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The Latest from
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January 28, 2021
Alliance Data Systems Corporation (ADS:USA) currently trades at a historical low relative to UAFRS-based (Uniform) earnings, with a 10.4x Uniform P/E. At these levels, the market has bearish expectations...
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January 27, 2021
Meritor, Inc. (MTOR:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 20.9x Uniform P/E. At these levels, the market has bullish expectations for the firm...
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January 27, 2021
Highlighted Top Ideas: CLW – Clearwater Paper Corporation, TMUS – T-Mobile US, Inc., UBER – Uber Technologies, Inc....
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January 26, 2021
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: EBAY – eBay Inc., Other Highlights: AAP, BERY, DELL...
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January 26, 2021
CDS 460bps, Base Case iCDS 123bps
Negative Case iCDS 167bps, 2026 7.750% Bond YTW of 5.590%
iYTW of 1.730%, B1 Rating from Moody’s, XO (equivalent to Baa3) Rating from Valens
High Refinancing Need...
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January 26, 2021
Hasbro, Inc. (HAS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 19.2x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm...
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January 25, 2021
General Motors Company (GM:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 19.4x Uniform P/E....
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January 22, 2021
Wyndham Hotels & Resorts, Inc. (WH:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 32.0x Uniform P/E. At these levels, the market has bullish expectations for the firm...
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January 21, 2021
- The Market Rally Has Fundamental Backing, But Short-Term Risk-Reward is Skewed. The recent rally has pushed investors to exuberant levels, they are not focused on near-term risks. Valuations are expensive, and continued earnings growth is needed to justify them. Valuations and sentiment may cap near-term upside, as investors may have gotten ahead of the 2021 story. This may limit stock appreciation potential for the remainder of Q1 2021
- That being said, a pause in the stock market doesn’t mean another bear market is imminent. Thanks to healthy credit fundamentals going into the pandemic and coming out of it, it’s unlikely the economy or the market is going to come under pressure. Favorable bank, corporate, and consumer credit fundamentals coming out of this disruption still point to optimism for a strong recovery
- Late last year we highlighted how growth signals had gotten more positive, giving us reason to abandon concerns we were in a range-bound market. Even before the election, management teams started to show more confidence in their outlook, and with the vaccine providing visibility, investment plans may resume sooner, helping drive earnings growth. While there could be near-term market uncertainty, fundamentals should bounce back rapidly...