Industrials

Report by Kailash Capital Research

Kailash Capital Research argues that midcap allocations have shrunk to an unprecedented 19.4% of the Russell 1000, setting a fresh six-decade low beneath the dot.com trough. Although the relative trade lagged by 3.6% since year-end 2024 (Russell 1000 up 32.3% vs. 28.7% for midcaps), valuation spreads have stretched right back to dot.com peak extremes. The Russell 1000 trades at 3.3x sales (the 99.9th percentile historically) versus 1.7x for midcaps, leaving the relative price-to-sales multiple at 1.9x. Crucially, the largest 50 stocks trade at 6.0x sales, matching the dot.com record of 3.5x the midcap sales multiple. Sector concentration has also intensified, with IT expanding to 36% of the large-cap benchmark, whereas midcaps offer broader US economic exposure led by Industrials at 17%. Kailash Capital Research reiterates funding midcaps by trimming mega caps, ranking AES Corp (AES), Cheniere Energy Inc (LNG), Popular Inc (BPOP), Axis Capital Holdings Ltd (AXS), and Halliburton Co (HAL) at the top of their 25-stock screen.

Energy

Report by Your Weekend Reading

Global LNG markets had been bracing for a wave of new supply led by Qatar, but that assumption is now in question. Qatar isn’t adding 32 MTPA - it’s effectively losing 12, tightening supply from a key swing supplier. More importantly, the disruption shifts the market from a cost-driven framework to one increasingly defined by security of supply. Reliability, not price, is becoming the dominant variable in long-term contracting. This reinforces the case for energy diversification and challenges expectations of a rapid decline in coal demand. The real beneficiaries are US LNG exporters, which gain pricing power, contract optionality and greater exposure to spot markets, with US capacity effectively de-risked. While market attention remains focused on oil, the more durable opportunity lies in a structural bull case for US LNG infrastructure. Highlighted names include Cheniere, Venture Global and NextDecade.

Energy

Report by Cmind

Cmind is rolling out 4Q22 earnings beats / misses predictions at both the sector level and company level. In the Energy sector, they have made predictions for 182 US public companies. Breaking down to cap level, there are 34 large-cap (28 predicted to beat vs. 6 predicted to miss), 37 mid-cap (20 beats vs. 17 misses) and 111 small-cap ( 52 beats vs. 59 misses) companies. Overall, the energy sector is predicted to outperform most other sectors. Stocks expected to beat: Schlumberger, Diamondback Energy, Halliburton and Plains All American Pipeline. Stocks likely to miss: Cheniere Energy, Williams Companies, Enbridge and Imperial Oil.