It is time. It's time for the light round. Yes.Go. Save the stock. Tell by sell.Just be clear. I know the course. I tell my step to grab to apply.You're playing the sound. And then the lightning round is over. Are you ready.Ski daddy. Tell me the light. Harry in Georgia. Harry. Harry in Atlanta, Georgia.Club member. Yes. and the home of Atlanta to CocaCola and Home Depot.And my question tonight, UPS, you know what. UPS is a real quandry. I love that yield, but I do think the fundamentals are still hurting.I ...

Group 1 - Industrial stocks are currently receiving less attention from investors, despite the presence of strong businesses in the sector [1] - Hubbell Inc. (NYSE: HUBB) is highlighted as a company that may be overlooked by many investors [1]

Group 1: Market Trends - Stocks near all-time or 52-week highs indicate strong bullish sentiment, with buyers in control [1] - Stocks making new highs are likely to continue rising, especially with positive earnings estimate revisions [8] Group 2: Credo Technology Group (CRDO) - Credo Technology, rated Zacks Rank 1 (Strong Buy), offers innovative high-speed connectivity solutions, benefiting from the AI surge [3][4] - The company reported a remarkable 180% year-over-year increase in sales, significantly exceeding consensus expectations [5] - The outlook for Credo remains bullish due to sustained demand and increased AI spending [4] Group 3: Heico (HEI) - Heico, also rated Zacks Rank 1 (Strong Buy), operates in aerospace, industrial, defense, and electronics sectors, with products used in various aircraft [9] - The company achieved record Q2 sales and net income, with sales growing 15% and net income increasing by 27%, surpassing consensus expectations [10] - Both segments of Heico, Flight Support and Electrical Technologies, experienced sales growth of 19% and 7%, respectively, with an operating margin increase to 22.6% from 21.9% year-over-year [10]

Core Viewpoint - The industrial sector, particularly represented by Deere & Company, is experiencing significant outperformance in 2025, contrasting with the technology sector's focus on AI innovation [1][2]. Industry Performance - The Industrial Select Sector SPDR Fund (XLI) has increased nearly 10% year-to-date, outperforming the Technology Select Sector SPDR Fund (XLK), which has risen 6.3% [2]. - Deere & Company has surged over 20% year-to-date and is trading near a key breakout level [2]. Institutional Confidence - Institutional inflows into Deere have totaled nearly $14 billion over the past 12 months, with $9 billion flowing in during the last two quarters alone, indicating strong confidence in the company's long-term prospects [3]. - The stock has seen only $7.7 billion in outflows during the same period, further emphasizing institutional support [3]. Analyst Ratings - Deere currently holds a consensus Hold rating from 21 analysts, suggesting it is fairly valued at current levels [4]. - The average price target for Deere aligns closely with its current price, indicating that existing investors may want to maintain their positions [4]. Dividend Information - Deere offers a dividend yield of 1.26%, with a solid history of increasing dividends over the past four years, making it appealing to conservative investors [6]. - The stable dividend can help mitigate short-term volatility while enhancing long-term returns amid interest rate uncertainties [6]. Stock Valuation - Deere's current P/E ratio is just under 25, which is slightly elevated compared to the broader industrial sector [7]. - The forward P/E ratio is around 23, placing it in a middle ground between value and high-growth stocks [8]. Earnings Performance - In fiscal Q2 2025, Deere reported earnings of $6.64 per share, exceeding the consensus estimate of $5.72 [8]. - Revenue for the quarter was $11.17 billion, down nearly 18% year-over-year but above the consensus of $10.80 billion, showcasing operational resilience [9]. Technical Analysis - Technically, Deere is forming a bullish flag-like pattern near its 52-week high, with a potential breakout above the $532 level that could lead to a multi-week advance [10]. - The stock is outperforming the broader industrial sector, attracting attention from technical traders and momentum-focused funds [11]. Overall Assessment - Deere may not have the speculative appeal of tech stocks but demonstrates strong institutional backing, solid execution, and a consistent technical structure [13]. - While not an outright bargain, Deere is not overpriced, and a breakout above $532 could present a high-probability opportunity for upside continuation [14].

