Author: vipin khare

Industrials Conference

Posted on by vipin khare

Key points from this report:

  • The following select ideas are showing near term relative strength while displaying good O’Neil Fundamental ratings and rankings: RHMX.DE, HWM, SNA, RBC, AZZ, PBI, REVG, BBSI
  • The following select ideas are showing near term technical weakness with poor O’Neil Ratings and Rankings: BA, PH, CARR, ROK, ALLE, ITT, MTZ, AIT, RKLB, TKR, VNT, THO, ENS, PRIM, NSP, OSIS, ALRM, PATK, LCII, ATKR, POWL, SXI, CDRE, NVEE, ARLO, BLBD, THR, ERII, LMB, CECO, AIOT, AMSC, RDW, LUNR, HY

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Rheinmetall (RHMX.DE): Reported FY24 results today before market open. Revenue (+36% y/y) missed estimates by 2%, while diluted EPS (+37% y/y) missed
estimates by 15%. The stock is making new highs and is very extended from all its key moving averages. Investors could book some gains in strength here. Wait for the long-term moving averages to catch up and the stock to form a new base before adding positions.

Industrials Conference: Annotated Charts For Select Ideas

Posted on by vipin khare

Key points from this report:

  • The following select ideas are showing near-term relative strength while displaying good O’Neil Fundamental ratings and rankings: EA3.BR, MMM, and AER.
  • The following select ideas are showing near-term technical weakness with poor O’Neil Ratings and Rankings: HON, HRI, VRT, TT, PNR, HUBB, CTOS, KMT, R, AL, ROK, DOV, ATS.CA, AVY, RS, ATI, AGCO, GTES, LMT, and REZI.

Rolls-Royce (RR.GB) – Trim Positions as the Stock is Forming a Climax Top

Posted on by vipin khare

Key points from this report:

 

 

  • RR.GB has formed a climax top on the daily chart with five criteria. We recommend investors book some profits into strength and wait for a new base formation and a traditional buy point from the O’Neil perspective for adding positions.
  • We are not taking it off the Focus List as the stock continues to trade above all its key moving averages.
  • Included is an annotated Datagraph® of RR.GB highlighting climactic top signals.

Rheinmetall (RHMX.DE) – Trim Positions as the Stock is Forming a Climax Top

Posted on by vipin khare

Key points from this report:

 

  • RHMX.DE has formed a climax top on the daily chart with four criteria. We recommend investors book some profits into strength and wait for a new base formation and a traditional buy point from the O’Neil perspective for adding positions.
  • We are not taking it off the Focus List as the stock continues to trade above all its key moving averages.
  • Included is an annotated Datagraph® of RHMX.DE highlighting climactic top signals.

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Federal Signal (FSS) – $5B market cap; $35M ADV: We removed Federal Signal from the U.S. Focus List. The stock breached its 200-DMA decisively post weak Q4
FY24 results on Wednesday and is trading below all its key moving averages. Revenue from the safety and security systems segment increased only 1% y/y in Q4.
Order growth has decelerated in the past few quarters. Consensus is in line with the midpoint of the company’s guided EPS range for FY25. We believe earnings
upgrades are unlikely in the near term. Next support is at $76.85 (-4%). Fundamental & Technical note

Industrials Themes

Posted on by vipin khare

Key points from this report:

 

  • Existing home inventories have shrunk as homeowners do not want to give up their low mortgage rates booked during 2020–2021.
    • This is driving prices for traditional homes higher.
  • The housing deficit in the U.S. is good for overall new homes demand.
  • But due to higher mortgage rates and high traditional home prices, buyers are unable to afford.
    • In this scenario, revenue and earnings of traditional homebuilders are taking a hit.
  • The demand for factory-built homes, which costs about one-third of site-built homes, could increase.
  • Included are annotated Datagraphs® for:
    • Traditional homebuilders (those that we like and would wait for better technical action before entering): DHI, LEN, TMHC, GRBK; and
    • Factory-built home manufacturers: CVCO, SKY.

Industrials Themes

Posted on by vipin khare

Key points from this report:

  • Defense budgets across European nations are expected to swell over the next few years as the U.S. might pressure NATO members to raise the defense spending target to 5% of GDP, up from the current target of 2%. European defense contractors stand to benefit.
  • With their competitive lead times and lower costs, South Korean defense contractors stand to gain from the EU struggling to raise its defense production capacity after years of decline.
  • Included are annotated Datagraphs® for defense contractors in Europe and South Korea: RHMX.DE, CSF.FR, LDO.IT, KOG.NO, AM@F.FR, SAAB.SE, HAGX.DE, SGA.KR, HRO.KR, LNX.KR, and ZCM.KR.

O’Neil Capital Equipment Sector Weekly

Posted on by vipin khare

Alfa Laval (ALF.SE; ALFA SS) – $18B market cap; $25M ADV: We removed Alfa Laval from the Developed Markets Focus List as the stock breached its 200-
DMA on above average volume after its Q4 FY24 print two weeks back. Revenue and EPS missed estimates by 4% and 9%, respectively. Weak demand for
heat pumps continues to impact revenue growth. Support is at SEK 457 (-4%), followed by SEK 452 (-5%). Fundamental & Technical note