Core Insights - The U.S. equity markets have experienced volatility, with gains in blue-chip tech companies offset by concerns over AI firm valuations, leading to expectations of a market correction [2] - Investors are anxious about the Federal Reserve's potential actions regarding interest rates amid a government shutdown that has created a data vacuum [2] - The upcoming September nonfarm payrolls report is highly anticipated for insights into economic trends and Federal Reserve decisions [3] Momentum Investing Strategy - Momentum investing is characterized by "buying high and selling higher," capitalizing on established trends in stock prices [4] - This strategy has historically generated alpha across various market conditions, though it requires skill to identify trends effectively [5] - A screening strategy has been developed to identify stocks with long-term price momentum and short-term pullbacks [5] Screening Parameters - The screening process selects the top 50 stocks based on the best percentage price change over the past 52 weeks [6] - From these, the 10 worst performers over the last week are chosen to identify those experiencing short-term pullbacks [7] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized for selection [8] Selected Stocks - Seagate Technology Holdings plc (STX) has seen a 169.4% increase over the past year but a recent decline of 11.1%, with a Momentum Score of B [12] - Robinhood Markets, Inc. (HOOD) has surged 231.3% in the past year but dropped 14.6% in the last week, holding a Momentum Score of A [14] - Everus Construction Group, Inc. (ECG) has increased by 46.7% over the past year but declined 13.7% recently, also with a Momentum Score of A [15]

Core Viewpoint - Everus Construction Group reported strong financial results for the third quarter of 2025, with significant revenue and EBITDA growth, and raised its guidance for the full year 2025, reflecting robust business momentum and project execution [1][3][6]. Financial Performance - Revenues increased by 29.7% to $986.8 million in Q3 2025, compared to $761.0 million in Q3 2024 [7]. - Net income rose by 36.4% to $57.0 million, with a net income margin of 5.8% [10][11]. - EBITDA grew by 36.9% to $89.0 million, with an EBITDA margin of 9.0% [12][10]. Segment Performance - The Electrical and Mechanical (E&M) segment saw revenues increase by 42.9% to $767.3 million, driven by strong demand in the commercial and renewables markets [14]. - The Transmission and Distribution (T&D) segment experienced a slight revenue decline of 2.2% to $223.4 million, although net income increased by 9.7% to $20.3 million [18][19]. Backlog and Market Activity - Backlog as of September 30, 2025, increased to $2.95 billion, up 6.0% from December 31, 2024 [13]. - Bidding activity remains healthy across commercial, industrial, and utility markets, indicating continued growth opportunities [4]. Guidance and Future Outlook - The company raised its full-year 2025 revenue guidance to a range of $3.55 billion to $3.65 billion and EBITDA guidance to $290 million to $300 million [6][38]. - The company expects ongoing momentum into 2026, focusing on long-term shareholder value [6]. Financial Position - As of September 30, 2025, the company had a net leverage of 0.5 times and approximately $340 million in available liquidity, indicating a strong financial position [5][29]. - Working capital increased to $523.5 million, driven by project timing and workload activity [30]. Cash Flow and Capital Expenditures - Operating cash flows for the nine months ended September 30, 2025, were $108.6 million, up from $82.7 million in the prior year [31]. - Capital expenditures increased to $42.1 million, reflecting investments in vehicles, equipment, and building to support growth [32].