Company Overview - Techcon, part of OK International and Dover, is a leader in precision fluid dispensing technologies, recently launching a new line of Side-by-Side (SBS) Dispensing Cartridges for various industries including electronics, industrial, medical device, and automotive [1][5] - OK International, a global manufacturer of bench tools and equipment, focuses on operational excellence and innovation, with core brands including Metcal and Techcon [6] - Dover Corporation is a diversified global manufacturer with annual revenue exceeding $7 billion, operating across five segments and employing approximately 24,000 people [7] Product Launch - Techcon's SBS Cartridge is designed for precise metering and dispensing of 2-component (2K) adhesives and sealants, available in sizes of 50 ml and 200 ml, with mixing ratios of 1:1, 2:1, and 10:1 [2][3] - The SBS Cartridges are made of polypropylene, ensuring compatibility with a wide range of chemicals, and are designed to work with standard cartridge guns [3] Market Application - The new SBS line is aimed at industries that regularly utilize dual cartridge dispensing for two-part materials, enhancing the ability to package, mix, and dispense 2K materials efficiently [3]

Company Overview - Littelfuse is a diversified, industrial technology company with $2.4 billion in revenue for FY 2023[7] - The company has demonstrated a 15-year double-digit compound annual growth rate (CAGR) in sales of 10% and earnings per share (EPS) of 18%[8] - Littelfuse sells over 17 billion components annually to over 100,000 customers[28] Financial Performance & Strategy - The company targets double-digit revenue CAGR through a combination of 5-7% organic growth and 5-7% growth from acquisitions[13,32] - Littelfuse achieved a free cash flow conversion of net income of 143% in FY 2023[42] - The company's adjusted EBITDA margin was 22.3% in FY 2023[40] Segment Performance (FY 2023) - The Electronics segment generated $1.35 billion in revenue with an adjusted EBITDA margin of 28.1%[43] - The Transportation segment generated $678 million in revenue with an adjusted EBITDA margin of 11.2%[46] - The Industrial segment generated $334 million in revenue with an adjusted EBITDA margin of 21.1%[49] Capital Allocation - The company plans to return 40% of free cash flow to shareholders and allocate the remainder to acquisitions[13] - Littelfuse deployed over $1.2 billion in capital on strategic acquisitions[30]

Financial Performance - Q4 2014 - Revenues for Q4 2014 were $492 million, a decrease of 3% compared to Q4 2013[11] - Adjusted operating income was $29 million, a decrease of 4% compared to Q4 2013[11] - Adjusted diluted earnings per share were $007, a decrease of 65% compared to Q4 2013, impacted by a $3 million loss from the Brand Energy JV due to FX translation and restructuring[11] - Free cash flow was negative $25 million, a decrease of 42% compared to Q4 2013[11] - ROIC trended positively to 66%[11] Financial Performance - FY 2014 - Revenues for 2014 were $2066 million, an increase of 3% compared to 2013[12] - Adjusted operating income was comparable with the prior year[12] - Adjusted diluted earnings per share were $072, a decrease of 17% compared to 2013, influenced by Brand Energy JV loss and unit adjustment fair value change as well as higher taxes[12] - Free cash flow improved to $52 million, an increase of 162% compared to 2013, mainly due to Rail advances[12] - ROIC trended positively to 66%[12] 2015 Outlook - Adjusted operating income is projected to be between $155 million and $170 million, compared to $153 million in 2014[34] - Free cash flow is projected to be between $75 million and $100 million, compared to $52 million in 2014[34] - ROIC is projected to be between 75% and 85%, compared to 66% in 2014[34] - Adjusted diluted earnings per share are projected to be between $073 and $091, compared to $072 in 2014[34]

Financial Performance - Q4 2015 - Revenues decreased to $387 million, a 21% decline compared to 2014[7] - Adjusted operating income was $26 million, a 13% decrease from the previous year[7] - Adjusted diluted earnings per share increased by 22% to $0.11[7] - Free cash flow improved significantly to $6 million[7] - Return on invested capital (ROIC) decreased to 6.3%[7] Financial Performance - FY 2015 - Revenues decreased by 17% to $1.723 billion[9] - Adjusted operating income decreased by 13% to $135 million[9] - Adjusted diluted earnings per share decreased by 24% to $0.56[9] - Free cash flow decreased by 53% to $24 million[9] - ROIC decreased to 6.3%[9] Segment Performance & Outlook - Metals & Minerals (M&M) revenues decreased by 23% to $243 million, and adjusted operating income decreased by 39% to $12 million[10] - Industrial revenues decreased by 26% to $75 million, while operating income decreased by 18% to $12 million[15] - Rail revenues decreased by 7% to $69 million, but operating income increased to $10 million[19] - 2016 outlook projects adjusted operating income between $80 to $100 million and free cash flow between $50 to $70 million[24]

