Group 1: Macy's - Macy's operates as an omnichannel retail organization with stores, websites, and mobile applications [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 9.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Macy's has a price-to-earnings ratio (P/E) of 10.39, significantly lower than the industry average of 22.30, and possesses a Value Score of A [2] Group 2: Science Applications International (SAIC) - SAIC is a leading information technology and professional services provider primarily serving the U.S. government [1] - The company also carries a Zacks Rank of 1 and has seen a 2.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - SAIC has a price-to-earnings ratio (P/E) of 10.50, compared to the industry average of 15.30, and holds a Value Score of A [3]

Core Viewpoint - The State Street SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed ETF aimed at providing broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $841.87 million, positioning it as an average-sized ETF in this category [1]. Group 1: Large Cap Value Characteristics - Large cap companies generally have a market capitalization above $10 billion, characterized by stability and predictable cash flows, making them less volatile compared to mid and small cap companies [2]. - Value stocks, while having lower price-to-earnings and price-to-book ratios, have historically outperformed growth stocks in most markets, although they may underperform during strong bull markets [3]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.2%, categorizing it as one of the cheaper options in the market, and it offers a 12-month trailing dividend yield of 3.12% [4]. - As of December 29, 2025, the ETF has gained approximately 8.66% year-to-date and 7.51% over the past year, with a trading range between $95.52 and $116.46 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Industrials sector, comprising about 13.7% of the portfolio, followed by Consumer Staples and Financials [5]. - United Parcel Service Cl B (UPS) represents about 2.23% of total assets, with the top 10 holdings accounting for approximately 13.67% of total assets under management [6]. Group 4: Investment Strategy and Alternatives - The ETF aims to match the performance of the Russell 1000 Yield Focused Factor Index, which includes large-cap U.S. equity securities with high value, high quality, and low size characteristics, focusing on high yield [7]. - Alternatives to this ETF include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which track similar indices but have significantly larger asset bases and lower expense ratios [11]. Group 5: Overall Market Position - The ETF holds a Zacks ETF Rank of 3 (Hold), indicating it is a reasonable option for investors seeking exposure to the Large Cap Value segment of the market [10]. - Passively managed ETFs like ONEY are increasingly popular due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investors [12].

Core Viewpoint - The company maintains a Strong Buy rating for Amazon (AMZN) despite only a subtle increase in share price, highlighting its leadership in e-commerce and cloud services [1] Group 1: Company Performance - Amazon continues to demonstrate strong performance in its core sectors, e-commerce and cloud computing, which are critical to its market leadership [1] Group 2: Analyst Background - The analyst has a decade of experience at a Big 4 audit firm, specializing in banking, mining, and energy sectors, providing a strong foundation in finance and strategy [1] - Currently, the analyst serves as the Head of Finance for a leading retail real estate operator, overseeing complex financial operations and strategy [1] - The analyst has been an active investor in the U.S. stock market for 13 years, focusing on a balanced investment approach that includes value stocks and growth opportunities [1]

Core Insights - The article discusses top value stocks to buy and hold for 2026, emphasizing their undervaluation and strong economic moats [1][2] Group 1: Campbell - Campbell has shifted its portfolio from core soup products to snacks, enhancing efficiencies in its supply chain and manufacturing [3] - The company possesses a wide economic moat due to its strong brand portfolio and established retailer relationships, with a long-term forecast of low single-digit annual sales growth despite inflationary pressures [3] - The stock is considered significantly undervalued [4] Group 2: Bristol Myers Squibb - Bristol Myers Squibb has a strong drug portfolio and a robust pipeline, contributing to its wide economic moat rating [4] - The company faces a patent cliff, with 47% of total revenue exposed to patent threats through 2028, but newer therapies are expected to mitigate revenue impacts [5] - The stock is deemed significantly undervalued, with a target price of $66 per share [6] Group 3: Constellation Brands - Constellation Brands has established a wide economic moat through its portfolio of Mexican beer brands and strong distributor relationships [6] - Recent soft demand has affected results, but new product launches, including citrus-flavored and non-alcoholic beers, are expected to appeal to health-conscious consumers [7] - The stock is valued at $220 per share [7]

