This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Dive Brief: In another round of M&A activity, Fort Lauderdale, Florida-based Moss Construction has acquired its northern neighbor, Tampa-based Ellison Construction, according to a Dec. 22 announcement. The terms of the acquisition were not disclosed. The acquisition will help Moss deepen its presence in Florida, which it refers to as one of the nation’s f ...

Core Insights - Dividend-paying stocks provide a predictable income stream and can help cushion portfolios during market volatility, making them attractive for investors seeking steady income and long-term wealth creation [1][2] Industry Overview - Large pharmaceutical companies are highlighted as dividend-friendly investments due to their stable cash flows, resilient demand for essential medicines, and diversified product portfolios, which support consistent shareholder returns [3] - The pharmaceutical sector is largely insulated from economic cycles, driven by the ongoing need for innovative medical treatments [3] Market Dynamics - Recent drug pricing agreements between large drugmakers and the government indicate a more cooperative relationship, which may lead to broader patient access and higher prescription volumes, potentially offsetting short-term profit impacts from reduced drug prices [4] - Innovation in high-growth areas such as obesity, gene therapy, inflammation, and neuroscience is expected to drive industry growth, with M&A activity likely focusing on selective, innovation-driven biotech acquisitions [5] Company Highlights - **Johnson & Johnson (JNJ)**: Recognized for its financial strength with an 'AAA' credit rating, JNJ has a current dividend yield of 2.50% and a five-year dividend growth rate of 5.39%. The company expects its Innovative Medicine business to grow 5% to 7% from 2025 to 2030, with oncology sales projected to exceed $50 billion by the end of the decade [7][8][10] - **AbbVie (ABBV)**: Known for its robust dividend profile, ABBV has a current dividend yield of 2.85% and a five-year dividend growth rate of 6.14%. The company anticipates a high single-digit revenue CAGR through 2029, supported by strong demand for its immunology therapies [12][13][14] - **Merck (MRK)**: With a strong oncology portfolio, Merck has a current dividend yield of 3.18% and a five-year dividend growth rate of 5.43%. The company plans to launch around 20 new vaccines and drugs in the coming years, addressing concerns about the upcoming loss of exclusivity for its key drug, Keytruda [15][16][17]

On December 24, Jared Holz of Mizuho joined ‘Power Lunch’ on CNBC to talk about how to play biotech moving into 2026. Holz noted that healthcare has become the top-performing sector over the last 3 months as investors rotate away from high-valuation tech and AI stocks. Despite this recent run, he argued that the sector has room to continue its upward trajectory, pointing out that it was a multi-year laggard, trailing the S&P 500 by 20% in 2023 and roughly 5% in 2024. He described the current rotation as a c ...

Key Takeaways MLYS' lorundrostat hit key endpoints, supporting plans for an NDA submission in early 2026.LYEL rose as ronde-cel advanced in pivotal studies and new CAR T assets strengthened its oncology pipeline.INSM climbs on Brinsupri's FDA approval, despite a setback in a mid-stage rhinosinusitis study.The drug and biotech sector witnessed a see-saw performance in 2025. After a weak show for most of the year, the sector picked up in the past couple of months. This can be attributed to improved policies f ...

Core Viewpoint - Barclays Bank's India CEO, Pramod Kumar, anticipates strong M&A activity in India for 2026, driven primarily by consumer tech and consumer businesses [1] Group 1: M&A Activity Expectations - The expectation for robust M&A activity in India in 2026 highlights a positive outlook for the market [1] - Consumer technology and consumer businesses are identified as key sectors that will continue to drive deal flow [1]

