Core Insights - The AI-driven bull run of 2023 and 2024 has continued into 2025, with stock prices of AI-centric companies increasing by 300-500% during this period [1] - Old economy stocks from sectors such as industrials, finance, auto, materials, and construction have also seen significant gains, indicating a broad-based market rally [2] Old Economy Stocks - Five old-economy stocks have rallied over 15% year to date and have favorable Zacks Ranks indicating further upside potential in 2026: Comfort Systems USA Inc. (FIX), The Travelers Companies Inc. (TRV), General Motors Co. (GM), JPMorgan Chase & Co. (JPM), and Crane Co. (CR) [3][9] - Each of these stocks carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3] Comfort Systems USA Inc. (FIX) - FIX operates primarily in the HVAC markets and is benefiting from the data center boom driven by AI and cloud computing [6][7] - The company has an expected revenue growth rate of 14.7% and earnings growth rate of 16.4% for the next year, with a 20.1% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [8] The Travelers Companies Inc. (TRV) - TRV has a strong market presence in auto, homeowners' insurance, and commercial property-casualty insurance, with a high retention rate and positive renewal premium changes [10][11] - The expected revenue growth rate is 3.4% and earnings growth rate is 6.7% for the next year, with a 2% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [12] General Motors Co. (GM) - GM holds a 17% market share in the U.S. automotive market, supported by strong demand for its brands and a 10% year-over-year sales increase in China [13][14] - The expected revenue growth rate is -0.8% and earnings growth rate is 11.5% for the next year, with a 6.5% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [15] JPMorgan Chase & Co. (JPM) - JPM is expected to see net interest income growth driven by business expansion initiatives and high interest rates, with a projected CAGR of 3.3% by 2027 [16] - The expected revenue and earnings growth rate for the next year is 3.7%, with a slight improvement in the Zacks Consensus Estimate for next year's earnings [18] Crane Co. (CR) - Crane manufactures engineered industrial products across various regions and has an expected revenue growth rate of 6.1% and earnings growth rate of 9.5% for the next year [19] - The Zacks Consensus Estimate for next year's earnings has improved by 2.5% over the last 30 days [19]

Core Insights - U.S. stock markets have experienced a significant rally in 2023, with the S&P 500 Index up 16.7% year to date, primarily driven by advancements in artificial intelligence technology [1][8] - Several non-tech companies have also shown strong performance, indicating potential investment opportunities in diverse sectors [1][8] Company Summaries General Motors Co. (GM) - GM holds a 17% market share as the top-selling U.S. automaker, with strong demand across its brands [5] - The company reported a 10% year-over-year sales increase in China and has generated $2 billion in revenue from its software and services division [6] - GM's expected revenue and earnings growth rates for next year are -0.7% and 7.9%, respectively, with a 10.8% improvement in earnings estimates over the last 30 days [7] Morgan Stanley (MS) - MS is focusing on wealth and asset management, with strategic acquisitions like EquityZen to enhance its market position [8] - The investment banking segment is projected to see revenue and fee increases of 11.7% and 12.8% in 2025, respectively [9] - Expected revenue and earnings growth rates for next year are 4.1% and 5.8%, with a 3.7% improvement in earnings estimates over the last 30 days [10] Interactive Brokers Group Inc. (IBKR) - IBKR is enhancing its proprietary software and expanding its global footprint, which is expected to support revenue growth [11][12] - The company reported solid revenue growth and lower expenses in its third-quarter results for 2025 [12] - Expected revenue and earnings growth rates for next year are 5.3% and 7.8%, with a 1.4% improvement in earnings estimates over the last seven days [13] Las Vegas Sands Corp. (LVS) - LVS reported a 77.3% increase in earnings and a 24.2% increase in revenues year-over-year for the third quarter of 2025, driven by strong travel demand [14] - The company is focusing on growth in Macao and Singapore, with significant capital investments and new offerings at Marina Bay Sands [15] - Expected revenue and earnings growth rates for next year are 5.1% and 7.3%, with a 10.1% improvement in earnings estimates over the last 30 days [16] Universal Health Services Inc. (UHS) - UHS is expanding its Acute Care and Behavioral Health segments, resulting in a 9.9% increase in net revenues year-over-year for the first nine months of 2025 [17] - The Acute Care unit's revenues rose 11.5% year-over-year, and the company is committed to shareholder returns through share repurchases and dividends [18] - Expected revenue and earnings growth rates for next year are 5% and 7.7%, with a 0.1% improvement in earnings estimates over the last seven days [19]

