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September 21, 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: ATKR – Atkore Inc. Other Highlights: CGNX, ENTG, TRU...
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September 21, 2021
Xylem Inc. (XYL:USA) currently trades at a historical high relative to UAFRS-based(Uniform) earnings, with a 39.8x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm...
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September 20, 2021
Mohawk Industries, Inc. (MHK:USA) currently trades near recent averages relative to UAFRS-based (Uniform) earnings, with a 14.3x Uniform P/E. At these levels, the market is pricing in profitability to remain stable, and management may be concerned about their European business, their acquisitions strategy, and pricing actions to counter rising costs...
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September 17, 2021
TransUnion (TRU:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 35.4x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm...
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September 17, 2021
PDCE – No Traded CDS, Base Case iCDS 109bps
Negative Case iCDS 387bps, 2026 5.750% Bond YTW of 3.764%, iYTW of 1.914%
Ba2 Rating from Moody’s, IG4 (equivalent to Baa2) Rating from Valens
Low Refinancing Need...
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September 16, 2021
IPG Photonics Corporation (IPGP:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 24.6x Uniform P/E. At these levels, the market is pricing in bullish expectations...
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September 16, 2021
- You Can’t Have The Growth Stage Of A Bull Market Without Growth. The speed of the recovery in return on assets after the pandemic highlights the resiliency and strength of U.S. corporate profitability. At current valuations the market is expecting this to continue and for growth to be above average going forward. However, in the near-term, subdued management confidence limits growth, which limits equity upside and may even create more near-term volatility.
- Even after the recent pullback, investor sentiment also remains excessively bullish. Combined with high inflation and lingering macro concerns (including Delta risks), this creates further risk to the market. This could further contribute to continued near-term volatility.
- However, any dip due to near-term growth or sentiment issues is a dip to continue to buy, thanks to the bedrock of any bull market, healthy credit. Credit metrics show healthy availability of credit from both credit markets and banks, and no risk of defaults. That means the risk of a pullback turning into a bear market is exceptionally low.
- Timetable Recommendation: 50/50 Split for 5-10 Year Money and upgrade to 12 Month Dollar Cost Averaging....
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September 15, 2021
Entegris, Inc. (ENTG:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 32.9x Uniform P/E. At these levels, the market has bullish expectations for the firm...
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September 15, 2021
Featured Top Idea
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DAL – Delta Air Lines, Inc.
Trade: Buy 2026 7.375% Bonds CUSIP: 247361ZZ4 (3.085% YTW, 1.815% iYTW)...