Author: vipin khare

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

EXL Service (EXLS) – $7B market cap; $101M ADV: We removed EXL Service from our U.S. Focus List as the stock breached support along its 200-DMA and is facing
resistance at that level. On June 20, Accenture reported its Q3 FY25 results. Its bookings declined 7% y/y, with the slowdown in generative AI-related bookings growth. This suggests
softer client demand, which is weighing on IT services peers, including EXL Service. Support is at $43.00 (-4%). Fundamental & Technical note

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Boeing (BA): A broker upgraded the stock to Buy from Neutral and raised price target by ~53% to $275 from $180, citing positive operational and financial improvements at the company
since the new CEO took office last year. The stock reclaimed its 21-DMA on above average volume. It is trading above all its key moving averages and 4% off its 52-week high. RS line
has been flat over the past few weeks but has a good RS Rating of 86. Acc/Dist Rating of B.

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Tecnoglass (TGLS) – $4B market cap; $27M ADV: We removed Tecnoglass from the U.S. Focus List as the stock pulled back sharply after a failed breakout and breached its 50-
DMA. On June 18, U.S. housing data came in weaker than expected, with housing starts and building permits down 9.8% m/m and 2.0% m/m, respectively. This could have weighed
down on the stock. It is testing support at its 100-DMA, with next support at its 200-DMA (-1%). Fundamental & Technical note

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

HD Hyundai Marine Solution (HH5.KR; 443060 KS) – $7B market cap; $41M ADV: We added HD Hyundai Marine Solution to the Emerging Markets Focus List as the stock broke out of a stage-one, 20-week
cup base on above average volume into a new all-time high and is actionable here. The company is the only player offering full ship lifecycle services (repair, maintenance, and retrofit) under one roof. Key growth
drivers include its preferred vendor status for all aftermarket work on HD Hyundai-built vessels (the world’s largest shipbuilding group), rising share of dual-fuel engine ships, and strong demand for eco-friendly
retrofit systems to reduce emissions. Consensus expects revenue and EPS CAGR of 18% and 22%, respectively, in FY24–26. Fundamental & Technical note (HH5.KR

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Sector Summary

  • XLI has underperformed the S&P 500 by 80bps over the past five days and outperformed by 670bps year-to-date.
  • We are Overweight on the Capital Equipment sector in the U.S. and Emerging Markets Focus Lists and Underweight on the sector in the Developed Markets Focus List.
  • In terms of industry groups (#1=best; #197=worst):
    • Top-ranked groups include Steel-Specialty Alloys (#3), Aerospace/Defense (#5), and Security/Sfty (#19).
    • Lowest-ranked groups include Bldg-Wood Prds (#194), Comml Svcs-Staffing (#186), and Bldg-Resident/Comml (#183).
  • Containers/Packaging (#122 versus #150 last week), Trucks & Parts-Hvy Duty (#144 versus #167), and Machinery-Constr/Mining (#111 versus #134) have shown the most improvement in Group Rank over the last week.

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare
  • XLI has underperformed the S&P 500 by 50bps over the past five days and outperformed by 760bps year-to-date.
  • We are Overweight on Capital Equipment sector in the U.S. and Emerging Markets Focus Lists and Underweight on the sector in the Developed Markets Focus List.
  • In terms of industry groups (#1=best; #197=worst):
    • Top-ranked groups include Aerospace/Defense (#4), Steel-Specialty Alloys (#9), and Bldg-Heavy Construction (#24).
    • Lowest-ranked groups include Bldg-Wood Prds (#196), Bldg-Resident/Comml (#184), and Bldg-Mobile/Mfg & Rv (#178).
  • Bldg-Constr Prds/Misc (#112 versus #150 last week), Bldg-Maintenance & Svc (#83 versus #107), and Machinery-Farm (#38 versus #53) have shown strength and improvement in Group Rank over the last week.

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare
  • XLI has performed in line with the S&P 500 over the past five days and outperformed by 810bps year-to-date.
  • We are Overweight on Capital Equipment sector in the U.S. and Emerging Markets Focus Lists and Underweight on the sector in the Developed Markets Focus List.
  • In terms of industry groups (#1=best; #197=worst):
    • Top-ranked groups include Aerospace/Defense (#5), Steel-Specialty Alloys (#11), and Security/Sfty (#25).
    • Lowest-ranked groups include Bldg-Wood Prds (#192), Comml Svcs-Staffing (#188), Bldg-Resident/Comml (#185), and Bldg-Hand Tools (#176).
  • Bldg-Heavy Construction (#38 versus #50 last week) and Machinery-Gen Industrial (#84 versus #96) have shown strength and improvement in Group Rank over the last week.

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Sector Summary

  • XLI has outperformed the S&P 500 by 80bps over the past five days and 810bps year-to-date.
  • We are Overweight on Capital Equipment sector in the U.S. and Emerging Markets Focus Lists and Equalweight on the sector in the Developed Markets Focus List.
  • In terms of industry groups (#1=best; #197=worst):
    • Top ranked groups include Aerospace/Defense (#7), Steel-Specialty Alloys (#11), and Security/Sfty (#24).
    • Lowest ranked groups include Bldg-Wood Prds (#191), Comml Svcs-Staffing (#181), Trucks & Parts-Hvy Duty (#171), and Bldg-Resident/Comml (#169).
  • Comml Svcs-Market Rsrch (#76 versus #108 last week), Comml Svcs-Consulting (#56 versus #76), and Comml Svcs-Outsourcing (#67 versus #83) have shown strength and improvement in Group Rank over the last week.

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Sector Summary

  • XLI has outperformed the S&P 500 by 1% over the past five days and 7% year-to-date.
  • We are Overweight on the Capital Equipment sector in the U.S. and Emerging Markets Focus Lists and Underweight on the sector in the Developed Markets Focus List.
  • In terms of industry groups (1=best; 197=worst):
    • Top ranked groups include Aerospace/Defense (Rank 3), Steel-Specialty Alloys (9), and Security/Sfty (26).
    • Lowest ranked groups include Bldg-Wood Prds (Rank 190), Metal Prds-Distributor (186), Trucks & Parts-Hvy Duty (178), and Bldg-Resident/Comml (172).
  • Machinery-Constr/Mining (Rank 69 vs. 159 last week), Security/Sfty (26 vs. 79), Bldg-Heavy Construction (43 vs. 94), and Bldg-Maintenance & Svc (96 vs. 125) have shown strength and improvement in Group Rank over the last week