Market Overview - Value stocks have shown signs of life, outperforming the market in the current quarter, with S&P value leading [1][2] - Only two of the FAANG stocks have outperformed the market this year, indicating a shift in market dynamics [2] Investment Strategy - Investors are advised to stay invested and avoid trying to time the market, focusing on less popular sectors that are not leading the market [3][5] - Healthcare is highlighted as a favorable sector due to its affordability and lower economic sensitivity, making it a good option if the economy slows [3][5] Stock Picks - UPS and Kimberly Clark are identified as attractive investment opportunities, both down nearly 50% from their highs, with Kimberly Clark offering a PE of 12 compared to its usual 19 and a safe dividend yield of 5% [6][10] - UPS has seen a significant drop of 60% from its highs, but the company is moving away from its reliance on Amazon, which could improve its performance [11] Market Trends - There is a belief that the current inflationary environment will persist, similar to trends seen in the 1970s, which could benefit materials and commodities [13]

Nike - Nike is experiencing significant challenges, with a notable decline in stock performance, down 57% over the past five years, and a continuous downturn for four consecutive years [10][9]. - The company reported earnings that beat expectations on both the top and bottom lines, but faced headwinds in China and lowered third-quarter guidance, anticipating a drop in revenues and gross margin contraction due to tariffs [4][10]. - There is skepticism regarding Nike's ability to leverage its brand effectively, as it is not selling shoes associated with its major stars, which is seen as a critical issue for the company [6][5]. - The narrative around tariffs is questioned, as other companies have not reported similar impacts, leading to doubts about Nike's claims [7][8]. FedEx - FedEx reported stronger-than-expected results and raised the low end of its full-year guidance, although its second-half operating profit is still expected to miss consensus by about 5% [11]. - The core parcel business showed a year-over-year increase of 24%, indicating positive momentum, despite some concerns regarding freight operations and potential spin-offs [13][12]. - FedEx is viewed as a solid investment opportunity, with expectations that its stock could retest previous highs around $315, making it a recommended hold for investors [14].

Core Insights - FedEx Corporation (FDX) reported strong second-quarter fiscal 2026 results, with earnings and revenues exceeding expectations, showcasing a year-over-year earnings increase of 19% and revenue growth of 6.8% [2][3][9] Financial Performance - Quarterly earnings per share (EPS) reached $4.82, surpassing the Zacks Consensus Estimate of $4.07, with share repurchases contributing an additional 5 cents per share [2][9] - Revenues totaled $23.4 billion, exceeding the Zacks Consensus Estimate of $22.8 billion [3][9] - Operating income increased by 31.4% to $1.38 billion, with operating margin rising to 5.9% from 4.8% year-over-year [5][9] Guidance and Outlook - FedEx raised its full-year fiscal 2026 guidance, now expecting revenue growth of 5-6% (previously 4-6%) and EPS between $14.80 and $16.00, up from $14.20-$16.00 [4] - The anticipated spin-off of FedEx Freight is expected to be completed on June 1, 2026, as a separate publicly traded company [6][9] Segment Performance - FedEx Express segment revenues grew 8% year-over-year to $20.4 billion, driven by higher package yields and cost savings [7] - FedEx Freight revenues declined by 2% to $2.14 billion, impacted by lower shipments and higher wage rates, alongside one-time spin-off-related costs of $152 million [8] Capital and Liquidity - FedEx ended the quarter with cash and cash equivalents of $6.57 billion, an increase from $6.16 billion in the previous quarter [11] - The company completed $276 million in share repurchases during the quarter, with $1.3 billion remaining available for future repurchases [11] Cost Management and Investments - FedEx anticipates permanent cost reductions of $1 billion from transformation-related savings and plans to invest $4.5 billion in capital expenditures focused on network optimization and efficiency improvements [13]

