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.: Meritage Homes Corp (MTH), Lendingtree (TREE), Coherus Biosciences (CHRS), Intel (INTC), Vmware (VMW),  Douyu Intl (DOYU).

 

Developed: Kuraray (RK@N.JP; 3405 JP), Homeserve (HSV.GB; HSV LN), Bridgestone (BR@N.JP; 5108 JP), Sjm Holdings (SJMH.HK; 880 HK), Nagoya Railroad (NGYR.JP; 9084 JP), The A2 Milk Company (A2M.AU; A2M AU), Koninklijke Vopak (VPK.NL; VPK NA), Transurban Group Stapled Units (TCL.AU; TCL AU), Coloplast (COL.DK; COLOB DC), Skylark (LARK.JP; 3197 JP), Nokia (NOK1.FI; NOKIA FH), Itochu Techno-Solutions (ITOS.JP; 4739 JP).

 

Emerging: Osotspa (OSOT.TH; OSP TB), Tenaga Nasional (TENN.MY; TNB MK), Puregold Price Club (PUR.PH; PGOLD PM), Wiwynn Corp. (WIW.TW; 6669 TT).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: S&P Global Inc (SPGI), EQT (EQT), Range Resources (RRC), Equinix (EQIX), Boston Scientific (BSX), Juniper Networks (JNPR), Baozun (BZUN), Douyu Intl (DOYU).

 

Developed: Pennon Group (PNN.GB; PNN LN), Goldwin (GLDW.JP; 8111 JP), Essity (ESSI.SE; ESSITYB SS), Christian Hansen (CHR.DK; CHR DC), Aiful (AIFU.JP; 8515 JP), Cochlear (COH.AU; COH AU), Loblaw (L.CA; L CN), Nokia (NOK1.FI; NOKIA FH), China Telecom (CTC.HK; 728 HK).

 

Emerging: Osotspa (OSOT.TH; OSP TB), Zhen Ding Tech (ZHE.TW; 4958 TT).

Global Laggards

Posted on by Cornelio Ash

U.S.: S&P Global Inc (SPGI), Cabot Oil & Gas Corp (COG), RenaissanceRe Holdings (RNR), Boston Scientific (BSX), Intel Corp. (INTC), Dish Network Corp (DISH), Splunk (SPLK).

 

Developed: Tokuyama (TOSO.JP, 4043 JP), China Resources Cmt. Hdg. (CRCH.HK; 1313 HK), Kintetsu Group (KINR.JP; 9041 JP), Reckitt Benckiser (RB.GB; RB LN), ASX Ltd. (ASX.AU; ASX AU), Cochlear (COH.AU; COH AU), Joyful Honda (JOYH.JP; 3191 JP), Nokia (NOK1.FI; NOKIA FH), Cogeco Communications (CCA.CA; CCA CN), Sage Group (SGE.GB; SGE LN).

 

Emerging: Osotspa (OSOT.TH; OSP TB), Thai Union Group (TUFP.TH; TU TB), Home Product Center (HPC.TH; HMPRO TB), Zhen Ding Tech. Holding (ZHE.TW; 4958 TT).

 

Infosys

Posted on by Cornelio Ash

Key points from this report:

 

  • The stock is breaking out of a 10-week flat base; add to positions here (pivot: INR 1,186). Support is at the 21-DMA.
  • Digital is 47% of total revenue, highest among peers: The pandemic has compressed the digital transformation cycle and boosted demand for technologies like cloud migration, cybersecurity, AI-based automation, and overall IT outsourcing and consulting. Infosys is poised to be a key beneficiary of this secular trend through its digital offerings.
  • Fastest growing large-cap name in Indian IT industry: In terms of constant currency growth, the company has outperformed peer Tata Consultancy Services over the past five quarters.
  • Margin expansion: Infosys is able to deliver industry-leading EBIT margin (25%+) driven by strong top-line growth and better utilization and offshore effort mix.
  • Positive read-through from Accenture: U.S. IT consulting peer Accenture (ACN) reported excellent Q1 results last week, and management also raised full-year FY21 guidance. Key metric new bookings increased 25% y/y to $12.9B. We view this as very positive for the overall IT outsourcing industry and particularly for firms with higher share of digital revenues like Infosys.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Clorox (CLX), Ehealth (EHTH), Tandem Diabetes (TNDM), Ollie’s Bargain Outlet (OLLI), Intel (INTC), Nortonlifelock (NLOK),  2U (TWOU), Zto Express (ZTO), Schneider (SNDR), Werner (WERN).

