March 6, 2026

In the Loop – March 6, 2026

“In The Loop” is designed to give you a short update reflecting major developments, earnings, and investment trends across some core Equity Income and Growth holdings. All clients should be aware that individual buy/sell recommendations will be conveyed directly to you on an individual basis. Have a great weekend.

“In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”

- Benjamin Graham

Daily price fluctuations are a result of the “voting machine” side of the market. It’s short-term noise. However, in the long run, great businesses with shareholder friendly management are very likely to compound wealth for shareholders. That’s the “weighing machine” aspect of the market. And that’s where it pays for investors to focus. And yes, I have used this quote before during volatile markets.

Iran Update

I could write this entire email updating you on the War in Iran. However, I would run the risk that by the time you read it, it would be old news. I should stay in my own lane, but I can’t help it. From people I respect, the war will be over in Days or Weeks rather than Months, the New Regime will look and feel a lot like the Old Regime without nuclear capabilities, a stockpile of missiles or a Navy. “Much Weaker”. Trump will make a business deal. Russia will be cut off from Iranian missiles, and the largest strikes may be this weekend. Back to my lane, a pain point for the Global Markets would be the increase in Oil and Natural Gas prices. The 24 Month Moving Average for Oil (WTI) is $63-$64. According to our research affiliate Evercore ISI: Dating back to 1985, When WTI trades 35-50% above its 24MMA ($93-$97), forward equity returns generally turn negative; at 10-20% above the 24MMA, returns compress but remain positive. Higher energy costs raise prices, which can be inflationary, which would put pressure on the Federal Reserve to maintain higher interest rates at a time when the markets are forecasting a decline in rates. A shift in this forecast could cause markets to re-price lower. What to watch: The Strait of Hormuz and the Suez Canal need to remain open. Qatar needs to keep distributing Nat Gas across Europe. As disturbing as the headlines about War read, from a market standpoint, I’m viewing it as short-term noise. I do not think this will be a permanent problem. Pray for Our Troops, Pray for Peace.

Old Updates/ Same Message

October 2025 was the first time we started writing about how the economy was moving from a Post-War Economy to a Pre-War Economy. At the time we described it as: Pre-War Economy means that the U.S. will focus more on producing and refining things critical to modern day life: Semiconductors, AI, Pharma, Electricity and All types of energy that produce electricity. Therefore, today is not causing us to immediately react, we have been positioning for months and will continue this long-cycle investment theme. We changed the name to US Resiliency for a softer, more positive tone. Same investment theory.

Growth to Value, Back to Growth

To date, 2026 has marked the shift from growth to value where growth stock P/E multiples have compressed from 35X to 25X and Value stock P/E multiples have risen from 12X to 16X. All with the S&P 500 Index remaining relatively flat. This is the market shifting from Growth at any price to Cash-Flow at a reasonable price. The last time many of us witnessed this shift was back in the year 1999-2000. This was not a comfortable period. However, let’s be clear, We do not think this is a year 1999-2000 repeat. Our approach at this moment is a Barbell Approach. Own the best companies within different sectors- some will be considered Growth and some will be considered Value. Rather than a repeat of 1999-2000, we think it could look like 1998 or 2023-2024. Growth Reemerges. A few reasons why: We think interest rates will drop not rise later this year, AI will continue to power US Productivity, massive capital investment cycle, balance sheets are much stronger now than at any other period, and lastly Earnings are still growing. Yes, Higher Interest Rates or a Weak Macro Environment could change this narrative. Our hedge is the “Barbell Approach”.

On This Day

Today Alan Greenspan turned 100 years old. Happy Birthday, Alan! I will finish with a Classic Greenspan quote, “I guess I should warn you, if I turn out to be particularly clear you’ve probably misunderstood what I’ve said.”

Individual Company Updates

Palantir Technologies (PLTR)

Palantir continues to demonstrate strong momentum as enterprise and government demand for artificial intelligence platforms accelerates. The company reported another strong quarter with revenue growth driven by expanding adoption of its Artificial Intelligence Platform (AIP), which is being deployed across defense, healthcare, and commercial enterprises seeking to integrate AI into real-time decision systems. U.S. commercial revenue has been a standout driver as companies increasingly use Palantir’s software to operationalize large language models and data analytics within their workflows. Government demand also remains robust as defense agencies expand AI-enabled battlefield and intelligence capabilities. With rising customer counts, expanding deal sizes, and increasing operating leverage, Palantir continues to position itself as a key software layer powering the global AI adoption cycle.

Broadcom (AVGO)

Broadcom remains one of the largest beneficiaries of the AI infrastructure buildout as hyperscale data centers continue to expand capacity. The company reported strong results driven by accelerating demand for custom AI accelerators, networking silicon, and data-center connectivity solutions used by major cloud providers. In addition, Broadcom’s infrastructure software segment continues to contribute stable recurring revenue following the integration of VMware. Management highlighted strong visibility into future growth as hyperscalers increase spending on custom silicon and high-performance networking to support AI workloads. With a diversified portfolio spanning semiconductors, networking, and enterprise software, Broadcom is positioned to capture a significant share of the global AI capital-expenditure cycle.

