3 Places To Profit (That Are NOT Tech!)

The article highlights a market rotation from technology stocks to laggards, occurring amidst record US corporate stock buybacks totaling $983.6 billion year-to-date and sustained foreign capital inflows into US assets. Against this backdrop, MoneyShow experts discuss 2025 market drivers including monetary policy and AI, while recommending the Tweedy, Browne Insider and Value ETF (COPY) for its focus on value, small-cap, and share repurchases. Additionally, Primerica (PRI) is presented as a buy, reporting robust Q2 results with adjusted operating revenue up 7.4% to $796 million and adjusted EPS up 10.3% to $5.46, supported by a 15.6% 10-year EPS CAGR and a conservative dividend payout.

Analysis

The market is undergoing a significant rotation from technology stocks into previous laggards, supported by powerful underlying capital flows. US corporations have announced a record $983.6 billion in stock buybacks year-to-date, with the 20 largest companies driving nearly half this volume. Simultaneously, foreign capital continues to favor US assets, with inflows reaching nearly $2 trillion in 2023 and foreign ownership accounting for 25% of outstanding government bonds and 20% of the stock market. In this environment, the Tweedy, Browne Insider and Value ETF (COPY) is highlighted as a vehicle targeting this shift, focusing on undervalued small-cap and international stocks with low price-to-book multiples, active share repurchases, and above-average dividend yields. Separately, Primerica Inc. (PRI) is presented as a specific buying opportunity, having demonstrated strong fundamentals with a 15.6% compound annual EPS growth rate over the past decade. The company's recent Q2 results affirm this momentum, with adjusted operating revenue growing 7.4% year-over-year to $796 million and adjusted EPS rising 10.3% to $5.46, beating analyst consensus. Future growth is projected at 10% annually, underpinned by an expanding sales force, continued share repurchases, and a conservative dividend payout ratio of just 20%.

Key Decisions for Investors

• Consider reallocating capital from over-extended technology positions to value-oriented and small/mid-cap segments to align with the current market rotation.
• For diversified exposure to this value theme, evaluate the Tweedy, Browne Insider and Value ETF (COPY), which specifically targets companies with low valuation multiples and shareholder-friendly capital return policies.
• Investors seeking single-stock opportunities may find Primerica (PRI) compelling due to its consistent double-digit EPS growth, strong Q2 earnings beat, and a management forecast for 10% annual growth driven by buybacks.
• Monitor the sustainability of the two key market supports identified: the pace of corporate share repurchases and the volume of foreign capital inflows into U.S. assets.