Core Insights - Small-cap stocks are experiencing a rally driven more by optimism than by solid earnings, indicating a potential disconnect between market performance and underlying fundamentals [1][6][14] Performance Comparison - The Russell 2000 index has recently reached its first record closing high in nearly four years, while the S&P 500 has been achieving record finishes since early 2024 [2] - Over the past decade, large-cap stocks have significantly outperformed small-cap stocks, with the S&P 500 gaining 259.7% compared to the Russell 2000's 110.11% since December 31, 2013 [3] - The last time the Russell 2000 outperformed the S&P 500 on a year-to-date basis was February 6, 2023, and it has not outperformed during a calendar year since 2020 [4] Earnings and Profitability - Small-cap stocks are projected to have stronger earnings growth in 2025, with the Russell 2000 expected to deliver 26.5% EPS growth compared to 10.3% for the Russell 1000 [12] - A significant portion of small-cap stocks, approximately 43%, are not reporting positive earnings, with unprofitable stocks in the Russell 2000 up 55% year-to-date compared to 8% for profitable ones [7][8] Market Dynamics - The small-cap rally is largely attributed to speculative investments, particularly in companies with poor profitability records [9][10] - The growth of private capital is impacting the small-cap landscape, as many high-growth companies are choosing to remain private, limiting the pool of public small-cap stocks [15][16] Interest Rate Influence - Small-cap companies tend to benefit more from falling interest rates due to their reliance on floating-rate debt, which can enhance their earnings through lower borrowing costs [13][14] - The current optimism surrounding small caps is primarily driven by expectations of interest rate cuts rather than improvements in business competitiveness [14][15] Private Equity Trends - The trend of private equity firms acquiring small-cap stocks is contributing to a reduction in the number of public companies eligible for small-cap indexes, which may affect the overall growth potential and quality of these companies [16][18] - Recent regulatory changes allowing everyday investors to access private equity could further influence the dynamics of small-cap investments [17]

Company Overview - Paramount Skydance Corporation (PSKY) has a market cap of $12.9 billion and operates in film, television, streaming, and interactive content [1] - The company is classified as a "large-cap" stock, with notable brands including Paramount Pictures, CBS, Nickelodeon, MTV, BET, Comedy Central, Showtime, Pluto TV, and Paramount+ [2] Stock Performance - PSKY shares have decreased over 9% from their 52-week high of $20.86, but have increased by 55.3% over the past three months, outperforming the S&P 500 Index's 8.2% gain [3] - Year-to-date, PSKY stock is up 81.5%, significantly surpassing the S&P 500's 12.1% rise, and has risen 79.9% over the past 52 weeks compared to the S&P 500's 15.2% return [4] Financial Results - Following Q2 2025 results on July 31, PSKY shares rose 3.5% as adjusted EPS of $0.46 exceeded consensus estimates [5] - Direct-to-Consumer (DTC) revenues increased by 14.9% to $2.16 billion, with subscription revenues up 21.8% and Paramount+ reaching 77.7 million subscribers, alongside a 9% growth in ARPU [5] - DTC adjusted OIBDA improved by $131 million, supported by strong theatrical performance from "Mission: Impossible – The Final Reckoning," which grossed over $590 million globally, and SG&A cost savings of 11.3% [5] Merger Activity - On August 7, Skydance Media and Paramount Global completed their merger to form Paramount, a Skydance Corporation (PSKY), combining Paramount's legacy content and distribution with Skydance's production and technology expertise [6]

