Core Insights - The article discusses the rise of side hustles and highlights the best dividend stocks for passive income, indicating a growing trend among individuals seeking additional income sources [1][2][3]. Side Hustle Trends - Over 36% of Americans engage in side gigs, earning an average of $530 per month, with Gen Z leading this trend [2] - The global side hustle market was valued at $556.7 billion in 2024, and in March 2025, the US saw a 6.4% increase in new business applications [2] - 55% of full-time workers are interested in turning hobbies into businesses, reflecting a shift towards formal entrepreneurial ventures [2] Dividend Stocks as Passive Income - Dividend stocks provide a reliable source of passive income, appealing to retirees and those seeking stable earnings during market fluctuations [3] - Investors often reinvest dividends to purchase additional shares, potentially increasing both dividend income and overall investment value over time [4] Methodology for Stock Selection - The article utilized Insider Monkey's database of nearly 1,000 hedge funds as of Q2 2025 to identify stocks with strong dividend policies, sound financials, and a history of dividend growth, focusing on those with a minimum yield of 4% as of September 22 [6] Hedge Fund Interest - The article emphasizes the importance of stocks favored by hedge funds, noting that imitating top hedge fund picks can lead to market outperformance [7] Company Highlights - **Arbor Realty Trust, Inc. (NYSE:ABR)**: A real estate investment trust with a dual strategy in structured and agency loan origination, offering a quarterly dividend of $0.30 per share and a yield of 10.26% as of September 22 [8][10] - **Universal Corporation (NYSE:UVV)**: A global agricultural company recognized as a Dividend King, with a history of 55 consecutive years of dividend increases, paying a quarterly dividend of $0.82 per share and a yield of 5.99% as of September 22 [11][13] - **Guess?, Inc. (NYSE:GES)**: An international apparel company that has paid dividends for 18 consecutive years, recently increasing its quarterly dividend by 25% to $0.225 per share, with a yield of 5.35% as of September 22 [14][16]

Core Insights - The Gap, Inc. is recognized as one of the best undervalued stocks to invest in, particularly highlighted by discussions on Reddit [1] - The company is strategically expanding into the beauty and accessories market, which is identified as a fast-growing retail category in the US [1] - The Gap, Inc. plans to initiate a phased launch of its beauty products, starting with a test at Old Navy in the fall [1] Financial Performance - In Q2 2025, The Gap, Inc. reported net sales of $3.7 billion, with a net income of $216 million and diluted EPS of $0.57, exceeding profit expectations [2] - For FY 2025, the company anticipates net sales growth of 1% to 2% [2] Strategic Goals - By 2026, The Gap, Inc. aims to scale its Old Navy beauty business and introduce brand-right expressions across its portfolio [2]

Core Insights - Xcel Brands, Inc. has appointed Olin C. Lancaster as Chief Revenue Officer, bringing over 30 years of experience in global consumer brands and a strong record in revenue growth and operational excellence [2][3] Company Overview - Xcel Brands, Inc. is a media and consumer products company focused on the design, licensing, marketing, live streaming, and social commerce sales of various branded products, including apparel, footwear, and home goods [6] - The company was founded in 2011 with a vision to innovate shopping, entertainment, and social media through social commerce [6] - Xcel owns several brands, including Halston and Judith Ripka, and has partnerships with various creators and brands [6] Leadership Background - Olin C. Lancaster has held senior leadership positions at notable companies such as Kenneth Cole, DKNY, and Ralph Lauren, where he significantly grew the North American wholesale business [3] - At Meridian Brands, he successfully led a rebranding and restructuring effort that improved profitability and operational performance [3] Strategic Vision - Lancaster emphasizes the importance of activating and monetizing brands in a challenging market, highlighting Xcel's dual role as a media and brand management company [4] - The company aims to leverage its extensive experience in live streaming and social commerce to enhance brand value and attract partners [4] Market Impact - Xcel Brands has generated over $5 billion in retail sales through live streaming and digital channels, showcasing its effective sales strategy [6] - The company's brand portfolio has a significant social media presence, reaching over 43 million followers and broadcasting to 200 million households [6]

