Daily Brief United States: Texas Instruments, Crude Oil, CCC Intelligent Solutions Hold, Fluor Corp, Evommune, Johnson & Johnson, Cleveland-Cliffs Inc , Forward Air, Anebulo Pharmaceuticals , Quest Diagnostics and more

• The demand & inventory correction lasted for 9 quarters (4Q22-4Q24) but we’re already past peak recovery in 4Q25. 2-3Q25 revenue growth was ~15% YoY, declining to 10% in 4Q. 
• 4Q guidance: revenues ok, weak EPS 1) higher tax rate 2) lower production loading. While management says that inventories are at a good level, TXN is cutting down production levels.
• Consensus is ~10% too high for 2026 & 27, Valuations not attractive, above average.

• Crude oil futures initially struggled Tuesday as global trade tensions and supply glut fears continued to drag on prices before a late-day rebound lifted benchmarks into positive territory on the day.
• Front-month Dec25 ICE Brent futures were trading at $61.37/b (2010 BST) versus Monday’s settle of $61.01/b, while Dec25 NYMEX WTI was at $57.32/b against a previous close of $57.02/b.
• Oil markets continued to face growing headwinds, including the latest round of anti-trade measures between Washington and Beijing, putting global economic growth at risk.

• We made a major mistake in our last newsletter, on CCCS. The big story in insider sales is the exit of private equity owner Advent International, not share sales by directors.
• Those sales exist, but in much smaller number than we reported.
• We remain concerned about the exit of directors, and we stand by our thesis that the stock is over-valued.

• Fluor Corporation shares have surged following reports that activist investor Starboard Value has taken a nearly 5% stake in the engineering and construction giant.
• The rally comes amid growing expectations that Starboard, led by Jeff Smith, will push Fluor to unlock value by exploring strategic alternatives for its 40% stake in NuScale Power, a small modular nuclear reactor (SMR) company that has seen its own stock skyrocket amid AI-driven power demand.
• With Fluor’s core business lagging and NuScale’s valuation surging, Starboard’s campaign centers on the market’s apparent mispricing of Fluor’s sum-of-the-parts.

• Evommune (EVMN US) is set to offer 9.375 million shares at $15-$17 and is slated for a debut of November 6th on the NYSE.
• According to the prospectus, the underwriters have reserved up to 5% of the shares at the initial public offering price in a directed share program.
• The company has a handful of license agreements which could boost the profile of this biotech. 

• There is a good amount of froth in the market.
• The “Fear & Greed Index” has slipped into “Extreme Fear” which is usually a good contra-indicator.
• For what it’s worth, I’m still finding plenty of ideas that look attractive from a “bottom up” perspective.

• Cleveland-Cliffs saw its stock jump 21.5% in a single trading session following a Q3 2025 earnings report that significantly beat EBITDA expectations and unveiled a surprise strategic pivot toward rare earth minerals production.
• This dramatic move has reenergized investor enthusiasm, particularly as it aligns with broader U.S. policy goals of reducing critical mineral dependence on China.
• For the third quarter, the company reported adjusted EBITDA of $143 million versus Street estimates of $128 million, with revenue coming in at $4.7 billion.

Key points (machine generated)

• Forward Air Corporation is expected to be sold to a financial buyer within two months for around $40, offering a potential return of 30%.
• The market may be overly pessimistic about the sale’s likelihood and timing, underestimating the deal premium due to the strategic value of Forward Air’s assets.
• Despite challenges in executing a sale, analysts believe a sale is imminent, with the stock trading around $30.50, below pre-announcement levels.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Anebulo Pharmaceuticals plans a significant reverse stock split to cash out small shareholders at $3.50 per share.
• The reverse split aims to reduce record holders below 300, avoiding SEC reporting and saving $1.3 million annually.
• The author, currently shorting the stock, warns of the $1.8 million costs of the transaction and advises independent research.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Quest Diagnostics is a leading diagnostic health information provider in the U.S. with projected revenues of $9.9 billion in 2024, increasing to $11.2 billion by 2026.
• The company operates in a duopoly with LabCorp, granting it significant pricing power despite challenges like high fixed costs and complex reimbursement processes.
• Quest’s focus on dividends and share repurchases indicates strong investment appeal and potential for sustained profitability.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.