Vertex Pharmaceuticals (VRTX)

Vertex Pharmaceuticals continues to deliver strong growth driven by its leadership in cystic fibrosis treatments and the expansion of its pipeline into new therapeutic areas. The company’s CF franchise remains highly profitable and provides significant cash flow to fund research and development. Vertex is also advancing several important pipeline opportunities, including gene-editing therapies developed with CRISPR technology and potential treatments in pain management and rare diseases. These new programs could significantly diversify revenue over the next decade while reinforcing the company’s position as one of the most innovative biotechnology firms in the industry.

Caterpillar (CAT)

Caterpillar continues to benefit from strong global demand for infrastructure, mining equipment, and power solutions. The company reported record sales in 2025 as construction activity, energy infrastructure investment, and mining demand supported equipment orders and aftermarket service revenue. Power systems and energy applications have also emerged as key growth drivers as demand for turbines and generators increases to support expanding electricity needs from data centers and industrial facilities. With a large installed equipment base generating recurring service revenue and strong backlog visibility, Caterpillar remains well positioned to benefit from the global infrastructure and energy investment cycle.

Sterling Infrastructure (STRL)

Sterling Infrastructure delivered exceptional Q4 and full-year 2025 results, driven by accelerating demand for mission-critical infrastructure projects. Fourth-quarter revenue surged 69% year-over-year to $755.6 million while adjusted EPS jumped 78% to a record $3.08, supported by expanding margins and strong project execution. Full-year revenue grew 32% to $2.49 billion and adjusted EPS climbed 53% to $10.88, marking the company’s fifth consecutive year of 35%+ EPS growth. Data-center construction remains the key driver, with the E-Infrastructure segment expanding rapidly and total backlog reaching $3 billion. Looking ahead, Sterling expects revenue of $3.05–3.2 billion and EPS of roughly $13.45–14.05 in 2026, reflecting continued strong demand from data centers, semiconductor facilities, and other high-growth infrastructure projects.

EMCOR Group (EME)

EMCOR delivered another record-setting quarter and full-year performance, highlighting strong demand for electrical, mechanical, and data-center infrastructure services. Q4 revenue increased nearly 20% year-over-year to $4.51 billion, while adjusted EPS rose 13.8% to $7.19 and operating income surged almost 48%. For full-year 2025, revenue reached a record $16.99 billion and adjusted EPS grew more than 20% to $25.87, supported by expanding margins and strong project execution. Remaining performance obligations climbed to $13.25 billion, providing multi-year visibility across key sectors including network communications and large commercial projects. Management expects continued growth in 2026 with revenue projected between $17.75–18.5 billion and EPS of $27.25–29.25.

MasTec (MTZ)

MasTec reported blowout Q4 and full-year 2025 results, driven by strong demand across energy, infrastructure, and data-center construction. Fourth-quarter revenue increased 16% to a record $3.94 billion while adjusted EPS surged 44% to $2.07. For the full year, revenue climbed to $14.3 billion (+16%) and adjusted EPS jumped 66% to $6.55, supported by record adjusted EBITDA of $1.15 billion. The company finished the year with a record $19 billion backlog, reflecting strong demand across all operating segments including nearly $1 billion of new data-center work awarded in the quarter. Management expects continued momentum in 2026 with revenue guidance of roughly $17 billion and adjusted EPS of about $8.40 as infrastructure, renewable energy, and data-center investment continues to expand.

Pfizer (PFE)

Pfizer continues to expand its post-COVID growth pipeline through new drug development and strategic partnerships. The company recently began Phase 1 trials for a new obesity treatment candidate while also signing a commercialization agreement with China-based Sciwind Biosciences for ecnoglutide, a next-generation GLP-1 therapy aimed at the rapidly growing Chinese obesity and diabetes markets. Pfizer is also advancing its mRNA vaccine platform with a new Phase 2 flu vaccine study and recently received full FDA approval for its BRAFTOVI combination therapy for metastatic colorectal cancer. Reflecting growing confidence in its pipeline and new product launches, Argus Research recently upgraded the stock to Buy with a $35 price target.

CrowdStrike (CRWD)

CrowdStrike delivered another strong quarter, reinforcing its leadership position in cybersecurity and the growing importance of AI-driven security platforms. Fiscal Q4 revenue rose 23% year-over-year to $1.31 billion, while annual recurring revenue reached $5.25 billion after adding $331 million in net new ARR during the quarter. Free cash flow remained robust at $376 million for the quarter and $1.24 billion for the full year. Adoption of the Falcon Flex platform continues to accelerate, while key growth areas such as cloud security, next-generation SIEM, and identity protection all reported strong ARR expansion. However, despite solid fundamentals, the stock has declined roughly 30% from its peak as investors reassess valuations amid broader market volatility. While long-term demand for cybersecurity remains strong—particularly as AI expands the global attack surface—we are monitoring the stock closely before making any portfolio adjustments.

We remain focused on navigating market trends and positioning portfolios for long-term growth and resilience.
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Formidable Asset Management (“Massey Romans Capital”) is an investment adviser registered under the Investment Advisers Act of 1940. The information presented in the material is general in nature and is not designed to address your investment objectives, financial situation or particular needs. Prior to making any investment decision, you should assess, or seek advice from a professional regarding whether any particular transaction is relevant or appropriate to your individual circumstances. Although taken from reliable sources, the Firm cannot guarantee the accuracy of the information received from third parties.

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