Market Overview - Recent market gains have been driven by easing U.S.-China trade tensions, softer inflation, and strong first-quarter 2025 results, but uncertainty persists [1] - Many companies are issuing cautious outlooks or withdrawing guidance due to rising costs, subdued consumer demand, and shaken business confidence [1] Tariff Impact - Although fears regarding tariffs have lessened, a 10% tariff remains a new baseline, indicating that trade-related pressures could re-emerge [2] - Economic indicators and earnings reports are expected to reveal the long-term effects of tariffs as the year progresses [2] Investment Strategy - Volatility remains in the market, and the current rally appears fragile, suggesting that value investing may be a prudent strategy [3] - Value investing focuses on fundamentally strong companies trading below their intrinsic worth, providing resilience amid market fluctuations [3] Value Stocks - Notable value stocks with high earnings yield include Aris Mining Corporation (ARMN), LATAM Airlines Group (LTM), Priority Technology Holdings Inc. (PRTH), Heritage Insurance Holdings Inc. (HRTG), and Pagaya Technologies Ltd. (PGY) [4] Earnings Yield Metric - Earnings yield, calculated as annual earnings per share (EPS) divided by market price, is a useful metric for identifying attractively valued stocks [5] - Stocks with higher earnings yield are considered undervalued compared to those with lower earnings yield [5] Stock Comparison - Earnings yield can be compared to prevailing interest rates, such as the 10-year Treasury yield, to assess relative value [6] - A stock with a yield lower than the 10-year Treasury yield is deemed overvalued, while a higher yield indicates undervaluation [7] Screening Criteria - An earnings yield greater than 10% is set as a primary screening criterion, supplemented by estimated EPS growth and average daily volume [8][9] - Additional parameters include a current price greater than or equal to $5 and stocks with a Zacks Rank 1 (Strong Buy) or 2 (Buy) [10] Company Highlights - **Aris Mining Corporation (ARMN)**: Expected earnings growth of 226.5% and 80.6% for 2025 and 2026, respectively, with a Zacks Rank 1 and Value Score of A [12] - **LATAM Airlines Group (LTM)**: Projected earnings growth of 27.5% and 20% for 2025 and 2026, respectively, also with a Zacks Rank 1 and Value Score of A [13] - **Priority Technology Holdings Inc. (PRTH)**: Anticipated earnings growth of 108% and 34% for 2025 and 2026, with a Zacks Rank 1 and Value Score of A [14] - **Heritage Insurance Holdings Inc. (HRTG)**: Expected earnings growth of 62% and 13% for 2025 and 2026, with a Zacks Rank 1 and Value Score of B [15] - **Pagaya Technologies Ltd. (PGY)**: Projected earnings growth of 195% and 28% for 2025 and 2026, with a Zacks Rank 1 and Value Score of B [16]

Core Viewpoint - The article discusses the investment potential of Bentley Systems (NASDAQ: BSY), highlighting a buy rating based on its valuation becoming attractive and the expectation of growth acceleration in the future [1]. Group 1: Investment Philosophy - The investment approach is fundamentally based, focusing on long-term durability and affordability rather than merely low multiples [1]. - The article emphasizes the importance of a robust balance sheet and steady long-term growth without cyclicality as key factors in selecting investment opportunities [1]. - It acknowledges the risks associated with investing in successful companies, particularly the potential of overpaying for stocks, underscoring the significance of valuation [1]. Group 2: Market Outlook - There is a belief that in certain situations, the potential for growth can outweigh immediate price concerns, suggesting a favorable outlook for companies with significant development runways [1].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Inspired Entertainment (INSE) as a strong candidate for value investors due to its favorable metrics and Zacks Rank [2][4][6]. Company Analysis - Inspired Entertainment (INSE) has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock has a Price-to-Earnings (P/E) ratio of 13.32, significantly lower than the industry average P/E of 25.02, suggesting it may be undervalued [4]. - INSE's Forward P/E has fluctuated between 8.19 and 33.98 over the past year, with a median of 12.64, further indicating its valuation dynamics [4]. - The Price-to-Sales (P/S) ratio for INSE is 0.76, compared to the industry average P/S of 1.77, reinforcing the notion of undervaluation [5]. Investment Outlook - The combination of INSE's favorable P/E and P/S ratios, along with a strong earnings outlook, positions it as an attractive value stock at the moment [6].

