Pilgrim's Pride (PPC) Q2 2025 Earnings Call July 31, 2025 09:00 AM ET Company ParticipantsAndrew Rojeski - Head - Strategy, IR & SustainabilityFabio Sandri - President & Global CEOMatthew Galvanoni - CFOBenjamin Theurer - Managing DirectorPooran Sharma - Managing DirectorHeather Jones - FounderPeter Galbo - Director - Head of US Consumer Staples Equity ResearchPriya Gupta - Assistant VPConference Call ParticipantsAndrew Strelzik - Restaurant AnalystGuilherme Palhares - Senior Equity Research AnalystOperator ...

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure:I/we have a beneficial long position in the shares of PFFA either ...

Core Insights - Annaly Capital Management (NLY) reported second-quarter 2025 results with earnings exceeding the Zacks Consensus Estimate, demonstrating resilience amid tariff-related uncertainties and mortgage market volatility [1][4] - The company achieved a positive economic return of 0.7% for the seventh consecutive quarter, supported by its agency, residential credit, and mortgage servicing rights strategies [3] Financial Performance - The average yield on interest-earning assets was 5.42%, an increase from 5.17% in the prior-year quarter [1] - The average net interest spread rose to 1.47% from 1.24% year-over-year, while the net interest margin was 1.71%, up from 1.24% in the same quarter of 2024 [2] - Net interest income (NII) surged to $273.2 million in Q2 2025, compared to $53.6 million in the prior-year quarter [6] - Book value per share decreased to $18.45 as of June 30, 2025, down from $19.25 a year earlier [3] Market Conditions - The Federal Reserve's interest rate cuts have led to a slight decline in mortgage rates, with the average 30-year fixed-rate mortgage at 6.74% as of July 24, 2025, down from 6.78% a year prior [5] - Housing affordability challenges are easing, contributing to increased loan demand, which positively impacted NLY's financials [6] Portfolio Strategy - Annaly's diversified capital allocation includes residential credit, mortgage servicing rights, and agency mortgage-backed securities, totaling an investment portfolio of $89.5 billion [8][10] - The company is focusing on acquiring newly originated mortgage servicing rights to enhance its MSR business, which tends to increase in value as interest rates rise [11] Dividend Profile - Annaly has a strong dividend yield of 13.5%, significantly higher than the industry average of 12.4%, with a payout ratio of 99% [14][17] - The company raised its dividend by 7.7% in March 2025, reflecting confidence in its cash flow and growth prospects [17] Stock Performance - Over the past six months, Annaly shares have increased by 8.4%, outperforming the industry average of 2.8% and peers like AGNC Investment and Arbor Realty Trust [20][21] - The Zacks Consensus Estimate indicates substantial year-over-year growth in sales of 463.4% for 2025 and 29.2% for 2026 [24] Investment Outlook - Annaly is positioned to deliver stable, risk-adjusted returns due to improving interest spreads, a diversified portfolio, and solid liquidity reserves [30] - The company is trading at a forward P/E multiple of 6.97X, lower than the industry average of 7.98X, suggesting an attractive valuation [31]

Group 1 - Eric specializes in real assets within a Canadian bank, indicating a focus on tangible investments such as property and infrastructure [1] - He holds a Master's degree in Financial Economics and is a CFA charterholder, showcasing a strong educational background in finance [1] - Eric has a deep understanding of the Canadian investment universe, particularly in real assets, financials, and insurance sectors [1]

Group 1 - The individual has nearly two decades of experience in the logistics sector and a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - Since 2014, the individual has been trading on the Philippine stock market, initially investing in blue-chip companies and later diversifying across various industries and market capitalizations [1] - In 2020, the individual entered the US market after gaining experience through a relative's trading account, leading to the decision to open their own account and write for Seeking Alpha to share knowledge [1] Group 2 - The individual has holdings in US banks, hotels, shipping, and logistics companies, and has been using analyses from Seeking Alpha to compare with their own research in the Philippine market [1]

Group 1 - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, with a focus on banks, telecommunications, logistics, and hotels [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings in banks and properties [1] - The investment approach has evolved from focusing solely on blue-chip companies to a more diversified portfolio across various industries and market capitalizations [1] Group 2 - The entry into the US market occurred in 2020, following a period of learning and analysis through platforms like Seeking Alpha [1] - The investor has holdings in US banks, hotels, shipping, and logistics companies, indicating a strategic approach to portfolio diversification [1] - The comparative analysis between the US and Philippine markets has been a key aspect of the investment strategy, enhancing market awareness and decision-making [1]