Market Overview - The U.S. stock market is experiencing a midday surge, with all three major indexes in positive territory, driven by a rebound in technology and AI-related shares [1][2] - The Nasdaq Composite is leading with a gain of approximately 0.9%, followed by the S&P 500 at around 0.7% and the Dow Jones Industrial Average at about 0.5% [2] Economic Indicators - The November Consumer Price Index (CPI) showed a year-over-year increase of only 2.7%, below the expected 3.0%, which has raised hopes for further Federal Reserve interest rate cuts in 2026 [3] - The prospect of a more accommodative monetary policy is seen as a tailwind for equities [3] Corporate Developments - Oracle (ORCL) shares surged by approximately 7% due to reports of a joint venture with China's ByteDance, granting American investors, including Oracle, a controlling stake in TikTok's U.S. operations [8] - Micron Technology (MU) shares jumped another 5.5% after a 10% increase the previous day, driven by strong earnings and robust guidance amid tightening supply for AI data centers [9] - Other chipmakers like Nvidia (NVDA) and Advanced Micro Devices (AMD) also saw gains of about 3.5% and 5.5%, respectively, due to renewed enthusiasm for AI [13] Company Performance - Winnebago Industries (WGO) shares soared by 12.3% after exceeding analysts' expectations in its fiscal 2026 first quarter and raising its full-year outlook [13] - Darden Restaurants, Inc. (DRI) rose 1.8% after reporting strong second-quarter fiscal 2026 revenue that surpassed consensus estimates [13] - Cintas Corporation (CTAS) gained 1.3% after reporting second-quarter fiscal 2026 earnings that beat the Zacks Consensus Estimate [13] - Conversely, Nike (NKE) slumped nearly 10% despite exceeding earnings expectations, impacted by declining sales in China and tariffs affecting gross margins [13] - Enerpac Tool Group Corp. (EPAC) shares declined 8.8% after missing earnings expectations for the first quarter of fiscal 2026 [13] - FedEx (FDX) slid more than 2% as its quarterly results failed to impress investors [13]

Core Insights - Inflationary pressures are moderating, leading to a return of price stability in markets, which is beneficial for many companies as they face lower input costs and improving profit margins heading into 2026 [1][2] Sector Analysis Consumer Staples - The consumer staples sector is poised for growth as key commodity input costs related to agricultural products, such as dairy, sugar, vegetable oils, and grains, decline [3] - Food processors and packaged-goods manufacturers are regaining margins that were previously compressed due to high input inflation [4] Capital Goods and Manufacturing - Capital goods and manufacturing companies are expected to benefit from easing inflation, particularly those that consume energy and commodities, such as chemical and heavy machinery producers [5] - Lower prices for petroleum-based inputs and industrial metals are reducing project costs and improving returns on new capital investments [5] Airlines and Logistics - Airlines and logistics companies are classic beneficiaries of easing price pressures, as fuel costs, a major operating expense, are declining [6] - Companies like Delta Air Lines and FedEx are well-positioned for margin expansion as economic activity normalizes, with fuel savings directly impacting their bottom lines [7] Company Highlights United Natural Foods (UNFI) - UNFI is regaining margins as inflation cools, with a projected revenue increase of 1% and a significant EPS increase of 187.3% for fiscal 2026 compared to the previous year [10] - The company has improved its gross margin by approximately 20 basis points year over year due to better procurement conditions [9] FedEx Corp. (FDX) - FedEx is undergoing a cost realignment initiative that resulted in $2.2 billion in annual cost savings, positioning it for margin recovery as inflation pressures fade [11] - The company is expected to see a revenue increase of 4.6% for fiscal 2026, with operating margin expansion driven by lower fuel expenses and structural cost reductions [12] LATAM Airlines Group (LTM) - LATAM Airlines is benefiting from a lean cost structure and improved air travel demand, with a projected revenue increase of 10.1% and EPS increase of 17.8% for 2026 [16] - The company achieved an adjusted operating margin of 18.1% in Q3 2025, supported by a decline in jet fuel expenses [15] Conclusion - The analysis indicates that companies in consumer staples, logistics, and transportation sectors are well-positioned to leverage declining input costs to restore margins and enhance financial performance as inflation eases [19]

dig right into the market reaction. We're joined now by Meera Pandit, global market strategist with JP Morgan Asset Management. Um, so the markets, you know, digesting the consumer sentiment number somewhat in stride, kind of more of the same uh that we've seen for much of this year.Um, from a sentiment standpoint, we've gotten some pretty decent AI indicators over the last few days with the Micron earnings. Uh there's news that OpenAI could be raising at a significantly high valuation of $830 billion. At l ...

