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. Company Specific Highlights & Insights...
Read MoreThe Latest from
-
July 23, 2020
- With The Market Re-testing June Highs, Last Month’s Playbook Remains Unchanged. Earnings growth and investment are likely to recover quickly from the recession, due to a need to invest, and management teams’ growing confidence and lack of concern about structural issues. Fundamentals should bounce back rapidly, but after the recent rally, equity markets are pricing in a well-executed recovery, capping upside
- The coronavirus pandemic has pushed the world into a short-term recession, but thanks to credit fundamentals, it’s likely not to be a protracted deep recession or long recovery. Favorable bank, corporate, and consumer credit fundamentals heading into this disruption still point to optimism for a strong recovery
- Sentiment indicators have become excessively positive. After the impressive rally since March, investors have become overly reward-focused, and are not prepared for any negative news in the near term. Investors should remain patient as Q2 earnings and negative headlines are offering reason for investors to become more risk-focused. With valuations capping upside but elevated headline risk, near term market downside may be probable, though the drop is capped by a lack of credit overhangs...
-
July 22, 2020
Highlighted Top Ideas: BHC – Bausch Health Companies Inc., BSX – Boston Scientific Corporation, DOOR – Masonite International Corporation...
Read More -
July 22, 2020
CDS 450bps, Base Case iCDS 113bps
Negative Case iCDS 174bps, 2024 5.875% Bond YTW of 5.674%
iYTW of 1.414%, Ba3 Rating from Moody’s, XO (equivalent to Baa3) Rating from Valens
High Refinancing Need...
Read More -
July 22, 2020
Snap Inc. (SNAP:USA) currently trades near historical highs relative to Uniform assets, with a 12.9x Uniform P/B. At these levels, markets have bullish expectations for the firm...
Read More -
July 21, 2020
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: WGO – Winnebago Industries, Inc. Other Highlights: BYND, SQ, WDC...
Read More -
July 21, 2020
Korn Ferry (KFY:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.3x Uniform P/E, implying bearish expectations for the firm...
Read More -
July 20, 2020
Beyond Meat, Inc. (BYND:USA) currently trades at a historical high relative to UAFRS-based (Uniform) assets, with a 27.4x Uniform P/B and a 1.6x Uniform asset turnover...
Read More -
July 17, 2020
Winnebago Industries, Inc. (WGO:USA) currently trades below corporate averages relative to Uniform earnings, with a 17.7x Uniform P/E. At these levels...
Read More -
July 16, 2020
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. Company Specific Highlights & Insights...
Read More -
July 16, 2020
Copart, Inc. (CPRT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 32.3x Uniform P/E and a 26.1% Uniform ROA....
Read More