Core Insights - Wall Street has experienced a significant rally in 2023, primarily driven by advancements in artificial intelligence (AI) technology, particularly generative and agentic AI, which have transformed the information technology sector globally [1] Group 1: Non-Tech Stocks with Growth Potential - Several non-tech companies have emerged as strong investment opportunities alongside tech giants, with a favorable Zacks Rank indicating potential for fruitful investments by 2026 [2] - The selected non-tech stocks include Southern Copper Corp. (SCCO), HCA Healthcare Inc. (HCA), General Motors Co. (GM), Morgan Stanley (MS), and Capital One Financial Corp. (COF), all holding a Zacks Rank 1 (Strong Buy) [2] Group 2: Southern Copper Corp. (SCCO) - Southern Copper has the largest copper reserves in the industry and operates in investment-grade countries like Mexico and Peru, positioning it for enhanced performance through low-cost production and growth investments [5][6] - The company has a capital investment program exceeding $15 billion for this decade, with approximately $10.3 billion allocated to Peru, the second-largest copper producer [6] - SCCO's expected revenue and earnings growth rates for the next year are 1.5% and 12.1%, respectively, with a 14.4% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [8] Group 3: HCA Healthcare Inc. (HCA) - HCA Healthcare's revenues have increased by 7.2% year over year in the first nine months of 2025, driven by growth in admissions and inpatient surgeries, with projected revenues of $75-$76.5 billion for 2025 [11] - The company has engaged in multiple buyouts to expand its network and increase patient volumes, alongside a significant share repurchase of $7.5 billion and dividend payments of $517 million in the same period [12] - HCA's expected revenue and earnings growth rates for the next year are 4.3% and 8.4%, respectively, with a 5% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [13] Group 4: General Motors Co. (GM) - General Motors holds a 17% market share as the top-selling U.S. automaker, with strong demand for its brands and a 10% year-over-year sales increase in China [14] - The company's software and services division has generated $2 billion in revenue year to date, supported by 11 million OnStar subscribers, and it maintains strong liquidity of $35.7 billion [15] - GM's expected revenue and earnings growth rates for the next year are -0.7% and 7.9%, respectively, with a 0.6% improvement in the Zacks Consensus Estimate for next year's earnings over the last seven days [16] Group 5: Morgan Stanley (MS) - Morgan Stanley's focus on wealth and asset management, along with strategic acquisitions like EquityZen, is expected to enhance its top line, with projected revenue and investment banking fee increases of 11.7% and 12.8% in 2025 [17] - Despite challenges in trading revenue growth due to market volatility, the company maintains a solid balance sheet with efficient capital distributions [18] - MS's expected revenue and earnings growth rates for the next year are 4.1% and 5.8%, respectively, with a 0.1% improvement in the Zacks Consensus Estimate for next year's earnings over the last seven days [18] Group 6: Capital One Financial Corp. (COF) - Capital One's third-quarter 2025 results benefited from higher revenues, particularly from the Discover Financial acquisition, reshaping the credit card landscape [19] - Strong consumer loan demand is anticipated to support COF's net interest income, with solid credit card and online banking operations contributing to revenue growth [20] - COF's expected revenue and earnings growth rates for the next year are 18% and 6.2%, respectively, with a 2.5% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [20]

