Market Signal Briefing

LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) will hold a conference call on Wednesday, January 28, 2026, at 9:00 a.m. Eastern Time to discuss fourth quarter and full year 2025 results. The conference call leader will be Mark Kowlzan. Fourth quarter and full year earnings results will be released after the market closes on Tuesday, January 27, 2026. To access the conference call, you may pre-register for the conference by navigating to https://dpregister.com/s.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Toronto, Bank of Montreal (BMO - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 34.92%. The bank is currently shelling out a dividend of $1.17 per share, with a dividend yield of 3.58%. This compares to the Banks - Foreign industry's yield of 2.65% and the S&P 500's yield of 1.4%.

Looking at dividend growth, the company's current annualized dividend of $4.68 is up 2.2% from last year. Over the last 5 years, Bank of Montreal has increased its dividend 3 times on a year-over-year basis for an average annual increase of 8.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Montreal's current payout ratio is 54%, meaning it paid out 54% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BMO expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $9.74 per share, with earnings expected to increase 12.21% from the year ago period.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BMO is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Toronto, Royal Bank (RY - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 42.32%. Currently paying a dividend of $1.11 per share, the company has a dividend yield of 2.58%. In comparison, the Banks - Foreign industry's yield is 2.65%, while the S&P 500's yield is 1.4%.

Looking at dividend growth, the company's current annualized dividend of $4.42 is up 2.9% from last year. Over the last 5 years, Royal Bank has increased its dividend 5 times on a year-over-year basis for an average annual increase of 5.79%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Royal Bank's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, RY expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $11.17 per share, which represents a year-over-year growth rate of 8.45%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, RY presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).

Key Takeaways Baidu is scaling enterprise AI using ERNIE models, cloud infrastructure and industry-focused applications.Alibaba Cloud is expanding AI services with Qwen models while facing margin pressure in its cloud business.
Baidu trades at a lower forward price-to-sales ratio than Alibaba, pointing to differing valuation levels.
Baidu (BIDU - Free Report) and Alibaba (BABA - Free Report) are among China’s most established technology conglomerates, operating within the domestic tech sector. AI and cloud computing have become central areas of competition. Large Chinese technology platforms are investing heavily in AI models, cloud infrastructure and enterprise-facing software as businesses increasingly adopt data-intensive and automated solutions. Within this environment, both Baidu and Alibaba are competing across overlapping segments of AI infrastructure, foundation models and cloud-based enterprise services.

While Alibaba expanded from its e-commerce base into cloud computing, Baidu leveraged its search platform to build an AI-centric ecosystem spanning models, infrastructure and applications. This convergence has intensified competition in enterprise AI and cloud solutions, where execution and monetisation depth are increasingly important. Let us delve deep to determine which one is a better investment now.

The Case for BaiduBaidu has established a comprehensive AI cloud infrastructure that integrates computing resources, foundation models and enterprise applications, positioning the company to benefit as Chinese enterprises expand AI adoption across core operations. At the centre of this strategy is the ERNIE foundation model. ERNIE 5.0 supports multi-format understanding, content generation and instruction processing, enabling a range of enterprise solutions. These include self-evolving AI agents deployed in transportation, energy, logistics and port operations, as well as digital employee applications in sectors such as education, including AI-driven language learning tools. The Qianfan platform further strengthens Baidu’s enterprise offering by providing access to model libraries, agent development tools and scalable infrastructure, allowing businesses to build and deploy AI applications within a unified ecosystem.

The company demonstrated subscription-based AI infrastructure revenue growth of 128% year over year in the third quarter, supported by expanding adoption in embodied AI and automotive verticals. Beyond cloud services, Baidu continues to benefit from its leading position in China’s internet search market, which supports data depth and traffic scale. In parallel, the Apollo Go autonomous driving platform reached operational scale, delivering more than 3 million fully driverless rides during the quarter, reinforcing Baidu’s position in smart mobility applications.

However, the AI cloud business operates at 9% non-GAAP margins as BIDU prioritises infrastructure expansion to meet rising enterprise demand across China's tech sector. Baidu recorded asset impairments in the third quarter as it proactively upgrades infrastructure to align with evolving AI computing requirements, demonstrating a commitment to maintaining technological leadership over maximising near-term profitability. The Zacks Consensus Estimate for fourth-quarter EPS is pegged at $1.50, reflecting the investment phase as Baidu focuses on long-term positioning in China's rapidly developing AI landscape.

The Case for BABAAlibaba's strategic approach pursues multiple initiatives simultaneously, with AI infrastructure investments competing for capital alongside significant quick commerce expansion and consumer AI applications through Qwen, creating execution complexity across dispersed priorities without achieving decisive leadership in any single domain. The Qwen foundation model powers cloud services, with Qwen3-Max achieving performance in certain coding and agent benchmarks, though the company struggles to demonstrate how these capabilities translate into sustainable competitive advantages within China's technology sector.

BABA operates public cloud infrastructure supporting AI workloads for Chinese enterprises, reporting cloud revenue growth of 34% year over year in the fiscal second quarter, yet this expansion comes at the cost of profitability erosion. The Qwen consumer app surpassed 10 million downloads in its first week, representing an unproven expansion into consumer applications where competitive dynamics remain uncertain. Alibaba's positioning relies on its Taobao and Tmall e-commerce platforms providing data for AI development, though the company has failed to articulate how this data advantage produces measurable competitive differentiation.

The cloud business operates at 9% adjusted EBITDA margins that remained flat year over year despite revenue growth acceleration, revealing a structural inability to convert scale into profitability improvements within China's competitive technology sector. Alibaba faces open-ended capital expenditure commitments for AI infrastructure, with planned investments of $52 billion over three years potentially insufficient to meet enterprise demand, yet BABA appears unable to establish clear correlations between infrastructure spending and incremental revenue generation, exposing weak capital allocation discipline.

Free cash flow shifted to an outflow of $3 billion in the second quarter as scattered investments across AI infrastructure, quick commerce and consumer applications accelerated without demonstrating near-term profitability pathways. The Zacks Consensus Estimate for fiscal third-quarter EPS is pegged at $2.41, indicating 23.55% year-over-year decline, reflecting how unfocused capital allocation across competing priorities systematically erodes profitability in China's rapidly evolving AI technology sector.

Price Performance and Valuation ComparisonOver the past six months, Baidu shares have risen 45.6%, while Alibaba has appreciated 34.3%. Baidu’s stronger performance reflects improving investor confidence in its focused enterprise AI strategy and visible traction in AI cloud and adjacent platforms. Alibaba’s more muted upside suggests ongoing caution around capital intensity and execution complexity across its broader ecosystem.

BIDU Outperforms BABA Over 6-Month Period
Image Source: Zacks Investment Research

Baidu trades at a forward price-to-sales ratio of 2.17x compared to Alibaba’s 2.29x, with Baidu carrying a Value Score of C, indicating relative undervaluation, while Alibaba holds a Value Score of F, suggesting overvaluation. This valuation gap reflects the fact that Alibaba’s scale and business diversity are largely priced in at current levels, while Baidu’s more focused exposure to enterprise AI and cloud monetisation provides a modest valuation edge.

BABA Trades at a Premium Compared to BIDU
Image Source: Zacks Investment Research

ConclusionBaidu and Alibaba are investing heavily across AI and cloud, but the quality of execution differs. Baidu’s strategy remains tightly focused on enterprise AI, combining cloud infrastructure, proprietary foundation models and application-led use cases, with visible traction in subscription-based AI cloud and support from its search and autonomous driving platforms. Alibaba’s scale and ecosystem breadth are evident, yet cloud margin pressure, capital dispersion and weaker return visibility continue to weigh on its profile. Against this backdrop, Baidu holds an edge over BABA at current levels. BIDU carries a Zacks Rank #3 (Hold), while BABA carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Restaurant operators are navigating a mixed consumer spending backdrop, higher labor and input costs and the ongoing need to refresh concepts to sustain traffic. In this environment, Ark Restaurants Corp. (ARKR - Free Report) and Flanigan’s Enterprises, Inc. (BDL - Free Report) stand out as two niche players with distinct operating models. ARKR runs a portfolio of destination, high-traffic restaurants and food concepts across major tourist and urban markets, while BDL operates and franchises a long-established Florida-focused casual dining and package liquor store network.

