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.

Hong Kong Health Care

Posted on by Raj Gupta

Key points from this report:

 

  • We continue to recommend overweighting Hong Kong Health Care. See our October 21 report here.
  • Hong Kong’s Health Care sector has been consolidating for two months and is now beginning to show technical improvement. The industry backdrop remains favorable.
  • Focus List is overweight Health Care, with seven out of 18 Focus List stocks.
  • Hong Kong Health Care Focus List stocks have RS Ratings between 62 and 95.
  • Focus List ideas:
    • Extended leaders: Wuxi Biologics ( WXBO.HK; 2269 HK ), Wuxi Apptec ( WUXA.HK; 2359 HK ).
    • Newly actionable: Shandong Weigao ( SDW.HK; 1066 HK ).
    • Setting up: Hansoh Pharma ( HANP.HK; 3692 HK ), Jinxin Fertility ( JIFG.HK; 1951 HK ), Viva Biotech ( VIVB.HK; 1873 HK ).
    • Basing: Yichang Hec Changjiang Pharma ( YHEC.HK; 1558 HK ).

Health Care Conference

Posted on by Raj Gupta

Key points from this report:

 

  • Ideas are showing positive technical trends, holding above key price and/or moving average support.
  • Ideas also have either positive fundamental ratings and rankings, and/or accelerating annual EPS growth.
  • Included are 36 annotated charts.

 

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 staged downside reversals Friday
but continue to hold trend with a low number of distribution days. Near-term support remains the rising 10- and
21-DMA. Distribution stands at three days on the S&P 500 and two on the Nasdaq, with one day expiring on
each Tuesday.
Ten of 11 sectors, 152 of 197 industry groups, and 73% of S&P 500 stocks are trading above their respective
50-DMA. Leading industry groups over the past week include Software ( CRM ), Internet ( GOOGL ), Medical
Equipment ( ISRG ), Managed Care ( UNH ), Aerospace/Defense ( CAE ), and Payment Processors ( GPN ). Lagging
industry groups over the past week include Transportation Equip Mfg ( TRN ), Oil & Gas ( NBL ), Mining ( AG ), and
Discount Retail ( OLLI ).

Vertex Pharmaceuticals

Posted on by Raj Gupta

Key points from this report:

  • The stock broke above a tight trading range with support off its 50-DMA. Add to positions.
  • Fundamental ratings: EPS Rank 97, best Composite Rating 99, and top SMR Rating A.
  • Technical ratings: RS line near all-time highs, RS Rating 90, A/D Rating B+.

Sartorius

Posted on by Raj Gupta

Key points from this report:

  • The stock broke out of a stage-two cup-with-handle base, turning actionable. Add to positions.
  • Fundamental ratings: EPS Rank 94, best Composite Rating 99, top SMR Rating A.
  • Technical ratings: RS line rising, RS Rating 80, A/D Rating B-.

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+.