Market Overview & Strategy - The soft landing trade is currently in effect, but structural and fundamental improvements are needed for consumer discretionary and small-cap sectors to continue outperforming beyond a tactical trade [2] - A bullish narrative for the second half requires cyclical sectors, including consumer discretionary, to perform well and contribute to earnings growth beyond growth-led sectors [7] - The market is currently pricing in a lot of good news, and sentiment is somewhat stretched, requiring earnings season to deliver [12] - Risk-reward is slightly more to the downside than upside, but a bullish case depends on more factors contributing positively [15] Investment Opportunities - AI remains a favored growth theme, with opportunities potentially underpriced in many stocks [4] - Consider AI plays outside the US to complement structural growth names already prominent in the index [4] - Focus on companies globally that are improving quality and efficiency, regardless of the economic backdrop [9] - Companies that are users or adopters of AI tools, like SAP, represent investment opportunities as structural improvers not yet priced to perfection [10] Risks & Concerns - Consumer matters for a bullish second half, with potential issues including inventory pulled in ahead of expected tariffs and credit issues affecting working-class consumers [5][7] - Short-term caution is advised, echoing Jamie Dimon's warning about market complacency on tariffs [10][12] - While not the base case, a surprise Fed rate hike would negatively impact equity markets [11]

Core Viewpoint - The iShares S&P Mid-Cap 400 Value ETF (IJJ) is a significant investment vehicle for exposure to the Mid Cap Value segment of the US equity market, with over $7.93 billion in assets under management, making it one of the larger ETFs in this category [1]. Group 1: Mid Cap Value Characteristics - Mid cap companies, with market capitalizations between $2 billion and $10 billion, are seen as having higher growth prospects compared to large cap companies while being less risky than small cap companies, providing a balance of stability and growth potential [2]. - Value stocks, characterized by lower price-to-earnings and price-to-book ratios, typically exhibit lower sales and earnings growth rates. Historically, value stocks have outperformed growth stocks in most markets, although they may underperform during strong bull markets [3]. Group 2: Costs and Performance - The iShares S&P Mid-Cap 400 Value ETF has an annual operating expense ratio of 0.18%, which is competitive within its peer group, and a 12-month trailing dividend yield of 1.84% [4]. - The ETF aims to match the performance of the S&P MidCap 400 Value Index, which measures the mid-capitalization value sector of the U.S. equity market. As of July 10, 2025, the ETF has returned approximately 2.87% year-to-date and 16.11% over the past year, with a trading range of $103.88 to $135.52 in the last 52 weeks [7][8]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 20.30% of the portfolio, followed by Industrials and Consumer Discretionary [5]. - Among individual holdings, Us Foods Holding Corp (USFD) represents about 1.28% of total assets, with the top 10 holdings accounting for approximately 7.77% of total assets under management [6]. Group 4: Alternatives and Market Position - The iShares S&P Mid-Cap 400 Value ETF holds a Zacks ETF Rank of 2 (Buy), indicating a favorable position based on expected returns, expense ratios, and momentum [10]. - Other alternatives in the mid-cap value ETF space include the iShares Russell Mid-Cap Value ETF (IWS) with $13.53 billion in assets and an expense ratio of 0.23%, and the Vanguard Mid-Cap Value ETF (VOE) with $18.11 billion in assets and a lower expense ratio of 0.07% [11]. Group 5: Investor Appeal - Passively managed ETFs like IJJ are increasingly favored by retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12].

Group 1: Great Lakes Dredge & Dock (GLDD) - The company is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [1] - It has a Zacks Rank of 1 (Strong Buy) and a 39.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - The PEG ratio is 1.05, significantly lower than the industry average of 7.79, and it possesses a Growth Score of A [2] Group 2: Intercorp Financial Services (IFS) - This company provides financial products and services and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 2.6% over the last 60 days [2] - It has a PEG ratio of 0.36 compared to the industry average of 1.51, with a Growth Score of B [2] Group 3: European Wax Center (EWCZ) - The company operates as a personal care franchise offering wax services and proprietary skincare products [3] - It holds a Zacks Rank of 1 and has seen a remarkable 96.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - The PEG ratio stands at 0.51, well below the industry average of 3.65, and it has a Growth Score of B [3]

