Core Viewpoint - Perrigo Company plc (NYSE:PRGO) has experienced significant stock decline, reaching a new 52-week low due to weak net sales and a strategic review of its infant formula business [1][3]. Financial Performance - Perrigo's stock fell to $15.05 during intra-day trading, ultimately closing at $15.10, reflecting a 25.21% decrease [2]. - The company's net sales decreased by 4% to $1.043 billion from $1.087 billion year-over-year, impacted by lower organic sales and divestitures [2]. - Despite the sales decline, Perrigo reported a net income of $7.5 million, a recovery from a $21 million net loss in the same period last year [3]. Strategic Review - Perrigo is conducting a strategic review of its infant formula business, which may lead to a potential sale [3]. - The review aims to ensure the company's portfolio is positioned for sustainable growth and free cash flow generation, as stated by the President and CEO Patrick Lockwood-Taylor [4]. - The company acknowledges that while its infant formula operations have stabilized, the changing external environment has made it less strategic in alignment with its consumer health OTC businesses [5].

Core Insights - Diamond Hill Capital's "Large Cap Fund" reported a decline in portfolio performance, underperforming the Russell 1000 Value Index in Q3 2025 despite the Russell 3000 Index gaining 8% year-to-date [1] - Caterpillar Inc. (NYSE:CAT) was highlighted as a top contributor in the fund's performance, with a one-month return of 14.20% and a 52-week gain of 39.98% [2][3] - Caterpillar's sales and revenues increased by 10% to $17.6 billion in Q3 2025, driven by positive sentiment around its power-generation business linked to data center growth [3] Company Performance - Caterpillar Inc. closed at $569.30 per share on November 5, 2025, with a market capitalization of $267.954 billion [2] - The number of hedge funds holding Caterpillar Inc. increased from 62 to 76 in the second quarter of 2025, indicating growing interest among institutional investors [3] Investment Outlook - While Caterpillar Inc. shows potential as an investment, the fund suggests that certain AI stocks may offer greater upside potential with less downside risk [3]

Core Insights - Diamond Hill Capital's "Large Cap Fund" reported a decline in portfolio performance, underperforming the Russell 1000 Value Index in Q3 2025 despite a market rally [1][3] - The Russell 3000 Index gained 8% in Q3 2025, leading to over 14% returns for the calendar year [1] Company Highlights - FedEx Corporation (NYSE:FDX) was highlighted as a new position in the Diamond Hill Large Cap Fund's Q3 2025 investor letter [3] - FedEx's one-month return was 8.06%, but it experienced a 9.57% decline in share value over the past 52 weeks, closing at $256.10 on November 5, 2025, with a market capitalization of $60.428 billion [2][4] - The company reported a 3% year-over-year revenue increase in Q1 2026, attributed to strong performance in U.S. domestic package services [4] Investment Sentiment - FedEx is not among the top 30 most popular stocks among hedge funds, with 67 hedge fund portfolios holding its shares at the end of Q2 2025, an increase from 62 in the previous quarter [4] - While FedEx is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Core Insights - Diamond Hill Capital's "Large Cap Fund" underperformed the Russell 1000 Value Index in Q3 2025 despite a market rally, with the Russell 3000 Index gaining 8% and calendar-year returns exceeding 14% [1] Company Highlights - Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted in the investor letter, showing a one-month return of 6.16% and a 52-week gain of 2.11%, with a closing stock price of $567.64 and a market capitalization of $213.267 billion as of November 5, 2025 [2] - The company reported a revenue growth of 3% in Q2, reaching $10.85 billion, and is ranked 26th among the 30 Most Popular Stocks Among Hedge Funds, with 117 hedge fund portfolios holding its stock at the end of Q2 2025 [4] - Diamond Hill Capital initiated four new positions in Q3 2025, including Thermo Fisher Scientific Inc., indicating a belief that its stock price does not reflect its long-term growth potential [3]