REIT Performance Overview - The REIT sector experienced a significant decline in April 2025, with an average total return of -6.45%, underperforming the broader market indices such as the Dow Jones Industrial Average (-3.1%), S&P 500 (-0.7%), and NASDAQ (+0.9%) [1] - Year-to-date, the average total return for REITs stands at -9.10%, which is worse than the -7.65% return for the same period in 2024 [12] Performance by Market Capitalization - Microcap REITs underperformed larger peers for the sixth consecutive month, with returns of -8.87% [3] - Large-cap REITs (-2.93%) outperformed mid-caps (-5.45%) and small caps (-8.69%) in April, with large-cap REITs outperforming small caps by 1081 basis points in the first four months of 2025 [3] Property Type Performance - Only 11.11% of REIT property types averaged a positive total return in April, with a 20.17% spread between the best (Data Centers +7.28%) and worst-performing property types (Timber -12.90%) [5][6] - Year-to-date, Office REITs (-24.06%) and Hotel REITs (-22.90%) significantly underperformed, while Health Care (+7.23%), Infrastructure (+6.88%), and Casinos (+6.00%) were the only property types with positive returns [7] Price/FFO Multiples - The average P/FFO for the REIT sector decreased from 13.9x to 13.4x in April, with 83.3% of property types experiencing multiple contraction [8] - Data Centers (26.9x), Multifamily (24.6x), and Infrastructure (18.7x) currently trade at the highest average multiples among REIT property types, while Hotels (5.9x) and Offices (8.2x) have the lowest [9] Individual REIT Performance - Digital Realty Trust (DLR) achieved a strong gain of +12.04% in April, despite a year-to-date return of -8.72% [11] - Wheeler REIT (WHLR) was the worst-performing REIT in April, with a staggering decline of -63.61% for the month and -98.29% year-to-date [11] Dividend Yield Insights - The high dividend yields of the REIT sector are a primary reason for investment, with many REITs trading below their NAV, resulting in attractive yields [15]

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.30 for Q1 2025, compared to an income of $0.19 per share in Q1 2024, which included $0.47 per share from the sale of the Shelburne Hotel [14] - Baseline EBITDA for Q1 2025 was $108 million, a 5% increase year-over-year, bringing the trailing twelve-month baseline EBITDA to $412 million [14] - Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees [6] Business Line Data and Key Metrics Changes - The rental housing sector, representing 66% of assets under management, is expected to grow to over 80% in the next three years [7] - Same property multifamily occupancy increased to 95%, with same property revenue growing by 3% and same property NOI by 4.3% in Q1 [8] - Investment management fees grew by 17% in Q1 to $25 million, reflecting strong performance in the credit platform and continued growth in equity platforms [10][27] Market Data and Key Metrics Changes - In the U.S., real estate transaction volumes increased by 23% in Q1, with no material changes in sentiment observed in Q2 [7] - The company noted strong apartment demand in Q1, with blended leasing spreads increasing to 1.5% and a significant improvement in new lease rents [20] - In Ireland, same property NOI in the apartment portfolio was up 3.5%, driven by occupancy growth and strong operating expense management [23] Company Strategy and Development Direction - The company is focused on executing a non-core asset sale plan, aiming to generate between $400 million to $450 million from asset sales and recaps by year-end [12] - The strategy includes reducing unsecured debt and simplifying the business by focusing on core sectors of rental housing and industrial [30] - The company is expanding its credit solutions to include mezzanine debt and preferred equity investments, enhancing its ability to capture opportunities within the credit space [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fee revenue growth targets of 20% to 25% annually, supported by a strong pipeline of activity [11] - The company believes that the best risk-adjusted returns are found in the rental housing sector due to demand driven by housing shortages and declining new supply [7] - Management highlighted the importance of relationships in maintaining competitiveness amid increased market volatility and competition [34] Other Important Information - The company has a strong pipeline of $2.5 billion in loan originations and real estate equity acquisitions, primarily within the rental housing sector [5] - The total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and a weighted average effective interest rate of 4.7% [18] - The company is actively monitoring potential impacts from government changes on affordable housing, with 15% of tenants having some form of HUD backing [54][57] Q&A Session Summary Question: Regarding fee-bearing capital growth - Management confirmed confidence in achieving 20% to 25% growth in fees, citing a strong pipeline and future funding commitments [32][33] Question: On liquidity and partner capital costs - Management acknowledged increased competition but emphasized strong relationships and flexibility in pricing to remain competitive [34][36] Question: Stock buyback plans - The focus remains on paying down unsecured debt, with potential reconsideration of stock buybacks after addressing debt obligations [37][39] Question: Dispositions and cap rates - Management indicated that dispositions are well underway, with expected closures in June, but refrained from commenting on specific cap rates [42][44] Question: Loan origination rates and prepayments - Loan origination rates have seen downward pressure, but the quality of projects remains high; a significant prepayment was noted as an outlier [51][53] Question: Exposure to government-backed housing - Approximately 15% of tenants have HUD backing, but management does not foresee immediate concerns regarding capital availability [56][60]