Core Viewpoint - The investment landscape is shifting, with traditional high-performing growth stocks losing their leading positions, prompting a search for new growth opportunities in the market [2][3]. Group 1: Uber Technologies - Uber Technologies is experiencing significant growth due to a shift in personal mobility preferences, particularly among younger generations who are less interested in car ownership and driver's licenses [4][5]. - In the previous year, Uber's drivers completed nearly 11.3 billion trips, marking a 19% increase from the prior year, indicating sustained growth potential [6]. - The company's delivery segment is also expanding rapidly, with the online food delivery market expected to grow over 17% annually through 2034 [9]. - The future potential of Uber is further enhanced by the anticipated development of self-driving vehicles, which could halve operational costs, although widespread deployment may take 10 to 20 years [10]. Group 2: Rocket Lab - Rocket Lab is positioned as a viable alternative to larger launch companies like SpaceX, utilizing its Electron rocket for smaller satellite launches, having successfully launched 232 satellites to date [13]. - The company is developing a larger Neutron rocket capable of carrying up to 13,000 kilograms, which will enable deep-space missions, including potential trips to the moon and Mars [15]. - Analysts predict Rocket Lab will achieve profitability by 2027, with the global commercial space launch market expected to grow at nearly 15% annually through 2034 [16]. Group 3: Snap - Snap has seen its daily user base grow to a record 460 million, although growth is primarily outside North America and Europe, where user numbers are declining [18][19]. - The company's revenue increased by 20% in Q1, with North American revenue up 12% year-over-year, indicating strong financial performance despite user growth challenges [20]. - Snap is evolving its platform with new tools for content creators and subscription offerings, which are expected to enhance user engagement and profitability moving forward [22][23].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Palomar (PLMR) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Palomar has a historical EPS growth rate of 54%, with projected EPS growth of 39.3% for the current year, significantly outperforming the industry average of 2.8% [5]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 45.1%, which is substantially higher than the industry average of 14.3% [6]. - Over the past 3-5 years, Palomar's annualized cash flow growth rate has been 25.5%, compared to the industry average of 11.5% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Palomar have been revised upward, with the Zacks Consensus Estimate increasing by 0.5% over the past month [9]. - This positive trend in earnings estimate revisions contributes to Palomar's Zacks Rank of 1 (Strong Buy) and a Growth Score of B [10]. Group 4: Investment Potential - The combination of strong earnings growth, impressive cash flow growth, and favorable earnings estimate revisions positions Palomar as a potential outperformer and a solid choice for growth investors [11].

Group 1: Investment Strategy - Investing in growth stocks is a proven method to enhance investment portfolios over the long term, with a suggested initial investment of $5,000 in strong, growing companies [1][2] Group 2: Steris - Steris focuses on manufacturing and selling products for patient care, particularly in infection prevention, with 71% of its revenue coming from the healthcare segment [4] - The company has experienced consistent growth in revenue and net income, with free cash flow increasing alongside net income, allowing for rising dividends, which increased from $0.52 to $0.57 per share, a 9.6% year-over-year increase [5] - Projected revenue for 2023, 2024, and 2025 is $4.54 billion, $5.14 billion, and $5.46 billion respectively, with operating income and net income also showing significant growth [6] - Steris aims for annual revenue growth in the mid-to-high single digits, driven by rising demand for medical procedures and potential mergers and acquisitions [8][9] Group 3: Mastercard - Mastercard operates a payment network facilitating secure transactions, with a strong brand presence and 3.5 billion debit and credit cards globally [10] - Revenue for 2022, 2023, and 2024 is projected at $22.2 billion, $25.1 billion, and $28.2 billion respectively, with net income increasing from $9.9 billion in 2022 to $12.8 billion in 2024 [11] - Free cash flow surged by 56.3% year over year to $2 billion, demonstrating the company's ability to generate excess cash for dividends, which increased by 15% year over year [12] - Mastercard continues to innovate, launching new payment technologies and forming partnerships to enhance its competitive edge [13][14] Group 4: Church & Dwight - Church & Dwight is a consumer products company managing key brands, with revenue growth driven by organic growth and acquisitions [15] - Revenue for 2022, 2023, and 2024 is projected at $5.38 billion, $5.87 billion, and $6.12 billion respectively, despite a slight dip in revenue and net income in the first quarter of 2025 [16] - The company has a history of consistent dividend payments, with a recent increase from $0.28375 to $0.295 per share [17] - Management believes there is significant growth potential, particularly from power brands and international expansion, with recent acquisitions supporting this growth strategy [18][19][20]

