Market Outlook - City maintains a year-end target of 6,600, set in early August, and currently sees the market at 6,700 plus [1] - The firm anticipates volatility into the Q3 reporting period but expects a year-end rally as Fed rate cuts become more apparent [2] - Expectations for index EPS growth are around 8%, and while achievable, the market's pricing in of continued "beat and raise" is considered aggressive [3][4] Sector Analysis - Communication services have been downgraded to market weight after a 25-year overweight position, reflecting concerns that positive catalysts are already priced in [5] - Tech and semiconductors remain overweight, and financials, particularly banks, are still viewed favorably, needing only to meet or slightly exceed expectations [6] - The market is viewed as split, with roughly half affected by AI and the other half not, with greater concern about the AI-affected portion due to heightened expectations [7][8] Risk Factors - Labor conditions and valuation are key concerns discussed with clients [10] - A government shutdown is currently viewed as temporary, but its impact will increase the longer it persists [14][15] Investment Strategy - The firm is leaning into the cyclical part of the market, including banks and certain retailers, contingent on continued rate cuts [11] - The upper half of the income distribution is expected to drive retail sales through the holiday season [12] - Gold and crypto are seen as hedging opportunities in a strong but highly valued, momentum-driven equity market, especially with central bank buying [13][14]

Core Viewpoint - Scotiabank downgraded DTE Energy from Sector Outperform to Sector Perform with a revised price target of $147.00, while maintaining a positive long-term EPS growth outlook of approximately 7.5% annually, which is above consensus and management's guidance [1] Summary by Relevant Sections EPS Growth Outlook - DTE Energy's long-term EPS growth is projected at about 7.5% annually, which is favorable compared to consensus and management's guidance [1] - The guidance range for EPS growth is between 6% and 8%, but Scotiabank believes the upside potential is limited [2] Market Sentiment and Regulatory Environment - The regulatory environment in Michigan remains favorable for DTE Energy [1] - There is a current market trend where investors show less interest in defensive utilities, impacting sentiment towards DTE [2] - Michigan's challenges in attracting data center customers are seen as a headwind to sentiment [2] Valuation and Financial Expectations - A positive financial update is expected in the third quarter, but valuation is likely to remain rangebound compared to peers [2]

Core Viewpoint - Fidelity National Information Services (FIS) shares have become more attractive following an upgrade from UBS, which raised the stock rating to Buy from Neutral with a price target of $82.00, despite a year-to-date decline of approximately 20% [1] Group 1: Stock Performance and Analyst Upgrade - UBS upgraded FIS shares to Buy from Neutral, setting a price target of $82.00 [1] - FIS shares have decreased around 20% year-to-date, but are now seen as offering a more favorable risk-reward profile [1] Group 2: Earnings and Financial Projections - Analysts forecast FY2026 EPS to exceed $6.25, indicating improved earnings visibility [1] - The company is expected to achieve stronger margin expansion and free cash flow conversion exceeding 90% [1] Group 3: Strategic Acquisitions and Synergies - The acquisition of TSYS credit issuer processing is projected to generate $150 million in EBITDA benefits within three years [2] - UBS anticipates total shareholder returns of 11–14%, including a dividend yield of approximately 2%, supported by M&A and share buybacks once leverage normalizes [2] Group 4: Future Outlook - Stable results in the second half of 2025, combined with TSYS integration in 2026, are expected to support higher valuation multiples and sustained EPS growth [2]

Core Viewpoint - Jefferies upgraded Quanta Services from Hold to Buy, raising the price target to $469 from $398, due to strong long-term growth opportunities across various sectors [1][2] Group 1: Market Expansion - The brokerage emphasized the expansion in total addressable markets, including data centers, renewable energy, transmission, and pipelines [2] - Quanta's execution, strong customer relationships, and craft-labor leverage are expected to support sustainable high-teens EPS growth over the next decade [2] Group 2: Financial Projections - Jefferies projected an 18.4% compound annual EPS growth rate from 2026 to 2030, which is above the consensus estimate of 17.9% [2] - Current valuations are considered an attractive entry point following a pullback from summer highs [2]

