In this edition, setback shouldn't hold back inflation progress; Charter's future quarters look promising; a mixed bag for Roku; and CyberAgent, Keppel REIT, and Melexis.

The cold hard message is sinking in. Higher rates are here to stay for longer than expected. Federal Reserve Chairman Jerome Powell has said multiple times that the Fed will be 'data-driven' when deciding on monetary policy. And the data has spoken. First, let's look at inflation. There has been great progress made in knocking inflation down from its peak of 9.1% in June of 2022. But achieving progress at the current lower levels, with inflation in the low-3% range, as expected, has been difficult. The Fed has been specific, saying inflation needs to be at 2% before restrictive policy will be eased. The Fed was patient after the January inflation data, and again with February data. But when March showed persistently higher prices, the Fed threw came right out and said that change can wait. Chairman Powell said the following last week. "The recent data have clearly not given us greater confidence..." and "If higher inflation does persist, we can maintain the current level of restriction for as long as needed." Now let's consider unemployment. The Fed again has been specific. Officials are looking for a 4.1% unemployment rate to gently (hopefully) slow the economy. Currently, the rate is not budging and is vacillating between 3.8% and 3.9%. Given the current macroeconomic backdrop, the following is a list of industries and companies we like that should benefit from a sustained period of higher interest rates. All are BUY-rated at Argus.

In this edition, rental equipment companies haven't dug moats yet; homeowners are repairing remodel spending numbers; GE Vernova might power through the gap between position and performance; and Santos, Crown Castle, and Melrose Industries.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, Fair Isaac's upside fair; Initiating Coverage of GE Vernova; and US cable valuations have tumbled perhaps more than deserved; and Marvell Technology, Tilray Brands, and Yum China.

Small- and mid-cap stocks (SMID) have underperformed large-caps over the past 12 months, but may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from unrest in the Middle East, the Russian invasion of Ukraine, events related to China, or other geopolitical developments. As well, the prices of SMID stocks generally are lower than the prices of large-caps, with the P/E ratio on the Russell 2000 Small-Cap Index of 13 compared to a trailing P/E of 25 for the S&P 500. Finally, there are long stretches in the record books when SMID stocks have outperformed large-caps. From 2003-2021, for example, the Russell 2000 Index had climbed 450%, compared to an advance of 330% for the S&P 500 index. Here are the stocks with market caps below $20 billion that are on the Argus BUY list and recently were added to Argus' Mid-Cap Theme Model Portfolio.

In this edition, European interest-rate cuts on the horizon; firm opportunities among drug and biopharma firms; and reports Tesla's affordable vehicle will be canceled; and Lazard, PVH, and Genmab.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The first quarter of 2024 was rewarding for equity investors, as the S&P 500 increased 10.2%. Much of the market participated, as the S&P 500 Growth Index advanced 12.6% and the S&P 500 Value Index rose 7.4%. Leading sectors included Communication Services (+15.6%), Energy (+12.7%), Technology (+12.5%), Financials (+12%), and Industrials (+10.6%). The average stock in the Argus Universe of Coverage rose 8.0% during the year, and the median stock advanced 7.2%. The average BUY-rated stock increased 9.9%, while the average HOLD-rated stock gained 3%. Will the market's breadth hold up for the balance of 2024 or will investors revert to the so-called Magnificent 7? Will small-caps pick up their pace (the Russell 2000 was up "only" 4.8% in 1Q) or is the current bull-market rally due for a break, with some profit-taking coming into play? Given declining interest rates, we expect growth stocks to continue to lead stocks higher, while the risk of recession puts a premium on clean balance sheets, which are also more prevalent among large-caps. Investors seeking value are encouraged to focus on dividends and look for yields in the 3%-4% range. Here are the Top 10 Performers from the Argus Universe last quarter (including representatives of six of the 11 major sectors) as well as the Bottom-Five Performers.

In this edition, obesity drug's effect on dialysis may be muted; looking at the upcoming commercial real estate cycle; and taking the US economic pulse; and Amcor PLC, Sinopharm Group, and Hennes & Mauritz.

Our list this week shines a light on international stocks. We sorted our database for large-cap international stocks valued above $50 billion and with a High or Medium-High Argus rating for Financial Strength. We then sorted further, looking for stocks in the group that are furthest from their 52-week high, suggesting value. Timing matters, of course, and stocks have been on a tear lately. We ran the same list a month ago and note some shifting today. Roche Holding was on our initial list, but we have since downgraded it to a HOLD. Novo Nordisk has had tremendous attention from investors, but was not on our previous list as it was hitting new highs -- and has fallen from those highs in the past few weeks. Here is our current list of Argus large-cap BUY-rated international stocks that seem to offer value.

