Core Viewpoint - The analysis compares Ambev (ABEV) and Brown-Forman B (BF.B) to determine which stock offers better value for investors currently [1]. Valuation Metrics - Both ABEV and BF.B hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3]. - ABEV has a forward P/E ratio of 14.34, while BF.B has a forward P/E of 17.17, suggesting ABEV may be undervalued compared to BF.B [5]. - ABEV's PEG ratio is 2.73, which is significantly lower than BF.B's PEG ratio of 10.47, indicating ABEV's expected earnings growth is more favorable [5]. - ABEV's P/B ratio is 2.32, compared to BF.B's P/B of 3.39, further supporting ABEV's valuation as more attractive [6]. - Based on these valuation metrics, ABEV is considered the superior value option compared to BF.B [7].

Market Overview - Major stock indices are experiencing gains, with the Dow and S&P 500 up approximately 0.8% and the NASDAQ nearly 1% [2][3] - If the current trend continues, the NASDAQ could end a three-week losing streak, marking its first positive week in four weeks [3] - Cryptocurrency market shows a rebound, with Bitcoin rising 3.5% to around $90,000, indicating a significant recovery from last week [5] Federal Reserve Insights - The Federal Reserve's Beige Book indicates a slowdown in consumer spending and hiring, alongside rising prices [7][8] - Consumer spending has declined due to factors like the government shutdown, with retail sales also showing weaker performance [8] - The job market is showing signs of deterioration, with increased layoff announcements and hiring freezes [9] - Inflation is reported to have a moderate increase, with businesses facing higher costs due to tariffs [11][12] Global Investment Opportunities - Investors are encouraged to consider global markets, as non-US assets may benefit from a weakening dollar [15][17] - Emerging markets, particularly in Asia, are highlighted as potential areas for investment, especially in sectors linked to AI [19][21] - The AI sector remains a key focus, with expectations for continued growth and investment opportunities [27][29] Value Stocks and Investment Strategies - Value stocks are defined as those priced low relative to earnings, assets, or cash flow, presenting potential upside [33][34] - Caution is advised against value traps, where stocks appear cheap but are declining due to deteriorating business fundamentals [34][35] - A strategy for identifying value stocks includes using filters like price-to-earnings ratios and dividend yields [36][39] Company-Specific Insights - Zscaler reported a 26% growth in annual recurring revenue (ARR) and a strong free cash flow margin of 52% [80][81] - The company is focusing on cybersecurity, particularly in the context of AI, as enterprises seek to secure their AI applications [91][92] - Zscaler's competitive landscape is evolving, with a focus on zero trust architecture as a differentiator from traditional firewall solutions [88][89] AI and Technology Sector - The AI sector is experiencing significant demand, with companies like Nvidia leading the charge in chip production for AI applications [63][70] - Analysts express confidence in the long-term growth of AI, viewing it as a transformative technology across various sectors [27][66] - Companies are increasingly integrating AI into their operations, with tangible productivity improvements noted in customer support and software development [95][96]

Core Viewpoint - MINISO Group (MSNO) is set to report its Q3 financial results on November 21, with expectations focused on performance indicators and potential investment opportunities for long-term investors [1]. Group 1: Financial Performance Expectations - The upcoming Q3 report is anticipated to provide insights into MINISO's financial health and operational performance, which are critical for assessing future growth potential [1]. Group 2: Investment Strategy - The investment approach discussed emphasizes a balanced portfolio that includes growth, value, and dividend-paying stocks, with a particular focus on value investments [1]. - The strategy also includes the occasional use of options trading to enhance returns [1].

Core Insights - The stock market experienced a sell-off at the beginning of the week, with Nvidia's earnings release anticipated on Wednesday. Despite this pullback, the Nasdaq has risen 45% since early April and 17% in 2025. Investors may consider taking profits even if Nvidia posts strong guidance, potentially shifting focus to value stocks instead [1]. Group 1: Value Stock Screening - The screening process aims to identify top value stocks using Zacks Rank 1 (Strong Buys) or 2 (Buys) and focuses on stocks with price-to-earnings (P/E) and price-to-sales (P/S) ratios below the industry median [4][9]. - The screening also considers quarterly earnings rates above the industry median and utilizes a blend of upgrades and estimate revisions to select the best stocks [5]. Group 2: Aris Mining Corporation (ARMN) - Aris Mining Corporation (ARMN) has seen its stock price increase by 360% over the past two years, outperforming its sector's 14%, the S&P 500's 50%, and the gold mining industry's 166%. Despite this growth, it trades 44% below its average Zacks price target at under $12 per share [6][12]. - The company operates two underground mines in Colombia, producing 210,955 ounces of gold in 2024, with plans to expand production to over 500,000 ounces annually [10]. - Aris Mining's revenue is projected to grow by 73% in 2025, increasing from $511 million to $1.37 billion, while adjusted EPS is expected to rise by 262% in 2025 [11]. - The gold mining industry is currently benefiting from high demand, with Aris Mining trading at a 50% discount to its industry and a 30% discount to its own historical highs [12].

