Key Takeaways UNM is expected to post higher Q4 revenues and earnings, with sales expected to rise 1.4% year over year.Premium income is projected to grow 1.7%, supported by favorable persistency and better sales trends.Stronger results at Unum U.S., Colonial Life and International may offset lower net investment income.Unum Group (UNM) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 5, after the closing bell.The Zacks Consensus Estimate ...

Core Viewpoint - Ryan Cohen is attempting to transform GameStop into a conglomerate akin to Berkshire Hathaway, drawing comparisons to Warren Buffett's early career moves, despite significant differences in their investment training and backgrounds [5][19]. Group 1: Ryan Cohen's Investment Background - Ryan Cohen's investment journey began after selling Chewy for $3.35 billion in 2017, netting him approximately $1 billion, which he invested primarily in Apple and Wells Fargo stocks [7][9]. - Cohen co-founded Chewy, which became the leading online specialty pet products retailer, growing the U.S. pet industry from $48 billion in 2010 to $70 billion in 2017, with projections of $150 billion by 2024 and $350 billion globally [10][11]. Group 2: GameStop's Financial Position - GameStop's standard deviation was 2.81, placing it among the top 100 bullish price surprises, indicating high volatility and investor interest [5][6]. - The company has undergone significant changes, including a reduction in store count from 4,816 in January 2021 to approximately 2,733 by January 2026, a 43% decrease [15]. - GameStop's long-term debt increased from $14.9 million to $4.16 billion following share offerings and convertible notes, while cash and short-term investments rose from $1.08 billion to $8.83 billion [17]. Group 3: Investment Strategy and Future Outlook - Cohen's strategy involves leveraging the meme stock phenomenon to raise cash for potential acquisitions, with a focus on transforming GameStop into a more profitable entity [14][18]. - Michael Burry suggests that Cohen's acquisition of GameStop stock is a strategic move to position the company for a significant acquisition that could enhance future cash flow [18]. - The tangible book value of GameStop is currently at 2.2x, with expectations that it will double, indicating an aggressive growth outlook [18].

Core Insights - MGIC Investment Corporation (MTG) reported fourth-quarter 2025 operating net income per share of 75 cents, exceeding the Zacks Consensus Estimate by 2.7% and improving 4.2% year over year [1][10] - Total operating revenues decreased 0.9% year over year to $298.7 million, missing the Zacks Consensus Estimate by 2.9% [1][10] Operational Update - Insurance in force rose 2.6% year over year to $303.1 billion, surpassing the Zacks Consensus Estimate of $295.5 billion [5][10] - Primary delinquency increased 1.1% to 27,072 loans during the quarter [5] - Net premiums written fell 0.7% year over year to $230.5 million, below the estimate of $234.3 million [6] - Net investment income grew 0.5% year over year to $61.6 million, but was below both the estimate of $62.1 million and the Zacks Consensus Estimate of $62.4 million [6] - Persistency remained stable at 84.8% as of Dec. 31, 2025 [7] - New insurance written increased 7.5% year over year to $17.1 billion [7] - Underwriting and other expenses decreased 6.7% year over year to $45.8 million, but the loss ratio increased significantly to 13.2% from 3.6% in the prior-year quarter [7][10] - Total losses and expenses surged 28.8% year over year to $85.9 million due to a sharp rise in losses incurred [8][10] Financial Update - Book value per share increased 12.7% year over year to $23.47 as of Dec. 31, 2025 [11] - Shareholder equity was $5.1 billion as of Dec. 31, 2025, down 0.5% from the end of 2024 [11] - PMIERs Available Assets totaled $5.7 billion, exceeding the Minimum Required Assets by $2.5 billion [12] - Total assets rose 1.4% from the end of 2024 to $6.6 billion [12] - Senior notes increased by 0.2% to $646.1 million as of Dec. 31, 2025 [12] Capital Deployment - The company repurchased 6.8 million shares for $189.1 million and paid a dividend of $400 million to the holding company [13] - A dividend of 15 cents per common share was declared for shareholders [13] - In January 2026, the company executed a $324 million excess of loss reinsurance agreement covering certain policies written between Jan. 1, 2022, and March 31, 2025 [14] Full-Year Highlights - For the full year 2025, operating net income per share was $3.14, beating the Zacks Consensus Estimate by 11.7% and increasing 8.6% year over year [15] - Total operating revenues for the year were $1.2 billion, up 0.5% year over year, but missed the Zacks Consensus Estimate by 1.5% [15] - Net investment income rose 0.7% year over year to $246.26 million, but was below the estimate of $246.8 million [15]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage growth companies [1][2] Valuation Metrics - The P/S ratio provides a clearer picture of value when earnings are minimal or volatile, making it particularly valuable for assessing companies in recovery or growth phases [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below intrinsic value, making them attractive for investors seeking upside potential [3] - Companies with low P/S ratios and strong fundamentals, such as Hamilton Insurance Group, Macy's Inc., G-III Apparel Group, California Water Service Group, and UFP Industries, are highlighted as having potential for higher returns [4][12] Company Profiles - **Hamilton Insurance Group, Ltd. (HG)**: A specialty insurance and reinsurance company benefiting from strong execution and disciplined capital management, with gross premiums written rising significantly [12][13] - **Macy's Inc. (M)**: Undergoing a transformation with its "Bold New Chapter" program, focusing on digital initiatives and omnichannel retailing, currently holds a Zacks Rank 1 and Value Score of A [14][15] - **G-III Apparel Group (GIII)**: Focuses on product differentiation and international expansion, with owned brands generating higher margins, currently holds a Value Score of A and Zacks Rank 2 [16][17] - **California Water Service Group (CWT)**: One of the largest investor-owned water utilities in the U.S., focusing on expansion through acquisitions and high-quality service delivery, currently holds a Value Score of B and Zacks Rank 2 [18][20] - **UFP Industries (UFPI)**: A holding company benefiting from long-term business plans and product innovation, with a focus on acquisitions to solidify its product portfolio, currently holds a Value Score of A and Zacks Rank 2 [21][22]

