We released our Weekly Global Laggards Report yesterday. Click here to access the report. The stocks highlighted in
this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may
be vulnerable to further downside risk and underperformance. European names highlighted this week include Hermès
International (RMS.FR; RMS:FP), Puma (Xet) (PUMX.DE; PUM:GR), Standard Life Aberdeen (ABDN.GB; ABDN:LN),
Deutsche Post (Xet) (DPWX.DE; DPW:GR), Koninklijke Ahold Delhaize (AD.NL; AD:NA), Vivendi (EX@F.FR; VIV:FP),
and Hexagon B (EKBF.SE; HEXAB:SS)
Author: admin
Driven Brands
O’Neil Methodology
• The stock gained more than 3% yesterday and closed just below its 50-
DMA. It is currently forming a stage-one consolidation base with a pivot
of $34.62.
• Good fundamental profile: EPS Rank 94. Composite Rating 87. SMR
Rating B. It is expected to improve further, given the strong EPS and
revenue growth estimates. The company’s asset-light model, strong
M&A record, store count growth potential, and the fragmented industry
within which it operates are major growth drivers.
• The stock’s technical metrics should improve further, given strong
results. It has an RS Rating of 78, an A/D Rating of B-, and Up/Down
Volume ratio of 1x. In the last nine months, the number of funds holding the stock has increased 26%.
WON Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
The Stoxx 600 is in a Confirmed Uptrend, but the lack of price progress since the follow-through day has been a
concern.
Sector Rotation: Positive short-term momentum continues in Energy and Financial.
European Focus List Update:
Recent additions: Vinci (DG@F.FR; DG:FP) and San Lorenzo (SANL.IT; SL:IM).
Recent removals: Teleperformance (ROFR.FR; TEP:FP), Indutrade (INDT.SE; INDT:SS), Infineon
(IFXX.DE; IFX:GR), and Rvrc Holding (RVRH.SE; RVRC:SS).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq rallied off session lows and closed near session highs. The S&P 500 is trading 2% below resistance at its 100-DMA (4,574) or February highs but holding 1% above support at its 200- DMA (4,456). The Nasdaq is testing resistance at its declining 21-DMA (14,199) and remains 4% below heavy resistance at its 200-DMA (14,739). The distribution day count stands at two and three, respectively.
Hilton Worldwide Holdings
Hilton Worldwide Holdings, a U.S. Focus List constituent,
reported mixed Q4 and FY21 financial results. Q4 FY21 revenue increased 106.3%
y/y to $1.8B, beating estimates by 3.4%. EPS for the quarter came in at $0.72,
28% below FY19 results and missed estimates by 4.9%. We recommend that
investors continue to maintain their positions in the stock and further accumulate
positions when the stock consolidates above its support levels.
Wyndham Hotels & Resorts Inc
U.S. Focus List constituent Wyndham Hotels & Resorts
reported strong Q4 and full year 2021. Q4, revenue grew 32% y/y, beating
estimates by 2%, and EPS stood at $0.52 compared with $(0.08) in the prior
period, beating estimates by 16%. We recommend that investors hold positions
here and add to positions if the stock breaks above the pivot of $91.41 on strong
volume.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 gapped higher, closing back above its 200-DMA but below resistance at its 10-, 21-, and 50-DMA, which are all turning lower. The main level of resistance is ~4,600, or February highs, which coincides with the rolling 50-DMA. The Nasdaq also gapped higher but remains below near-term 21-DMA (14,205) resistance as well as primary resistance at the rolling 50-DMA (14,814). Distribution stands at two and three days, respectively.
WON Europe Today
Yesterday,
- European markets had a strong day on news of some kind of de-escalation between Russia and Ukraine. However,
almost all major indices continue to trade below their key support levels. We are not turning constructive on the
markets yet and hence continue to recommend that investors be very cautious while adding new risks and book
profits in any name undergoing technical deterioration. - The Stoxx 600 managed to reclaim its 200-DMA but on low volume. Among sectors, Health Care and Industrial
Goods gained more than 2% each, while Oil & Gas lost more than half a percent. - Among other major indices, France’s CAC continued to rise after finding support at its 200-DMA. Germany’s DAX is
still trading below its 200-DMA while the U.K.’s FTSE 100 found support at its 21-DMA. - Among the 17 major indices that we track in Europe, only Norway closed in negative territory. Actionable names in
the Focus List include San Lorenzo (SANL.IT; SL:IM), Compass Group (CPG.GB; CPG:LN), Vinci (DG@F.FR;
DG:FP), Jeronimo Martins (JMT.PT; JMT:PL), and Beneteau (CHBE.FR; BEN:FP).
WON Europe Today
Yesterday,
- European markets were weak and hit an intraday low of 3%, but partially recovered some of the losses later in the
session. Most major indices recorded distribution days and are testing or breaking below their key support levels.
We continue to recommend that investors be very cautious while adding new risks and book profits in names
undergoing technical deterioration. - Fundamentally, the possibility of NATO imposing sanctions on Russia if it decides to invade Ukraine is spooking
markets as this might lead to high energy prices and increased prices of agricultural commodities. This might force
Europe’s central banks to tighten more than expected which may dampen economic recovery from the pandemic. - The Stoxx 600 breached below its 200-DMA, but narrowly avoided a distribution day. It continues to remain in a
Confirmed Uptrend. Among sectors, Banks lost more than 3% while Insurance lost more than 2%. Technology
stocks were down 1.8%. - Among other major indices, France’s CAC gapped down and found support at its 200-DMA. Germany’s DAX is
trading below its 200-DMA. Both the indices recorded distribution days. The U.K.’s FTSE 100 is testing support at
its 21-DMA. - All the 17 major indices that we track in Europe closed in negative territory with nine recording distribution days.
Actionable names in the Focus List include San Lorenzo (SANL.IT; SL:IM), Compass Group (CPG.GB; CPG:LN),
Vinci (DG@F.FR; DG:FP), Jeronimo Martins (JMT.PT; JMT:PL), and Beneteau (CHBE.FR; BEN:FP).
Won Global View
The U.S. market has been shifted to an Uptrend Under Pressure. The S&P 500 closed slightly below the follow-through day low
(4,414), triggering the shift in the market status. The lack of price progress since the follow-through day has been a concern on both indices, which are vulnerable to retest January lows (S&P 500: 4,292; Nasdaq: 13,236). The distribution day count stands at two and three, respectively.
