Core Viewpoint - The article emphasizes the importance of value investing and highlights TORM (TRMD) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][8]. Company Analysis - TORM (TRMD) currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 5.05, significantly lower than the industry average of 6.36, suggesting it may be undervalued [4]. - TRMD has a P/B ratio of 0.76, compared to the industry average of 1.31, further indicating its undervaluation [5]. - The P/S ratio for TRMD is 1.17, which is also lower than the industry average of 1.35, reinforcing the notion of being undervalued [6]. - The P/CF ratio for TRMD stands at 2.61, well below the industry average of 4.58, highlighting its strong cash flow outlook [7]. - Overall, the metrics suggest that TORM is likely undervalued, making it an attractive option for value investors [8].

Core Viewpoint - Investors are looking to enhance passive income through dividend-paying stocks that are currently undervalued, with Devon Energy, APA, and McDonald's being highlighted as notable options in July. Group 1: Devon Energy - Devon Energy's stock has declined by 31% over the past year, influenced by negative sentiment towards energy stocks and increased OPEC production [3] - The company offers a quarterly fixed dividend of $0.24, translating to an annual yield of over 3%, and is projected to generate $1.9 billion in free cash flow in 2025 even with oil prices at $50 per barrel [4] - Devon is expected to maintain cash flow for share buybacks of $200 million to $300 million per quarter and may consider a variable dividend, making it attractive for passive income investors [5] Group 2: APA - APA's stock has dropped 15% year-to-date, contrasting with a nearly 7% rise in the S&P 500, but it offers a forward dividend yield of 5.1% [6] - As a pure-play exploration and production company, APA is highly sensitive to energy price fluctuations, which have negatively impacted its stock [7] - The company is successfully reducing expenses, expecting a $150 million decrease in development capital and a $50 million reduction in exploration capital, with Q1 2025 free cash flow at $126 million compared to $99 million in Q1 2024 [9] Group 3: McDonald's - McDonald's has increased its dividend for 48 consecutive years and generates significantly more free cash flow than its dividend obligations, ensuring sustainability [11] - The franchise model allows McDonald's to operate capital-light, reducing variance in results and maintaining strong free cash flow even during downturns [13][14] - Despite a nearly 10% pullback from its all-time high, McDonald's maintains a reasonable valuation with a dividend yield of 2.4%, although it faces challenges in expanding its market presence [15][16][17]

Core Insights - Grab Holdings operates similarly to Uber in Southeast Asia, holding a near monopoly or duopoly in most countries within the region [1] Company Overview - Grab Holdings is involved in key markets across Southeast Asia, indicating a strong regional presence and competitive advantage [1] Analyst Background - The analyst has over 10 years of experience researching various companies across multiple sectors, including commodities and technology, which enhances the credibility of the insights provided [1]

Core Viewpoint - The article compares Associated Banc-Corp (ASB) and UMB Financial (UMBF) to determine which stock is more attractive to value investors [1] Valuation Metrics - ASB has a forward P/E ratio of 10.37, while UMBF has a forward P/E of 11.83 [5] - ASB's PEG ratio is 1.13, compared to UMBF's PEG ratio of 1.29, indicating ASB may offer better value considering expected earnings growth [5] - ASB's P/B ratio is 0.95, while UMBF's P/B ratio is 1.26, suggesting ASB is undervalued relative to its book value [6] Earnings Outlook - ASB is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - ASB holds a Zacks Rank of 2 (Buy), while UMBF has a Zacks Rank of 4 (Sell), indicating a more favorable earnings estimate revision for ASB [3]

Market Overview - The U.S. stock market has rebounded from April lows, ending the first half of the year positively, aided by a strong June jobs report and easing tariff concerns [1] - Despite the recovery, caution persists due to unresolved trade tensions and uncertainty regarding the Federal Reserve's interest rate decisions [1] Investment Strategy - In an unpredictable market, value investing is recommended, focusing on undervalued stocks with strong fundamentals for stability and long-term gains [2] - Investing in solid businesses trading at fair or discounted prices is suggested over chasing volatile, hype-driven stocks [2] Value Stocks - Notable value stocks with high earnings yield include Fresenius Medical Care AG & Co (FMS), Eldorado Gold (EGO), Hope Bancorp Inc. (HOPE), and Heritage Insurance Holdings, Inc. (HRTG) [3][9] - These stocks have earnings yields above 10% and strong growth forecasts, making them attractive for value-focused investors [9] Earnings Yield Metric - Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100, indicating the anticipated return from earnings for each dollar invested [4] - A higher earnings yield suggests a stock is underpriced compared to its peers, while a lower yield indicates it may be overpriced [4] Comparison with Treasury Yield - Earnings yield can be compared with the 10-year Treasury yield to assess the relative attractiveness of stocks versus bonds [5] - When the market index yield exceeds the 10-year Treasury yield, stocks may be considered undervalued, making them a better option for value investors [5] Stock Screening Criteria - A primary screening criterion is an earnings yield greater than 10%, supplemented by estimated EPS growth and average daily trading volume [6][7] - Stocks should also have a current price of at least $5 to ensure adequate liquidity [8] Stock Performance and Growth Estimates - Fresenius Medical Care is projected to have year-over-year earnings growth of 33% and 12% for 2025 and 2026, respectively, with upward revisions in EPS estimates [10] - Eldorado Gold anticipates earnings growth of 10% and 55% for the same years, also showing upward revisions in EPS estimates [11] - Hope Bancorp expects year-over-year growth of 12% and 40%, with recent upward revisions in EPS estimates [12] - Heritage Insurance forecasts significant growth of 62% and 13% for 2025 and 2026, respectively, with substantial upward revisions in EPS estimates [13]

