Key points from this week’s report:
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Author: Tristan d'Aboville
O’Neil Consumer/Retail Weekly
IRCTC
What’s happened? IRCTC reported Q4 FY21 results, with better-than-expected
revenue and weaker-than-expected net profit. We would like investors to hold
positions and look for support at the INR 1,900 level. If the stock breaches this
level, we would recommend that investors trim positions.
Trigano
Trigano (TRI.FR) is a leading manufacturer of recreational vehicles (RVs) in Europe with
30% share in Europe’s motorhome market. The leisure vehicles segment (92% of the
company’s revenue) includes motorhomes (three-fourths of the company’s revenue),
caravans, and mobile homes as well as accessories and services for leisure vehicles.
The leisure equipment segment (8% of the company’s revenue) consists of trailers,
camping equipment, and garden equipment. Some of the company’s brands include
Arca, Autostar, Challenger, Font Vendome, Chausson, and Notin.
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- We stay positive on European equities and recommend adding position to stocks breaking out of consolidation or forming the right side of a base on strong accumulation. Of the 17 indices we cover, including the Stoxx 600, 12 are in a Confirmed Uptrend and five in an Uptrend Under Pressure. Distribution remains at a historically low level.
- In a great first half for European equities, the value part of the market has been leading, but over the past three months, this trade has lost steam, and since April, growth has started to re-emerge. It may be too early to call, but investors should be ready soon for a new rotation toward value as our three-month oscillation chart of Value versus Growth points out the historically extended nature of growth versus value.
Nike
What’s happened? Nike reported 96% y/y growth in revenue and 106% y/y
growth in Gross Profit, both above expectations
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 snapped its four-week winning streak last week but remains in a Confirmed Uptrend with key support at its 50-DMA.
- The average distribution day count remains at lower levels despite inching up higher compared to the previous week.
- Of the 17 indices we cover, 13 indices are in a Confirmed Uptrend and four in an Uptrend Under Pressure. Last week, we shifted Sweden to a Confirmed Uptrend and downgraded Luxembourg and the U.K. to an Uptrend Under Pressure.
- We added Soitec (SOI.FR) to the Focus List. Other actionable names on the Focus List include Paragon Banking Group (PAG.GB), YouGov (YOU.GB), Carl Zeiss Meditec (AFXX.DE), Cellnex Telecom (CLNX.ES), Eurofins Scientific (EUF.FR), Trigano (TRI.FR), AirBus (AIRS.FR), Interroll (INRN.CH), and EQT (EQT.SE).
Arezzo
What’s happened? Arezzo announced the acquisition of Baw Clothing, an online
apparel retailer focused on young consumers. Through this acquisition, Arezzo is
moving toward becoming a house of brands and expanding its portfolio further
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 is in a Confirmed Uptrend with two distribution days. Of the 17 indices we cover, 14 indices are in a Confirmed Uptrend and three in an Uptrend under Pressure. The average distribution day count is down to 3 compared with 3.65 the previous week. We remain bullish on the markets and are open to adding risks coming out of proper bases.
- Health Care (+4.1% last week) led the gain. Although the sector is still underperforming the general market over the last 26 weeks, improvement in short-term momentum has gathered pace. From our Focus List, Carl Zeiss Meditec (AFXX.DE) is actionable. Outside of the list, stocks of interest include Ipsen (IPN.FR) and Genmab (GEN.DK).
- New Focus List Additions of the Week: Paragon Banking Group PLC (PAG.GB). Other actionable names on the Focus List include YouGov (YOU.GB), Intesa Sanpaolo (ISP.IT), Carl Zeiss Meditec (AFXX.DE), Cellnex Telecom (CLNX.ES), Trigano (TRI.FR), Airbus (AIRS.FR), Interroll (INRN.CH), and EQT (EQT.SE).
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- European equities hit a new record high last week, led by continued optimism over global economic recovery. The Stoxx 600 remains in a Confirmed Uptrend with three distribution days. The index is moving higher along its rising 50-DMA support in its upward trending channel that started in November 2020.
- Of the 17 indices we cover, 14 indices are in a Confirmed Uptrend and three in an Uptrend Under Pressure. We shifted Finland and the Netherlands to a Confirmed Uptrend.
- Energy and Transportation stocks led the gains. Our rotation chart continues to show improving momentum (over four weeks) of Utility, Health Care, Consumer Staple, and Retail.
- Focus List Update: We added AirBus (AIRS.FR), Interroll (INRN.CH), and EQT (EQT.SE) to the European Focus List.
- Other actionable names in the Focus List include Barco New (BAR.BE), Intesa Sanpaolo (ISP.IT), Novo Nordisk (NON.DK), Carl Zeiss Meditec (AFXX.DE), Cellnex Telecom (CLNX.ES), and Trigano (TRI.FR).
- Refer to page 4 for the European Watch List.