Core Insights - The stock market performed well in 2025, with the S&P 500 index achieving a total return of 17.9%, while the retail sector lagged with a return of only 5.6% [1] - Target and Kohl's are highlighted as potential value stocks due to their recent share price declines [1] Target - Target has differentiated itself by offering exclusive brands, but has recently faced sluggish sales, with fiscal third-quarter same-store sales dropping 2.7% [4] - The decline in sales is attributed to lower customer traffic and decreased spending, with inflation impacting discretionary spending [5] - The incoming CEO, Michael Fiddelke, aims to return to a differentiated merchandising strategy, update stores, and invest in technology to enhance customer experience [6] - Target's sales have also been affected by boycotts related to management's rollback of diversity, equity, and inclusion initiatives [7] - Despite a 26% decline in stock price over the past year, the current price-to-earnings (P/E) ratio of 12 presents a more attractive valuation compared to the S&P 500's P/E of 31 [9] Industry Outlook - The challenges faced by the retail sector may present long-term investment opportunities [8] - Target's new leadership is expected to steer the company back to its traditional merchandising roots after recent struggles [8]

Core Insights - The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average reached record highs in 2025, while the energy sector only gained 4.4% and consumer staples lost 1.2% compared to a 16.4% increase in the S&P 500 [1][2]. Chevron - Chevron is focusing on disciplined capital management and rewarding shareholders, particularly through its acquisition of Hess, which has valuable assets in the Bakken Basin and offshore Guyana [4]. - For 2026, Chevron anticipates capital expenditures (capex) between $18 billion and $19 billion, with over half allocated to U.S. projects, including $6 billion in the Permian, DJ, and Bakken basins, and $7 billion in offshore investments [5]. - The company's strategy of emphasizing international upstream production alongside onshore U.S. production may lead to lower production costs and higher margins [6]. - Chevron has effectively reduced costs, allowing it to sustain operating expenses, long-term investments, and capital plans, including dividends and stock repurchases, even at lower oil prices, with a breakeven point below $50 per barrel of Brent Crude oil through 2030 [7]. - With a 4.5% dividend yield and a forward price-to-earnings (P/E) ratio of 20.2, Chevron is positioned as a strong buy for value and income investors in 2026, having increased its dividend for 38 consecutive years [8]. Kinder Morgan - Kinder Morgan, a midstream company, plays a crucial role in the energy sector by investing in and maintaining infrastructure assets such as pipelines and terminals, which are essential for transporting, storing, and processing hydrocarbons [11]. - The company is expected to benefit from growing U.S. energy consumption and exports, positioning it favorably in the current market environment [10]. Kimberly-Clark - Despite poor recent results, Kimberly-Clark's stock is considered undervalued and presents an attractive investment opportunity [10].

Core Viewpoint - The Vanguard S&P Small-Cap 600 Value ETF (VIOV) is a passively managed ETF that aims to provide broad exposure to the Small Cap Value segment of the US equity market, with assets exceeding $1.50 billion, positioning it as an average-sized ETF in this category [1]. Group 1: Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present significant investment potential but also come with higher risks [2]. - Value stocks typically exhibit lower price-to-earnings and price-to-book ratios, along with lower sales and earnings growth rates. Historically, value stocks have outperformed growth stocks in long-term performance, although growth stocks may excel in strong bull markets [3]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.1%, making it one of the least expensive options in its category, and it offers a 12-month trailing dividend yield of 1.65% [4]. - VIOV aims to match the performance of the S&P SmallCap 600 Value Index, having gained approximately 2.1% year-to-date and about 8.32% over the past year, with a trading range between $71.94 and $101.69 in the last 52 weeks [7]. Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Financials sector, comprising about 22.3% of the portfolio, followed by Consumer Discretionary and Industrials [5]. - Borgwarner Inc (BWA) represents about 1.28% of total assets, with the top 10 holdings accounting for approximately 6.26% of total assets under management [6]. Group 4: Risk and Alternatives - VIOV has a beta of 1.02 and a standard deviation of 21.68% over the trailing three-year period, categorizing it as a medium-risk investment with effective diversification across 463 holdings [8]. - The ETF holds a Zacks ETF Rank of 2 (Buy), indicating strong potential for investors seeking exposure to the Small Cap Value segment, with alternatives like the iShares Russell 2000 Value ETF (IWN) and Vanguard Small-Cap Value ETF (VBR) also available [9][10]. Group 5: Market Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable vehicles for long-term investment strategies [11].