Ark Restaurants’ model benefits from premium locations and event-driven demand, but it also carries meaningful site-specific risk. Flanigan’s continues to emphasize standardized neighborhood casual dining, loyalty-driven traffic and a diversified revenue base that includes high-volume liquor retail — a structure that can provide steadier local demand but remains exposed to Florida’s competitive labor and pricing environment. With both companies operating in the same broader restaurant-and-bars industry but pursuing very different scales, geography and risk profiles, the key question is: which stock looks more compelling right now? Let’s take a closer look.

Stock Performance & Valuation: BDL vs. ARKRBDL (down 7.2%) has outperformed ARKR (down 10.5%) over the past three months. In the past year, Flanigan’s has rallied 16.1% against Ark Restaurants loss of 43.1%.

Image Source: Zacks Investment Research

Meanwhile, BDL is trading at a trailing 12-month enterprise value-to-sales (EV/S) ratio of 0.26X, in line with its median over the past five years. ARKR’s forward sales multiple sits at 0.08X, below its last five-year median of 0.28X. BDL and ARKR both appear to be cheap when compared with the Retail-Wholesale sector average of 1.82X.

Image Source: Zacks Investment Research

Factors Driving Flanigan’s StockFlanigan’s is being supported by a business model that blends casual dining with high-volume liquor retail, giving the company multiple demand drivers and helping smooth performance across different consumer spending environments. The company operates restaurant concepts under the Flanigan’s Seafood Bar and Grill brand alongside its Big Daddy’s Liquors stores, allowing it to capture both dine-in occasions and off-premise alcohol purchases through a diversified revenue base. This dual-segment structure is reinforced by BDL’s long-standing local presence in Florida, where brand familiarity and repeat traffic play an important role in sustaining demand across its footprint.

Another key factor is Flanigan’s ownership and operating structure, which supports expansion while maintaining operational control. In addition to company-owned units, the firm operates through affiliated limited partnerships where it often serves as the sole general partner. This setup enables BDL to influence decision-making across the network while also generating recurring economics through management fees and royalties tied to the use of its brands.

Finally, the stock has been supported by steady sales momentum, with fiscal 2025 revenue growth driven by higher restaurant and package store sales. Flanigan’s benefited from menu price increases and improved performance across both operating segments, reinforcing its ability to preserve top-line growth even amid cost and pricing pressures.

Factors Driving Ark Restaurants StockArk Restaurants is being supported by a business model built around high-traffic, destination-oriented venues that benefit from strong location economics and steady demand tied to tourism, entertainment and dense urban footfall. The company operates a portfolio spanning full-service restaurants, bars and fast-food concepts across markets like New York City, Las Vegas, Atlantic City and Washington, D.C., with many units positioned in major commercial and visitor hubs. This footprint provides ARKR with a differentiated demand profile versus traditional casual dining, as sales are often driven by event activity, travel flows and premium site exposure rather than purely neighborhood traffic.

Another factor is Ark Restaurants’ long-running acquisition and concept expansion strategy, which has been central to how the company has built scale. Management has historically grown by acquiring and operating established venues and hospitality concepts, allowing the firm to diversify across formats — including restaurants, bars, fast food and catering — while leveraging its operational expertise across a broader base. This approach has enabled ARKR to maintain a varied portfolio that can capture demand across multiple dining occasions and customer segments.

A third key driver for Ark Restaurants is the high revenue concentration in a few flagship, destination venues, which makes developments tied to these assets especially influential for investor sentiment. The company highlighted that its Bryant Park Grill & Café and The Porch at Bryant Park leases expired in 2025, and these two locations accounted for a meaningful share of total fiscal 2025 revenue. As a result, the market is closely watching how management navigates the future of these high-profile sites, since any resolution — including renewals, revised terms or changes in operating status — could materially shape ARKR’s revenue mix, visibility and longer-term operating outlook.

Choose BDL Over ARKR NowWhile both Ark Restaurants and Flanigan’s Enterprises operate in the broader restaurant-and-bars space, their fundamentals reflect two very different investment profiles. Ark Restaurants’ portfolio is built around destination-driven venues in premium, high-traffic markets, supported by a mix of full-service restaurants, bars and fast-food concepts across major tourist and urban hubs. This gives ARKR exposure to event- and travel-linked demand, but also creates greater sensitivity to location-specific developments, especially when a meaningful portion of revenue is tied to a handful of marquee assets.

Flanigan’s, on the other hand, offers a more stable, Florida-focused operating model, supported by its diversified structure spanning casual dining and high-volume liquor retail. The company’s standardized neighborhood format, long-standing local brand presence and dual revenue streams provide steadier demand drivers, while its partnership-based ownership structure helps it expand while maintaining operational control and recurring economics through fees and royalties. For investors prioritizing consistency and a diversified local demand base, Flanigan’s appears to be the more compelling pick, while Ark Restaurants remains better suited for those comfortable with higher site-level concentration risk tied to key flagship venues.

Key Takeaways Innodata expanded from post-training into pre-training data, moving upstream in the AI data value chain.INOD invested about $1.3M and has signed ~$42M in contracts, with another ~$26M likely to follow.Innodata expects most pretraining revenue to ramp in 2026, making it a potentially durable growth driver.
Innodata Inc.’s (INOD - Free Report) expansion into pretraining data marks a meaningful strategic evolution, with the potential to reshape both its growth profile and competitive positioning. Historically, INOD has focused on post-training data, helping models reason, follow instructions, and perform tasks. However, management highlighted a growing body of research linking model performance directly to the quality of pretraining corpora, prompting the company to move upstream in the AI data value chain.

The early financial indicators are striking. After investing roughly $1.3 million to build pretraining capabilities, Innodata has already signed contracts representing about $42 million in potential revenue, with another $26 million likely to be finalized soon. Importantly, these programs are still in early ramp stages, with most of the revenue expected to materialize in 2026, suggesting that pretraining data could become a durable growth driver rather than a one-off boost.

Strategically, pretraining data expands INOD’s relevance with frontier model builders. By influencing how models learn language, nuance, and context at the foundational level, Innodata positions itself closer to customers’ core R&D priorities. This deepens switching costs and strengthens long-term partnerships, particularly as hyperscalers compete to differentiate next-generation large language models.

That said, execution risk remains. Pretraining workloads are complex, quality-sensitive, and resource-intensive. Sustaining margins while scaling these programs will be critical, especially as competition for high-quality data intensifies.

Overall, INOD’s move into pretraining data appears genuinely transformative. The combination of rapid payback, sizable contract potential, and strategic importance to customers suggests this initiative could meaningfully elevate Innodata’s growth trajectory into 2026 and beyond, if execution stays disciplined.

INOD’s Price Performance, Valuation & EstimatesShares of Innodata have gained 2.5% in the past six months compared with the industry’s 1.5% growth. In the same time frame, stocks like CACI International Inc (CACI - Free Report) and CGI Inc. (GIB - Free Report) were up 13.7% and down 10.5%, respectively.

Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, INOD trades at a forward price-to-earnings ratio of 43.7, much higher than the industry’s average of 17.03. On the other hand, CACI International and CGI  P/E stand at 18.31 and 14.22, respectively.

P/E (F12M)
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for INOD’s 2025 and 2026 earnings per share has increased to 89 cents (from 78 cents) and $1.20 (from $1.18), respectively, in the past 60 days. The company reported 89 cents per share in 2024.
 

Image Source: Zacks Investment Research

INOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NEW YORK, NY / ACCESS Newswire / December 29, 2025 / Global supply chains were built for efficiency, not inspection. For decades, auditability was handled through paperwork, attestations, and trust between counterparties.

Key Takeaways Insurers like RDN, CINF, AFG, and SLF ensure a steady return in 2026, supported by a strong capital position.
Dividend-paying stocks attract investors seeking income and lower volatility amid economic uncertainty.
Global premium growth is set to slow in 2026-27, pushing insurers to rely on tech investment and M&A.

The insurance market witnessed significant softening in 2025, with substantial rate cuts that have created a challenging landscape for underwriters and brokers. Despite lower pricing, underwriting discipline remains strong. The U.S. market continued to witness increasing casualty rates. The U.S. insurance market experienced slowing premium growth after past highs, continued strong demand for catastrophe coverage, increasing tech adoption (AI), as well as significant M&A activity, along with navigating economic uncertainty and potential climate impacts.

