Summary of Key Points from the Conference Call Industry Overview - The focus on AI investments has overshadowed other potential investment opportunities in various sectors, including semiconductors, power plants, and capital goods [1][2] - Companies not directly benefiting from AI are highlighted as compelling investment options, such as Freeport-McMoRan, which has indirect exposure to AI [1] Core Insights and Arguments - A screening of Buy-rated US stocks not included in AI/power/infrastructure ETFs identified 82 stocks with positive 3-month EPS revisions and trading below a market multiple of 26x, leading to a final list of 16 equities [2] - Savita Subramanian models an 8% return for the S&P over the next 12 months, emphasizing the importance of owning average stocks rather than the index [3] - Risks associated with AI investments include potential declines in middle-income white-collar jobs, which could impair consumer spending [3] - Hyperscalers investing heavily in AI technology may face de-rating if monetization does not meet expectations, as they currently trade at high multiples despite capital-intensive spending [3] Notable Companies and Their Performance - **Amcor PLC (AMCR)**: Recent acquisition of Berry Global is expected to enhance valuation, with EBITDA projected to approach $3.8 billion for F26 [11][12] - **AT&T Inc. (T)**: Strong performance metrics with 405k post-paid phone net additions, projecting a 9% EPS growth in 2026 [15][17] - **BGC Group**: Dominates the energy derivatives market, with expected growth in volumes due to increased power consumption driven by cloud and AI adoption [18][19] - **Church & Dwight (CHD)**: Positioned to benefit from consumer trade-down trends, with organic sales growth of 3.4% in Q3 [20][21] - **Dollar General (DG)**: Improved execution and a focus on lower price points are expected to boost sales, with a current valuation below the 5-year average [23][27] - **Freeport-McMoRan (FCX)**: Anticipates a restart of the Grasberg mine, with bullish forecasts for copper prices due to supply challenges [32][34] - **Henry Schein (HSIC)**: Transitioning to a higher-margin business model, with a target of 60% operating income from high-growth products by 2027 [38][39] - **Progressive Corp (PGR)**: Strong EPS revisions and expected dividend announcements are anticipated to drive growth [65][67] - **Walt Disney Co. (DIS)**: Growth drivers intact with expectations for double-digit growth in Entertainment operating income [80] Additional Important Insights - The market is currently cautious, providing room for multiple expansions as fundamentals improve across various sectors [14] - Regulatory improvements in Connecticut are expected to enhance Eversource's valuation [28][30] - Viking Holdings is positioned for premium valuation due to its unique brand and superior margins in the cruise industry [76][79] - The overall sentiment indicates a potential for significant investment opportunities outside the AI sector, as companies adapt to changing market dynamics and consumer behaviors [1][2][3]

Group 1 - AT&T Inc. (NYSE:T) shares were upgraded by Keybanc from Sector Weight to Overweight, with a price target set at $30 [1] - Keybanc attributed the recent share pullback to "overblown" concerns regarding AT&T's Wireless business [1] - Jim Cramer expressed positive sentiment towards AT&T, highlighting its historical cheap valuation and current earnings multiple of 12 times, along with a dividend yield of 4.3% [2] Group 2 - Cramer noted that the stock is appealing for investors in their 50s and 60s, especially if treasury yields decline [2] - Despite the potential of AT&T as an investment, there is a belief that certain AI stocks may offer higher returns with limited downside risk [2]

Core Insights - Bank of America has identified AT&T among 16 stocks recommended for investors seeking diversification away from AI-related investments [1][8] - The selected stocks are believed to be undervalued, have seen profit estimates raised in the last three months, and are trading at least 10% below their 52-week highs [2][8] Consumer-Focused Stocks - Notable companies include AT&T, Walt Disney Co., Dollar General, and Viking Holdings, which are familiar to American consumers [4][8] - Disney is expected to benefit from its sports offerings and theme parks, while AT&T has exceeded phone subscriber estimates, indicating potential growth [5][8] Financial and Logistics Stocks - KeyCorp and Progressive are highlighted, with Progressive showing strong positive revisions in earnings per share estimates [10] - BGC Group is noted for its dominant position in energy derivatives, and J.B. Hunt Transport Services is recognized for effective cost-cutting measures [11] Industrial and Energy Stocks - Analysts have identified natural gas and energy stocks like Eversource Energy and Oneok, along with Freeport-McMoRan, which is expected to recover from recent operational issues [12] - Industrial firms such as Amcor are considered undervalued following recent acquisitions and leadership changes [13]