Core Insights - The primary purpose of a business is to generate profits for reinvestment or shareholder rewards, with net profit margin being a key metric for measuring profitability [1][3] - A higher net profit margin indicates a company's efficiency in converting sales into profits and reflects its operational management [2][4] Net Profit Margin Analysis - Net profit margin is calculated as Net Profit/Sales * 100, representing the amount retained after all expenses [3] - A strong net profit margin attracts investors and skilled employees, providing a competitive edge over peers [4] Pros and Cons of Net Profit Margin - Net profit margin offers clarity on a company's business model, including pricing, cost structure, and efficiency, making it a preferred metric for investors [5] - However, the metric varies significantly across industries, and differences in accounting treatments can complicate comparisons [6] Investment Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are crucial for maximizing returns [7] - Screening parameters include a net margin of at least 0%, positive EPS growth, and a broker rating of 1, indicating strong bullishness [8] Company Performance Highlights - InfuSystem Holdings (INFU), Century Aluminum Company (CENX), Remitly Global (RELY), and Great Lakes Dredge & Dock (GLDD) exhibit strong net margins and upward EPS revisions for 2025, all holding a Zacks Rank of 1 [9][10] - INFU's 2025 earnings estimate was revised upward by 160% to $0.26 per share, with an average surprise of 79.2% in recent quarters [11][12] - CENX's earnings estimate increased by 11.6% to $2.30 per share, with an average surprise of -15.4% [12][13] - RELY's earnings estimate rose by $0.03 to $0.12 per share, consistently beating estimates with an average surprise of 132.9% [13][14] - GLDD's earnings estimate increased by $0.06 to $1.02 per share, with an average surprise of 45.3% [15][16]

Investment Overview - Cigna Group's Evernorth Health Services announced a $3.5 billion investment in Shields Health Solutions, a specialty pharmacy management company [1] - The investment coincided with Shields' establishment as a private, stand-alone company following its acquisition by Sycamore Partners, which previously acquired Walgreens Boots Alliance, Shields' former owner [1] Financial Impact - The investment in Shields was made in the form of preferred stock and is not expected to materially impact Cigna's previously issued 2025 adjusted EPS guidance of at least $29.60 [2] - BofA Securities noted that Cigna is a pure-play commercial insurer, maintaining a long-term EPS growth outlook [2] Market Position and Growth - Cigna's large pharmacy benefits and specialty drug businesses provide broad exposure to rising drug spending, including obesity treatments, biosimilars, and gene therapies, without reliance on individual products [3] - Analyst Kevin Fischbeck projects EPS growth of 10%–15% annually, with a 9% free cash flow yield, while avoiding regulatory risks faced by peers, supporting expected returns of 10–15% [3] Stock Performance - Cigna Group's stock was reported to be up 0.22% at $301.65 at the time of publication [6]

Core Insights - Investors prioritize companies with consistent profitability, measured effectively by net profit margin, which reflects operational efficiency and management quality [1][2] - Companies such as Great Lakes Dredge & Dock Corporation (GLDD), InfuSystem Holdings, Inc. (INFU), Interface, Inc. (TILE), and Century Aluminum Company (CENX) demonstrate strong net profit margins [1] Net Profit Margin - Net profit margin is calculated as Net Profit/Sales * 100, indicating a company's ability to convert sales into profits after all expenses [2] - A strong net profit margin signifies effective cost control and operational strength, essential for attracting investors and rewarding stakeholders [2] Industry Comparisons - Net profit margin varies across industries, complicating direct comparisons; it is more critical in traditional sectors than in technology [3] - Differences in accounting practices, particularly regarding non-cash expenses, further complicate comparisons [4] Investment Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are key elements sought by investors [5] - Screening parameters include a net margin greater than or equal to 0, positive EPS growth, high broker ratings, and favorable Zacks Ranks [6] Stock Picks - The selected stocks (GLDD, INFU, TILE, CENX) have shown upward EPS estimate revisions, indicating positive outlooks [7] - GLDD is the largest U.S. dredging service provider with a Zacks Rank 1 and a VGM Score of A, with 2025 earnings estimates revised upward by $0.06 to $1.02 per share [8][9] - INFU, a healthcare services company, has seen its 2025 earnings estimate rise to $0.26 per share from $0.06, with an average surprise of 79.2% [10][11] - CENX, involved in primary aluminum production, has a revised earnings estimate of $2.06 per share, reflecting a 15.7% increase [11][12] - TILE, the largest modular carpet manufacturer, has its 2025 earnings estimate increased to $1.70 per share, consistently outperforming estimates [12][13]

