Paycom Stock Rises 22% in 6 Months: What Should Investors Do?

The Vident U.S. Equity Strategy ETF (VUSE) was launched on 01/22/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is managed by Vident Financial, and has been able to amass over $600.74 million, which makes it one of the larger ETFs in the Style Box - All Cap Value. This particular fund seeks to match the performance of the Vident Core U.S. Equity Fund Index before fees and expenses.

The Vident U.S. Quality Index is a rules-based, systematic strategy index comprised of equity securities principally traded in the U.S. market of issuers domiciled in the United States.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for this ETF are 0.50%, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 0.92%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

VUSE's heaviest allocation is in the Information Technology sector, which is about 26.20% of the portfolio. Its Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 2.71% of total assets, followed by Oracle Corp (ORCL) and Walmart Inc (WMT).

Its top 10 holdings account for approximately 20.91% of VUSE's total assets under management.

Performance and Risk

The ETF has added roughly 17.54% and was up about 24.31% so far this year and in the past one year (as of 11/21/2024), respectively. VUSE has traded between $48.51 and $61.14 during this last 52-week period.

VUSE has a beta of 1.09 and standard deviation of 17.65% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 128 holdings, it effectively diversifies company-specific risk.

Alternatives

Vident U.S. Equity Strategy ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.

Capital Group Dividend Value ETF (CGDV) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Capital Group Dividend Value ETF has $11.76 billion in assets, iShares Core S&P U.S. Value ETF has $19.78 billion. CGDV has an expense ratio of 0.33% and IUSV charges 0.04%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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DUBAI, UAE: SAP and Chalhoub Group, a leading luxury retailer in the Middle East, have signed a strategic agreement to adopt RISE with SAP, hosted on Microsoft Azure, as part of a comprehensive digital transformation initiative named Transform Chalhoub. This move marks a key milestone in Chalhoub Group’s commitment to modernize its IT infrastructure, enhance operational efficiency, and support ambitious expansion plans across its global network.

As part of the Transform Chalhoub initiative, Chalhoub Group will implement solutions including SAP S/4HANA, SAP's next-generation enterprise resource planning (ERP) solution, and a suite of SAP retail and warehouse management applications. Through this deployment, the Group will transition to a unified, cloud-based platform with real-time data, greater visibility over its extensive operations, and embedded Business AI capabilities to streamline operations, improve efficiency, and automate tasks.

Dhouha Louati, Vice President - Transformation for Chalhoub Group commented, “Partnering with SAP on Transform Chalhoub enables us to leverage powerful AI-infused solutions that will benefit our partners, customers and employees. Our experts have collaborated closely with SAP and Microsoft Azure leveraging our combined industry and regional expertise to develop the foundation we need for a seamless, scalable, and integrated system that supports our retail and distribution functions. With RISE with SAP, we’re not just upgrading our technology; we’re enhancing our entire approach to business, from inventory management to customer engagement, enabling our teams to deliver value to our customers and partners at every level.”

Emile Seferian, Director of Sales, SAP UAE, commented, “We are proudly partnering with Chalhoub, one of the most distinct retail brands in the Gulf region, to enhance the Group’s digital transformation and seamlessly connect finance, retail, and distribution functions, strengthening end customer experience, optimizing supply chain management, and enabling dynamic, data-driven decision-making across their growing network. Through this long-term partnership, teams across the Group will leverage cutting-edge Business AI and automation capabilities, enhancing service levels and delivering greater value in every country where Chalhoub Group operates.”

Seferian added, “At SAP, we are committed to supporting the digital transformation of enterprises across the region, providing solid business outcomes, and enabling accelerated access to innovative solutions that drive operational excellence.”

This agreement, signed during a ceremony in Dubai, UAE, extends the existing partnership between Chalhoub Group and SAP, with the Group already using SAP SuccessFactors for human resource management and talent development.

About SAP

As a global leader in enterprise applications and business AI, SAP  stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.. For more information, visit www.sap.com.

About Chalhoub Group

INSPIRE | EXHILARATE | DELIGHT

For over six decades, Chalhoub Group has been a partner and creator of luxury experiences in the Middle East. The Group, in its endeavour to excel as a hybrid retailer, has reinforced its distribution and marketing services with a portfolio of eight owned brands and over 300 international brands in the luxury, beauty, fashion, and art de vivre categories. More recently, the Group expanded its expertise into new categories of luxury watches, jewellery, and eyewear. 

Every step at Chalhoub Group is taken with the customer at heart. Be it constantly reinventing itself or focusing on innovation to provide luxury experiences at over 750+ experiential retail stores, online and through mobile apps, each touch point leads to delighting the customer.  

Today, Chalhoub Group stands for over 16,000 skilled and talented professionals across eight countries in the Middle East, whose cohesive efforts have resulted in the Group being certified as a Great Place to Work® in several countries. 