Core Insights - The iShares Core S&P U.S. Value ETF (IUSV) was launched on July 24, 2000, by BlackRock Inc. and is managed by BlackRock Fund Advisors, focusing on value stocks in the large- and mid-cap segments of the U.S. equity market [1] Company Overview - BlackRock Inc. is the parent company of the iShares Core S&P U.S. Value ETF, which provides investors with exposure to value stocks [1] Investment Strategy - The ETF targets large- and mid-cap value stocks, which are typically characterized by lower price-to-earnings ratios and higher dividend yields compared to growth stocks [1]

Core Insights - The iShares Core S&P U.S. Value ETF (IUSV) was launched on July 24, 2000, by BlackRock Inc. and is managed by BlackRock Fund Advisors, focusing on value stocks in the large- and mid-cap segments of the U.S. equity market [1] Company Overview - BlackRock Inc. is the parent company of the iShares Core S&P U.S. Value ETF, which provides investors with exposure to value stocks [1] Investment Strategy - The ETF targets value stocks, which are typically characterized by lower price-to-earnings ratios and higher dividend yields compared to growth stocks, appealing to investors seeking potential long-term gains [1]

Core Insights - The article discusses the 14 best "forever stocks" recommended by hedge funds, highlighting concerns over high valuations as many stocks are trading above historical norms, suggesting a potential rotation in investment strategies as 2026 approaches [1][2]. Investment Strategy - There is a noticeable shift from large-cap growth stocks to large-cap value stocks, indicating a defensive posture among investors in anticipation of market changes in the coming year [3]. - Analysts suggest that diversifying beyond large-cap stocks is prudent, especially given the recent resurgence of US equities led by large-cap tech companies [3]. Market Trends - Significant discounts on value stocks are noted, with current valuations being cheaper than historical averages, presenting a potential buying opportunity for investors [5]. - The article emphasizes the importance of stability and growth in selecting "forever stocks," which are favored by elite hedge funds [7]. Company Highlights - **KLA Corporation (NASDAQ:KLAC)**: - Upgraded to a Buy by Jefferies due to accelerating AI-driven spending, with revenue forecasts raised to $14 billion for 2026 and $15.5 billion for 2027 [10][12]. - Analysts expect the company to benefit from increased capital expenditure in the semiconductor sector [11]. - **The TJX Companies, Inc. (NYSE:TJX)**: - Maintains a Buy rating from UBS, with strong market share gains against department stores and a commitment to shareholder value through consistent dividend payments [15][18]. - Expected to achieve a 13% compound annual growth rate from 2021 to 2025, despite facing challenges such as tariffs and consumer uncertainty [18].

Core Viewpoint - Kinross Gold Corporation is identified as one of the most profitable value stocks currently, with positive price target adjustments from major financial institutions, reflecting strong demand for gold and a lack of speculative market behavior [1][2]. Financial Performance - In Q3 2025, Kinross Gold reported revenue of $1.80 billion, marking a 25.84% year-over-year increase [3]. - The company earned $0.44 per share, exceeding expectations by $0.05 [3]. - The cost of sales was recorded at $1,145 per ounce, contributing to healthy operating margins despite upward cost trends due to various factors [3]. Market Sentiment - UBS raised Kinross Gold's price target to $33 from $31 while maintaining a Buy rating, citing consistent demand from private investors and central banks as a driving force for gold prices [1]. - Bank of America also raised its price target to $32 from $30, reflecting a refreshed outlook on North American metals and mining, despite challenges from reduced Chinese demand for commodities [2]. Company Overview - Kinross Gold Corporation, along with its subsidiaries, focuses on acquiring, exploring, and developing gold properties primarily in the US, Brazil, Chile, Canada, and Mauritania [4].

Joining us now on set to give his take and provide some value stock picks is Chris Crosanti. He is chief market strategist at MAI Capital Management. Chris, good to see you.>> You too, Mike. >> Um, you know, so there's been a glimmer of of life uh from value stocks. They've actually outperformed this month, right.>> Actually, quarter to date. I think S&P value is winning. >> On the other hand, we've seen these head head fakes before.How are you just thinking about the overall market behavior, what it means ...

All right. So, give us a sense. Uh, we have the the data through Q3.What are we seeing in Q4 and what's the outlook for 2026. Are you expecting it to be another busy year for activist investors. >> Yeah, we do.Well, well, it's been it's been busy. Um, we expect there to be even busy in 2026. uh as as investors stop pouring money into Max 7 stocks like they have been which has been slowing down and they start looking for value and and frankly value stocks um we we we see activism a lot of good activist oppor ...