Larsen & Toubro (LST.IN; LT IN) – $33B market cap; $48M ADV: We added Larsen & Toubro to our Emerging Markets Focus List as the stock broke out of a stage-one 29-week cup-withhandle base. L&T is one of Asia’s largest vertically integrated EPC conglomerates and has a strong presence in the IT services market. It is expected to benefit from a capex-focused approach
by the Indian government, the company’s entry into the new emerging high-growth areas such as green hydrogen, e-commerce, and battery storage, and a strong IT services
portfolio.
Author: gundaboina saikiran
China Downgraded to a Downtrend
We are downgrading China to a Downtrend as the CSI 300 fell 0.98% on lower and below average volume and lost support of all its moving averages. Five distribution days accumulated in the last 25 sessions. Among our Focus List ideas in China, Proya Cosmetics (FVZ.CN), Anhui Gujing Distillery ‘A’ (ANG.CN), Beijing United Info Tech (BUM.CN), Ginlong Technologies ‘A’ (NG1.CN), and Yankuang Energy Group ‘A’ (YCM.CN) are still trading above their 21-DMA.
O’Neil Capital Equipment Sector Weekly
Carlisle (CSL): Reported better-than-expected Q2 FY22 results. Revenue grew to $1.85B (+57% y/y), beating estimates by 10%, while adjusted EPS grew to $6.15 (+185% y/y), beating
estimates by 23.5%. We recommend that investors add to positions as the stock broke above its pivot of $275.1.
Reiterating our BUY call on Page Industries (PI1.IN)
- Buy – The stock broke out of a stage-one double-bottom base on decent volume and is making a new all-time high.
- Through our quantitative metrics, Page Industries display top notch fundamental profile with an EPS rank of 82 and an SMR rating of A.
- These metrics are likely to stay highs as the company is now poised for the second leg of growth as Jockey is transitioning from an innerwear brand to a full-fledged apparel maker.
- We believe athleisure, kidswear, and women’s innerwear are set to drive revenue at a CAGR of 20% through 2025.
O’Neil Capital Equipment Sector Weekly
U.S. new home sales declined 8% y/y to 590K, significantly below estimates of 655K. Home sales estimates for the last three months were also revised lower. The average selling price for new homes
increased 7.4% y/y to $402K.
Buy Ipsos (IPS.FR) as it breaks out to a new high
Ipsos (IPS.FR; IPS FP)
$2.1B market cap; $2.6M ADV
Ipsos is the world’s third largest market research company, after Nielsen (NLSN and Kantar (WPP.GB). It provides
accurate, relevant information to clients, enabling them to make decisions. Ad hoc research brings in the majority
of the company’s revenue.
H1 FY22 revenue by region: EMEA, 45%; the Americas, 38%; and Asia-Pacific, 17%.
H1 FY22 revenue by audience: consumers, 46%; clients and employees, 20%; citizens, 17%; and doctors and patients, 17%.
O’Neil Energy/Material Weekly
Edp Renovaveis (EDPR.PT; EDP:PL; $23.2B market cap) – Technicals: The stock is forming the right side of a
stage-two cup base and is trading above its key moving averages. It is 5% below its pivot level of €25.09. Technical
ratings have seen improvement in the last three weeks: RS Rating jumped to 71 from 53, A/D Rating to B+ from B, and Up/Down Volume ratio to 0.9 from 0.6. Company Description: EDP Renováveis is the fourth largest generator of wind energy globally, along with a smaller portfolio of solar energy, operating in three broad geographic regions – Europe, North America, and South America.
O’Neil Capital Equipment Sector Weekly
FactSet Research (FDS) reported Q3 results. Revenue grew to $489M (+22% y/y) due to the acquisition of CUSIP Global Services and higher sales of research, advisory, and analytics solutions. Annual subscription value increased
to $1.9B (19% y/y). Adjusted EBITDA increased to $173.5M (+30.1%y/y). Adjusted EPS grew to $3.76 (+38.2% y/y), beating estimates by 17%. The stock reclaimed its 50-DMA on above average volume and is trading 24% below its 52-
week high.
O’Neil Capital Equipment Sector Weekly
Rheinmetall (RHMX.DE) announced a new main battle tank, KF51 Panther, to replace its flagship Leopard 2. Management also announced that it expects revenue to grow 20% y/y in the current year, driven by increased demand for
military equipment due to the war in Ukraine. The company is modernizing Marder, Leopard 1, and Leopard 2 tanks and expects these to be potentially delivered to Ukraine. The stock is forming the right side of a stage-two cup base
and has good technical ratings.
O’Neil Capital Equipment Sector Weekly
ABB (ABB.N.CH) will delay the IPO of its e-mobility segment due to challenging market conditions. The company was expected to raise $750M while maintaining its majority stake. The company also said that it has not decided about
the sale/spin-off of its turbocharger business. The stock has reclaimed its 50-DMA but remains below its 200-DMA. It is trading in a stage-one consolidation base and has an RS Rating of 64 with a poor A/D Rating of E.
