Core Insights - The article discusses the performance of value stocks, particularly those that pay dividends, highlighting their historical outperformance compared to growth stocks [2][4]. Value Stocks Performance - Value stocks, defined by low price-to-book ratios, have outperformed growth stocks by an average of 2.5% annually since 1926 [2]. - The trend of value stocks outperforming growth stocks was disrupted during the global financial crisis from 2007 to 2020, but value stocks regained some traction in 2020 before losing ground again in late 2022 [2]. Investment Strategy - Joseph H. Davis from Vanguard emphasizes the importance of broad diversification and focusing on undervalued stocks to mitigate risks associated with market transformations, such as those driven by artificial intelligence [3]. Methodology for Stock Selection - The article utilizes Insider Monkey's Q2 2025 database to identify dividend stocks with forward P/E ratios below 25 as of September 26, ranking them based on hedge fund interest [6]. Company Highlights - **Eli Lilly and Company (NYSE: LLY)** - Forward P/E as of September 26: 23.70 - Major revenue drivers include Mounjaro, Zepbound, and Verzenio, which contributed to 65% of Q2 revenue of $15.6 billion, with growth rates between 12% and 172% [9]. - R&D expenses increased by 23% year-over-year to $3.3 billion, representing over 21% of revenue [10]. - The company has raised dividends for 11 consecutive years, currently offering $1.50 per share with a yield of 0.83% [11]. - **Abbott Laboratories (NYSE: ABT)** - Forward P/E as of September 26: 23.42 - Declared a quarterly dividend of $0.59 per share, maintaining a 53-year streak of dividend increases, with a yield of 1.77% [13]. - The FreeStyle Libre glucose monitoring system has become a significant growth driver despite a decline in COVID-19 test sales [14]. - **Illinois Tool Works Inc. (NYSE: ITW)** - Forward P/E as of September 26: 22.47 - Focuses on efficiency and customer-driven innovation, with a strategy that emphasizes operational improvements and disciplined portfolio management [15][16]. - Announced a 7.3% increase in its quarterly dividend to $1.61 per share, extending its dividend growth streak to 53 years, with a yield of 2.47% [17].

Economic Overview - Consumer spending in August was stronger than expected, with a 0.6% increase, and spending adjusted for inflation rose by 0.4%, indicating resilience despite inflationary pressures [7][12] - The Dow Jones Industrial Average gained over 9% and the Nasdaq Composite rose 23% this year, driven by significant AI spending and strong performance from industrial and communications sectors [3][4] - Gross domestic product (GDP) grew at a 3.8% annualized pace in Q2, revised up by 0.5 percentage points, with the Atlanta Fed raising its Q3 GDP tracking estimate to 3.9% [11] Consumer Sentiment - Despite the stock market's rise, consumer sentiment has been declining, with a 23% drop since January, particularly affecting those without significant stock holdings [4][5] - The top 10% of earners in the U.S. own 87% of the stock market, which contributes to a disparity in economic sentiment among different income groups [5][6] Inflation and Federal Reserve Actions - The annual inflation rate remains above the Federal Reserve's 2% target, with core inflation at 2.9%, but monthly increases align with forecasts, suggesting a potential rate cut in October [8] - Concerns about stock market valuations persist, with the S&P 500 trading at 22.5 times expected earnings, significantly above historical averages [6] Economic Stability and Risks - Recent economic data indicates few recession pressures, with durable goods orders unexpectedly increasing and new home sales surging by 20% [12] - The economy is described as being on a "knife's edge," with high inflation and interest rates creating uncertainty, particularly for consumers not benefiting from stock market gains [13][14]

Company Overview - ITT Inc. is a mid-cap industrial compounder with a diverse portfolio in essential markets such as auto brake pads, rail safety components, industrial pumps and valves, and connectivity/control devices [2] - The company is focused on operational excellence, margin expansion, and strategic mergers and acquisitions (M&A) to drive growth [2] Growth Strategy - ITT's growth strategy emphasizes productivity gains, value-based pricing, and operating leverage as volumes increase [3] - The company is shifting its revenue mix from cyclical auto original equipment (OE) to higher-margin niche industrial components, particularly in industrial flow and aerospace/defense connectors [3] - ITT aims to achieve over $11 in earnings per share (EPS) by 2030, with potential to exceed $12 EPS through planned ~$600 million in annual M&A and share repurchases [3] Financial Performance - ITT has a return on invested capital (ROIC) around 20% and free cash flow margins nearing 15% [4] - The company is positioned for a potential re-rating towards peers like Ingersoll, suggesting a price-to-earnings (P/E) ratio of 24–25x next twelve months (NTM) [4] - This could imply total returns of 20–25% internal rate of return (IRR) even before considering M&A benefits [4] Management and Market Position - ITT is supported by a capable management team with a strong track record in operational and financial execution [4] - The disciplined M&A approach, as seen in acquisitions like kSARIA and Svanehoj, enhances both earnings and strategic positioning [4] - The company presents a compelling opportunity for investors seeking steady industrial growth with multiple avenues for margin and value expansion [4]