In this edition, mining and mining commodities; what's ahead for auto dealers; and an analyst transfer for Arkema; and JD Logistics, Papa John's, and General Mills.

We see what we believe are some great opportunities right now in Healthcare -- and we like the sector overall. Argus Director of Research Jim Kelleher, CFA, recently completed his quarterly sector review and raised Healthcare sector to Over-Weight from Market-Weight. The healthcare environment is undergoing rapid transitions, and we now see an unfolding period of significant promise and opportunity. Our newly-favored stance is based on resumption of deferred medical procedures and significant new quality-of-life drugs and treatments. The category is broad and has underperformed the S&P 500 over the past year. The Healthcare sector ETF (XLV) is up 15% over the past year compared to a gain of 31% for the S&P 500. We see opportunity here to pick up some steady companies, with big brands and solid financials. These companies are science-focused and enhance lives. They are innovators. In our list this week, we look across several subsectors within the Healthcare sector and pull out some leaders we like. These stocks also are included in our Focus List and Model Portfolios, as noted below.

In this edition, we explore Australian asset managers; PAB's revenue; and initiating coverage of RELX; and Lithium Americas, Persimmon, and Inwit.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, we explore strength of the refining market; transferring coverage of Motorola; and initiating coverage of BYD Electronic; and OrbusNeich, Jazz Pharmaceuticals, and Prudential Financial.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Management's ability to "raise guidance" can often be a catalyst for market-beating returns in the quarters ahead. The fourth-quarter earnings season has crossed the 95% mark and is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a year-over-year gain of almost 10%, according to Refinitiv. That is considerably better than the 4%-7% advance expected at the start of the earnings period. Leading the outperformance were strong gains in Communication Services earnings, up 53%. On the flipside, Energy (like last quarter) is performing the worst, down 22%. Our analysts are always on the lookout for companies that boost their outlooks during earnings season. Here is an initial list of BUY-rated companies in Argus' Fundamental Universe of Coverage at which management raised guidance or increased its outlook during the 4Q23 EPS reporting season.

In this edition, we explore if Generac's clean energy strategy holds water; light vehicle demand in China; and the near-term oil and gas supply market; and FMC, Spirit AeroSystems, and Green Thumb Industries.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for more than a decade, the performance record favored growth. Since 2010, the Russell 1000 Growth Index has climbed more than 575%, compared to an advance of almost 200% for the Russell 1000 Value Index. In 10 of the past 13 years, growth stocks have topped value stocks. That hasn't always been the case. In the 2000-2010 decade, including the Great Recession, value stocks were better performers than growth stocks, advancing an admittedly low 8% (but still better than growth, which declined 15% during the decade). Value investors trace their roots to the famous "Security Analysis" textbook, written by Ben Graham, an economics professor at Columbia University. Warren Buffett was one of his students. Why the recent deviation in performance? Several reasons, including changes in the make-up of the economy, growth in intangible assets, and the current level of interest rates. But the tide turned back in 2022, at least for a while, as the rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent years. While growth stocks have recaptured the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.0%, compared to the 0.7% current yield on the iShares Russell 1000 Growth Index ETF. For our list this week, we have screened our coverage universe for stocks that are BUY-rated by Argus Research analysts, have an Argus Financial Strength Rating of at least Medium, and have a yield of 3.0% or higher. Here's a baker's dozen that meet the criteria. These stocks are also featured in our High-Yield theme model portfolio.

In this edition, we explore the state of US auto market; margin of safety erased in US equity market rally; growing pains and growth in US equity market; and EOG Resources, Alnylam, and Pembina.

In this edition, we explore oil and gas exploration and production opportunities; Ameriprise manages to get a fair value estimate raise; we launch coverage of Kongsberg Gruppen; and Royalty Pharma, Hanesbrands, and Orsted.

Stock indices dipped in October 2023, with the S&P 500 falling a sharp 10% off summer highs. Looking at 13F filings of big institutional portfolios, we see that the big guns were busy last quarter taking advantage of that dip. Citadel Advisors went on a buying spree, adding to its $100 billion portfolio across a range of sectors. As did D.E. Shaw, adding to its $67 billion portfolio. Vickers Stock Research, a subsidiary of Argus Research Group, analyzes insider trading and institutional stock ownership. Form 13-Fs, which institutions must file to report their holdings, are due 45 days after the end of calendar quarters and have come in for 4Q24. We review 13Fs of major activists to determine core holdings and new purchases. Activist investing is now less about generating a short-term return and more about achieving long-term returns through an active management/investor partnership. Based on data from Vickers, here are some recent new purchases and key holdings of activist investors, as well as other high-profile money managers.