The United States Federal Reserve has cut interest rates by a quarter of a percentage point, marking the last rate cut of 2025. A majority of policymakers voted to lower the benchmark lending rate by a quarter point for the third consecutive time, to a range of 3.5% to 3.75%, the lowest in more than three years. The U.S. Federal Reserve also projected to reduce the target range of the fed funds rate an additional 50 basis points by year-end 2027, where the target range would fall from 3.50-3.75% to 3.00-3.25%.

Thus, investors always look for a safe haven that ensures a steady return. Insurers like Radian Group Inc. (RDN - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Sun Life Financial Inc. (SLF - Free Report) have been investors’ favorites, driven by their solid fundamentals that ensure consistent dividend payments. Industry players that boast an impressive dividend history have always attracted yield-seeking investors.

Price PerformanceThe insurance industry has returned 6.3% in the year-to-date period compared with the Zacks S&P 500 composite’s appreciation of 20% and the Finance sector’s growth of 18.2%.

YTD Price Performance
Image Source: Zacks Investment Research

Dividend Stocks to the RescueInvestors consider dividend-paying companies useful as the income they provide can help them meet liquidity needs, and dividend-focused investing has historically demonstrated the ability to help lower volatility. Dividends are a major factor in reducing overall portfolio risk. A stable dividend acts as a cushion during market downturns, reducing overall portfolio swings. Companies that have consistently increased their dividends tend to be more financially stable, higher-quality businesses, and are more likely to have the ability to pay dividends consistently.

While dividend stocks are primarily known for providing income, they also offer the potential for capital appreciation. Companies that consistently pay and increase dividends over time are often in strong financial health, which can lead to steady growth in their stock prices. Investors may benefit from share price growth while also receiving periodic dividend income, which together form the total return on investment.

Outlook for 2026At the December 2025 Federal Open Market Committee meeting, the Core Personal Consumption Expenditures inflation projection was lowered to 3.0 in 2025, 2.5 in 2026, and maintained at 2.1 in 2027 and 2.0 in 2028.

Swiss Re estimated global real GDP growth of 2.5% in 2026 and 2.6% in 2027. Swiss Re further estimated that global insurance premiums (both non-life and life) growth will slow to an average of 2.3% in real terms in 2026 and 2027, just below the 2.5% compound annual growth rate of the last five years.

Per Swiss Re, global non-life premiums will increase 1.7% in real terms next year and by around 2.5% in 2027.

Investment income is an important contributor to insurers’ performance. They invest a portion of their premiums. Thus, insurers are direct beneficiaries of a rising rate environment. With a lower rate of return, investment income will suffer. However, a broader invested base will limit the downside.

Insurers should continue to invest heavily in technology to improve scale and efficiencies, while M&A is likely to be on the rise as more insurers seek growth through expansion.

Key Picks for Dividend InvestingTo choose some of the best dividend stocks from the aforementioned industry, we have run the Zacks Stock Screener to identify stocks with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%, reflecting enough room for future dividend increases. These stocks also have a five-year historical dividend growth rate of more than 2% and a Zacks Rank #1 (Strong Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Let us dig deep into four such stocks.

Radian, with a market capitalization of $4.93 billion, is a niche player in the P&C markets, with a focus on specialized commercial products for businesses. RDN sports a Zacks Rank #1.

Riding on continued financial strength and flexibility, Radian declared a 4.1% increase in quarterly dividend in the first quarter of 2025. This marks the sixth consecutive year that the company has raised its quarterly dividend, which has more than doubled over the past five years. Its current dividend yield of 2.8% betters the industry average of 2.2%. The insurer’s payout ratio is 24, with a five-year dividend growth rate of 17%. (Check RDN’s dividend history here)

Radian remains focused on improving its mortgage insurance portfolio to drive long-term earnings growth. Its superior mortgage insurance portfolio is expected to create a strong foundation for future earnings. Business restructuring intensifies its focus on core business and services with higher growth potential, ensuring a predictable and recurring fee-based revenue stream. Radian Group maintains a solid balance sheet with sufficient liquidity and strong cash flows that help Radian Group to deploy capital via share repurchases and dividend hikes that enhance shareholders’ value.

Cincinnati Financial, with a market capitalization of $25.76 billion, markets property and casualty insurance. It carries a Zacks Rank #3.

Through 2024, the company had increased the annual cash dividend rate for 64 consecutive years, a record that is believed to be matched by only seven other U.S. publicly traded companies. In January 2025, the board increased the regular quarterly dividend by 7%, setting the stage for the 65th consecutive year of increasing cash dividends. Its current dividend yields 2.1%, better than the industry average of 0.2%.
The insurer’s payout ratio is 45, with a five-year dividend growth rate of 8.3%. The dividend increases reflected strong operating performance and signaled management's and the board's positive outlook and confidence in outstanding capital, liquidity and financial flexibility (Check CINF’s dividend history here)

Cincinnati Financial continues to grow through a disciplined expansion of Cincinnati Re, which is making a nice contribution to its overall earnings, better pricing, strong renewal, solid retention and exposure growth. A higher volume of written policies with a focus on earning new business through an agent-focused business model should drive long-term growth. It is building an agent network to sell its policies. This is because an agent-driven business is proving to be a more effective driver of growth and, therefore, holds promise for the long term.

American Financial Group, with a market capitalization of $11.52 billion, is a niche player in the P&C markets, with a focus on specialized commercial products for businesses. AFG carries a Zacks Rank #3 at present.

Dividend payments and share repurchases totaled $6.9 billion over the last five years. Its current dividend yields 2.5%, better than the industry average of 0.2%. The insurer also pays special dividends. The insurer’s payout ratio is 33, with a five-year dividend growth rate of 12%. (Check AFG’s dividend history here)

AFG’s robust operating profitability at the P&C segment, a stellar investment performance and effective capital management support effective shareholders’ return. It expects operations to continue to generate significant excess capital, which provides ample opportunity for additional share repurchases or special dividends over the next year.

Sun Life Financial, with a market capitalization of $34.99 billion, provides protection and wealth management products and services to individual and group customers worldwide. SLF carries a Zacks Rank #3 at present.

Over the past five years, SLF has increased its dividend 13 times. Backed by a solid capital position and operational excellence, the insurer announced a 4.7% increase in the dividend in May 2025 to reinforce the commitment to provide strong returns to shareholders. Its dividend payout ratio is targeted within the 40-50% range. The company also repurchases shares, reflecting its strong cash and capital generation in its businesses. The insurer’s payout ratio is 50, with a five-year dividend growth rate of 8.3%. (Check SLF’s dividend history here)

Sun Life Financial’s capital position remains strong, with Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio at 138% as of Sept. 30, 2025. The balance sheet and capital positions remain robust, driven by organic capital generation. Its capital and cash positions remain healthy and, along with a low leverage ratio, provide flexibility and opportunity for further capital deployment. The company remains focused on improving ROE and retention of flexibility for future growth opportunities. This reflects disciplined capital management and a sustained emphasis on capital-light businesses.

Key Takeaways MO's shipped 42.2M on! cans in Q3, with nine-month volumes up 14.8% even as other oral categories declined.Helix performance helped stabilize adjusted operating income and expand margins in the oral tobacco segment.Altria saw on! prices rise 1.5% year over year, even as average nicotine pouch prices fell nationally.
Altria Group, Inc.’s ((MO - Free Report) ) nicotine pouch business, operated through Helix Innovations, is becoming a growing driver of the company’s oral tobacco segment. As traditional oral categories decline, nicotine pouches continue to gain momentum. In the third quarter of 2025, pouches were the fastest-growing part of the segment.

Helix shipped 42.2 million cans of on! in the third quarter. For the first nine months of 2025, shipments rose 14.8% to 133.6 million cans, significantly outperforming other oral tobacco categories and highlighting Helix’s expanding role in segment profitability.

What stands out is Helix’s contribution to earnings quality, not just volume. Its year-over-year performance helped stabilize adjusted operating income and expand margins, even as total segment volumes declined. Helix also recently launched on! PLUS in select states, offering multiple flavors and nicotine strengths, adding a premium, differentiated option that could further boost growth.

