This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
The market is worried about the legacy business, and is not capturing the strong momentum in their execution into a stickier higher value add business
Market expectations are for Uniform ROA expansion, but management is concerned about debt maturities, resident retention, and prelease rates
Higher highs and higher lows, fundamentally and technically
Market technicians have many metrics they look at when observing the charts. One trusty tool that many come back to is looking for charts with consistent higher highs and higher lows in stock price. This indicates positive momentum and is a favorable set-up.
Highlighted Top Ideas
CVI – CVR Energy, Inc.
RIG – Transocean Ltd.
X – United States Steel Corporation
Other Recent Analyses
R – Ryder System, Inc.
FCX – Freeport-McMoRan Inc.
Broadcom Inc. (AVGO:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.2x Uniform P/E, implying bearish expectations for the firm. Moreover, they may be concerned about their current business model, wireless products segment, and volatility in broadband products
Each week the Valens Securities team highlights our most interesting insights from across our tools and our analysis, including individual company industry and macro insights
Top Highlight: Sanofi
Other Highlights: AGN, EXPE, NVDA Other Recent Analyses: ABT, AMGN, BSX, CVI, FCX, FOXA, GM, MEG:CAN, MRK, NESN:CHE, PYPL, R, RIG, TMUS, UNP
Royal Caribbean Cruises Ltd (RCL:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 17.9x Uniform P/E. At these levels, markets are pricing in bearish expectations for the firm, but management is confident in tailwinds across the industry and overall performance
Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals.
This week, we focus on Lam Research Corporation (LRCX), AMAG Pharmaceuticals, Inc. (AMAG), SBA Communications Corporation (SBAC)
Sanofi (SAN:FRA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, however, management is confident in their price limiting strategy and growth in emerging markets
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
Management’s success in operating their core business, intelligent acquisitions to drive growth, low market expectations and growing management confidence in their outlook are a diagnosis for equity upside
Allergan plc (AGN:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with an 8.3x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their R&D productivity and market positioning
Highlighted Top Ideas
DLX – Deluxe Corporation
HL – Hecla Mining Company
MTOR – Meritor, Inc.
Other Recent Analyses
AMD – Advanced Micro Devices, Inc.
NVIDIA Corporation (NVDA:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 29.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, however management has concerns about demand and performance sustainability
Expedia, Inc. (EXPE:USA) currently trades at historical lows relative to UAFRS-based (Uniform) Earnings, with a 3.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident in property density and repeat rates, search channels, and pricing
Each week the Valens Securities team highlights our most interesting insights from across our tools and our analysis, including individual company industry and macro insights
Top Highlight: Meritor, Inc.
Other Highlights: DGE:GBR, HD, MCD Other Recent Analyses: ASML:NLD, CAT, DLX, GE, HL, LMT, NOVN:CHE, TMO, TXN, UTX, X
Twenty-First Century Fox, Inc. (FOXA:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.5x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their Television segment and their ability to sustain strong financial performance
Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals.
This week, we focus on Square, Inc. (SQ), Yelp, Inc (YELP), Altria Group, Inc. (MO)
Caterpillar Inc. (CAT:USA) currently trades at recent lows relative to UAFRS-based (Uniform) Earnings, with a 19.7x Uniform P/E. Even at these levels, the market has bullish expectations for the firm, and management is confident about top-line growth, profitability and shareholder returns
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
Cirrus’ strong management alignment, favorable fundamentals, smart strategic decisions, and growing management optimism are inconsistent with pessimistic market valuations, pointing to equity upside
Meritor, Inc. (MTOR:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.0x Uniform P/E. At these levels, market expectations are for declining Uniform ROA however, management is confident in their ability to sustain escalating revenue in their key inventory banks, and in their new contract with BMC