Group 1: Growth Stocks Overview - Growth stocks are experiencing significant momentum, with several small- and mid-cap stocks rising 40% or more in the past 30 days due to investor interest in innovative growth companies and the impact of AI development [1] - The Trump administration's efforts to roll back regulations are also contributing to this trend [1] Group 2: Viking Therapeutics (VKTX) - Viking Therapeutics has initiated its VANQUISH Phase 3 clinical program for VK2735, a dual GLP-1/GIP receptor agonist targeting obesity, which could transform the company into a pharmaceutical powerhouse [4] - The Phase 2 VENTURE study showed patients achieving up to 14.7% body-weight reduction after 13 weekly doses, with 95% of gastrointestinal side effects being mild or moderate [5] - The obesity market is projected to reach $150 billion by 2035, and Viking's oral formulation could significantly expand its addressable market compared to competitors requiring weekly injections [6] - Viking's comprehensive approach in trials for obesity and diabetes could support premium pricing, and if VK2735 meets its endpoints, the stock could potentially double or triple [7] Group 3: Applied Digital Corporation (APLD) - Applied Digital Corporation secured a $7 billion, 15-year hosting agreement with CoreWeave, validating its high-performance computing strategy [9] - Despite missing revenue expectations in Q3 FY2025, management anticipates significant growth as the Ellendale facility comes online starting Q4 2025 [10] - The AI boom is driving demand for high-performance computing infrastructure, positioning Applied Digital well to capture this growth [11] Group 4: Palantir Technologies (PLTR) - Palantir Technologies' stock is considered overvalued at 263 times forward earnings, yet it has risen 90% this year, indicating strong market confidence [12] - The Pentagon increased Palantir's Maven Smart System budget to $1.3 billion over four years, and the company is negotiating new contracts with various government agencies [13] - Commercial revenue grew 33% year over year to $397 million, contributing to total revenue of $884 million, a 39% increase, suggesting Palantir's software is becoming a standard for AI deployment [14] Group 5: Market Trends and Strategies - The market often overlooks companies with innovative solutions to significant problems, focusing instead on predictable business models [15] - Viking's oral alternative could attract patients averse to injectables, Applied Digital is developing AI infrastructure, and Palantir is establishing a recurring revenue stream from government contracts, all indicating a shift in market focus [16]

Group 1: Great Lakes Dredge & Dock (GLDD) - The company is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [1] - It has a Zacks Rank of 1 (Strong Buy) and a 39.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1][2] - The PEG ratio is 1.02, significantly lower than the industry average of 7.02, and it possesses a Growth Score of A [2] Group 2: Strattec Security (STRT) - The company designs, develops, manufactures, and markets mechanical and electro-mechanical locks for automotive manufacturers in the US, Canada, and Mexico [2] - It also carries a Zacks Rank of 1 and has seen a 19.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2][3] - The PEG ratio stands at 1.30 compared to the industry average of 4.04, with a Growth Score of A [3] Group 3: European Wax Center (EWCZ) - This personal care franchise offers wax services and a range of proprietary skincare products [3] - It holds a Zacks Rank of 1 and has experienced a remarkable 96.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3][4] - The PEG ratio is 0.50, much lower than the industry average of 3.26, and it has a Growth Score of B [4]

Welcome back uh to Squawkbox. Let's check the futures right now. Not a lot happening.A little bit of red across the board. Join us now with more on the markets. Bill Nyigan, Oakmark Funds uh portfolio manager.Sorry, I'm a creature of habit. I cannot intro you without mentioning that you were talking to Mark Haynes uh when the first plane hit and and um that's right. I was in the studio in Chicago uh talking about cable TV stocks or something like that and I said how long did you did they say just we we'll b ...

Core Viewpoint - Despite market uncertainties, it is a favorable time to invest in growth stocks with a cautious approach, starting with smaller investments and potentially increasing positions if stock prices decline. Group 1: Nvidia - Nvidia is the leader in AI infrastructure, with its GPUs being the primary chips for AI workloads, supported by its proprietary software platform CUDA [3][4] - Nvidia captured over 90% of the GPU market in Q1, with data center revenue growing more than 9 times in two years, and demand for its new Blackwell chips is accelerating [4][5] - Nvidia is positioned as a key investment in AI infrastructure despite potential risks from data center spending slowdowns [5] Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is crucial in manufacturing advanced AI chips, holding significant capabilities that few companies possess [6][7] - Nearly 60% of TSMC's business comes from high-performance computing chips, with strong demand continuing [7] - TSMC is raising prices to offset near-term margin pressures and is expected to be a long-term winner in the AI sector [8] Group 3: Pinterest - Pinterest has transformed by embracing AI, leading to increased engagement and improved average revenue per user (ARPU) [9][10] - The company’s AI-driven solutions are enhancing user engagement and helping advertisers run more effective campaigns [10] - Despite potential economic slowdowns, Pinterest has strong growth prospects due to its large user base [11] Group 4: Eli Lilly - Eli Lilly is benefiting from the growth of GLP-1 drugs, with Mounjaro and Zepbound generating $6.1 billion in revenue last quarter [12] - Zepbound's revenue surged from $517 million to $2.3 billion year-over-year, indicating strong momentum [12] - The company’s next-generation oral GLP-1 drug, orforglipron, shows promise and has advantages over existing injectable drugs [13][14] Group 5: e.l.f. Beauty - e.l.f. Beauty is entering a growth phase following its $1 billion acquisition of Rhode, which generated $212 million in sales despite limited product offerings [15][16] - The acquisition is timely as e.l.f.'s growth slowed, and Rhode's expansion into Sephora presents a significant opportunity [16][17] - e.l.f. has strong retail relationships that can facilitate Rhode's distribution growth, making it an attractive investment opportunity [17]