Pricing trends further highlight Helix’s position. While average nicotine pouch prices fell roughly 7% nationally, on! retail prices increased about 1.5% year over year in the third quarter. At the same time, on!’s retail share of total oral tobacco was 8.7%, unchanged sequentially and down 0.1 share point year over year, reflecting recent retail performance.

Overall, Helix’s results highlight how nicotine pouches are becoming a more visible part of MO’s oral tobacco business. As traditional oral categories continue to decline, Helix’s volume performance, pricing actions, and impact on margins help shape the segment’s current operating profile.

Where PM and TPB Stand Next to AltriaPhilip Morris International Inc. ((PM - Free Report) ) showed strong momentum in its modern oral portfolio in the third quarter of 2025, with global ZYN can shipments rising about 36% and U.S. ZYN offtake growing 39%, according to Nielsen estimates. Philip Morris International noted that ZYN was fully available to the trade and supported by a wide range of commercial activities, including select short-term relaunch promotions following earlier supply constraints. Philip Morris International also emphasized continued investments in capacity and commercialization to support rising demand in the nicotine pouch segment.

Turning Point Brands, Inc. ((TPB - Free Report) ) delivered exceptionally strong modern oral growth in the third quarter of 2025, with segment net sales surging 627.6% year over year to $36.7 million, now representing 30.8% of the company’s revenues. Turning Point Brands highlighted sequential modern oral growth of 22% and raised its full-year modern oral sales outlook to $125-$130 million. Management also noted progress toward qualifying its first U.S. white-pouch production lines in 2026, underscoring Turning Point Brands’ growing presence in the nicotine pouch category.

Altria’s Price Performance, Valuation & EstimatesShares of Altria have lost 0.8% in the past month against the industry’s growth of 1.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 10.36X, down from the industry’s average of 14.47X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MO’s 2025 and 2026 earnings implies year-over-year growth of 6.3% and 2.3%, respectively.

Image Source: Zacks Investment Research

Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

All three are buys, but for different reasons.

Fears of a recession did not materialize this year. However, it's always worth it for investors to buy shares of companies that can perform well during economic downturns. Solid dividend stocks that routinely increase their payouts are especially attractive in that regard, since they tend to have businesses equipped to withstand challenging times.

Let's discuss three stocks to buy to prepare your portfolio for any recession that may lay ahead: Microsoft (MSFT 0.52%), Johnson & Johnson (JNJ +0.21%), and Coca-Cola (KO +0.40%). Two of them are Dividend Kings, corporations that have achieved at least 50 consecutive years of dividend increases. All three are solid dividend payers.

But could they rise by 100% in the next five years? Let's find out.

Image source: Getty Images.

1. Microsoft
Microsoft has moved sideways for the past six months. With a market cap of $3.5 trillion, some might argue that its high-growth days are behind it. But Microsoft still has plenty to offer growth-oriented investors and, in my view, is well-equipped to register the 14.9% compound annual growth rate (CAGR) necessary over the next five years to double in value.

The company's work in cloud computing and artificial intelligence (AI) looks especially promising. Microsoft's revenue from its cloud division, Azure, is growing rapidly, as is its contracted backlog, which is a strong indication that demand for the services Microsoft provides remains high.

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One of the company's most notable partners is OpenAI, from which it recently secured a $250 billion Azure commitment. Through 2032, Microsoft will have intellectual property rights to OpenAI's models (still among the market leaders) and products.

Being able to offer OpenAI's models to its customers through Azure is a significant selling point for Microsoft, and it is likely one of the reasons it has been gaining ground on Amazon, the leader in cloud computing. From the looks of it, this tailwind will remain intact through the next few years.

Microsoft remains a terrific growth stock, and the dividend is almost a bonus. The company has increased its payouts by 152.8% in the past decade.

2. Johnson & Johnson
Several things make Johnson & Johnson an excellent "recession-proof" stock.

First, since it sells healthcare products, including pharmaceutical drugs that remain in high demand regardless of economic conditions, it tends to generate consistent revenue and profits, even during economic downturns. Patients won't want to cut down on lifesaving drugs, and it also helps that third-party payers foot a lot of the bill.

Second, Johnson & Johnson also has a rock-solid balance sheet with a credit rating above that of the U.S. government.

Third, there is the dividend. J&J is on a streak of 63 consecutive payout increases. It is likely one of the safest dividend programs on the planet. All these factors make the healthcare leader a top pick for low-risk, dividend-seeking investors, but could it achieve the 14.9% CAGR necessary to double over the next five years? In my view, it is unlikely to do so.

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Johnson & Johnson faces several headwinds that could hinder its ability to deliver such outstanding returns. One of the most important is drug price negotiations in the U.S., with several of its medicines having already been targeted -- which will lead to lower prices for these products.

True, Johnson & Johnson also has some potential growth avenues. It is working on a promising robotic-assisted surgery (RAS) system, the Ottava, that will help it join this underpenetrated market. However, it will take some time for this to have a meaningful effect on its results. None of that means Johnson & Johnson isn't a buy, though. It just means that the stock probably won't double in five years.

3. Coca-Cola
Coca-Cola is a leading consumer staples company -- an industry that is also famously resilient. Even when the economy isn't doing well, the beverage maker attracts a decent amount of business thanks to its famous brand name (and many other smaller brands, some of which dominate their niches), and a large portfolio of products across most drink categories.

This is also an innovative company that routinely launches new products, or just repackages old ones in ways to make them more attractive in current market conditions. That includes catering to price-sensitive consumers. People can cut down on beverages during recessions more easily than they cut down on medications.

However, Coca-Cola's strategy can somewhat limit (though not eliminate) the effect of this threat. It has, after all, allowed the company to perform well over the past few decades and maintain a strong dividend program throughout. With a streak of 63 consecutive dividend increases, it is also a Dividend King.

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Coca-Cola is highly unlikely to double in the next five years. It will face stiff competition and macroeconomic headwinds (including inflation and tariffs), coupled with relatively slow volume and revenue growth, which hardly fit the profile of a high-growth stock capable of doubling in five years. These challenges won't break Coca-Cola's business, but they also limit its upside.

The stock remains a reliable and steady choice for income investors. But seekers of high growth should look elsewhere.

Key Takeaways TJX guided Q4 comparable sales growth of 2-3%, below Q3's 5% gain and last year's Q4 pace.Strong customer traffic and demand for branded deals helped TJX exceed plans in Q3 across regions.Well-positioned inventory and a solid Q4 start contrast with TJX's cautious holiday sales outlook.
The TJX Companies, Inc.’s ((TJX - Free Report) ) fourth-quarter fiscal 2026 comparable sales guidance appears cautious relative to the momentum exiting the fiscal third quarter. On its fiscal third-quarter 2026 earnings call, management guided for fourth-quarter comparable sales growth of 2% to 3%, which implies a deceleration from the 5% increase delivered in the fiscal third quarter and comes in below the 5% comparable sales growth reported in the fourth quarter of fiscal 2025.

In the third quarter, TJX delivered results that exceeded its plan, supported primarily by strong customer traffic and steady demand for branded merchandise at attractive prices. Management pointed to broad-based shopper engagement across regions and income groups, driven by frequent store visits and a consistent flow of fresh assortments. The company also entered the fourth quarter with inventory levels it described as well-positioned, supported by strong availability of branded merchandise for the holiday season.

Even with these supportive operating conditions, the fourth-quarter comparable store sales outlook reflects a conservative posture. Management indicated that the guidance reflects caution around the holiday environment and the impact of last year’s stronger fourth-quarter performance, while noting that the quarter was off to a solid start.

Overall, the fiscal fourth quarter comparable sales range reflects a measured approach to guidance-setting. The outlook incorporates recent momentum while accounting for tougher comparisons and uncertainty around holiday sales patterns, resulting in expectations that remain cautious but balanced.

TJX Peer Comparison: Q4 Comps Outlooks at BURL and DLTRBurlington Stores, Inc. ((BURL - Free Report) ) posted modest third-quarter fiscal 2025 performance, with comparable store sales increasing 1%, reflecting uneven demand patterns during the quarter. For the fourth quarter, Burlington Stores guided to comparable sales growth of 0% to 2%. This outlook reflects Burlington Stores’ measured approach to setting expectations amid a dynamic operating environment.

