Search Coverage List, Models & Reports
Search Results1-10 out of 376
Key to our overall positive market outlook has been that fiscal stimulus (mostly tax) in 2018 and 2019 will continue to be supportive of U.S. consumer spending. Recently, there’s been considerable confusion and debate over the impact of the Tax Cuts and Jobs Act (TCJA) on tax refunds given significant changes in the tax code, including limitations for state and local tax deductions (SALT). Inside, we summarize our detailed work on the tax refund cycle, the expected impact on the consumer, and our take on the impact of tax under/over withholdings. We also have a Tax Refund Sensitivity Model available for download
Last week, the SPX closed up 4.9% into more dovish comments from Chairman Powell and anticipation of positive news flow from the G20 meeting. Over the weekend, the U.S. and China agreed to a three-month truce on new tariffs. The combination of the Fed's more dovish tone and perceived progress on trade should be a near-term tailwind as investor attention shifts to performance chasing. As such, we expect the market to trade up an additional 3- 5% into year- end lead by growth/momentum names. Looking out over the intermediate term, with the Fed becoming more data dependent, and with trade issues still unresolved, we expect additional bouts of volatility. As such, we expect investment themes centered around cash deployment to outperform the market in the months ahead.
United Technologies (UTX) announced it will separate into three independent companies: United Technologies, Otis Elevator Company and Carrier. The spin-offs of Otis and Carrier are expected to be completed in 2020.
We believe that the two most important market catalysts in the quarters ahead will be (1) whether or not the U.S. and China reach a trade agreement; and (2) whether interest rates rise at a faster pace than is warranted by the global growth outlook. While downside risks have clearly risen, we remain constructive about the ultimate outcomes of both events. In this note, we review ten key charts that we’ll be closely monitoring to see if our optimism remains warranted.
Increasingly, over the past year, we’ve been focused at identifying potential short stock ideas/avoiding stock blow-ups. To that end, this report marks the start of separately publishing our monthly short screens as well as providing updates on existing ideas we’ve highlighted in the past.
We primarily attribute the recent selloff to rising risk aversion, which was exacerbated by a number of negative company-specific headlines last week. As discussed in this note, while U.S. growth is poised to decelerate from a robust pace, underlying economic and earnings fundamentals appear intact. If we’re correct and S&P 500 Operating EPS continues to grow in the high single digits, valuations should rebound as well.
EQT Corporation (EQT) completed the spin-off of Equitrans Midstream Corporation (ETRN). The spinoff will result in the third-largest U.S. natural gas gathering company. EQT will retain 19.9% of the outstanding stock of ETRN.
Our quarterly earnings quality (EQ) score is an objective way to identify potential accounting related short ideas and as a risk tool to avoid potential blow-ups in the portfolio. Our EQ Score uses seven financial ratios along with sentiment and valuation metrics to find potential underperforming stocks. The EQ Score ranges from a minimum of 0 (lowest quality) to a maximum of 100, and we rank companies within each sector on a relative basis, using ‘Q3 2018 reported financial information. This analysis covers ~2,000 companies, representing Russell 3000 companies with market cap’s over $250 million, excluding the FIN sector. See inside for details.
. We are including a screen of stocks that have underperformed since October 2nd, which can be fertile ground to find attractive companies that may have been excessively punished despite no material change to their underlying fundamentals.
- 1 of 38
- next →