Exclusive: Genuine Parts is planning to separate its auto-parts business from its industrial-parts unit to create two separate public companies, according to people familiar with the matter https://t.co/RcsSGq2R0b ...

The company is preparing to separate its auto- parts and industrial-parts businesses. ...

Market Overview - The U.S. stock market experienced a quiet finish with the S&P 500 rising 0.1%, while the Dow Jones Industrial Average added 32 points (0.1%) and the Nasdaq composite also gained 0.1% [1] Company Performances - Paramount Skydance led the market with a 4.9% increase after Warner Bros. Discovery allowed it to submit its "best and final" bid to acquire the entertainment company, competing against Netflix [2] - General Mills saw a significant decline of 7% after expressing concerns about customer unease and cutting its profit forecast for 2026, indicating sharper declines than previously expected [3] - Genuine Parts reported weaker quarterly results than analysts anticipated, leading to a 14.6% drop in its stock. The company plans to split into two publicly traded entities focusing on auto and industrial parts [4][5] Industry Insights - Recent surveys indicate weak confidence among U.S. households, impacted by persistent inflation, a sluggish job market, and tariff concerns [4] - Big Tech stocks, including Alphabet, faced notable declines, with Alphabet falling 1.2%. Nvidia's stock fluctuated between being a significant market weight and a strength [5][6] - The market's stability is contingent on the performance of Big Tech companies, as investors exhibit a "sell first/ask questions later" mentality, particularly in the context of potential AI disruptions [6]

Core Viewpoint - TechnipFMC plc (FTI) is set to announce its fourth-quarter fiscal 2025 results on February 19, with earnings estimated at 51 cents per share and revenues at $2.55 billion [1] Group 1: Recent Performance - In the last reported quarter, FTI achieved adjusted earnings of 75 cents per share, surpassing the Zacks Consensus Estimate of 65 cents, driven by strong performance in the Subsea segment [2] - FTI's revenues for the last quarter were $2.6 billion, exceeding the Zacks Consensus Estimate by 1.2% [2] - FTI has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 20.16% [3] Group 2: Fourth Quarter Expectations - The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings has remained unchanged, indicating a 5.56% year-over-year decrease, while revenue estimates suggest a 7.58% increase from the previous year [3] - FTI's revenue is expected to improve due to strong contributions from the Subsea segment, which is projected to generate $2.2 billion, reflecting an 8.7% year-over-year increase [4][5] - The company holds a $16.8 billion backlog, which, along with the ongoing industrialization of its Subsea business, is expected to positively influence fourth-quarter earnings [6] Group 3: Cost Considerations - Rising costs may negatively impact FTI's bottom line, with total costs and expenses increasing by 8.8% in the last quarter, a trend expected to continue [7] - The increase in costs is attributed to the inflationary environment and a tight labor market [7] Group 4: Earnings Prediction - The model predicts an earnings beat for FTI, supported by a positive Earnings ESP of +1.61% and a Zacks Rank of 2 (Buy) [10][11]

Core Viewpoint - The Aristotle Small Cap Equity Fund reported modest gains in U.S. small-cap equities during Q4 2025, driven by a positive macroeconomic environment and attractive valuations, although it trailed the Russell 2000 Index return [1]. Fund Performance - The Aristotle Small Cap Equity Fund (Class I-2) achieved a return of 1.96% in Q4 2025, compared to a 2.19% total return of the Russell 2000 Index [1]. - Security selection positively impacted overall performance, while allocation effects had a negative impact [1]. Company Focus: LKQ Corporation - LKQ Corporation (NASDAQ:LKQ) was highlighted as a recent addition to the fund's portfolio, recognized as a leading distributor of alternative and specialty auto parts [2]. - As of February 13, 2026, LKQ Corporation's stock closed at $34.10 per share, with a one-month return of 1.76% and a decline of 12.81% over the past twelve months [2]. - LKQ Corporation has a market capitalization of $8.774 billion [2]. Competitive Advantages of LKQ Corporation - LKQ Corporation is noted for its market leadership in alternative collision repair parts, benefiting from scale advantages that allow for volume purchase discounts and a wider distribution network [3]. - The company has invested in technology and logistics improvements, enhancing its competitive position against smaller rivals [3]. Hedge Fund Interest - LKQ Corporation was held by 49 hedge fund portfolios at the end of Q3 2025, an increase from 32 in the previous quarter, indicating growing interest among institutional investors [4]. - Despite its potential, the company is not considered among the top 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4].

Core Insights - Kiltearn Partners LLP acquired 264,600 shares of LKQ Corporation in Q4 2025, with an estimated transaction value of $7.98 million, leading to a quarter-end value increase of $7.91 million [1] Company Overview - LKQ Corporation reported a trailing twelve-month (TTM) revenue of $13.96 billion and a net income of $697 million [3] - The company offers a dividend yield of 3.52% and had a stock price of $34.10 as of February 13, 2026 [3] Business Model - LKQ is a prominent distributor of automotive replacement parts, operating across North America and Europe [5][8] - The company focuses on both recycled and aftermarket parts, which supports a resilient business model in the automotive aftermarket sector [5] Recent Transactions and Holdings - The recent acquisition by Kiltearn Partners brought its stake in LKQ to 3.24% of its 13F reportable assets under management (AUM) as of December 31, 2025 [7] - LKQ shares are currently valued at $34.10, reflecting an 8.6% decline over the past year, underperforming the S&P 500 by 20.37 percentage points [7] Financial Performance - LKQ's stock has decreased by approximately 43% from its peak in 2022, with trailing 12-month net income falling by 39.1% over the past three years [9] - Following the divestiture of its self-service segment in September, LKQ raised its 2025 operating cash flow outlook by $25 million to a range between $0.825 billion and $1.025 billion [9]

