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.

Microsoft

Posted on by Cornelio Ash

Key points from this report:

 

  • The stock is breaking out of a 21-week consolidation on an excellent Q2 FY21 earnings print. Buy.
  • Strong Q2 FY21 results led by accelerating growth in Azure and gaming. Microsoft reported EPS of $2.03 (+34% y/y) and revenue of $43.1B (+17% y/y), both above expectations of $1.64 and $40.2B, respectively. The company beat on all metrics for the quarter; highlights were Azure (+50% y/y) and gaming (+51% y/y).
  • Azure: Intelligent cloud remained the fastest-growing segment, led by Azure, which grew 50% y/y, well above estimates of 44% and above the prior quarter’s growth (48%). Azure contributed an estimated 17% of total revenue.
  • Gaming surpassed $5B in revenue for the first time: Xbox hardware revenue grew 86% y/y, driven by the new console launch. The launch of the Xbox Series X and Series S was the most successful in the company’s history, with the most devices ever sold in a launch month.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Harmony Gold Mng (HMY), Reynolds Consumer Prdcts (REYN), PRA Group (PRAA), Tandem Diabetes (TNDM), Xerox (XRX), TIMSA Ads (TIMB), VMWare (VMW).
Developed: Symrise (SY1X.DE; SY1 GR), Brambles (BXB.AU; BXB AU), Wynn Macau (WYNN.HK; 1128 HK), Christian Hansen (CHR.DK; CHR DC), ASX Ltd. (ASX.AU), Recordati (REC.IT; REC IM), Dunelm Group (DNLM.GB; DNLM LN), United Supermarkets (USMH.JP; 3222 JP), Inwit (INW.IT; IMW IM), Orange (ORA.FR; ORA FP), Itochu Techno Solution (ITOS.JP; 4739JP).

 

Emerging: Taiwan Cement (TCM.TW; 1101 TT), Bts Group (TANA.TH; BTS TB), Osotspa (OSOT.TH; OSP TB), Zhen Ding Tech. Holding Ltd. (ZHE.TW; 4958 TT).

Globant

Posted on by Cornelio Ash

Globant is a pure-play IT solutions provider focused on emerging revolutionary
technologies such as big data, cloud, artificial intelligence (AI), social media,
wearables, and internet of things (IoT). Its principal operating subsidiary is based
in Argentina. The company has 893 customers; top 10 customers include Disney,
Google, Electronic Arts, Resorts Online, Orbitz, and JWT.

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).