Dollar Tree, Inc. ((DLTR - Free Report) ) delivered solid third-quarter of fiscal 2025 momentum, with comparable store sales rising 4.2%, driven primarily by higher ticket from its expanding multi-price strategy. For the fourth quarter, Dollar Tree guided to comparable sales growth of 4% to 6%. This outlook reflects Dollar Tree’s measured approach to setting expectations for the upcoming quarter.

TJX’s Price Performance, Valuation and EstimatesShares of The TJX Companies have gained 4% in the past month compared with the industry’s growth of 0.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 31.05X, up from the industry’s average of 29.91X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for The TJX Companies’ fiscal 2026 and 2027 EPS has moved down 1 cent each to $4.66 and $5.10, respectively, over the past 30 days.

Image Source: Zacks Investment Research

TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vanguard Real Estate ETF charges lower fees and holds a much larger pool of assets than State Street SPDR Dow Jones REIT ETF Both ETFs yield 4.0% and share similar top holdings, but VNQ includes more companies outside pure real estate VNQ has experienced a slightly deeper five-year drawdown and trailed RWR on five-year total returns These 10 Stocks Could Mint the Next Wave of Millionaires ›

Newmont stock did terrific in 2025, and still looks cheap after today's sell-off.

Newmont Mining (NYSE: NEM) stock tumbled 6.9% through 10:35 a.m. ET Monday on a big reversal of the precious metals trade.

Silver hit an all-time high north of $80 an ounce overnight, but dropped dramatically this morning as traders took profits, falling as low as $70.25 per ounce. At last report, silver prices were down about 7.6% at $71.32 per ounce, and gold prices were down 4.3% at $4,354.20.

Image source: Getty Images.

What's up (or down) with silver today?
2025 has been a tremendous year for silver investors. The shiny metal started the year closer to $20 an ounce, and had more than tripled in price through last night. (Gold prices are up 65%.) For commodity metals that derive their value mostly from investors seeking to use them as hedges against inflation -- unlike stock in a business, which can actually generate value by producing goods and services over time -- those are enticing gains.

The kind of gains that may convince investors to sell and lock in profits.

That's what appears to be happening today, as there's no real reason for silver and gold prices to be falling other than investors just unloading the stuff and cashing in gains. There's no real reason for Newmont stock to be selling off, either. To the contrary, just this morning, investment banker Raymond James raised its price target on Newmont to $111, with an "outperform" rating, based on updated forecasts for Q4 gold prices.

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Is Newmont stock a sell?
All of which is to say, there's probably no need for Newmont investors to panic today. While the stock is down today, it's up 185% year-to-date -- but still costs only 16 times earnings and pays a modest 1% dividend yield.

It's not expensive, and there's no need to sell.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways CommScope focuses on high-performance fiber products like TeraSPEED, LightScope, and LazrSPEED.SYSTIMAX 2.0 portfolio supports hybrid fiber-power and efficient enterprise network deployment.Propel XFrame and Prodigy connector boost scalable, high-speed fiber management in modern data centers.
CommScope Holding Company, Inc. ((COMM - Free Report) ) has established a strong reputation in fiber-optic technology and is continuously enhancing its standards through ongoing innovation in the field. Its fiber-optic strategy includes high-performance single-mode and multimode products, such as TeraSPEED, LightScope, and LazrSPEED, delivering high bandwidth and reliable performance for modern 40G/100G networks in data centers and backbone networks.

CommScope’s SYSTIMAX 2.0 portfolio includes FiberREACH, which delivers fiber connectivity and power to edge devices, and CableGuide 360, which simplifies fiber and copper cable management in dense enterprise networks. The company is increasingly focusing on hybrid fiber-power solutions and efficient deployment tools to meet rising enterprise and edge network demand powered by IoT, AI, and distributed computing.

Its Propel XFrame product is a high-density floor-mounted fiber frame that helps modern data centers efficiently manage scalable duplex and MPO fiber connections. The company partnered with Emtelle to introduce the Prodigy hardened connector with REVOLink3 blowable fiber in North America, making Fiber To The Home (FTTH) installations faster and easier through pre-terminated drop cables.

Per a report from Grand View Research, the global fiber optics market is expected to reach about $17.95 billion by 2033, with a CAGR of 6.6%, due to growing demand for high-speed Internet, 5G, data centers, and modern digital infrastructure. The company’s innovation in fiber solutions for edge networks and data centers highlights its effort to address higher-margin opportunities.

How Are Competitors Focusing on Fiber Optics?CommScope faces competition from Corning Incorporated ((GLW - Free Report) ) and Amphenol Corporation ((APH - Free Report) ). APH makes key fiber-optic components and is expanding through acquisitions, making it an important supplier across the global fiber-optic market. It manufactures a wide range of fiber-optic connectors and pre-terminated assemblies providing high-density, high-speed applications in data centers, enterprise networks, and telecom systems worldwide. Amphenol offers active optical cables, attenuators, jumpers, and custom fiber-optic interconnect solutions to support transport networks, FTTx, and broadband deployments.

Corning is a major player in fiber-optic products and solutions, focusing on high-performance networks and optical communications infrastructure. Evolv Multifibre Products with Pushlok Technology are award-winning fiber solutions of Corning that make FTTH installation easier and improve connection reliability. Corning’s GlassBridge fiber connectors, developed with GlobalFoundries, support high-speed connections in AI data centers.

COMM’s Price Performance, Valuation and EstimatesCommScope shares have skyrocketed 247.1% over the past year compared with the industry’s growth of 129.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, CommScope trades at a forward price-to-sales ratio of 0.65, below the industry.

Image Source: Zacks Investment Research

Earnings estimates for 2025 have increased 27.9% to $1.65 over the past 60 days, while the same for 2026 have also rose 11.1% to $1.80.

Image Source: Zacks Investment Research

COMM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways DIS turned streaming profitable in FY25, posting $1.33B in annual operating income after years of losses.DIS delivered $10B operating income from Experiences, with parks demand strong & global expansion underway.Comcast approved a major cable spinoff, but faces revenue pressure and lower earnings expectations for 2026.
Disney (DIS - Free Report) and Comcast (CMCSA - Free Report) represent two powerhouses in the entertainment and media landscape, each commanding significant market presence through diverse business portfolios. Disney, the century-old entertainment pioneer, operates through its iconic theme parks, streaming services, including Disney+ and Hulu, and unparalleled content creation capabilities. Meanwhile, Comcast combines its connectivity infrastructure with NBCUniversal's content assets, the Peacock streaming platform, and Universal theme parks. Both companies stand at pivotal junctures as they navigate evolving consumer preferences, streaming profitability challenges, and shifting media consumption patterns.

The competitive dynamics between these giants have intensified in recent months. Disney achieved a landmark fourth-quarter fiscal 2025 with full-year revenues reaching $94.4 billion and streaming operations turning consistently profitable. In November 2025, Disney announced record operating income of $10 billion for its Experiences segment while projecting double-digit adjusted EPS growth for fiscal 2026. Comcast, reporting third-quarter 2025 results in October, demonstrated resilience with solid free cash flow generation of $4.9 billion despite revenue headwinds. December 2025 brought significant corporate action from Comcast, with its board approving the separation of cable networks into Versant Media Group, scheduled for completion on Jan. 2, 2026, fundamentally reshaping its business structure.

The timing for comparison couldn't be more relevant. Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for DIS StockDisney's investment thesis centers on an impressive transformation narrative, positioning the company for sustained growth across multiple revenue streams. The streaming business achieved a remarkable turnaround in fourth-quarter fiscal 2025, delivering operating income of $352 million in the quarter and $1.33 billion for the full year, successfully meeting its profitability target. Disney+ subscribers reached 132 million, adding 3.8 million in the fourth quarter alone, while combined Disney+ and Hulu subscriptions totaled 196 million. Management's guidance projects Disney+ and Hulu achieving 10% operating margins in fiscal 2026, demonstrating pricing power and operational efficiency.

The Experiences segment serves as Disney's profit engine, generating a record $10 billion in operating income for fiscal 2025, representing an 8% increase year over year. Fourth-quarter segment operating income reached $1.9 billion, up 13% from the prior year. CEO Bob Iger announced that advance bookings are up 3% for first-quarter fiscal 2026 and positive for the full year, indicating sustained demand. The company's strategic expansion received a significant boost with November 2025's landmark Disney theme park resort announcement in Abu Dhabi, UAE, in partnership with Miral. This seventh Disney resort globally taps into massive addressable markets within a four-hour flight radius of one-third of the world's population.

