Market Overview - U.S. stocks traded mostly lower, with the Dow Jones index falling more than 250 points, down 0.52% to 48,164.83, NASDAQ down 0.37% to 22,971.25, and S&P 500 down 0.56% to 6,778.08 [1] - European shares were lower, with the eurozone's STOXX 600 slipping 0.64%, Spain's IBEX 35 Index down 0.69%, London's FTSE 100 down 0.92%, Germany's DAX 40 down 0.85%, and France's CAC 40 declining 0.40% [5] - Asian markets closed lower, with Japan's Nikkei down 1.56%, Hong Kong's Hang Seng down 1.54%, China's Shanghai Composite down 1.11%, and India's BSE Sensex down 0.63% [6] Economic Indicators - U.S. retail sales were flat for October compared to September, down from a revised 0.1% gain in the previous month and below market estimates of 0.1% growth [7] - The U.S. economy added 64,000 jobs in November, compared to a loss of 105,000 in the previous month and above market estimates of a 50,000 increase [9] - The U.S. unemployment rate rose to 4.6% in November from 4.3% in the previous month, marking the highest reading since September 2021 [9] - Average hourly earnings for private nonfarm payrolls rose by 0.1% month-over-month to $36.86 in November, compared to a 0.4% rise in the previous month [9] - U.S. business inventories increased 0.2% month-over-month in September, in line with market estimates [9] - The S&P Global flash composite PMI declined to 53 in December, the lowest reading in six months, down from 54.2 in November [2][9] Commodity Market - Oil traded down 2.9% to $55.17, while gold traded up 0.5% at $4,357.00, silver up 0.1% to $63.59, and copper down 1% to $5.3560 [4] Company News - SRx Health Solutions Inc shares surged 92% to $0.59 after announcing an agreement to acquire EMJ Crypto Technologies [8] - Rezolve AI PLC shares rose 34% to $3.12 following preliminary December revenue results [8] - Cementos Pacasmayo SAA shares increased 48% to $10.25 after Holcim signed an agreement to purchase 50.01% of the company's owner [8] - Zynex Inc shares dropped 53% to $0.31 after entering Chapter 11 court-supervised financial restructuring [8] - Lightwave Logic Inc shares fell 19% to $3.05 after announcing the pricing of an 11.67M share common stock offering [8] - Navan Inc shares decreased 17% to $12.21 after reporting third-quarter results [8]

Group 1 - U.S. stocks experienced a decline, with the Dow Jones index dropping over 100 points on Tuesday [1] - Cementos Pacasmayo SAA – ADR shares surged 47.4% to $10.30 following Holcim's agreement to acquire 50.01% of its owner, Inversiones Aspi. S.A. [1] Group 2 - Rezolve AI PLC reported preliminary December revenue results, leading to a 23.7% increase in its stock price to $2.87 [2] - Emerald Holding Inc announced a review of potential strategic options, resulting in a 17% rise in its stock price to $4.14 [2] - NovaBay Pharmaceuticals Inc's stock increased by 16.2% to $3.15 [2] - Tilray Brands Inc saw a 15% surge in its stock price to $12.57 [2] - Clearpoint Neuro Inc's stock jumped 14.2% to $14.14 [2] - Fermi Inc gained 11.4%, reaching $9.57 [2] - Sezzle Inc authorized a $100 million stock buyback, leading to a 9.6% increase in its stock price to $72.49 [2] - WW International Inc launched a new platform for the GLP-1 era, resulting in a 7.8% gain to $26.19 [2] - Circle Internet Group Inc rose 7.7% to $81.24 [2] - Lemonade Inc's stock surged 7.4% to $80.59 [2] - Netskope Inc gained 6.9%, reaching $20.37 [2] - Ascentage Pharma Group International's stock rose 6% to $29.26 [2] - RH's stock increased by 5.5% to $172.60, with Barclays analyst maintaining an Overweight rating and lowering the price target from $385 to $283 [2] - Affirm Holdings Inc gained 4.4%, reaching $68.56 [2]

Group 1 - Holcim will acquire a majority stake in the target company [1] - The deal values the target company at $1.5 billion [1]