Group 1 - The core idea of O'Reilly Automotive's stock split is to increase accessibility for investors by lowering the price per share while maintaining the same fundamental value of the company [1][2] - O'Reilly Automotive executed a 15-for-1 stock split in June last year, and its shares have appreciated significantly, up 58,000% since its IPO in 1993 [2][3] - The company operates nearly 6,600 stores primarily in the U.S., selling aftermarket auto parts, and has seen its stock price triple in the last five years [3][4] Group 2 - O'Reilly Automotive reported a same-store sales growth of 4.7% in 2025, marking the 33rd consecutive year of positive growth in this metric [4] - The demand for auto parts remains strong regardless of economic conditions, supported by an aging vehicle fleet and increased miles driven, which contributes to consistent revenue growth [5][6] - From 2015 to 2025, O'Reilly's revenue increased by 122%, and net income rose by 168%, aided by stock buybacks and new store openings [6] Group 3 - O'Reilly's current price-to-earnings (P/E) ratio is 31.8, which is 26% higher than the S&P 500 index, reflecting the company's quality and market positioning [7] - Value investors may be hesitant to invest unless the P/E ratio drops below 25, indicating a potential barrier for new investments at current valuations [7]

Core Viewpoint - Magna International Inc. has shown strong performance, reaching a nearly four-year high, driven by positive revenue results and an ongoing share buyback program [1]. Financial Performance - For the full year 2025, Magna International reported revenues of $42 billion, which is at the high end of its guidance range of $41.1 billion to $42.1 billion, but represents a 1.8% decline from $42.8 billion in 2024 [3]. - The attributable net income for 2025 was $829 million, down 17.8% from $1.009 billion in 2024 [3]. - In Q4, sales reached $10.85 billion, marking a 2% increase from $10.6 billion in the same quarter the previous year [4]. - The company reported an attributable net loss of $1 million in Q4, a significant drop from a net profit of $203 million in the same period last year [4]. Future Outlook - Magna International aims to achieve sales between $41.9 billion and $43.5 billion for the current year, with adjusted diluted earnings per share projected between $6.25 and $7.25 [4]. Shareholder Value Initiatives - The company plans to continue repurchasing approximately 22 million shares under its existing buyback authorization program to enhance company and shareholder value [5].

Market Overview - The S&P/TSX composite index increased by 608.43 points, reaching 33,073.71, while the Dow Jones industrial average rose by 48.95 points to 49,500.93. The S&P 500 index saw a modest increase of 3.41 points to 6,836.17, whereas the Nasdaq composite decreased by 50.48 points to 22,546.67 [1][3]. Sector Performance - The basic materials sector experienced gains, potentially driven by investors identifying opportunities following fluctuations in the precious metals market. This sector's performance may also be attributed to investors closing positions after significant short selling [2][3]. Company Highlights - Magna International Inc., an auto parts manufacturer, saw its shares surge by 18.94% after providing guidance for increased profits in 2026 [2]. Inflation Impact - A report indicated that U.S. inflation slowed to 2.4% year-over-year, which, while above the Federal Reserve's 2% target, was an improvement from December's 2.7% rate. This slowdown in inflation could provide the Federal Reserve with more flexibility to consider interest rate cuts [3][4][5]. Market Sentiment - Stock prices on Wall Street stabilized for companies previously viewed as vulnerable to AI disruption, reflecting a market sentiment characterized by rapid reactions to perceived threats [6]. Commodity Prices - The March crude oil contract rose by five cents to US$62.89 per barrel, while the April gold contract increased by US$97.90 to US$5,046.30 per ounce [7].

Market Overview - The U.S. market closed with mixed results, as the Russell 2000 gained 1% driven by hopes of a rate cut, while large-cap indexes like the Dow and S&P 500 showed minimal changes, and the Nasdaq declined by 0.22% [2] - The Russell 2000 was noted to be leading the market with a 1.84% increase, while the S&P 500, Nasdaq, and Dow followed with gains of 0.62%, 0.55%, and 0.42% respectively [3][8] Winners - Evolution Metals & Technologies Corp saw a significant increase of 28%, leading the U.S. stocks, followed by Rivian Automotive at 27.1%, Tri Pointe Homes at 26.6%, and Magna International at 18.8% [4][5] - The market capitalization of Evolution Metals & Technologies Corp is reported at $5.79 billion, while Rivian Automotive has a market cap of $21.82 billion, and Tri Pointe Homes stands at $3.98 billion [5] Losers - Bright Horizons Family Solutions experienced the largest decline at 21.3%, with other notable decliners including Pinterest at 17.6%, Fortune Brands at 15.1%, and Callaway Golf also at 15.1% [6] - Prediction markets such as DraftKings and Flutter Entertainment saw declines of 13% and 11.6% respectively [6]