Core Insights - Credo Technology Group Holding Ltd (CRDO) achieved a record-setting quarter in Q2 of fiscal 2026, with a non-GAAP gross margin of 67.7%, exceeding guidance and improving sequentially by 11 basis points [1][2] - The company reported a 20% sequential revenue increase and a remarkable 272.1% year-over-year growth, driven by strong demand in its Active Electrical Cable (AEC) and Integrated Circuit (IC) segments [2][9] - Credo's diversified growth strategy includes five high-growth connectivity pillars, targeting a total addressable market expected to exceed $10 billion in the coming years [3][4] Financial Performance - Non-GAAP operating margin reached 46.3%, expanding 319 basis points from the previous quarter, indicating effective management of operating expenses relative to revenue growth [2] - Non-GAAP net margins for Q2 were 47.7%, showcasing the company's efficient scaling despite ongoing investments in optical and system-level products [2] - For Q3 fiscal 2026, management anticipates a revenue growth of approximately 27% sequentially, with gross margins projected to moderate to a range of 64-66% [5] Market Position and Competition - Credo's AECs are becoming the standard for inter-rack connectivity, with expectations for significant growth in optical DSP deployments, particularly in 50-gig and 100-gig per lane designs [4] - The company faces competition from semiconductor giants like Broadcom and Marvell Technology, which are also experiencing strong growth in their respective markets [6] Valuation and Stock Performance - CRDO is currently trading at a forward 12-month Price/Sales ratio of 27.68, significantly higher than the Electronic-Semiconductors sector average of 7.9 [11] - Over the past three months, CRDO shares have increased by 22.6%, outperforming the Electronics-Semiconductors industry growth of 15.9% [12] - The Zacks Consensus Estimate for CRDO's earnings for fiscal 2026 has been revised upward in the last 60 days, indicating positive market sentiment [13]

Core Viewpoint - Paycom Software reported lower-than-expected Q3 2025 earnings, with revenues increasing year-over-year but missing earnings estimates, leading to questions about future performance [3][4][10]. Financial Performance - Paycom reported non-GAAP earnings of $1.94 per share, missing the Zacks Consensus Estimate of $1.96, but showing a 16.2% increase year-over-year [3]. - Revenues reached $493.3 million, exceeding the consensus mark of $492.4 million, and reflecting a 9.1% year-over-year growth driven by sales momentum, international expansion, and AI integration [4]. - Recurring revenues, which constitute 94.6% of total revenues, improved by 10.6% to $466.5 million, surpassing estimates [5]. - Adjusted gross profits increased by 11.9% to $411.3 million, with an adjusted gross margin expanding by 210 basis points to 83.4% [6]. Cash Flow and Balance Sheet - As of September 30, 2025, Paycom had cash and cash equivalents of $375 million, down from $532.2 million in the previous quarter, and no debt [7]. - In Q3, the company generated operating cash flow of approximately $177.8 million, paid out $21.1 million in dividends, and repurchased $223.4 million of its common stock [8]. Guidance and Estimates - Paycom reiterated its revenue guidance for 2025, forecasting revenues between $2.045 billion and $2.055 billion, with recurring revenues expected to grow by 10% year-over-year [10]. - The company anticipates adjusted EBITDA between $872 million and $882 million, indicating an EBITDA margin of approximately 43% at the midpoint [10]. - Recent estimates have shown a downward trend, with a Zacks Rank of 3 (Hold) indicating expectations for an in-line return in the coming months [11][13]. Industry Context - Paycom operates within the Zacks Internet - Software industry, where competitor Pinterest reported revenues of $1.05 billion for the last quarter, reflecting a year-over-year increase of 16.8% [14].

We recently published 10 Stocks Losing Their Fire. Macy’s Inc. (NYSE:M) is one of the worst performers on Thursday. Macy’s extended its losing streak to a third straight day on Thursday, shedding 0.62 percent to close at $22.32 apiece as investors took path from its earnings performance in the third quarter of the year. At intra-day trading, the stock dropped by as much as 3.6 percent. Pixabay/Public Domain In an updated report, Macy’s Inc. (NYSE:M) said net income dwindled by 60.7 percent to $11 mill ...

Group 1: Market Performance - US equities experienced growth in Q3 2025, with the S&P 500 returning 8.1% and the Russell 1000 Value up 5.3% [1] - The SCCM Enhanced Equity Income Fund had a composite return of 0.9% (net) for the quarter, compared to 3.5% for the S&P 500 Buy-Write Index and 2.5% for the SPDR Bloomberg High Yield Bond ETF [1] Group 2: Conagra Brands, Inc. (CAG) Overview - Conagra Brands, Inc. is a consumer-packaged goods food company, with a one-month return of -1.11% and a 52-week loss of 37.78% [2] - As of December 04, 2025, Conagra's stock closed at $16.95 per share, with a market capitalization of $8.108 billion [2] Group 3: Investment Position and Challenges - The SCCM Enhanced Equity Income Fund sold its position in Conagra Brands during the quarter due to ongoing industry challenges affecting traditional brands [3] - The frozen food category, which constitutes approximately one-third of Conagra's sales, is facing intense competition and declining volumes following inflationary price increases [3] - Conagra's stock valuation is considered attractive at 11x forward earnings, but the food industry has de-rated over recent years, and the current dividend payout ratio is at 80%, exceeding the company's target of 50-55%, which poses a risk to the dividend [3] Group 4: Hedge Fund Interest - Conagra Brands is not among the 30 most popular stocks among hedge funds, with 34 hedge fund portfolios holding the stock at the end of Q3, down from 38 in the previous quarter [4] - While there is potential for investment in Conagra, certain AI stocks are viewed as offering greater upside potential and less downside risk [4]

