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.: Corteva (CTVA), KBR (KBR), Cimpress (CMPR), Affiliated Managers (AMG), Avanos Medical (AVNS), Sysco (SYY), Forescout Technologies (FSCT), Altice USA (ATUS), Live Nation Entertainment (LYV).

 

Developed: Hoshizaki (HSZK.JP; 6465 JP), SGS SA (SGSN.CH; SGSN SW), Japan Tobacco (ABOT.JP; 2914 JP), Rubis (RUI.FR; RUI FP), Industrivarden C (IUCF.SE; INDUC SS), Carl Zeiss (AFXX.DE; AFX GR), Carrefour (CRFR.FR; CA FP), China Mobile (CHT.HK; 941 HK), Mtr (MTRC.HK; 66 HK).

 

Emerging: China Steel (CST.TW; 2002 TT), Fomento Economico Mexicano (FMU.MX; FEMSAUBD MM), Formosa Petrochemical (FPC.TW; 6505 TT). 

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.:  Nvent Electric (NVT), Sanderson Farms (SAFM), BOK Financial (BOKF), HCA Healthcare (HCA), Cloudera (CLDR), Baidu (BIDU), Ryanair Holdings Adr (RYAAY).

 

Developed: Henkel (Xet) (HENX.DE; HEN GR), Makita (ML@N.JP; 6586 JP), SGS SA (SGSN.CH; SGSN SW), Vivendi (EX@F.FR; VIV FP), Adidas (ADSX.DE; ADS GR), WH Group (HHPL.HK;288 HK), China Galaxy Securities (CGXY.HK; 6881 HK), Cochlear (COH.AU; COH AU), Carrefour (CRFR.FR; CA FP), Seven & I (SEVI.JP; 3382 JP), Sunny Optical (SOPT.HK; 2382 HK).

Coupa Software

Posted on by Cornelio Ash

Key points from this report:

 

  • Coupa provides a cloud-based business spend management platform that gives a unified view of procurement, invoicing, expense, and payment management.
  • The stock is breaking out from a 10-week consolidation on rising daily volume. Buy.
  • Business spend management is a $56B market opportunity with +100K customers.
  • The company’s platform is a comprehensive one-stop shop after the integration of Coupa Pay.
  • Fundamental ratings: EPS Rank 76, SMR Rating B, Composite Rating 99.
  • Technical ratings: RS line is trending upward, RS Rating 94, A/D Rating C.

ServiceNow

Posted on by Cornelio Ash

Key points from this report:

 

  • NOW gapped up after reporting better-than-expected Q1 FY20 results and remains buyable as the stock forms the right side of an 11-week consolidation. Buy.
  • Strong deal execution amid COVID-19. In Q1, the company signed 37 greater than $1M deals for a cumulative total of 933 (+30% y/y).
  • Fundamental ratings: EPS Rank of 97, Composite Rating of 98, SMR Rating of A.
  • Technical ratings: RS line at highs, RS Rating of 91, A/D Rating of C-.

ServiceNow Inc

Posted on by Cornelio Ash

Key points from this report:

 

  • ServiceNow provides SaaS solutions to help enterprises manage, automate, and streamline IT operations and services.
  • The stock is consolidating after finding support along ~$250, which coincides with the lows of its prior base. Look for the stock to regain its 50-DMA and form the right side of a base. The stock is buyable post positive print on April 29.
  • ServiceNow’s SaaS based platform is resilient amid the COVID-19 disruption, as 94% of revenue is subscription-based.
  • Focus on Q1 FY20 (April 29) commentary around deal closures, billing growth, and guidance.

Software – Security

Posted on by Cornelio Ash

Key points from this report:

 

  • The work-from-home theme extends far beyond quality enterprise applications—Docusign (DOCU), Zoom (ZM), Atlassian (TEAM)—and includes cybersecurity
  • Cybersecurity is long-term beneficiary of the secular shift to the cloud, but the COVID-19 outbreak accelerates the need for enterprise cybersecurity as large businesses expand and/or develop a long-term work-from-home policy.
  • Annual global spending on cybersecurity software and services is poised to increase 52% over the next four years, from $124B to $189B in 2023, a CAGR of 11%.
  • Top picks: Fortinet (FTNT), Okta (OKTA), Qualys (QLYS), Crowdstrike (CRWD).

Tencent Holdings

Posted on by Cornelio Ash

Key points from this report:

 

  • Tencent is a global internet company with a 14% share of the global gaming market, a 39% share of the Chinese payment services market, and an 18% share of the Chinese cloud market.
  • The stock is emerging out of a one-year consolidation on volume and remains near pivot. Buy.
  • The COVID-19 disruption has been a tailwind for mobile gaming developers, including Tencent. See our recent Software–Gaming note.
  • Tencent’s fastest growing segment includes cloud computing and payments, which accounts for 27% of total revenue.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Packaging Corporation of America ( PKG ), OSI Systems ( OSIS ), Colfax ( CFX ), Proto Labs ( PRLB ), Allison Transmission ( ALSN ), Ormat Technologies ( ORA ), Apache ( APA ), Avalonbay Communities ( AVB ), Avantor ( AVTR ), Dunkin Brands ( DNKN ), SVMK ( SVMK ), Ryanair Holdings ( RYAAY ).

 

Developed: Brenntag (BNRX.DE; BNR GR), Schneider Electric (QT@F.FR; SU FP), Makita (ML@N.JP; 6586 JP), Barry Callebaut (BARN.CH; BARN SW), Henderson Land Development (HELD.HK; 12 HK), Mani (MAII.JP; 7730 JP), Rocket Internet (RKETX.DE; RKET GR), Ibiden (IBIN.JP; 4062 JP), China Mobile (CHT.HK; 0941 HK), Atos (ATO.FR; ATO FP).

 

Emerging: Klabin Units (KLU.BR; KLBN11 BZ), LG Household and Healthcare (LHH.KR; 051900 KS).