Valens Equity Weekly Insights and Inflections for January 7, 2020
Most Compelling Long Ideas
CRUS, PINC, CTSH, COF, EBAY
Most Compelling ECF™ Inflections
ARMK, AN, HGV, LK, MAR
Company Specific Highlights & Insights:
AAPL, ALLE, AMZN, AVP, BLDR, DHR, DUK, EEFT, EXLS, FB, FIS, GRMN, IRBT, LEA, LGIH, MHK, MKSI, NOC, NSC, PII, PXD, SKX, SWK, TSLA, TWTR, VAR, WGO
Aggregate ECF™ Trend Analysis:
Management confidence levels appear to be inflecting more positively in October; breaking off their negative trend for the past several months. The ratio had dropped significantly from 2018 levels in the middle of 2019, however the recent positive inflection may be a sign of management teams growing more confident about investing. This has been signified by both a bump in confidence markers, but more importantly, a drop in highly questionable markers, a sign of reduced concerns about visibility for businesses going forward.