In this edition, we explore oil and gas exploration and production opportunities; Ameriprise manages to get a fair value estimate raise; we launch coverage of Kongsberg Gruppen; and Royalty Pharma, Hanesbrands, and Orsted.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, we say viva Veeva; the China housing market is building up to something positive; computer software has a great future; and Sensata, Sunny Optical, and Onsemi.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This weekend, in Vegas, it's the Chiefs versus the 49ers. Usher is the halftime show; Tom Brady appears in a commercial; and Taylor Swift fans add a whole new demographic to the fan base. But aside from all that, there is big money at stake. For our list this week, we present possible ways to invest in the Super Bowl.

In this edition, we think the lithium market will be reenergized; the election year means advertisers are jumping on the bandwagon; we think Johnson Controls is a margin expansion opportunity; and JD.com, Hitachi Heavy Machinery Company, and Sealed Air.

In this edition, we think utilities have good buzz; there are bargains in Asia if you shop carefully; Big Pharma is building some immunity to patent losses; and PayPal, Crown Castle, and Domino's Pizza.

With many of the elite stocks technically overbought after huge moves in late 2023 and early 2024, we've done a search for stocks that might provide some 'alpha' if the red-hot AI stocks finally take a break. We examined how much the actual return of an investment might exceed its expected return based on its risk level. We asked our Certified Market Technician Mark Arbeter to study charts for technical signals that favor individual stocks and predict their alpha. Mark reported that it is difficult to find strong technical setups at this time. Still, he looked for stocks that have been beaten down but show evidence that the worst is over. Technical characteristics for these stocks include an existing intermediate- to long-term downtrend, capitulatory volume during weakness followed by an upside reversal, bullish daily and weekly momentum divergences, and (most importantly) signs that the stock is at least attempting to trace out a bottoming pattern. Mark looks for these bottom formations in certain trading patterns. Here's a list of Argus Research BUY-rated stocks that fit Mark's technical model, signally possibly upside ahead.

In this edition, we think utilities have good buzz; there are bargains in Asia if you shop carefully; Big Pharma is building some immunity to patent losses; and Paypal, Crown Castle, and Domino's Pizza.

The Argus Research Fundamental Universe of Coverage includes approximately 500 leading U.S. and international companies. We cover the waterfront -- from Technology to Utilities from Energy to Healthcare. Generally, we follow the top 200 most widely held stocks, a list we source from our sister company Vickers Stock Research, which collects institutional ownership data from the U.S. Securities and Exchange Commission. From there, we look to identify the next 200-300 emerging U.S. and international companies to add to our list. Our Universe of Coverage is dynamic and growing. We are continually adding stocks to coverage and often get great ideas from our clients. Here are some of our most recent additions.

In this edition, Worldline pays its bills; Taiwan Semiconductor has upbeat guidance; Australian banks are undervalued; and Just Eat Takeaway, Compass Minerals, and Charles Schwab.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, we're stoked about Polaris' growth opportunities; we offer a pipeline to our take on Kinetik; EchoStar seems faint on the spectrum; and Skyworks, BOC Aviation, and .

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Here is the list of the Top Picks for 2024 from the Argus team of analysts. The team is deeply experienced, as each analyst has spent ,on average, 25 years on Wall Street and 15 years at Argus Research. As such, our analysts are extremely well-versed in our proprietary fundamental six-point system and the sectors they cover. They also have solid relationships with many of the management teams they cover. But they do not operate in a vacuum. An Investment Policy Committee (IPC) comprised of Director of Research Jim Kelleher, CFA; President John Eade; Chief Compliance Officer & Senior Financial Analyst Kevin Heal; and Director of Financial Institutions Research Steve Biggar provide macro outlooks for the economy, interest rates, earnings, and the stock market. The IPC reviews all proposed ratings changes. Our list below is organized by sector.

