The SMID Point

The report provides a roundup of SMID-cap companies, highlighting cost-saving successes in the auto dealer sector and significant headwinds in the software sector due to AI-related demand shifts. It also flags a decline in the US personal savings rate to 2022 lows.

Key Takeaways

• 1.Group 1 Automotive (GPI) and Sonic Automotive (SAH) are utilizing cost reductions and share repurchases to maintain profitability despite industry headwinds.
• 2.ZoomInfo (GTM) has significantly cut its guidance due to a 'near-paralyzed' software buying environment and AI decision fatigue among customers.
• 3.Monday.com (MNDY) is seeing solid enterprise momentum with AI contributing roughly 10% of net new annual recurring revenue.

Table of Contents

• Company
• Group 1 Automotive (GPI.N) - Cost Actions Provide a Quick Response
• Monday. Com Ltd (MNDY.O) - 1Q26 Recap: Enterprise Momentum and Early AI Contribution
• Sonic Automotive (SAH.N) - Price Target Increased
• ZoomInfo Technologies (GTM.O) - Another Reset As SMB + AI Budgetary Weakness Hit
• Industry
• US Airlines - Chart of the Day: Premium Product Likely to Continue to Drive Supermajor Outperformance
• US Retailing – Broadlines and Hardlines – Two Charts – for – Tuesday: Consumers Are Saving Like it’s 2022
• Appendix A-1

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