Let's get to the broader markets. Our next guest is bullish about the new year. Says worries about tech's high valuations are misplaced.Joining us here this morning at Post9 is Tally Leisure, chief market strategist at the Wealth Consulting Group. Nice to have you in T. Welcome.>> Thank you. Good to be here. At least to have you, Dad.>> You're uh you're pretty constructive on next year. >> Yes. And I'm glad we're sitting down for that conversation because we see the S&P 500 achieving 85 8500 >> 8500 driven ...

Core Insights - The article discusses the current trends and performance metrics in the investment banking sector, highlighting key financial indicators and market movements. Group 1: Industry Trends - The investment banking industry is experiencing a shift towards digital transformation, with firms increasingly adopting technology to enhance operational efficiency and client engagement [1]. - Recent data indicates a significant increase in M&A activity, with a year-over-year growth of 25% in deal volume, reflecting a robust market environment [1]. Group 2: Company Performance - Major investment banks reported a collective revenue increase of 15% in the last quarter, driven by strong trading performance and advisory services [1]. - Specific firms have outperformed their peers, with one leading bank achieving a 30% increase in net income, attributed to strategic acquisitions and cost management initiatives [1].

Core Insights - The Zacks Domestic Auto industry is poised for growth driven by affordable electric vehicles (EVs) and proposed tax incentives, despite economic challenges and rising tariffs [1][3][4] Industry Overview - The Zacks Domestic Auto industry encompasses companies involved in the design, manufacturing, and retailing of various vehicles, including passenger cars, trucks, and electric vehicles [2] - The industry is highly consumer cyclic and plays a significant role in employment and innovation, particularly in electric and autonomous vehicle development [2] Factors Shaping the Industry's Prospects - The introduction of more affordable EVs, priced at $35,000 or below, is expected to increase consumer adoption, countering the impact of higher tariffs on foreign competitors [3] - Proposed tax incentives, allowing buyers of U.S.-assembled vehicles to deduct up to $10,000 in interest on auto loans, are anticipated to stimulate demand for new vehicles [4] Market Performance - The Domestic Auto industry has underperformed compared to the broader auto sector and the S&P 500, with a return of 6.3% over the past year, while the sector and S&P 500 grew by 7.1% and 14.5%, respectively [10] Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 53.06X, significantly higher than the S&P 500's 18.63X and the sector's 25.8X, indicating a premium valuation compared to historical levels [13] Company Highlights - **General Motors (GM)**: Holds a 16.5% share of the U.S. auto market, with strong demand for its brands and upcoming product launches expected to drive growth. GM has a Zacks Rank 1 (Strong Buy) and positive earnings revisions for 2025 and 2026 [14][15] - **Polaris Inc. (PII)**: Reported $1.8 billion in revenues for Q3 and expects adjusted sales of $6.9 billion to $7.1 billion for 2025. PII also holds a Zacks Rank 1, with significant earnings surprises in recent quarters [20][21] - **Blue Bird Corporation (BLBD)**: Focuses on school buses and alternative fuel applications, projecting fiscal 2026 revenues of $1.5 billion and continued growth. BLBD has a Zacks Rank 2 (Buy) and positive earnings revisions for 2026 [23][24]

Only a handful of major companies have yet to report their results for the last quarter, and AI leader Oracle (ORCL) is one of them. The Q3 earnings season has largely brought solid results. As of Dec. 5, 99% of S&P 500 companies have reported, according to FactSet data, and analysts estimate a 13.4% jump in earnings per share during the third quarter. If it holds, that figure would mark the fourth straight quarter of double-digit earnings growth and an acceleration from the 12% earnings growth rate repor ...

Valuation and Market Position - Altria Group, Inc. is trading at a forward 12-month price-to-earnings (P/E) ratio of 10.46, which is below the Tobacco industry's average of 13.89, the Consumer Staples sector's 16.02, and the S&P 500's 23.46, indicating an attractive valuation [1] - Compared to major peers, Altria remains discounted, with Philip Morris International Inc. at 18.12, Turning Point Brands, Inc. at 24.78, and British American Tobacco p.l.c. at 11.82 [1] Stock Performance - Over the past month, Altria's stock rose 1.1%, outperforming Turning Point Brands' 0.9% gain and Philip Morris' 3% decline, while British American Tobacco led with a 3.4% increase [6] - The Consumer Staples sector and the tobacco industry saw declines of 0.3% and 1.2%, respectively, while the S&P 500 gained 0.8%, highlighting Altria's strong positioning [7] Financial Fundamentals - In Q3 2025, Altria's adjusted earnings per share (EPS) increased by 3.6% to $1.45, with year-to-date EPS up 5.9%, driven by higher adjusted operating companies income (OCI) and a lower share count [11] - The smokeable products segment maintained impressive adjusted OCI margins of 64.4%, supported by effective pricing strategies [11] Product Strategy - Marlboro's premium-segment share expanded to 59.6%, reinforcing Altria's pricing power and brand strength, while the Basic brand gained share without detracting from Marlboro [12] - Altria's oral tobacco portfolio, particularly the on! brand, showed growth with a nearly 1% increase in volume and adjusted OCI margins expanding to 69.2% [13] Strategic Initiatives - Altria's collaboration with KT&G aims to enhance international modern oral expansion and explore operational efficiencies in traditional tobacco [14] - The company has consistently returned cash to shareholders, marking its 60th dividend increase in 56 years, which supports its stability and long-term growth [14] Volume Challenges - Altria faces significant volume pressures, with cigarette shipment volumes falling 8.2% in Q3 and 10.6% year-to-date, attributed to macroeconomic strains and competition from unregulated flavored disposable e-vapor products [15] Earnings Estimates - The Zacks Consensus Estimate for Altria's earnings has seen mixed revisions, with the 2025 EPS estimate increasing by 1 cent to $5.44, while the 2026 estimate decreased by 1 cent to $5.56 [18] - Altria is projected to deliver solid earnings growth of 6.3% in 2025 and 2.3% in 2026, despite modest adjustments [18]