In this edition, M&A helps boost CNH; Tencent's share price level is too pessimistic; a look at Europe's equity market outlook; and Lamb Weston Holdings, Johnson Controls, and Ford Motor.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

In 2023, the S&P 500 climbed almost 24%, skewed heavily by a handful of tech and consumer stocks that recovered from the pandemic. The top-10 stocks in the Argus Universe advanced, on average, 180%, while the top-20 rose 140%. The average stock rose 17%, and the median stock advanced 7%. The average BUY-rated stock increased 20%, while the average HOLD-rated stock gained 8%. Will investors continue to favor growth in 2024? Will small-caps reverse their recent thrust as the risk of recession puts a premium on clean balance sheets? Investors seeking value are encouraged to focus on dividends and yields in the 3%-4% range. As for small-caps and international stocks, valuations remain depressed -- and these group looks to offer value into 2024 as market breadth likely widens. Below are the top-10 performers from the Argus Universe last year, with representatives in six of the 11 major sectors, as well as the bottom-five performers.

Many investors are getting a nice holiday present this December, as 2023 is closing out with a burst higher for stocks. The gains have been swift in the last month or so and are spread across sectors and market caps. Yet some companies have not joined in the party - and we think they may present opportunities. We used the Argus screening tool to generate a list of companies that have clean balance sheets and a proven track record for profits. We also like the management teams and strategies at these companies. For our list, we identified 11 BUY-rated large- or mega-cap companies across numerous industries that are selling at more than 25% below their 52-week highs. The list includes stocks in multiple sectors.

In this edition, luxury items should regain some luster; pessimism overblown for Bapcor; interest is shifting to rate cuts in European banking; and Orsted, Kerry Logistics, and CureVac.

Vickers Stock Research, a subsidiary of Argus Research Group, analyzes insider trading and institutional stock ownership. Form 13-Fs, which institutions must file to report their holdings, are due 45 days after the end of calendar quarters and have come in for 3Q23. We review 13Fs of major activists to determine core holdings and new purchases. Activist investing is now less about generating a short-term return and more about achieving long-term returns through an active management/investor partnership. Activists recently made progress with investments into companies such as FedEx and Union Pacific. Based on Vickers data, here are some recent new purchases and key holdings of activist investors, as well as other high-profile money managers.

In this edition, Singapore Exchange still undervalued; shares cheap for Ramsay Healthcare; multitude of issues faces multifamily construction in U.S.; and Singapore Exchange, Baxter International, and Etsy.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, oil spike optimism loses steam for now; Dexus investors poised to befit from patience; mRNA pipeline to boost Moderna; and XPO, Kinder Morgan, and Asana.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Global stocks are picking up the pace. While the S&P 500 has jumped almost 11% in the past month, the EAFA index of large- and mid-cap stocks based in countries other than the U.S. and Canada has risen 10%. Over the past six years, the performance gap has been wider, with the S&P 500 advancing 12% compared to a 7% gain for the EAFE. But the underperformance has given global stocks a valuation advantage, particularly in the area of dividends. The EAFE dividend yield of 2.4% is 80 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks now offer opportunity, particularly given the endless speculation over the direction of interest rates in the U.S., which has created market-timing headaches for equity income investors. Those investors have endured recent wide swings in prices for rate-sensitive equity sectors such as Utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection of companies that pay dividends, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus has recently boosted its global coverage, and recommends the following international dividend stocks, each of which has at least a long-term HOLD rating from an Argus analyst.

In this edition, Nasdaq, Intercontinental Exchange transformation is more than meets the eye; 3M faces critical but not existential PFAS threat; Valeo in the right parts at the right time; and PVH, Snowflake, and Maplebear (Instacart).

Black Friday. Cyber Monday. The retailers are out in force, with a massive marketing push to win dollars during this prime shopping time during the holidays. Just like retail, some stocks are seemingly at a big discount right now. Yes, we have our own Black Friday on Wall Street. But shop with care. We look for quality companies with solid books, proven track records, and strong management. This week, we used the Argus screening tool to create a list of companies that have clean balance sheets, high levels of profitability, and that we think are also undervalued and offer possible buying opportunities. We sorted the Argus stock universe for companies with a BUY rating, a market cap over $8 billion, and the highest financial strength ratings. Then we looked for those that are furthest away from their 52-week highs, and thus likely offering the deepest discounts. The resulting list is weighted towards Financial. That's not surprising based on the beating that the Financial sector took earlier this year after the collapse of Silicon Valley Bank. Here is our list of recommended Black Friday Stock Deals for November 2023.

In this edition, Goldman Sachs and Morgan Stanley should keep market share; upgrading Coloplast's economic moat; picking up Spirit Aerosystems; and Broadcom, Zoom technologies, and Nvidia.

