Monte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the compani ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - All S&P 500 industrial companies that reported quarterly results this week exceeded earnings expectations [1] - On the revenue side, eight out of nine industrial companies reporting this week surpassed Wall Street forecasts [1] Group 1 - The performance of industrial companies indicates a strong earnings season for the sector [1] - The Industrial Select Sector SPDR Fund reflects positive market sentiment towards industrial stocks following these results [1]

Core Viewpoint - The article highlights the expertise of Michael Del Monte as a buy-side equity analyst specializing in technology, energy, industrials, and materials sectors, emphasizing his extensive background in professional services across various industries [1]. Group 1 - Michael Del Monte has over a decade of experience in professional services, which includes sectors such as Oil & Gas (O&G), Oilfield Services (OFS), Midstream, Industrials, Information Technology, Engineering, Procurement, and Construction (EPC) Services, as well as consumer discretionary [1].

Core Viewpoint - The Schwab U.S. Large-Cap Value ETF (SCHV) is designed to offer investors diversified exposure to companies trading at attractive premiums, amidst growing concerns about a potential economic downturn [1]. Group 1 - SCHV is characterized as a low-cost, passively managed exchange-traded fund [1]. - The ETF aims to provide a diversified investment option for those interested in large-cap value stocks [1]. Group 2 - The article does not provide any specific financial performance metrics or detailed analysis of the companies within the ETF [1].

Core Insights - The article highlights the expertise of Michael Del Monte as a buy-side equity analyst specializing in technology, energy, industrials, and materials sectors [1] Group 1: Analyst Background - Michael Del Monte has over a decade of experience in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]

Core Viewpoint - International value stocks have gained significant attention in 2025, with notable performance from European banks, Japanese industrials, and Canadian energy companies, leading to a question of whether this trend is sustainable or a one-time event [1]. Group 1: Performance and Strategy - Dimensional International Value ETF (DFIV) achieved a remarkable 46.6% return over the past year while maintaining a low fee of 0.27% [1]. - DFIV focuses on undervalued companies in developed international markets, particularly in financials, energy, and materials, with a total asset value of $14.9 billion [1]. - The ETF outperformed the iShares MSCI EAFE ETF by 14.3 percentage points and the Vanguard Value ETF by over 30 percentage points, achieving a total return of 40% in 2025 [3]. Group 2: Market Conditions and Risks - Recent performance indicates a cooling trend, with a 4.6% gain over the past month and only 0.7% year-to-date in 2026, suggesting a moderation in explosive growth [4]. - DFIV's concentration in financials, energy, and materials introduces sector risk, particularly during periods of underperformance in these industries [5]. - Significant exposure to European markets means that EU political and economic developments directly impact returns, alongside currency fluctuations that add volatility [6]. Group 3: Investor Considerations - DFIV is best suited for patient investors seeking international diversification with a value tilt, but it requires conviction to endure potential cyclical underperformance [11]. - Short-term traders and those uncomfortable with international exposure should consider alternative investment strategies, as value investing often involves extended periods of underperformance [7][8]. - Vanguard FTSE Developed Markets ETF (VEA) is presented as a simpler alternative for investors seeking international exposure without the active value tilt, offering lower fees and broader market representation [9][10].

Group 1 - Large-cap tech stocks are expected to make a significant comeback, as the market may be underestimating their potential [1] - Recent market trends show a shift towards industrials and cyclicals, with the Industrial Select Sector SPDR Fund (XLI) up 2.80% over the past month, while the Technology Select Sector SPDR Fund (XLK) is down 0.33% [2] - The Magnificent 7, a group of major tech stocks, has seen stalled gains despite strong earnings and cooling valuations [6][11] Group 2 - Investor sentiment can change rapidly, leading to previously strong stocks feeling less favorable [4] - Slimmon argues that the recent sell-off in Big Tech was not due to fundamental issues but rather a shift in investor focus towards safer assets amid rate-cut expectations [11][12] - The Magnificent 7 represents approximately one-third of the S&P 500's weight and nearly 45% of the Nasdaq 100 [8]

Core Insights - National Research Corp. (NRC) is identified as a high-quality subscription business with a modest EBITDA multiple, currently transitioning from contraction to growth [1] - The investment strategy focuses on identifying mispriced opportunities in the market, particularly in cyclical industries, energy, industrials, and under-followed mid-caps [1] - The approach emphasizes cash flow durability, balance sheet strength, and the risks associated with different capital structures, aiming to capitalize on situations where market sentiment lags behind reality [1] Company Analysis - NRC's fundamentals are showing signs of improvement, suggesting a potential inflection point that the market may recognize early [1] - The company is positioned in a sector where expectations can often become detached from actual performance, creating investment opportunities [1] - The focus on asymmetric setups indicates that NRC may have already faced market punishment while its fundamentals are stabilizing or improving [1]

Core Insights - The article highlights the expertise of Michael Del Monte as a buy-side equity analyst specializing in technology, energy, industrials, and materials sectors [1] Group 1: Analyst Background - Michael Del Monte has over a decade of experience in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]