Author: Randy Watts

Randy Watts is Chief Investment Strategist for William O’Neil + Company. Mr. Watts manages William O’Neil + Company’s research department and guides the development of the company’s suite of services. He oversees the strategic direction and focus of the company’s research content, and his buy-side experience provides additional insight that allows the company to leverage its experience and expertise to help clients generate alpha. Mr. Watts has more than 25 years of equity asset management experience with specific focus on large- and small-cap growth stocks. He started his professional career as an Equity Analyst at Freedom Capital Management in Boston, MA. He spent nine years at Westfield Capital Management as an Equity Analyst then as a Partner and Portfolio Manager overseeing a $500+ million growth stock portfolio. Mr. Watts served as a Senior Managing Director for small- and mid-cap growth investments at The Boston Company, where he managed $4 billion in both long and long/short equity portfolios. During his tenure at the Boston Company, he hired, trained, and managed a team of investment professionals. Most recently, he ran a long/short equity hedge fund for Folger Hill Asset Management in New York, NY. Mr. Watts graduated from the University of Virginia with a degree in American Studies and is a Chartered Financial Analyst.

Strategy View Report

Posted on by Randy Watts

Offers the world’s leading institutional investment managers a distinct blend of quantitative, fundamental, and technical expertise in global stock buy-and-sell recommendations. Its core method profiles stocks displaying the characteristics of outperformance proven persistent over market history—drawn from the firm’s industryleading database.

William O’Neil + Co., Incorporated is a Registered Investment Advisor with the State of California and certain other states. The firm and its affiliates may now or in the future have positions in the securities mentioned in this or other publications. Charts are intended to be used as tools to assist institutional investors in identifying equity ideas worthy for further review. Charts provide certain current and historical information, but are not a substitute for comprehensive analysis of the individual stocks. For further information about our business and legal policies, please see williamoneil.com/legal.

Strategy View Report

Posted on by Randy Watts

U.S. equities markets have continued to be strong as we move through the third quarter. All major indices are up year-to-date. Distribution days, as calculated under the O’Neil Methodology, continue to be low across most indices. Large capitalization stocks continue to lead with growth stocks being favored. The top two sectors remain Technology (+16.34% YTD) and Health Care (+15.44% YTD). Small capitalization stocks continue to lag as evidenced by the Russell 2000’s performance. Generally, U.S. small capitalization stocks have higher exposure to the domestic economy than their large capitalization counterparts. Continuing lackluster U.S. economic growth may be the source of small capitalization stock underperformance.

Strategy View Report

Posted on by Randy Watts

Included in the report is a study on historical seasonal patterns in relation to Q2 earnings season and sector performance. Some highlights from the report: From S&P 500 companies, analysts expect some deceleration in Q2 2017 revenue and EPS growth compared to Q1 2017. Average gains during Q2 earnings seasons have been fairly muted since 2000. The market has had a very long rally already (including fresh new highs this week) without a 5%+ correction. Leading long-term sectors, Technology and Health Care, expect better growth than the S&P 500, and we expect these two to continue to perform, which should help the market. Also, two other key sectors, Financials and Energy, expect among the best EPS growth.

Macro View

Posted on by Randy Watts

We are cautiously optimistic on the U.S. stock market. Year-to-date, stocks have performed well, with the S&P 500 (+8.9% intraday 6/23/17) the Nasdaq (+16.1% intraday 6/23/17) outperforming the Russell 2000 (+3.5% intraday 6/23/17).