Group 1 - European shares experienced a decline, with the Stoxx 600 index falling by 0.2% in early trading, while the Dax decreased by 0.3% and the FTSE 100 dropped by 0.2% [2][3] - The UK labor market data indicated an unemployment rate of 4.7% in July, which is the highest in four years, contributing to investor concerns [2] - A positive indicator for the euro zone was the 0.3% increase in industrial output for August compared to the previous month, suggesting resilience in the economy despite U.S. tariffs [3]

Financial Data and Key Metrics Changes - Nordson reported sales of $742 million for Q3 2025, a 12% increase from $662 million in Q3 2024, with the Atrion acquisition contributing 8% to growth [11][12] - Adjusted earnings per share increased by 13% to $2.73, exceeding the midpoint of guidance and reflecting strong operational execution [14] - EBITDA reached $239 million, representing a 15% increase year-over-year, with a margin improvement of 70 basis points to 32% of sales [12][14] Business Segment Data and Key Metrics Changes - Industrial Precision Solutions (IPS) sales were $351 million, up 1% year-over-year, with organic sales down 2% but benefiting from a 3% favorable currency impact [15] - Medical and Fluid Solutions sales increased by 32% to $219 million, driven by the Atrion acquisition, which contributed $52 million [16] - Advanced Technology Solutions (ATS) sales rose 17% to $171 million, with a 15% organic sales increase driven by demand in electronics dispense product lines [17] Market Data and Key Metrics Changes - The IPS segment is seeing stable demand in packaging and nonwoven markets, with precision agriculture demand improving in Europe and South America [20] - The medical segment is returning to growth, with high single-digit growth in medical fluid components and normalization in interventional solutions [21] - ATS is experiencing strong order entry and backlog, particularly in semiconductor packaging investments and high-reliability electronics [22][23] Company Strategy and Development Direction - The company is focused on operational excellence and integration of the Atrion acquisition, which has exceeded expectations [7][26] - Nordson's NBS Next framework is driving new product development and operational efficiency, positioning the company for long-term growth [22][26] - The company plans to divest the medical contract manufacturing portion to focus on higher-value proprietary medical components [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted mixed market conditions but expressed confidence in capitalizing on profitable growth opportunities [19] - The company expects to be slightly below the midpoint of full-year sales guidance, while earnings are expected to be slightly better than the midpoint due to strong operational execution [29] - Management highlighted ongoing uncertainties in the geopolitical and trade environment but remains committed to delivering results [76] Other Important Information - Free cash flow reached a record $226 million, with a cash flow conversion rate of 180% of net income [8][18] - The company reduced net debt by over $100 million and repurchased over $70 million in shares during the quarter [18][28] - A new share repurchase authorization of $500 million was approved, bringing the total remaining authorization to approximately $800 million [28] Q&A Session Summary Question: Can you provide insights on order momentum across businesses, particularly ATS? - Management indicated stable demand across businesses, with ATS showing good order stability despite some lumpiness [36][39] Question: What are the expectations for ATS margins and growth? - ATS is expected to maintain strong incremental performance, with margins around 24% to 25% in the absence of significant system demand increases [105][106] Question: How does the company view the M&A funnel and share repurchase strategy? - The company maintains a balanced capital allocation strategy, with a healthy M&A pipeline while continuing share repurchases due to favorable market conditions [63][66] Question: What is the outlook for organic sales in Q4? - Organic sales are expected to be flat to slightly down year-over-year in Q4, primarily due to tough comparisons from the previous year [102][104]

Summary of Conference Call Notes Industry Overview - The focus is on the **Multi-Industry** sector in **North America** with specific attention to the impact of **Trump 2.0 tariffs** on pricing dynamics [1][7][75]. Key Insights - **Price Dynamics**: The year-to-date (YTD) change in Producer Price Index (PPI) by category indicates that certain verticals are better positioned to sustain price increases into Q3 compared to others [2][4]. - **Industrial Sector Performance**: Despite positive Q2 updates, US Industrials experienced a de-rating during earnings season, suggesting challenges in maintaining premium valuations observed earlier in July [4][9]. - **Pricing Power**: The report emphasizes that US Industrial pricing power is an underappreciated factor contributing to operational durability, which is expected to positively influence revisions and valuations in upcoming quarters [18]. - **Profitability from Tariffs**: Companies that capitalized on Trump 1.0 tariffs are now benefiting from excess backlog and improved value addition, which is expected to support pricing power in the second half of the year [9][18]. Notable Verticals - The strongest price increases are seen in sectors such as **Switchgear, Welding, Valves, Electrical Equipment, Pumps + Compressors, HVACR, Non-Residential Lighting, and Industrial Controls**. Companies like **Eaton (ETN), Acuity (AYI), Hubbell (HUBB), Rockwell (ROK), and others** are highlighted as favorable due to their pricing strategies [4][18]. - **Fastener PPI Data**: There is a noted disconnect between the muted Fastener PPI data and the strength observed in Fastenal (FAST), indicating potential market anomalies [4]. Historical Context - The analysis includes a review of pricing changes during the **2021-22 hyperinflation period**, revealing that no verticals have given back price increases in 2023-24 despite commodity deflation and a prolonged manufacturing recession [16][18]. Future Outlook - The expectation is that companies capable of ramping up volumes in the second half of the year will experience multiple expansions, indicating a more durable momentum into 2026 [9]. - The report suggests that the enhanced value addition and reshoring activities in the US will further support pricing power and profitability for the best-positioned companies [18]. Additional Considerations - The report includes a caution regarding the need for positive revisions to drive further upside in stock valuations, emphasizing that companies pushing the most price will likely fare better [4][9]. - The document also contains various disclosures regarding potential conflicts of interest and the investment banking relationships of Morgan Stanley with the companies mentioned [6][28][31]. This summary encapsulates the critical insights and data points from the conference call, providing a comprehensive overview of the current state and future outlook of the Multi-Industry sector in North America.