Management's ability to "raise guidance" can often be a catalyst for market-beating returns in the quarters ahead. The third-quarter earnings season is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a 6.3% gain, year-over-year, according to Refinitiv. That is considerably better than the 1.0% expected at the start of the earnings period, and should be enough to end the "earnings recession" that investors have endured over the past three quarters. Propelling the 3Q outperformance were strong gains in Communication Services, up 46%, while Energy again (like last quarter) is performing the worst, down 33%. Our analysts are always on the lookout for companies that boost their outlooks during earnings season. Here is an initial list of BUY-rated companies in Argus Coverage at which management raised guidance or increased its outlook during the 3Q23 EPS reporting season.

In this edition, recycling's renaissance may take time; VF's fears and fortunes; changes at ChargePoint; and APM Human Services, Hanesbrands, and Infineon Technologies.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, 3M's moat narrows; cybersecurity firms shine; P&C insurers' outlooks differ; and Hanesbrands, Grab Holdings, and Evergy.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

We have an Under-Weight rating on the Energy Sector. Companies in the sector saw their earnings crushed in the last quarter and things looks bad for this quarter as well. Still, there are individual names we like and there is a trend of consolidation in the sector, all of which has piqued our interest. Exxon Mobil is buying Pioneer Natural and Chevron is buying Hess. We think this might prompt other big oil companies to look around as well. We think Conoco Phillips could be in the market to scoop up a smaller company (possibly Devon, EOG, or Marathon Oil). We don't think there will be any regulatory hurdles, as consolidation could lead oil prices to retreat, which would help the overall U.S. economy as inflation is still high in many areas. So it would seem to be in the government's interest to allow these deals to go through. Energy accounts for only about 3%-4% of total S&P 500 capitalization, but the sector often acts as a hedge to the broader market -- so having exposure to the group is important. Energy tends to zigs when the S&P 500 zags. Indeed, in 2022, the S&P 500 declined 19.4% while the Energy sector advanced 59%. In the August-October period of 2023, the S&P 500 fell more than 8% while the Energy sector declined only 3%. The following is a list of names we like overall in both Oil and Energy.

In this edition, great expectations about inflation's direction; Paramount heads up the mountain; a peek at Berkshire's peak cash balance; and Herc Holdings, Innovent Biologics, and BMW Group.

Investing in the Cloud is not for the faint of heart -- but we see upside. Alphabet lost a steep 10% in one day last week after investors expressed their disappointment over growth in its cloud business. That same day, Microsoft surged after reporting better-than-expected growth in its Azure OpenAI cloud service. The race is on, and some will win and some will lose along the way. But the potential pie is big. In the internet era, in which digital commerce complements or has supplanted physical commerce, the information technology needs of all enterprises have grown. The traditional on-premises approach has been rendered inefficient, given that a user's IT needs may fluctuate at any time. Into this void, the Cloud has arrived. In Cloud services models, an enterprise's IT needs can be matched and scaled in real time. Through the Cloud, enterprises consume only as much computing, storage, and networking bandwidth as they need. For a major event, this allows massive scaling of IT resources beyond the restraints of on-premises implementation. For periods in which operations are steady, the Cloud services model allows for a needs-only application. The leading providers of Cloud services tend to be large Technology and Communication Services companies that provide many goods and services distinct from or adjacent to their Cloud businesses. Growth has been impressive for this group. Collectively, participants in the Cloud eco-system grew revenue at a 19% compound annual growth rate from 2016 to 2022. Still, the line isn't straight up. While Cloud services grew at a 23% growth rate from 2020 to 2021, the average growth rate slowed to 15.3% for 2022. This slowdown in revenue growth reflected impediments to normal business activity from the supply-chain crisis, inflation, and rising interest rates. Even so, demand for Cloud services has held up relatively well, given that Cloud transition is a long-tailed process and that Cloud transformation has become an imperative. Here is a list of U.S.-based companies followed by Argus and that we think are in position to take advantage of this secular trend.

In this edition, WestRock's restructuring causes some ripples; Nike faces headwinds but walks on air; industrial distributors poised to benefit; and Eastman Chemical, Ubisoft, and General Mills.