Company Overview - TKO Group Holdings, Inc. has a market cap of $38.8 billion and is involved in managing sports and entertainment intellectual property, producing and licensing live events, programming, and various filmed content across multiple platforms [1] - The company offers UFC FIGHT PASS, a direct-to-consumer streaming service that includes live events, on-demand content, and original programming [1] Financial Performance - TKO reported Q2 2025 EPS of $1.17, which was weaker than expected, but shares rose 3.3% the following day due to revenue beating forecasts at $1.31 billion, reflecting a 10% year-over-year increase [5] - Net income for TKO surged to $273.1 million, while adjusted EBITDA increased by 75% to $526.5 million, with margins improving to 40% [5] - The company raised its full-year guidance and announced a significant five-year deal with ESPN to stream WWE premium live events, boosting investor optimism [5] Stock Performance - TKO shares have fallen 8.3% from their 52-week high of $212.49 but have gained 11.9% over the past three months, outperforming the Invesco Dynamic Leisure and Entertainment ETF (PEJ), which rose 10.9% during the same period [3] - Year-to-date, TKO's shares have surged 37.8%, significantly surpassing PEJ's 17.4% return, and over the past 52 weeks, the stock has soared 61.7%, compared to PEJ's 29.2% return [4] - TKO stock has consistently traded above its 50-day and 200-day moving averages since last year [4] Analyst Sentiment - Analysts are optimistic about TKO's prospects, with a consensus rating of "Strong Buy" from 21 analysts, and a mean price target of $211.29, indicating an 8.4% premium to current levels [6] - In comparison, rival Live Nation Entertainment, Inc. has seen a YTD stock increase of 25.3% and a 51.7% increase over the past 52 weeks, indicating TKO's outperformance relative to its industry peers [6]

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) is valued at a market cap of $11.4 billion and operates itineraries to over 700 destinations globally [1] - The company is classified as a large-cap stock, benefiting from a diverse three-brand portfolio that caters to mass-market, premium, and luxury travelers [2] - NCLH has a modern, fuel-efficient fleet and strong brand recognition, contributing to its expanding global presence [2] Financial Performance - NCLH's shares are currently trading 13.9% below their 52-week high of $29.29, but have rallied 30.1% over the past three months, outperforming the Invesco Dynamic Leisure and Entertainment ETF's 10.2% return [3] - Over the past 52 weeks, NCLH has gained 20.4%, lagging behind the ETF's 28.4% increase, and is down 1.9% year-to-date compared to the ETF's 17.6% rise [4] - The company reported Q2 results with a revenue growth of 6.1% year-over-year to $2.5 billion, missing consensus estimates by 1.6%, while adjusted EPS of $0.51 improved 30.8% but fell short of Wall Street forecasts [5] Market Outlook - Despite weaker-than-expected Q2 results, NCLH's shares surged 9.2% post-release as management reaffirmed its fiscal 2025 guidance, indicating confidence in future performance [5] - The company reiterated its adjusted EPS guidance of $2.05 for fiscal 2025, representing a nearly 16% increase over 2024, which reassured investors [5]

Company Overview - Pinnacle West Capital Corporation (PNW) is headquartered in Phoenix, Arizona, and provides retail and wholesale electric services primarily in Arizona, with a market cap of $10.4 billion [1][2] - PNW is also engaged in real estate development activities in the western U.S. [1] Stock Performance - PNW's stock has declined 9.7% from its 52-week high of $96.50, reached on April 3, and has underperformed the Nasdaq Composite, which gained 13% over the same three-month period [3] - Year-to-date, PNW shares have risen 2.8%, but they have dipped 2.4% over the past 52 weeks, lagging behind the Nasdaq's YTD gains of 16.5% and 24.5% returns over the last year [4] - PNW has been trading below its 50-day and 200-day moving averages since late August, indicating a bearish trend [4] Financial Performance - In Q2, PNW reported an EPS of $1.58, a decline of 10.2% year-over-year, while revenue totaled $1.4 billion, reflecting a 3.8% year-over-year increase [5] - The company expects full-year EPS to be between $4.40 and $4.60 [5] Competitive Landscape - Evergy, Inc. (EVRG) has outperformed PNW, showing YTD gains of 19.8% and 19.5% returns over the past 52 weeks [5] Analyst Sentiment - Wall Street analysts maintain a "Moderate Buy" rating for PNW, with a consensus mean price target of $96.50, suggesting a potential upside of 10.7% from current price levels [6]

