Core Viewpoint - Despite high market uncertainty, certain consumer stocks are still considered undervalued and have potential for long-term gains [1] Group 1: Conagra Brands - Conagra Brands has seen a rally since early 2026 but remains down over 20% in the past year due to inflation and changing consumer habits [4] - The company has initiated "Project Catalyst," an AI-based initiative aimed at revamping its core business, though its success remains to be seen [5] - Potential recovery catalysts include selling underperforming brands and acquiring faster-growing ones, alongside a high dividend yield of 7.6% at current prices [6] Group 2: Macy's - Macy's shares have surged nearly 75% over the past six months due to cost-cutting measures, store closures, and targeting affluent customers [7] - The stock trades at a low valuation of 12 times forward earnings compared to competitors like Kohl's at nearly 20 times [8] - The recent bankruptcy of competitor Saks Global may provide Macy's with further opportunities for valuation expansion [9] Group 3: Signet Jewelers - Signet Jewelers' shares have increased by 80% over the past year, driven by successful changes under CEO J.K. Symancyk [10] - The company has embraced lab-grown diamonds and differentiated its retail brands, leading to better-than-expected quarterly results, although earnings growth for the fiscal year is estimated at only 4% [11] - Forecasts for the current fiscal year suggest earnings growth could reach 19.7%, indicating potential for valuation expansion from its current low of 8.5 times forward earnings [12]

Market Overview - The recent CPI data came in well below expectations, particularly the core CPI reading, which is significant as two-thirds of the basket consists of core services [1][2] - Historical data indicates a 73% chance of a Santa Claus rally occurring in the last five trading days of the year and the first two trading days of the following year [2] Economic Outlook - The market has been moving sideways, but there is potential for a year-end push, with confidence in economic and earnings growth heading into 2026 [3] - Earnings growth is expected to be in double digits for the upcoming year, driven by earnings growth and valuation expansion [3] Sector Analysis - There is limited scope for valuation expansion in the tech and growth sectors, but opportunities exist in other market segments outside the major tech companies [4] - Preferred sectors for investment include healthcare, industrials, and consumer discretionary, with a positive outlook for these areas heading into 2026 [4] Consumer Behavior - The current environment of lowering interest rates by the Fed is favorable for consumers, particularly impacting mortgage rates and benefiting high middle and high-income consumers [6] - The high middle and high-income consumer segment is crucial for driving overall economic activity [6]

Let's talk a bit more about the data this morning in the market with Mona Mahajin. Edward Jones, head of investment strategy, joins us here at Post9. Always good to see you.Welcome. Happy holidays. Um, you think there's time for a rally to show up before you're in.>> You know, look, um, Santa Claus came a little bit to town this morning. We enjoyed seeing that CPI print come in well below expectations. What particularly caught our eye was the core CPI reading.Nice to see 2.6%. You know, keep in mind twothir ...

Core Viewpoint - MGM Resorts International has shown resilience despite challenges in the Las Vegas tourism sector, with potential for a strong performance in 2026 [1][2]. Financial Performance - For the nine-month period ending September 30, 2025, MGM reported essentially zero revenue growth compared to the same period in 2024, reflecting weak results from Las Vegas Strip operations [5]. - The company experienced a 4.9% drop in adjusted EBITDA for the same nine-month period, while Caesars Entertainment reported a 4.2% decline [6]. Market Position - MGM's stock has underperformed compared to the S&P 500, but it is currently up 2.57% year-to-date [2]. - MGM trades at a forward P/E ratio of 15, significantly lower than Caesars' 29, indicating potential for valuation expansion [8]. Future Outlook - Analysts have a wide range of earnings forecasts for MGM in 2026, with estimates ranging from $0.30 to $3.31 per share [8]. - Positive developments, such as improved Las Vegas Strip results and growth in BetMGM and MGM China, could drive a rebound in stock valuation [9][10].