Group 1 - Hudson Technologies (NASDAQ: HDSN) is considered a buy due to its cheap stock price and potential for margin recovery, supported by a strong balance sheet [1] - The investment focus is on sectors such as chemicals, homebuilders, building materials, industrials, and metals & mining, with a preference for undervalued stocks that have near-term catalysts [1] - The investment horizon for the company ranges from one quarter to two years, indicating a medium-term investment strategy [1]

Core Insights - IDT Corporation's stock price has increased from approximately $24 to $58.21, representing a 142% return over 21 months [1] Company Overview - IDT Corporation is highlighted as a significant investment opportunity, reflecting a strong performance in the market [1] Investment Philosophy - The investment approach emphasizes value investing, viewing each investment as a genuine ownership stake in the business with an indefinite time horizon [1]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Paysign (PAYS) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][4][7]. Valuation Metrics - Paysign has a Forward P/E ratio of 10.41, significantly lower than the industry average of 23.41, indicating potential undervaluation [4]. - The stock's P/B ratio stands at 5.33, compared to the industry's average P/B of 8.81, suggesting a solid valuation relative to its book value [5]. - Paysign's P/CF ratio is 13.78, which is lower than the industry average of 18.69, further supporting the notion that the stock may be undervalued based on its cash flow outlook [6]. Historical Performance - Over the past year, Paysign's Forward P/E has fluctuated between a high of 22.80 and a low of 6.69, with a median of 13.31 [4]. - The P/B ratio for Paysign has ranged from a high of 10.84 to a low of 3.43, with a median of 6.71 [5]. - The P/CF ratio has varied from a high of 24.14 to a low of 8.85, with a median of 15.96 over the past year [6]. Investment Outlook - Given its strong earnings outlook and favorable valuation metrics, Paysign is positioned as one of the strongest value stocks in the market currently [7].

Market Overview - As of mid-May 2025, the S&P 500 has turned positive year-to-date for the first time in many weeks, indicating a broad recovery across multiple sectors from previous volatility [1][2] - Despite the market improvement, ongoing trade disputes and the Trump administration's tariff policies remain a concern [2] Cogent Communications - Cogent Communications is currently trading at $50.87, with a 12-month stock price forecast of $75.75, indicating a potential upside of 48.91% based on 8 analyst ratings [5][8] - The company has seen a significant drop in share price since February, nearing a one-year low, but has strong growth potential in wavelength services, which have more than doubled in revenue over two years [6][7] - Cogent expects to capture a quarter of the North American wavelength market in the next three years, with current revenue in this category at $7.1 million [7] Regeneron Pharmaceuticals - Regeneron Pharmaceuticals is trading at $571.36, with a 12-month stock price forecast of $890.60, suggesting a potential upside of 55.87% based on 26 analyst ratings [9][10] - The company has experienced a 20% decline year-to-date and a 42% drop over the last 12 months, reaching a multi-year low [10] - Regeneron benefits from a robust pipeline and recent sales growth, achieving $14 billion in sales in 2024, up from over $13 billion the previous year [11] - The company has a low debt-to-equity ratio of 0.09 and initiated dividend payments in February 2025, enhancing its appeal to investors [13] Atlas Energy Solutions - Atlas Energy Solutions is currently priced at $13.23, with a 12-month stock price forecast of $19.81, indicating a potential upside of 49.75% based on 12 analyst ratings [14][16] - The company has faced a 42% decline year-to-date amid broader energy sector turmoil but benefits from a specialized focus with little competition [14][15] - Atlas Energy's operations in the Permian Basin provide a geographic advantage, helping to reduce costs and streamline logistics [15]

Core Insights - The article emphasizes a strong foundation in fundamental analysis and the identification of undervalued companies with long-term growth potential [1] - The investment approach combines value investing principles with a focus on long-term growth, advocating for the purchase of quality companies at a discount to their intrinsic value [1] Investment Strategy - The strategy involves holding investments for the long term to allow for compounding of earnings and shareholder returns [1]

Group 1 - The article discusses the investment approach focused on fundamentals, emphasizing the importance of long-term durability and affordability in stock selection [1] - It challenges the misconception that low multiple stocks are inherently cheap, advocating for a focus on companies with steady long-term growth and strong balance sheets [1] - The author acknowledges the risks associated with investing in successful companies, particularly the potential to overpay, highlighting the significance of valuation [1] Group 2 - The article expresses confidence in the continued growth strength of Gartner, Inc. (NYSE: IT), which was previously recommended as a buy [1]

Group 1 - Mesabi Trust (NYSE: MSB) experienced a significant decline in iron ore shipments attributed to Cleveland-Cliffs (CLF) for Q1 [2] - Comprehensive Q1 disclosure from Cleveland-Cliffs is still pending, indicating uncertainty in the current performance metrics [2] - The Value Lab focuses on long-only value investment strategies, targeting a portfolio yield of approximately 4% [1][2] Group 2 - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to yield non-correlated and outsized returns [3] - The society emphasizes downside protection in the context of the current economic environment [3]