Company Overview - Hasbro, Inc. has a market cap of $10.5 billion and is recognized for its brands like Monopoly, NERF, and Transformers [1] - The company operates in consumer products, Wizards of the Coast & digital gaming, and entertainment/licensing, focusing on scaling gaming and licensing while streamlining traditional toy operations [1] Market Position - Hasbro is classified as a "large-cap" stock due to its valuation, and it has a diverse intellectual property portfolio that includes both traditional toys and high-growth gaming franchises [2] - The company benefits from a strong recurring revenue model through Wizards of the Coast, particularly with Magic: The Gathering and Dungeons & Dragons, which have a dedicated player base [2] Stock Performance - Hasbro's stock has experienced a decline of 8.5% from its 52-week high of $82.19, while gaining 3.7% over the past three months, underperforming the Nasdaq Composite's 13% rise [3] - Year-to-date, HAS stock has increased by 34.6%, outperforming the Nasdaq's 16.5% rise, but has only surged 4.6% over the past 52 weeks compared to the Nasdaq's 24.5% [4] Financial Results - In Q2 2025, Hasbro reported an adjusted EPS of $1.30 and revenue of $980.8 million, exceeding market expectations [5] - Despite the positive earnings report, shares dropped 2.3% due to a 16% decline in consumer products sales, attributed to U.S. retailers holding back orders amid tariff concerns [5] - Nearly half of Hasbro's sourcing is from China, leading to expected tariff-related costs of $60 million, although management aims to reduce this sourcing to 40% by 2027 [5]

Company Overview - Dell Technologies Inc. is valued at $90.3 billion and is one of the largest laptop and PC companies globally, operating through its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) segments [1] - The company has a significant presence in the computer hardware industry, categorized as a large-cap stock due to its market capitalization exceeding $10 billion [2] Stock Performance - Dell's stock reached a 52-week high of $147.66 on November 25, 2024, and is currently trading 10.5% below that peak, with a 9.5% gain over the past three months, underperforming the Nasdaq Composite's 13% increase during the same period [3] - Over the longer term, Dell's stock has gained 14.6% in 2025 and 12.6% over the past 52 weeks, compared to the Nasdaq's 16.5% and 24.5% returns respectively [4] Financial Results - In Q2, Dell reported a record revenue of $29.8 billion, a 19% year-over-year growth, exceeding consensus estimates by 1.6%, with ISG revenues reaching $16.8 billion, marking a 44% year-over-year increase [5] - Despite better-than-expected results, Dell's stock declined 8.9% in a single trading session following the Q2 results release [5] Future Outlook - For Q3, Dell anticipates a topline of approximately $27 billion, indicating an 11% year-over-year growth, which did not meet investor expectations and contributed to a sell-off [6] - Dell has outperformed its peer HP Inc., which has seen a 15.7% decline year-to-date and a 23.3% drop over the past 52 weeks [6]

Company Overview - C.H. Robinson Worldwide, Inc. is a leading global provider of logistics and third-party logistics (3PL) services, with a market cap of $15.9 billion [1] - The company offers a range of services including freight transportation, brokerage, warehousing, and supply chain consulting across various modes such as truckload, less-than-truckload, intermodal rail, air freight, and ocean transport [1] Market Position - C.H. Robinson is classified as a "large-cap stock" due to its market cap exceeding $10 billion, highlighting its size and influence in the integrated freight and logistics industry [2] - The company benefits from a robust carrier network, scale of operations, and a data-driven approach, enabling it to provide cost-efficient, flexible, and reliable logistics services [2] Stock Performance - Currently, C.H. Robinson's shares are trading 2.7% below their 52-week high of $138, reached on September 19 [3] - Over the past three months, shares have rallied 42.9%, significantly outperforming the Nasdaq Composite's 15% return during the same period [3] - In the longer term, shares have surged 26.1% over the past 52 weeks, slightly outpacing the Nasdaq's 25.6% increase [4] - Year-to-date, shares are up 29.9%, compared to the Nasdaq's 16.9% rise [4] - The stock has been trading above its 200-day moving average since late July and above its 50-day moving average since mid-May, indicating a bullish trend [4] Financial Performance - On July 30, C.H. Robinson reported its Q2 results, with shares increasing by 18.1% in the following trading session [5] - Revenue for the quarter declined 7.7% year-over-year to $4.1 billion, missing consensus estimates by 1.9% [5] - Despite the revenue decline, adjusted EPS grew 12.2% from the previous year to $1.29, exceeding analyst expectations by 10.3% [5] - Strong growth in margins was attributed to the disciplined execution of the company's strategic initiatives, which supported profitability [5]

