Veteran analyst Tom Lee has a reputation for calling turning points long before the rest of Wall Street catches on. That said, with the big banks having weighed in, Lee just dropped his S&P 500 target, betting once again that the crowd is too cautious. Given the current stock market setup, it’s a call that cuts directly against today’s “too far, too fast” narrative following years of oversized gains, but Lee feels the skepticism itself is part of the setup. Additionally, with the Fed delivering 175 basi ...

Core Insights - The S&P 500 Index is reaching new highs, prompting advisors to seek ways to maintain equity exposure while managing valuation risks. Free cash flow (FCF) is highlighted as a crucial tool for identifying high-quality investment opportunities in the current market [1][2]. Group 1: Importance of Free Cash Flow - Free cash flow is essential for cutting through market noise characterized by high valuations and concentration in mega-cap stocks, particularly in the context of rising AI-related capital expenditures [2][5]. - Companies with strong and sustainable cash generation are positioned for long-term growth, enhancing portfolio resiliency [2]. - Historical trends show that growth and value investing come in cycles, with current allocations being 23% towards growth and 15% towards value [3]. Group 2: FCF Mechanics and Evaluation - The evaluation of FCF involves analyzing a company's cash flow relative to its enterprise value, aiming to identify companies with attractive valuations based on profitability [8][16]. - Key metrics include FCF yield and return on invested capital (ROIC), which provide a comprehensive measure of profitability [8]. Group 3: FCF ETF Strategies - Victory Capital offers several ETFs focused on FCF, including: - VictoryShares Free Cash Flow Growth ETF (GFLW), which targets U.S. companies with high FCF profitability [9]. - VictoryShares Free Cash Flow ETF (VFLO), focusing on large-cap U.S. stocks with favorable growth prospects [9]. - VictoryShares Small Cap Free Cash Flow ETF (SFLO), investing in profitable small-cap companies with high FCF yields [9]. - International options include VictoryShares International Free Cash Flow ETF (IFLO) and VictoryShares International Free Cash Flow Growth ETF (GRIN) [10]. Group 4: FCF Flexibility and Market Resilience - A FCF strategy is beneficial during economic slowdowns, as companies with substantial cash reserves can better withstand market downturns [11]. - The emphasis on diversifying portfolios with a focus on free cash flow is recommended for navigating various market conditions [12].

Group 1 - The company has recently purchased shares of Micron at $243, indicating a positive outlook despite a current pullback of 5% in stock price, presenting a buying opportunity [1][2] - Micron's upcoming earnings report is anticipated to be positive, contributing to the excitement around the memory sector [2] - Applied Materials is viewed as a strong player in the chip industry, although its performance has lagged compared to top-tier competitors [2] Group 2 - The discussion highlights the significance of AI and its architects, including notable figures like Zuckerberg and Elon Musk, emphasizing their influence on the stock market [3][4] - There is a recognition of the potential risks associated with reliance on these key individuals in the tech industry, suggesting that any misstep could have broader implications [4][5] - The future of AI is seen as transformative, particularly in sectors like healthcare, with expectations of increased accessibility and reduced costs [7]

Core Insights - Coinbase Global (COIN) is expected to have a strong performance in 2026, building on the momentum from an active 2025 while executing its long-term strategic roadmap [1] Group 1: Strategic Developments - COIN is integrating centralized and decentralized ecosystems by launching DEX trading for Solana access, aiming for a unified centralized-DeFi experience [1] - The company is strengthening ties between traditional finance and digital assets, collaborating with major banks like JPMorgan, Citi, and PNC, and discussing pilot programs involving stablecoins and custody [2] - COIN completed nine acquisitions in 2025 to expand capabilities and accelerate product development, with a focus on international growth, including re-entering the Indian market through an investment in CoinDCX [3][7] Group 2: Future Focus Areas - For 2026, COIN's strategic focus includes real-world asset (RWA) perpetuals, specialized exchanges, next-generation DeFi infrastructure, and the integration of AI and robotics [4][7] Group 3: Market Performance - COIN shares have gained 10.7% year to date, outperforming the industry [6] Group 4: Valuation and Estimates - COIN has a price-to-earnings ratio of 44.93, significantly above the industry average of 24.32, indicating an expensive valuation [8] - The Zacks Consensus Estimate for COIN's fourth-quarter 2025 EPS has decreased by 2 cents, while the first-quarter 2026 estimate remains unchanged [9] - The consensus estimates for COIN's 2025 and 2026 revenues indicate year-over-year increases, but the EPS for 2026 is expected to decline [10]