Company Overview - Pacasmayo (CPAC) is currently ranked 14 in the Zacks Sector Rank among 92 companies in the Construction group [2] - The company has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Performance Metrics - Year-to-date, Pacasmayo has returned 22%, significantly outperforming the Construction sector's average return of 3.5% [4] - The consensus estimate for Pacasmayo's full-year earnings has increased by 14.5% over the past 90 days, reflecting improved analyst sentiment [3] Industry Context - Pacasmayo operates within the Building Products - Concrete and Aggregates industry, which ranks 96 in the Zacks Industry Rank and has an average year-to-date gain of 18.6% [5] - In comparison, another stock in the Construction sector, Orion Energy Systems, Inc. (OESX), has returned 76.4% year-to-date and has a Zacks Rank of 2 (Buy) [4][5]

Core Viewpoint - Pacasmayo (CPAC) has experienced a significant downtrend, with a 13.1% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 indicating that a stock may be oversold [2]. - CPAC's current RSI reading is 27.11, indicating that the heavy selling pressure may be exhausting, and a price reversal could occur soon [5]. Group 2: Fundamental Indicators - Analysts have raised their earnings estimates for CPAC by 14.5% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - CPAC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8].

Core Viewpoint - Pacasmayo (CPAC) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to significant stock price movements based on their buying or selling activities [3]. Business Improvement Indicators - The upgrade in Pacasmayo's rating suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [4]. - Over the past three months, the Zacks Consensus Estimate for Pacasmayo has increased by 14.5%, indicating a positive trend in earnings estimates [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, highlighting their superior earnings estimate revisions [8][9].

Core Insights - The article emphasizes the importance of a proven ranking system that focuses on earnings estimates and revisions to identify winning stocks [1] - Value investing is highlighted as a popular strategy for finding undervalued stocks using fundamental analysis [2] - The Zacks Rank and Style Scores system are tools for investors to identify stocks with specific traits, particularly in the value category [3] Company Overview: Cementos Pacasmayo (CPAC) - Cementos Pacasmayo currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4] - The stock is trading at a P/E ratio of 10.03, significantly lower than the industry average P/E of 23.54 [4] - Over the past year, CPAC's Forward P/E has fluctuated between a high of 13.10 and a low of 7.26, with a median of 8.91 [4] Valuation Metrics - The P/S ratio for Cementos Pacasmayo is 1.08, compared to the industry average P/S of 3.17, suggesting it may be undervalued [5] - These valuation metrics contribute to CPAC's strong Value grade, indicating it is likely undervalued at present [6] - The strength of CPAC's earnings outlook further supports its position as an impressive value stock [6]

Core Viewpoint - The focus is on long-only investment strategies that evaluate companies from an operational and buy-and-hold perspective, emphasizing long-term earnings power and competitive dynamics rather than market-driven price actions [1]. Group 1: Investment Philosophy - The investment approach prioritizes operational aspects and the long-term potential of companies, suggesting that most recommendations will be holds, reflecting a cautious stance in a bullish market [1]. - The company believes that only a small fraction of companies should be considered for purchase at any given time, indicating a selective investment strategy [1]. Group 2: Communication and Disclosure - The articles are presented on an "as is" basis without warranty, representing the author's opinions and not constituting professional investment advice [1]. - There is a clear disclosure that the author has no current stock or derivative positions in the companies mentioned, nor plans to initiate any within the next 72 hours [2].

