Market Overview - The Dow and S&P 500 indexes advanced 1.3% and 0.2%, respectively, reaching all-time high closings, while the Nasdaq Composite fell 0.3% [1] - Market participants are shifting from technology to rate-sensitive cyclical sectors such as utilities, industrials, financials, energy, materials, and health care due to the recent Fed rate cut and high valuations in the tech sector [2] Recommended Stocks - Five non-tech large-cap stocks are recommended, currently trading below their 52-week highs and at attractive valuations: On Holding AG (ONON), Lennar Corp. (LEN), Jefferies Financial Group Inc. (JEF), Omnicom Group Inc. (OMC), and Thomson Reuters Corp. (TRI) [3][9] On Holding AG (ONON) - On Holding specializes in footwear and sports apparel, offering products through various channels [6] - Expected revenue and earnings growth rates for next year are 20.6% and 79.3%, respectively, with a 22% improvement in earnings estimates over the last 30 days [7] Lennar Corp. (LEN) - Engaged in homebuilding and financial services, focusing on tech-enabled manufacturing to enhance efficiency and reduce costs [8] - Expected revenue and earnings growth rates for next year are 1.9% and 11.1%, respectively, with a 0.2% improvement in earnings estimates over the last week [10] Jefferies Financial Group Inc. (JEF) - Gained market share in investment banking without significantly expanding its balance sheet, which is expected to drive top-line growth [11] - Expected revenue and earnings growth rates for next year are 16.5% and 59.5%, respectively, with a 0.8% improvement in earnings estimates over the last week [13] Omnicom Group Inc. (OMC) - Operates a diverse portfolio in traditional and digital marketing, enhancing revenue stability [14] - Expected revenue and earnings growth rates for next year are 3.1% and 8.8%, respectively, with a 2.4% improvement in earnings estimates over the last 30 days [16] Thomson Reuters Corp. (TRI) - A leading provider of information and technology across various sectors, including law, tax, and financial services [17] - Expected revenue and earnings growth rates for next year are 7.6% and 12.4%, respectively, with a 2.1% improvement in earnings estimates over the last 60 days [18]

Core Insights - PayPal (PYPL) stock has decreased by 12.8% over the past 5 trading days, and historical data suggests it struggles to recover within a year after significant drops [2][3] - The company operates a technology platform facilitating digital payments in approximately 200 markets and 100 currencies globally [4] - PayPal is valued at $64 billion with $32 billion in revenue, currently trading at $66.05, and has shown a revenue growth of 4.1% over the last 12 months [5] Financial Metrics - Operating margin stands at 19.1%, with a Debt to Equity ratio of 0.18 and a Cash to Assets ratio of 0.13 [5] - The stock is trading at a P/E multiple of 13.7 and a P/EBIT multiple of 10.2 [5] - The stock has experienced a median return of -33.8% within a year after sharp declines since 2010 [5] Historical Performance - PYPL stock has dropped 83.7% from a peak of $308.53 on July 23, 2021, to $50.39 on October 27, 2023, compared to a peak-to-trough decline of 25.4% for the S&P 500 [6] - The highest price reached since the decline was $91.81 on January 20, 2025, with the current trading price at $66.05 [6] - Previous declines include a 31.2% drop from $123.91 on February 19, 2020, to $85.26 on March 23, 2020, with a full recovery by May 5, 2020 [8]

Core Insights - Sweetgreen's stock has significantly declined from its IPO peak, with current trading around $8, attributed to cooling same-store sales growth, rising costs, and increased competition [4][11] - The company is facing challenges in maintaining its growth trajectory, with expectations of a decline in same-store sales and profit margins in the near term [10][12] Company Performance - At the time of its IPO, Sweetgreen experienced strong same-store sales growth, rapid new store openings, and a high ratio of digital orders, serving 1.35 million customers across 130 locations [2][3] - The initial growth was driven by popularity among office workers in urban areas, but the shift to remote work post-pandemic has negatively impacted store visits [6] - Despite challenges, Sweetgreen's restaurant-level profit margins expanded due to price increases and automation efforts, with adjusted EBITDA turning positive in 2024 [7][8] Future Outlook - For 2025, Sweetgreen anticipates total revenue growth of 3% to 6%, primarily from new restaurant openings rather than same-store sales growth [9] - The company expects same-store sales to decline by 4% to 6% and profit margins to dip to 17.5%, indicating potential difficulties in sustaining growth [10] - Sweetgreen's enterprise value stands at $803.5 million, with a high valuation of 73 times this year's adjusted EBITDA, compared to Chipotle's 22 times [11]

Group 1 - Chewy reported an unexpected rise in costs that negatively impacted its earnings per share [1] - Investors reacted unfavorably to the news, leading to a decline in stock prices [1]

Core Viewpoint - Nike's sales are experiencing a decline across all global markets as the management team faces challenges in mitigating the impact [1] Group 1 - The decline in sales is noted in every part of the world, indicating a widespread issue for the company [1] - The management team is actively working to limit the damage caused by the declining sales [1]