VNOM

New Investment in Viper Energy: Guardian Wealth Management, Inc. disclosed a new position in Viper Energy worth approximately $5.12 million, representing 3.02% of the fund's assets under management as of September 30, 2025.

Performance Overview: Viper Energy has shown strong performance over the past decade, with a stock increase of 298% and a current dividend yield of 5.8%, making it attractive for income-oriented investors.

Business Model: The company operates on a royalty-based model, which allows it to generate steady cash flows while minimizing risks associated with direct oil and gas operations.

Market Context: Despite its strong historical performance, Viper Energy's stock has recently declined by 15.9% over the past year, underperforming the S&P 500 by 30.4 percentage points.

Market Rotation Insight: Goldman Sachs highlights a recurring trend where underperforming stocks from the previous year, termed "laggards," often outperform the S&P 500 in the first quarter of the new year, based on 23 years of market data.

2025 Laggards Performance: The current laggards for 2025 are showing significant underperformance, with an average decline of 19% and a 36% drop relative to the S&P 500, indicating a larger pool of beaten-down stocks than usual.

Potential Recovery Stocks: Goldman Sachs has identified several stocks, including Fortinet, Pool Corp., and Hormel Foods, that are considered mispriced and could lead a rally in early 2026, despite most analysts being neutral or bearish on them.

Caution on Predictions: While the laggard-to-leader strategy has historically shown promise, it is not guaranteed, and investors should remain cautious as January 2026 approaches, as it may bring unexpected movements from previously overlooked stocks.