings [14]

Core Insights - The company's performance was driven by strong subscription growth across various areas, compensating for a year of low weather activity that affected transactional volumes [1] - Management decided to terminate the AccuLink acquisition due to the high opportunity cost associated with an extended FTC review process, opting to prioritize agility in a fast-changing tech environment [1] - The divestiture of Verisk Marketing Solutions indicates a strategic shift to focus solely on data analytics and technology for the global insurance industry [1] Strategic Initiatives - The 'Coreline Reimagine' program is nearing completion, having released 22 out of the 20 targeted modules aimed at enhancing value realization during the renewal process [1] - The company is positioning AI as a productivity and value-add layer on top of its proprietary data, rather than as a standalone product, to improve carrier accuracy and efficiency [1] - The company's role as a regulatory intermediary is emphasized by its filing of over 2,000 products annually and maintaining daily contact with all 50 state regulators [1] Leadership Changes - The appointment of Steve Cotterer to lead the claims business reflects an increased focus on transforming insurance workflows through the integration of data and AI [1]

Core Insights - Verisk reported another quarter of double-digit growth, driven by contract expansions, solid renewals, and new client acquisitions, with strong interest in Verisk Synergy Studio ahead of its planned launch in 2026 [1] - Subscription revenue, a key indicator of business health, represented 84% of total fourth-quarter revenue, growing 7.7% on an OCC basis [3] - The company expects continued subscription-led growth and expanding adoption of AI-enabled products in claims workflows [7] Financial Performance - Fourth-quarter GAAP revenue was $779 million, up 5.9% year over year, while net income was $197 million, down 6.2% [5] - Organic constant currency (OCC) revenue growth for 2025 was 6.6%, with OCC adjusted EBITDA growth of 8.5% [6] - Fourth-quarter OCC adjusted EBITDA grew 6.2%, with an adjusted EBITDA margin of 56.1%, up 200 basis points year over year [11] Revenue Breakdown - Transactional revenue, which represented 16% of total revenue, declined 6.5% OCC in the fourth quarter, primarily due to lower volumes in property estimating solutions [9] - The decline in transactional revenue was largely tied to storm-related comparisons and a conversion of some transactional revenue to subscription revenue [10] Portfolio Management - Verisk terminated its agreement to purchase AccuLynx and sold Verisk Marketing Solutions as part of ongoing portfolio management [15] - The company redeemed $1.5 billion of senior notes related to the terminated AccuLynx acquisition [16] AI and Product Development - AI is a major area of client discussion and product investment, with over 35 AI-powered projects currently in use [17] - New claims products showcased include XactXpert, XactAI, and XactGen, with expected revenue guidance for 2026 between $3.19 billion and $3.24 billion [18] Future Guidance - The first quarter of 2026 is expected to be a "trough" for reported revenue dollars and growth rates, with anticipated low single-digit percentage decline compared to fourth-quarter 2025 [19] - Verisk plans to provide more detail on strategy and business drivers at its Investor Day on March 5 [20]

Economic Indicators - The market's focus includes corporate earnings results and economic news, with the release of the FOMC meeting minutes and various economic indicators expected this week [1] - Initial weekly unemployment claims are expected to decline by 2,000 to 225,000, while the Philadelphia Fed business outlook survey is anticipated to fall by 5.3 to 7.3 [1] - The December trade deficit is expected to widen to $86.0 billion, and January pending home sales are projected to increase by 2.0% month-over-month [1] - Q4 GDP is expected to expand by 3.0% on a quarter-over-quarter annualized basis, with the core price index expected to climb by 2.6% [1] Manufacturing and Housing Data - US January manufacturing production rose by 0.6% month-over-month, exceeding expectations of 0.4% and marking the largest increase in 11 months [2] - December housing starts increased by 6.2% month-over-month to a five-month high of 1.404 million, surpassing expectations of 1.304 million [2] - December building permits rose by 4.2% month-over-month to a nine-month high of 1.448 million, also exceeding expectations of 1.400 million [2] - December capital goods new orders (nondefense ex-aircraft and parts) rose by 0.6% month-over-month, stronger than the expected 0.3% [2] Stock Market Performance - Stock indexes are rising due to solid US economic news, with the S&P 500 Index up by 0.36%, the Dow Jones Industrial Average up by 0.47%, and the Nasdaq 100 Index up by 0.40% [4] - Over three-quarters of S&P 500 companies have reported earnings, with 75% beating expectations, and S&P earnings growth is expected to climb by 8.4% in Q4 [4] - Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by 4.6% [4] Company-Specific Developments - Garmin Ltd reported Q4 revenue of $2.12 billion, above the consensus of $2.00 billion, and forecasts full-year revenue of $7.90 billion, stronger than the consensus of $7.61 billion, leading to a stock increase of over 15% [10] - Global Payments is up more than 11% after forecasting full-year adjusted EPS of $13.80 to $14.00, well above the consensus of $13.59 [11] - Caesars Entertainment reported Q4 same-store adjusted EBITDA of $901.0 million, above the consensus of $900.1 million, resulting in a stock increase of over 11% [11] - Pitney Bowes reported Q4 adjusted EPS of 45 cents, above the consensus of 38 cents, and forecasts 2026 adjusted EPS of $1.40 to $1.60, stronger than the consensus of $1.38, leading to a stock increase of over 9% [12]

