In this edition, utilities' dance with AI depends on regulators' returns; we see improving prospects in household and personal care; initiating coverage on Vipshop; and Hugo Boss, Inwit, and RingCentral.

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 that year. Stocks have recovered and a new bull market has started, but gains have been largely driven by only a handful of high-tech companies. Inflation remains an issue and the Federal Reserve has yet to lower rates. Is a recession in the offing? With all the uncertainty, 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.

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 that year. Stocks have recovered and a new bull market has started, but gains have been largely driven by only a handful of high-tech companies. Inflation remains an issue and the Federal Reserve has yet to lower rates. Is a recession in the offing? With all the uncertainty, 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.

Over the past few years, utilities in the United States have been transforming their electricity product mixes from carbon-based sources toward cleaner and greener sources. Last year, fossil fuels accounted for 60% of electricity generation, according to the U.S. Energy Information Administration (EIA). That's down from 63% in 2019. The share of renewable energy continues to grow, with wind, hydropower, and photovoltaic solar energy leading the charge. The EIA is projecting record-high energy demand in 2024 and 2025 and an increasing share for renewable energy. A major catalyst for growing energy demand is growth in data centers, and the EIA forecasts that about one-third of future global energy demand is expected to come from data centers. Renewable energy will become essential to both power data centers and help companies achieve clean-energy commitments. We have analyzed the sources of electricity generation for the Utilities sector companies in Argus coverage. Here is a list of some of the top clean-energy producers, and each of these stocks is on the Argus BUY List.

Blue-chip stocks are lower at midday on Thursday in the wake of another increase in weekly jobless claims, this time to 242,000. The 300,000 level is where we start to worry about an impending recession. On the flipside, the yield on the 10-year Treasury note is down slightly to 4.28%, which is supporting Technology stocks and the Nasdaq Composite.

Stocks were mixed on Tuesday morning as investors await results from the Federal Reserve policy meeting. On the housing front, in February, housing starts rose to a seasonally adjusted annual rate of 1.52 million. This up from the revised 1.37 million in January and above expectations of 1.43 million. Building permits issued were at a seasonally adjusted annual rate of 1.52 million, up from January's revised 1.49 million. The Dow rose 0.6%, the S&P 500 was nearly flat and the Nasdaq lost 0.3%. Crude oil traded above $83 per barrel, while gold fell $7 to $2157 per ounce.

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.

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 thus far in 2023, but gains have been largely driven by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? 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. 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.

Stocks were little changed on Friday morning following comments by New York Fed President John Williams that talk of rate cuts is 'premature.' Meanwhile, according to the Empire State Manufacturing Survey, the December manufacturing index dropped 24 points to -14.5 from +9.1 in November. On the earnings front, shares of Costco rose more than 3% after it reported above-consensus fiscal 1Q results. The Dow rose 0.1%, the S&P 500 gained 0.1% and the Nasdaq was up 0.5%. Crude oil traded near $71 per barrel, while gold rose $5 to $2050 per ounce.

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 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 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.

It's all about the Fed this week, with a rate decision coming off fresh inflation data that showed an uptick in prices for the second month in a row. As well, the automakers strike is underway and a few more earnings reports will trickle in. Last week, the Dow Jones Industrial Average ended the week higher by 0.1%, the S&P 500 lost 0.2%, and the Nasdaq shed 0.4%. Year-to-date, all the major indices are still higher, with the DJIA up 4%, the S&P 16%, and the Nasdaq 31%.

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 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.

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 thus far in 2023, but gains have been largely driven by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? 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. 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.

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 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 fell on Wednesday morning as investors awaited a House vote on the debt ceiling deal later in the day. Meanwhile, employment data pointed to a still strong labor market. In its monthly JOLTS survey, the Labor Department said that job openings rose by 358,000 to 10.1 million on the last day of April, well above the Reuters consensus forecast of 9.375 million. The Dow fell 0.8%, the S&P 0.9%, and the Nasdaq 0.7%. Crude oil traded near $69 per barrel, while gold rose $11 to $1988 per ounce.