Core Insights - The Nasdaq-100 Index (NDX) experienced a significant rally of 5.79% during Thanksgiving Week, providing positive momentum for investors [1] - Investors are now shifting focus to market performance in December 2025 and evaluating opportunities for the upcoming year [2] - Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM) are highlighted as potential investment options for both the final month of this year and for 2026 [2] Investment Opportunities - QQQ and QQQM are seen as suitable for investors looking for stocks with long-term durability, including those with a "wide moat" label [3] - Notable stocks within these ETFs include PepsiCo (PEP), which is considered undervalued with rebound potential despite recent sluggish performance [5][6] - Alphabet (GOOGL), a major holding in QQQ and QQQM, is recognized for its strong business model across various sectors, including advertising and cloud computing, and is expected to drive upside for these ETFs [7][8]

Harding Loevner, an asset management company, released its “Global Equity Strategy” third-quarter 2025 investor letter.  A copy of the letter can be downloaded here. The fund returned 2.62% gross (2.52% net) in the third quarter of 2025, compared to a 7.74% return for the MSCI All Country World Index and 7.36% gain for the MSCI World Index. YTD, the strategy rose 10.61% (net) compared to 18.86% and 17.83% for the indexes. The firm highlighted in the letter that the last six months represented one of the str ...

Group 1 - Harding Loevner's Global Equity Strategy reported a gross return of 2.62% and a net return of 2.52% for Q3 2025, underperforming the MSCI All Country World Index and MSCI World Index, which returned 7.74% and 7.36% respectively [1] - Year-to-date, the strategy rose 10.61% net, compared to 18.86% for the MSCI All Country World Index and 17.83% for the MSCI World Index [1] - The last six months have been characterized as one of the strongest momentum phases in over 70 years, with high-momentum stocks outperforming low-momentum stocks by 45 percentage points, largely driven by advancements in AI [1] Group 2 - Oracle Corporation (NYSE:ORCL) was highlighted in the investor letter, with a one-month return of -10.42% and a 52-week gain of 11.81% [2] - As of December 4, 2025, Oracle's stock closed at $214.33 per share, with a market capitalization of $611.01 billion [2] - The investor letter noted that AI represents a significant secular change that could reshape industries, creating uncertainty in the markets, and that historical company fundamentals may be less reliable for long-term value [3]

Core Viewpoint - Variant Perception, a U.K. research firm, anticipates a rebound in manufacturing sectors outside of artificial intelligence (AI) [1] Group 1: Manufacturing Outlook - The firm expects a significant increase in manufacturing activities, indicating a positive trend for industries not directly related to AI [1]

Core Insights - Berkshire Hathaway's investment portfolio, valued at $312 billion, has a significant exposure to artificial intelligence (AI) stocks, amounting to over $75 billion concentrated in three major companies [4][3]. Group 1: Investment Portfolio Overview - Berkshire Hathaway's investment strategy has historically focused on long-term value, with a notable emphasis on companies with sustainable competitive advantages [2]. - The portfolio's substantial AI exposure is largely due to the performance of the S&P 500 and Nasdaq, driven by advancements in AI technology [3]. Group 2: Major AI Holdings - **Apple**: Represents the largest holding at $67.44 billion, driven by customer loyalty, strong management, and a robust share repurchase program, despite recent sales growth weaknesses [5][6][10]. - **Alphabet**: Valued at $5.62 billion, Alphabet benefits from its dominant position in internet search, controlling 89% to 93% of the market, and has significant growth potential through its Google Cloud segment, which is integrating generative AI solutions [11][12][15]. - **Amazon**: Worth $2.34 billion, Amazon leads in both e-commerce and cloud infrastructure services, with AWS accounting for about one-third of cloud spending. The company is also deploying generative AI to enhance its service offerings [16][19][20].

Rightmove’s grip on Britain’s property market makes it an attractive asset - M4OS Photos/Alamy An activist investor has bought a near £250m stake in Rightmove, piling fresh pressure on the embattled property giant. London-based Independent Franchise Partners (IFP) has built up a 5.8pc stake in the house-buying portal in recent weeks, becoming Rightmove’s third-biggest shareholder. The investment was made after the company warned its profit growth will slow next year because of investment in AI. That ann ...