Disney's content momentum remains robust. The live-action Lilo & Stitch became the highest-grossing Hollywood film at global box offices in calendar 2025, generating 14.3 million views in its earliest Disney+ days for the service's largest premiere ever. Disney's cruise line expansion continues with Disney Destiny launching on Nov. 20, 2025, and Disney Adventure scheduled for March 10, 2026. Management provided confident fiscal 2026 guidance projecting double-digit Entertainment segment operating income growth, high single-digit Experiences growth, and double-digit adjusted EPS growth continuing through fiscal 2027. Disney doubled its share repurchase target to $7 billion and increased its annual dividend to $1.50 per share.

The consensus mark for fiscal 2026 earnings is pegged at $6.60 per share, indicating 11.3% year-over-year growth.

The Case for CMCSA StockComcast presents a diversified business model balancing connectivity infrastructure with content and experiences, offering steady cash generation despite near-term challenges. Third-quarter 2025 results showed adjusted EPS of $1.12, matching the prior year and beating analyst expectations, while free cash flow surged 45% to $4.9 billion. The company returned $2.8 billion to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder returns. Comcast's Content & Experiences segment delivered notable success with Epic Universe's opening on May 22, 2025, driving theme park revenue growth of 19% to $2.35 billion in the second quarter.

The Connectivity & Platforms segment, representing approximately 68% of revenues, faces structural headwinds but provides substantial cash flow supporting growth investments. Management implemented strategic pricing pivots in mid-2025, introducing five-year price guarantees and simplified packaging to stabilize the broadband customer base. Wireless emerged as a core growth driver with 378,000 line additions in second-quarter 2025, marking the business' best quarter ever, while convergence revenues grew 2.5%, supported by mid-teens wireless growth. Peacock showed meaningful progress with paid subscribers increasing 24.2% year over year to 41 million and revenues jumping 18% to $1.2 billion.

In December 2025, Comcast's board approved a transformative restructuring, separating cable networks and digital platforms into Versant Media Group, scheduled for completion on Jan. 2, 2026. The company also announced the redemption of $2.75 billion in outstanding notes, reflecting strategic financial management.

However, challenges persist. Third-quarter revenues decreased 2.7%, reflecting unfavorable Olympic comparisons, while Connectivity & Platforms lost 349,000 customer relationships. Management guided continued broadband ARPU pressure in early 2026 with no planned rate increases.

The consensus mark for 2026 earnings is pegged at $4.11 per share, indicating a decline of 1.79% year over year.

Valuation and Price Performance ComparisonBoth Disney and Comcast trade at discounted valuations relative to historical ranges, though with markedly different multiples reflecting divergent growth trajectories. Disney trades at a 16.72x forward P/E, representing a premium to Comcast's 7.22x multiple. Disney's higher multiple reflects investor confidence in its streaming profitability turnaround, superior content monetization capabilities, global theme park expansion opportunities, and proven pricing power. Disney's premium valuation appears justified, given its transformation trajectory and integrated ecosystem, creating multiple touchpoints for IP monetization.

DIS vs. CMCSA: P/E F12M Value
Image Source: Zacks Investment Research

Six-month price performance through December 2025 favors Disney despite underperforming the Zacks Consumer Discretionary sector. While shares of Disney have lost 8.4%, Comcast has plunged 16.9% in the past six-month period.

DIS Outperforms CMCSA In 6 Months
Image Source: Zacks Investment Research

ConclusionDisney emerges as the compelling investment choice with superior upside potential. Disney's successful streaming transformation from losses to $1.33 billion in annual profitability, combined with record $10 billion Experiences operating income, demonstrates execution capability. The strategic Abu Dhabi expansion positions Disney to capture growth in emerging markets, while domestic parks maintain record revenues and industry-leading pricing power. Management's confident double-digit adjusted EPS growth guidance for fiscal 2026 and 2027, coupled with doubling share repurchases to $7 billion, reflects strong financial positioning. Investors should actively track Disney stock for attractive entry opportunities to participate in its transformation story and global expansion prospects, while maintaining a watchful stance on Comcast, awaiting clearer stabilization signals following the Versant separation. DIS and CMCSA carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HomeETFs and Funds AnalysisClosed End Funds Analysis

SummaryThe ClearBridge Energy Midstream Opportunity Fund (EMO) offers a 9.74% yield by investing in large-cap midstream energy companies and MLPs.EMO has outperformed the S&P 500 over five years but now faces headwinds from declining crude oil prices and potential NAV erosion.EMO trades at an 8.5% NAV discount, in line with peers but less attractive than its historical average, making timing important for new entries.Distribution sustainability is in question as EMO's NAV has declined over the past year, raising risk of a future distribution cut. abadonian/iStock via Getty Images

The ClearBridge Energy Midstream Opportunity Fund (EMO) is a closed-end fund that provides its investors with exposure to the high-yielding and growing American midstream energy sector. This allows investors to collect a very attractive yield from the assets in their

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KYN, MPLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article was originally published to Energy Profits in Dividends on December 28, 2025. Subscribers to the service have had since that time to act on it.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Brinker International saw strong Q1 FY26 results as Chili's traffic and same-store sales rose sharply.EAT expanded restaurant margins on sales leverage, even as food and commodity inflation persisted.Higher costs, inflation pressure and weaker Maggiano's sales continue to weigh on results.
Brinker International (EAT - Free Report) continues to benefit from strong performance at Chili’s, driven by higher traffic, effective marketing and brand-building initiatives, and ongoing improvements in food quality and in-restaurant experience. Ongoing remodeling efforts are supporting guest engagement, while continued menu enhancements reinforce the brand’s long-term relevance. Management remains focused on balancing value-oriented offerings with margin expansion and adapting to evolving consumer preferences to support sustainable long-term growth.

Shares of this casual dining chain have gained 18.1% in the past three months, outperforming the Zacks Retail - Restaurants industry’s 1.4% rise. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, with an average being 18.7%.

Image Source: Zacks Investment Research

The fiscal 2026 earnings estimate has edged up to $11.74 per share from $11.71 over the past 30 days. While Brinker International continues to face headwinds from rising costs, persistent inflationary pressures and softer sales at the Maggiano’s segment, the stock maintains a favorable trajectory. This reflects improving operating efficiencies and margin expansion, which support expectations for solid absolute earnings growth.

Brinker International — a Zacks Rank #3 (Hold) stock — has a favorable VGM Score of A. Let’s take a closer look at the key factors supporting the stock’s performance and the challenges that may hold it back.

Factors Aiding EAT StockSales-Building & Margin-Driving Initiatives: Brinker International continues to drive sales growth through a disciplined focus on its core fundamentals of food, service and atmosphere. The company is strengthening its value proposition through consistent, price-pointed offerings, menu upgrades, and strategic marketing and brand-building initiatives that are driving sustained traffic gains. Although margin expansion may moderate amid commodity inflation and targeted investments, management remains focused on maintaining profitability through sales leverage, disciplined cost controls and strategic initiatives that support long-term shareholder value creation.

In the first quarter of fiscal 2026, Brinker International reported total revenues of $1.35 billion, reflecting an 18.5% year-over-year increase, driven largely by sustained strength at Chili’s. The brand posted same-store sales growth of 21.4%, supported by a 13.1% increase in traffic, marking EAT’s 18th consecutive quarter of positive comparable sales growth. Operational discipline and strong sales leverage translated into solid profitability gains, with restaurant operating margin expanding 270 basis points year over year to 16.2% despite modest headwinds from food and commodity cost inflation.

Remodeling & Expansion Initiatives: Brinker International is pursuing a disciplined approach to remodeling and expansion focused on strengthening brand identity and supporting long-term growth. At Chili’s, the first four remodel pilot restaurants are expected to be completed by the end of the current quarter. The program, inspired by the original Greenville Avenue prototype, is designed to restore the brand’s distinctive personality while modernizing the guest experience. In parallel, management is rebuilding its development pipeline and positioning the company for a return to positive net new unit growth, with expansion efforts expected to scale beginning in fiscal 2027.