Core Insights - Gap Inc. has appointed industry icons Deb Redmond and Michele Parsons, and engaged Reed Krakoff and John Demsey to support the strategic expansion of its Beauty and Accessories segment [1] Group 1: Leadership Appointments - The appointments aim to build on the momentum generated over the past two years of transformation within the company [1] - The new leadership is expected to guide Gap Inc. in advancing its vision of becoming a high-performing house of iconic American brands [1] Group 2: Strategic Goals - The focus is on shaping culture and driving sustainable long-term value through the expansion of Beauty and Accessories [1]

Financial Data and Key Metrics Changes - The company reported a 4% growth in Q2, with improvements in both Calvin Klein and Tommy Hilfiger brands [17] - Innovations in Calvin Klein's underwear and denim categories led to a 14% and 19% increase in sales respectively [11][60] - The company reaffirmed its earnings guidance despite tariff rates nearly doubling, with 70% of its business being international [18][68] Business Line Data and Key Metrics Changes - Calvin Klein accounts for approximately 50% of the business, with Tommy Hilfiger making up the other half [3] - Significant growth was noted in the direct-to-consumer (D2C) channel, with sequential improvements in performance [23][31] - The company is focusing on high-quality growth in wholesale, with order books showing low single-digit growth for the upcoming spring season [22] Market Data and Key Metrics Changes - The European market remains the strongest for the company, with a path to high single-digit growth anticipated [21] - In APAC, particularly China, the company saw significant growth during major consumer events, ranking in the top five international brands on Tmall [40][41] - The company opened a flagship store in Harajuku, Japan, which generated significant consumer interest and sales across all channels [44][48] Company Strategy and Development Direction - The company aims to leverage the brand power of Calvin Klein and Tommy Hilfiger to create value, focusing on cultural relevance and consumer engagement [5][6] - The PVH Plus strategy emphasizes stronger product offerings and disciplined marketplace execution to drive growth [27][70] - The company is centralizing its global product creation to improve efficiency and margins, with expectations of significant improvements in the second half of the year [50][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain tariff environment while maintaining strong brand relevance [26][68] - The company anticipates that brand strength will become increasingly important in a competitive landscape [30] - Management is optimistic about achieving margin expansion through improved consumer offerings and cost efficiency measures [70][72] Other Important Information - The company is focusing on building a strong consumer base by enhancing product storytelling and engagement strategies [34][35] - The management highlighted the importance of forward-looking planning and execution to ensure successful product launches and market presence [60][62] Q&A Session Summary Question: What gives confidence in the improvement trend in Europe? - Management noted strong brand positioning and growth in wholesale order books as indicators of improvement [22] Question: Expectations for the North American environment in 2025? - Management acknowledged uncertainty but expressed confidence in the strength of their brands and consumer response [26] Question: How is the competitive environment expected to change? - Management believes brand strength and relevance will be crucial for gaining market share [30] Question: What changes are expected in DTC performance? - Management reported sequential improvements in DTC performance and emphasized the importance of product storytelling [31][34] Question: How is the company addressing tariff impacts? - Management is working on mitigation strategies and remains focused on improving the consumer offering [66][70] Question: What is the outlook for operating margins? - Management is confident in achieving margin expansion through disciplined execution of the PVH Plus plan [70][72]