E-Commerce Performance - The 2025 holiday shopping season set records, with e-commerce leading the retail sector, highlighted by Cyber Monday generating $14.25 billion in sales, a 7.1% increase year over year [1] - Black Friday online sales reached $11.8 billion, marking a 9.1% growth, while the total online spending during Cyber Week was $44.2 billion, up 7.7% from 2024 [1] - Total online sales for the holiday season are projected to reach $253.4 billion from November through December, making it the first quarter-trillion-dollar holiday season [1] Delivery Infrastructure - The e-commerce boom has significantly benefited logistics companies, with FedEx and Amazon experiencing volume increases of 5-8% during the holiday season, handling approximately 2.3 billion packages [2] - Delivery performance was strong, with FedEx achieving a 98.3% on-time rate, UPS at 98.9%, and USPS at 97.2% during Cyber Week [2] - Amazon's logistics network is now comparable to traditional carriers, offering same-day and next-day delivery services as standard [2] Technology Trends - Mobile commerce accounted for 57.5% of Cyber Monday purchases, while artificial intelligence influenced $9.3 billion in global online sales [3] - A FedEx survey indicated that 97% of large U.S. retailers are utilizing AI tools for various operational enhancements [3] Future Outlook - 98% of global e-commerce brands anticipate growth in international order volume in 2026, with the worldwide e-commerce market expected to reach around $7 trillion [4] - Key priorities for 2026 include improving delivery speed, expanding into new markets, and reducing fulfillment costs while leveraging AI for logistics optimization [4] Investment Opportunities - Companies such as Expedia, GigaCloud Technology, Fiverr International, and Amazon are identified as strong investment opportunities for 2026, each holding a Zacks Rank of either 1 (Strong Buy) or 2 (Buy) [5] - GigaCloud Technology has seen a 120.1% increase in market performance over the past six months, while Expedia and Amazon have also shown significant gains [6] Company-Specific Highlights - Expedia reported strong Q3 2025 results with an adjusted EPS of $7.57 and 12% gross bookings growth, raising its full-year guidance for bookings growth to 7% [9] - GigaCloud Technology announced a new 617,000-square-foot fulfillment center and an acquisition to enhance its distribution capabilities, with a strong balance sheet supporting its growth [10] - Fiverr International reported a record Q3 2025 adjusted EBITDA of $24.2 million, with a 22.4% margin, and is well-positioned to benefit from the growing demand for AI-driven services [11] - Amazon's ambitious $35 billion expansion plan in India and advancements in AI technology position it strongly for continued growth in digital commerce and cloud computing [12][14]

U.S. stock futures rose on Friday after Thursday’s higher close. Futures of major benchmark indices advanced.On Thursday, the November report showed that annual CPI inflation slowed to 2.7% from 3% in September. Because the Bureau of Labor Statistics lacked October survey-based prices, it carried forward September levels, effectively assuming zero inflation for a missing month. Meanwhile, President Donald Trump signed an executive order on Thursday, directing federal agencies to loosen regulations on mariju ...

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The trend of investing in blue-chip companies has evolved, with investors now holding a mix of stocks across various industries and market capitalizations, reflecting a broader investment strategy [1] Investment Focus - The primary focus areas for investment include banking, telecommunications, logistics, and hospitality sectors, both in the ASEAN region and the US markets [1] - The entry into the US market in 2020 has allowed for a comparative analysis of investment opportunities between the US and Philippine markets, enhancing investment strategies [1] - The use of platforms like Seeking Alpha has facilitated knowledge sharing and analysis, contributing to informed investment decisions in the US market [1]

1 22 12 1 Forward-Looking Statements and Non-GAAP Financial Measures Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding expected cost savings, the optimization of our network through Network 2.0, the planned tax-free full separation of the FedEx Freight business into a new publicly traded company (the "FedEx Freight Spin-Off"), future financial targets, business strategies, man ...