Market Overview - Easing volatility, AI-driven tech strength, and falling rates are supporting stock picking and potential new market highs [1] - The VIX has declined from above 20 to around 16, indicating that recent market volatility was an overreaction [1] - The market is broadening, with a downward trajectory of interest rates acting as a tailwind for US equities [2] Investment Opportunities - The AI revolution is creating a 10% to 15% run-up opportunity in tech stocks that investors should not miss [2] - There is excitement over the president's commitment to $18 trillion in domestic investments, which is expected to drive market performance [1] Company Analysis: WSFS Financial Corporation - WSFS Financial Corporation (NASDAQ:WSFS) is considered one of the most undervalued quality stocks, with a price target increase from $63 to $70 by Keefe Bruyette [7][8] - TD Cowen raised its price target for WSFS Financial to $73 from $67, reflecting an updated financial model anticipating sustained growth through 2026 [9] - The company reported a 29% year-over-year increase in EPS to $1.43 in Q4 2025, driven by strong performance in its Wealth and Trust divisions [9] Company Analysis: Primerica Inc. - Primerica Inc. (NYSE:PRI) is also identified as an undervalued quality stock, with TD Cowen increasing its price target to $326 from $322 [11] - The company reported a 7% increase in adjusted net operating income to $206 million, with diluted adjusted operating EPS rising 11% to $6.33 in Q3 2025 [12] - The Investment and Savings Product segment achieved record sales of $3.7 billion, a 28% year-over-year surge, although the Term Life segment faced challenges with a 15% drop in new policies issued [12][13]

