Core Insights - Medpace's shares increased by 13% this week, reflecting strong growth in its latest quarter and an optimistic outlook from investors [1] - The clinical trial industry is recovering post-COVID-19, contributing to Medpace's financial performance [2][4] Financial Performance - Medpace reported a revenue growth of 24% year over year, reaching $660 million, with a net income of $111 million [2] - The company's backlog has reached $3 billion, indicating strong demand for its services [4] Book-to-Bill Ratio - Medpace's book-to-bill ratio was 1.2x in the third quarter, suggesting that new contract wins are outpacing existing orders fulfilled, which is a positive sign for future growth [3][4] Stock Performance - Medpace's stock has increased over 100% since the beginning of the year, with a current price-to-earnings (P/E) ratio of 44.5, up from 24 earlier this year [7][9] - The company has experienced a remarkable revenue increase of 1,000% since going public in 2016 [6]

Market Overview - U.S. equity markets are experiencing a nuanced trading session influenced by corporate news and earnings reports, with mixed signals in major market indexes [1][2] - Premarket activity shows Nasdaq 100 and Dow Jones Industrial Average futures slightly lower, while S&P 500 futures indicate a marginal uptick, suggesting cautious optimism [2][3] Corporate Earnings - Tesla (TSLA) is set to announce Q3 2025 financial results, with analysts forecasting earnings per share of $0.48 on revenue of approximately $24.98 billion, while some predict Non-GAAP earnings per share of $0.66 and revenue of $28.4 billion [4] - Other companies reporting Q3 results include IBM, SAP, Boston Scientific Corp. (BSX), Medpace Holdings Inc. (MEDP), Molina Healthcare Inc. (MOH), and Thermo Fisher Scientific Inc. (TMO), providing insights into various sectors [5] Economic Indicators - The Bureau of Labor Statistics (BLS) will release "State Job Openings and Labor Turnover for August 2025," offering valuable labor market data [6] - An EIA report is also expected, providing insights into energy markets, while speeches from ECB officials may hint at global monetary policy direction [6] Major Corporate Developments - Tesla announced a recall of approximately 12,963 vehicles due to a potential battery pack contactor failure, which may impact stock performance despite mixed earnings prospects [7] - Microsoft (MSFT) reported CEO Satya Nadella's pay surged to $96.5 million, a 22% increase, attributed to advancements in AI and strong stock performance [11] - Alphabet (GOOGL) shares dipped 2% due to competition from OpenAI's new browser but rebounded 3.1% on news of a potential multi-billion dollar cloud deal with AI startup Anthropic [11] - Apple (AAPL) is reportedly cutting production orders for the new iPhone Air model due to weaker demand, leading to a 0.7% decline in shares [11] - Nvidia (NVDA) continues to be a key player in the AI sector, with a 31% gain in 2025, although some valuation models suggest it may be overvalued [11] - Hyatt Hotels Corporation (H) announced a franchise agreement to introduce 50 Hyatt Studios hotels in China, indicating expansion in the extended-stay segment [11] - Canon Inc. achieved a production milestone of over 170 million units in its RF/EF interchangeable lens series [11]

Market Overview - U.S. equities showed upward momentum in Q3, with the S&P 500 Index increasing by 8.1% and the Russell 3000 Index rising by 8.2% due to improved tariff outcomes, the passing of the One Big Beautiful Bill Act, anticipated interest rate cuts, and strong corporate earnings [2] - Growth stocks outperformed, with the Russell 3000 Growth Index up by 10.4%, surpassing its value counterpart by nearly 500 basis points [3] Sector Performance - The ClearBridge Select Strategy outperformed its benchmark for the second consecutive quarter, driven by contributions from consumer staples, communication services, IT, and industrials sectors [4] - Performance Food Group (PFGC) was a key contributor in consumer staples, boosted by activist investor interest and market share gains [5] - Reddit's advertising revenue surged by 84% year-over-year, leading to a higher valuation in communication services [6] - AppLovin's shares doubled due to strong earnings and optimism around its e-commerce business, expected to launch in Q4 [7] - L3Harris Technologies benefited from increased defense spending, while Comfort Systems saw steady demand from AI data center projects [8] Challenges and Detractors - Consumer discretionary and financials sectors faced headwinds, with MercadoLibre's stock declining due to competitive pressures and profit-taking [9] - Shift4 Payments experienced a negative reaction to disappointing Q2 results but raised its full-year guidance [10] - Concerns over generative AI impacting application software companies like ServiceNow and Fortinet led to losses, despite strong quarterly results [11] Portfolio Positioning - The company initiated eight new positions, including Regeneron Pharmaceuticals and Vertex Pharmaceuticals, while exiting five others [12][13] - Vistra, a major power generator, is well-positioned to benefit from tightening market conditions and potential federal subsidies [14] - Participation in the IPOs of Firefly Aerospace and Figma reflects confidence in growth prospects [15] Outlook - The market's rally is supported by improving trade sentiment, with expectations for gradual normalization of interest rates and clarity on tariffs [19] - The Russell 2000 Index showed significant outperformance, indicating a broadening of market leadership [20] - The macro backdrop is expected to remain volatile, but the portfolio is positioned for various market scenarios [24] Portfolio Highlights - The ClearBridge Select Strategy outperformed the Russell 3000 Index, with contributions from eight of the eleven sectors [25] - Stock selection in consumer staples and communication services, along with an overweight in IT, drove positive results [26] - Key contributors included AppLovin, Reddit, and L3Harris Technologies, while MercadoLibre and ServiceNow were notable detractors [27]

