Group 1: Allstate Corporation (ALL) - Allstate Corporation is an insurance company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased nearly 27% over the last 60 days [1] - The company has a PEG ratio of 0.41 compared to the industry average of 1.71, indicating strong growth potential [1] - Allstate possesses a Growth Score of B [1] Group 2: Great Lakes Dredge & Dock Corporation (GLDD) - Great Lakes Dredge & Dock Corporation is a dredging services company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 7.8% over the last 60 days [2] - The company has a PEG ratio of 0.96 compared to the industry average of 2.79, suggesting favorable growth characteristics [2] - Great Lakes Dredge & Dock has a Growth Score of A [2] Group 3: Alarm.com Holdings, Inc. (ALRM) - Alarm.com Holdings, Inc. is an IoT and solutions company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 5.5% over the last 60 days [3] - The company has a PEG ratio of 1.63 compared to the industry average of 3.13, indicating a competitive growth outlook [3] - Alarm.com possesses a Growth Score of B [3]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors to consider on November 25 Company Summaries - **The Allstate Corporation (ALL)**: - Zacks Rank 1 - Current year earnings estimate increased by 30.4% over the last 60 days - PEG ratio of 0.40 compared to the industry average of 1.71 - Growth Score of B [1] - **Great Lakes Dredge & Dock Corporation (GLDD)**: - Zacks Rank 1 - Current year earnings estimate increased by 7.8% over the last 60 days - PEG ratio of 0.90 compared to the industry average of 2.59 - Growth Score of A [2] - **Alarm.com Holdings, Inc. (ALRM)**: - Zacks Rank 1 - Current year earnings estimate increased by 5.5% over the last 60 days - PEG ratio of 1.57 compared to the industry average of 2.94 - Growth Score of B [3]

Group 1: Sanmina (SANM) - Sanmina is a global provider of electronics contract manufacturing services [1] - The company has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 38.9% over the last 60 days [1] - Sanmina has a PEG ratio of 0.64 compared to 1.83 for the industry [1] - The company possesses a Growth Score of A [1] Group 2: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US [2] - The company has a Zacks Rank 1 (Strong Buy) [2] - The Zacks Consensus Estimate for its current year earnings has increased by 7.8% over the last 60 days [2] - Great Lakes Dredge & Dock has a PEG ratio of 0.90 compared to 2.55 for the industry [2] - The company possesses a Growth Score of A [2] Group 3: Allstate (ALL) - Allstate is the third-largest property-casualty insurer and the largest publicly-held personal lines carrier in the U.S. [3] - The company has a Zacks Rank 1 (Strong Buy) [3] - The Zacks Consensus Estimate for its current year earnings has increased by 26% over the last 60 days [3] - Allstate has a PEG ratio of 0.41 compared to 1.60 for the industry [3] - The company possesses a Growth Score of B [3]

Group 1: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, reclaiming land from the ocean, and renourishing storm-damaged coastlines [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 7.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Great Lakes Dredge & Dock has a PEG ratio of 0.91, significantly lower than the industry average of 4.78, and possesses a Growth Score of A [2] Group 2: Skillsoft (SKIL) - Skillsoft provides digital learning, training, and talent solutions, and also carries a Zacks Rank of 1 [2] - The company has experienced a remarkable 519.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Skillsoft has a PEG ratio of 0.29, which is slightly lower than the industry average of 0.31, and has a Growth Score of B [2] Group 3: Alarm.com (ALRM) - Alarm.com offers interactive security solutions for home and business owners and holds a Zacks Rank of 1 [3] - The company has seen a 5.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Alarm.com has a PEG ratio of 1.52, compared to the industry average of 3.10, and possesses a Growth Score of B [3]

Core Insights - Value investors traditionally use the price-to-earnings (P/E) ratio to identify value stocks, but for loss-making companies, the price-to-sales (P/S) ratio is more relevant. The price-to-book (P/B) ratio is also a useful tool for identifying undervalued stocks with high return potential [1][5][9]. Valuation Ratios - The P/B ratio is calculated as market capitalization divided by book value of equity, helping to identify low-priced stocks with high growth prospects [2][5]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [5][6]. - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but can be misleading for companies with high R&D expenses or significant debt [8]. Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4]. Screening Parameters - Stocks with a P/B ratio lower than the industry median are considered to have potential for price appreciation [11]. - Additional screening criteria include a P/S ratio below the industry median, a P/E ratio below the industry median, a PEG ratio less than 1, a current price of at least $5, an average 20-day volume of at least 100,000, and a Zacks Rank of 1 or 2 [12][13][14]. Selected Stocks - Five stocks identified with low P/B ratios and solid growth potential include: - **StoneCo (STNE)**: Financial technology solutions provider with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 2 [15]. - **Great Lakes Dredge & Dock (GLDD)**: Largest U.S. dredging services provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 1 [16]. - **EnerSys (ENS)**: Manufacturer of industrial batteries with a projected EPS growth rate of 15.0% and a Zacks Rank of 2 [17]. - **MillerKnoll (MLKN)**: Design solutions provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 2 [17]. - **Keros Therapeutics (KROS)**: Clinical-stage biotech with a projected EPS growth rate of 23.6% and a Zacks Rank of 1 [18].