Core Insights - Growth stocks are favored for their higher-than-average growth potential, but they can also experience significant declines [1][2] - Value stocks may be preferred during market downturns due to their limited downside and upside potential [2] - Long-term investment in growth stocks can yield positive results despite potential short-term pullbacks [2] Company Summaries - **Shopify (NASDAQ: SHOP)**: - Shopify has averaged annual gains of nearly 50% over the past decade and 49% year to date [4] - The company reported 32% revenue growth in its third quarter and maintains an 18% free-cash-flow margin, marking nine consecutive quarters of double-digit free-cash-flow margin [6] - Shopify's gross merchandise volume reached $87 billion, closely approaching Amazon's $107 billion [6] - The stock's forward-looking price-to-earnings (P/E) ratio is 85, below its five-year average of 98 [6] - **Taiwan Semiconductor Manufacturing (NYSE: TSM)**: - Taiwan Semiconductor is a leading semiconductor foundry, manufacturing chips rather than just designing them [9] - The company holds a significant market share of 71%, an increase from 65% the previous year [9]

Core Insights - Futu Holdings Limited (FUTU) is currently viewed as a more attractive investment option compared to AppLovin (APP) for value investors due to its stronger earnings outlook and better valuation metrics [3][7]. Valuation Metrics - FUTU has a forward P/E ratio of 21.28, significantly lower than APP's forward P/E of 62.74, indicating that FUTU is potentially undervalued [5]. - The PEG ratio for FUTU is 0.67, while APP's PEG ratio is 3.14, suggesting that FUTU offers better value relative to its expected earnings growth [5]. - FUTU's P/B ratio stands at 6.11, compared to APP's P/B of 134.22, further highlighting the disparity in valuation between the two companies [6]. Earnings Estimates - FUTU holds a Zacks Rank of 1 (Strong Buy), reflecting positive revisions in earnings estimates, while APP has a Zacks Rank of 3 (Hold), indicating a less favorable outlook [3][7]. - The Zacks Rank system emphasizes stocks with strong earnings estimate revision trends, which favors FUTU's improving earnings outlook [2][3].

Core Insights - Stocks from the so-called old economy are currently experiencing a favorable period after years of lagging behind their rivals in the information-technology sector [1] Group 1 - The old economy stocks are enjoying a moment of bliss, indicating a shift in market dynamics [1]

Market Overview - The Dow Jones Industrial Average closed up 326.86 points (0.6820%) at 48254.82, driven by optimism regarding the end of the U.S. government shutdown [1] - Dow Futures rose 321.00 points (0.6683%) to 48351.00, reflecting positive investor sentiment [1] Legislative Developments - The House of Representatives is set to vote on legislation to fund the government until January 30, which is expected to resolve economic uncertainty [1] Corporate News - Advanced Micro Devices (AMD) provided positive long-term growth targets for AI, while IBM announced breakthroughs in quantum computing, contributing to tech sector optimism [2] - Financial stocks such as Goldman Sachs (GS), JPMorgan Chase (JPM), and American Express (AXP) reached record highs, indicating a shift towards defensive sectors and value stocks [2] Stock Performance - Notable gainers included UnitedHealth Group (UNH) up 3.72%, Goldman Sachs (GS) up 2.84%, Cisco Systems (CSCO) up 2.73%, Nike (NKE) up 2.32%, and Caterpillar (CAT) up 1.67% [3] - Significant decliners included Chevron (CVX) down -1.83% due to a drop in WTI crude futures, and Amazon (AMZN) down -1.32% amid a mixed performance in the Nasdaq [3]

Core Insights - Alkermes (ALKS) is currently viewed as a better value opportunity compared to Illumina (ILMN) based on various financial metrics and rankings [1][7] Valuation Metrics - Alkermes has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Illumina has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for Alkermes is 16.69, significantly lower than Illumina's forward P/E of 25.86, suggesting that Alkermes may be undervalued [5] - Alkermes has a PEG ratio of 1.36, compared to Illumina's PEG ratio of 2.62, indicating a more favorable valuation relative to expected earnings growth [5] - The P/B ratio for Alkermes is 3.11, while Illumina's P/B ratio is 7.81, further supporting the notion that Alkermes is undervalued [6] - Based on these metrics, Alkermes has earned a Value grade of B, whereas Illumina has a Value grade of C [6] Earnings Outlook - Alkermes is noted for its improving earnings outlook, which enhances its attractiveness as a value investment [7]

Core Viewpoint - Investors in the Internet - Commerce sector should consider Expedia (EXPE) and MercadoLibre (MELI) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Expedia has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MercadoLibre has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that EXPE is likely experiencing a more favorable earnings outlook than MELI [3] Group 2: Valuation Metrics - EXPE has a forward P/E ratio of 18.50, significantly lower than MELI's forward P/E of 51.95 [5] - The PEG ratio for EXPE is 1.05, while MELI's PEG ratio is 1.50, indicating that EXPE may offer better value relative to its expected earnings growth [5] - EXPE's P/B ratio is 12.79 compared to MELI's P/B of 17.06, further supporting EXPE's more attractive valuation metrics [6] Group 3: Value Grades - EXPE has earned a Value grade of B, while MELI has a Value grade of D, reflecting the stronger valuation metrics and estimate revision activity for EXPE [6][7] - Overall, value investors are likely to conclude that EXPE is the superior option compared to MELI at this time [7]