Focus on Menu Innovation: Brinker International is driving traffic and brand relevance through targeted menu innovation focused on core offerings rather than short-term promotions. The ribs upgrade has been a standout, with sales up 35% and profitability improving 29%, supported by higher food quality scores and positive guest feedback. Beverage innovation is also contributing, as the frozen Patrón Margaritas platform is generating twice the unit sales of the prior offering despite a higher price point. New items supported sales growth and food-grade improvements, while the original Skillet Queso is being reintroduced alongside the new version to meet demand from loyal guests. Looking ahead, a chicken sandwich platform refresh is planned for the back half of fiscal 2026.

Factors Hindering Growth of EAT StockHigh Costs & Expenses: Elevated costs continue to weigh on the company’s performance. In the first fiscal quarter, total operating costs and expenses rose to $1.23 billion, up from $1.08 billion in the same period last year. Advertising expense totaled 2.5% of sales, declining 10 basis points year over year due to leverage. However, management expects advertising spending to increase meaningfully in the second quarter to support traffic-driving initiatives. While the increased marketing investment has proven effective, a sustained reliance on advertising could pressure margins if top-line growth begins to moderate.

Inflationary Pressures: Commodity inflation, particularly in food and beverages, negatively impacted margins by 60 basis points. Management now expects commodity inflation, inclusive of tariffs, to run in the mid-single-digit range for fiscal 2026, up from prior expectations.

Key PicksSome better-ranked stocks from the Zacks Retail-Wholesale sector are:

El Pollo Loco Holdings, Inc. (LOCO - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 19.6%, on average. LOCO stock has lost 1.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LOCO’s 2026 sales and earnings per share (EPS) indicates growth of 1.3% and 4.2%, respectively, from the year-ago period’s levels.

Dillard's (DDS - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 50.8% in the past six months.

The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales indicates growth of 1.3%, while EPS indicates a decline of 9.4% from the year-ago period’s levels.

Expedia Group, Inc. (EXPE - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has surged 70.5% in the past six months.

The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.3% and 20.9%, respectively, from the prior-year levels.

Key Takeaways NKE shifts to sport-led, athlete-driven innovation to reset momentum after uneven demand.The Sport Offense boosts North America's sell-through as Running and Basketball lead growth.NKE faces a longer reset in Greater China, with EMEA and APLA earlier in adopting the Sport Offense model.
After a period marked by uneven demand, channel imbalances and pressure on its core franchises, NIKE Inc. (NKE - Free Report) is turning to “Sport Offense” as the central lever to reset momentum. The strategy represents a deliberate shift back to sport-led, athlete-driven innovation, organizing the business around key sports, cities and athletes rather than broad lifestyle narratives. By anchoring product creation, storytelling and marketplace execution more tightly to sport moments, the company aims to rebuild brand heat, restore premium positioning and create a more consistent pipeline of newness across footwear, apparel and equipment.

Early signals suggest the approach is gaining traction, particularly in North America, where performance categories like Running and Basketball are leading growth. The Sport Offense emphasizes faster innovation cycles, clearer segmentation by sport and price point, and tighter collaboration with wholesale partners to elevate in-store and digital experiences. This has helped NIKE improve sell-through, reduce excessive promotions and rebalance its portfolio away from overextended classic franchises. Importantly, the model is designed to scale, allowing successful concepts in one market or sport to be replicated across geographies and channels with greater speed and relevance.

That said, execution risks remain, especially in international markets. Greater China, in particular, faces a longer reset as NIKE works to reassert its premium, innovation-led identity in a highly competitive and digital-first environment. EMEA and APLA are also at earlier stages of adopting the Sport Offense framework, meaning results will likely be uneven in the near term. Still, if NIKE can consistently translate sport-driven innovation into localized, compelling consumer experiences, the Sport Offense has the potential to reaccelerate growth, strengthen brand equity and lay the foundation for more sustainable, profitable expansion across key global markets.

NKE’s Competition in the Global Arenaadidas AG (ADDYY - Free Report) and lululemon athletica inc. (LULU - Free Report) are the key companies competing with NIKE in the global market.

adidas is sharpening its focus on performance-led categories as it works to reaccelerate growth and rebuild brand momentum across key markets. The company is leaning more heavily into core sports such as football, running and training, using athlete partnerships and major global sporting events to reignite product relevance and consumer excitement. By streamlining its product portfolio, reducing discount dependency and tightening control over distribution, adidas aims to restore a premium brand posture while improving sell-through and margins.

lululemon continues to build on its performance DNA by anchoring growth in technical innovation, community-led engagement and category expansion beyond yoga. The brand’s focus on high-performance fabrics, fit and functionality supports strong pricing power and loyalty, while initiatives in running, training and men’s wear broaden its addressable market. At the same time, lululemon is carefully scaling internationally and enhancing its digital and experiential ecosystem to deepen consumer connections.

NKE’s Price Performance, Valuation & EstimatesShares of NIKE have lost 12.6% in the past three months compared with the industry’s decline of 11.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, NKE trades at a forward 12-month price-to-earnings ratio of 29.31X compared with the industry’s average of 26.36X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year decline of 27.3%, while that for fiscal 2027 indicates growth of 55.5%.

Image Source: Zacks Investment Research

NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Top altcoins have taken a big hit lately as market sentiment has soured. Solana (SOL), XRP, and Sui (SUI) have booked year-to-date (YTD) losses of 35%, 11%, and 64.5% during this period, reflecting the strength of this wave of bearish momentum.

Bitcoin's sharp price swings spark manipulation claims, but traders see opportunity. Zooming out reveals how BTC volatility really works.

The Canton Network price is up almost 42% in seven days and about 12% in 24 hours. Chatter around XRPL (XRP Ledger) comparisons and outperformance has boosted interest, but the Canton price rally now meets possible resistance.

A pullback might not be a negative event. It could form the consolidating leg of a larger structure on the chart and set up the next phase. The question now is whether this move becomes a reset for the rally or the start of something bigger.

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Cup Formation Faces A Pullback, But One Signal Limits DownsideCanton Network (CC) might be forming a cup-and-handle pattern on the daily chart. The cup looks complete from the November 12 high to the December 28 high. A handle could now start to form. That handle would be the pullback, and it is happening while the price trades near $0.128 after failing to clear $0.137.

RSI (Relative Strength Index), the momentum indicator, has flashed a standard bearish divergence. The Canton price made a higher high between November 12 and December 28, while RSI made a lower high.

Canton Flashes A Bullish Pattern: TradingViewWant more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Divergence often signals trend reversal or pullback. In Canton’s case, it leans more toward a pullback because capital flow remains supportive.

Chaikin Money Flow (CMF), which tracks capital strength using price and volume together, stays above the zero line near 0.24. During the last major rally from December 6 to December 21, CMF fell under zero on December 13, and that break killed momentum. That is not happening now.

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Capital Flow Steady: TradingViewAs long as CMF stays above zero, the CC price downside can stay limited during the handle formation. A move above 0.40 on CMF would show capital aligning with price and could restart the uptrend.

Social chatter peaked on December 28 at about 2.2%, then dropped to roughly 0.16%. Lower chatter does not always equal weakness. Here, it supports the pullback idea, especially after a 42% move in one week.

Less attention also means fewer reaction traders. That often helps cup-and-handle structures form cleanly.

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Social Chatter Getting Weaker: SantimentRipple comparisons and positives helped drive Canton to its recent local high.

Is Canton Bigger Than Ripple?

YES – in institutional settlement, by massive margins:

✅ 112x more daily settlement value ($280B vs $2.5B)
✅ 595x larger represented asset base ($391B vs $657M)
✅ 6.6x more cumulative volume processed ($6T+ vs $912B YTD)
✅ 2x more institutional… pic.twitter.com/xfUnmCgMt7

— ElonTrades (@ElonTrades) December 28, 2025
It now seems that attention is fading. Therefore, consolidation becomes more likely. A move above the chatter peak in dominance would be an early sign of momentum returning.

Sponsored

Key Canton Price Levels To WatchCanton Coin (CC) trades near $0.128. The breakout zone begins at $0.137. A daily close above that level is the first real step. A close above $0.144 confirms a neckline breakout. The first Canton price target is $0.214, which is the post-launch peak.

If momentum accelerates, the next target is near $0.34, which is the 141% projection of the cup height from the lowest base to the neckline, then upward from the breakout point. That is the aggressive target if capital flows and prices align.

