RJ Hamster
š¦ The Night Owl Newsletter for December 1st
Unsubscribe The Market Reset Is ComingāHereās How to Read It Early (From Krypton Street)Up Over 20% in 2025, These 3 Stocks Are Boosting Buyback CapacityWritten by Leo MillerThree stocks that are performing well in 2025 just made notable buyback announcements. All three have achieved returns north of 20% this year, beating the 18% return of the S&P 500 Index. Letās dive into the important buyback news surrounding these three firms. KEYS: Enabling AI and Boosting Buybacks After Earnings WinFirst up is Keysight Technologies (NYSE: KEYS), which is up 23% in 2025. The companyās latest earnings post has driven a significant portion of the stockās gains this year, with shares popping 10% on Nov. 25 following the release of the report.Keysight beat estimates on both sales and adjusted earnings per share (EPS), with revenue rising by 10%. The firmās next quarter guidance also implies a significant acceleration in growth, with Keysight anticipating sales to rise by around 19%.Keysight provides a variety of solutions that enable artificial intelligence infrastructure buildouts. For example, its specialized electronic design automation (EDA) software helps drive advancements in the networking chips that enable high-speed data transfer in data centers.The company enabled Broadcom (NASDAQ: AVGO) to build its 1.6-terabyte networking chips, which are some of the most advanced of their kind.Along with its strong earnings report, Keysight announced a buyback program increase worth $1.5 billion. This adds to the approximately $110 million in repurchase capacity that the firm had at the end of October. Keysightās repurchase capacity now equals a significant 4.7% of the firmās market capitalization. This signals confidence from management and allows Keysight to add a tailwind to EPS by reducing its shares outstanding.Does Management See Value in SEA Shares?E-commerce and gaming company SEA (NYSE: SE) has also performed well in 2025, up approximately 31%, though still down 29% from its 2025 high, which was reached in September.The companyās Shopee e-commerce platform, which primarily serves customers in Southeast Asia and Brazil, saw sales rise 35% last quarter to $4.3 billion, according to SEA’s most recent earnings report.Its Garena gaming platform is also growing, with revenue rising 31% last quarter. However, the companyās significant miss on adjusted EPS led shares to fall over 8% on Nov. 11.On Nov. 17, SEA announced a share repurchase authorization worth $1 billion. This is equal to around 1.2% of the stockās over $80 billion market capitalization.Although this buyback program is relatively small, it is meaningful, as SEA has not traditionally engaged in buybacks. In fact, over the past five years, SEAās outstanding share count has increased by about 20%, showing that buybacks have not been a big part of its capital allocation policy. Authorizing this buyback now, with shares down substantially from their highs, suggests that SEA believes there is value in its stock price.SOLV Announces Strong Earnings, First Buyback, and a New AcquisitionLastly, healthcare company Solventum (NYSE: SOLV) has just turned its fortunes around in a big way. As of the Nov. 6 close, shares were flat on the year.The companyās Q3 2025 earnings report sent shares up nearly 8% on Nov. 7, and they havenāt looked back since. The stock is currently up 29% for 2025.SEA solidly beat Wall Street estimates on the top and bottom lines, and raised its full-year guidance. Notably, the firm experienced organic growth across its surgical devices, dental solutions, and health information software businesses.On Nov. 20, Solventum announced a large buyback program worth $1 billion, which equates to around 6.7% of its market capitalization. This is the companyās first-ever repurchase authorization and comes after it sold its water filtration business to reduce debt by $2.7 billion. Solventum still retains $1.6 billion in cash and plans to acquire Acera Surgical for up to $900 million, positioning itself for continued expansion.SEA: Growth, Profitability, Buybacks Are Up, Shares Are DownAmong the three, SEAās buyback news carries particular weight due to the context. The company is growing both revenue and profits, yet its stock has significantly pulled back. Managementās decision to authorize a buyback for the first time in years suggests a belief that shares are undervalued.Investors interested in growth names taking steps to enhance shareholder value should consider further due diligence on SEA, especially given its combination of operational improvement and capital return initiatives. READ THIS STORY ONLINEThe 2026 Shift: Why the āAI Financial Threat Assessmentā Matters (Ad)As 2025 comes to a close, artificial intelligence is taking a stronger hold on the global financial system.Banks, governments, and major institutions are rapidly deploying AI to monitor transactions, evaluate risk, and even decide who gains access to credit and essential financial services. While these innovations promise greater efficiency, they also introduce new challengesāespecially around privacy, control, and financial independence.