Group 1: Macy's - Macy's is an omnichannel retail organization operating stores, websites, and mobile applications, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Macy's current year earnings increased by 9.6% over the last 60 days [1] - Macy's shares gained 26.3% over the last three months compared to the S&P 500's gain of 3.6%, and the company has a Momentum Score of A [2] Group 2: Bunge Global - Bunge Global is an integrated global agribusiness and food company, with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Bunge Global's current year earnings increased by 4.8% over the last 60 days [2] - Bunge Global's shares gained 10.5% over the last three months compared to the S&P 500's gain of 3.6%, and the company has a Momentum Score of A [3] Group 3: Transportadora de Gas del Sur S.A. - Transportadora de Gas del Sur S.A. transports natural gas in Argentina and has a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Transportadora de Gas del Sur S.A.'s current year earnings increased by 34.3% over the last 60 days [3] - Transportadora de Gas del Sur S.A.'s shares gained 47.8% over the last three months compared to the S&P 500's gain of 3.6%, and the company has a Momentum Score of B [4]

Core Insights - Alico, Inc. will participate in the 28th Annual ICR Conference, with a fireside chat hosted by CEO John Kiernan on January 13, 2026 [1][2] Company Overview - Alico, Inc. is a Florida-based agribusiness and land management company with over 125 years of experience [3] - As of September 30, 2025, Alico operates approximately 49,537 acres across 8 Florida counties [3] - The company focuses on strategic land development opportunities and diversified agricultural operations, aiming to create long-term shareholder value while committing to responsible land stewardship and conservation [3]

Group 1: Company Highlights - McGraw Hill, Inc. (MH) has seen a 43% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, focusing on education solutions for preK-12, higher education, and professional learning [1] - Macy's (M) has experienced a 9.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, operating as an omnichannel retail organization [2] - Valero Energy (VLO), the largest independent refiner and marketer of petroleum products, has seen a 9.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, with a refining capacity of 3.1 million barrels per day [3] - Bunge Global SA (BG) has experienced a 4.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, operating as an integrated global agribusiness and food company [4] - Science Applications International (SAIC) has seen a 2.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, providing information technology and professional services primarily to the U.S. government [4]

Group 1 - Bunge Global SA (NYSE:BG) is recognized as one of the 15 Dividend Stocks with low payout ratios and strong upside potential [1] - Morgan Stanley upgraded Bunge to Overweight from Equal Weight, raising the price target to $120 from $95, citing improved risk and reward profile due to synergy optionality, particularly with Viterra [2] - The company reported Q3 2025 earnings per share of $0.86, down from $1.56 in Q3 2024, but adjusted EPS was $2.27, slightly down from $2.29 a year earlier, with adjusted segment EBIT rising to $924 million from $559 million [3] Group 2 - Year-to-date, Bunge generated approximately $1.2 billion in adjusted funds from operations and repurchased 6.7 million shares for $545 million, maintaining $386 million in retained cash flow [4] - The company benefits from a larger production footprint, especially in Argentina, which has led to higher processing volumes [4] - Bunge operates as a global agribusiness and food company, connecting farmers to end markets through handling agricultural commodities related to food, feed, and fuel [4]

Core Insights - The article discusses the importance of low payout ratios in dividend stocks and highlights companies with strong upside potential and sustainable dividends [1][2][3] Dividend Payout Ratios - A high payout ratio indicates that a large portion of earnings is distributed to shareholders, leaving less for reinvestment [1] - Historical data shows that companies in the second quintile of payout ratios (averaging 40%) have outperformed those in the first quintile (averaging 75%) over multiple decades [2] - Companies with lower payout ratios are less likely to cut dividends during earnings declines, as they have more margin for error [3] Investment Methodology - The selection process involved screening for companies with a 5-year average payout ratio below 60%, indicating a strong cash position [6] - Stocks were further filtered to include those with a minimum upside potential of 25% based on analysts' targets as of December 24 [6] - The final list included 15 companies favored by hedge funds, as per Insider Monkey's database for Q3 2025 [6][7] Company Highlights - **Houlihan Lokey, Inc. (NYSE:HLI)**: - 5-Year Average Payout Ratio: 40.94% - Upside Potential: 26.3% - Recent revenue of $659 million, up from $575 million year-over-year, with net income rising to $112 million [9][10][11] - **Weyerhaeuser Company (NYSE:WY)**: - 5-Year Average Payout Ratio: 59.1% - Upside Potential: 32.1% - Recent initiatives include a joint venture with Aymium to produce sustainable biocarbon, with plans to convert over 7 million tons of wood fiber annually [13][15][16][17] - **Bunge Global SA (NYSE:BG)**: - 5-Year Average Payout Ratio: 22.6% - Upside Potential: 33.2% - Recent earnings per share reported at $0.86, with adjusted segment EBIT rising to $924 million [18][20][21]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List due to significant downward revisions in earnings estimates Group 1: Company Specifics - Archer-Daniels-Midland Company (ADM) has seen its current year earnings estimate revised downward by 8.9% over the last 60 days [1] - Associated British Foods plc (ASBFY) has experienced an 18.2% downward revision in its current year earnings estimate over the last 60 days [1] - B&M European Value Retail S.A. (BMRRY) has had its current year earnings estimate revised downward by 18.6% over the last 60 days [2]

