What’s happened? Developed markets focus list stock Jameison Wellness
reported strong Q3 results. Revenue grew 19.2% y/y, beating estimates by 6%
while adjusted EPS increased to $0.29, beating estimates by 2%. We
recommend that investors add to positions as the stock has reclaimed its 50-
DMA on high volume.
Author: Tristan d'Aboville
ELF Beauty
What’s happened? Developed Focus List constituent ELF reported strong Q2
FY21 results. Revenue grew 7% y/y, beating estimates by 6%, while EPS was
$0.16, beating estimates of $0.13. We recommend that investors hold on to the
stock and add to positions once it retraces to its 50-DMA
Dabur
What’s happened? Emerging Focus List constituent DAB.IN (Dabur) reported
strong Q2 results. Revenue grew 13.7% y/y, beating estimates by 8%, while net
profit grew 19.6% y/y, beating estimates by 9%.The company recorded a
volume growth of 16.8% y/y. We recommend that investors hold on to the stock
and add to the positions once it breaks above INR 525 price level on strong
volume.
Nomad Foods
What’s happened? Developed Focus List constituent NOMD’s shares
of NOMD are down 2.8% after the company reported a solid EBITDA, EPS beat
but sales growth for the quarter failed slightly short of expectations. We don’t
see so much risk on consensus FY estimates. Consensus may be slightly ahead of
management guidance but the company has consistently beaten estimates over
the past 7 quarters.
Monster Beverages Corporation
What’s happened? US Focus List constituent Monster Beverages Monster
Beverage reported Q3 FY20 results yesterday after market close. Revenue
increased 9.9%, beating estimates by 2%. The stock is forming a double-bottom
base. We recommend that investors add to positions on a breakout of $84.46
resistance.
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
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The Stoxx 600 is in a Downtrend along with 11 country indices. We recommend avoiding risk and playing defense as much as possible until our time-tested methodology moves the market back into a Confirmed Uptrend.
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Last week’s selloff has again triggered a new sector rotation. While our Value-Long call has dominated the market since the summer, last week’s news flow has pushed investors’ focus on defensive sectors. Refer to page 2 and 3 for a list of defensive plays.
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Short-term momentum of Technology stocks has continued to deteriorate. From our Focus List, we removed Fintech/payment stocks Nexi (NEXI.IT) and Worldline (WLN.FR).
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We recommend trimming positions in names that are extended from their 200-DMA and with deteriorating short-term technicals (e.g. Adevinta (ADEB.NO; $10.5B market cap)). In this report, we provide a list of stocks that are at risk using our Negative Alert Matrix. Refer to page 4 for the list.
Savola Group
What’s happened? Frontier Focus List constituent SAG.SA reported mixed Q3
results. Revenue was down 11% y/y, missing estimates by 5%, while net income
grew 28%, in line with estimates. We recommend holding onto the stock and
trimming positions if it breaks below its 100-DMA.
Swedish Match
What’s happened? Developed Focus List constituent Swedish Match Match
reported strong Q3 results in an interim report yesterday, beating both EPS and
revenue estimates. We recommend that investors hold on to the stock and add
to the positions as the stock has reclaimed 50-DMA on strong volume
Turning Point Brands
What’s happened? US Focus List constituent TPB reported strong Q3 FY21
results. Overall, revenue grew 7.6% y/y, beating estimates by 13%, while
adjusted diluted EPS grew 23% y/y, beating estimates by 134%. We recommend
that investors add to positions once the stock traces back to pivot.
Deckers
What’s happened? U.S. Focus List constituent reported Q2 FY21 results
after market close yesterday. The results were strong beating estimates
for both revenue and EPS. The stock remains extended, and we would
advise investors to wait for the next support on a retracement to the
50-DMA for a fresh addition.