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B&M VALUE RETAIL

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O’Neil Methodology

  • The stock declined 3.9% yesterday and breached its 50- and 100-DMA.
    Next support is at the 200-DMA (GBX 521; 3.5% away).
  • • Technical ratings have weakened in the last couple of weeks. RS Rating
    of 57 with declining RS line indicates underperformance. A/D Rating has
    turned negative to D, while Up/Down Volume ratio declined to 1.0 from
    1.5, indicating selling pressure.
  • • However, fundamental ratings remain strong. EPS Rank of 96,
    Composite Rating of 93, and SMR Rating of A. B&M’s fundamentals are
    strong. The discount retailer has a history of delivering double-digit likefor-like sales growth in its core business, well ahead of the low-singledigit industry average. Its low-cost, no-frills models also mean it
    generates attractive operating margins of ~10% and ROE of 20%, which considerably exceeds its COE of ~8%.
    Number of funds holding the stock increased 23% y/y to 532 as of March.

William Sonoma

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O’Neil Methodology
• Since breaking out of a stage-two cup base in March, the stock is trading
sideways, with support at its 100-DMA. It trades 1.49% below its 50-
DMA, with support at its 100-DMA, 13.91% away.
• Strong fundamental profile: EPS Rank of 94, Composite Rating of 98,
SMR Rating of A. The stock’s performance picked up during the
pandemic due to a strong housing market.

Won Europe Today

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Yesterday,

  • European markets continued to consolidate sideways. Price movements on most major indices indicate topping
    action. We expect markets to remain choppy in the coming days and advise that investors book profits in extended
    names.
  • The Stoxx 600 gained more than half a percent and is trading above its 21-DMA. On the weekly charts, the index
    formed two consecutive upside reversal bars, indicating the rally started from November 2020 might take a pause
    here. It remains in a Confirmed Uptrend with six distribution days. Among sectors, most closed in positive territory,
    with Autos gaining more than 1%.
  • Among the other major indices, France’s CAC and Germany’s DAX found support at their respective 50-DMA last
    week, managing to close above their respective 21-DMA. The U.K.’s FTSE found support at its 21-DMA.
    Distribution day counts for CAC 40 and DAX 30 remain elevated.
  • Among the 17 indices we track, the U.K., Portugal, and Luxembourg closed in negative territory. Italy was upgraded
    to a Confirmed Uptrend after it reclaimed its prior rally high.
  • New Focus List addition Fevertree drinks (FEVR.GB; FEVR:LN) is actionable after breaking out of a stage-one
    consolidation. Other actionable names in the Focus List include Dechra Pharmaceuticals (DPH.GB; DPH:LN),
    Eurofins Sciencific (EUF.FR; ERF:FP), Interpump Group (IP.IT; IP:IM), Intesa Sanpaolo (ISP.IT;
    ISP:IM), B&M European Value Retail (BME.GB; BME:LN), Novo Nordisk (NON.DK;
    NOVOB:DC), Carl Zeiss Meditec (AFXX.DE; AFX:GR), and Hermès (RMS.FR; RMS:FP).

Won Global View

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The U.S. market remains in an Uptrend Under Pressure. The S&P 500 is testing resistance at its 21-DMA (4,166) after a sharp pullback
to and a subsequent bounce off its support at the rising 50-DMA. The Nasdaq is testing resistance at its 50-DMA (13,578) after a rally
across oversold growth constituents. The distribution day count remains elevated at nine and five, however, this week two days will expire
on the S&P 500 and one on the Nasdaq.

BUCKLE

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O’Neil Methodology
• Since breaking out of a stage-one consolidation base in April, the stock
is trading sideways with support at its 50-DMA. It trades 0.2% above its
50-DMA, with next support at the 100-DMA, 8% away.

OZON HOLDINGS

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O’Neil Methodology
• The stock declined 5% yesterday on strong volume. It is currently
trading 11% below its 50-DMA with next support at the low of the latest
base at $49.95 (3% away).
• Traditional fundamental O’Neil Ratings are soft, given the group’s
limited listed trading history and the fact that it is in the growth stage of
its lifecycle, but its overall fundamental profile is strong. GMV has
grown at a 56% CAGR over the past four years. This growth has
accelerated during the pandemic. Impressively, the group’s profitability
trends are accelerating; losses have narrowed significantly over the past
year due to the group’s scale. Its adjusted EBITDA as a % of GMV has
improved to -6.5% currently from -14.2% in Q1 2020.

COPART

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O’Neil Methodology
• The stock is forming the right side of a stage-one consolidation base. It
is currently trading 8% below the pivot of $130.96 and 3.56% above its
50-DMA.
• Strong fundamental profile, with a consistent history of sales growth,
margin expansion, and ROE improvement. EPS had about 27% CAGR
over the past five years. This growth is reflected in stellar fundamental
ratings: EPS Rank 94, Composite Rating 85, and SMR Rating A.

Won Europe Today

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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 Flutter Entertainment (FLTR.GB; FLTR:LN) and Elekta (ELKB.SE;
    EKTAB:SS).

Won Global View

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The U.S. market remains in an Uptrend Under Pressure. Indices followed through on Wednesday’s upside reversal to close solidly
higher. The S&P 500 just slightly retook its 21-DMA (4,146) after a bounce off the 50-DMA. The Nasdaq is testing resistance at the
intersection of 21- and 50-DMA (13,531/15,577). Distribution remains a factor with an elevated count of nine days on the S&P 500,
including five over the last two weeks. The Nasdaq has only five but remains 5% off highs versus 3% for the S&P 500.

Won Europe Today

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Yesterday,

  • European markets fell sharply with the majority of them recording a distribution day, taking the count to 4.9. We
    recommend that investors stay cautious as markets remain highly volatile and trim names trading below key
    moving averages.
  • The Stoxx 600 fell 1.5%, recording a distribution day and breached its 21-DMA. On the sectoral front, Basic
    Resources led losses while all other sectors ended in negative territory.
  • Among other major indices, France’s CAC and Germany’s DAX recorded a distribution day each, while the U.K.’s
    FTSE avoided one.
  • Luxembourg underperformed losing more than 300bps, while Denmark continued to outperform. Market statuses
    remain unchanged for all markets.
  • Actionable names in the Focus List include Intesa Sanpaolo (ISP.IT; ISP:IM), B&M European Value Retail (BME.GB;
    BME:LN), Novo Nordisk (NON.DK; NOVOB:DC), Carl Zeiss Meditec (AFXX.DE; AFX:GR), Vitrolife (VITR.SE;
    VITR:SS), and Hermes (RMS.FR; RMS:FP).