oliver de la haye/iStock via Getty Images NextEra Energy (NYSE: NEE ) is one of the largest electric utility companies on the market. The company has substantially outperformed the market since our ratings upgrade , as the market has been a fan of its steady-state utility performance. Despite that, as we'll see in this article, the company is now overvalued, making it a poor investment. NextEra En...
oliver de la haye/iStock via Getty Images NextEra Energy (NYSE: NEE ) is one of the largest electric utility companies on the market. The company has substantially outperformed the market since our ratings upgrade , as the market has been a fan of its steady-state utility performance. Despite that, as we'll see in this article, the company is now overvalued, making it a poor investment. NextEra Energy Results NextEra Energy managed to achieve $3.71 in EPS up 8% YoY enabling it to go near the top-end of its benchmark. NextEra Energy Investor Presentation At the same time, the company also got approval for FPLs rate agreement, enabling the company to substantially increase potential cash flow. Energy Resources has continued to do a fantastic job with low-carbon energy and the company has continued to execute on what is an ambitious capital plan in high demand datacenter makets. NextEra Energy Investor Presentation The FPL rate agreement enables the company to invest massively, almost $100 billion over the next 6-years. An almost 11% return is allowed in this plan. However, it's worth noting that the company is investing heavily in large-load power through datacenters with 20+ GW of power interest and ~9 GW of advanced discussions. Should the datacenter boom not come to fruition, that could force the company to recoup its investment elsewhere. NextEra Energy Financial Results The company's financial results were supported by strength in the FPL division and energy production. NextEra Energy Investor Presentation The company had more than $5 billion in full-year income with EPS at more than $2.4 / share for the year. The charts above are obviously not scaled well, but that high-single digit growth is impressive in a market where expenses are continuously rising for fixed inputs. NextEra Energy Investor Presentation In the Florida economy, we have some concerns that the growth rate is starting to slow down after a massive spike during COVID-19. Customer growth and mix gr...
A data breach at government technology giant Conduent appears to affect far more people than first disclosed, with the number of victims potentially stretching to dozens of millions of people across the United States. The January 2025 ransomware attack, which knocked out Conduent’s operations for several days, is now known to affect at least 15.4 million people in Texas alone, accounting for about...
A data breach at government technology giant Conduent appears to affect far more people than first disclosed, with the number of victims potentially stretching to dozens of millions of people across the United States. The January 2025 ransomware attack, which knocked out Conduent’s operations for several days, is now known to affect at least 15.4 million people in Texas alone, accounting for about half of the state’s population. Conduent said in October that 4 million people across the state were affected. Another 10.5 million people are affected across Oregon, per the state’s attorney general. Conduent has also notified hundreds of thousands of people across Delaware, Massachusetts, New Hampshire, and other states, according to data breach notifications seen by TechCrunch. The stolen data includes individuals’ names, Social Security numbers, medical data and health insurance information. One of the largest government contractors today, Conduent handles and processes large amounts of personal and sensitive information on behalf of large corporations, government departments, and several U.S. states. The company says its technology and operational support services reach more than 100 million people in the United States across various government healthcare programs. When contacted with several questions about the data breach, Conduent spokesperson Sean Collins provided a boilerplate statement that did not address the questions, nor did they answer if Conduent knows how many individuals are affected by the cyberattack. The spokesperson would not say if the breach affects more than 100 million people. Collins said that the company has been working to “conduct a detailed analysis of the affected files to identify the personal information” taken in the breach, but would not say how many data breach notifications the company has sent out to date. Little else is known about the breach, and the company has disclosed few details. Conduent disclosed the cyberattack in April, mo...
William_Potter/iStock via Getty Images Shares of Ares Management ( ARES ) have been a poor performer over the past year, losing about 30% of their value. Shares pushed towards a 52-week low this week, given a confluence of pressures. Private credit has, of course, been an increasing concern for investors following several high-profile defaults last year. More recently, concerns about AI disruption...