Core Viewpoint - Three stocks are highlighted with a buy rank and strong value characteristics for investors to consider, all carrying a Zacks Rank 1 and showing significant increases in earnings estimates over the last 60 days [1][2][3]. Group 1: O-I Glass, Inc. (OI) - O-I Glass, Inc. has a Zacks Consensus Estimate for its current year earnings increasing by 8.8% over the last 60 days [1]. - The company has a price-to-earnings ratio (P/E) of 7.94, which is lower than the industry average of 9.80 [1]. - O-I Glass possesses a Value Score of A, indicating strong value characteristics [1]. Group 2: Maximus, Inc. (MMS) - Maximus, Inc. has a Zacks Consensus Estimate for its current year earnings increasing by 15.8% over the last 60 days [2]. - The company has a price-to-earnings ratio (P/E) of 10.56, compared to the industry average of 13.90 [2]. - Maximus also possesses a Value Score of A, reflecting its strong value characteristics [2]. Group 3: Allegiant Travel Company (ALGT) - Allegiant Travel Company has a Zacks Consensus Estimate for its current year earnings increasing by 8% over the last 60 days [3]. - The company has a price-to-earnings ratio (P/E) of 13.12, which is lower than the industry average of 14.60 [3]. - Allegiant Travel possesses a Value Score of A, indicating strong value characteristics [3].

Core Insights - The Schwab U.S. Broad Market ETF (SCHB) provides broader market coverage, while the Vanguard Value ETF (VTV) focuses on value stocks with higher income potential [1][2] Cost & Size Comparison - SCHB has an expense ratio of 0.03% and assets under management (AUM) of $38.0 billion, while VTV has a slightly higher expense ratio of 0.04% and AUM of $215.5 billion [3][10] - The one-year return for SCHB is 11.9%, compared to VTV's 10.2%, and SCHB has a dividend yield of 1.1% versus VTV's 2.0% [3][4] Performance & Risk Metrics - Over the past five years, SCHB experienced a maximum drawdown of 25.36%, while VTV's maximum drawdown was 17.04% [5] - An investment of $1,000 in SCHB would have grown to $1,779, while the same investment in VTV would have grown to $1,646 over five years [5] Holdings & Sector Exposure - VTV holds approximately 315 stocks, with significant allocations in financial services (25%), healthcare (15%), and industrials (13%), featuring top positions like JPMorgan Chase and Berkshire Hathaway [6] - SCHB, on the other hand, leans heavily into technology (34%), financial services (14%), and consumer cyclicals (11%), with major holdings including Nvidia, Apple, and Microsoft [7] Investment Strategy Implications - SCHB offers a comprehensive approach to market exposure, capturing around 2,400 companies across various market caps, making it suitable for investors seeking broad market representation [8][9] - VTV's strategy is more selective, focusing on large-cap value stocks, which may appeal to income-focused investors looking for higher dividends [11]

Core Insights - The Vanguard Value ETF (VTV) focuses on large-cap value stocks, while the iShares Core S&P Total US Stock Market ETF (ITOT) aims to provide diversified access to the entire U.S. stock market, including both growth and value stocks [2][9] Cost & Size Comparison - VTV has an expense ratio of 0.04% and assets under management (AUM) of $215.5 billion, while ITOT has a slightly lower expense ratio of 0.03% and an AUM of $80.39 billion [3] - The 1-year return for VTV is 12.66%, compared to ITOT's 11.67%, and VTV offers a higher dividend yield of 2% versus ITOT's 1.09% [3] Performance & Risk Metrics - Over a 5-year period, VTV experienced a maximum drawdown of 53.7%, while ITOT had a lower maximum drawdown of 27.57% [4] - An investment of $1,000 would have grown to $1,606 in VTV and $1,707 in ITOT over the same 5-year period [4] Portfolio Composition - ITOT holds 2,498 stocks, with technology companies making up 34% of its assets, followed by financial services and consumer cyclicals [5] - VTV is concentrated in established value stocks, with significant weightings in financial services (22%), industrials (16%), and healthcare (15%) [7] Investment Implications - ITOT's broader exposure provides instant portfolio diversification and increased concentration in the technology sector, appealing to investors looking for long-term growth [9] - VTV's focus on established value stocks may offer a stronger hedge against market volatility and a higher dividend yield, attracting income-focused investors [10]

