GRNJ Fundstrat Granny Shots US Small - & Mid-Cap ETF

Fundstrat Granny Shots US Small - & Mid-Cap ETF (GRNJ) currently reports 60 stock positions (subject to change), placing it in the selectively diversified range by holdings breadth. The top line-up is DINO (2.47%), UTHR (2.44%), LITE (2.17%), with DINO as the largest single weight at 2.47%. Together, the top three holdings account for 7.08%, which points to a relatively flat weight distribution where no single cluster of names dominates outcomes. The weight distribution suggests a portfolio designed to capture thematic upside while avoiding excessive dependence on any single name outside the largest positions.

Assessing the quality of returns on invested capital, ROIC is 31.35%, WACC is 10.57%, and the economic spread is 20.77%. On balance, the portfolio's businesses are clearing their capital cost hurdle with room to spare. Supporting metrics show ROE at 12.68% and ROA at 12.79%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio with credible compounding capacity if current operating execution persists.

The market currently prices the portfolio at trailing P/E of 23.88, forward P/E of 19.92, PEG of 1.54. The gap between P/E and forward P/E is small, suggesting the valuation is not contingent on a near-term earnings step-change. The PEG ratio is consistent with a portfolio that is reasonably valued on a growth basis — not cheap, but not obviously expensive either. At 3.42, the aggregate current ratio reflects strong balance sheet liquidity across the portfolio. Valuation and liquidity together frame a portfolio where the price paid today is a reasonable bet on earnings delivery — but not a margin-of-safety purchase at current levels.

Looking at margins from gross to free cash flow, gross margin sits at 42.68%, operating margin at 2.77%, and free cash flow margin at 16.15%. Gross margins are constructive — not exceptional, but indicative of businesses with reasonable unit economics. Near-zero or negative operating margins point to holdings where growth investment is currently prioritized over near-term profitability. The portfolio's cash conversion is solid — a sign that operating profits are translating into real liquidity at the fund level. Together, these margins describe a portfolio where business quality varies — and where macro or sector headwinds could disproportionately impact the weaker-margin holdings.

Projected 12-month EPS growth of 19.9% adds a powerful forward signal — analyst consensus expects earnings to accelerate materially, which, if delivered, could make current multiples look increasingly modest. Turning to growth and analyst expectations, TTM revenue growth of 33.02% pointing to sustained and broad-based revenue growth within the basket, while the estimated 12-month price change of 21.99%, where target prices point to mid-range appreciation potential from current levels. The distinction matters: revenue growth tells you what the businesses are doing, price targets tell you what analysts think the market will pay for it. Ultimately, the alignment between revenue momentum and analyst targets will depend on execution quality and the broader rate and sentiment environment. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The quantitative profile, taken as a whole, is above average on virtually every dimension that matters for long-term return generation.

The views expressed above are derived from quantitative data only and should not be relied upon as financial advice. Investment decisions should be based on your own research and risk tolerance.