Inflation, a possible recession, higher interest rates, and higher gas prices. Consumers don't want to hear it. They want to go out and eat. They were denied that experience during the pandemic and are making up for lost time with "revenge eating" and "revenge travel." In the September retail sales report that caused a fuss last week, the category of "Food Services and Drinking Places" was ranked number one for growth, up nearly 12% in the first nine months of 2023 (compared to the same period a year ago). No other category was even close. For sure, the restaurant sector has some headwinds. One is chicken prices. The price of chicken is at an all-time high, at $1.96 per pound, up 33% in August 2023 from two years ago. Of course, chicken is one of the most-popular menu items across the range of restaurants -- from fast food to casual dining to formal dining. Restaurants, as best they can, try to pass on higher prices to patrons. But at some point, patrons won't bite (pun intended.) Next to consider are obesity drugs. Some analysts worry that these now-popular drugs will curb appetites and stop consumers from snacking. Argus' restaurant analyst John Staszak, CFA, is keeping an eye on the impact of these obesity drugs. But based on their high prices and possible safety issues, John sees only a slightly negative impact for now. Argus has an Over-Weight rating on the Consumer Discretionary sector. Here are some Argus BUY-rated restaurant stocks that might well show EPS growth over the next year.

In this edition, a look at specialty contractors; renewable energy growth still outpacing expectations; digital ads and ad-tech stocks rebound; and Okta, Arm Holdings, and Regions Financial.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, analyzing new bank regulatory proposals; PFA may shake up atrial fibrillation ablation market; CEO change at Dollar General may make sense to frustrated investors; and Microsoft, Wells Fargo, and Anta Sports Products.

The country's biggest banks kick off earnings season this week. For sure, this sector has suffered this year following the failure of Silicon Valley Bank and the downward spiral that followed. The KRE (S&P Regional Bank Index) is down 29% year-to-date versus a rise of 12% for the S&P 500. We see opportunity here and have an Over-Weight rating on the sector. We believe the worst is over after the March/April bank failures and that the risk associated with these failures has been factored into share-price valuations. In the earnings reports that start flowing on Friday, we'll be focused on updates in the following areas: loan growth, where we expect growth to have slowed to low single-digits as higher interest rates weigh on consumers and businesses; loan loss provisions, where we see the gauge moving higher as net charge-offs trend toward normal; commercial real estate, where higher interest rates and new post-pandemic social, work, and shopping behaviors magnify the exposure of banks to commercial real estate, and; investment banking, where we are starting to see recovery in M&A and IPO activity. Yes, banks have challenges. Overall, we feel the banks are on solid footing and that valuations at current levels are attractive. Here's a list of our favored banks, broken down by niche.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

In this edition, trucking sector navigating demand correction, but bottom in sight; Incitec Pivot is underappreciated ; launching coverage of Rapid7; and Charles Schwab, Pandora, and Orsted.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks stumbled in 3Q, as the S&P 500 declined about 3.5% after gaining for three quarters in a row before that. The new bull market remains intact, but is wobbling from labor strife, high interest rates, and a (for now at least) deferred government shutdown. Year-to-date, the broad market index is up about 11.7%. Sector performance shifted in 3Q, as value-oriented groups such as Energy and Financial Services were leaders. The Technology sector dropped 3.0%, but remains up 34% year-to-date. The average stock in the broadly diversified Argus Fundamental Universe of Coverage declined 3.2% during the quarter, and the median stock fell 4.7%. The average BUY-rated stock dipped 2.3%, while the average HOLD-rated stock gave back 5.3%. Here are the 10-best (many from the Energy sector) and five-worst performers from the Argus Universe in 3Q23.

In this edition, renewable power adoption not so easy; interest-rate risk factor swamps bank stock valuations; Australia shoppers make priorities clear; and Nike, Agco, and Huntington Ingalls.

The growth prospects for the artificial intelligence (AI) universe are impressive, yet hard to determine. Argus has derived a model of the size and scope of the global AI industry, based on our coverage of the major publicly-traded players and most of the mid-tier players, along with our industry analysts' knowledge of private players. We estimate the global AI industry amounted to about $90-$100 billion in 2021, and expect it to grow at a 40% CAGR through 2030, when it is expected to reach $1.8 trillion in annual revenue. We expect annual growth to decelerate from the low- to mid-40% range in immediate years to the mid-30% range for years toward the end of the survey period. But determining a realistic estimate for the size of the industry is a challenge. Even for an industry that promises to redefine measuring tools, there is no measurable unit of AI output comparable to barrels of oil or tons of steel. As well, much of AI development occurs within labs and at universities, and the output is measured in tangible progress against objectives, not dollars or units of output. In the corporate world, nearly all the AI pure-play companies service micro-niches, have little measurable revenue, and are deeply unprofitable. For our list this week, we take a big picture view of three areas where AI applications are developing. In Big Tech, we believe much of the revenue and most of the profitability from AI is attributable to several giant U.S. and a few international companies that operate primarily in growth sectors such as Technology, Communication Services, and Consumer Discretionary. Next, we note that China is also a hub of AI development, with companies like Alibaba, Baidu, and Tencent (though Argus follows only Alibaba). Finally, Niche Tech has significant AI activity among companies pursuing advances in IoT, vehicle electrification, autonomous driving, automation and connectivity solutions for manufacturing, warehousing, construction, and other areas. Here are featured companies followed by Argus in those three categories.

