Key Points:
- William O’Neil + Co. has U.S. equity markets categorized in a Confirmed Uptrend. While the number of distribution days of six and five on the S&P 500 and Nasdaq, respectively, are higher than we would prefer, our leading ideas continue to trade constructively with multiple names across various sectors and market caps breaking out and making higher highs. There remain some market risks in the form of a tightening Fed, slowing U.S. earnings growth, and a potential trade war with China. However, until we see further distribution and/or a violation of the 50-DMA by the major indices, we remain positive on U.S. stocks.
- Within this broader market, we continue to see industry-specific themes for investors. In this report, we highlight three themes from our research analysts that are both investable and multi-year in nature: U.S. Medical Devices, Enabling Software for the Financial Industry, and CAD Software.
- Top picks within these three themes include ABMD, ALGN, EW, FIS, QTWO, SSNC, TEMN.CH, SIM.DK, DSY.FR, NEMX.DE, and ADSK.
