Core Insights - The market is witnessing a potential multi-year outperformance cycle for low-valuation equities and small caps, which have lagged for about a decade [2] - Value stocks outperformed growth stocks by 269-724 basis points across all market caps in Q4 [3] - The concentration of large-cap technology stocks has increased significantly, with the top 12 AI-linked stocks adding approximately $15 trillion in market cap since the launch of ChatGPT in 2022, while their revenue growth was only $650 billion [5] Market Performance - In Q4, value stocks across various market caps showed significant outperformance compared to growth stocks, with the Russell Top 200 value stocks returning 3.81% versus 1.12% for growth, resulting in a 2.69% difference [4] - Small caps have shown signs of recovery, with earnings growth slightly exceeding that of larger companies for the first time in thirteen quarters [7] - The Deep Value Select strategy returned +5.09% in the last quarter, outperforming both the S&P 1500 Value Index and the S&P 600 Value Index [12] Capital Expenditure Trends - The five largest AI hyperscalers have seen their combined capital expenditures rise from $97 billion in 2020 to approximately $400 billion in 2025, with expectations of exceeding $600 billion by 2027 [6] - Technology sector capital expenditures as a percentage of U.S. GDP are projected to surpass the peak of 1.2% seen in 2000 [6] Company-Specific Insights - Nabors Industries improved its balance sheet significantly, reducing debt leverage from over 6x to near 2x, and is well-positioned to benefit from a potential increase in global rig demand [14][17] - JELD-WEN is undergoing a multi-year transformation to improve profitability, despite facing challenges in the housing market [19] - Conduent is in the midst of a multi-year transformation, focusing on streamlining operations and reducing debt, with a significant portion of its shares repurchased [20][24] Valuation Insights - Small caps are currently trading at a forward 1-year price-to-earnings multiple that is 30% lower than large caps, indicating a potential for valuation expansion [8] - The valuation spread between large-cap growth and small-cap value is near historical extremes, suggesting that small-cap value may be poised for outperformance [12]

Group 1: Stock Highlights - Solitario Resources Corp. (XPL) has seen a 33.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - CTO Realty Growth, Inc. (CTO) has experienced a 4.4% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Maximus, Inc. (MMS) has had a 6.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Gold Fields Limited (GFI) has seen a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Universal Insurance Holdings, Inc. (UVE) has experienced a significant 63.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1: CTO Realty Growth, Inc. (CTO) - CTO is a publicly traded real estate investment trust with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for CTO's next year earnings has increased by 4.4% over the last 60 days [1] - CTO has a price-to-earnings ratio (P/E) of 8.13, compared to the industry average of 12.90, and possesses a Value Score of B [1] Group 2: Universal Insurance Holdings, Inc. (UVE) - UVE is an insurance holding company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for UVE's current year earnings has increased by 63.8% over the last 60 days [2] - UVE has a price-to-earnings ratio (P/E) of 6.58, compared to the industry average of 12.80, and possesses a Value Score of A [2] Group 3: Maximus, Inc. (MMS) - MMS is a business process services provider to the public sector with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for MMS's current year earnings has increased by 6% over the last 60 days [3] - MMS has a price-to-earnings ratio (P/E) of 12.32, compared to the industry average of 14.50, and possesses a Value Score of B [3]

Group 1 - Universal Insurance Holdings, Inc. (UVE) has seen a 63.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 2.2%, significantly higher than the industry average of 0.7% [1] - Gold Fields Limited (GFI) has experienced a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 1.5%, compared to the industry average of 0.0% [2] - Maximus, Inc. (MMS) has seen a 6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 1.4%, which is above the industry average of 0.6% [3]

Core Insights - Capgemini has completed the acquisition of WNS, creating a global leader in Agentic AI-powered Intelligent Operations [1][2] - The acquisition is valued at $3.3 billion, with a cash consideration of $76.50 per WNS share [2] - Capgemini aims to leverage WNS's industry expertise and platforms to enhance its capabilities in transforming business processes [2] Financial Details - The total cash consideration for the acquisition amounts to $3.3 billion, excluding WNS's net financial debt, which was negligible as of March 31, 2025 [2][4] - Capgemini successfully priced €4.0 billion in bonds to finance the acquisition and refinance its financial debt [2] Strategic Vision - Both companies share a vision of utilizing agentic AI to transform business operations, focusing on efficiency and agility through hyper-automation [2] - The integration is expected to unlock long-term value for clients, employees, partners, and communities [2] Company Background - Capgemini is a global business and technology transformation partner with 350,000 team members across more than 50 countries [3] - The company reported global revenues of €22.1 billion for the year 2024 [3]