Core Insights - Baker Hughes Company (BKR) has announced a definitive agreement to acquire Chart Industries (GTLS) for $210 per share, valuing the deal at $13.6 billion, which is a strategic move to enhance its Industrial & Energy Technology segment [1][8] Group 1: Acquisition Details - The acquisition is expected to add $4.2 billion in revenues and $1 billion in adjusted EBITDA for Chart Industries in 2024, expanding Baker Hughes' capabilities in LNG and decarbonization markets [2][8] - The deal has been unanimously approved by both companies' boards and is subject to regulatory approvals and a shareholder vote from Chart investors [4] Group 2: Financial Implications - Baker Hughes anticipates $325 million in annualized cost synergies by year three through supply-chain consolidation and operational efficiencies [3] - The transaction is projected to be accretive to growth, margins, earnings per share (EPS), and cash flow, with expectations of double-digit EPS growth within the first full year post-closing [3][8] Group 3: Strategic Positioning - The acquisition strengthens Baker Hughes' aftermarket services business by increasing its installed base and driving recurring revenue streams [3] - Baker Hughes plans to reduce leverage to 1.0-1.5x within 24 months after closing, maintaining its A credit rating and long-term dividend growth strategy [4]

Core Insights - InsCorp, Inc. reported a significant increase in earnings per share (EPS) to $0.73 in 2Q25, up from $0.57 in 1Q25 and $0.63 in 2Q24, indicating a positive trend in financial performance [1][15] - The company experienced a 24% year-over-year revenue growth in 2Q25, reaching $1,519,000, compared to 13% growth in 1Q25 [2] - The hiring of Billie Jo Parker as Chief Banking & Development Officer is expected to enhance business development and client services [9] Financial Performance - Net interest income rose by 27% year-over-year in 2Q25, with a net interest margin (NIM) improvement of 34 basis points to 3.21% [3][12] - The efficiency ratio improved to 60.9% in 2Q25 from 66.1% in 1Q25, reflecting better cost management [1][12] - Provision for credit losses increased to $380,000 in 2Q25, compared to $75,000 in 2Q24, which slightly restrained pretax income growth [2][15] Loan and Deposit Growth - Loan growth accelerated to 17% year-over-year in 2Q25, with notable increases in various categories such as residential loans (29% Y/Y) and HELOC (68% Y/Y) [4] - Total deposits grew by 18% year-over-year, driven by a 42% increase in interest-bearing transaction balances [5] - Medquity, INSBANK's healthcare division, reported an 18% year-over-year loan growth, contributing to the overall loan portfolio [4] Asset Quality and Capital Ratios - Asset quality remains strong, with nonperforming loans (NPLs) improving to 0.65% of total loans, down from 1.08% a year ago [6] - The bank's capital ratios indicate a well-capitalized status, with a tier-1 leverage ratio of 11.28% and a common equity tier-1 capital ratio of 12.01% [7][12] - Tangible book value per share increased by 6.4% year-over-year to $26.48 as of June 30, 2025 [8][12] Shareholder Returns - The Board of Directors approved a quarterly dividend of $0.11 per share, representing a 10% increase from the previous year [10] - The company repurchased 33,000 shares in 2Q25, amounting to 1.1% of the outstanding shares, as part of its ongoing share repurchase program [10]

We're going to be getting two of the MAG 7 finally reporting after the bell today. Alphabet and Tesla, two of the mega cap stocks that are reporting after the bell tonight. Right now though, we're going to focus in on Alphabet.Joining us right now with what to expect is Paul Meeks. He's Harvest Portfolio Management CIO. And Paul, you think the street expectations are are are pretty decent in terms of what you'd be expecting from Alphabet 2.That's right. You know, the key with Alphabet until further notice i ...