Core Insights - Value investors traditionally use the price-to-earnings (P/E) ratio to identify value stocks, but for loss-making companies, the price-to-sales (P/S) ratio is more relevant. The price-to-book (P/B) ratio is also a useful tool for identifying undervalued stocks with high return potential [1][5][9]. Valuation Ratios - The P/B ratio is calculated as market capitalization divided by book value of equity, helping to identify low-priced stocks with high growth prospects [2][5]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [5][6]. - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but can be misleading for companies with high R&D expenses or significant debt [8]. Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4]. Screening Parameters - Stocks with a P/B ratio lower than the industry median are considered to have potential for price appreciation [11]. - Additional screening criteria include a P/S ratio below the industry median, a P/E ratio below the industry median, a PEG ratio less than 1, a current price of at least $5, an average 20-day volume of at least 100,000, and a Zacks Rank of 1 or 2 [12][13][14]. Selected Stocks - Five stocks identified with low P/B ratios and solid growth potential include: - **StoneCo (STNE)**: Financial technology solutions provider with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 2 [15]. - **Great Lakes Dredge & Dock (GLDD)**: Largest U.S. dredging services provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 1 [16]. - **EnerSys (ENS)**: Manufacturer of industrial batteries with a projected EPS growth rate of 15.0% and a Zacks Rank of 2 [17]. - **MillerKnoll (MLKN)**: Design solutions provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 2 [17]. - **Keros Therapeutics (KROS)**: Clinical-stage biotech with a projected EPS growth rate of 23.6% and a Zacks Rank of 1 [18].

Group 1 - FIS will present at the KBW Fintech Payments Conference on November 13, 2025, at 4:05pm ET [1] - A live audio webcast and replay will be available on the Investor Relations section of FIS' homepage [1] Group 2 - FIS is a financial technology company that provides solutions to financial institutions, businesses, and developers [2] - The company aims to advance the way the world pays, banks, and invests by helping clients run, grow, and protect their businesses [2] - FIS is headquartered in Jacksonville, Florida, and is a member of the Fortune 500 and the S&P 500 Index [2]

Core Insights - Fidelity National Information Services, Inc. (FIS) is a major player in the financial technology sector with a market capitalization of $33 billion, serving over 20,000 clients globally [1] Performance Overview - FIS shares have underperformed the broader market, declining 25.2% over the past year, while the S&P 500 Index has increased by nearly 17.5% [2] - In 2025, FIS stock is down 19.8%, contrasting with the S&P 500's 15.6% rise year-to-date [2] - FIS has also lagged behind the Global X FinTech ETF (FINX), which gained 11% over the past year and 4.9% in 2025 [3] Recent Earnings Report - On November 5, FIS shares rose 2.5% following a strong third-quarter earnings report, with revenue increasing 6% year-over-year to $2.7 billion and adjusted EPS rising 8% to $1.51, surpassing expectations [4] - The adjusted EBITDA margin improved by approximately 53 basis points to 41.8% [4] - FIS raised its full-year 2025 revenue growth outlook to between 5.4% and 5.7% [4] Analyst Ratings and Price Targets - For the current fiscal year ending in December, analysts project FIS' EPS to grow 10.3% to $5.76 on a diluted basis [5] - FIS has a solid earnings surprise history, having met or exceeded consensus estimates in the last four quarters [5] - Among 27 analysts covering FIS, the consensus rating is a "Moderate Buy," with 13 "Strong Buy," 3 "Moderate Buy," 10 "Hold," and 1 "Strong Sell" [5] - The mean price target is $84.82, indicating a 31% premium to current price levels, while the highest price target of $103 suggests a potential upside of 59.1% [6] - Truist Securities' analyst recently reaffirmed a "Hold" rating but reduced the price target from $75 to $72, a 4% decrease [6]