Group 1 - General Motors Company (NYSE:GM) achieved its highest third-quarter market share since 2017, driven by strong performance in full-size pickups and SUVs, as well as record crossover deliveries [1] - Despite scaling back on electric vehicles (EVs), Chevrolet has become the number two EV brand in America [1] - GM is beginning to see significant contributions from its self-driving technology, Super Cruise, and its software and services business, including OnStar [1] Group 2 - General Motors manufactures vehicles and parts under various brands, including Chevrolet, Cadillac, Buick, GMC, Baojun, and Wuling [2]

Core Insights - General Motors (GM) is restructuring its design engineering team, resulting in layoffs primarily at its tech center in Warren, Michigan, affecting "low hundreds" of workers [1][2] - The layoffs were announced shortly after GM reported strong third-quarter earnings, which led to a 15% surge in the company's stock, marking its largest single-day gain since 2020 [2] - GM has raised its profit outlook due to reduced tariff pressures and lower electric vehicle (EV) losses, having previously reported a $1.1 billion profit reduction due to tariffs and $1.6 billion in charges related to its EV plan rollback [3] Industry Context - Other automakers, such as Rivian, are also downsizing, with Rivian planning to cut 600 jobs, which is 4.5% of its workforce, in response to the expiration of the $7,500 EV tax credit in the US [4]

Core Insights - General Motors (GM) is positioning itself to lead in the AI evolution within the automotive industry, planning to integrate conversational AI powered by Google Gemini into its vehicles next year, ahead of launching its own custom-built AI [1][2] - The automaker aims to enhance driver experience by allowing drivers to draft messages, plan routes with context, and prepare for meetings on the go, with updates starting in 2026 for OnStar-equipped vehicles from model year 2015 [2] - GM's broader vision includes creating vehicles that not only transport but also anticipate and adapt to driver needs, improving over time [3] AI Development - GM is developing its own custom-built AI tailored to each vehicle's intelligence and driver preferences, although a specific launch date has not been provided [5] - The AI platform will be integrated with OnStar to provide vehicle-specific insights, maintenance alerts, and optimized route planning, while also explaining car features and making recommendations based on driver history [6] Privacy and Control - The new AI system will include privacy controls, allowing drivers to manage what information they share and how personalized their experience is [8] Future Innovations - GM plans to introduce "eyes-off driving" technology in 2028, starting with the Cadillac Escalade IQ, which will handle driving tasks on highways, marking a progression from the current hands-free driving capabilities of Super Cruise [9] - The vehicle's dashboard will feature turquoise lighting to indicate when the system is active [10] - GM's approach to autonomous driving incorporates redundancy with LiDAR, radar, and cameras, providing a comprehensive 3D map of the vehicle's environment [11]

Core Insights - Rare earth metals are essential for modern technologies, with increasing global demand and supply risks, particularly due to China's export restrictions [1] - General Motors (GM) is positioning itself as a leader in rare earth production, having invested in this area since 2021, making it the only major U.S. automaker with a domestic magnet source [2] - GM's strategic move to reduce reliance on China enhances its competitive edge as rare earth elements become critical in global trade [2] Company Overview - General Motors has a market capitalization of approximately $54 billion and operates under brands such as Chevrolet, GMC, Buick, and Cadillac [4] - The company is transitioning aggressively to electric vehicles (EVs) through its Ultium platform and advanced driver-assist technologies [4] Stock Performance - GM shares have increased by about 8% year-to-date and 17% over the past year, outperforming the broader auto sector due to strong vehicle sales and a disciplined EV investment strategy [5] - The company's robust sales in North America, particularly in pickups and SUVs, contributed to better-than-expected Q2 results [5] Valuation Metrics - GM's stock is considered attractively valued, trading at a mid-single-digit P/E of 9x and around 0.3x sales, which is significantly lower than the average for large automakers [6] - The price/book ratio of 0.8x indicates that GM's stock is undervalued in terms of both earnings and assets, suggesting limited downside if growth strategies are executed effectively [6]