In this edition, can regulators stop utilities' fall?; more mobile data means more towers; Hayward swimming well; and Splunk, Yum China, and Keurig Dr Pepper.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, global EV adoption rate to rise; patience will be rewarded for U.S. REIT investors; key takeaways from renewable energy conference; and Fortrea Holdings, Apple, and Bristol-Myers Squibb.

We see some possible gems right now in the Healthcare sector. Overall, we have a sector rating of Market-Weight, but this category is broad and has underperformed the S&P 500 year-to-date. The Healthcare ETF (XLV) is down 1.6% year-to-date compared to a gain of 19% for the S&P 500. We see opportunity to pick up some consistently steady companies, with big brands, and solid financials. These companies are science-focused, enhance lives, and are innovators. Some have recently raised guidance, communicating management's confidence. In our list this week, we look across several subsectors within the industry and pull out some leaders that we like.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

In this edition, Markel is no mini-Berkshire; Cigna eyes bigger slice of PBM pie; Gap's struggles; and Guidewire Software, WestRock, and Asbury Automotive Group.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. Since 2010, the Russell 1000 Growth Index has climbed more than 550%, compared to an advance of almost 300% for the Russell 1000 Value Index. In eight of the past 10 years, growth stocks have topped value stocks. That hasn't always been the case. In the 2000-2010 decade, which included two Bear Markets and the Great Recession, value stocks were better performers than growth stocks, advancing an admittedly low 8% -- but still better than growth, which declined 15% during the decade. Value investors trace their roots to the famous "Security Analysis" textbook, written in 1934 (the year Argus Research was founded) by Ben Graham, an economics professor at Columbia University. Warren Buffett was one of his students. Looking ahead, the rollout of COVID-19 vaccines has given a lift to some of the cyclical companies (Energy sector companies in particular) that have lagged in recent years, and value stocks outpaced growth stocks in the past year. Now, the Federal Reserve is lifting interest rates to fend off inflation, which likely will cap multiple expansion for growth companies. In any event, value is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.0%, compared to the 0.7% current yield on the iShares Russell 1000 Growth Index ETF. For our list this week, we screened our coverage universe for stocks that are BUY-rated by Argus Research analysts, have an Argus Financial Strength rating of at least Medium, and have a yield of 3.0% or higher. Here's a baker's dozen of stocks that meet the criteria.

In this edition, EU's energy security problem with Russian LNG; growth a challenge for railroads; a mixed outlook for refiners; and Walgreens Boots Alliance, Chewy, and UBS Group.

August has been rough for stocks. The markets are down from their highs, although the year overall has been upbeat for stocks -- especially compared to a dismal 2022. The continued stress on the economy from higher interest rates, and questions about whether the Federal Reserve is done raising them, have weighed on valuations. Most economists are not convinced that the recession question has been answered. While there are strengths in the economy -- like the labor market and consumer spending -- inflation indicators inched up last month. The uncertain environment has impacted small-caps, mid-caps, large-caps, and even mega-caps. There is a wide range in data that shows how sectors are weathering this climate, with Communication Services up nearly 40% year-to-date but Consumer Staples down 2% for the same time period. In our opinion, some solid companies with strong financials have been oversold. For our list this week, we identified 10 BUY-rated large- or mega-cap companies across numerous industries that are selling at attractive valuations (more than 20% below their 52-week highs). They are listed according to company size, with the largest first.

In this edition, Value to be found in travel sphere; UAW strike looms at least at Sellantis; citrus sours Costa's near-term outlook; and BAE Systems, Ardent Leisure Group, and Intuit.

