Core Viewpoint - As the holiday season approaches, investors are advised to review their portfolios and consider dropping underperforming stocks before the end of the year [1] Group 1: Target Inc. - Target has struggled in 2025, consistently missing expectations despite resilient consumer spending [2] - The company reported a 2.7% decline in comparable sales for fiscal Q3 2026 and lowered its full-year EPS guidance to $7 to $8 per share [2] - Analysts have issued 11 price reductions for Target's stock following its recent conference call, indicating a lack of confidence in its recovery [2][4] Group 2: Deere and Co. - Deere has faced significant challenges due to the trade war, with an expected tariff headwind of over $1.2 billion before taxes in 2026 [5] - Despite beating revenue and EPS estimates in fiscal Q4 2025, the company provided muted guidance due to ongoing sales headwinds [5][7] - The stock has struggled to gain momentum, facing resistance at the 200-day SMA and showing signs of declining momentum [7] Group 3: Tesla Inc. - Tesla's stock is highly volatile, trading at over 300 times earnings and facing declining vehicle sales in Europe and competition in China [8] - The expiration of the EV tax credit and lower emission standards in the U.S. are additional headwinds for the company [8] - Technical indicators suggest that Tesla shares may be approaching a new resistance level, with potential downside if they fail to break through [10] Group 4: United Parcel Service Inc. - UPS is facing challenges from tariff policies and a significant drop in volume from Amazon, which was down over 21% in Q3 [11] - Despite beating earnings expectations, the company provided tepid guidance, indicating ongoing struggles [11][13] - The stock has encountered resistance at the 200-day SMA, with multiple technical signals pointing to potential downside [13] Group 5: Vistra Corp. - Vistra reported a significant earnings miss for Q3 2025, missing revenue projections by over 23% [14] - The company is facing pressure from volatile natural gas prices and currently trades at high valuation multiples [14][16] - Technical indicators show a bearish trend, with the stock dipping below the 50-day SMA and a potential plunge below the 200-day SMA looming [16]

Core Insights - CNH presented its Strategic Business Plan (SBP) at the Investor Day 2025, outlining a clear path for growth and cost efficiency [2][3] - The company aims to consolidate its position as a leading player in agriculture and construction markets while targeting significant margin improvements [4][12] Group 1: Strategic Goals - CNH aims to be the 1 or 2 player in all major markets during the plan period [4][12] - The company targets a 16-17% mid-cycle adjusted EBIT margin in Agriculture by 2030 [10][12] - For the Construction segment, CNH is targeting a 7-8% mid-cycle adjusted EBIT margin by 2030 [14] Group 2: Product Development and Technology - CNH will enhance product leadership through new launches and updates across its agricultural equipment lineup, including a full refresh of tractors and advanced combine harvesters [5][6] - The integration of Precision Tech, including AI capabilities and agronomic sensors, will be a key focus, with expectations that Precision Tech sales will nearly double as a percentage of total Agriculture Net Sales by 2030 [7][12] Group 3: Market Strategy - A new go-to-market strategy will focus on an integrated dealer network and brand strategy to improve customer engagement and service [8][9] - The company plans to invest approximately 100 basis points of annual margin over the next five years in growth-oriented dealers [9] Group 4: Operational Efficiency - CNH is committed to delivering over $550 million in operational and quality cost improvements by 2030 to support margin expansion [13][12] - The company will focus on operational efficiencies through strategic sourcing, plant efficiencies, and enhanced product reliability [13] Group 5: Shareholder Returns - CNH plans to increase through-cycle Industrial cash generation by 25% and return substantially all Industrial Free Cash Flow to shareholders through dividends and share buybacks [18][17]

Core Viewpoint - CNH's new Strategic Business Plan (SBP) aims to enhance product leadership and expand margins, targeting a 16-17% Agriculture mid-cycle adjusted EBIT margin by 2030 while consolidating its position as a leading player in major markets [2][9]. Group 1: Strategic Goals - The SBP includes a commitment to strong growth alongside cost efficiency targets, with a focus on delivering steady margin improvements [3]. - CNH aims to solidify its position as the first or second agriculture player in all major markets during the plan period [4]. - The company plans to execute over $550 million in run-rate operational and quality cost improvements by 2030 [9]. Group 2: Product Development and Technology - CNH will enhance product leadership through new launches and updates across its agricultural equipment, including tractors and harvesters [5]. - The new generation of twin and single rotor combines launched in 2024 offers a 15% lower total cost of ownership for farmers [5]. - By 2030, 90% of Precision Tech systems will be developed in-house, with sales expected to nearly double as a percentage of total Agriculture Net Sales [7]. Group 3: Market Strategy - A new go-to-market strategy will focus on an integrated dealer network and brand strategy to improve farmer engagement and customer service [8]. - The company will invest approximately 100 basis points of annual margin over the next five years in growth-oriented dealers [12]. - The strategy includes a dual-brand dealer approach to strengthen brand identities and customer segments [11]. Group 4: Financial Performance - CNH targets a 16-17% mid-cycle adjusted EBIT margin for Agriculture by 2030, driven by commercial growth, operational efficiency, and quality improvements [13][14]. - For the Construction segment, a target of 7-8% mid-cycle adjusted EBIT margin by 2030 is set, focusing on commercial actions and manufacturing improvements [15][16]. - The company plans to increase through-cycle Industrial cash generation by 25%, returning substantial Industrial Free Cash Flow to shareholders through dividends and share buybacks [19].

CNH Overview - CNH is the world's second-largest manufacturer of agricultural machinery[29] - CNH aims to return substantially all Industrial Free Cash Flow to shareholders through the cycle[37] - CNH expects to deliver another $550M+ of run-rate operational and quality cost improvements by 2030[38] Agriculture Segment - Agriculture accounts for approximately 80% of Industrial Net Sales and 90% of Industrial Adjusted EBIT[30, 34] - CNH Agriculture is targeting a mid-cycle Adjusted EBIT margin of 160%-170% by 2030[67] - CNH Agriculture is targeting 200-250 bps margin improvement through quality improvements by 2030[58] Precision Tech - CNH aims to achieve approximately 2x revenue growth in Precision Tech by 2030[21, 44] - CNH is targeting a 50-75 bps increase in CNH Agriculture Adjusted EBIT margin through favorable Precision Tech mix by 2030[45, 114, 137] Construction Segment - Construction represents approximately 20% of Industrial Net Sales[32, 35] - CNH aims to expand Construction's margins by 150-250 bps by 2030[168, 170]