Author: Cornelio Ash

Cornelio Ash is a senior equity analyst and member of the U.S. Focus List and the Global Focus List Committees, which approves all equity recommendations for developed, emerging, and frontier markets. He is also a lead for the Technology sector and specializes in the Americas region. Cornelio joined the firm in 2005 and received his B.A. in Finance from California State University, Northridge. He holds a Series 65 securities license.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Allegheny Technologies (ATI), Eastman Chemical Co. (EMN), Kratos Def & Sec Sol Inc (KTOS), Oshkosh Corporation (OSK), World Wrestling Entertainment (WWE), Omnicom Group (OMC), Chegg Inc (CHGG), Norwegian Cruise Line Holdings (NCLH), Carnival Corporation (CCL), UTZ Brands (UTZ), Arcosa (ACA), Texas Capital Bancshares (TCBI), Repay Holdings (RPAY), CareDx (CDNA), Urban Outfitters (URBN), Cree (CREE), Ultra Clean Holdings (UCTT), Take-two Interactive Software (TTWO).

 

Developed: FLSmidth and Co. (FLB.DK; FLS DC), Vonovia (VNAX.DE; VNA GR), ITV (ITV.GB; ITV LN), Accor (AC.FR; AC FP), Hengan International Group (HENG.HK;1044 HK), Crescent Point Energy (CPG.CA; CPG CN), JCR Pharmaceuticals (JCRE.JP; 4552 JP), WH Smith (SMWH.GB; SMWH LN), Ericsson (SL@G.SE; ERICB SS), Nihon Unisys (NHUN.JP; 8056 JP), Jet2 (JET2.GB; JET2 LN).

 

Emerging: Carabao Group (CAG.TH; CBG TB), Cosan Industria E Commercio On (COS.BR; CSAN3 BZ), Hon Hai Precision Industry (HON.TW; 2317 TT).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Allegheny Technologies (ATI), Enersys (ENS), Timken (TKR), Newell Brands (NWL), Cedar Fair (FUN), Norwegian Cruise Line Holdings (NCLH), Carnival Corporation (CCL), HAIN Celestial Group (HAIN), Hess Corporation (HES), Trupanion (TRUP), W E X (WEX), CareDx (CDNA), Gap (GPS), Chewy (CHWY), Corning (GLW), Netgear (NTGR), Universal Display Corporation (OLED), Aspen Technology (AZPN), Delta Air Lines (DAL).

 

CrowdStrike

Posted on by Cornelio Ash

Key points from this report:

 

  • The stock pulled back despite reporting a beat-and-raise quarter. Support at the rising 10-DMA ($269) followed by the 50-DMA ($257). Hold.
  • Beat-and-raise Q2 FY22 results. Reported EPS of $0.11 (+267% y/y) and revenue of $337.7M (+70% y/y), both above consensus. ARR increased 70% y/y to $1.344B, also above estimates.
  • Raised FY22 guidance. Management raised full-year FY22 outlook above the beat in Q2. Raised revenue by $44M, EPS by $0.08, and operating margin by 130bps. Expects EPS of $0.46 (+70% y/y) above consensus of $0.40 and revenue of $1.400B (+60%), above consensus of $1.360B.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Carpenter Technology Corp (CRS), GATX Corp (GATX), Air Lease (AL), Match Group (MTCH), Sinclair Broadcast Group (SBGI), Planet Fitness (PLNT), Carnival Corporation (CCL), Caesars Entertainment (CZR), Herbalife (HLF), Suncor Energy (SU), E Q T Corp (EQT), Willis Towers Watson (WLTW), NeoGenomics (NEO), Dine Brands Global (DIN), Bloomin’ Brands (BLMN), Sleep Number (SNBR), Brooks Automation (BRKS), PTC INC (PTC); Blackbaud (BLKB).

