New research from Nvidia proves that small language models (SLM) outperform large language models (LLM), like ChatGPT and Copilot, in real-world applications. This should not be news to our readers because you’ve seen the Robo-Analyst in action, and our Robo-Analyst is a small language model.

You’ve seen first-hand how our proven-superior data and analytics deliver superior stock picks.

When you ask the LLM-driven AIs, like Chat GPT, how to find the best stocks, the answers return the most popular names in the market like TSLA, NVIDIA, APPL. Not a lot of value in those answers compared to what we deliver.  

For example, our Long Idea this week features a company with industry leading-market share and profitability, sales growth across all segments, and, best of all, an undervalued stock price.

Below, we present a large excerpt from our latest Long Idea report published this week, available to Pro and Institutional members. You can buy the full report a la carte here.

We’re not giving you the ticker for this pick, but we are happy to share our hard work because we want you to see how good our research is.

This stock offers favorable Risk/Reward based on the company’s:

  • market leadership,
  • highly differentiated media brands,
  • expanding digital/streaming distribution,
  • growing revenue and top-tier profits,
  • quality shareholder return, and
  • cheap stock valuation.

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Two Growing Businesses

This company operates two main segments: cable network programming and television.

Cable network programming refers to the production and licensing of news and sports content for distribution through traditional cable TV systems, direct broadcast satellite operators, telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms.

The company’s cable network programming segment revenue grew from $5.0 billion in fiscal 2018 (earliest available date) to $6.9 billion in fiscal 2025, or 5% compounded annually.

Television refers to the production, acquisition, marketing, and distribution of programming through the company’s broadcast network, and operation of full power broadcast television stations, including duopolies and other digital platforms. The company’s television segment revenue grew from $5.1 billion in fiscal 2018 to $9.3 billion in fiscal 2025, or 9% compounded annually. See Figure 1.

Figure 1: Operating Segment Revenue: Fiscal 2018 – Fiscal 2025

Sources: New Constructs, LLC and company filings

Quality Shareholder Return

Since fiscal 2020, this company has paid $1.8 billion (7% of market cap) in cumulative dividends and has increased its semi-annual dividend from $0.23/share in calendar 1Q20 to $0.28/share in calendar 3Q25. The company’s current dividend, when annualized, provides a 0.9% yield.

This company also returns capital to shareholders through share repurchases. From fiscal 2020 through fiscal 2025, the company repurchased $6.6 billion (25% of market cap) of shares.

In August 2025, the Board of Directors approved a new authorization to repurchase up to $5 billion of shares, with no specified expiration date. The company’s total stock repurchase authorization is now $12 billion. Should the company repurchase shares at its fiscal 2025 rate, it would repurchase $1 billion of shares over the next twelve months, which equals 3.8% of the current market cap.

When combined, the dividend and share repurchase yield could reach 4.7%.

Strong Cash Flow Generation Supports Capital Return

Investors can take comfort in knowing this company can afford to continue to pay its dividends and repurchase shares based on its large free cash flow (FCF). Per Figure 2, From fiscal 2020 through fiscal 2025, the company generated $10.6 billion in FCF, which equals 37% of the company’s enterprise value.

The company’s $10.6 billion in FCF since fiscal 2020 is more than enough to cover its $8.4 billion in combined dividend payments ($1.8 billion) and share repurchases ($6.6 billion).

Figure 2: Cumulative FCF: Fiscal 2020 – Fiscal 2025

Sources: New Constructs, LLC and company filings

The company’s repurchases have also meaningfully reduced its shares outstanding from 613 million in fiscal 2020 to 455 million in fiscal 2025. See Figure 3.

We like companies that choose to return capital to shareholders instead of spending it on costly acquisitions or executive bonuses that rarely drive shareholder value creation. Companies that sport strong enough cash flows to consistently lower their shares outstanding, like this company, offer excellent value.

Figure 3: Shares Outstanding: Fiscal 2020 – Fiscal 2025

Sources: New Constructs, LLC and company filings

…there’s much more in the full report. You can buy the report a la carte here.

Or, become a Professional or Institutional member – they get all Long Idea reports.

I’ll keep sending information on quality sectors, industries, or specific companies until you’re ready to start your membership, but know that we expect this pick to outperform.

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