Core Insights - The London Company reported a 6.0% gross (5.8% net) appreciation in its portfolio for Q3 2025, outperforming the Russell 1000 Value Index which increased by 5.3% [1] - The positive stock selection contributed to the portfolio's outperformance, although sector exposure presented some headwinds [1] Company Analysis: Fidelity National Information Services, Inc. (NYSE:FIS) - Fidelity National Information Services, Inc. experienced a one-month return of -7.31% and a 52-week loss of 26.94%, closing at $63.15 per share with a market capitalization of $32.988 billion on November 4, 2025 [2] - The London Company highlighted that FIS underperformed in Q3 2025 due to inconsistent execution and a weaker outlook, leading to a decision to sell the position to invest in higher conviction ideas [3] - Despite its strong market position and recurring revenue base, FIS faces additional execution risks, prompting a reevaluation of its investment potential [3] Hedge Fund Interest - Fidelity National Information Services, Inc. was held by 49 hedge fund portfolios at the end of Q2 2025, a decrease from 56 in the previous quarter [4] - While FIS is recognized for its potential, the company is not among the 30 most popular stocks among hedge funds, with certain AI stocks being viewed as offering greater upside potential and less downside risk [4]

Core Insights - Toast (TOST) reported $1.63 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 25.1% and an EPS of $0.25 compared to $0.07 a year ago, exceeding Zacks Consensus Estimates [1] - The reported revenue surpassed the Zacks Consensus Estimate of $1.59 billion by 2.6%, while the EPS exceeded the consensus estimate of $0.24 by 4.17% [1] Financial Performance Metrics - Gross Payment Volume (GPV) reached $51.50 billion, exceeding the average estimate of $50.62 billion from three analysts [4] - Subscription Annualized Recurring Run-Rate was $1 billion, slightly below the average estimate of $1.01 billion from three analysts [4] - Total Annualized Recurring Run-Rate (ARR) was $2.02 billion, surpassing the two-analyst average estimate of $2 billion [4] Revenue Breakdown - Revenue from Financial Technology Solutions was $1.35 billion, exceeding the average estimate of $1.31 billion from four analysts, representing a year-over-year increase of 26.1% [4] - Revenue from Subscription Services was $244 million, above the average estimate of $237.92 million from four analysts, reflecting a year-over-year increase of 29.1% [4] - Revenue from Hardware and Professional Services was $44 million, below the average estimate of $46.77 million from four analysts, indicating a year-over-year decline of 10.2% [4] Stock Performance - Shares of Toast have returned -3.3% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Longleaf Partners Fund reported a return of -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and Russell 1000 Value's 5.33% [1] - The fund focuses on investments in real assets and brands that generate growing free cash flow (FCF) per share, with an expectation that the FCF multiple could rise from ~10x to the mid-teens [1] - The fund's management is implementing strategies to improve margins and increase share repurchases [1] Group 2 - Fidelity National Information Services Inc. (NYSE:FIS) was highlighted as a stock in the Longleaf Partners Fund's Q3 2025 investor letter, with a one-month return of 7.20% but a 52-week loss of 23.24% [2] - As of October 23, 2025, FIS stock closed at $67.53 per share, with a market capitalization of $35.788 billion [2] - FIS's Capital Markets segment grew by 5%, which was below expectations, and management noted skepticism in the market despite a rebound in volumes [3] Group 3 - FIS's margins were slightly lower than expected due to an acquisition with lower margins, which is anticipated to improve as integration progresses [3] - The upcoming purchase of Global Payment's Issuer Solutions business and the sale of FIS's remaining Worldpay stake are expected to enhance economic predictability and increase FCF conversion [3] - FIS's management has increased its 2025 stock repurchase plan by $100 million to $1.3 billion, citing that the share price is perceived as too low [3] Group 4 - FIS is not among the 30 most popular stocks among hedge funds, with 49 hedge fund portfolios holding the stock at the end of Q2 2025, down from 56 in the previous quarter [4] - While FIS is recognized for its investment potential, certain AI stocks are believed to offer greater upside potential and less downside risk [4]

Core Insights - Toast, Inc. (NYSE: TOST) has been rated as a Buy by Freedom Capital Markets, with a price target set at $45, highlighting its successful penetration of the US restaurant market [1][2] - The company has achieved approximately 15% market coverage in US restaurant locations since 2011 [1] - Freedom Capital Markets identifies multiple growth catalysts for Toast, including market share gains in small and medium-sized businesses, opportunities in enterprise, food and beverage retail, and international markets [2][3] Company Overview - Toast, Inc. is an American company that provides financial technology solutions and restaurant management software, offering a cloud-based, all-in-one digital technology platform tailored for the restaurant industry [4] - The platform includes solutions for point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management [4] Growth Potential - The firm believes that the identified opportunities can drive sustained growth in key performance indicators, particularly in net new locations and annualized recurring revenue [3] - Toast may exceed its medium-term targets shared during its May 2024 Investor Day [3]