 

Developed: Oji Holdings (OJIH.JP; 3861 JP), Sumitomo Forest (SFOR.GB; 1911 JP), Pearson (PSON.GB; PSON LN), Pola Orbis Holdings (POLA.JP; 4927 JP), Wh Group (HHPL.HK; 288 HK), ENEOS Holdings (JXHO.JP; 5020 JP), Adp (ADP.FR; ADP FP), H Lundbeck (KUN.DK; LUN DC), Sodexo (SDX.FR; SW FP), Disco (DISC.JP; 6146 JP), Embracer Group (THQ.SE; EMBRACB SS), Nippon Express (NX@N.JP; 9062 JP), Yamato Holdings (OJ@N.JP; 9064 JP).

 

Emerging: Asia Cement (ACM.TW; 1102 TW), Companhia De Locacao Das Americas On (LON.BR; LCAM3:BZ), Shinsegae (SGD.KR; 004170 KS), LG Display (LGL.KR; 034220 KS).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Eldorado Gold Corp (EGO), Woodward (WWD), Lyft (LYFT), Travel + Leisure (TNL), Post Holdings (POST), Globe Life (GL), WEX (WEX), Bausch Health Companies (BHC), Guess (GES), M K S Instruments (MKSI), Altice USA (ATUS), Take-Two Interactive Software (TTWO), Spotify Technology (SPOT), Kirby Corp (KEX).

 

Developed: Oji Holdings (OJIH.JP; 3861 JP), Smiths Group (SMIN.GB; SMIN LN), Jtekt (OE@N.JP, 6473 JP), China Literature (CHLT.HK; 772 HK), Star Entertainment (SGR.AU; SGR AU), China Resource Beer ( CHRE.HK; 291 HK), Kose (OSEC.JP; 4922 JP), Suncor Energy (SU.CA; SU CN), Commerzbank (CBKX.DE; CBK GR), Vifor Pharma (VIFN.CH; VIFN SW), Wetherspoon (JDW.GB; JDW LN), Ericsson (SL@G.SE; ERICB SS), Embracer Group (THQ.SE; EMBRACB SS), Deutsche Lufthansa (LHAX.DE; LHA GR), East Japan Railway (EAJR.JP; 9020 JP).

 

Emerging: Klabin Units (KLU.BR; KLBN11 BZ), Sk Innovation (SBG.KR; 096770 KS), Abdullah Al Othaim Markets (AOM.SA; AOTHAIM AB).

Autodesk

Posted on by Cornelio Ash

Key points from this report:

 

  • Next catalyst: Q2 FY22 results expected on August 25. Investor day event on September 1.
  • The stock is breaking out of a 28-week consolidation; add to positions here (pivot: $321). Support is at the 10-DMA.
  • Improving environment, management expects revenue acceleration going forward. On Q1 earnings call, the company commented that Autodesk is through the revenue growth trough and expects acceleration going forward. Recent positive read-through from peer Dassault Systemes’ Q2 results (company reported a beat-and-raise Q2) affirms a strong demand environment.
  • Strong key metrics: Remaining Performance Obligation (RPO) and billings underpin consistent performance. In Q1 FY22, total RPO increased 22% y/y to $4.2B and billings increased 10% y/y to $974M.
  • Market leader in a larger TAM. Autodesk has a 35% global share in the BIM-based AEC industry. The company’s TAM will expand to $69B by 2025, a five-year CAGR of 7%. Autodesk has penetrated only 5% of this TAM but continues to grow much faster than the market; in FY21, revenue grew 16% y/y to $3.8B. Management is targeting a 16-18% revenue CAGR in FY20-23.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Huntsman (HUN), Trinity Industries (TRN), World Wrestling Entertainment (WWE), Viacom CBS (VIAC), Wolverine World Wide (WWW), Huazhu (HTHT), Clorox (CLX), TPI Composites (TPIC), Old National Bancorp (ONB), Healthcare Services (HCSG), US Food (USFD), Interdigital (IDCC), Take-Two Interactive (TTWO), Copa (CPA).