Summary of a.k.a. Brands Holding Conference Call Company Overview - **Company**: a.k.a. Brands Holding (NYSE: AKA) - **Brands**: Operates a portfolio of consumer fashion brands including Princess Polly, Petal & Pup, Culture Kings, and Minimal [2][4] Key Points and Arguments Brand Performance - **Princess Polly**: Represents about half of the company's sales and has maintained strong consumer engagement despite inventory constraints [4][10] - **Petal & Pup**: Focused on the 25 to 40-year-old demographic, showing strong performance in event and occasion dressing, particularly during Nordstrom promotions [17][18] - **Culture Kings**: Streetwear brand focusing on experiential retail, has improved gross margin and profitability through a test and repeat model [21][22] Marketing and Customer Engagement - **Omnichannel Strategy**: Brands are leveraging multiple marketing channels, including TikTok, to engage customers and drive sales [6][8] - **Physical Retail Expansion**: Opened 11th and 12th stores, with plans for 8 to 10 more in 2026, enhancing customer experience and lifetime value [9][10] - **Wholesale Presence**: Expanding into Nordstrom and ASOS, which is expected to introduce new customers and build brand awareness [14][16] Financial Performance - **Gross Margin**: Achieved a 110 basis points expansion, reaching the highest level in five years, attributed to supply chain diversification and price increases [42][43] - **EBITDA**: Reported at $7 million, with year-to-date cash flow ahead of last year, indicating strong operational performance [46] - **Inventory Management**: Aiming for inventory growth to be lower than sales growth, with improvements in inventory turns expected [49][50] Supply Chain and Operational Challenges - **Supply Chain Transition**: Faced temporary delays in newness and out-of-stock issues, but inventory levels have improved heading into the holiday season [36][40] - **Diversification Efforts**: Focused on diversifying production out of China and negotiating pricing concessions with suppliers [38][39] Future Outlook - **Growth Strategy**: Plans to continue expanding physical stores, enhancing wholesale opportunities, and leveraging AI for operational efficiencies [52][53] - **Leverage Reduction**: Progress in reducing leverage and refinancing credit facilities to support strategic priorities [51] AI and Technology Integration - **AI Adoption**: Implementing AI for image editing, product descriptions, and customer experience workflows, which is expected to enhance creativity and margins over time [33][34] Additional Important Insights - **Cultural Marketing**: Engaging in cultural events (e.g., F1, WWE) to connect with customers and drive brand heat [24][25] - **Customer Engagement**: Noted that physical stores create a social occasion for customers, enhancing brand loyalty and engagement [10][11] This summary encapsulates the key insights from the a.k.a. Brands Holding conference call, highlighting the company's strategic focus on brand performance, marketing, financial health, operational challenges, and future growth opportunities.