William_Potter/iStock via Getty Images Shares of Ares Management ( ARES ) have been a poor performer over the past year, losing about 30% of their value. Shares pushed towards a 52-week low this week, given a confluence of pressures. Private credit has, of course, been an increasing concern for investors following several high-profile defaults last year. More recently, concerns about AI disruptions have exerted significant exposure on software stocks, and this is a sector that Ares has a long history of lending to and investing in. On Thursday, it reported Q4 earnings that did not appear to help address some of these concerns, sending shares 5% lower in early trading. With new financials and shares so beaten up, now is a good time to see if the dip is worth buying. Seeking Alpha Management fee growth offset by costs and a PE loss In the company’s fourth quarter , Ares Management earned $1.45 per share, which missed expectations by $0.24. Fee-related earnings (”FRE”) were $528 million. Ares generated $991 million of management fees, which was up 27%. Its $171 million of performance fees were up a much more modest 6%, reflecting the more challenging investment environment and a private equity loss, though they still grew. While its FRE margin was up 160bps from last year to 42.5%, this was a bit narrower than expected. In particular, the 42% jump in G&A spending to $189 million was surprisingly high, contributing to the earnings miss. It is important to emphasize that ARES investors are buying shares in the asset management company, which earns fees on investments, and not on investments themselves. Of course, over the long term, stronger investment performance likely leads to more inflows and more fee revenue, but Ares’s revenue will have less sensitivity in the short term to investment outcomes in private credit than the returns of its funds. This is especially true because only about 11% of its revenue is tied to performance fees, which are the most volatile. The v...
Image source: The Motley Fool. Feb. 5, 2026 at 8:30 a.m. ET CALL PARTICIPANTS Chief Executive Officer — Stephen G. Daly Chief Financial Officer — John F. "Jack" Kober Need a quote from a Motley Fool analyst? Email [email protected] TAKEAWAYS Revenue -- $271.6 million, reflecting 4% sequential growth and 24.5% year-over-year growth across all three end markets. -- $271.6 million, reflecting 4% sequ...
Image source: The Motley Fool. Feb. 5, 2026 at 8:30 a.m. ET CALL PARTICIPANTS Chief Executive Officer — Stephen G. Daly Chief Financial Officer — John F. "Jack" Kober Need a quote from a Motley Fool analyst? Email [email protected] TAKEAWAYS Revenue -- $271.6 million, reflecting 4% sequential growth and 24.5% year-over-year growth across all three end markets. -- $271.6 million, reflecting 4% sequential growth and 24.5% year-over-year growth across all three end markets. Adjusted Earnings Per Share -- $1.02 per diluted share, surpassing $1 for the first time in company history. -- $1.02 per diluted share, surpassing $1 for the first time in company history. Book-to-Bill Ratio -- 1.3-to-one, marking the highest ratio since Q3 2021 and driven by broad-based bookings strength. -- 1.3-to-one, marking the highest ratio since Q3 2021 and driven by broad-based bookings strength. End Market Revenue (Sequential Growth) -- Industrial and defense: $117.7 million (+2%), data center: $85.8 million (+8%), telecom: $68.1 million (+3%). -- Industrial and defense: $117.7 million (+2%), data center: $85.8 million (+8%), telecom: $68.1 million (+3%). Record Levels -- Data center and industrial and defense revenues, as well as backlog, reached all-time highs. -- Data center and industrial and defense revenues, as well as backlog, reached all-time highs. Data Center Revenue Growth Outlook -- Management increased its base case for full-year growth to 35%-40%; prior guidance was 20%. -- Management increased its base case for full-year growth to 35%-40%; prior guidance was 20%. Adjusted Gross Profit and Margin -- $156.5 million, representing 57.6% of revenue. -- $156.5 million, representing 57.6% of revenue. Adjusted Operating Expense -- $82.5 million, including $55.8 million for research and development and $26.7 million for selling, general, and administrative expense. -- $82.5 million, including $55.8 million for research and development and $26.7 million for selling, general, and admin...
GamePH/iStock via Getty Images The following segment was excerpted from the Invesco International Value Fund Q4 2025 Commentary. Performance highlights The fund's stock selection in financials, consumer staples and information technology added the most to relative performance during the quarter. Geographically, stock selection in Spain and overweights in Spain and Austria were the largest contribu...
