HAPPY TUESDAY TO THE STREET.

Warner Bros. $WBD ( ā–² 1.64% ) is rebooting its favorite franchise: corporate chaos. After the AOL disaster, the AT&T detour, and the ā€œMaxā€ misfire, CEO David Zaslav is reportedly looking to sell — again.

At a certain point, every franchise just starts recycling old ideas in new packaging. Is the same true for the factory behind them? If history’s any guide, this sequel may end like every other installment — overbudget, overhyped, and underwhelming.

  • 🟩 | US stocks rose to fresh records as the AI trade strengthened ahead of tomorrow’s Fed decision.

  • šŸ“ˆ | One Notable Gainer: Nokia $NOK ( ā–¼ 1.36% ) surged after Nvidia $NVDA ( ā–¼ 1.88% ) agreed to buy $1B in Nokia shares and partner on developing 6G technology.

  • šŸ“‰ | One Notable Decliner: JetBlue $JBLU ( ā–² 1.22% ) fell after reporting Q3 revenue of $2.32B in line with estimates and a narrower loss of $0.40 per share.

Plus, an attractive opportunity in a ā€œminefield for investorsā€? Scroll down for more.

— Brooks & Cas

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MARKET SNAPSHOT

All Stock Heatmap. Credit: Finviz

Market Movers

WAYFAIR, ROYAL CARIBBEAN, UPS

Wayfair $W ( ā–¼ 0.95% ) beat Q3 earnings and revenue expectations.

Royal Caribbean $RCL ( ā–² 2.0% ) issued weaker full-year guidance, while Carnival $CCL ( ā–² 1.72% ) fell in sympathy.

UPS $UPS ( ā–¼ 1.79% ) reported stronger-than-expected Q3 results and upbeat Q4 guidance.

F5 $FFIV ( ā–¼ 0.26% ) disclosed a security incident tied to its BIG-IP product line.

Sherwin-Williams $SHW ( ā–² 0.7% ) rose on a top- and bottom-line beat.

To monitor hot stocks in real time, check out The Street Feed.

UPGRADES & DOWNGRADES

šŸ“ˆ Upgrades

  • Gordon Haskett upgraded Wayfair to Buy

  • Argus raised Warner Bros. Discovery to Buy

  • Argus lifted Avery Dennison $AVY ( ā–² 0.09% ) to Buy from Hold

šŸ“‰ Downgrades

This is just a fraction of the calls we feature all day on The Street Feed. Street Sheet Research Subscribers can see why the analysts upgraded or downgraded the stocks above and updated price targets. Get immediate access today.

Tomorrow's Trade Idea, Today

PROGRESSIVE’S SPEED BUMP

Flo’s Still in the Driver’s Seat

Progressive $PGR ( ā–¼ 0.38% ) has hit a rough patch. But long-term investors may want to stay buckled in.

The No. 2 US auto insurer saw its shares slide more than 20% from April highs after a mild earnings miss and slower growth. But now some analysts say the pullback looks overdone for a company with decades of outperformance.

In fact, T. Rowe Price’s Greg Locraft calls Progressive ā€œthe best-run auto and homeowner’s insurerā€ in the US.

Technology That Pays

The insurer grew auto policies in force 15% year over year in September, down from 20% earlier this year, while falling auto insurance premiums signaled potential margin pressure ahead.

Still, Progressive’s long-term fundamentals remain strong. The stock trades at just 12x expected 2025 earnings of nearly $18 a share — well below its 10-year average of 16x and the S&P 500’s 22x.

Progressive’s edge: its data-driven pricing and direct-to-consumer model. Its telematics platform allows real-time driving data to shape policy rates, while its local underwriting flexibility keeps pricing competitive. The result: a 12% underwriting profit margin last year — about 7.5 points higher than the industry average.

A Bargain in Reverse

Since 2019, Progressive’s auto policies are up 75%, while rival Geico’s are down about 10%. That performance gap shows just how far ahead Progressive’s tech advantage has grown.

Despite near-term margin compression, analysts see plenty of upside. Raymond James’ Greg Peters maintained an Outperform rating and $265 target, implying 25% upside from today’s close.

With a 17% market share and room to grow, a steady dividend plus special payouts, and one of the best track records in finance, some on Wall Street say Progressive’s latest skid isn’t a waving red flag, but rather, a flashing buy signal.

Are you bullish or bearish on today's stock over the next 12 months?

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OVERHEARD ON THE STREET

TechCrunch: Adobe $ADBE ( ā–² 0.84% ) launched Firefly Image 5, its latest AI model, offering 4MP native resolution, improved human rendering, and custom model creation.

CNBC: Microsoft’s $MSFT ( ā–¼ 3.23% ) GitHub launched Agent HQ, a platform that lets developers manage coding agents from multiple sources in one place.

Reuters: Microsoft and OpenAI struck a deal letting OpenAI become a public benefit corporation and lift fundraising limits.

AP: UPS $UPS ( ā–¼ 1.79% ) beat Q3 estimates and said it has cut 48,000 jobs this year as part of its ongoing turnaround plan.

Axios: SNAP payments will pause this weekend amid the shutdown, halting $8B in aid and hitting Walmart $WMT ( ā–² 0.26% ), which sees 24% of SNAP spending.

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RESEARCH REVIEW: RECORD RUNS RESUME

Didn’t receive our Street Sheet Research report last weekend?

Here are some of the pressing questions we answered:

  • What’s driving a slew of price target hikes across the crypto sector?

  • What is an attractive opportunity amid a ā€œminefield for investorsā€?

  • Can muni momentum continue?

And many more. Get these answers,Ā along with instant access to our source for real-time investing info, The Street Feed, and our first-ever Equity Research Report, An Aging America. Sign up for Street Sheet Research today.

STREET TWEET

The vibes are immaculate.

The payrolls are not.

At least it bodes well for rate cuts..?

MONDAY’S POLL RESULTS

Are you bullish or bearish on Berkshire Hathaway $BRK.B ( ā–² 0.93% ) over the next 12 months?

▇▇▇▇▇▇ šŸ‚ Bullish

ā–‡ā–‡ā–‡ā–‡ā–‡ā–‡Ā šŸ» Bearish

And, in response, you said:

  • šŸ‚ Bullish ā€”Ā ā€œBuffett stepping down does not change the business fundamentals of Berkshire's earnings power.ā€

  • 🐻 Bearish ā€”Ā ā€œTransition will be key. Can the new team sustain the past? Probably not.ā€

Reply

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