Core Insights - Fidelity offers three ETFs that focus on quality, dividends, and emerging markets, which are expected to perform well in 2026 [1][4]. Group 1: Market Trends - As 2025 concludes, equities remain dominant, led primarily by a narrow group of technology and communication services stocks, particularly the "Magnificent Seven" [2]. - The AI boom has significantly contributed to market gains, but signs indicate a potential rotation in market leadership [2][3]. - Various sectors, including cyclicals, healthcare, and international stocks, have shown strength over the past six to twelve months, suggesting a broader investment opportunity [3]. Group 2: Fidelity Quality Factor ETF - The Fidelity Quality Factor ETF (FQAL) targets large, financially healthy companies based on free cash flow margin, cash flow stability, and return on invested capital [6]. - The ETF's top five holdings include Nvidia, Apple, Microsoft, Alphabet, and Broadcom, indicating a strong tech focus [6]. - FQAL is positioned to perform well regardless of market conditions, providing exposure to tech while maintaining a high-quality portfolio [8]. Group 3: Fidelity High Dividend ETF - The Fidelity High Dividend ETF (FDVV) has performed well due to its significant tech holdings, despite its name suggesting a pure high-yield focus [9]. - The ETF employs a strategy that scores stocks based on dividend yield and market value, leading to top holdings in major tech companies [9][10]. - Similar to FQAL, FDVV's tech exposure can benefit from continued market momentum, while its allocations to cyclicals and defensive sectors offer protection against downturns [11]. Group 4: Fidelity Emerging Markets Multifactor ETF - The Fidelity Emerging Markets Multifactor ETF (FDEM) focuses on companies with attractive valuations, strong quality profiles, positive momentum, and low volatility, addressing concerns about investing in emerging markets [13][14]. - The IMF projects a 4% growth for emerging markets in 2026, compared to 2.1% for the U.S. economy, indicating a favorable outlook for FDEM [16]. - FDEM's price/earnings (P/E) ratio of 13 is significantly lower than that of the S&P 500, suggesting that emerging markets are currently undervalued [16].

and Kevin Hanks at the CBOE the pre-bell playbook joining us now live from there. Good morning. So I was just saying how it was a record setting day.I mean intraday we saw the Dow hitting highs and you know stocks took off right after the Fed meeting on Wednesday and managed to clock in some wins. What are your thoughts this morning. Good morning Kevin. >> Good morning Nicole.You know, I think this is an interesting market to pay attention to because it seems to be the revenge of the 493. It's the equal wei ...

EPS Matters Today With third-quarter earnings season in the books, it's safe to say it was a productive one as earnings per share growth among S&P 500 member firms reached 12.9%, easily topping the 8% increase expected by analysts. Should that trend continue, and some experts believe it will, advisors and investors may want to evaluate the WisdomTree U.S. LargeCap Fund (EPS). The $1.35 billion EPS, which turns 19 years old in February, follows the WisdomTree U.S. LargeCap Index – an earnings-weighted collec ...

Core Viewpoint - The Federal Reserve's recent forecasts indicate a more optimistic outlook for economic growth, with revisions suggesting growth increases for 2025, 2026, and 2027 by 710 basis points, while inflation expectations have been marked down by 30 basis points, reflecting a dovish stance on monetary policy [2][3][10]. Economic Outlook - The Fed's committee appears to embrace a supply-side perspective, suggesting that growth can occur without significant inflation risks, which contrasts with previous hawkish expectations [3][10]. - The unemployment rate has shown minimal change, remaining stable despite a rise from 3.5% to nearly 4% over the past three years, indicating underlying productivity changes and jobless growth [8][9]. Employment Insights - The employment landscape has weakened over the past three years, with extraordinary growth rates observed, leading to a rise in the unemployment rate, which suggests a disconnect between job creation and economic growth [8][9]. - The Fed's recognition of these dynamics in its latest forecast is seen as positive, as it indicates a shift away from a demand-driven growth perspective that could lead to restrictive monetary policies [10]. Future Monetary Policy - There is anticipation of a more dovish approach from the Fed moving forward, with expectations that the new committee will focus on supply-side economic strategies rather than being overly concerned with inflationary pressures [10][15]. - The composition of the Fed committee is expected to evolve, with potential new members likely to support a more balanced view on economic growth and inflation [12][15].

Group 1 - Unilever PLC (NYSE:UL) is recognized as one of the best ADR stocks, being one of the largest consumer goods companies globally [1] - The company has recently completed the divestment of its ice cream brand Magnum and allocated €1.5 billion for mergers and acquisitions, focusing on the US market [1] - In the fiscal third quarter, Unilever reported an underlying sales growth of 3.9% and a volume growth of 1.5%, with expectations of 3% to 5% underlying sales growth for the full year 2025 [2] Group 2 - The company experienced strong performance in emerging markets, particularly in Indonesia and China, although the ice cream business showed concerning results [2] - Jefferies raised its share price target for Unilever from 3,800 GBp to 4,000 GBp while maintaining an Underperform rating due to skepticism about achieving a 2.5% volume growth [2]