GamePH/iStock via Getty Images The following segment was excerpted from the Invesco International Value Fund Q4 2025 Commentary. Performance highlights The fund's stock selection in financials, consumer staples and information technology added the most to relative performance during the quarter. Geographically, stock selection in Spain and overweights in Spain and Austria were the largest contributors to relative return. Stock selection in consumer discretionary, utilities and industrials were the largest detractors from relative return. Geographically, holdings in Germany and China were the largest detractors from relative return. Contributors to performance Below are the top individual contributors to absolute return for the quarter: Samsung Electronics ( SSNLF ) is a leading electronics manufacturer known for consumer electronics, semiconductors and display panels, among others. It supplies both end-user products as well as advanced components to other manufacturers. The share price benefited from increased demand for AI chips and high-bandwidth memory. Standard Chartered ( SCBFY ) , a banking group operating in over 50 markets globally, has in our view a strong core business in Asia and growth potential through emerging markets and affluent client segments. The company had strong share price performance due to continued earnings recovery and high shareholder returns in the form of dividends and share buybacks. Banco Bilbao Vizcaya Argentaria ( BBVA ) is a Spanish bank providing retail and asset management services to emerging and developed markets around the world. Its highly profitable Mexican business is in our view a clear leader in the Mexican banking sector. Robust lending and strong profit margins during the quarter supported the share price. Detractors from performance Below are individual detractors from absolute return for the quarter: Alibaba ( BABA ) is widely considered "the Amazon of China" and, in our view, has been undervalued for some time now, l...
Image source: The Motley Fool. Thursday, Feb. 5, 2026 at 9 a.m. ET CALL PARTICIPANTS President and Chief Executive Officer — Michel Khalaf Executive Vice President and Chief Financial Officer — John McCallion Regional President, U.S. — Ramy Tadros President, Asia — Lyndon Oliver TAKEAWAYS Adjusted Earnings -- $1.6 billion for the quarter, or $2.49 per share, with adjusted EPS ex notable items at $...
Image source: The Motley Fool. Thursday, Feb. 5, 2026 at 9 a.m. ET CALL PARTICIPANTS President and Chief Executive Officer — Michel Khalaf Executive Vice President and Chief Financial Officer — John McCallion Regional President, U.S. — Ramy Tadros President, Asia — Lyndon Oliver TAKEAWAYS Adjusted Earnings -- $1.6 billion for the quarter, or $2.49 per share, with adjusted EPS ex notable items at $2.58, marking a 24% increase over the prior year's quarter. -- $1.6 billion for the quarter, or $2.49 per share, with adjusted EPS ex notable items at $2.58, marking a 24% increase over the prior year's quarter. Full-Year Adjusted Earnings Ex-Notables -- $6 billion, or $8.89 per share, reflecting approximately 10% growth. -- $6 billion, or $8.89 per share, reflecting approximately 10% growth. Group Benefits Adjusted Earnings -- $465 million in the quarter, up 12%, with full-year ex-notables at $1.7 billion; group life mortality ratio for the quarter was 81.1% and for the year 83.1%, both below the company’s 2025 target range. -- $465 million in the quarter, up 12%, with full-year ex-notables at $1.7 billion; group life mortality ratio for the quarter was 81.1% and for the year 83.1%, both below the company’s 2025 target range. Retirement and Income Solutions (RIS) Adjusted Earnings -- $454 million in the quarter (up 18%), full-year at $1.7 billion; segment achieved record pension risk transfer sales exceeding $14 billion for the year. -- $454 million in the quarter (up 18%), full-year at $1.7 billion; segment achieved record pension risk transfer sales exceeding $14 billion for the year. Asia Segment -- Adjusted earnings of $444 million for the quarter, flat year over year; annual sales rose 18% on a constant currency basis, led by Japan and Korea. -- Adjusted earnings of $444 million for the quarter, flat year over year; annual sales rose 18% on a constant currency basis, led by Japan and Korea. Latin America Segment -- Quarterly adjusted earnings of $227 million, up 13%; ...