Core Insights - Bank of America has identified AT&T among 16 stock picks for investors seeking to diversify away from AI-related investments [1][2][9] - The selected stocks are believed to be undervalued, with raised profit estimates in the last three months, trading below broader market multiples, and at least 10% below their 52-week highs [3][9] Consumer-Focused Stocks - Notable companies include AT&T, Walt Disney Co., Dollar General, and Viking Holdings, which are familiar to American consumers [5][9] - Disney is expected to benefit from its sports offerings and theme parks, while AT&T has shown growth potential after exceeding phone subscriber estimates [6] - Viking's unique all-inclusive product offering is driving superior financial performance, and Dollar General is anticipated to perform well as consumers seek value amid inflation [7] Finance and Logistics Stocks - KeyCorp and Progressive are among the finance and logistics firms listed, with Progressive experiencing strong positive revisions in earnings per share estimates [10] - Analysts believe that current estimates for Progressive may be too conservative for upcoming quarters and into 2027 [10]

Core Insights - AT&T, Inc. is expanding its offerings for small businesses to meet the growing demand for digital transformation and connectivity [1][4] - The company’s innovative product suite, including 5G and fiber solutions, aligns well with the needs of small businesses [2][3] Product Offerings - AT&T's 5G standalone network provides faster speeds and lower latency, supporting advanced applications [3] - The introduction of AT&T Express Waves allows businesses to scale operations quickly, supporting cloud, AI, and edge applications [4] - AT&T's business fiber is designed for high-bandwidth applications and cloud operations, enhancing performance and reliability [3][4] Market Position and Competition - AT&T faces competition from Verizon and T-Mobile, both of which offer comprehensive solutions for small businesses [5][6] - Verizon's marketplace includes software solutions that help streamline workflows, while T-Mobile has launched new plans that include Microsoft 365 [5][6] Financial Performance - AT&T's stock has increased by 16% over the past year, outperforming the Wireless National industry's decline of 6.3% [7] - The company's shares trade at a forward P/E ratio of 11.45, lower than the industry average of 12.2 [9] - Earnings estimates for AT&T for 2025 and 2026 have seen an upward revision over the past 60 days [10]

Core Viewpoint - AT&T's stock price has retreated from a five-year high, presenting an attractive buying opportunity for investors as the company plans to provide fiber services to 60 million households and businesses, and has recently acquired spectrum from EchoStar, positioning itself as a clear leader in the convergence space [1] Group 1: Analyst Ratings and Price Target - KeyBanc upgraded AT&T's rating from "in line with the industry" to "overweight" due to the company's appealing growth prospects and capital returns, setting a target price of $30 [1] - Analysts expect AT&T's convergence user base to reach approximately 6.2 million by the end of 2025 and nearly double to about 12 million by 2030, significantly outpacing its closest competitor [1] Group 2: Financial Projections - KeyBanc analysts project AT&T's adjusted EBITDA growth to increase from about 3% in 2025 to nearly 5% by 2027/2028, driven by growth in mobile and broadband services along with cost savings [1] - By 2026, the expected shareholder capital return is $2.12 per share (approximately 8.5% yield), which is considered relatively attractive, with an anticipated total return rate close to 15% when combined with a projected 6% earnings growth [1] Group 3: Recent Performance - Following the recent quarterly performance announcement, AT&T added 288,000 fiber users, exceeding expectations, and net additions of 405,000 postpaid wireless users, surpassing the forecast of 331,000 [2] - Strong postpaid mobile network user growth and low churn rates, along with a 2.3% increase in mobile service revenue, indicate that the company's core wireless business remains robust [2]