Market Overview - The S&P 500 dropped 0.28% to 6,735.11, the Nasdaq slipped 0.08% to 23,024.63, and the Dow fell 243.36 points, or 0.52%, closing at 46,358.42 due to concerns over the ongoing U.S. government shutdown [1] - Investors are closely monitoring the potential impacts of the shutdown on economic activity and corporate results, leading to a cautious market sentiment [1] Value Investing Insights - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric for assessing value stocks, with a lower P/CF indicating better value and strong cash generation potential [2][3] - Analysts emphasize that cash flow is a more reliable indicator of a company's financial health compared to earnings, which can be subject to manipulation [4] Selection Criteria for Value Stocks - Parameters for selecting true-value stocks include: - P/CF less than or equal to the industry median - Price greater than or equal to $5 - Average 20-Day Volume greater than 100,000 - P/E using (F1) less than or equal to the industry median [7][8] - Additional metrics include P/B, P/S, PEG ratios, and Zacks Rank to avoid value traps and identify stocks with strong upside potential [6][10] Featured Value Stocks - StoneCo Ltd. (STNE) has a trailing four-quarter earnings surprise of 11.5% and a Value Score of B, with expected sales and EPS growth of 9.8% and 20% respectively [12][11] - Integer Holdings Corporation (ITGR) has a trailing four-quarter earnings surprise of 1.3% and a Value Score of B, with expected sales and EPS growth of 7.8% and 20.4% respectively [13][12] - Universal Health Services, Inc. (UHS) has a trailing four-quarter earnings surprise of 9.4% and a Value Score of A, with expected sales and EPS growth of 8.5% and 23% respectively [15][14] - Great Lakes Dredge & Dock Corporation (GLDD) has a trailing four-quarter earnings surprise of 45.3% and a Value Score of A, with expected sales and EPS growth of 9% and 21.4% respectively [16][15]

Core Insights - The primary purpose of a business is to generate profits for reinvestment or shareholder rewards, with net profit margin being a key metric for measuring profitability [1][3] - A higher net profit margin indicates a company's efficiency in converting sales into profits and reflects its operational management [2][4] Net Profit Margin Analysis - Net profit margin is calculated as Net Profit/Sales * 100, representing the amount retained after all expenses [3] - A strong net profit margin attracts investors and skilled employees, providing a competitive edge over peers [4] Pros and Cons of Net Profit Margin - Net profit margin offers clarity on a company's business model, including pricing, cost structure, and efficiency, making it a preferred metric for investors [5] - However, the metric varies significantly across industries, and differences in accounting treatments can complicate comparisons [6] Investment Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are crucial for maximizing returns [7] - Screening parameters include a net margin of at least 0%, positive EPS growth, and a broker rating of 1, indicating strong bullishness [8] Company Performance Highlights - InfuSystem Holdings (INFU), Century Aluminum Company (CENX), Remitly Global (RELY), and Great Lakes Dredge & Dock (GLDD) exhibit strong net margins and upward EPS revisions for 2025, all holding a Zacks Rank of 1 [9][10] - INFU's 2025 earnings estimate was revised upward by 160% to $0.26 per share, with an average surprise of 79.2% in recent quarters [11][12] - CENX's earnings estimate increased by 11.6% to $2.30 per share, with an average surprise of -15.4% [12][13] - RELY's earnings estimate rose by $0.03 to $0.12 per share, consistently beating estimates with an average surprise of 132.9% [13][14] - GLDD's earnings estimate increased by $0.06 to $1.02 per share, with an average surprise of 45.3% [15][16]

Group 1: Montrose Environmental Group (MEG) - Montrose Environmental Group provides environmental services primarily in the United States and has a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 103.03% over the last 60 days [1] - The company has a PEG ratio of 1.22, significantly lower than the industry average of 5.09, and possesses a Growth Score of A [2] Group 2: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [2] - The company also carries a Zacks Rank of 1 and has seen a 6.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Great Lakes Dredge & Dock has a PEG ratio of 0.99 compared to the industry average of 5.07, and it has a Growth Score of B [3] Group 3: KT (KT) - KT provides a range of telecommunication services, including mobile telecommunications, telephone services, fixed-line, and VoIP [3] - The company holds a Zacks Rank of 1 and has experienced a 5.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - KT has a PEG ratio of 0.14, which is lower than the industry average of 0.20, and it has a Growth Score of B [4]

Group 1: Great Lakes Dredge & Dock (GLDD) - The company is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [1] - It has a Zacks Rank of 1 (Strong Buy) and a 39.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - The PEG ratio is 1.05, significantly lower than the industry average of 7.79, and it possesses a Growth Score of A [2] Group 2: Intercorp Financial Services (IFS) - This company provides financial products and services and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 2.6% over the last 60 days [2] - It has a PEG ratio of 0.36 compared to the industry average of 1.51, with a Growth Score of B [2] Group 3: European Wax Center (EWCZ) - The company operates as a personal care franchise offering wax services and proprietary skincare products [3] - It holds a Zacks Rank of 1 and has seen a remarkable 96.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - The PEG ratio stands at 0.51, well below the industry average of 3.65, and it has a Growth Score of B [3]

Group 1: European Wax Center, Inc. (EWCZ) - European Wax Center is a franchisor and operator of out-of-home waxing services with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 96.8% over the last 60 days [1] - The company has a PEG ratio of 0.50 compared to the industry average of 3.50 and possesses a Growth Score of B [1] Group 2: Dell Technologies Inc. (DELL) - Dell Technologies is an information technology solutions, products, and services company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 6.1% over the last 60 days [2] - The company has a PEG ratio of 1.02 compared to the industry average of 1.32 and possesses a Growth Score of B [2] Group 3: Great Lakes Dredge & Dock Corporation (GLDD) - Great Lakes Dredge & Dock is a dredging services company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 39.1% over the last 60 days [3] - The company has a PEG ratio of 1.03 compared to the industry average of 7.34 and possesses a Growth Score of A [3]