Morning Quant Ride Jan 25, 2018

Jan 25, 2018

Traders’ Corner

 

Asian markets overnight were mostly lower.  Japan was lower as  yen strength induced stock selling.  The main concern of the region are trade comments from US officials, most recent being Secretary Mnuchin’s endorsement of a weak dollar.  Tariffs on Chinese goods earlier in the week preceded these comments, both have weighed heavily on the US dollar.  European stocks were mixed to lower, off their morning lows at the midday check.   The European Central Bank held rates steady as expected and markets yawned.  ECB President Mario Draghi will speak later in the day though little market moving news is expected.

US stocks again set records yesterday amid continued dollar weakness.   President Trump arrived in Davos to tout the US for trade while he intensifies protectionist policies.  Investors have so far not cared much, continuing to bid up stocks.

Last night, two of our A-rated stocks reported earnings ahead of expectations:

QuantShot: Lam Research – EPS beat by $0.66, Revenue beat by $10M

Las Vegas Sands – EPS beat by $0.11, Revenue beat by $170M

Yesterday, US semiconductor stocks lagged the general market with the Semiconductor ETF (SOXX) closing down 2.29% vs. -0.06% for the S&P500. Disappointing earnings results from Texas Instruments (TXN) and negative Consensus revisions for suppliers of Apple iPhone X weighed on semiconductor stocks.  However, following a strong, high-quality earnings beat from Lam Research (LRCX), semiconductor stocks should bounce back this morning.  With this in mind, we encourage our readers to focus on our other A-Rated Semiconductor stocks.

QuantShot: Applied Materials

QuantShot: Micron Technology

MKS Instruments

We released one QuantShot yesterday, see it below:

QuantShot: AbbVie

 

Our Top Picks in the News

 

Click headline for story

AbbVie (ABBV)

Is a Beat in the Cards for AbbVie (ABBV) in Q4 Earnings? (Zacks)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Large Cap report

 

See more on our AbbVie QuantShot company report from January 24th

Alibaba (BABA)

How Alibaba can combine the Best of Amazon, Microsoft and Apple (Barron's)

 

Top Conviction Buys in January, please see Quantamize Global Top Picks Investable China report

See more on our Alibaba QuantShot company report from December 5th

Applied Industrial Technologies (AIT)

Applied Industrial Technologies (AIT) Tops Q2 EPS by 8c, Beats on Revenues; Boosts FY18 EPS Guidance (Street Insider)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Industrials report

Boeing (BA)

The Boeing 787: A Dream Come True (Seeking Alpha)
Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Boeing QuantShot company report from January 22nd

Waste Management (WM)

Waste Management, Expertly Positioned For Tax Reform (Seeking Alpha)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Waste Management QuantShot company report from January 22nd

Las Vegas Sands (LVS)

Net Income more than doubles at Las Vegas Sands (Seeking Alpha)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Consumer Discretionary report

Lam Research (LRCX)

Lam Research +3.4% on Q2 beats, upside guidance (Seeking Alpha)
Lam Research price target raised to $261 from $225 at KeyBanc (TheFly)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Tech report

 

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

Stanley Black & Decker (SWK)

Stanley Black & Decker price target raised to $190 from $180 at JPMorgan
Top Conviction Buys in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Stanley Black and Decker QuantShot company report from January 11th

 

Global Indices

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500

$ 2,837.54

0.00%

1.41%

6.13%

6.13%

Russell 2000

$ 1,599.61

0.00%

1.45%

4.17%

4.17%

DJ Industrial Average

$ 26,252.12

0.00%

0.90%

6.20%

6.20%

NASDAQ Composite Index

$ 7,415.06

0.00%

1.63%

7.41%

7.41%

CBOE Market Volatility Index

11.43

-

-

-

-

Germany DAX (TR)

