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January 15, 2021

URI – Market expectations are for Uniform ROA to decline, but management is confident about their location openings, customer projects, and leverage

United Rentals, Inc. (URI:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about specialty location openings, upcoming customer projects, and their leverage

January 14, 2021

AVB – Market expectations are for Uniform ROA to reach new peaks, but management may have concerns about rental income, turnover, and legacy markets

AvalonBay Communities, Inc. (AVB:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 47.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about the sustainability of rental income, occupant turnover in San Francisco, and the performance of their legacy markets

January 13, 2021

INCY – Market expectations are for Uniform ROA compression, but management is confident about efficacy, their dermatological cream, and patient starts

Incyte Corporation (INCY:USA) currently trades near recent averages relative to UAFRS-based (Uniform) earnings, with a 16.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about drug efficacy, their dermatological cream, and patient starts

January 12, 2021

EPAM – Market expectations are for Uniform ROA to reach new peaks, but management may have concerns about growth, capital allocation, and the pandemic

EPAM Systems, Inc. (EPAM:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 46.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about revenue growth, their capital allocation strategy, and the impact of the pandemic

January 12, 2021

Valens Equity Weekly Insights and Inflections for January 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: LPLA – LPL Financial Holdings Inc. Other Highlights: CSX, MSCI, PANW

January 11, 2021

PANW – Market expectations are for Uniform ROA to remain stable, but management is optimistic about their billings, cloud AI security, and transparency

Palo Alto Networks, Inc. (PANW:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) earnings, with a 105.3x Uniform P/E. Even at these levels, the market has expectations for profitability to remain stable, but management is optimistic about their billings, cloud AI security category, and transparency

January 7, 2021

EW – Market expectations are for Uniform ROA to expand, but management appears concerned about growth, TAVR, and TMTT

Edwards Lifesciences Corporation (EW:USA) trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 48.6x Uniform P/E.

January 6, 2021

MSCI – Market expectations are for Uniform ROA to reach record highs, but management may have concerns about ESG, indices, and partnerships

MSCI Inc. (MSCI:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 46.4x Uniform P/E.

January 5, 2021

Valens Equity Weekly Insights and Inflections for January 5, 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: KEYS – Keysight Technologies, Inc. Other Highlights: CPRT, NOC, SONO

January 5, 2021

ITW – Market expectations are for Uniform ROA expansion, but management may be concerned about their segments, margins, and supply chain

Illinois Tool Works Inc. (ITW:USA) trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 28.4x Uniform P/E.

January 4, 2021

CPRT – Markets are pricing in expectations for Uniform ROA to reach new peaks, but management may be concerned about pricing, insurance partners, and the international business

Copart, Inc. (CPRT:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 36.9x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm

December 29, 2020

Valens Equity Weekly Insights and Inflections for December 29, 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: CVS – CVS Health Corporation Other Highlights: MTCH, PLD, WTRH

December 29, 2020

NOC – Market expectations are for Uniform ROA to decline, but management is confident about growth, Skyborg, and bipartisan support

Northrop Grumman Corporation (NOC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.6x Uniform P/E. At these levels, the market has bearish expectations for the firm

December 28, 2020

MTCH – Market expectations are for record-high Uniform ROA, but management may be concerned about free cash flow, non-Tinder brands, and fees

Match Group, Inc. (MTCH:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 54.3x Uniform P/E. At these levels, markets have bullish expectations for the firm

December 24, 2020

PLD – Market expectations are for Uniform ROA to reach all-time highs, but management may have concerns about inventory, growth, and demand

Prologis, Inc. (PLD:USA) currently trades at a recent high relative to UAFRS-based (Uniform) earnings, with a 52.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about inventory, growth, and demand

December 23, 2020

WTRH – Market expectations are for a positive inflection in Uniform ROA, but management may be concerned about revenues, pricing, and dine-in

Waitr Holdings Inc. (WTRH:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with an 8.8x Uniform P/E. At these levels, the market has expectations for profitability to positively inflect, but management may be concerned about revenue growth, their pricing power, and the new dine-in capabilities

December 22, 2020

Valens Equity Weekly Insights and Inflections for December 22, 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: CBRL – Cracker Barrel Old Country Store, Inc. Other Highlights: KSS, MPWR, RAD

December 22, 2020

AMN – Although management may have concerns about margins, demand, and new clinicians, market expectations are too bearish, and long-term equity outperformance is likely

AMN Healthcare Services, Inc. (AMN:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 23.2x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and although management may have concerns about gross margins, 2021 demand, and new clinicians, market expectations are too bearish, and long-term equity outperformance is likely

December 21, 2020

DHI – Although management may have concerns about home demand, unsold homes, and the strength of their position, market expectations are overly bearish, suggesting equity upside remains warranted

D.R. Horton, Inc. (DHI:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 9.1x Uniform P/E, implying bearish expectations for the firm. Although management may have concerns about home demand, unsold homes, and the strength of their position, market expectations are overly bearish, suggesting equity upside remains warranted for DHI going forward

December 18, 2020

GPN – Market expectations are for Uniform ROA to improve, but management may have concerns about their market share, volumes, and strategies

Global Payments Inc. (GPN:USA) currently trades near historical highs relative toUAFRS-based (Uniform) earnings, with a 37.9x Uniform P/E.

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