Core Insights - S&P Global Energy and Verisk have announced a collaboration to provide climate catastrophe exposure data and insights for the financial and insurance sectors, aiming to quantify the financial impacts of climate and natural catastrophe events [1][2] - This partnership addresses the urgent need for robust risk analytics in light of recent record-setting losses from natural hazards, creating a new industry benchmark for climate risk intelligence [1] Industry Applications - **Real Estate**: The collaboration offers insights and modeling capabilities to understand insured and uninsured risks, helping identify growth opportunities [1] - **Asset Management**: It enhances climate and physical hazards risk analysis with decision-grade data, allowing asset managers to mitigate climate-driven risks across real estate holdings [1] - **Finance**: The partnership meets rising regulatory and investor expectations for climate-risk disclosure, providing actionable insights for effective risk-mitigation and lending strategies [1] - **Insurance**: It reduces uncertainty in underwriting future climate-related flood exposure, enabling banks and insurers to enhance portfolio stress testing and optimize capital allocation [1] Data Integration and Innovation - Verisk's climate catastrophe risk data will be integrated into S&P Global Sustainable1's climate risk platform, allowing for the assessment of insured versus uninsured losses due to climate change [1] - The collaboration will also incorporate climate-adjusted inland flood data with Verisk's event simulations to model future climate events through 2050, providing a cutting-edge dataset for insurers [1] - The combined risk intelligence metrics will empower clients to quantify, disclose, and manage exposure to financial impacts from physical hazards and climate risk [1]

New Jersey-based Verisk Analytics, Inc. (VRSK) sits at the heart of the global insurance ecosystem, serving as a trusted data analytics and technology partner to insurers around the world. The company equips its clients with powerful insights that sharpen underwriting, streamline claims processing, detect fraud and enhance overall operating efficiency. By blending advanced analytics, purpose-built software, scientific research and deep industry expertise, Verisk helps insurers navigate complex global ris ...

Core Viewpoint - Verisk Analytics, Inc. has experienced a significant decline in its stock price, dropping approximately 25% since the end of January and nearly 50% from last summer's highs, returning to 2023 price levels [3][4]. Group 1: Stock Performance - Shares of Verisk are currently trading around $170, marking a substantial decrease from previous highs [3]. - The stock has lost close to 50% since summer 2025, indicating a severe downturn in investor sentiment [9]. Group 2: Investor Sentiment and Market Dynamics - A disappointing earnings report has heightened concerns regarding slowing growth, leading to a perception that the stock's valuation was overstretched relative to its growth potential [4]. - The relative strength index (RSI) for Verisk has fallen to 20, one of the lowest in its trading history, suggesting extremely oversold conditions and potential exhaustion of selling pressure [6][9]. Group 3: Potential for Recovery - Despite the ongoing decline, there are indications that the market may have overreacted, with contrarian investors considering the potential for a rebound as selling momentum appears to be waning [5][8]. - A bullish analyst call in early February suggests a potential upside of approximately 35%, enhancing the contrarian risk/reward scenario for investors [9].