Company Overview - UDR Inc. is a premier multifamily real estate investment trust (REIT) set to announce its second-quarter 2025 results on July 30, with expectations of revenue growth but unchanged funds from operations (FFO) per share [1][11] - In the last reported quarter, UDR achieved an FFO as adjusted per share of 61 cents, aligning with the Zacks Consensus Estimate, reflecting year-over-year growth in same-store net operating income (NOI) due to higher occupancy and effective blended lease rates [2][11] Financial Performance - UDR's FFO as adjusted per share has met or surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 0.41% [3] - For the upcoming quarter, UDR is expected to report revenues of $422.24 million, a 2.15% year-over-year increase, while FFO per share is anticipated to remain steady at 62 cents [10][11] Market Conditions - The U.S. apartment market showed resilience in Q2 2025, absorbing over 227,000 units, surpassing previous peak leasing surges despite economic uncertainties [4] - National occupancy rates increased to 95.6%, up 140 basis points year-over-year, while rent growth remained muted at 0.19% in June [5] Supply and Demand Dynamics - Over 535,000 units were completed in the past year, with approximately 108,000 delivered in Q2 2025, indicating a historically elevated supply that the market has managed to absorb [6] - Tech-driven markets like San Francisco, San Jose, Boston, and New York are gaining momentum, while supply-heavy markets such as Austin, Phoenix, and Denver are experiencing significant rent cuts [7] Strategic Positioning - UDR's geographically diversified portfolio of A/B quality properties across urban and suburban markets positions the company to benefit from stable operating cash flows and limit concentration risks [8][9] - The company is leveraging technological initiatives and process enhancements to improve operational resiliency, which is expected to provide a competitive edge [9] Projections and Analyst Sentiment - Same-property NOI is projected to grow by 4.9% in Q2 2025, supported by tech-driven upgrades and operational enhancements [10][11] - The Zacks Consensus Estimate for quarterly FFO as adjusted per share has remained unchanged at 62 cents over the past three months, indicating a lack of analyst confidence in a surprise performance [12][13]

Core Insights - The article outlines a strategy for building a $100,000 dividend portfolio, emphasizing the importance of selecting companies with competitive advantages and strong financials to achieve attractive Dividend Yield and Dividend Growth [1] - The focus is on creating a well-diversified portfolio across various sectors to minimize volatility and risk, while also incorporating companies with a low Beta Factor [1] - The investment approach prioritizes total return, which includes both capital gains and dividends, rather than focusing solely on dividends [1] Investment Strategy - The portfolio construction aims to generate additional income through dividends, combining high Dividend Yield and Dividend Growth companies [1] - A blend of ETFs and individual companies is suggested to enhance diversification and risk reduction [1] - The selection process for high dividend yield and growth companies is meticulously curated to maximize returns while considering all potential income sources [1]

Core Viewpoint - Realty Income (O) is recognized for its reliable dividend payments, having raised its dividend for 30 consecutive years and recorded 111 straight quarterly hikes, with a current yield of 5.7% [1][7] Dividend and Performance - Realty Income's stock has increased over 5% year-to-date, outperforming peers like Agree Realty and NNN REIT, but slightly lagging behind the broader S&P 500 composite [2] - The company has a strong dividend history, supported by robust cash flows from over 15,600 properties across various regions, with 91% of rental income coming from non-discretionary sectors [5][6] Growth Strategy - Realty Income is diversifying its portfolio beyond retail, entering sectors like gaming and data centers, which are expected to drive long-term growth [8][9] - The company aims to reach $4 billion in total investments by year-end 2025, with a focus on the $14 trillion global net lease market [9] Financial Health - Realty Income maintains a solid balance sheet with a debt load of $27.6 billion and has received credit ratings of A3/A- from Moody's and S&P [5][10] - Interest expenses rose 11.5% year-over-year to $268.4 million, indicating pressure from a high-rate environment [10] Market Position and Valuation - Realty Income is trading at a forward price-to-FFO of 12.97X, below the retail REIT industry average of 14.41X, and at a slight premium to NNN [12] - Consensus estimates for adjusted funds from operations (AFFO) per share have seen a marginal decline, reflecting a somewhat bearish trend [11] Conclusion - Realty Income is viewed as a dependable option for income-focused investors, supported by its strong dividend history and strategic expansion into resilient asset classes [13] - However, macroeconomic challenges and elevated interest expenses may pose near-term risks, suggesting a cautious approach for prospective investors [14]

Group 1: Gold Market Overview - Gold has outperformed the S&P 500 over the past 1-year, 3-year, and year-to-date periods, driven by geopolitical shifts and concerns over fiat currency stability [1] - Central bank demand, particularly from BRICS nations, is contributing to record levels of gold accumulation as these countries diversify away from US dollar-denominated assets [6] - Geopolitical tensions, including the Russia–Ukraine war and US-China relations, are increasing macro uncertainty, further supporting gold as a hedge against systemic risk [7][8] Group 2: Technical Analysis of Gold - Gold is forming a tightening bull flag pattern, with a potential breakout above $317.50 on GLD (or $3,475 in gold futures) signaling a major upward move [10] - The current price action indicates strong buying interest, suggesting that gold is on the verge of a significant breakout [2][10] Group 3: Top Gold Mining Stocks - Aris Mining Corporation is highlighted as a compelling opportunity, trading at 5.8x forward earnings with projected sales growth of 56% this year and earnings growth of 265% [12][13][14] - Agnico Eagle Mines, with a Zacks Rank 1, is noted for its operational consistency and projected annual EPS growth of 20.8% over the next three to five years, currently testing a breakout level [15][16][17] - Kinross Gold, also holding a Zacks Rank 1, is trading at 12.7x forward earnings with expected EPS growth of 21.2% over the next three to five years, presenting a GARP opportunity [18][22] - AngloGold Ashanti PLC has surged over 120% year-to-date, reflecting strong investor confidence and operational performance, also holding a Zacks Rank 1 [24][25][26] Group 4: Investment Outlook - The outlook for gold remains constructive, with prices nearing a technical breakout and strong global demand driven by macro trends [27][29] - Gold stocks are positioned as an attractive entry point for investors seeking diversification and exposure to rising commodity trends [29]