Technology Sector Performance & Valuation - Technology sector earnings have re-accelerated, returning to the top quartile historically [2] - Technology valuations are now in the top quartile, matching high earnings growth [3] - Historically, high growth and high valuation environments have been more predictive of positive outcomes than low growth and low valuation scenarios [3] - Technology sector operating margins are increasing, unlike the negative margins seen in the 2000 tech bubble [6] - Technology sector CapEx, when divided by sales or free cash flow, shows no anomalies, supporting the high growth/high valuation narrative [7] Market Dynamics & Tailwinds - Recovering median earnings in economically sensitive sectors like technology are a positive setup [9] - Lower oil prices act as a tax cut, benefiting the technology sector through cost to margins and potentially lower inflation [10] - US earnings, particularly in technology, are accelerating while European and emerging markets are decelerating [12] - Since 2010, international stock outperformance has had a 0% odds of continuing, highlighting that cheap valuations don't always guarantee future success [14] Risk Assessment & Indicators - Public credit markets, specifically high yield credit spreads, should be monitored for signs of stress, but currently, credit spreads are well-contained [16][17] - The market may be able to "climb the wall of worry," suggesting resilience despite potential bubble concerns [17]

Core Insights - The performance disparity between Coca-Cola (KO) and PepsiCo (PEP) has been notable in 2025, with KO shares outperforming PEP shares [2] - Both companies reported better-than-expected quarterly results, leading to post-earnings gains [3][5] PepsiCo Earnings - PEP's quarterly results exceeded consensus expectations, with a 2.7% year-over-year sales growth and a -0.8% decline in adjusted EPS [3][6] - Analysts raised EPS expectations for PEP, resulting in a Zacks Rank 2 (Buy) rating [3][5] - PEP affirmed its FY25 guidance, indicating strong momentum in North America Beverages and stable international performance [6] Coca-Cola Earnings - KO exceeded the Zacks Consensus EPS estimate by 5% but fell short of sales expectations by 0.1% [9] - KO reported a 5.1% year-over-year sales growth and a 6.5% increase in adjusted EPS, reflecting a turnaround compared to previous periods [11] - Sales growth was supported by a 6% increase in price/mix, successfully passing costs to consumers [13] Valuation Comparison - PEP shares trade at an 18.1X forward 12-month earnings multiple, below the five-year median of 23.1X, while KO shares trade at 22.4X, close to the five-year median [14] - PEP's improved EPS outlook and favorable Zacks Rank 2 (Buy) rating provide it an edge over KO in terms of near-term performance [16]

Core Insights - Vince Holding Corp. has significantly improved its balance sheet in Q2 of fiscal 2025, reducing long-term debt by over 40% year-over-year from $54.4 million to $31.1 million, a decrease of $23.3 million, indicating effective financial management and a more efficient capital structure [1][8] Financial Performance - The company's net interest expense has halved to $0.8 million, down from the previous year's figure, due to disciplined cash management and tighter working capital control, which has strengthened its financial position amid a changing retail environment [2][8] - GAAP earnings per share (EPS) surged to $0.93 from $0.05 year-over-year, while adjusted earnings, excluding the ERC impact, were reported at $0.38, driven by lower interest burdens and improved gross margins [3][8] - The reduction in debt has eased pressure on the balance sheet and created opportunities for continued EPS growth through a permanently reduced cost of capital [4] Comparative Analysis - Ralph Lauren Corporation maintains a strong balance sheet with $2.3 billion in cash against $1.6 billion in total debt, allowing for $300 million in shareholder returns through buybacks and dividends, supported by a 270-basis-point expansion in adjusted operating margin [5] - PVH Corp. executed $561 million in share repurchases in Q1 of 2025 but paused in Q2, delivering solid performance with non-GAAP earnings of $2.52, exceeding guidance, and reaffirming its full-year non-GAAP earnings outlook of $10.75-$11.00 [6] Stock Performance and Valuation - Vince Holding's shares have increased by 85.9% over the past three months, outperforming the industry growth of 62.9% [7] - The company trades at a forward price-to-earnings ratio of 43.74X, significantly higher than the industry average of 17.17X [9] - The Zacks Consensus Estimate for Vince Holding's fiscal 2025 earnings indicates a year-over-year growth of 215.8%, while the estimate for fiscal 2026 suggests a decline of 86.7% [10]

Our next guest has been a longtime investor in the space and joins us now with some top picks. Harris Oakmark partner and co-CIO of international equities Tony Coney. Tony, um, first of all, I just want to ask you kind of the role that international plays right now in terms of diversification.I know going into the year there was the whole argument about US exceptionalism and how to kind of get it more diversification abroad, especially given the increasing concentration in US equities. Nothing's really chan ...

Core Thesis - The Charles Schwab Corporation (SCHW) is positioned to benefit from a normalization in cash balances, which will allow the company to pay down higher-cost debt and improve net interest margins (NIMs) to around 3% [2] - The integration of TD Ameritrade has been largely absorbed, with key indicators such as new accounts and net new assets returning to near-target levels, signaling a recovery in market share [2] - Strong equity markets have boosted trading activity and supported the balance sheet, improving capital ratios and liquidity [3] Financial Performance - SCHW's trailing and forward P/E ratios are 24.92 and 17.27 respectively, with a forward P/E of 18x reflecting solid earnings growth and operational momentum [1][3] - EPS growth is expected to exceed 20% in FY25, driven by improved net interest income and operational recovery [2] Investment Outlook - The company presents a stable investment opportunity with ongoing EPS growth and a strengthened balance sheet, although current valuation may be weighed against alternative opportunities [4] - The combination of recovering market share, improving NIMs, and strong capital positioning supports a constructive medium-term outlook, making the stock a Hold/Buy in the context of broader market conditions [4]

chief equity strategist at Deutsche Bank. Binky, it's great to speak with you. Uh, and let's start right there because so far and maybe Netflix and Texas instruments notwithstanding, it does seem like it's been a a pretty strong earning season.>> Uh, yeah, I think you know, bigger picture, one wants to keep in mind that basically over the last two years, uh, S&P 500 earnings have basically bobbed up and down around 11% earnings growth. 11% earnings growth happens to be uh the historical average outside of r ...

SMITHFIELD, NC / ACCESS Newswire / October 22, 2025 / KS Bancorp, Inc. (the "Company") (OTCID:KSBI), parent company of KS Bank, Inc. (the "Bank"), today reported another quarter of solid financial performance, highlighted by strong earnings growth and continued balance sheet expansion. For the three months ended September 30, 2025, the Company reported net income of $2.5 million, or $2.24 per diluted share, compared to $1.5 million, or $1.32 per diluted share, for the same period in 2024. ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a me ...

Key Takeaways PM's Q3 adjusted EPS rose 17.3% to $2.24, beating estimates on solid smoke-free gains.Net revenues climbed 9.4% year over year to $10.85B, fueled by strong pricing and higher SFP volumes.Smoke-free revenues surged 17.7% and made up 41% of total sales, boosting margins and overall growth.Philip Morris International Inc. ((PM) reported third-quarter 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. Results were fueled by continued inv ...

The Magnificent Seven have been the stars of the S&P 500 for the past several years, but the group’s period of exceptional earnings growth may be nearing an end. https://t.co/vQVDdTVv5U ...