分组1 - TransUnion reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, and showing an increase from $0.97 per share a year ago, representing an earnings surprise of +4.05% [1] - The company achieved revenues of $1.17 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.02%, and up from $1.04 billion year-over-year [2] - TransUnion has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed, losing about 16.3% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $1.2 billion, and for the current fiscal year, it is $4.85 on revenues of $4.95 billion [7] - The Business - Information Services industry, to which TransUnion belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, which may impact stock performance [8]

Core Insights - The Baron Financials ETF experienced a decline of 2.22% in the fourth quarter of 2025, underperforming the FactSet Global FinTech Index, which fell by 7.19%, but slightly trailing the MSCI USA Financials Index, which gained 2.07% [2][3][7] - Since its inception on December 31, 2019, the Fund has achieved an annualized return of 10.21%, outperforming the FinTech Index's 2.55% but lagging behind the Financials Index's 11.97% [2][3] Performance Overview - In the fourth quarter, the Fund's performance was driven by favorable stock selection within Information Services and an overweighting in Tech-Enabled Financials, while underexposure to banks negatively impacted relative performance [7][8] - The Fund's average weighting in banks was only 6%, which cost nearly 2 percentage points of relative performance against the Financials Index, where banks had a 38% weighting and were the top-performing industry [7][8] Sector Analysis - The Fund's holdings are segmented into various industries, with Capital Markets representing 31.7%, Information Services at 20.7%, and Payments at 17.4% as of December 31, 2025 [20][23] - The Fund has a significant overweight in Information Services and Capital Markets compared to the Financials Index, while being underweight in Banks and Insurance [20][21] Key Contributors and Detractors - Top contributors to the Fund's performance included Fair Isaac Corporation, S&P Global Inc., and Jack Henry & Associates, with Fair Isaac contributing 0.37% to returns due to strong quarterly results and positive fiscal guidance [12][13][14] - Major detractors included Robinhood Markets, which fell 0.93% due to a decline in customer engagement and cryptocurrency trading volumes, and MercadoLibre, which faced competitive pressures and margin concerns [16][17] Recent Activity - The Fund made significant net purchases in Morgan Stanley, Capital One Financial Corporation, and The Charles Schwab Corporation, focusing on firms with strong growth prospects and diversified revenue streams [25][31] - The Fund trimmed positions in Guidewire Software and Interactive Brokers to manage exposure to the volatile software sector and to fund purchases with better expected returns [32][33] Market Outlook - The macroeconomic environment is viewed as generally healthy, with stable credit trends and a low unemployment rate of 4.4% as of December 2025, supporting growth in the financial sector [34][35] - The Fund anticipates continued growth driven by favorable fiscal policies and easing monetary conditions, with expectations for two rate cuts in the upcoming year [35][36]

Core Insights - The Baron Financials ETF experienced a decline of 2.22% in the fourth quarter of 2025, underperforming the MSCI USA Financials Index which gained 2.07% and the S&P 500 Index which rose by 2.66% [2][3][7] - Since its inception, the Fund has achieved a 10.21% annualized return, outperforming the FactSet Global FinTech Index which only rose by 2.55% [2][3] Performance Overview - In the fourth quarter, the Fund's performance was influenced by favorable stock selection within Information Services and an overweighting in Tech-Enabled Financials, despite underperformance against the Financials Index due to low exposure to banks [7][8] - The Fund's annualized performance over various periods shows a 0.91% gain over one year, 16.52% over three years, and 4.01% over five years [3] Market Context - The fourth quarter of 2025 saw a steady finish for equity markets, driven by easing economic pressures and lower interest rates, with large-cap technology stocks leading the market [6] - The Federal Reserve's rate cuts contributed to a favorable environment for financial markets, with large-cap stocks outperforming mid and small-cap stocks [6] Fund Strategy and Holdings - The Fund maintains a growth-oriented investment strategy focused on financial and financial-related companies, emphasizing those with sustainable competitive advantages and strong management [5] - As of December 31, 2025, the Fund held 43 positions, with the top 10 holdings representing 43.8% of net assets [19][22] Sector Allocation - The Fund's sector allocation includes 31.7% in Capital Markets, 20.7% in Information Services, and 17.4% in Payments, with a notable underweight in Banks at 8.2% [20][23] - The Fund's holdings are primarily classified as Leaders (75.6% of net assets) and Challengers (24.2% of net assets), indicating a focus on established companies with stable growth [21] Recent Activity - The Fund made significant net purchases in Morgan Stanley and Capital One Financial Corporation, reflecting a strategy to invest in firms with strong growth potential and diversified revenue streams [25][31] - The Fund trimmed positions in Guidewire Software and Interactive Brokers to manage exposure to the volatile software sector [32] Outlook - The macroeconomic environment is viewed as generally healthy, with expectations for continued growth supported by fiscal stimulus and easing monetary policy [34][35] - Political developments are seen as a potential risk, particularly regarding regulatory changes that could impact the financial sector [36]