VIENNA, Austria – October 22, 2025 – Today, BAWAG Group released its results for the third quarter 2025. The operating performance of our business remained strong with a net profit of €219 million, earnings per share of €2.77, and a RoTCE of 27.8%. Pre-provision profits were at €354 million and the cost-income ratio at 36.1%. This resulted in a net profit of €630 million, €7.98 earnings per share and a RoTCE of 26.9% for the first nine months 2025. The CET1 ratio was at 14.1% after the deduction of the divi ...

Core Insights - The U.S. market is experiencing significant turbulence due to renewed U.S.-China trade tensions, an ongoing government shutdown, and the start of the third-quarter earnings season [1][11] - Investors are closely monitoring key reports on inflation and jobs, as well as remarks from Fed Chair Powell that may influence rate expectations [2] - Amidst these uncertainties, value investing is gaining traction, focusing on fundamentally strong companies that are undervalued [2][11] Value Investing and Earnings Yield - Earnings yield is a crucial metric for identifying attractive value opportunities, calculated as annual earnings per share (EPS) divided by the market price [4] - Stocks with higher earnings yield are considered undervalued compared to those with lower earnings yield, which are seen as overpriced [5] - A stock's yield should be compared to the 10-year Treasury yield to assess its relative value; a higher yield indicates a potentially better investment for value investors [6] Screening Criteria for Stock Selection - The primary screening criterion is an earnings yield greater than 10%, supplemented by additional parameters such as estimated EPS growth and average daily trading volume [7][8] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers in various market conditions [9] Top Stock Picks - **Allied Gold Corporation (AAUC)**: Expected EPS growth of 907% and 193% for 2025 and 2026, respectively, with a Zacks Rank 1 [12] - **Micron Technology Inc. (MU)**: Anticipated EPS growth of 100% and 12% for fiscal 2026 and 2027, respectively, also holding a Zacks Rank 1 [13] - **Fortrea Holdings Inc. (FTRE)**: Projected EPS growth of 63.6% and 64.5% for 2025 and 2026, with a Zacks Rank 1 [14] - **StoneCo Ltd. (STNE)**: Expected EPS growth of 20% and 17% for 2025 and 2026, respectively, and a Zacks Rank 1 [15] - **HF Sinclair Corporation (DINO)**: Forecasted EPS growth of 257.4% and 26.4% for 2025 and 2026, with a Zacks Rank 1 [16]

Core Insights - The article emphasizes the importance of sales growth over earnings when evaluating stocks, suggesting that steady sales growth indicates strong demand and a durable business model [2][3][10] - A selection of stocks with robust sales growth and high cash balances is recommended, including StoneCo, Garmin, Assurant, VICI Properties, and Duke Energy, all of which show promising sales growth for 2025 [10][11][12][13][14][15] Sales Growth and Cash Flow - Sales growth is preferred over earnings as it reflects actual demand and provides visibility into a company's business model [3][5] - Constant sales growth leads to predictable cash flows, allowing companies to reinvest, expand, or return capital to shareholders without excessive debt reliance [5] Stock Selection Criteria - Stocks are shortlisted based on criteria such as 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [6] - Additional metrics include a Price/Sales (P/S) Ratio lower than the industry average, positive changes in sales estimate revisions, operating margins above 5%, and Return on Equity (ROE) greater than 5% [7][8][9] Recommended Stocks - **StoneCo Ltd. (STNE)**: Expected sales growth of 9.8% for 2025, currently holds a Zacks Rank 1 [11] - **Garmin Ltd. (GRMN)**: Anticipated sales growth of 12.3% for 2025, currently holds a Zacks Rank 2 [12] - **Assurant Inc. (AIZ)**: Projected sales growth of 5.7% for 2025, currently holds a Zacks Rank 2 [13] - **VICI Properties Inc. (VICI)**: Expected sales growth of 4% for 2025, currently holds a Zacks Rank 2 [14] - **Duke Energy Corporation (DUK)**: Anticipated sales growth of 4.6% for 2025, currently holds a Zacks Rank 2 [15]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum, assigning ratings from A to F, with A indicating the highest potential for outperformance [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score evaluates stocks based on projected earnings and sales growth, emphasizing future financial health [5] - Momentum Score identifies stocks benefiting from current price trends, utilizing recent price changes and earnings estimate shifts [6] - VGM Score combines the three Style Scores to highlight stocks with the best overall characteristics in value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks, even with high Style Scores, may still face price declines [10] Company Spotlight: Bread Financial Holdings - Bread Financial, a tech-forward financial services company, is part of the S&P MidCap 400 and offers personalized payment and lending solutions [11] - Currently rated 3 (Hold) by Zacks, Bread Financial has a VGM Score of A and a Value Style Score of A, with a forward P/E ratio of 7.93 [12] - Recent upward revisions in earnings estimates indicate positive momentum, with the Zacks Consensus Estimate rising to $8.35 per share [12] - Given its solid Zacks Rank and favorable Style Scores, Bread Financial is recommended for investors' consideration [13]