Core Insights - The U.S. market is experiencing significant turbulence due to renewed U.S.-China trade tensions, an ongoing government shutdown, and the start of the third-quarter earnings season [1][11] - Investors are closely monitoring key reports on inflation and jobs, as well as remarks from Fed Chair Powell that may influence rate expectations [2] - Amidst these uncertainties, value investing is gaining traction, focusing on fundamentally strong companies that are undervalued [2][11] Value Investing and Earnings Yield - Earnings yield is a crucial metric for identifying attractive value opportunities, calculated as annual earnings per share (EPS) divided by the market price [4] - Stocks with higher earnings yield are considered undervalued compared to those with lower earnings yield, which are seen as overpriced [5] - A stock's yield should be compared to the 10-year Treasury yield to assess its relative value; a higher yield indicates a potentially better investment for value investors [6] Screening Criteria for Stock Selection - The primary screening criterion is an earnings yield greater than 10%, supplemented by additional parameters such as estimated EPS growth and average daily trading volume [7][8] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers in various market conditions [9] Top Stock Picks - **Allied Gold Corporation (AAUC)**: Expected EPS growth of 907% and 193% for 2025 and 2026, respectively, with a Zacks Rank 1 [12] - **Micron Technology Inc. (MU)**: Anticipated EPS growth of 100% and 12% for fiscal 2026 and 2027, respectively, also holding a Zacks Rank 1 [13] - **Fortrea Holdings Inc. (FTRE)**: Projected EPS growth of 63.6% and 64.5% for 2025 and 2026, with a Zacks Rank 1 [14] - **StoneCo Ltd. (STNE)**: Expected EPS growth of 20% and 17% for 2025 and 2026, respectively, and a Zacks Rank 1 [15] - **HF Sinclair Corporation (DINO)**: Forecasted EPS growth of 257.4% and 26.4% for 2025 and 2026, with a Zacks Rank 1 [16]

Core Insights - Science 37 successfully completed its third FDA inspection, receiving a No Action Indicated (NAI) recommendation, affirming the quality and compliance of its Direct-to-Patient Site for clinical research [1][3]. FDA Inspection Results - The recent FDA inspection evaluated Science 37's role in a Phase 3 primary biliary cholangitis (PBC) study, where it enrolled 47% of the US study population [2]. - This marks the third consecutive successful FDA inspection for Science 37 in less than two years, with previous inspections also resulting in NAI categorizations and no Form 483s issued [3]. Company Operations and Model - Science 37's Direct-to-Patient Site enhances clinical trial accessibility by allowing participation from patients' homes, thus overcoming geographic limitations of traditional sites [4]. - The company provides a comprehensive range of site services, including investigator oversight, research-grade nursing, CRC support, and direct-to-patient logistics, which facilitate faster enrollment and high-quality data delivery [4]. Partnerships and Goals - Science 37 continues to partner with clinical research sponsors to enhance trial accessibility and enrollment, aiming to accelerate clinical research and improve health outcomes [5][6].

Core Insights - Helius Medical Technologies has rebranded as Solana Company, marking a strategic shift towards digital asset investments, specifically focusing on the Solana blockchain [2][5] - The company is establishing a Digital Asset Treasury (DAT) with a focus on acquiring SOL tokens, following a $500 million fundraising dedicated to this strategy [3][4] - Helius is part of a growing trend where healthcare and pharmaceutical companies are pivoting to cryptocurrency strategies to enhance growth opportunities [5][6] Company Strategy - The rebranding to Solana Company indicates a departure from its original focus on neurotechnology to align with blockchain technology [2] - Helius has signed a non-binding letter of intent with the Solana Foundation, committing to conduct all blockchain activities exclusively on the Solana platform [3] - The agreement with the Solana Foundation allows Helius to purchase SOL tokens at a discounted rate, leveraging SOL's yield-bearing mechanism for potential returns [4] Industry Trend - Helius is the fourth medical company to transition towards a digital asset treasury model in recent months, reflecting a broader trend in the industry [1][5] - Other companies, such as TNF Pharmaceuticals, have also rebranded to focus on cryptocurrency infrastructure development, indicating a significant shift in corporate strategies within the healthcare sector [5][6]