Core Insights - Genpact has been recognized as a Leader and Star Performer in Everest Group's 2025 Supply Chain Management (SCM) PEAK Matrix Assessments, highlighting its leadership in supply chain management services [1][7] - The company secured the top position in the inaugural SCM Planning BPS PEAK Matrix® 2025 assessment, noted for its end-to-end planning expertise and technology partnerships [2][7] Group 1: Recognition and Achievements - Genpact's recognition underscores its ability to drive measurable outcomes in supply chain transformation through its planning-as-a-service model [3] - The company combines consult-to-operate models with deep planning expertise, enhancing clients' planning maturity and time to value [4][8] - Everest Group evaluated 16 providers for SCM BPS and 12 for SCM Planning BPS, with Genpact being recognized for its strong market impact and capability advancements [4] Group 2: Service Offerings and Capabilities - Genpact offers end-to-end services in planning, orchestration, control tower, and resilience, supported by modular tools and AI innovation [8] - The company has an extensive delivery network with new hubs in Japan and Costa Rica, providing flexible as-a-service models for various clients [8] - Ongoing talent development is emphasized through training platforms and academic partnerships to build a future-ready workforce [8] Group 3: Sustainability Initiatives - Genpact integrates carbon-tracking and reduction capabilities through ESG-focused partnerships, promoting greener supply chains [8]

Group 1: Company Overview - Teleperformance (TP) has been ranked 2 in the Everest Group's BPS Top 50™ 2025 list, improving one position from the previous year, highlighting its market leadership and consistent delivery [1] - TP's comprehensive service portfolio includes customer experience management, finance and accounting, and other key industries, reflecting its diversified offerings [3][5] - In 2024, Teleperformance reported consolidated revenue of €10,280 million (approximately US$11 billion) and a net profit of €523 million, indicating strong financial performance [5] Group 2: Industry Insights - The global third-party Business Process Services (BPS) industry is valued at nearly $300 billion, with over 250 providers in the market, showcasing significant market size and competition [3] - The Everest Group BPS Top 50™ list serves as a factual representation of the largest third-party providers, helping enterprises identify scaled-up providers and their functional coverage [2]

Core Insights - Capgemini is set to acquire WNS for $76.50 per share, totaling $3.3 billion, which represents a premium of 28% over the last 90-day average share price [2][5] - The acquisition is expected to enhance Capgemini's normalized EPS by 4% in 2026 and 7% in 2027 post-synergies [2][20] - The transaction has been unanimously approved by the boards of both companies and is anticipated to close by the end of the year [5][22] Strategic Rationale - The acquisition aims to create a leader in Intelligent Operations, leveraging Agentic AI to transform business processes [3][12] - Capgemini will gain scale and vertical expertise to capitalize on the shift from traditional Business Process Services (BPS) to AI-powered operations [3][5] - WNS's high-growth Digital BPS will enhance Capgemini's service offerings and increase its presence in the US market [4][10] Financial Impact - The combined entities are projected to generate revenues of €1.9 billion in Digital BPS by 2024 [10] - WNS has shown a consistent revenue growth of approximately 9% over the last three fiscal years, reaching $1,266 million in fiscal year 2025 with an 18.7% operating margin [8][9] - Capgemini expects revenue synergies of €100 million to €140 million and cost synergies of €50 million to €70 million by the end of 2027 [20] Market Positioning - The acquisition positions Capgemini to meet the growing demand for AI-driven business process transformation, addressing client needs for efficiency and agility [3][12] - The combination of Capgemini and WNS will create a robust platform for innovation and growth, enhancing their competitive edge in the market [6][17] - Both companies share a vision for Intelligent Operations, which will facilitate a smooth integration and unlock new opportunities for clients [6][21]