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 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 recent commentary, we talked about one of the things missing from this potential new bull market -- namely, a lockout rally. Persistent strength is a common theme after 'the' low is in. In 1982, the 13-week rate-of-change (ROC) after the bottom was 37% and the S&P 500 (SPX) rose in 10 of those 13 weeks. Off the secondary low in early 1991, the 14W ROC was 22% with 10 of 14 weeks positive. In 1998, the 13W gain was 30% and the '500' rose in 10 of 13 weeks. After the technology meltdown, the 13W bounce off the 2003 low was 20%, with 10 of 13 weeks on the upside. After the financial crises, we witnessed a 38% rally in 2009, with the index rising in 11 of 13 weeks. Following the 2011 secondary low, the 16W rate-of-change was 22%, with advances in 13 of 16 weeks.

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.

Rapidly rising inflation 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Is it time for investors to cash in their chips? 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 fixed-income returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.5% 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.

Stocks rose on Friday morning, paring early losses after new data showed further signs of moderating inflation. The Commerce Department reported that its personal consumption expenditures price index rose 5.5% from the prior year in November, slowing from 6.1% growth in October and in line with the consensus estimate. The core PCE, excluding food and energy costs, rose 4.7% on a year-over-year basis, down from a prior reading of 5.0%. The Dow rose 0.4%, the S&P 0.5%, and the Nasdaq 0.3%. Crude oil rose more than 3% to $80 per barrel, while gold rose $11 to $1806 per ounce.

In a report this morning, the Commerce Department announced that third-quarter 2022 GDP advanced at a 2.9% rate -- up by three tenths of a percent from the advance estimate that was announced last month. As we typically do for the second estimate, let's take a closer look at the key contributing sectors to GDP. First, the Consumer. During the quarter, trends in this category were mixed, as spending on Services contributed materially to GDP growth but spending on Durable and Nondurable goods had a modestly negative impact. In the Investment category, capital expenditures on Intellectual Property Products extended a strong recent run, adding to GDP, as did capital expenditures on Equipment; meanwhile capital expenditures on Structures and Residences detracted. Exports were a bright spot. Net exports contributed to GDP for the first time in seven quarters, led by exports of both Goods and Services. Government Spending was also a contributor, as spending increased modestly on Defense, Nondefense, and at the state and local level. The third-quarter GDP report certainly indicates more signs of strength than the prior two quarters, but higher interest rates are likely to reduce demand in upcoming quarters.

The broad market selloff on September 13 still feels raw, and the Federal Reserve has left no doubt that it will fight inflation vigorously for as long as it takes. Stocks, and likely many portfolios, are feeling some pain. In volatile times like these, when selling is widespread, a classic investing strategy is to focus on “best in class” stocks. These are the strongest and most-stable stocks in each sector -- and by looking across sectors, diversification can also be achieved. To get our list this week, we ran multiple screens. We started with the Argus Min-Vol theme model portfolio. As the name suggests, that portfolio includes companies that likely can best withstand market fluctuations. We then shortlisted the group by also screening for financial strength and dividend yield. And, finally, we picked one stock from each of the 11 S&P sectors. The following stocks are our Best in Class for Safety recommendations for September 2022, and all of them currently carry an Argus BUY rating.

Stocks are lower Thursday morning, extending their recent selloff. Manufacturing kept pace in August with a reading of 52.8%. New orders expanded this month, with a reading of 51.3%, while the prices index dropped 7.5% to a reading of 52.5%. NVIDIA Corporation (NVDA) is down more than 10% after the U.S. imposed a new license in order to do business in China and Russia, forcing the company to halt shipments to China. The Dow fell 0.3%, the S&P 0.9%, and the Nasdaq 1.9%. Crude oil fell 2% to $87 per barrel, while gold fell $20 to $1706 per ounce.

In a report this morning, the Commerce Department announced that 2Q22 GDP declined at a 0.6% rate -- up by three tenths of a percent from the advance estimate announced last month. As we typically do for the second estimate, let's take a closer look at the key contributing sectors to GDP. First, the consumer. During 2Q, trends in this category were mixed, as spending on services contributed to GDP growth but spending on durable and nondurable goods had a negative impact. In the investment category, capital expenditures on intellectual property products extended a strong recent run, adding to GDP, while capital expenditures on structures, residences, and equipment detracted. Exports were a bright spot: net exports contributed to GDP for the first time in seven quarters, led by exports of both goods and services. Government spending was again uneven, as spending increased modestly on defense, but declined in nondefense and at the state and local level. Once again, the Bureau of Economic Analysis is giving us two quarters of negative GDP growth in a row. Historically, that has been a formula for recession. But with the employment situation so strong (unemployment claims were down again this morning and the jobless rate is only 3.5%), we think this time is different.