Group 1 - Delta Air Lines has been rated a Hold twice, with the most recent rating following their Q4 2024 results [1] - Q2 results are expected to be released on July 10th, and the analyst maintains a cautious outlook [1] - The analysis is based on value investing principles, focusing on a long-term investment perspective [1] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company [2] - There is no business relationship between the analyst and the companies mentioned in the article [2]

Company Overview - TORM plc is a fossil fuel shipping company that specializes in transporting refined fossil fuels such as gasoline, naphtha, jet fuel, and kerosene through its fleet of vessels and strategic alliances with leading oil producers [1] Investment Focus - The company is of interest to individual investors who seek value in companies linked to commodity production, particularly those with sustained free cash flows, low leverage, and sustainable debt levels [1] - There is a focus on companies undergoing distress but with high recovery potential, especially in sectors like oil & gas, metals, and mining, particularly in emerging markets [1] Shareholder Value - The company is characterized by a solid pro-shareholder attitude, maintaining consistent buyback programs and dividend distributions over time [1]

Group 1: Zacks Premium and Style Scores - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2: Value, Growth, and Momentum Scores - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score assesses a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find sustainable growth stocks [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, catering to momentum traders [5] Group 3: VGM Score and Zacks Rank - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors seeking a balanced approach [6] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7][8] Group 4: Stock Analysis - Acuity, Inc. - Acuity, Inc., headquartered in Atlanta, GA, manufactures and distributes lighting fixtures and related components, focusing on energy efficiency and comfort for various applications [11] - Acuity has a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of B, supported by a forward P/E ratio of 17.61, making it attractive for value investors [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase of $0.31 to $17.34 per share indicate positive momentum for Acuity [12][13]

Core Viewpoint - Delta Air Lines (DAL) has announced a 25% increase in its quarterly dividend payout, raising it to 18.75 cents per share from 15 cents, reflecting the company's commitment to enhancing shareholder value and confidence in its business operations [1][3]. Dividend History - DAL's dividend has shown a steady increase from 6 cents per share in 2013 to 40.25 cents by early 2020, before being suspended due to the pandemic. Payments resumed in early 2023 at 10 cents per share, increased to 15 cents in mid-2024, and now to 18.75 cents in mid-2025 [2][8]. Current Dividend Yield - The current dividend yield for DAL stands at 10%, significantly higher than the Zacks Transportation-Airline industry's average of 1.54%, indicating a shareholder-friendly approach [4]. Valuation Metrics - DAL is trading at a forward price/sales ratio of 0.52, which is lower than the sector's average of 0.59 and below its five-year median, suggesting it may be undervalued relative to its future revenue potential [5][6][8]. Stock Performance - Over the past year, DAL shares have gained 2.3%, outperforming JetBlue, which has fallen 11.2%, while Ryanair has risen by 5% [11]. Operational Challenges - DAL faces challenges from rising operating expenses, particularly labor costs, which increased by 8% to $4.1 billion in Q1 2025. This has raised concerns about profitability and operational efficiency [14][16]. Liquidity Concerns - The company's current ratio is low at 0.38, indicating potential liquidity issues and challenges in covering short-term liabilities [17]. Market Outlook - Analysts have revised earnings estimates downward due to geopolitical uncertainties, tariff pressures, and inflation, which are affecting travel demand, particularly in international and business segments [13][15].

Core Viewpoint - The Defiance Leveraged Long + Income MSTR ETF (NASDAQ: MST) is a newly launched ETF that began trading in May, and it is important to analyze its performance and strategy in the context of value investing and long-term investment horizons [1]. Group 1 - The ETF was launched approximately two months ago, indicating it is still in the early stages of its market presence [1]. - The analysis focuses on the relationship between the ETF and its underlying strategy, emphasizing a value investing approach and an owner's mindset [1]. - The author does not engage in short selling or writing sell articles, indicating a long-term investment philosophy [1].