Company Overview - The Timken Company (NYSE: TKR) is a global industrial manufacturer specializing in bearings, power transmission products, power systems, and engineered steel solutions [1] - The company serves various industries, including automotive, aerospace, and heavy machinery [1] - Timken operates through two segments: Engineered [1] Analyst Background - The analyst has a master's degree in Analytics from Northwestern University and a bachelor's degree in Accounting [1] - With over 10 years of experience in the investment arena, the analyst has progressed from an analyst role to a management position [1] - Dividend investing is a personal interest of the analyst, who aims to share insights with the Seeking Alpha community [1]

Core Insights - SecureTech Innovations, Inc. has engaged Craft Capital Management as its exclusive investment banking partner to enhance its capital markets strategy, including bridge financing, uplisting to a national securities exchange, and strategic acquisitions [1][2][4] - The partnership aims to strengthen SecureTech's balance sheet and provide working capital for near-term acquisition opportunities, supporting costs associated with its planned uplist to NYSE or NASDAQ [2][4] - SecureTech has recently acquired AI UltraProd, a leader in AI-powered industrial manufacturing, and is exploring additional M&A opportunities to expand its market presence and enhance shareholder value [3][4] Company Overview - SecureTech Innovations, Inc. is a technology company focused on artificial intelligence, industrial 3D printing, cybersecurity, and digital infrastructure solutions [5] - The company's portfolio includes AI UltraProd, Piranha Blockchain, and Top Kontrol, which address various technological challenges and enhance security [5] Leadership Commentary - J. Scott Sitra, President and CEO of SecureTech, emphasized that engaging Craft Capital Management is a pivotal step in executing the company's strategic roadmap for transformative growth and increased shareholder value [4] - Mackey McFarlane, Head Investment Banker at Craft Capital Management, expressed excitement about partnering with SecureTech, highlighting the company's innovative portfolio and scalable business model [4]

Core Viewpoint - Tungray Technologies Inc has appointed Mr. Qi (Henry) Guo as Chief Financial Officer, succeeding Ms. Nina Hangyu Qian, who will remain with the company as Senior Director of Finance [1] Company Overview - Tungray Technologies Inc is an Engineer-to-Order (ETO) company that provides customized industrial manufacturing solutions to original equipment manufacturers (OEMs) in various industries, including semiconductors, printers, electronics, and home appliances [4] - The company has over two decades of experience in delivering quality customized industrial solutions tailored to meet unique customer needs and specifications [4] Leadership Appointment - Mr. Guo brings over 20 years of experience in corporate finance, investment banking, equity research, and investment management, along with a decade of technical expertise in Silicon Valley's high-tech industry [2] - Prior to joining Tungray, Mr. Guo served as Head of Capital Markets at AIME Capital Markets, LLC, and held positions at US Tiger Securities, Inc. and M Science LLC [2] - Mr. Guo has a strong educational background, holding an M.B.A. from the University of California, Berkeley, an M.S. in Electrical Engineering from Santa Clara University, and a B.S. in Engineering from Harbin Institute of Technology, China [3] Executive Comments - The CEO of Tungray, Mr. Wanjun Yao, expressed excitement about Mr. Guo's appointment, highlighting his extensive experience in capital markets and technology-driven businesses as a strength for the company's financial management and long-term growth initiatives [4]

Financial Performance - Revenue reached $139.6 million, a 5% increase quarter-over-quarter (QoQ) and a 3% increase year-over-year (YoY)[5] - Net income was $5.6 million, showing a significant increase of 58% QoQ and 388% YoY[5] - Gross margin hit a record 33.2%, up 100 basis points (bps) QoQ and 330 bps YoY[5] - Operating margin improved to 8.4%, up 180 bps QoQ and 480 bps YoY[5] - Cash from operations surged to $24.5 million, a 76% increase QoQ and 197% YoY[5] Debt Reduction and Cost Savings - Debt, net of cash, decreased by $35.8 million year-to-date (YTD) to $152.3 million[5] - The company achieved $10 million in annualized savings in 2024 and aims to reduce costs by another $6 to $7 million in 2025[7] Market Segment Performance - Aerospace & Defense (A&D) sales increased by 13% YoY[11] - Medical sales increased by 4% YoY, driven by surgical instrument demand[11] - Industrial sales increased by 3% YoY, with strength in power quality solutions for HVAC and data centers[11] - Vehicle sales decreased by 7% YoY due to powersports softness[11]