Core Viewpoint - AT&T is identified as the only wireless player with a clear strategic direction according to KeyBanc [1] Group 1 - KeyBanc highlights AT&T's unique position in the wireless industry, suggesting it has a well-defined strategy compared to its competitors [1]

Core Insights - UniCredit has established an agreement with Amundi, Europe's largest fund manager, to manage the assets of the bank's clients, which may continue beyond its 2027 expiration if both parties find mutual benefits [1] Group 1 - The partnership between UniCredit and Amundi is significant for asset management within the banking sector [1] - Chief Executive Andrea Orcel emphasized the importance of mutual benefits for the continuation of the agreement past 2027 [1]

Core Insights - AT&T, Inc. has gained 14.2% over the past year, outperforming the Wireless National industry's decline of 5.1% [1] - The stock has underperformed compared to the Zacks Computer & Technology sector and the S&P 500 during the same period [1] Performance Comparison - AT&T has outperformed peers like Verizon Communications Inc. (0.7% gain) and T-Mobile US, Inc. (11.5% decline) [2] Business Expansion and Product Offerings - The company is rapidly expanding its portfolio to meet evolving customer needs, introducing AT&T Express Waves for ultra-fast, secure connections [3][4] - AT&T has added 10 million fiber Internet customers, nearly 40% more than Verizon, and aims to reach 60 million total fiber locations by the end of 2026 [5][9] - The company reported 288K fiber net adds and 16.8% year-over-year fiber revenue growth, boosting the consumer wireline business [6][18] Revenue Growth and Challenges - Service revenue growth slowed to 0.8% year-over-year, with a decline in postpaid phone ARPU from $57.07 to $56.64 [10] - Postpaid churn increased to 1.07% from 0.93%, indicating challenges in customer retention amid stiff competition [10][11] - Business wireline revenues declined by 7.8% year-over-year, with EBITDA from this segment decreasing by 12.9% [12] Valuation Metrics - AT&T appears to be trading relatively cheaper compared to the industry, with a price/earnings ratio of 11.24, lower than the industry average of 11.8 and the stock's mean of 12.56 [14]

Upgrades - JPMorgan upgraded Outfront Media (OUT) to Overweight from Neutral with a price target of $25, up from $19, citing the out-of-home channel as the most resilient traditional advertising market with improved momentum in Q3 [2] - Guggenheim upgraded Grail (GRAL) to Buy from Neutral with a price target of $100, noting that while Galleri is not a perfect test, it remains the leading commercially available MCED test with a significant data moat [3] - Piper Sandler upgraded Floor & Decor (FND) to Overweight from Neutral with a price target of $80, up from $75, highlighting potential for comparable sales improvement by Q1 of 2026 [4] - KeyBanc upgraded Progyny (PGNY) to Overweight from Sector Weight with a price target of $30, indicating limited share downside and several positive catalysts over the next 12 months [4] - KeyBanc upgraded AT&T (T) to Overweight from Sector Weight with a price target of $30, attributing the recent share pullback to overblown wireless competition concerns [5] Downgrades - Raymond James downgraded Bath & Body Works (BBWI) to Market Perform from Outperform, stating that the company's growth will be below its long-term potential due to slow improvements in digital capabilities and distribution [6] - Wolfe Research downgraded Intellia Therapeutics (NTLA) to Peer Perform from Outperform, citing safety issues with nexiguran ziclumeran as a hindrance to the bull thesis [6] - Raymond James double downgraded Brighthouse Financial (BHF) to Market Perform from Strong Buy, referencing the announcement of its acquisition deal for $70 per share [6] - Raymond James double downgraded Centerspace (CSR) to Market Perform from Strong Buy, noting that while the portfolio is attractive for potential buyers, the recent rally has closed the valuation gap with multifamily peers [6] - Northland downgraded QuickLogic (QUIK) to Market Perform from Outperform, maintaining a price target of $5.95, after the company reported revenue in line with guidance and uncertainty regarding a $3M contract [6]