Core Viewpoint - Wynn Resorts, Limited (WYNN) is a significant player in the luxury hotel and casino industry, with a market capitalization of $13.1 billion, showcasing its size and influence in the sector [1][2]. Company Overview - WYNN develops, owns, and operates luxury hotels and casinos, with notable properties including Wynn Las Vegas, Encore, Wynn Macau, and Wynn Palace [1]. - The company is classified as a "large-cap stock," emphasizing its dominance in the resorts and casinos industry [2]. Stock Performance - WYNN's shares are currently trading 2.5% below their 52-week high of $130.84, reached on September 19 [3]. - Over the past three months, WYNN shares have increased by 42.2%, significantly outperforming the Consumer Discretionary Select Sector SPDR Fund's (XLY) 11% return [3]. - In the last 52 weeks, WYNN has surged 59%, outpacing XLY's 19.8% increase during the same period [4]. - Year-to-date, WYNN shares are up 48%, compared to XLY's 6.1% rise [4]. - WYNN has been trading above its 200-day and 50-day moving averages since early May, indicating a bullish trend [4]. Financial Performance - In Q2, WYNN reported revenue of $1.7 billion, meeting consensus estimates, but its adjusted EPS of $1.09 declined by 2.7% year-over-year and fell short of analyst expectations by 9.2% [5]. - The decline in adjusted property EBITDAR at Wynn Palace, attributed to weaker VIP table games win, negatively impacted profitability [5]. Competitive Position - WYNN has outperformed its competitor, Las Vegas Sands Corp. (LVS), which gained 26% over the past 52 weeks and 3.3% year-to-date [6].

Core Company Information - Jack Henry & Associates, Inc. (JKHY) is a leading financial technology and IT services provider for banks, credit unions, and fintechs, founded in 1976 and headquartered in Monett, Missouri [1] - The company has a market capitalization of $11 billion and operates through four main segments: Core, Payments, Complementary, and Corporate & Other [1][2] Stock Performance - JKHY's stock has experienced a decline of 23.5% from its 52-week high of $196, reached on March 10 [3] - Over the past three months, JKHY stock dipped 17.1%, underperforming the Technology Select Sector SPDR Fund (XLK), which returned 15.4% [3] - Year-to-date, JKHY shares have dropped 14.4%, lagging behind XLK's gains of 20.5% [4] - Over the past 52 weeks, JKHY stock fell 14.2%, while XLK achieved returns of 26.2% [4] - JKHY has been trading below its 50-day and 200-day moving averages since the end of July, indicating a bearish trend [4] Dividend and Competitor Comparison - On August 25, JKHY's stock fell 2.3% after the company declared a quarterly dividend of $0.58 per share, payable on September 26 [5] - JKHY's competitor, Fidelity National Information Services, Inc. (FIS), has outperformed JKHY with a 21.5% increase year-to-date and 24.9% gains over the past 52 weeks [5] Analyst Ratings - Wall Street analysts have a cautious outlook on JKHY, with a consensus "Hold" rating from 17 analysts [6] - The mean price target for JKHY is $178.58, suggesting a potential upside of 19% from current price levels [6]