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The Latest from
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April 22, 2022
Bath & Body Works (BBWI) currently trades below corporate and historical averages relative to Uniform earnings, with a 12.8x Uniform P/E (Fwd. V/E’)...
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April 22, 2022
SQ – No Traded CDS, Base Case iCDS 49bps
Negative Case iCDS 152bps, 2026 2.750% Bond YTW of 4.921%
iYTW of 3.421%, Ba2 Rating from Moody’s, IG4+ (equivalent to Baa1) Rating from Valens
Low Refinancing Need...
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April 21, 2022
- Management Bullish Signals Can Fuel 2022 Earnings Growth. U.S. corporate profitability has recovered impressively since the pandemic. Now, investment growth appears to be accelerating to match strong profits based on credit growth and management sentiment indicators. U.S. corporates are remarkably profitable and growth is starting to accelerate.
- Credit markets remain supportive of profitability and growth through the cycle, and the Fed raising rates won’t disrupt these signals. This facilitates the market rising and limiting any risk for a downside shock.
- While inflation remains a headline issue, investor sentiment has moderated significantly, de-risking the market
- Monthly inflections:
- Credit (55% of macro outlook): Bullish (no change)
- Earnings Growth (30%): Bullish (no change)
- Momentum/Sentiment (10%): Positive (no change)
- Valuations (5%): Negative (no change)
- Timetable Recommendation: 60/40 Split for 5-10 Year Money and upgrade to 6 Month Dollar Cost Averaging....
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April 21, 2022
Newell Brands (NWL) currently trades near corporate, but above historical averages relative to Uniform earnings, with a 24.5x Uniform P/E (Fwd. V/E’)...
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April 20, 2022
Featured Top Idea
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TWTR – Twitter, Inc.
Action: Trade: Buy 2027 3.875% Bonds, CUSIP: 90184LAG7 (4.947% YTW, 3.397% iYTW)... -
April 20, 2022
Watsco, Inc. (WSO) currently trades near corporate yet above historical averages relative to Uniform earnings, with a 1.9x Uniform P/E (Fwd. V/E’)...
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April 19, 2022
Generac Holdings Inc. (GNRC) has a dominant and growing market position for backup power generation and storage, a trend that is likely to grow for years...
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April 19, 2022
Tyson Foods (TSN) currently trades below corporate but near historical averages relative to Uniform earnings, with a 12.3x Uniform P/E (Fwd. V/E’)...
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April 18, 2022
EPAM Systems, Inc. (EPAM) currently trades above corporate but near historical averages relative to Uniform earnings, with a 30.8x Uniform P/E (Fwd. V/E’)...
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April 18, 2022
TWTR – CDS 189bps, Base Case iCDS 61bps
Negative Case iCDS 81bps, 2027 3.875% Bond YTW of 4.947%, iYTW of 3.397%
Ba2 Rating from Moody’s, IG4+ (equivalent to Baa1) Rating from Valens
Low Refinancing Need...
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