Core Insights - The article discusses the importance of the price-to-book (P/B) ratio as a tool for value investing, highlighting its utility in identifying undervalued stocks with strong growth potential [1][2]. Group 1: Understanding P/B Ratio - The P/B ratio is calculated by dividing the current stock price by the book value per share, indicating how much investors pay for each dollar of book value [2][6]. - A P/B ratio of less than one suggests that a stock is undervalued, while a ratio greater than one indicates overvaluation [6][7]. - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [9][10]. Group 2: Screening Criteria for Value Stocks - Stocks with a P/B ratio lower than the industry median are considered attractive, as they have room for price appreciation [12]. - Additional screening parameters include a lower price-to-sales (P/S) ratio than the industry median, a price-to-earnings (P/E) ratio below the industry average, and a PEG ratio of less than one, indicating undervaluation relative to growth prospects [13][14][15]. - Stocks must also have a minimum trading price of $5 and a substantial average trading volume to ensure liquidity [14][15]. Group 3: Selected Low P/B Stocks - StoneCo (STNE) offers financial technology solutions and has a projected 3-5 year EPS growth rate of 30.3%, with a Zacks Rank of 1 and a Value Score of B [16]. - PagSeguro Digital (PAGS) provides digital payment solutions and has a projected EPS growth rate of 14.2%, also holding a Zacks Rank of 1 and a Value Score of B [17]. - KT Corporation (KT) is a telecommunications provider with a projected EPS growth rate of 51.7% and a Zacks Rank of 2 with a Value Score of A [19]. - Arrow Electronics (ARW) is a major distributor of electronic components, with a projected EPS growth rate of 20.7% and a Zacks Rank of 2 with a Value Score of A [19]. - CVS Health has a projected EPS growth rate of 14.3% and holds a Zacks Rank of 2 with a Value Score of A [20].

Core Insights - The article discusses the importance of the price-to-book (P/B) ratio in value investing, highlighting its utility in identifying undervalued stocks with strong growth potential [1][2]. Group 1: Understanding P/B Ratio - The P/B ratio is calculated by dividing the current stock price by the book value per share, indicating how much investors pay for each dollar of book value [2][6]. - A P/B ratio of less than one suggests that a stock is undervalued, while a ratio greater than one indicates it may be overvalued [6][7]. - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or negative earnings [9][10]. Group 2: Investment Opportunities - Five stocks identified as having low P/B ratios include StoneCo (STNE), CVS Health (CVS), KT Corporation (KT), KB Financial Group (KB), and USANA Health Sciences (USNA) [11][16]. - These stocks have Zacks Rank 1 or 2 and Value Scores of A or B, with projected EPS growth rates ranging from 11.9% to 49.9%, indicating strong potential [11][17][19][20][21]. Group 3: Screening Parameters - Screening parameters for identifying attractive stocks include P/B ratio less than the industry median, P/S ratio less than the industry median, and P/E ratio less than the industry median [12][13]. - A PEG ratio of less than 1 indicates undervaluation relative to future growth prospects, while a minimum stock price of $5 and an average trading volume of at least 100,000 are also considered [14][15].

Core Insights - Toast (TOST) reported revenue of $1.55 billion for the quarter ended June 2025, reflecting a year-over-year increase of 24.8% and a surprise of +1.1% over the Zacks Consensus Estimate of $1.53 billion [1] - The company's EPS for the quarter was $0.24, compared to $0.02 in the same quarter last year, aligning with the consensus EPS estimate [1] Financial Performance Metrics - Gross Payment Volume (GPV) reached $49.90 billion, exceeding the four-analyst average estimate of $49.05 billion [4] - Subscription Annualized Recurring Run-Rate was $950 million, slightly above the average estimate of $945.59 million [4] - Total Annualized Recurring Run-Rate (ARR) stood at $1.93 billion, compared to the $1.9 billion average estimate [4] - Revenue from Financial Technology Solutions was $1.28 billion, surpassing the average estimate of $1.26 billion [4] - Revenue from Subscription Services was $227 million, compared to the average estimate of $221.09 million [4] - Revenue from Hardware and Professional Services was $47 million, below the average estimate of $51.74 million [4] Stock Performance - Toast's shares have returned +10% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]