Financial Data and Key Metrics Changes - The company reported a 9% increase in sales volume compared to the same period last year, driven by stronger demand from infrastructure projects and self-construction [3] - Gross profit increased by 14.4%, and net income also rose by 14.4%, reaching PEN 71.5 million for the quarter, with a cumulative growth of 15.6% for the first three months of the year [3][7] - Revenues for the quarter increased by 10.9% to PEN 574.1 million, with consolidated EBITDA rising to PEN 160.6 million, a 3.9% increase [7][8] - For the first nine months of the year, revenues increased by 7.3%, and gross profit rose by 10.5% compared to the same period in 2024 [8] Business Line Data and Key Metrics Changes - Cement sales increased by 10.4% this quarter, with gross margin up by 1.6 percentage points due to lower costs of coal and energy [9] - Concrete pavement and mortar sales surged by 26.3%, primarily due to infrastructure projects, with gross margin increasing by 2.6 percentage points [10] - Precast materials sales rose by 23% this quarter, with gross margin higher by 5.6% compared to the same period of 2024 [11] Market Data and Key Metrics Changes - The northern region of Peru is experiencing growth above the national average, with expectations for continued strong activity in infrastructure projects [16] - The company does not anticipate significant impacts from upcoming elections on self-construction or infrastructure projects, as historical trends show resilience during electoral periods [22][23] Company Strategy and Development Direction - The company is focused on innovative building solutions, including prefabrication and BIM methodology, to enhance efficiency and sustainability in construction [4] - Collaboration with Newmont and Bechtel Corporation on a water treatment plant project highlights the company's commitment to environmental sustainability [5] - The company aims to maintain a strong market position through increased marketing expenses to defend its market share [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining strong volumes and margins despite potential electoral impacts, emphasizing the importance of ongoing investment and innovation [22][23] - The company plans to keep sustaining capital expenditures around PEN 100 million, with a steady dividend of PEN 190 million announced for the year [19] Other Important Information - The company ranked among the top 10 in the Merck Corporate Reputation Ranking for the third consecutive year, reflecting its commitment to responsible management [5] - The net debt-to-EBITDA ratio stands at 2.5x, indicating a solid financial position due to higher EBITDA and debt amortization [11] Q&A Session Summary Question: Expectations for volume performance ahead of federal elections - Management noted that the northern region is growing above the national average and does not expect significant impacts from the elections on volumes [16][17] Question: Capital allocation and CapEx performance for 2026 - Sustaining CapEx is expected to remain around PEN 100 million, with dividends maintained at PEN 190 million [19] Question: Adjustments to commercial strategy during electoral cycles - Management disagreed with the notion that electoral cycles lead to pauses in investment, emphasizing the need for continuous growth and market share defense [22][23] Question: Explanation for the increase in financial income - The increase in financial income to $8.7 million was attributed to mining royalties, which provided extraordinary income [26] Question: Future margin expectations - Margins are expected to remain steady despite volume growth, with increased marketing expenses to defend market share [29]

Financial Data and Key Metrics Changes - The company reported a 10.9% increase in revenues for Q3 2025 compared to Q3 2024, reaching S/574.1 million, driven by higher sales of concrete and pavement for infrastructure projects [9] - Gross profit increased by 14.4% year-over-year, attributed to a decrease in raw material costs and higher revenues [9] - Net income for the quarter rose 14.4% to PEN 71.5 million, with a cumulative growth of 15.6% for the first nine months of the year [4][13] - Consolidated EBITDA was S/160.6 million, a 3.9% increase compared to the same period in 2024 [9] Business Line Data and Key Metrics Changes - Cement sales increased by 10.4% in Q3 2025 compared to Q3 2024, driven by increased demand [11] - Sales of concrete pavement and mortar surged by 26.3% in Q3 2025, primarily due to infrastructure projects [12] - Precast materials sales rose by 23% in Q3 2025, with a strong increase in sales of pavers [13] Market Data and Key Metrics Changes - The northern region of Peru is experiencing growth above the national average, with strong activity in self-construction and infrastructure projects [17] - The company anticipates that the upcoming elections will not significantly impact volumes, as historical trends show resilience in the market during electoral periods [18][25] Company Strategy and Development Direction - The company is focusing on innovative building solutions, including prefabrication and BIM methodology, to enhance efficiency and sustainability [5] - Collaboration with Newmont and Bechtel Corporation on a water treatment plant project highlights the company's commitment to environmental sustainability [6] - The company aims to maintain a client-centric approach while adapting products and services to meet current and future demands [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued positive results and momentum, emphasizing the importance of doing what is right for clients and communities [7] - The company expects strong volume performance to persist, with optimism for growth in 2026 despite potential electoral impacts [28] Other Important Information - Administrative expenses increased by 20.2% in Q3 2025, primarily due to higher personnel costs related to union bonuses [10] - The net debt-to-EBITDA ratio was reported at 2.5 times, reflecting improved EBITDA and debt amortization [14] Q&A Session Summary Question: Expectations for volume performance ahead of federal elections - Management noted that the northern region is growing above the national average and does not foresee significant impacts from the upcoming elections on volumes [17][18] Question: Capital allocation and CapEx performance for 2026 - Sustaining CapEx has remained around S/100 million, and the company plans to maintain this level [21] Question: Dividend expectations for 2026 - The board decided to keep the dividend at S/190 million, aligning with previous years despite expected net profit growth [21][22] Question: Adjustments to commercial and operational strategy during electoral cycles - Management disagreed with the notion that electoral cycles lead to pauses in investment, emphasizing the need for continuous operation and investment [24][25] Question: Explanation for the increase in financial income - The increase in financial income to $8.7 million was attributed to the resolution of mining royalties, resulting in extraordinary income [28]