Core Insights - Diamond Hill Capital's "Large Cap Fund" underperformed the Russell 1000 Value Index in Q3 2025 despite the Russell 3000 Index gaining 8% year-to-date, bringing calendar-year returns to over 14% [1] Company Performance - Lululemon Athletica Inc. (NASDAQ:LULU) experienced a one-month return of -3.40% and a significant decline of 46.85% over the last 52 weeks, closing at $167.59 per share with a market capitalization of $19.874 billion on November 5, 2025 [2] - The company faced challenges with its merchandise strategy, requiring a reset of its strategic plan and delaying expected reacceleration due to increased competition, evolving fashion trends, and tariff impacts [3] Investment Sentiment - Lululemon was not included in the list of the 30 Most Popular Stocks Among Hedge Funds, although the number of hedge fund portfolios holding the stock increased from 48 to 55 in the second quarter [4] - The investment community is leaning towards AI stocks, which are perceived to offer greater upside potential and less downside risk compared to Lululemon [4]

Core Insights - Third Avenue Management's "Third Avenue Small-Cap Value Fund" reported a return of 7.18% in Q3 2025, underperforming the MSCI USA Small-Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [1] - The fund's performance was positively influenced by contributions from a diverse range of businesses [1] Company Analysis: UniFirst Corporation (NYSE:UNF) - UniFirst Corporation's stock experienced a one-month return of -2.75% and a 52-week decline of 22.44%, closing at $151.81 per share with a market capitalization of $2.75 billion on November 5, 2025 [2] - The fund noted that UniFirst is under pressure to demonstrate its value proposition as a standalone business after rejecting an acquisition offer from Cintas Corporation earlier in the year [3] - Despite acknowledging UniFirst's potential, the fund believes that certain AI stocks present greater upside potential and lower downside risk [3]

Core Insights - Baron Focused Growth Fund reported a 4.83% appreciation in Q3 2025, underperforming the Russell 2500 Growth Index's 10.73% gain due to economic growth slowdown concerns affecting Consumer Discretionary stocks [1] - Competitive pressures have negatively impacted the valuations of some holdings within the fund [1] Company Highlights - IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a key holding in the fund, with a one-month return of 14.55% and a 66.33% increase in value over the last 52 weeks, closing at $720.21 per share on November 5, 2025, with a market capitalization of $57.51 billion [2][3] - The company is recognized as a leader in the veterinary diagnostics industry, benefiting from the increase in pet ownership during the COVID pandemic as these pets age [3] Market Context - IDEXX Laboratories, Inc. reported a 13% revenue increase, with 12% organic growth in Q3 2025 [4] - Despite the potential of IDEXX as an investment, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]

We recently published 10 Big Names Leading Wall Street Gains. Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the best-performing stocks on Wednesday. Rivian recovered by 23.36 percent on Wednesday to close at $15.42 apiece as investors cheered its revenue expansion in the third quarter of the year. In its financial statement, Rivian Automotive, Inc. (NASDAQ:RIVN) said revenues for the period jumped by 78 percent to $1.558 billion from $874 million in the same period last year on the back of higher reven ...

Group 1 - Kimberly-Clark Corporation is acquiring Kenvue, the maker of well-known brands such as Tylenol, Band-Aids, and Neutrogena, which has impacted its stock performance negatively [1] - The company has transitioned from a domestic entity to a global powerhouse, experiencing significant growth in its market presence [1] - Kimberly-Clark's product offerings include personal care and household items like diapers, wipes, feminine and adult care products, tissues, paper towels, and soaps [2] Group 2 - There is a belief that certain AI stocks may present greater upside potential and lower downside risk compared to Kimberly-Clark as an investment option [3]

We recently published 10 Stocks Lead Wall Street Downward Spiral. Oklo Inc. (NYSE:OKLO) is one of the worst-performing stocks on Tuesday. Oklo Inc. extended its losing streak to a fourth straight day on Tuesday, slashing 11.40 percent to close at $112.23 apiece, as investors unloaded portfolios ahead of the results of its earnings performance. In a notice to its investors, Oklo Inc. (NYSE:OKLO) said it would release the results of its financial and operating performance after market close next Tuesday, N ...