Vickers Stock Research, a subsidiary of Argus Research Group, tracks and analyzes insider trading and institutional stock ownership trends. Institutions must file a Form 13F to report their holdings, and it is due 45 days after the end of calendar quarters. So these forms have now come in from 2Q23. We like to review the 13Fs of major activist investors, including Carl Icahn, Trian Fund Management, Jana Partners, and ValueAct Holdings, among others, in order to determine their core holdings and new purchases. Activist investing has evolved in recent years and is now less about generating a short-term return on an underpriced stock and more about achieving long-term returns through an active management/investor partnership. Activists have made progress in the past year with high-profile investments into companies such as Fedex and Union Pacific. According to Vickers, here are some recent new purchases and key holdings of activist investors, as well as other high-profile money managers such as Warren Buffet of Berkshire Hathaway and Ken Griffin of Citadel Advisors LLC.

In this edition, Charles Schwab's position gets clearer; Croda's portfolio will underpin growth; Paycor keeps clients on the payroll; and Geberit, Singapore Exchange, and Nice.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

In this edition, Duke Energy focuses on organic growth opportunities; blow to trucking sector is headache for Knight-Swift; Bread Financial faces a crunch; and Compass Minerals, Jazz Pharmaceuticals, and Target.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

The first-quarter earnings season has passed the halfway mark with 292 (or 58%) of S&P 500 companies having reported results through August 1. An impressive 81% of those companies exceeded earnings expectations, while the blended (actual and still to report) earnings decline is now projected at 5.9%, according to Refinitv. The Consumer Discretionary sector still leads with 36% earnings growth, while Energy is now by far the weakest sector, with a 48% profit decline. Our analysts are always on the lookout for companies that boost their outlooks during earnings season. Management's ability to "raise guidance" can often be a catalyst to market-beating returns in the quarters ahead. Here is an initial list of BUY-rated companies in Argus Coverage for which management has raised guidance or increased its outlook during the 2Q23 EPS reporting season.

In this edition, Westpac going in right direction; Morningstar retiring moat trend rating; Corteva on right path; and Guardant Health, Fresenius SE, and Intellia Therapeutics.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Argus Research believes that ESG investing is a smart option to consider. Companies committed to ESG values typically reflect positive traits from management which often translate into better business. ESG (Environmental, Social, Governance) investing has come a long way and continues to grow. According to the Global Sustainable Investment Association, global assets under management in ESG strategies were $40 trillion in 2020, up from $23 trillion in 2016 and on track for $50 trillion by 2025. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. In time, the list of industries to avoid increased to include soft drinks, fast food, and oil and gas, among numerous others. But performance of these initial strategies lagged. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across industries that have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights. At Argus Research, we track ESG progress at specific companies as part of our Management analysis -- one of the six points in our proprietary Six-Point System for fundamental research. In addition to reviewing and measuring the ESG proclamations from companies under coverage, we partner with an ESG research firm, JUST Capital, and leverage its analysis and insights. JUST Capital's mission is to drive measurable corporate change to create a stakeholder-centric form of capitalism that reflects the priorities of the American public. JUST utilizes a combination of data-driven research and strategic engagement in an attempt to shift norms and practices in corporate America and the financial markets. JUST ESG Custom Ratings rank stocks in the Russell 1000 on criteria using a scale of 1-100. Drawing on the JUST Capital rankings, we have compiled focused lists of companies followed by Argus Research that are in position to have a "sustainable impact" on the environment, workplace, community, and marketplace. These firms have exemplary records of delivering on the bottom line, and also in improving the environment, contributing to community relations, and showing respect for their employees. We also have a theme model portfolio based in part on ESG criteria. To build the Argus U.S. ESG Theme Model Portfolio, we apply financial concepts such as industry diversification, income generation, risk reduction, and growth at a reasonable price to our various lists. In addition, all stocks must be on the Argus BUY list. For more on JUST Capital's criteria, please visit the JUST Capital website, www.justcapital.com. For more information on the Argus companies, please see our Analyst Reports at www.argusresearch.com. Here are some of the stocks that are currently in the Argus U.S. ESG Theme Model Portfolio.

In this edition, market makes missteps around Google's search; ResMed revs up; industry landscape on consumer packaged goods; and Canfor, LPL Financial, and Boeing.

Rapidly rising inflation in 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Stocks have recovered so far in 2023, but gains have been driven largely by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise interest rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? Perhaps not yet. We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.8% level. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods. We have designed a portfolio of companies followed by Argus Research analysts that are BUY-rated and have impressive Min Vol characteristics of low beta, high yield, high market cap, strong balance sheets, and low risk profiles. Some of the stocks featured in the portfolio are listed below.

In this edition, streaming services changing their channels; BRP looks promising; China's AI is calling; and Autoliv, Sirius XM, and American Express.