 

Developed: Obayashi (OB@N.JP; 1802 JP), Aisin Seiki (ZQ@N.JP; 7259 JP), Tobu Railway (RY@N.JP; 9001 JP), Kojamo (KOJO.FI; KOJAMO FH), Nissin Foods (NIFP.JP; 2897 JP), Koninklijke Vopak (VPK.NL; VPK NA), ASX (ASX.AU; ASX AU), Ansell (ANN.AU; ANN AU), Toho (TOHP.JP; 8129 JP), AAC Technologies (AACA.HK; 2018 HK), China Telecom (CTC.HK; 728 HK), Trend Micro (REND.JP; 4704 JP).

 

Emerging: Wiwynn (WIW.TW; 6669 TT).

DocuSign

Posted on by Cornelio Ash

Key points:

 

  • The stock is forming the right side of a consolidation and recently broke above a pivot of $246.80. Buy.
  • Excellent Q3 FY21 Results; 6% Revenue Beat, 69% EPS beat: Reported EPS of $0.22 (+100% y/y), above consensus of $0.13, and revenue of $382.9M (+53% y/y), above consensus of $361.2M.
  • Exceptional customer growth continues – 3x customer additions compared with Q3 FY20. DocuSign has grown its customer base at a six-year CAGR of 35% in FY14-FY20. Current customer count stands at 822K (+46% y/y), of which 113K (+64% y/y) are direct customers.
  • DocuSign sizes its total addressable market at $25B, based on the total number of companies and average contract value.
  • Guidance (midpoint): Docusign raised full-year FY21 revenue guidance by 3% ($42M), billings guidance by 4% ($72M), and operating margin by 300bps.

CrowdStrike

Posted on by Cornelio Ash

Key points from this report:

 

  • The stock broke out of a six-week cup base on rising volume after reporting better-than-expected Q3 FY20 results. Buy.
  • Cybersecurity remains a secular growth theme. The pandemic has led to an increase in the number of phishing and ransomware attacks as hackers used COVID-19 to mislead employees, making more smartphones and computers prone to cyberattacks.
  • Growing addressable market led by innovations and acquisitions. The market for CRWD  initially began as a replacement opportunity in corporate endpoint security but has significantly increased, aided by rapid innovation and acquisitions.
  • Growing customer base. In Q3 FY21, CrowdStrike added 1,186 net new subscription customers for a total of 8,416, including 49 of the Fortune 100, 40 of the top global 100 companies, and 11 of the top 20 major banks

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Reynolds Consumer Prdcts (REYN), Hormel Foods (HRL), Cabot Oil & Gas Corporation (COG), Lending Tree (TREE), Hill-Rom (HRC), Juniper Networks (JNPR), Nortonlifelock (NLOK), Akamai (AKAM), Huya (HUYA).

 

Developed: Novozymes B (NZY.DK; NZYMB:DC), Maruichi Steel Tube (MRUS.JP; 5463:JP), Yangzijiang Shipbuilding Hldgs (YSHL.SG; YZJSGD:SP), Christian Hansen Holding (CHR.DK; CHR:DC), Nissin Foods Holding (NIFP.JP; 2897:JP), Shinsei Bank (SHBA.JP; 8303:JP), Getinge (GIND.SE; GETIB:SS), Carrefour (CRFR.FR; CA:FP), Nokia (NOK1.FI; NOKIA:FH), Trend Micro (REND.JP; 4704:JP), Scout24 (G24X.DE; G24:GR).

 

Emerging:  Nhn (ZEE.KR; 181710:KS), Wiwynn Corp. (WIW.TW; 6669:TT).

Autodesk

Posted on by Cornelio Ash

Key points from this report:

 

  • The stock is breaking out from a 13-week cup-with-handle consolidation on above average volume. Buy.
  • Strong Q3 FY21 results: Beat across all metrics. All metrics – revenue, billings, operating margin, free cash flow margin, and EPS – were comfortably above consensus.
  • Enterprise deals are re-accelerating, including Autodesk closing a three-year nine-figure deal, one of the largest in the company’s history.
  • Usage levels improving. As of November, manufacturing PMIs in both the U.S. (56.7) and the eurozone (53.6) continue to trend above 50, suggesting an expansion. In parts of Asia, activity is back to pre-COVID levels.
  • Guidance: Raised EPS and revenue for FY21, but the outlook for FY22 was conservative.
    • EPS of $3.94 (+41% y/y, up from previous guidance of $3.81) is above estimates of $3.85 and revenue of $3.76B (+15% y/y, up from previous guidance of $3.74B) is above estimates of $3.75B.
    • FY22 (introduced): Expect revenue growth in the low to mid-teens, below the street’s 16.5%.