Morning Quant Ride Jan 31, 2018

Jan 31, 2018

Traders’ Corner

In overnight trading, Asian markets were mixed with not all markets following the profit taking in the US.  China was lower with weaker manufacturing PMI weighing on the market,  In Japan, industrial production came stronger than expected-its 7th straight quarterly gain-though markets shrugged and closed lower.  European markets were mixed at the midday check with corporate results coming both above and below expectations.  Markets were off their earlier highs.

In the US markets have taken 2 days of profits, a healthy move when looking at the last 6 months of performance.  An attractive entry point has potentially appeared.  Markets today are digesting President Trump’s state of the union address.  Early results this morning from Boeing coming well above expectations have set an positive tone.

US Equity futures are pointing to a positive open in NY this morning, following a two-day slide. Over the past two days the S&P 500 is down 1.75% and the Russell 2000 is down 1.57%. US Consumer & US Industrial stocks should begin to reflect speculation surrounding the US government infrastructure package.

A few of our favorite A-rated Industrial stocks also underperformed yesterday. We encourage investors to take a deeper look at these A-rated Industrial companies:

QuantShot: Cummins – 3.57% off its 52wkH, reports earnings on February 6th

QuantShot: FedEx – 4.81% off its 52wkH, reports earnings on March 20th

QuantShot: Honeywell International – 3.73% off its 52wkH

Paccar – 4.96% off its 52wkH

QuantShot: Stanley Black & Decker – 5.81% off its 52wkHHealthCare stocks, on the whole, underperformed yesterday following news about the Amazon/Berkshire Hathaway/JP Morgan joint healthcare initiative. Large-cap healthcare stocks finished down 2.13% while the S&P500 was down 1.09%. This morning, we are following a few of our A-Rated HealthCare stocks as potential buying opportunities:

QuantShot: AbbVie - 7.93 off its 52wkH

Cigna – 8.47% off its 52wkH, reports earnings on February 1st

QuantShot: UnitedHealth Group  5.64% off its 52wkHSemiconductors lagged the general market yesterday again, with the Semiconductor ETF (SOXX) down over 2%. We are continuing to watch these semiconductor stocks:

QuantShot: Advanced Energy Industries – 23.95% off its 52wkH

QuantShot: Applied Materials – 12.33% off its 52wkH, reports earnings on February 14th

QuantShot: Lam Research – 13.03% off its 52wkH

QuantShot: Micron Technology – 16.48% off its 52wkH, reports earnings on March 22ndInvestors should also keep an eye on these A-rated Consumer, Tech and China underperformers from yesterday's market action:

QuantShot: Darden Restaurants – 3.57% off its 52wkH, reports earnings on March 23rd

Dolby Laboratories – 12.91% off its 52wkH

QuantShot: Home Depot – 2.79% off its 52wkH, reports earnings on February 20th

Ollie's Bargain Outlet – 4.70% off its 52wkH

PetMed Express – 19.17% off its 52wkH

QuantShot: Weibo – 5.58% off its 52wkH, reports earnings on March 13th

YY – 7.27% off its 52wkH, reports earnings on March 8th

Our Top Picks in the News

Click headline for story

Apple (AAPL)

Apple: There Goes Your ‘Super Cycle’ Hope (Barron’s)
Is now the time to buy Apple inc. after its recent dip? (Bay Street)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

See more on our Apple QuantShot company report from January 5th

UnitedHealth Group (UNH)

Dow Tumbles 190 Points as Amazon Health Plans Slam UnitedHealth (Barron’s)
UniteHealth, other MCOs should be bought on weakness, says Leerink (The Fly)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Large Cap report

See more on our UnitedHealth QuantShot company report from January 23rd   

Lam Research (LRCX)

Lam Research Is Slowing Down but The Shares Are Still Attractive (Seeking Alpha)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

See more on our Lam QuantShot company report from January 17th

Boeing (BA)

Boeing Crushes Q4 Earnings Forecast, Gives strong Guidance (Investor's Business Daily News)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

See more on our Boeing company report from January 22nd

Western Digitial (WDC), Lam Research (LRCX)

Invest in Bull Market with 5 Valuable Price-to-Book Stocks (Zacks) 

Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

See more on our Lam QuantShot company report from January 17th

See more on our Western Digital company report from January 19th

Facebook (FB)

One Key Earnings Figure to watch in Facebook's Q4 Report (Zacks)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

See more on our Facebook QuantShot company report from January 10th

Global Indices

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500

$ 2,822.43

0.00%

0.51%

6.73%

6.73%

Russell 2000

$ 1,582.82

0.00%

-0.78%

4.08%

4.08%

DJ Industrial Average

$ 26,076.89

0.00%

0.87%

6.96%

6.96%

NASDAQ Composite Index

$ 7,402.48

0.00%

0.08%

8.16%

8.16%

CBOE Market Volatility Index

14.26

-

-

-

-

Germany DAX (TR)