€ 13,430.48

0.12%

1.00%

3.99%

3.85%

France CAC 40

€ 5,518.61

0.43%

0.01%

3.44%

3.44%

Japan Nikkei 225

¥ 23,669.49

-1.13%

0.75%

3.97%

5.17%

Hang Seng Index

¥ 32,654.45

-0.92%

2.60%

9.14%

10.16%

Hang Seng China Enterprises

¥ 13,388.16

-1.71%

4.02%

14.34%

16.33%

S&P ASX 200

AUD 6,050.00

-0.08%

0.67%

-0.25%

-0.17%

Source: FactSet          

Large Cap Conviction Buy Movers

Large Cap A Winners Ticker Sector Industry

1 Day Return

5 Day Return

YTD

TOTAL SYSTEM SERVICES INC TSS Information Technology IT Services

4.00%

1.18%

6.11%

EDGEWELL PERSONAL CARE CO EPC Consumer Staples Personal Products

2.59%

-4.84%

-2.32%

LEAR CORP LEA Consumer Discretionary Auto Components

2.07%

-1.92%

6.67%

NATIONAL BEVERAGE CORP FIZZ Consumer Staples Beverages

1.80%

1.14%

9.04%

WATERS CORP WAT Health Care Life Sciences Tools & Services

1.57%

0.87%

9.21%

Large Cap A Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

MICROCHIP TECHNOLOGY INC MCHP Information Technology Semiconductors & Semiconductor Equipment

-3.21%

2.60%

12.11%

ADVANCED ENERGY INDS INC AEIS Information Technology Semiconductors & Semiconductor Equipment

-3.02%

2.79%

14.26%

MAXIM INTEGRATED PRODUCTS MXIM Information Technology Semiconductors & Semiconductor Equipment

-2.84%

4.07%

10.94%

LAM RESEARCH CORP LRCX Information Technology Semiconductors & Semiconductor Equipment

-2.48%

4.87%

16.84%

MKS INSTRUMENTS INC MKSI Information Technology Semiconductors & Semiconductor Equipment

-2.32%

4.36%

14.07%

Source: FactSet            

Large Cap Conviction Short Movers

Large Cap F Winners Ticker Sector Industry

1 Day Return

5 Day Return

YTD

PUMA BIOTECHNOLOGY INC PBYI Health Care Biotechnology

-28.82%

2.02%

-8.04%

UNITED CONTINENTAL HLDGS INC UAL Industrials Airlines

-11.44%

1.82%

15.68%

AMICUS THERAPEUTICS INC FOLD Health Care Biotechnology

-6.31%

8.49%

18.97%

BAKER HUGHES A GE CO BHGE Energy Energy Equipment & Services

-5.70%

-1.30%

13.21%

SOUTHWESTERN ENERGY CO SWN Energy Oil, Gas & Consumable Fuels

-4.33%

2.40%

-0.72%

Large Cap F Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

NAVIENT CORP NAVI Financials Consumer Finance

7.96%

-1.97%

0.90%

MEDICINES CO MDCO Health Care Pharmaceuticals

6.04%

20.10%

11.45%

BLUEBIRD BIO INC BLUE Health Care Biotechnology

3.62%

14.24%

12.41%

DEXCOM INC DXCM Health Care Health Care Equipment & Supplies

3.57%

-1.01%

-2.86%

IONIS PHARMACEUTICALS INC IONS Health Care Biotechnology

3.07%

0.41%

3.02%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Date
NVR, Inc. NVR 01/25/2018
McCormick & Company, Incorporated MKC 01/25/2018
Biogen Inc. BIIB 01/25/2018
Alliance Data Systems Corporation ADS 01/25/2018
Honeywell International Inc. HON 01/26/2018
Arthur J. Gallagher & Co. AJG 01/26/2018
KLA-Tencor Corporation KLAC 01/26/2018
Maxim Integrated Products, Inc. MXIM 01/26/2018
Lear Corporation LEA 01/26/2018
Intuitive Surgical, Inc. ISRG 01/26/2018
PerkinElmer, Inc. PKI 01/26/2018
AbbVie, Inc. ABBV 01/26/2018
Advanced Energy Industries, Inc. AEIS 01/29/2018
Dominion Energy Inc D 01/29/2018
IDEX Corporation IEX 01/30/2018
Principal Financial Group, Inc. PFG 01/30/2018
A. O. Smith Corporation AOS 01/30/2018
Amdocs Limited DOX 01/30/2018
Avery Dennison Corporation AVY 01/31/2018
Cadence Design Systems, Inc. CDNS 01/31/2018
Motorola Solutions, Inc. MSI 01/31/2018
Fortune Brands Home & Security, Inc. FBHS 01/31/2018
Edwards Lifesciences Corporation EW 01/31/2018
Nasdaq, Inc. NDAQ 01/31/2018
Boeing Company BA 01/31/2018
Align Technology, Inc. ALGN 01/31/2018

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