Core Insights - Phibro Animal Health (PAHC) shares have increased by 59.6% this year, significantly outperforming the industry and the S&P 500 [1][2] Company Performance - The company holds a Zacks Rank 1 (Strong Buy) and is benefiting from the strong performance of its Animal Health portfolio, particularly in vaccines and emerging markets [2][4] - Phibro markets around 800 product lines across approximately 90 countries, focusing on food and companion animals, and is expanding its product offerings in the companion animal sector [3][4] Revenue Growth - The surge in share price is attributed to strong traction in the Animal Health business, with medicated feed additives (MFA) revenues growing by 81% in Q1 of fiscal 2026, bolstered by the integration of Zoetis' MFA business [4][9] - Vaccine sales increased by 25% year over year in Q1 of fiscal 2026, with management identifying vaccines as a key growth driver [5][9] Global Expansion - Phibro's sales in Europe, the Middle East, and Africa rose by 44.4%, while Asia Pacific sales surged by 101.1% in Q1 of fiscal 2026, reflecting the company's successful global expansion strategy [6][9] Financial Estimates - The Zacks Consensus Estimate predicts a 32.1% increase in earnings per share (EPS) for fiscal 2026, reaching $2.76, and a 6.2% increase for fiscal 2027, reaching $2.93 [11] - Revenues for fiscal 2026 are projected to grow by 13.1% to $1.47 billion, with fiscal 2027 revenues expected to reach $1.51 billion, indicating a 2.8% increase [11]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Donaldson (DCI) is highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 13%, with projected EPS growth of 9.8% this year, significantly outperforming the industry average of 5.6% [4] Group 2: Financial Metrics - Donaldson's asset utilization ratio (sales-to-total-assets ratio) is 1.25, indicating that the company generates $1.25 in sales for every dollar in assets, compared to the industry average of 0.74 [5] - The company's sales are expected to grow by 3.4% this year, while the industry average is stagnant at 0% [6] Group 3: Earnings Estimates - There is a positive trend in earnings estimate revisions for Donaldson, with the current-year earnings estimates increasing by 0.8% over the past month [7] - The company has earned a Growth Score of B and holds a Zacks Rank 2 due to these positive earnings estimate revisions, positioning it well for potential outperformance [9]

Core Insights - The company has provided guidance indicating a 4% growth in EBITDA from 2025 to 2026 and an 8% growth in earnings [2] - The company expects to end the next year with a debt to EBITDA ratio of 30.8x, which is at the lower end of the 3.5 to 4.5x range [2] - Expansion capital expenditures (CapEx) have been raised from approximately $2.5 billion per year to over $3 billion per year for the next few years, driven by project opportunities and timing of spending [2] - The company sees significant opportunities in the midstream space, anticipating strong growth in EBITDA and earnings along with numerous investment opportunities [2]

All right, Drew, we got to start with that Nvidia news. Does this change your view of the AI trade. Earlier this week, as I mentioned, we saw Edard Denny say, "Go underweight Mag 7 and a lot of people trying to rotate their portfolios." The idea of opening up China not only to Nvidia, but maybe other names.Does that change your perspective. >> Not really to be honest with you, because this this area, the Mag 7, the AI trade, it's all been about upward revisions. And look, a lot of these numbers came out of ...

2024 was peak MAG7 earnings growth, peak tech earnings growth. In fact, that earnings growth slowed a touch into 2025. But because we had so much uncertainty emerge with respect to tariffs, where were interest rates going, slow economic conditions, the rest of the index really didn't put up much earnings acceleration.That's expected to change in 2026. The analyst consensus is thinking, look, the Fed's going to reduce interest rates. We're going to get some tax refunds coming in 2026.Maybe we'll have a littl ...