€ 13,231.03

0.25%

-1.73%

2.65%

3.15%

France CAC 40

€ 5,496.46

0.41%

-0.25%

3.55%

3.93%

Japan Nikkei 225

¥ 23,098.29

-0.83%

-2.05%

2.32%

3.80%

Hang Seng Index

¥ 32,887.27

0.86%

0.11%

8.98%

10.19%

Hang Seng China Enterprises

¥ 13,561.65

1.29%

1.25%

14.35%

16.66%

S&P ASX 200

AUD 6,037.70

0.25%

0.64%

-0.70%

0.17%

Source: FactSet          

Large Cap Conviction Buy Movers

Large Cap A Winners Ticker Sector Industry

1 Day Return

5 Day Return

YTD

IDEX CORP IEX Industrials Machinery

2.69%

2.16%

6.58%

SS&C TECHNOLOGIES HLDGS INC SSNC Information Technology Software

1.34%

-2.28%

21.76%

LEAR CORP LEA Consumer Discretionary Auto Components

1.31%

3.54%

10.44%

NVR INC NVR Consumer Discretionary Household Durables

0.91%

-12.71%

-9.42%

MOTOROLA SOLUTIONS INC MSI Information Technology Communications Equipment

0.63%

2.50%

9.79%

Large Cap A Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

PRINCIPAL FINANCIAL GRP INC PFG Financials Insurance

-8.05%

1.28%

5.58%

CIGNA CORP CI Health Care Health Care Providers & Services

-7.15%

1.87%

10.25%

MAXIM INTEGRATED PRODUCTS MXIM Information Technology Semiconductors & Semiconductor Equipment

-6.88%

14.26%

26.76%

ABBVIE INC ABBV Health Care Biotechnology

-5.26%

16.07%

26.47%

WALGREENS BOOTS ALLIANCE INC WBA Consumer Staples Food & Staples Retailing

-5.16%

4.22%

10.53%

Source: FactSet            

Large Cap Conviction Short Movers

Large Cap F Winners Ticker Sector Industry

1 Day Return

5 Day Return

YTD

PARSLEY ENERGY INC PE Energy Oil, Gas & Consumable Fuels

-14.28%

-4.03%

-4.62%

AK STEEL HOLDING CORP AKS Materials Metals & Mining

-13.00%

0.16%

11.48%

GULFPORT ENERGY CORP GPOR Energy Oil, Gas & Consumable Fuels

-8.91%

-7.55%

-5.02%

BITCOIN INVESTMENT TRUST GBTC Undefined Undefined

-8.52%

5.39%

-13.60%

RITE AID CORP RAD Consumer Staples Food & Staples Retailing

-6.73%

-3.88%

13.20%

Large Cap F Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

WORKDAY INC WDAY Information Technology Software

3.21%

-0.59%

14.53%

DEXCOM INC DXCM Health Care Health Care Equipment & Supplies

2.90%

3.39%

0.44%

GOPRO INC GPRO Consumer Discretionary Household Durables

2.82%

-13.07%

-29.72%

UNITED CONTINENTAL HLDGS INC UAL Industrials Airlines

1.87%

-15.63%

-2.40%

BAKER HUGHES A GE CO BHGE Energy Energy Equipment & Services

1.46%

-12.34%

-0.76%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Date
Avery Dennison Corporation AVY 01/31/2018
Boeing Company BA 01/31/2018
Cadence Design Systems, Inc. CDNS 01/31/2018
Nasdaq, Inc. NDAQ 01/31/2018
Align Technology, Inc. ALGN 01/31/2018
SEI Investments Company SEIC 02/01/2018
Facebook, Inc. Class A FB 02/01/2018
Boston Scientific Corporation BSX 02/01/2018
IDEXX Laboratories, Inc. IDXX 02/01/2018
Ingredion Incorporated INGR 02/01/2018
Mastercard Incorporated Class A MA 02/01/2018
MKS Instruments, Inc. MKSI 02/01/2018
MSCI Inc. Class A MSCI 02/01/2018
Parker-Hannifin Corporation PH 02/01/2018
AMETEK, Inc. AME 02/01/2018
Xylem Inc. XYL 02/01/2018
Mid-America Apartment Communities, Inc. MAA 02/01/2018
Marsh & McLennan Companies, Inc. MMC 02/01/2018
Time Warner Inc. TWX 02/01/2018
Cigna Corporation CI 02/01/2018
C. R. Bard, Inc. BCR 02/01/2018
Edwards Lifesciences Corporation EW 02/02/2018
Roper Technologies, Inc. ROP 02/02/2018
Motorola Solutions, Inc. MSI 02/02/2018
Fortune Brands Home & Security, Inc. FBHS 02/02/2018
Spirit AeroSystems Holdings, Inc. Class A SPR 02/02/2018
Alphabet Inc. Class A GOOGL 02/02/2018
Estee Lauder Companies Inc. Class A EL 02/02/2018
Church & Dwight Co., Inc. CHD 02/05/2018

Line for QuantShots

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