Economic Overview - The U.S. economy in 2025 experienced modest growth, with real GDP rebounding sharply in Q2, expanding by 3.8%, a 0.5-percentage-point upward revision driven by stronger consumer spending [1][2] - Real GDP growth for 2025 is projected at about 2%, indicating steady but below-trend expansion compared to historical averages [1] Labor Market and Inflation - The labor market showed signs of cooling, with unemployment rising to 4.6%, the highest level in several years, and wage growth trending lower, impacting household income [2] - Inflation remained above the Federal Reserve's 2% target, although price pressures eased slightly later in the year [2] Major Economic Trends - Key trends influencing economic performance included a tightening monetary policy that eased later in the year, high tariffs, policy uncertainty, and corporate investment in technology, particularly AI [3] - The overall economic landscape in 2025 was characterized by moderate growth, labor market softness, tariff-driven inflationary pressures, and structural shifts [3] Equity Market Performance - The equity markets showed moderate gains in 2025, with the S&P 500 returning 17.8%, the Dow Jones Industrial Average rising 13.9%, and the Nasdaq Composite rallying 21.7% [4] Outlook for 2026 - Heading into 2026, the U.S. economy is expected to maintain measured but durable growth, with real GDP growth projected to hover near 2% [8] - Inflation is anticipated to gradually moderate, allowing the Federal Reserve to adopt a more accommodative policy stance, potentially supporting credit demand, capital investment, and asset prices [8] Consumer and Business Investment - Consumer spending is likely to remain a stabilizing force, supported by solid household balance sheets and slowing price pressures, despite modest softening in labor market conditions [9] - Business investment, particularly in technology, automation, and AI infrastructure, is expected to be a key growth driver, offsetting slower cyclical momentum [10] Dividend Investing Insights - High-yield dividend stocks within the S&P 500 are seen as attractive for income-focused and total-return investors, especially in a stabilizing interest rate environment [11] - Dividend-paying equities are regaining appeal for their reliable cash flows while maintaining exposure to market upside [11] Selected High-Yield Dividend Stocks - **Invesco Ltd. (IVZ)**: Offers a quarterly dividend of 21 cents (3.11% yield), with a payout ratio of 44% and a five-year dividend growth rate of 7% [18][19] - **Johnson & Johnson (JNJ)**: Provides a quarterly dividend of $1.30 (2.52% yield), with a payout ratio of 50% and a five-year dividend growth rate of 5.39% [20][21] - **NiSource (NI)**: Pays a quarterly dividend of 287 cents (2.7% yield), with a payout ratio of 60% and a five-year dividend growth rate of 6.22% [22][23] - **Bunge Global SA (BG)**: Offers a quarterly dividend of 70 cents (3.06% yield), with a payout ratio of 37% and a five-year dividend growth rate of 8.58% [24] - **Morgan Stanley (MS)**: Provides a quarterly dividend of $1.00 (2.26% yield), with a payout ratio of 41% and a five-year dividend growth rate of 20.35% [25][26]

Core Insights - Bunge Global SA (BG) has a market capitalization of approximately $17.9 billion and operates as a significant player in the global agribusiness and food sector, connecting farmers to consumer markets worldwide [1][2] Company Overview - Bunge is classified as a "large-cap stock" due to its market cap exceeding $10 billion, serving as a crucial intermediary in global agricultural supply chains [2] - The company focuses on scale, vertically integrated processing, and resilience in response to commodity price volatility and changing global demand [2] Stock Performance - BG stock has decreased by 7.3% from its 52-week high of $99.55 recorded on October 27, while shares have increased by 10.2% over the last three months, outperforming the Dow Jones Industrial Average's rise of 5.2% during the same period [3] - Over the past 52 weeks, BG shares have surged by 14.1% and by 18.7% in 2025, compared to the Dow Jones Industrial Average's increase of 10.1% over the past year [4] Financial Results - On November 5, BG shares rose by 1.8% following the release of Q3 2025 results, with an adjusted EPS of $2.27 that exceeded expectations [5] - The acquisition of Viterra has significantly boosted volumes, resulting in a 67% increase in soy processing and refining profit, more than doubling softseed processing profit, and a 56% rise in grain merchandising and milling profit [5] - Bunge has reaffirmed its full-year adjusted EPS guidance of $7.30–$7.60 [5] Analyst Ratings - Among ten analysts covering BG stock, the consensus rating is a "Strong Buy," with a mean price target of $106, indicating a potential upside of 14.9% from current price levels [6]