Core Viewpoint - FOXO Technologies Inc. has successfully completed the acquisition of Vector Biosource Inc., a provider of information, data, and biospecimen sourcing for the biotechnology and pharmaceutical research sectors, with expectations for significant growth post-acquisition [1][2]. Acquisition Details - The total purchase price for Vector includes: - $500,000 in cash - 60,000 shares of Series E Preferred Stock valued at $1.5 million - Warrants to purchase $2 million of common stock at a 10% premium - Up to an additional 80,000 shares of Series E Preferred Stock, contingent on achieving specific revenue and cash collection milestones within 12 to 24 months - FOXO will also fund up to $1.2 million for Vector's growth initiatives [2]. Financial Performance - Vector generated net revenues of approximately $225,000 in Q2 2025, translating to an annual run rate of about $0.9 million, indicating potential for significant growth following the acquisition [1][2]. Company Background - FOXO operates three main subsidiaries: - Rennova Community Health, which runs a critical access hospital in East Tennessee - Myrtle Recovery Centers, a behavioral health facility providing various treatment services - FOXO Labs, focused on biotechnology and health improvement through innovative technology [4][5]. Management Statements - FOXO's CEO expressed enthusiasm about the acquisition and the potential for growth through collaboration with Vector's management [2]. - Vector's CEO highlighted the partnership with FOXO as a means to achieve aggressive growth plans [2].

Core Insights - Datavant has partnered with Indegene to enhance recruitment for clinical studies, particularly focusing on rare diseases and complex conditions [1][2] - The collaboration aims to reduce screen failures and improve recruitment efficiency for biopharma companies [1][4] Partnership Details - The partnership leverages Datavant's data enrichment capabilities and Indegene's NEXT Patient Recruitment platform to facilitate quicker enrolment times and better decision-making in the recruitment process [2][5] - Datavant's health data retrieval network includes data from over 80,000 hospitals and clinics, processing over 100 million patient records annually [3] Expected Outcomes - The collaboration is expected to improve connections between eligible subjects and relevant clinical trials, addressing the challenge of finding enough patients for rare disease studies [4][5] - Indegene aims to enhance its digital-first recruitment solutions, integrating real-time access to consented patient medical records to minimize screen failures [5]

Group 1: Broyhill Asset Management Performance - Broyhill Partners appreciated 3.7% net of all fees and expenses in Q2 2025, underperforming the MSCI All Country World Index which returned 11.7% [1] - For the six months ended June 30, the strategy returned 6.6% net of all fees and expenses, compared to 10.3% for the index [1] Group 2: IQVIA Holdings Inc. Overview - IQVIA Holdings Inc. (NYSE:IQV) is an analytical technology services and clinical research provider for the life sciences and healthcare industries [2] - The stock experienced a one-month return of -0.50% and a 52-week loss of 21.44%, closing at $190.20 per share with a market capitalization of $32.334 billion on September 18, 2025 [2] Group 3: Investment Insights on IQVIA Holdings Inc. - Broyhill Asset Management added a new position in IQVIA Holdings Inc. following a market dislocation, recognizing its entrenched revenue stream and competitive advantages [3] - IQVIA is a result of the 2016 merger between Quintiles and IMS Health, focusing on later-stage trials and generating significant profits from its technology and data business [3] - Despite its strengths, IQVIA shares are valued at 11x forward earnings, which is below historical levels [3] Group 4: Market Position and Earnings of IQVIA Holdings Inc. - IQVIA Holdings reported record revenue of $4 billion in Q2 2025, but is not among the 30 most popular stocks among hedge funds, with 65 hedge fund portfolios holding the stock at the end of Q2, down from 67 in the previous quarter [4] - While IQVIA is recognized for its potential, certain AI stocks are viewed as offering greater upside potential and less downside risk [4]

Company Overview - ICON Public Limited Company (NASDAQ:ICLR) is a clinical research organization providing outsourced development services to the biotechnology, pharmaceutical, and medical device industries, operating in various regions including Ireland, Europe, and the US [4] Analyst Downgrade - Jefferies analyst David Windley downgraded ICON from Buy to Hold, reducing the price target from $220 to $175, citing "too many headwinds" for the company [1][2] Financial Concerns - The firm indicated that customer cancellations are expected to approach $1 billion in Q3 and may remain elevated in Q4, reflecting ongoing challenges for ICON [3] Market Position - Despite being considered a "cheap" stock, the potential for another guidance cut raises concerns about the company's future performance [2]