Rapidly rising inflation in 2022 has knocked the stock market into a bear market. While growth strategies have suffered the most, value strategies also have declined. Even year-to-date bond prices are lower. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Is it time for investors to cash in their chips? 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 3.0% 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.

The Commerce Department announced that 1Q22 GDP declined at a 1.5% rate, down by one tenth of a percent from the advance estimate announced last month. Let's take a closer look at the key contributing sectors to GDP. First, the Consumer. During 1Q, personal consumption expenditures grew at a 3.1% pace and contributed 61% of core demand (which we define as personal consumption expenditures, equipment and intellectual property spending, housing, exports and government expenditures). This is in line with the 10-year average, as the consumer sector, which is the most-important component of the economy, is continuing to recover. Capital investments into equipment rose 13% and accounted for a consistent 5% of total GDP, while capital investments into intellectual property rose 12% and accounted for a high 5% of total GDP, compared to the historical average of 4%. (Note: we expect this trend to continue, with investments in IP growing at a faster rate than equipment, as long as innovation drives the U.S. economy.) Exports remained under pressure (accounting of 10% of total demand compared to historical average of 11%) as did government spending (which accounted for 15% of total demand compared to historical average of 17.0%). We think this quarter's growth rate is extraordinarily skewed by trends in the export/import and government categories. The core of the U.S. economy, led by the consumer, continues to expand.

Bear Scenarios

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Marriott International, Inc. (MAR); General Dynamics Corp. (GD); Sempra Energy (SRE); Omnicom Group, Inc. (OMC) and the Focus List deletions are American Electric Power Co Inc (AEP); Vontier Corp (VNT); Twilio Inc (TWLO); Hilton Worldwide Holdings Inc (HLT).

Last week the stock market extended its losing streak to five weeks. On Friday, the Dow Jones Industrial Average fell by 230 points, or 0.69%. The S&P 500 fell 1.30%, and the Nasdaq Composite dropped 2.18%. For the week, the DJIA was down 671 points, or 1.99%, while the S&P 500 was off 2.88%, and the Nasdaq Composite declined 3.53%. Year-to-date, the Dow is down 9.43%; and the S&P 500 is off 11.79%. The Nasdaq Composite extended its relative underperformance and is now down 17.90% year-to-date.

The onset of the coronavirus in 2020 knocked stocks into a bear market. Though equities have recovered, the U.S. economy is about to slow down and COVID-19 cases are rising again as virus variants spread. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Daily prices can swing wildly, as they did in January 2022 when the S&P 500 fell 5%. 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 not sub-2.0%. 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. Here are some of the stocks featured in the portfolio.

This edition features Broadridge's potential, trends in utility companies, new coverage of Datadog, and Eastman, Atlassian, and Comcast.

The onset of the coronavirus in 2020 knocked stocks into a bear market. Though equities recovered, the U.S. economy is about to slow down and COVID-19 cases are rising again as virus variants spread. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Daily prices can swing wildly, as they did three times in 2021 when stocks dropped 4%-5% in a matter of a few days. Is it time for investors to cash in their chips? 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 not sub-2.0%. 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.

This edition features the changing winds of solar energy, the wide moats in network security, our pondering Zendesk's recent acquisition, and Fresenius, Deliveroo, and New World Development.

Stocks fell on Thursday morning after three days of gains. Weekly employment data was better than expected. The Labor Department said that first-time claims for state unemployment benefits fell to 184,000 for the week ended December 4, down from 227,000 a week earlier and below the Bloomberg consensus forecast of 220,000. The reading was the lowest since 1969. The Dow was flat, the S&P fell 0.2%, and the Nasdaq fell 0.5%. Crude oil fell 1% to $72 per barrel, while gold fell $6 to $1780 per ounce.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Host Hotels & Resorts Inc (HST); NXP Semiconductors NV (NXPI); Western Digital Corp. (WDC); IQVIA Holdings Inc (IQV); American Electric Power Co Inc (AEP) and the Focus List deletions are Weyerhaeuser Co. (WY); Dell Technologies Inc (DELL); Qorvo Inc (QRVO); Anthem Inc (ANTM).

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.