Core Insights - The healthcare sector is highlighted as a promising investment opportunity heading into 2026, with many stocks remaining undervalued despite the sector's resilience and growth since the pandemic [1][2][3]. Group 1: Market Outlook - JPMorgan has upgraded the healthcare sector to a preferred investment area, citing easing policy overhang, clarity in earnings, and increased M&A activity as key factors for this positive outlook [2][3]. - The strategists believe that the healthcare sector is showing signs of stabilization and renewed momentum, positioning it favorably for 2026 and beyond [3]. Group 2: Stock Selection Methodology - The list of recommended cheap healthcare stocks is based on companies with a market capitalization exceeding $2 billion, covered by three or more analysts, and showing an upside potential of over 10% with a forward P/E ratio between 8 and 15 [5]. - The top 12 companies were ranked based on their highest upside potential, with additional data on hedge fund holdings included [5][6]. Group 3: Company Highlights - **ICON Public Limited Company (NASDAQ:ICLR)**: - Upside potential of 14.87% as of December 5, 2025, with a share price of $185.87 [8]. - Maintained a 'Market Perform' rating with a price target of $175, indicating ongoing discussions about executive changes and revenue trends [8][10]. - Analysts generally rate it as a 'Buy' with a median price target of $213.50, suggesting nearly 15% upside [11]. - **Lantheus Holdings, Inc. (NASDAQ:LNTH)**: - Upside potential of 18.48% as of December 5, 2025, with a share price of $63.30 [12]. - Almost 80% of analysts rate it as a 'Buy', with a median price target of $75, indicating strong growth potential [12]. - Recent financial performance showed mixed results, with revenue exceeding estimates but diluted EPS falling short, attributed to pricing pressures and competitive dynamics [15].

Group 1 - The biotech industry has experienced significant fluctuations this year, characterized by both high and low points [1] - There has been a recent increase in M&A activity within the biotech sector, indicating a shift in market dynamics [1] - The company is evaluating its approach to capital deployment, particularly in relation to larger scale transactions versus smaller in-licensing deals [2]

Financial Data and Key Metrics Changes - BXSL reported net investment income (NII) of $0.82 per share, representing a 12% annualized return on equity, primarily from interest income [11][27] - NAV per share decreased by $0.18 quarter over quarter to $27.15 due to markdowns [12][28] - The distribution of $0.77 per share was 106% covered by NII, yielding an annualized distribution yield of 11.3% [12][27] Business Line Data and Key Metrics Changes - BXSL ended the quarter with $13.8 billion of investments at fair value, a 15% increase year-over-year [15] - The weighted average yield on performing debt investments at fair value was 10%, down from 10.2% in the previous quarter [15][30] - Nearly 98% of investments are in first-lien, senior secured loans, with an average loan-to-value (LTV) of 49.7% [16][18] Market Data and Key Metrics Changes - M&A activity increased by 63% year-over-year, contributing to BXSL's growth [8] - Defaults in the leveraged loan and high-yield market declined by 37% year-to-date [10] - BXSL's portfolio companies experienced an average EBITDA growth of nearly 9% year-over-year [17][28] Company Strategy and Development Direction - The company is focusing on first-lien senior secured loans with large sponsor-backed companies, particularly in sectors with long-term tailwinds [10][12] - BXSL is integrating AI considerations into its investment process, targeting larger businesses and mission-critical products [13][21] - The company aims to maintain a disciplined approach to investing while capitalizing on heightened deal activity [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing deal activity and stable credit quality, despite external narratives of market bubbles [6][10] - The company anticipates continued growth in M&A activity and asset turnover, with spreads remaining attractive compared to traditional fixed incomes [11][14] - Management noted that the economic backdrop is generally positive, with strong corporate balance sheets and earnings growth [88] Other Important Information - BXSL's total liquidity was reported at $2.5 billion, with ending leverage at 1.22 times, within the target range [33] - The company has maintained a strong focus on document protections and control in its credit agreements [20] Q&A Session Summary Question: Why retain exposure to Squarespace? - Management indicated that retaining exposure to high-quality companies can be beneficial, and spreads on new deals have remained stable [36][41] Question: Update on Medallia's performance? - Management stated there was no significant update on Medallia, and the acquisition by Qualtrics would not change the competitive dynamics significantly [46][47] Question: Outlook for dividends with falling base rates? - Management plans to maintain a competitive and sustainable dividend while monitoring the impact of base rates on earnings [53] Question: Quality of deals in the current market? - Management noted that the quality of deals has been good, with higher quality assets leading the M&A activity [62] Question: How much of the funding activity was from incumbent versus new borrowers? - Over 80% of funding activity was to incumbent borrowers, with a consistent trend observed in previous quarters [66] Question: Concerns about loan-to-value ratios? - Management clarified that the increase in LTV is marginal and reflects adjustments in enterprise values rather than a significant risk [72][73] Question: Will the premium of private credit over syndicated loans be maintained? - Management expressed confidence that the premium will be maintained due to the value private credit brings to the market [76]

