This week, we cover two Large Cap U.S. firms: Encompass Health Corporation and Gen Digital Inc. EHC has seen EVA Momentum accelerate on a sequential basis. GEN recently reported strong numbers and raised its 2026 outlook. The firm was also upgraded PRVit last week.<\/p>\n\n\n\n
Firms in aggregate expanded in their incremental value creation through 2025 with industry revenues expanding to a record high. We expect that growth will remain strong in 2026 but caution that the market tends to peak when billings peak, which is around 3 months prior to EVA Momentum peaking out.<\/p>\n\n\n\n
For this week\u2019s improvers in the PRVit framework, we take a deep dive into Broadridge Financial Solutions, Inc. (BR, rated \u2018Overweight\u2019), SS&C Technologies Holdings, Inc, & News Corporation.<\/p>\n\n\n\n
In line with our 2026 Financials Roadmap, Asia ex Japan emerges as a key bright spot in an otherwise unattractive industry. Increasing capital intensity throughout 2025 offset the improvements in top-line growth which ultimately led to a contracting EVA Margin. As fundamentals deteriorate, investor expectations for future value creation are approaching 15-year highs.<\/p>\n\n\n\n
For 2026, we maintain an \u2018Underweight\u2019 stance on the global Hotels, Restaurants & Leisure industry. EVA growth trends have been pressured since rolling over in late 2023, with investor expectations for incremental growth moving higher over the past six quarters. The industry has struggled over the past couple of years amid dampening consumer confidence. However, we think that there are some interesting stock-picking opportunities within the industry at this stage.<\/p>\n\n\n\n
A few times each year, we re-visit the Russell 1000 Value Index to identify names that do not look cheap. We also provide a list of the most attractive and cheapest names in the Russell 1000 Value Index.<\/p>\n\n\n\n
We use the EVA Profitability Trend (P2) factor to highlight disconnects between the Russell 1000 Growth Index and our view of high-growth companies. We provide a list of companies in the Russell 1000 Growth Index that we consider low-growth and unattractive. We also include companies that are high-growth and attractive.<\/p>\n\n\n\n
Cheap Value posted a positive spread in January in both the Large Cap and the Small Cap universes. Quality and most of its subfactors (Profitability and Risk) posted a negative spread as investors added to Risk positions and ignored Profitability.<\/p>\n\n\n\n
Through the second week of February, we see PRVit generating alpha everywhere except Japan. Quality worked in the U.S., AxJ, and Emerging Markets but had a negative spread in the other regions. Cheap Value outperformed expensive Value in all regions except the U.S. Investors took off Risk in the U.S., AxJ, Emerging Markets, and in the Global universe.<\/p>\n\n\n\n
From this week\u2019s Semiconductor industry report we look at the timing of when industry revenue (Semiconductor Industry<\/p>\n\n\n\n
Association) and EVA Momentum (value creation) peak and what that means from a market value perspective. Is this \u201cSupercycle\u201d reaching closer to peaking?<\/p>\n\n\n\n
—<\/p>\n\n\n\n
Originally Posted on February 12, 2026<\/p>\n\n\n\n
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This week, we cover two Large Cap U.S. firms: Encompass Health Corporation and Gen Digital Inc. EHC has seen EVA Momentum accelerate on a sequential basis. GEN recently reported strong numbers and raised its 2026 outlook. The firm was also upgraded PRVit last week.<\/p>\n","protected":false},"author":1632,"featured_media":231563,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6,8,9,23,26,3],"tags":[],"contributors-categories":[19476],"class_list":{"0":"post-239084","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-north-america","8":"category-region","9":"category-securities","10":"category-technical-analysis","11":"category-text-articles","12":"category-traders-insight","13":"contributors-categories-iss-eva"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n