O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-
DMA. It is currently consolidating just below its 200-DMA. A decisive break above 200-DMA should be bullish for the sector. However, it
continues to lag the broader market, with RS line remaining in a downtrend with weak technical ratings.

Europe: Finding New Investment Ideas Through O’Neil Sector Score Cards

The report delivered on Mondays by email, includes Sector Score Cards, which provide insight into leaders, actionable ideas (buyable), and laggards using O’Neil Proprietary Ratings and Rankings.

 

In this eight minute webinar, Tristan d’Aboville and Indrajith JC from the O’Neil Research Team explain what is behind the Score Cards and how to use them to spot new ideas, supported by examples on BAE systems (BA.GB), Siegfried (SFZN.CH) and ASML (ASML.NL).

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-
DMA. It is currently consolidating just below its 200-DMA. A decisive break above the 200-DMA should be bullish for the sector.
However, it continues to lag the broader market, with RS line remaining in a downtrend with weak technical ratings.

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-DMA
and is consolidating just below the moving average. A decisive break above its 200-DMA should be bullish for the sector. However, the
index continues to lag the broader market, with the RS line in a downtrend and weak technical ratings.

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • European markets closed in the red and declined the most on a weekly basis since October 2023. The Stoxx 600 along with a majority of the indices are still in a Confirmed Uptrend and trading near their short-term moving averages. The Stoxx 600 has support at its rising 21-DMA but is extended from its key support levels (50-, 100-, and 200-DMA). Thus, we recommend booking profits in extended names. Be selective in adding top-rated names that are breaking out of proper bases and wait for the rising 50-DMA to catch up.
  • Sector were mixed. Healthcare gained the most, while consumer cyclical led the decline. On our rotation graph, financial, capital equipment, healthcare, transportation, and retail are showing improvement in short-term momentum. Energy, technology, and utilities are showing a decline in their short-term momentum. 
  • European Focus List Update:
    • Actionable names include Bae Systems (BA.GB; BA/LN), Bridgepoint Grp (BPT.GB; BPT LN), Recordati Indua.Chimica (REC.IT; REC IM), Safran (SGM.FR; SAF FP), Swedish Orphan Biovitrum (SOBI.SE; SOBI SS), Siegfried ‘R’ (SFZN.CH; SFZN SW), Ypsomed Holding (YPSN.CH; YPSN SW), Inditex (IND.ES; ITX SM), and Beiersdorf (Xet) (BEIX.DE; BEI GR).
    • Addition: None
    • Removal: None

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-DMA. It is currently consolidating just below its 200-DMA. A decisive break above 200-DMA should be bullish for the sector. However, it continues to lag the broader market, with RS line remaining in a downtrend with weak technical ratings.

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index continues to stage its recovery and has reclaimed its 100-DMA. It is now facing resistance at its
200-DMA and consolidating just below the moving average. A decisive break above its 200-DMA should be bullish for the sector.
However, the index continues to lag the broader market with RS line in a downtrend and weak technical ratings.

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index continues to recover and has reclaimed its 50-DMA. It is now facing resistance at the 100-DMA.
If it manages to reclaim that, the next level of resistance is at the 200-DMA (2.5% above). However, it continues to lag the broader
market, with the RS line remaining in a downtrend with weak technical ratings.

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • European market has had a strong rally since November. Major markets, such as the Stoxx 600, CAC 40, and DAX, are either at or have made new 52-week highs. The Stoxx 600 was shifted to a Confirmed Uptrend last week. Among the 16 markets covered in this report, a majority are now in a Confirmed Uptrend and the average distribution is low at 2.5 on average. Thus, we recommend adding risk in leading industry groups that are breaking out of proper bases with strong and rising RS lines.
  • Sectors: Most sectors either closed in the green or flat. Cyclical and Utility led the gains, while Energy declined the most. On our rotation graph, as mentioned last week, we are seeing improvement in short-term momentum in lot of sectors, such as Retail, Staple, Transportation, Financial, and Cyclical. Energy and Tech, which were in the best quadrant, showed decline in their short-term momentum. 
  • Sectors Score cards – Stocks of interest:  Informa (INF.GB), Addtech (ADDT.SE), Hermes (RMS.FR), B&M (BME.GB). Refer from page 9 to 21.
  • European Focus List Update:
    • Actionable names include Sanlorenzo (SANL.IT; SL IM), Nemetschek (Xet) (NEMX.DE; NEM:GR), Asm International (ASIN.NL; ASM NA), Inditex (IND.ES; ITX:SM), WISE A (WISE.GB; WISE: LN), Adidas (ADSX.DE; ADS:GR), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Ypsomed Holding (YPSN.CH; YPSN:SW), and Safran (SGM.FR; SAF:FP).
    • Addition: Sanlorenzo (SANL.IT)
    • Removal: Technip Energies (TECE.FR); Games Workshop (GAW.GB).