Core Insights - Gray Television met Wall Street's revenue expectations for Q3 CY2025, reporting sales of $749 million, a 21.2% year-on-year decline [1][6] - The company's Q4 CY2025 revenue guidance of $774.5 million fell 4.8% short of analysts' estimates [1][6] - GAAP loss per share was $0.24, exceeding analysts' consensus estimates by 50% [1][6] Financial Performance - Revenue: $749 million vs analyst estimates of $746.1 million, reflecting a 21.2% year-on-year decline [6] - EPS (GAAP): -$0.24 vs analyst estimates of -$0.48, a 50% beat [6] - Adjusted EBITDA: $157 million vs analyst estimates of $138.8 million, representing a 21% margin and a 13.1% beat [6] - Revenue Guidance for Q4 CY2025: $774.5 million at the midpoint, below analyst estimates of $813.3 million [6] - Operating Margin: 13.6%, down from 26.3% in the same quarter last year [6] - Market Capitalization: $496.3 million [6] Management Insights - Management credited disciplined expense management and operational efficiency for outperforming consensus expectations, with operating expenses $17 million below guidance [3][5] - The company experienced higher-than-expected political ad revenue and early signs of improvement in core advertising categories [3] - Investments in local content, new sports partnerships, and digital initiatives are expected to support future growth [4][5] Strategic Initiatives - Gray Television is accelerating M&A efforts to acquire top-ranked local news stations in six new markets, aiming to create 11 new Big Four network duopolies [7] - Continued double-digit growth in legal advertising and high single-digit growth in financial services were noted, helping to counteract weakness in automotive advertising [7] - The Assembly Atlanta studio investment, totaling around $650 million, is expected to become a significant cash flow contributor over the next 12 to 24 months [8]

Financial Data and Key Metrics Changes - The net investment income per share for Q3 2025 was $0.40, with a net asset value (NAV) per share of $12.75, reflecting a decrease of 2.1% from the previous quarter's NAV, partially due to a $0.16 per share special dividend and markdowns on underperforming assets [7][8] - The adjusted NAV per share for Q3 2025, accounting for the supplemental dividend, was $12.71, a non-GAAP measure introduced due to changes in the dividend policy [7] - The company declared a fourth quarter base dividend of $0.32 per share, with a net debt-to-equity ratio of 1.17 as of September 30, 2025, compared to 1.12 as of June 30, 2025 [8][15] Business Line Data and Key Metrics Changes - New investment commitments during the quarter totaled approximately $470.6 million across 27 portfolio companies, marking the highest level of new commitments since Q4 2021 [9] - 100% of originations in the quarter were in first-lien loans, indicating a continued focus on maintaining exposure to the top of the capital structure [9] - Total investments at fair value were $3.2 billion, with 98.2% in senior secured loans and a weighted average yield of 10.3% at amortized cost, down from 10.7% in the previous quarter [12][13] Market Data and Key Metrics Changes - The M&A market showed resilience, with total dollar volumes in Q3 2025 being 40.9% higher year-over-year compared to Q3 2024, driven by renewed risk-on sentiment among investors and lower borrowing costs [3][4] - The company noted that broader credit dynamics remain a concern, but it is comfortable with risk dynamics in the private credit space due to the overall health of portfolio fundamentals [5] Company Strategy and Development Direction - The company has adjusted its dividend policy to position itself well in a lower yield environment, emphasizing credit selection as a key focus [4] - The integration of the platform in 2022 has allowed the company to evaluate and invest in high-quality opportunities across various market segments [11] - The company aims to leverage its proximity to the investment banking franchise as a competitive advantage in evaluating opportunities [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A activity being the start of a longer-term trend, driven by the need for private equity firms to exit existing portfolios and invest in new ones [22][23] - The company remains focused on maintaining its dividend and believes that fund managers will be rewarded for their credit selection in a lower-yielding environment [18] Other Important Information - The company repurchased over 2.1 million shares for $25.1 million during the quarter, which was NAV accretive [13] - The company issued $400 million of a five-year investment grade unsecured note with a coupon of 5.65%, which was oversubscribed [16] Q&A Session Summary Question: Thoughts on sustaining M&A activity into next year - Management believes the current M&A activity is the start of a longer-term trend, driven by the need for private equity firms to exit existing portfolios and invest in new ones [22][23] Question: Impact of increased activity on spreads - Management does not anticipate spreads to widen significantly in the near term, despite the increase in M&A activity [24] Question: Performance of non-accrual investment at Dental Brands - Management indicated that the non-accrual status was due to continued underperformance, but it represents a small exposure in the overall portfolio [25][26]