Core Insights - The return of La Niña is causing significant weather disruptions globally, including deadly flooding in Asia and early snowstorms in the US [1][2] Economic Impact - Global losses during recent La Niña years have ranged from $258 billion to $329 billion, indicating a trend of increasing extreme weather-related damages [2] - La Niña is linked to lower agricultural yields for key crops like corn, rice, and wheat, which can affect global food supply and prices [6] - Energy demand typically rises in colder regions due to La Niña, impacting fuel consumption and utility operations [6] Regional Effects - In South and Southeast Asia, La Niña contributed to tropical cyclones and flooding that resulted in over 1,600 fatalities and at least $20 billion in damages [7] - Flooding in Vietnam and Thailand has caused over $16 billion in damage, with La Niña's influence on rainfall patterns being a contributing factor [8] - China faces risks to winter wheat production due to below-average temperatures associated with La Niña [9] Agricultural Sector - Palm oil producers in Southeast Asia may experience disruptions in harvesting due to increased rainfall, affecting output and extraction rates [10] - Brazil's soybean production is under scrutiny as La Niña could lead to reduced rainfall in southern growing regions, although current forecasts suggest no prolonged drought [16][17] Climate Dynamics - The current La Niña is the fifth occurrence in six years, suggesting a shift towards more frequent La Niña events compared to El Niño [5] - La Niña's impacts are being modified by global warming, which exacerbates extreme weather patterns [20] - The current La Niña is expected to peak soon, with conditions potentially returning to neutral, but the effects on global weather may persist for months [21]

Summary of The Andersons 2025 Investor Day Company Overview - **Company**: The Andersons (NasdaqGS:ANDE) - **Event**: 2025 Investor Day held on December 09, 2025 - **Key Focus**: Long-term growth strategy, business insights, and financial performance Core Messages and Strategic Insights 1. **Strengthened Company Position**: The Andersons is a materially stronger company with a seasoned team and deep expertise in agriculture and renewable fuels, poised for profitable growth [6][7][10] 2. **Diversified Portfolio**: The company has a balanced and diversified portfolio that has shown resilience through market cycles, particularly in North American agriculture and renewable supply chains [7][10] 3. **Renewables Growth Engine**: The renewables segment, particularly ethanol assets, has been a high-return business with ongoing investment opportunities, including a recent $425 million acquisition to enhance ethanol production [10][11] 4. **Disciplined Capital Allocation**: The Andersons employs a disciplined capital allocation strategy, leveraging consistent cash flows to drive long-term shareholder value [7][10] Financial Performance - **Q3 2025 Adjusted EPS**: $2.56 per share, with a target of $4.30 per share by the end of 2026 [11] - **Debt Management**: Long-term debt to EBITDA reduced by over 2.5 turns since 2020 while deploying $1 billion in capital [10] - **Earnings Power**: Demonstrated strong earnings power during the peak of the agricultural cycle in 2022 and 2023 [10] Business Segments Agribusiness 1. **Integrated Supply Chain**: The agribusiness segment connects producers to end users, trading over 800 million bushels of corn annually and supplying 165 million bushels to ethanol plants [13][14] 2. **Fertilizer and Grain Handling**: The company operates a network of grain elevators and fertilizer distribution, contributing 25%-30% of normalized EBITDA from fertilizers and 30%-35% from grain assets [17][19] 3. **Merchandising Expertise**: The asset-light merchandising model generates 35%-40% of normalized EBITDA, leveraging market analysis and logistics to optimize grain flows [20][22] Renewables 1. **Ethanol Production**: The Andersons operates four ethanol plants with a nameplate capacity of 393 million gallons, currently exceeding 500 million gallons in production [24][62] 2. **Co-Products**: The company maximizes revenue from co-products like dry distillers grains and corn oil, which contribute significantly to overall revenue [24][62] 3. **Market Position**: The renewables segment is positioned to benefit from low carbon fuel standards and the 45Z clean fuel production credits, enhancing profitability [27][60] Growth Strategy 1. **Macro Trends**: The Andersons is well-positioned to capitalize on favorable macro trends in energy and agriculture, focusing on organic growth and strategic acquisitions [30][31] 2. **Operational Excellence**: Continuous improvement and optimization of operations are key to driving efficiencies and cost savings [31][56] 3. **Customer-Centric Approach**: The company emphasizes a customer-first culture, enhancing relationships and delivering tailored solutions [54][55] Future Outlook - **Long-Term EPS Target**: A publicly stated target of $7 per share by the end of 2028 [33] - **Market Opportunities**: The Andersons aims to leverage its integrated capabilities and market knowledge to capture growth in both agribusiness and renewables [60][63] Additional Insights - **Sustainability Initiatives**: The company is actively developing sustainability programs and regenerative farming practices to meet evolving consumer and stakeholder requirements [47] - **Export Infrastructure**: Investments in export facilities, such as the Port of Houston, are aimed at enhancing market access and efficiency [53][46] This summary encapsulates the key points discussed during The Andersons 2025 Investor Day, highlighting the company's strategic direction, financial performance, and growth opportunities in the agribusiness and renewables sectors.