Knife River supplies construction materials and contracting services for public infrastructure projects across multiple U.S. regions.On January 28, Headland Capital disclosed in an SEC filing that it sold out its entire position in Knife River (KNF 0.49%), an estimated $4.89 million transaction based on quarterly average pricing.What happenedAccording to its SEC filing dated January 28, Headland Capital sold all 63,636 shares of Knife River (KNF 0.49%), with the estimated transaction value at approximately ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond ...

Company Overview - Vulcan Materials Company (VMC) has a market capitalization of $39.9 billion and is a leading producer and supplier of construction aggregates in the United States, operating through Aggregates, Asphalt, and Concrete segments [1] Earnings Expectations - Analysts anticipate VMC to report Q4 earnings of $2.11 per share on a diluted basis, reflecting a decrease of 2.8% from $2.17 per share in the same quarter last year [2] - For FY2025, VMC is expected to report an EPS of $8.40, which is an increase of 11.6% from $7.53 in fiscal 2024, and a further rise of 15.6% year over year to $9.71 in fiscal 2026 [3] Stock Performance - VMC stock has increased by 12.5% over the past year, which is lower than the S&P 500 Index's gain of 16.3% but matches the Materials Select Sector SPDR Fund's surge of 12.5% during the same period [4] Recent Financial Results - In the third quarter, VMC reported revenues of $2.29 billion, marking a year-over-year increase of 14.4%, with adjusted EBITDA rising by 26.5% to approximately $735 million [5] - Aggregates shipments increased by around 12% to 64.7 million tons, driven by strong demand from public infrastructure projects, alongside improved pricing and reduced unit cash costs [5] - Management reaffirmed full-year guidance, projecting adjusted EBITDA between $2.35 billion and $2.45 billion [5] Analyst Ratings - The consensus opinion on VMC stock is moderately bullish, with a "Moderate Buy" rating overall; out of 22 analysts, 14 recommend a "Strong Buy," one suggests a "Moderate Buy," and seven give a "Hold" rating [6] - The average analyst price target for VMC is $328.01, indicating a potential upside of 8.7% from current levels [6]

J P M O R G A N Global Markets Strategy 12 January 2026 Equity Strategy Cyclical groups to stay favoured Equity Strategy Mislav Matejka, CFA AC (44-20) 7134-9741 mislav.matejka@jpmorgan.com J.P. Morgan Securities plc Prabhav Bhadani, CFA (44-20) 7742-4404 prabhav.bhadani@jpmorgan.com J.P. Morgan Securities plc Nitya Saldanha, CFA (44 20) 7742 9986 nitya.saldanha@jpmchase.com J.P. Morgan Securities plc Karishma Manpuria, CFA (91-22) 6157-4115 karishma.manpuria@jpmchase.com J.P. Morgan India Private Limited A ...

Industry Overview - The basic materials sector includes companies involved in discovering, developing, and processing raw materials essential for other industries, closely tied to economic cycles [1] - It comprises five industries: metals and mining, chemicals, construction materials, paper and forest products, and containers and packaging [1] Recent Performance - The sector has shown mixed performance over the past year, with the S&P 500 Materials Select Sector SPDR (XLB) advancing 15.3% as of January 13 [2] - Metals and mining sectors performed well, while construction materials and chemicals lagged due to slower global growth and inflation concerns [2] - The cyclical nature of the sector makes it sensitive to global economic conditions, interest rates, and the effectiveness of China's stimulus [2] Future Outlook - The outlook for 2026 appears promising, with expected strong earnings growth for materials companies driven by pricing power from tariffs on steel and robust packaging demand [3] - Demand drivers such as electrification, infrastructure spending, and rising consumption of industrial commodities like lithium, copper, and rare earths are expected to support growth [3] Investment Opportunities - Materials funds can act as portfolio diversifiers and inflation hedges, as raw material prices often rise with inflation [4] - Well-managed materials mutual funds may capture growth while balancing risk across multiple industries within the sector [4][5] Selected Mutual Funds - **Fidelity Select Materials (FSDPX)**: Invests in companies involved in raw materials production, with a 3-year annualized return of 2.3% and a 5-year return of 7.2%, net expense ratio of 0.69%, and a Zacks Mutual Fund Rank of 2 [7][8] - **Franklin Gold and Precious Metals (FKRCX)**: Focuses on gold and precious metals operations, with a 3-year annualized return of 48.4% and a 5-year return of 21.1%, net expense ratio of 0.87%, and a Zacks Mutual Fund Rank of 2 [9][10] - **American Century Global Gold (ACGGX)**: Invests in gold-related companies, with a 3-year annualized return of 44.8% and a 5-year return of 20.1%, net expense ratio of 0.91%, and a Zacks Mutual Fund Rank of 1 [12]

Group 1 - The article emphasizes the importance of high-quality development in Ziyun Autonomous County, aligning with the national strategy for rural revitalization and the "14th Five-Year Plan" goals [2] - The county aims to enhance agricultural productivity through initiatives like "small fields to large fields" and promoting crop rotation, focusing on high-value products such as red heart sweet potatoes and blueberries [2] - The strategy includes expanding the ecological chicken production and enhancing fish farming capacity in collaboration with Guizhou Modern Fisheries Group [2] Group 2 - The county is focusing on three main industries: new energy, new building materials, and ecological food, with projects like the Datang Hongchang Agricultural Photovoltaic Power Station aiming for significant capacity integration [3] - Efforts are being made to optimize tourism experiences by developing diverse attractions and creating a 5A scenic area, enhancing local commerce and night-time economy [3] - The development of a regional tourism industry belt is underway, integrating traditional medicine and high-quality accommodations to establish a summer retreat destination [3] Group 3 - Urbanization efforts in the county include improving urban quality through a "1+4" city inspection model and enhancing residential quality to ensure better living conditions for residents [4] - Infrastructure integration between urban and rural areas is prioritized, with initiatives to improve rural road maintenance and communication services [4] - Continuous poverty alleviation monitoring and employment support systems are being implemented to enhance income through industrial development and labor cooperation [4][5]