š [ACCESS YOUR YEAR-END REPORT: āAI FINANCIAL THREAT ASSESSMENTā]Congress Beat the Market AgaināHere Are the 3 Stocks They BoughtWritten by Chris MarkochThe issue of banning Congressional stock trading is gaining momentum. Itās not only retail investors who are drawing attention to the issue. Members of Congress themselves are starting to raise questions.The issue isnāt whether Congressional leaders should be allowed to own stocks, but whether they should be able to actively trade stocks. MarketBeat offers a free tool that enables investors to track congressional stock trades. Itās as current as it can be.However, the trades donāt have to be disclosed for about two weeks after theyāre made. That means by the time theyāre disclosed, the biggest price moves may have already occurred. Plus, members are only required to report the dollar amount of the trade within a broad range, for example, between $100,001 and $250,000.Keep in mind, individual investors, even when theyāre members of Congress, buy stocks for many reasons. In other words, correlation doesnāt mean causation. However, finding stocks that have some buying momentum is important no matter whatās stimulating the buying activity.That’s the focus of this article. Here are three stocks that members of Congress have purchased, which posted gains in November when the rest of the market experienced a sell-off.RV Component Maker Rebounds on Strong Earnings and Industry TailwindsThe first stock that might interest investors is LCI Industries (NYSE: LCII), currently the third-most purchased stock by Congress. LCI Industries manufactures engineered components and systems for the recreational vehicle (RV), marine and housing industries. This industry benefited from a surge in demand in 2020 and 2021, but sales have normalized for the last several years.In early November, Tony Wied, a congressman from Wisconsin, reported a trade between $1 million and $5 million at an average share price of $92.02. Since that point, LCII stock is up 24.2%. One reason for that could have been the companyās earnings report. LCII beat on the top and bottom lines.This could be a correlation with data from the RV Industry Association (RVIA), which forecasts that RV sales will reach about 337,000 units by the end of 2025 and will continue to grow into the mid-300,000 unit range in 2026.Homebuilder for First-Time Buyers Rallies as Housing Market Shows Signs of ThawingFollowing the contrarian trend, the next stock on this list is LGI Homes Inc. (NASDAQ: LGIH). LGI Homes is a homebuilder that focuses on first-time homebuyers.Like the RV industry, the housing market was on fire in 2020 and 2021, but has cooled significantly in the last few years. A key reason for that has been interest rates. While they may not be high from a historical standpoint, the sharp rise from near zero to nearly 5% at one point made home affordability a key issue for many Americans.In this case, the specific trade was made by Tim Moore, a congressman from North Carolina. On Oct. 30, Moore purchased between $15,000 and $50,000 of LGIH stock at an average price of $40.83.Since that point, LGIH stock is up more than 28%. Perhaps, more significantly, analysts give the stock a consensus price target of $72.13, which would be a gain of over 36% from its closing price on Nov. 28. This may support recent evidence of thawing in the frozen housing market, although the growth remains limited to specific regions.High-Priced Insurance Holding Company Climbs on Earnings Strength and Buyback PlanThe last stock on this list is White Mountains Insurance Group Ltd. (NYSE: WTM). This is a diversified insurance and financial services holding company headquartered in Bermuda.Itās a pricey stock that trades for over $2,000 a share. That may keep some investors away from investing in it. However, that didnāt stop at least one member of Congress from investing in the company. Michael McCaul, a Congressman from Texas, made two separate purchases of WTM stock on Aug. 20 and Sept. 22, respectively. Each purchase was between $15,000 and $50,000.For full disclosure, McCaul also sold some WTM stock on Aug. 21. However, that sale was in the range of $1,000 and $15,000.Since the initial purchase in August, White Mountains’ stock is up 10.6%. Thatās partially supported by the companyās strong earnings report, which it delivered in early November. The company has also recently commenced