Financial Data and Key Metrics Changes - The company reported a net income of $169 million for the fourth quarter, resulting in an annualized return on equity of 13% [5] - For the full year, net income reached $738 million, with a return on equity of 14.3% [6] - Book value per share increased to $23.47, reflecting a 13% year-over-year growth [6] - Insurance in force grew to over $303 billion, marking a 3% increase from the previous year [7] - The in-force premium yield remained stable at 38 basis points for the quarter [14] Business Line Data and Key Metrics Changes - The company wrote $17 billion in new business during the fourth quarter and $60 billion for the full year, an 8% increase from the prior year [8] - The average credit score at origination for the insurance portfolio was 748, indicating solid credit quality [8] Market Data and Key Metrics Changes - The consensus mortgage origination forecasts suggest that the size of the mortgage insurance market in 2026 will be similar to that of 2025, with elevated mortgage rates expected [8] - Annual persistency remained stable at 85% throughout 2025, aligning with expectations [7] Company Strategy and Development Direction - The company aims to maintain a strong, well-diversified insurance portfolio while focusing on disciplined risk management and capital management strategies [9][10] - The reinsurance program was strengthened with a $250 million excess of loss transaction and a 40% quota share transaction covering most of the 2027 new insurance written [10] - The company is committed to enhancing housing affordability and actively participates in industry discussions to support responsible policy changes [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and ability to execute business strategies in 2026 and beyond, despite challenges in housing affordability [20] - The company noted that while there is potential for increased refinance volume if mortgage rates decrease, this could lead to lower persistency [8][58] Other Important Information - The company paid a quarterly common stock dividend of $33 million and repurchased 6.8 million shares for $189 million in the fourth quarter [17] - For the full year, the company returned $915 million to shareholders, representing a 124% payout ratio of the year's net income [17] Q&A Session Summary Question: Price competition in the industry - Management noted that premiums remained stable and they were able to find value without major adjustments in premiums [25][26] Question: Potential reduction in FHA premiums - Management indicated that while affordability discussions are ongoing, there is no imminent indication of a reduction in FHA premiums [27] Question: Credit trends by region - Management reported no significant geographic movement in new delinquencies, with no areas of concern identified [30][32] Question: Reserve release comparison - Management explained that reserve releases are based on the comparison of initial estimates to current best estimates, with recent quarters showing different drivers for reserve development [33][36] Question: Composition of new delinquencies - Management stated that there has been no significant divergence in cure activity based on vintage, with recent vintages performing better than pre-COVID levels [40][42] Question: Improving returns on capital - Management emphasized the importance of a robust reinsurance program to enhance returns on equity, especially in a challenging market environment [46][47] Question: In-force premium yield decline - Management clarified that the slight decline in in-force premium yield was within the margin of flat and attributed it to increased business written due to refinance activity [54][55] Question: Default rate expectations - Management suggested that while there may be modestly higher delinquency rates in newer vintages, the overall impact on default rates is expected to be limited [60][62]

Core Viewpoint - The market anticipates American International Group (AIG) to report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - AIG is expected to report quarterly earnings of $1.89 per share, reflecting a year-over-year increase of +45.4% [3]. - Revenues are projected to be $7.1 billion, which is a 3.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.31% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for AIG is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.39%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - AIG currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, AIG exceeded the expected earnings of $1.68 per share by delivering $2.20, resulting in a surprise of +30.95% [13]. - Over the past four quarters, AIG has consistently beaten consensus EPS estimates [14]. Conclusion - AIG is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors influencing stock performance ahead of the earnings release [17].

Billionaire Mark Cuban reiterated his criticism of the practices of major insurance companies, urging investors to reconsider their insurance investments. Cuban took to X on Sunday, to call out the big insurance companies for shifting the risk to independent physicians, pharmacists, and patients, who are unable to fight back due to financial constraints. Next step is to identify the funds who have invested in the biggest insurance companies and to move your IRAs and savings elsewhere. Anyone have the dat ...

Core Viewpoint - Erie Indemnity Company will announce its financial results for the fourth quarter and year-end 2025 on February 24, 2026, with a press release issued after market close on February 23, 2026 [1]. Company Overview - Erie Insurance Group is the 11th largest homeowners insurer, 12th largest automobile insurer, and 10th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company [3]. - Founded in 1925, Erie Insurance is a Fortune 500 company and ranks as the 16th largest property/casualty insurer in the United States based on net premiums written [3]. - The company has more than 7 million policies in force and operates in 12 states and the District of Columbia, holding an A (Excellent) rating from AM Best [3].

Core Insights - WTW is satisfied with the participation of Willis Re in the January 2026 renewals, indicating a positive trajectory for the business build-out [1][4] - The joint venture with Bain Capital is progressing well, with numerous hires made since the announcement [3][4] - WTW expects Willis Re to impact Adjusted Diluted EPS negatively by approximately $0.30 this year, but will continue to invest in the reinsurance joint venture [5] Company Developments - WTW completed the sale of Willis Re's treaty reinsurance operations to Arthur J. Gallagher & Co. in late 2021 and confirmed plans to re-enter the market via a joint venture in late 2024 [3] - The CEO of WTW, Carl Hess, has expressed confidence in the progress of the joint venture [3][4] - WTW's CFO, Andrew Krasner, highlighted the operational success of Willis Re during the recent earnings call [4] Market Position and Strategy - WTW is focusing on enhancing its competitiveness in the digital infrastructure business, leveraging its existing relationships with major data center developers [6][7] - The company has developed an integrated global risk framework to address the complex risk profiles of data center projects [7][8] - There is a strong demand for WTW's offerings from both new business and existing clients, indicating a robust pipeline [9]