Carlisle Cos (CSL; $13B market cap; $92M ADV) We added CSL to the U.S. Focus List as the stock is trading close to its pivot after reclaiming its 50-DMA. The company is expected to benefit from material
demand for energy efficient buildings, synergies from acquisition of Henry Company, and re-roofing demand from commercial segment in the U.S. Management aims to reduce costs by 1-2% of sales annually
through 2025. Consensus expects sales CAGR of 18% and EPS CAGR of 45% over the next two years.
Author: gundaboina saikiran
O’Neil Capital Equipment Sector Weekly
Deere & Co (DE) – $96B market cap; $719M ADV: We removed Deere from our U.S. Focus List as the stock breached its 200-DMA on above average volume. The stock fell
14% on Friday after reporting mixed Q2 FY22 results. It missed revenue and operating profit estimates for equipment sales by 7% and 6%, respectively. The sales miss was
primarily due to lower-than-expected sales in its Ag and turf segments, pulled down by the supply chain constraints during the quarter. Inventories remain elevated, indicating
revenue tailwind for the coming quarters. We would like to revisit the stock if its technical profile improves.
O’Neil Capital Equipment Sector Weekly
Polycab India (POI.IN; $5B market cap; $12M ADV): Reported better-than-expected Q4 FY22 results yesterday. Revenue grew 35% y/y, beating consensus estimates by 11%, and EPS grew 19% y/y, beating estimates by 17%. The stock is currently testing resistance along its 50-DMA. We recommend that investors add to positions if the stock retakes its 50-DMA (+1%) on above average volume. On the downside, look for support at its 200-DMA (-4.0%)
O’Neil Capital Equipment Sector Weekly
Crane Co (CR) – $5.6B Mcap; $30M ADV – We removed Crane from our U.S. Focus List as the stock breached support at its 50- and 200-DMA on above average volume. It reported mixed Q1 FY22 results on Monday after market close. Revenue of $801M (+3% y/y) was slightly below estimates, while EPS of $1.81 (+9% y/y) beat estimates by 8%. Management had reiterated its FY22 adjusted EPS estimates of $7.00–7.40 (+10% y/y at the midpoint).