Core Viewpoint - The recent announcement by General Motors (GM) regarding a $1.6 billion charge reflects the impact of changing U.S. policies on electric vehicles, leading to a reassessment of production capacity and future demand for electric vehicles [1][2]. Financial Impact - GM plans to record a $1.6 billion charge in its Q3 financial report, which includes $1.2 billion in non-cash impairment and $400 million in cash expenses due to the cancellation of investments and contracts related to electric vehicles [2][3]. - This charge is expected to affect the company's future operations and cash flow, necessitating a separate announcement due to its significant impact [2]. Accounting Practices - The concept of "provisioning" in accounting is highlighted, where expenses that have been incurred but not yet paid are recorded in the current period [4][5]. - GM's charge will be reflected in the Q3 financials, adhering to accounting principles that require recognition of economic events in the period they occur, regardless of cash flow [5]. Market Context - The shift in U.S. policy under Trump, which includes the cancellation of a $7,500 tax credit for electric vehicles and relaxed emissions regulations, is expected to slow consumer demand for electric vehicles [2][9]. - This policy change has prompted GM to adjust its production strategy, focusing more on fuel vehicles rather than electric vehicles, which may lead to short-term losses [2][9]. Industry Trends - The overall trend in mature automotive markets like Europe and the U.S. shows a slowdown in electric vehicle development, with automakers moving away from aggressive all-electric strategies [9]. - Competitors, such as Volkswagen, are also adapting by changing design strategies and returning to traditional features, indicating a broader industry shift [9].

Group 1 - General Motors Company (NYSE:GM) is recognized as one of the 11 Cheap Quarterly Dividend Stocks to consider for investment [1] - The company is a global automaker that produces vehicles under various brands, including Chevrolet, GMC, Cadillac, and Buick, while also investing in electric vehicles and driver-assistance technologies [2] - GM has been actively engaging in share repurchases, trading at eight times earnings, and utilizing strong free cash flow to buy back shares, which has reduced its share count and increased earnings per share [3] Group 2 - GM has maintained a consistent dividend payment to shareholders since 2014, currently offering a quarterly dividend of $0.15 per share, resulting in a dividend yield of 1.02% as of September 23 [4]

Core Viewpoint - The future of artificial intelligence (AI) still has room for growth, but the leading sectors are shifting from CPO and PCB to the undervalued storage chip market, particularly companies closely tied to Huawei, Samsung, and SK Hynix, which may replicate significant growth stories [1] Group 1: Market Dynamics - The storage chip market has entered a "scramble for goods" phase, with Micron and SK Hynix announcing full-year HBM capacity sold out in Q1 [3] - Citigroup warns that the global storage chip market may face a comprehensive shortage by 2026 [3] - A price surge has begun, with SanDisk announcing over a 10% price increase across all storage products, and Micron planning a 20%-30% price hike on channel products [3] Group 2: HBM Market Potential - Not all storage chips are experiencing growth; HBM chips, which are highly correlated with AI, are considered "scarce assets" [3] - HBM technology, utilizing 3D stacking, enhances bandwidth by 3-5 times compared to traditional DRAM, reduces power consumption by nearly half, and decreases space usage by over 90%, making it crucial for overcoming high-end computing bottlenecks [3] - According to Guosheng Securities, the global HBM market size is projected to surge from $17 billion in 2024 to $98 billion by 2030, indicating nearly fivefold growth over five years [3] Group 3: Key Companies in HBM Sector - **Huahai Chengke**: The only domestic company achieving mass production of GMC (granular epoxy encapsulation material), which is essential for HBM packaging and has been validated by multiple clients [4] - **Saiteng Co., Ltd.**: The only A-share company producing HBM measurement equipment, having acquired Japanese Optima to master one of the three global HBM full-process detection technologies, with precision reaching 0.1 microns, supplying major storage giants like Samsung and SK Hynix [5] - **Shannon Chip Creation**: The exclusive cloud service storage agent for SK Hynix in mainland China, benefiting directly from the surge in HBM demand through exclusive agency of DDR5 and HBM high-end storage [6] - **Invisible Champion in HBM Materials**: The only domestic company achieving mass production of HBM precursors, also involved in electronic specialty gases and silicon micropowder, filling domestic gaps and forming a complete supply chain for HBM materials [7]