To keep the innovation journey going, the Group has set up “The Greenhouse”, which is not just an innovation hub, but also an incubator space and accelerator for start-ups and small businesses in the region and internationally. This is just one of the several initiatives taken by the Group to reinvent itself, catalysed by forward thinking and future proofing. The Group has also been embedding sustainability at the core of its business strategy with a clear commitment towards people, partners and the planet, and by being a member of the United Nations Global Compact Community and signatory of the Women's Empowerment Principles. 

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NVIDIA Corp revealed its robust financial performance and optimistic outlook, driven by an unprecedented wave of artificial intelligence infrastructure demand centered around its groundbreaking Blackwell systems.

What Happened: Nvidia reported a staggering $35.1 billion in revenue for the third quarter, representing a remarkable 94% year-over-year increase. Data Center revenue alone reached $30.8 billion, up an astounding 112% from the previous year.

CEO Jensen Huang described the current moment as “the beginnings of two fundamental shifts in computing,” highlighting the transition from traditional coding to machine learning and the emergence of AI as a new industrial capability.

The company’s new Blackwell systems are at the center of this transformation. Huang noted that while they shipped zero Blackwell systems last quarter, they are now shipping billions of dollars worth, with demand “staggering” and supply racing to keep up. Oracle Corp has already announced plans for AI computing clusters that can scale to over 131,000 Blackwell GPUs.

See Also: Michael Saylor’s MicroStrategy Takes Wall Street By Storm, Becomes Second-Most Traded Stock After Nvidia

One of the most closely watched aspects of the earnings call was Nvidia’s gross margin projection. CFO Colette Kress provided clarity, stating that as Blackwell ramps up, gross margins will temporarily dip to the low 70% range—potentially around 71-72.5%—before quickly recovering to the mid-70s.

“We will start growing into our gross margins,” Kress explained, “and we hope to get to the mid-70s quite quickly as part of that ramp.”

Why It Matters: Nvidia’s fourth-quarter revenue is projected at $37.5 billion, with continued strong demand for both Hopper and Blackwell systems. The company expects to ship more Blackwell systems in each subsequent quarter, indicating a robust and accelerating adoption curve.

The company sees massive potential in modernizing global computing infrastructure for AI. Huang suggested that by 2030, computing data centers could be worth a couple of trillion dollars, with a multi-year transformation ahead.

“We’re going to continue to build out to modernize IT,” Huang stated, “and then create these AI factories that are going to be for a new industry for the production of artificial intelligence.”

Price Action: Nvidia's stock closed at $145.89 on Wednesday, down 0.76% for the day. In after-hours trading, the stock dipped further by 2.53%. Year to date, Nvidia's stock has surged 202.86%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Nvidia Corp. has once again defied market expectations, delivering a blockbuster third-quarter performance that tech analysts are calling a watershed moment for artificial intelligence.

What Happened: Wedbush Securities Managing Director Dan Ives described the results as a “jaw-dropper,” emphasizing the transformative potential of the company’s AI technology. “This is the fourth revolution playing out in front of our eyes,” Ives told CNN, highlighting the broader implications for the tech sector.

Referring to Nvidia’s CEO Jensen Huang as the “Godfather of AI,” he described the company’s performance as a transformative moment.

Ives boldly predicted a Nasdaq surge to 25,000, driven by the “fourth revolution” in technology. “This is the rally, get ready,” he emphasized, highlighting an extraordinary economic multiplier where “one dollar spent on GPU chips translates to an $8 to $10 impact across the tech sector.” The analyst believes the market is underestimating demand for AI technologies in the next 12 to 18 months.

The analyst addressed potential risks to the AI boom, noting initial market nervousness about high spending and profitability concerns. However, he sees improving confidence, citing companies like Palantir Technologies Inc , ServiceNow Inc , and Oracle Corp as positive indicators.

Geopolitical concerns, particularly around China and potential tariffs, remain a consideration. Yet, Ives found reassurance in diplomatic channels, specifically mentioning Tesla Inc CEO Elon Musk‘s involvement in negotiations, which he believes will help mitigate potential challenges.

Nvidia reported third-quarter revenue of $35.1 billion, a 94% increase year-over-year, significantly exceeding Street consensus estimates of $33.12 billion. The company delivered earnings per share of 81 cents, beating analyst expectations of 75 cents.

Prior to Nvidia’s third-quarter earnings, Ives told CNBC that the company’s pathway to a $4 trillion valuation “begins today” with a “drop the mic performance.” He emphasized Nvidia’s unparalleled market dominance, stating they are “the only game in town” in AI chip development.

The company’s Blackwell product line, which Ives highlighted as critical, is now in full production.

Why It Matters: The analyst’s commentary went beyond dry financial analysis, sprinkled with his trademark flair. In a moment that captured both his tech insight and unexpected humor, Ives even ventured into fashion advice for President-elect Donald Trump.

The earnings report marks Nvidia’s ninth consecutive quarter beating revenue estimates and eighth straight quarter exceeding earnings per share expectations.

Price Action: Nvidia’s stock closed at $145.89 on Wednesday, down 0.76% for the day. In after-hours trading, the stock dipped further by 2.53%. Year to date, Nvidia’s stock has surged 202.86%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.