We released our weekly Global Laggards Report yesterday (please 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
Smurfit Kappa Group (SK3.IE; SKG:ID), Skanska B (SKBF.SE; SKAB:SS), Nokian Renkaat (NOKT.FI; TYRES:FH), and
Aberdeen (ABDN.GB; ABDN:LN).
Author: admin
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 broke out to new highs yesterday, while the Nasdaq is now trading
~1% below that level. Support remains the 50-DMA, though both the 10- and 21-DMA are now crossing above that level. The distribution
day count fell to five and four, respectively, with one day expiring on each late next week.
INDIAMART
O’Neil Methodology
• The stock declined ~5% today after Q2 top- and bottom-line slightly
missed consensus. It is currently forming a stage-three cup base with a
pivot of INR 9,950. It has breached its 50-DMA with next support at its
200-DMA, 4% away.
• Fundamental ratings are mixed: SMR Rating of A, Composite Rating of
47, and EPS Rank of 47.
Won Europe Today
Yesterday,
- European markets gained for the second consecutive session with major markets ending in the green. We
upgraded the Netherlands to a Confirmed Uptrend as the stock reclaimed its prior high. Sweden and Luxembourg
were the only markets to end in negative and all avoided a distribution day. - The Stoxx 600 is trading along its 50-DMA with four distribution days compared with five last week. On the sectoral
front, Staples outperformed driven by strong results from Nestle. - Among other major indices, France’s CAC is trading along its 50-DMA while Germany’s DAX is facing resistance at
it. For the U.K.’s FTSE, the distribution day count decreased to five from seven last week. - Actionable names in the Focus List include Intesa Sanpaolo (ISP.IT; ISP:IM), Rentokil Initial (RTO.GB; RTO:LN),
Coface (COFA.FR; COFA:FP), Euronext (ENX.FR; ENX:FP), and Keywords Studios (KWS.GB; KWS:LN). We
added Ashtead Group (AHT.GB; AHT:LN) to our actionable list as the stock broke out of a flat base.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 is testing all-time highs (4,545) while the Nasdaq continues to build the right
side of a base. Support for both indices is at their respective 50-DMA (S&P 500: 4,441; Nasdaq: 14,884). The distribution day count stands
at six and five, respectively, with one day expiring on each index after the close.
JUBILANT FOODWORKS
O’Neil Methodology
• The stock declined more than 8% yesterday and 4% today after posting
mixed Q2 results. Due to a 40% rally since mid-July and stretched
valuation, the stock saw a rapid decline and broke below its 50-DMA.
Next support is at the 100-DMA, 4% away.
• Fundamental ratings are strong. EPS Rank of 94, Composite Rating of
84, and SMR Rating of A. The company has a healthy growth trajectory.
Sales and EPS clocked CAGR of 13.4% and 20%, respectively, over the
last five years.
CHIPOTLE MEXICAN GRLL
O’Neil Methodology
• The stock has been moving sideways and is currently trading 2%
below its 50-DMA. Next support is at its 100-DMA, 6% away.
• Strong fundamental ratings: EPS Rank 98, SMR Rating B,
Composite Rating 98. Chipotle has historically had sales growth at
healthy rates (five-year CAGR of ~6%), driven by a mixture of
store rollouts and like-for-like (LFL) sales growth, while adjusted
EBITDA margin has doubled to 9.9% since 2016. The long-term
growth outlook is strong, driven by domestic and international
rollouts and a steady rise in profit margin
O’Neil Capital Equipment Sector Weekly
Trane Technologies (TT) completed the acquisition of Farrar Scientific for an upfront value of $250M and a potential payout of $115M in 2025, based on attainment of financial targets. Farrar Scientific provides ultra-low-temperature control equipment used in the $1.65B health care manufacturing and bioprocessing market. The acquisition is expected to be accretive to margin and EPS for Trane in the first three years. The stock is trading close to its 200-DMA with a low RS Rating of 54 and an A/D Rating of D-.
Won Europe Today
Yesterday,
- European markets ended in the green on expectations of a strong earnings season. We recommend that investors
add names coming out of proper bases while reducing exposure to extended names. - The Stoxx 600 is trading along its 50-DMA and is 2% off highs. On the sectoral front, Utilities led gains, rising more
than 100bps and was followed by Travel & Leisure and Technology. Banks and Auto stocks were the only sectors to
end in the red. The market remains in an Uptrend Under Pressure with five distribution days. - Among other major indices, France’s CAC ended in negative and found support at its 50-DMA. It avoided a
distribution day as the index declined on lower volume. Germany’s DAX is in a Rally Attempt and is awaiting a
follow-through-day. The U.K.’s FTSE ended in the green on higher volume. - France, Ireland, and Switzerland ended in negative while Switzerland recorded a distribution day. Market status
remained unchanged for all markets. - Actionable names in the Focus List include Intesa Sanpaolo (ISP.IT; ISP:IM), Rentokil Initial (RTO.GB; RTO:LN),
Coface (COFA.FR; COFA:FP), Euronext (ENX.FR; ENX:FP), and Keywords Studios (KWS.GB; KWS:LN). We
added Ashtead Group (AHT.GB; AHT:LN) to our actionable list as the stock broke out of a flat base.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to push higher and are now approaching resistance at
all-time highs (S&P 500: 4,545; Nasdaq: 15,403). Support remains the 50-DMA. The distribution day count stands at six and five,
respectively, with one day expiring on each after the close tomorrow.
