Author: Raj Gupta

Raj Gupta is Director, Research Analyst. After joining the firm in 2002 as a research analyst, Raj was appointed senior equity analyst in 2006, and lead senior equity analyst in 2014—largely because of his ability to select outperforming stocks. He acts as an expert in the O’Neil Methodology and contributes to the direction of product and service line development. He recommends securities for addition to or removal from the U.S. Focus List, or USFL, and the associated alerts to clients. During his tenure, he was part of the leadership that developed the Global Focus List, which marked the firm’s successful expansion into international equity recommendations. He is also a lead on the IPO Rewind report and contributes to weekly summaries on the performance of the U.S. market. Much of his expertise is delivered as highly customized service to clients. RAj earned his Bachelor’s degree in Economics from the University of California, Santa Barbara. He began working at the firm directly out of college, driven by his passion for investing and stocks. An avid soccer player, he built and managed an adult league in the Los Angeles area, in which he still plays. He also enjoys international travel; he and his wife commit to at least one major adventure a year.

U.S. Health Care Sector

Posted on by Raj Gupta

Some highlights from this report:

 

  • The Health Care ETF (XLV) broke out from a 13-month consolidation into all-time highs on November 15 and is currently trending higher off 21-DMA support.
  • Health Care is now in the top right quadrant in the sector rotation graphic across all three regions (Americas, EMEA, APAC).
  • In the U.S., Health Care has lagged for over four years versus the S&P 500. However, on a very long-term basis, it has usually competed with Retail for the top-performing spot. As the Relative Strength turn has just begun, we think the outperformance has room to persist and the time is right to overweight the sector once again. Looking at the past performance of stocks on our buy list, Health Care names have the highest average performance in the U.S.
  • In terms of stocks, we currently have 12 U.S. Focus List Health Care ideas. Top picks include BMY, DHR, ISRG, UNH, and VRTX.

 

Health Care Stocks to Watch — January 9, 2020

Posted on by Raj Gupta

Health Care’s performance have begun to sharply improve over the last six weeks following a four-year lag versus the S&P 500. Given its intact secular growth drivers, expectations for double-digit earnings growth in 2020, and strong technical breakout in November, we believe now is the time to overweight the sector. In this week’s webinar, available in the Research Library on PANARAY® and our website at 11am ET on Thursday, January 9, Executive Director, Research Analyst Raj Gupta will discuss the healthcare stocks that will get your portfolio in shape for the new year.

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend constructively
into higher highs. Both indices found support off their respective 10-DMA on Friday, closing off session lows. The
distribution count remains low with two days expiring next week.

Leadership has begun to narrow from peak levels with growth ( SPYG ) outperforming value ( SPYV ) to start the
new year. Though all 11 sectors remain above their respective 50-DMA, Technology has extended gains while
Consumer Staple, Utility, and Basic Material have pulled back. 162 of 197 industry groups also remain above
their respective 50-DMA, however this is down from 178 groups last week. Leading industry groups over the
past week include Aerospace Defense ( NOC ), Software ( COUP ), Internet ( JD ), Data Storage ( MU ), Fiber Optics
( LITE ), Semiconductors ( AMD ), and Oil & Gas ( PSXP ). Lagging industry groups over the past week include Steel
( X ), Food ( GIS ), Personal Care ( CL ), Utilities ( ED ), Biotech ( INCY ), and Reits ( WELL )

Market View

Posted on by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq remain constructive near all-time
highs despite being extended above their 21-DMA ( S&P 500: 3,169; Nasdaq: 8,752 ) and 50-DMA (S&P 500:
3,110; Nasdaq: 8,540). Distribution stands at three days on both indices.
All 11 sectors, 178 of 197 industry groups, and 81% of S&P 500 stocks are trading above their respective 50-
DMA. Commodities are under accumulation as Gold ( GLV ), Silver ( SLV ), and Oil ( USO ) each rose more than
+2% this week and outperformed all sectors. Leading groups over the past week include Mining (

), Oil &
Gas ( WPX ), Retail-Internet ( AMZN ), Auto Manufacturers ( TSLA ), Data Storage ( MU ), and Electronic Products
( OLED ).

Zoetis Update

Posted on by Raj Gupta

Key points:

 

  • The stock broke out of a nine-week flat base on twice the average daily volume, turning actionable. Add to positions. Should the stock pull back, look for the current pivot of $130 to hold.
  • Fundamental ratings: EPS Rank 93, Composite Rating 95, top SMR Rating A.
  • Technical ratings: RS line trending higher, RS Rating 87, A/D Rating B+.

Market View

Posted on by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trending into higher highs
above all moving averages. Near-term support is at the 10-DMA ( S&P 500: 3,181; Nasdaq: 8,786 ), followed by
the 21-DMA ( S&P 500: 3,153; Nasdaq: 8,690 ). Distribution remains at four days on both indices.
All 11 sectors, 179 of 197 industry groups, and 81% of S&P 500 stocks are trading above their respective 50-
DMA. Health Care, Consumer Cyclical, and Technology are each trading 5% or more above that level. Leading
industry groups over the last week include Auto Manufacturers ( TSLA ), Oil & Gas ( GPRK ), Data Storage ( MU ),
Semiconductors ( NVDA ), Lodging ( H ), Managed Care ( CI ), and Utilities ( NEE ).

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq made new all-time highs this
week, continuing to trend higher above all major moving averages. Distribution stands at four days each with no
expiration for two weeks.
Ten of 11 sectors, 167 of 197 industry groups, and 72% of S&P 500 stocks are trading above their respective
50-DMA. Health Care is leading over the trailing four, eight, and 13 weeks, despite pausing this week to consolidate gains. Consumer Cyclical and Technology are also performing well over the last month, while Energy has
recently rallied off four-month lows. Leading industry groups over the last week include Data Storage ( MU ), Semiconductors ( QRVO ), Pharmaceuticals ( BMY ), Gaming ( LVS ), and Mining ( PAAS ).

Market View

Posted on by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq consolidated gains this week, trad-
ing slightly lower but remaining above all major moving averages. The 21-DMA (S&P 500: 3,079; Nasdaq:

8,423) remains a primary level of near-term support. The distribution day count is low at two days each.
Nine of 11 sectors, 141 of 197 industry groups, and 67% of S&P 500 stocks are trading above their respective
50-DMA. Health Care is trading ~7% above its 50-DMA after breaking into new all-time highs this week. The
best performing industry groups this week include Biotech ( VRTX ), Long-Term Care ( AMED ), Managed Care
( UNH ), and Software ( SPLK ).

We remain positive on the general market. Despite sideways consolidation among the major averages, underly-
ing action across growth-oriented ideas and groups was very strong. Multiple ideas are breaking out from con-
solidation and pushing into higher highs. We continue to recommend selectively increasing risk in quality ideas

as they emerge from sound bases.