Canton Price Analysis: TradingViewIf the pullback deepens, $0.118 is the first Canton price support to watch. Below $0.096, the handle fails, and the cup loses structure. The extended downside could reach $0.074 or even $0.058 if liquidity evaporates. For now, as long as CMF stays above zero, the CC price consolidation between $0.118 and $0.096 can remain a handle, not a reversal.

Right now, the Canton price is between two realities: a healthy pullback inside a bullish structure or an early breakdown. The next move depends on $0.137 on the upside and $0.118 on the downside.

16h05 ▪
3
min read ▪ by
Ariela R.

Summarize this article with:

Many crypto analysts agree on one point: bitcoin must achieve a 6.24% increase to avoid an annual close in the red. Currently trading around $87,000 to $90,000, the end of the year looks tense for the flagship crypto.

In brief

Bitcoin must climb 6.24% to avoid a historic post-halving red annual close.
The break of its moving average and macro uncertainty hinder any significant rebound before 2026.

Bitcoin faces a critical threshold for 2025
The symbolic threshold of $93,374 divides analysts. According to some, a 6.24% increase in bitcoin would be enough to paint the annual candle green. However, the crypto market remains unstable after an ATH above $125,000 in October, followed by a 30% drop in November.

Bitcoin even touched a low of $80,000 according to charts, thus breaking its major technical support: the 365-day moving average. This structural break, never seen so clearly since 2023, feeds the fear of a lasting reversal.

According to analyst Nic Puckrin, bitcoin has three days to avoid a red close. If it fails, it could break a post-halving performance cycle that has remained intact for over a decade. Enough to increase fear among BTC hodlers.

Macroeconomics: The Fed slows bitcoin’s momentum
The Fed rate cut plays a role in the partial BTC rebound in 2025. We refer to three successive 25 basis point cuts that temporarily revived risk appetite.

The intervention of Jerome Powell in December unfortunately cast doubt. Result: only 18.8% of crypto investors anticipate another interest rate cut in January.

This uncertainty weighs on bitcoin’s momentum. The absence of inflows could indeed prevent any short-term bitcoin increase. The correlation with monetary policies therefore remains strong.

Except for an express rebound, bitcoin could thus end the year below its historical standards. The market wonders: a simple bullish pause or the start of a new bearish cycle? The answer may come as early as January.

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Ariela R.

My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

Key NotesOn December 29, Michael Saylor announced the acquisition of an additional 1,229 Bitcoin units.Peter Schiff does not think that the company has enough capital to sustain this acquisition.Currently, Strategy holds a total of 672,497 BTC.
Strategy Inc. has made a fresh Bitcoin

BTC
$87 647

24h volatility:
0.3%

Market cap:
$1.74 T

Vol. 24h:
$48.68 B

purchase, even though Peter Schiff didn’t think that the business intelligence and software firm had enough capital to complete the purchase.

The conversation all started after Michael Saylor, the Executive Chairman of the Bitcoin treasury firm, made another “orange dots” post on X.

Back to Orange. pic.twitter.com/J3lnpOObER

— Michael Saylor (@saylor) December 28, 2025

Strategy Boasts of 672,497 BTC in Holding
On December 29, the pro-Bitcoin firm Strategy acquired 1,229 BTC at an average price of $88,568 per coin.

According to Michael Saylor, the purchase amounted to $108.8 million. The firm has successfully achieved BTC yield of 23.2% year-to-date (YTD).

Strategy has acquired 1,229 BTC for ~$108.8 million at ~$88,568 per bitcoin and has achieved BTC Yield of 23.2% YTD 2025. As of 12/28/2025, we hodl 672,497 $BTC acquired for ~$50.44 billion at ~$74,997 per bitcoin. $MSTR $STRC $STRK $STRF $STRD $STRE https://t.co/5VvOgBYwhk

— Michael Saylor (@saylor) December 29, 2025

As a result of this latest buy, Strategy currently holds 672,497 BTC, which were acquired for roughly $50.44 billion at $74,997 per Bitcoin.

Meanwhile, this move comes amid the company’s effort to oppose MSCI’s proposal to remove digital asset treasury companies from global indexes. Strategy has called the 50% threshold arbitrary and discriminatory.

The proposal has its focus on companies like Strategy, which has more than 660,000 Bitcoin, with a total value exceeding $60 billion.

The MSCI’s consultation is scheduled to conclude by Jan. 15, 2026, but for now, it is seeking feedback on whether DATs should remain eligible for its indices.

Peter Schiff Challenges Strategy’s Fresh BTC Acquisition
Over time, Saylor has developed a pattern of posting an “orange dot” in the days leading up to a new Bitcoin purchase.

For his followers on X, it has become a familiar signal of an upcoming BTC acquisition. When he posted it again on December 28, expectations were no different.

In response to the post, anti-Bitcoin economist Peter Schiff challenged the signal, requesting to know how the firm intends to fund the purchase.

Where will you get the money to buy more Bitcoin? Will you raid your Treasury reserve you just sold shares to create? Or will you sell stock at as discount to NAV and create a negative Bitcoin yield?

— Peter Schiff (@PeterSchiff) December 28, 2025

Strategy’s MSTR stock is now trading near its Bitcoin Net Asset Value (mNAV). Also, the Bitcoin treasury company recently established a big cash buffer from equity issuance.

Generally, it appears that many market watchers expected Strategy to stock up on the $1.44 billion US dollar reserve.

Several entities are still wondering if this new capital base will also be redirected towards Bitcoin accumulation.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Cryptocurrency News, News

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

Godfrey Benjamin on X

Two well-known crypto analysts say BTC is still in a bear market, and brief rallies are likely before further drops and a delayed bottom.

Bitcoin (BTC) has struggled to move past its October weakness, even after being one of the best-performing assets during the first nine months of 2025. The cryptocurrency briefly climbed above $90,000 on Monday as traders bet on a New Year rebound. However, the uptick did not last long, as BTC fell back to around $87,000.

Analysts are warning investors that such short-term gains could be liquidity traps, followed by renewed selling pressure.

Short-Term Bounce, Long-Term Pain
Bitcoin is currently over 30% down from its all-time high of $126,000 in October. Crypto analyst Mr Wall Street described the asset as being in a bear market, and said that market makers are likely to continue pushing prices lower over the medium term. However, he noted that in the short term, there could be a relief bounce designed to create liquidity before another move down.

According to his view, such a bounce could then be followed by a decline toward the $64,000-$70,000 range, which he identified as the next downside target.

Additionally, Doctor Profit echoed a similar broader sentiment. In the latest tweet, the analyst explained that Bitcoin remains in a strong bear market and that a market bottom has not yet been reached. In a previous post, he warned BTC traders against expecting to “buy the crash” in the coming weeks since the downtrend could extend much longer.

He believes Bitcoin may not bottom out until September or October 2026. Based on that outlook, Doctor Profit said he sees little benefit in holding USDT, and instead prefers to keep capital working through large allocations to silver and gold. He even went on to disclose a major Bitcoin short entered between $115,000 and $125,000.

Despite his long-term bearish stance, Doctor Profit added that he holds a medium-sized BTC position in the short term, expecting a sideways phase and a potential move up toward $107,000 before another leg lower, possibly in February or March.

You may also like:

Bitcoin Price Surges to $90K: Decisive Recovery or Another Dead-Cat Bounce?

Why 2026 Could Be a Dream Year for Investors: And Where Bitcoin Fits In?

How Does Bitcoin Compare to Gold and Silver Amid Precious Metal Craze?

Bear Market Structure
Several on-chain metrics also point to a bear market structure forming. Long-term holders, for instance, are no longer consistently taking profits, as evidenced by LTH SOPR hovering around 1.0. This level is historically below strong bull markets.

Meanwhile, the Bitcoin Cycle Market Index (BCMI) has declined along with the price rather than stabilizing, which means that further downside or extended consolidation may be ahead. This indicates the market is transitioning into a bear phase, which is defined more by time and distribution than by quick price moves.

Tags:

Bitcoin has spent the last day drifting inside a tight intraday band between $87,418 and $90,307, a price range that looks calm on the surface but masks increasingly complex positioning across futures and options markets. Beneath that consolidation, derivatives data show traders actively shaping expectations for the opening weeks of 2026.