Market Overview - Wall Street has experienced a rally over the past two months, with investors remaining optimistic despite concerns over the Federal Reserve's monetary policy and tariffs [1] - Federal Reserve Chairman Jerome Powell's hints at a potential rate cut next month have further fueled this rally, leading to a record closing high for the Dow at 45,631.74 points [3][8] Rate Cut Expectations - Investors are anticipating a 25-basis-point interest rate cut in September, with the current range held steady at 4.25-4.5% since December [4] - Inflation data showed a slower growth rate, with the consumer price index (CPI) increasing by 0.2% in July, lower than the expected 0.3% [5] - The market is now pricing in a 90% chance of a quarter percentage point rate cut in September, up from 75% prior to Powell's speech [5] Consumer Discretionary Stocks - Investing in consumer discretionary stocks is recommended due to the optimism surrounding rate cuts, with five highlighted stocks: Boyd Gaming Corporation, Carnival Corporation, The Walt Disney Company, Netflix, Inc., and Ralph Lauren Corporation [2][8] Boyd Gaming Corporation - Boyd Gaming operates gaming entertainment properties across multiple states and has an expected earnings growth rate of 5.2% for the current year, with a Zacks Rank of 1 [6] Carnival Corporation - Carnival Corporation is the largest cruise operator globally, with an expected earnings growth rate of 40.9% for the current year and a Zacks Rank of 2 [7][9] The Walt Disney Company - Disney's revenues reached $91.4 billion in fiscal 2024, with an expected earnings growth rate of 17.7% for the current year and a Zacks Rank of 2 [10][11] Netflix, Inc. - Netflix is a leader in the streaming industry, with an expected earnings growth rate of 31.4% for the current year and a Zacks Rank of 2 [12][13] Ralph Lauren Corporation - Ralph Lauren is a major designer and distributor of premium lifestyle products, with an expected earnings growth rate of 19.8% for the current year and a Zacks Rank of 2 [14]

Core Insights - X T-shirt is innovating endurance events by creating interactive race apparel and medals that enhance participant and sponsor engagement [1][4] - The company focuses on products that change color in real-time, providing memorable experiences that drive excitement and brand impact [1][2] Group 1: Product Innovations - X T-shirt specializes in color-changing shirts and medals, sweat-activated (hydrochromic) printing, and glow-in-the-dark technologies [4][7] - The products are designed to react to environmental conditions and participant efforts, making them integral to the race experience [2][3] - Custom medals include unique features such as bottle openers and interlocking designs, further enhancing their appeal [7] Group 2: Market Engagement - The company has partnered with notable events like the Neches Labor Day 5K and Big Pumpkin Run, amplifying event identity and generating social media buzz [2][3] - Event directors benefit from added value without complicating operations, while sponsors gain extended brand exposure [3] - Runners receive keepsakes that are not only memorable but also wearable and shareable, enhancing post-race engagement [3]

Core Insights - Xcel Brands, Inc. has announced a strategic licensing partnership with TSC Product Lab to launch a new food brand, Mesa Mia by Jenny Martinez, inspired by Latin cooking traditions [1][2][3] Company Overview - Xcel Brands, Inc. is a media and consumer products company engaged in various sectors including design, licensing, marketing, and social commerce sales of branded products [6] - The company was founded in 2011 and has generated over $5 billion in retail sales through livestreaming and digital channels [6] - Xcel's brand portfolio includes well-known names such as Halston and Judith Ripka, and it has a significant social media presence with over 43 million followers [6] Product Launch Details - Mesa Mia by Jenny Martinez will feature a curated line of food products including chips, salsas, proteins, meals, and drink mixes aimed at making Latin cooking accessible [2][5] - The collaboration combines Xcel's brand development expertise with TSC Product Lab's product innovation capabilities [2] Brand and Creator Background - Jenny Martinez is a Latina home cook and social media influencer known for sharing authentic Mexican recipes, which resonate with a large audience [4][9] - Her first cookbook, "My Mexican Mesa, Y Listo!" debuted in Spring 2024, featuring 100 family-style recipes [9] - Jenny has also launched a line of cookware and dinnerware at over 600 department stores and a spice line available in grocery stores [9] Strategic Vision - The partnership aims to inspire families across the country by bringing the joy of Latin cooking into their homes [3][5] - The initiative reflects Xcel Brands' commitment to developing creator-led businesses that align with contemporary cooking and celebration practices [5]

Group 1 - Armata Pharmaceuticals, Inc. (ARMP) is a clinical-stage biotechnology company with a Zacks Consensus Estimate for its current year earnings revised downward by 14.1% over the last 60 days [1] - Columbia Sportswear Company (COLM) is a lifestyle apparel and accessories company, and its Zacks Consensus Estimate for current year earnings has been revised downward by 8.3% over the last 60 days [1] - Eagle Financial Services, Inc. (EFSI) is a bank holding company for Bank of Clarke, with its Zacks Consensus Estimate for current year earnings revised downward by 8.6% over the last 60 days [2]