Group 1 - The S&P Dow Jones Indices announced changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes, effective December 22, 2025, with new members including Carvana, Comfort Systems USA, and CRH [1] - The S&P 500 and other indexes rebalance regularly to reflect market performance, allowing companies to move between indexes based on their market capitalization and stock price performance [2][4] - Carvana serves as an example of a company that has successfully transitioned from a penny stock facing bankruptcy to being included in the S&P 500 after improving its financials and achieving significant growth [3] Group 2 - Companies must meet specific criteria to be included in the S&P 500, including sufficient market capitalization, adequate trading volume, a majority of shares in public hands, at least one year since their IPO, and consecutive positive earnings [5] - Companies are removed from the index when they consistently fail to meet performance criteria, although there are no strict rules governing this process [6] - A historical example is United States Steel, which was removed from the S&P 500 in 2013 after its market cap fell below $4 billion, demonstrating the dynamic nature of index membership [7]

Core Viewpoint - Martin Marietta Materials (MLM) is positioned for growth acceleration due to strong demand in infrastructure and non-residential construction, with more than half of the IIJA funding yet to be utilized [1] Group 1: Company Performance - The company is experiencing robust demand across various sectors, indicating a positive outlook for future growth [1] Group 2: Industry Context - The ongoing infrastructure projects and funding from the IIJA are expected to drive significant growth opportunities for companies like Martin Marietta Materials [1]

Core Insights - Baupost Group's latest 13F filing reveals a highly selective and concentrated portfolio, focusing on durable businesses with long-term cash generation potential [1][2] Investment Moves - **Restaurant Brands International (QSR)**: Increased by 4,203,300 shares to 8,252,862 shares, representing a $529.3 million position (11.05% of the portfolio). This is now Baupost's largest equity holding, indicating a belief in significant mispricing relative to its stable franchise model and cash flows [3][4] - **Elevance Health (ELV)**: Increased by 703,000 shares to 1,319,000 shares, totaling a $426.2 million position (8.90%). The increase suggests confidence in the company's predictable cash flows and resilience in a politically noisy sector [5][6] - **Union Pacific (UNP)**: Newly established position with 1,496,204 shares, valued at $353.7 million (7.38%). The railroad's high barriers to entry and pricing power align with Baupost's focus on downside protection [7][8] - **Alphabet (GOOG)**: Reduced by 775,850 shares to 1,858,138 shares, now a $452.6 million position (9.45%). The reduction reflects portfolio risk management rather than a loss of conviction [9] - **CRH plc (CRH)**: Trimmed by 442,000 shares to 3,383,395 shares, valued at $405.7 million (8.47%). The trim indicates a disciplined approach to valuation, despite the long-term thesis remaining intact [10] - **Full Exits**: Baupost exited several positions entirely, including Viasat, Liberty Broadband, ICON plc, and Amcor, signaling a shift in risk-reward balance [11][12] Strategic Focus - The quarter was characterized by conviction-driven capital redeployment into high-confidence ideas, particularly in sectors like restaurants, railroads, healthcare, and materials [13][14] - Trimming positions like GOOG and CRH reflects a focus on risk management and valuation discipline rather than a bearish outlook [15] - The top 10 positions account for over 75% of disclosed assets, emphasizing Baupost's belief in concentration as a strategy against ignorance [16] - The portfolio prioritizes downside protection, with upside driven by business durability rather than macroeconomic bets [17]

Core Insights - High liquidity stocks are in demand due to their potential for maximum returns, making them attractive for investors seeking solid gains [1][3] - Four top-ranked stocks identified for potential portfolio addition are Ciena Corporation (CIEN), EverQuote, Inc. (EVER), PJT Partners Inc. (PJT), and Commercial Metals Company (CMC) [2][10] Liquidity Measures - Current Ratio: Measures current assets against current liabilities; a ratio below 1 indicates more liabilities than assets, while a range of 1-3 is ideal [5] - Quick Ratio: Indicates ability to pay short-term obligations, with a desirable ratio of more than 1 [6] - Cash Ratio: The most conservative measure, focusing on cash and equivalents relative to current liabilities; a ratio greater than 1 is desirable but may indicate inefficiency [7] Screening Parameters - Asset Utilization: A measure of efficiency, calculated as total sales over the last 12 months divided by the average total assets; a higher ratio than the industry average indicates efficiency [8] - Growth Score: A proprietary measure ensuring that liquid and efficient stocks have solid growth potential; stocks with a Growth Score of A or B tend to outperform [9][11] Company-Specific Insights - **Commercial Metals Company (CMC)**: Engaged in M&A to enhance financial profile; recent acquisitions include Concrete Pipe & Precast for $675 million and Foley for $1.84 billion, expected to generate annual synergies of $25-$30 million by the third year [12][13] - **EverQuote, Inc. (EVER)**: An online insurance marketplace benefiting from exclusive data assets and technology; reported revenues of $173.9 million, a 20% year-over-year increase, with strong growth in automotive insurance [15][16] - **PJT Partners Inc. (PJT)**: An advisory-focused investment bank reporting third-quarter revenues of $447 million, up 37% year-over-year, driven by strategic advisory revenues [18][19] - **Ciena Corporation (CIEN)**: A provider of optical networking equipment, reporting a 20% year-over-year revenue increase; expects further gains in 2026 with a revenue outlook of $5.7-$6.1 billion, driven by strong demand from cloud and AI infrastructure [20][21][22]