Core Viewpoint - The article discusses the recent poor performance of certain stocks, highlighting the need for investors to discern between genuine buying opportunities and potential pitfalls in the market [1]. Group 1: Stocks to Sell - **FactSet (FDS)**: The stock has seen a one-month return of -5.7% and is currently trading at $261.06 per share, with a forward P/E ratio of 14.6x [2][3]. - **Kemper (KMPR)**: This stock has experienced a significant one-month return of -26.8%, trading at $36.43 per share with a forward P/B ratio of 0.8x [4][6]. Group 2: Stock to Watch - **Broadridge (BR)**: The stock has a one-month return of -7.3%. It has shown muted annual revenue growth of 5.5% over the last two years, with earnings growth lagging behind peers at an annual increase of 8.1% [7][8]. - Broadridge processes over $10 trillion in trades daily and manages proxy voting for over 800 million equity positions, providing technology-driven solutions for financial institutions [9]. - The company stands out due to its unique value proposition, achieving above-market annual sales growth of 8.9% over the last five years, an increase in free cash flow margin by 8.6 percentage points, and rising returns on capital [10].

Core Insights - S&P Global is considered a stable investment due to its essential financial data, credit rating, and analytics services, serving a significant portion of Fortune 100 and Fortune 500 companies [1][2] - The company has experienced slower stock growth over the past year, with only a 1% increase [1] - Despite market challenges, S&P Global is expected to raise its full-year revenue and adjusted EPS guidance, particularly in light of recent Federal Reserve interest rate cuts [10][11] Company Overview - S&P Global holds a near-duopoly in the financial data and credit rating services market alongside Moody's, serving major financial institutions and corporations [4] - The company's services are crucial in both bull and bear markets, although its credit rating business is sensitive to macroeconomic factors like inflation and interest rates [6] Financial Performance - Revenue growth has fluctuated, with a notable 35% increase in 2022 followed by a 12% growth in 2023, and a projected 5% to 7% increase for the full year [7][8] - Adjusted EPS growth has also varied, with a decline of 4% in 2022, but expected to rise by 8% to 10% in 2023 [7][8] Market Position - At a current price of $495 per share, S&P Global's stock is valued at 29 times the midpoint of its adjusted EPS forecast, which is reasonable compared to Moody's higher valuation [9] - The planned spin-off of S&P Global Mobility is anticipated to streamline operations and enhance earnings by 2026 [11] Dividend Information - S&P Global has a forward dividend yield of 0.8% and has consistently raised its dividend for over 50 years, indicating resilience against market challenges [12] Future Outlook - The upcoming Q3 earnings report on October 30 is critical, as exceeding analysts' estimates could lead to a significant stock price increase [13]

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Mid Cap Composite underperformed with a return of -3.2% net-of-fees compared to a 2.8% gain for the Russell Midcap Growth Index [1] - The focus on high-quality, profitable companies faced challenges in a risk-on environment, impacting performance [1] Company Analysis: FactSet Research Systems Inc. (NYSE:FDS) - FactSet Research Systems Inc. provides integrated financial information and analytical applications for the investment community, with a one-month return of 1.98% and a 52-week loss of 36.76% [2] - As of October 21, 2025, FactSet's stock closed at $294.11 per share, with a market capitalization of $11.119 billion [2] - The company is experiencing slowed organic growth due to budget constraints at asset managers and increased competition from firms like Bloomberg and S&P, alongside rising technology and content costs affecting margins [3] - Despite being a high-quality franchise, FactSet's premium valuation presents execution risks [3] Market Position and Hedge Fund Interest - FactSet is not among the 30 most popular stocks among hedge funds, with 36 hedge fund portfolios holding the stock at the end of Q2 2025, an increase from 29 in the previous quarter [4] - In Q4 of fiscal 2025, FactSet's revenues grew by 6.2% year-over-year, reaching $597 million [4] - While FactSet shows potential as an investment, certain AI stocks are considered to offer greater upside potential with less downside risk [4]