Getty Images Introduction Asset manager Artisan Partners Asset Management Inc. ( APAM ) is one of those investments I initiated in 2022 amid the interest rate hike-driven broad-based selloff in equities. In retrospect, I am very happy with my decision to build a small position in this company, although the general trend continues to favor passive investment instruments and the companies that offer...
Getty Images Introduction Asset manager Artisan Partners Asset Management Inc. ( APAM ) is one of those investments I initiated in 2022 amid the interest rate hike-driven broad-based selloff in equities. In retrospect, I am very happy with my decision to build a small position in this company, although the general trend continues to favor passive investment instruments and the companies that offer them. While APAM stock remains a small position in my portfolio (approximately 0.4% in terms of invested capital), I nonetheless review it at times to see how the company navigates an environment that continues to favor companies like BlackRock, Inc. ( BLK ), which have undoubtedly done better over the same period. My last article on Artisan was published in November 2025, when I suggested that " APAM shareholders may be in for a pleasant surprise in February when the fourth-quarter dividend and special dividend are expected to be announced " – I'll take a look at this in the article, of course. With Artisan having reported its Q4 and full-year 2025 results on Tuesday, it's a good time to take a fresh look at the company. In this update, I'll review the company's assets under management (AUM)—obviously with a focus on cash flows—but importantly also its profitability, as Artisan is known as one of the stronger companies in this industry—despite its small size and consequently less pronounced scale. Before we dive in, and to give you a feeling of Artisan's size, I've illustrated its 2025 year-end AUM in comparison to active asset management peers like T. Rowe Price Group, Inc. ( TROW ) and Franklin Resources, Inc. ( BEN ), and the behemoth in the passive investing field, BlackRock: Figure 1: Artisan Partners Asset Management Inc. (APAM): Assets under management at the end of 2025, compared to BEN, BLK, and TROW (own work, based on information from company filings) Artisan Partners 2025 Earnings: Reassuring Performance Despite Ongoing Outflows For the fourth quarter of 2025,...
Qualcomm QCOM shares opened about 11% down on Feb. 5 after the semiconductor giant issued cautious guidance for its fiscal Q2 that overshadowed its record-breaking performance in the holiday quarter. In its earnings release, the company based out of San Diego, CA, cited the global memory shortage that’s forcing smartphone manufacturers to scale back production for its muted outlook. However, it’s ...
Qualcomm QCOM shares opened about 11% down on Feb. 5 after the semiconductor giant issued cautious guidance for its fiscal Q2 that overshadowed its record-breaking performance in the holiday quarter. In its earnings release, the company based out of San Diego, CA, cited the global memory shortage that’s forcing smartphone manufacturers to scale back production for its muted outlook. However, it’s reasonable to assume that QCOM’s guidance will ultimately prove too conservative since its diversified portfolio and premium focus position it well to weather supply constraints. In fact, the post-earnings sell-off may actually be an “exciting opportunity” for long-term investors to invest in Qualcomm stock that’s now down more than 25% versus its year-to-date high. Why memory shortage may not be ‘that’ big a concern for QCOM shares QCOM stock’s post-earnings plunge may be “overdone” given the market is treating the memory shortage as a demand problem, when it’s actually a logistical delay only. On the earnings call, the company’s chief executive, Cristiano Amon, agreed that consumer demand for high-end phones remains robust. The “weakness” is simply OEMs being unable to finish building phones they have already planned. This is “deferred” revenue – not lost sales. Additionally, the shortage hits low-end, low-margin budget phones the hardest because they can’t absorb the DRAM price hikes – but Qualcomm’s bread and butter is the premium tier (Snapdragon 8 Series). High-end consumers are less price-sensitive, and OEMs will prioritise their limited memory supply for these high-margin flagship devices where QCOM makes its biggest profits. In short, while memory shortage sure is a headwind, it’s not like Qualcomm is entirely unequipped to weather that storm. How diversified portfolio makes Qualcomm stock worth owning on the dip What’s also worth mentioning is that even if memory shortages cap handset shipments through the remainder of 2026, QCOM’s diversified portfolio positions ...