a āmodified Dutch auctionā self-tender offer to purchase up to $300 million in value of its common shares. READ THIS STORY ONLINEThe Market Reset Is ComingāHereās How to Read It Early (Ad)See Early-Stage Activity Before It Reaches Mainstream Screens We highlight micro-cap and small-cap companies gaining early traction based on research, visibility shifts, and market interest. GET THE FREE GUIDE ā JOIN NOWGo on a Shopping Spree With 3 Top Retail ETFsWritten by Nathan ReiffHeading into the holiday season, it’s not clear how broad economic and consumer concerns will impact spending. However, if Black Friday 2025 is any indication, online retailers are likely to do well. Consumers across the country spent a record $11.8 billion online on Black Friday this year, with a particular focus on video game consoles, electronics and home appliances.While brick-and-mortar store traffic remains soft, the surge in e-commerce spending highlights a shift in shopping behavior. For broad access to the retail world during the busiest shopping season of the year, consider these three exchange-traded funds (ETFs) focused on the online retail space. Targeted E-Commerce Focus With a Special Interest in AmazonFor investors looking for a fund that tracks companies primarily operating in the e-commerce space, the ProShares Online Retail ETF (NYSEARCA: ONLN) is a worthy option.ONLN has a condensed portfolio including around 20 names, with more than three-quarters of assets invested in U.S. online retailers and the majority of the remainder focused on Chinese companies.Despite its largest holdingāAmazon.com Inc. (NASDAQ: AMZN)āreturning under 6% year-to-date (YTD), ONLN has gained more than 32% YTD, aided by broader market strength and strong performance from other holdings. Amazon makes up roughly a quarter of ONLNās portfolio, so investors already holding Amazon stock may want to monitor for overexposure.Investors might appreciate ONLN for its access to e-commerce companies based in China, including major names like Alibaba Group Holding Ltd. (NYSE: BABA) and PDD Holdings Inc. (NASDAQ: PDD). At an expense ratio of 0.58%, ONLN may be a bit pricey for some investorsābut this year’s returns will likely make those costs worthwhile.Diversified Global E-Commerce Access, But Low VolumesThe Global X E-commerce ETF (NASDAQ: EBIZ) takes a more diversified approach. Rather than focusing solely on online retailers, it includes platform providers, software firms, and service companies that support the e-commerce ecosystem.U.S. stocks represent just under 40% of the total asset base, with Chinese companies accounting for about 25%. Canada, Japan, Singapore, and many other countries also have representation.EBIZ has a portfolio of about 42 stocks, with assets more evenly distributed across its holdings than ONLN’s.While it is dominated by large-cap companies, approximately 30% of assets are invested in mid-, small-, or micro-cap firms. So far in 2025, this mix has generated returns of a market-beating 18%.With an expense ratio of 0.50%, EBIZ is slightly cheaper than ONLN. However, low assets under management (AUM)ājust $52 millionāand a thin one-month average trading volume of around 7,400 shares could pose liquidity concerns for active traders.Broadest Portfolio With an Emphasis on Mid- and Small-Cap NamesWith an expense ratio of 0.65%, the Amplify Online Retail ETF (NYSEARCA: IBUY) is the priciest fund on this list.Given that IBUY also has the lowest returns of these three fundsāunder 14% YTD, trailing the S&P 500āit might seem a less obvious choice than the others. However, IBUY’s key advantage is its diversification, as the fund includes more than 80 global e-commerce companies across the retail, marketplace, travel, and omnichannel corners of the market.IBUY also has the most even market cap distribution, with more than half of its invested assets focused on mid- and small-cap names combined.This makes IBUY a good option for investors looking for e-commerce companies outside of the biggest firms in the business. READ THIS STORY ONLINEThe crypto summit Wall Street wants to stop (Ad)The crypto summit Wall Street wants to stop Learn how to structure your portfolio like the top hedge funds. CLICK HERE TO RESERVE YOUR SEAT NOW.More StoriesMicron’s $338 Target: The AI Memory Supercycle Is Just StartingIs Netflix Making a Calculated Play for the Dow Jones?Now That the Shutdown Is Over, Hereās Where Attention Is Shifting (Ad)NuScale’s Shocking Q3 Was a Bullish Signal in DisguiseWhy Silver Beat Gold and the S&P in 2025āAnd What Comes NextNVIDIAās 13F Reveals 2 Q3 WinnersāAnd 1 Painful MissIf D-Wave Is Too Risky, Consider These 3 Quantum ETFs for DiversificationThe Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.  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