Core Viewpoint - The Invesco QQQ Trust, despite being one of the best-performing ETFs since its inception, is viewed critically by some investors who prefer quantitative analysis and value stocks with growth potential [1]. Group 1: Investment Strategy - The focus has shifted from individual stocks to ETF strategies that may outperform the market or provide better risk protection [1]. - The analyst emphasizes the importance of quantitative analysis and believes that mathematical insights drive investment success [1]. Group 2: Investment Preferences - The investment approach includes a diverse range of assets such as large caps, midcaps, small caps, international stocks, gold miners, and REITs [1]. - There is a notable skepticism towards sell-side analysis, which is often considered inadequate [1].

Core Viewpoint - The market has been heavily influenced by tech and growth stocks, particularly the "Magnificent Seven," but a potential rotation towards value stocks is becoming more likely as economic conditions evolve [1][2][8]. Economic Conditions - The U.S. economy experienced a 4.3% annualized growth rate in Q3 2025, with unemployment rates between 4% and 5% and inflation around 3%, indicating a healthy economic environment [4]. - However, the year-over-year earnings growth rate for the S&P 500 in Q4 2025 is estimated at 8.3%, which is below the five-year average of 14.9% and the ten-year average of 9.5%, suggesting a potential slowdown in growth [5]. - The unemployment rate has increased from 4% at the start of the year to 4.6% in November 2025, and inflation remains above the Federal Reserve's target of 2%, indicating challenges for growth stocks [6]. Value Stocks Outlook - Value stocks have struggled to maintain outperformance since 2022, but as the economic landscape shifts and the AI trade loses momentum, there is potential for a resurgence in value stocks [2]. - The Vanguard Mega Cap Value ETF (MGV) is highlighted as an attractive investment opportunity, focusing on sectors such as financials, healthcare, and industrials, which differ significantly from the tech-heavy allocations of growth stocks [7][9].

Group 1 - Boeing led the industrial sector with a gain of approximately 0.6% following a significant U.S. Air Force contract worth about $8.5 billion for fighter jets [2][4] - Molina Healthcare saw a notable increase of around 2.5% after positive investor commentary from Michael Burry, a well-known investor [2][4] - AXT, a semiconductor company, experienced a substantial rise of 8.29%, indicating strong performance in the semiconductor sector [2] Group 2 - OceanFirst Financial's stock dropped by 6.7% after announcing a merger agreement and a new strategic investment partner, highlighting volatility in the banking sector [5] - The overall market showed mixed breadth, with some sectors outperforming while others faced declines, reflecting a shift in investor sentiment towards economically sensitive areas [3][5] - The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all experienced slight declines, indicating a quiet trading day as the year-end approached [1][3]

Core Viewpoint - Investors are evaluating the attractiveness of ScanSource (SCSC) and Symbotic Inc. (SYM) for value investment opportunities, with SCSC currently appearing more favorable based on various financial metrics [1][3]. Valuation Metrics - SCSC has a forward P/E ratio of 9.66, significantly lower than SYM's forward P/E of 148.62, indicating that SCSC may be undervalued compared to SYM [5]. - The PEG ratio for SCSC is 0.64, while SYM's PEG ratio is 4.95, suggesting that SCSC has a better balance between its price and expected earnings growth [5]. - SCSC's P/B ratio stands at 0.96, contrasting sharply with SYM's P/B ratio of 73.15, further indicating SCSC's relative undervaluation [6]. Value Grades - SCSC has received a Value grade of A, reflecting its strong valuation metrics, while SYM has been assigned a Value grade of F, highlighting its poor valuation performance [6]. - The stronger estimate revision activity for SCSC compared to SYM suggests a more favorable earnings outlook for SCSC, making it a more attractive option for value investors [7].