HD Hyundai Heavy Industries (HH3.KR): Reported Q4 FY24 results on Thursday. It reported mixed preliminary numbers three weeks back. Revenue (+17% y/y) came in slightly below estimates, while net income (+1,083% y/y) beat estimates by 105%. The stock bounced off its 21-DMA (-13%) and made a new all-time high. It is extended from an ideal entry point here. Wait for a low-volume pullback to its short-term moving averages before adding to positions.
Author: vipin khare
O’Neil Capital Equipment Sector Weekly
TransDigm (TDG): Reported mixed Q1 FY25 results yesterday before market open. Revenue (+12% y/y) missed estimates by 1%, and adjusted EPS (+9% y/y) beat estimates by 2%.
FY25 guidance was kept largely unchanged and missed consensus. After the mixed print, the stock declined 3.4% yesterday and breached its 100-DMA. Look for support at its 50-DMA
(-1%), followed by its 200-DMA (-3%).
O’Neil Capital Equipment Sector Weekly
AAON (AAON) – $9B market cap; $59M ADV: We booked a 52% gain and removed AAON from the U.S. Focus List as the stock gapped down below its 50-DMA and
breached its 100-DMA on 3.5x the average volume after China AI startup DeepSeek triggered a sell-off in data center infrastructure stocks globally. Support is near $106
O’Neil Capital Equipment Sector Weekly
EXL Service (EXLS) – $8B market cap; $43M ADV: We added EXL Service to the U.S. Focus List as the stock broke out of a stage-two six-week flat base on above average volume into a new all-time high and is actionable here. EXL Service is a data analytics and business process outsourcing (BPO) company. The company’s edge lies in deep domain expertise in insurance and healthcare industries, with nine of the top 10 U.S. insurers and six of the top 10 healthcare providers as its clients. Strong demand for its GenAI analytics products and an accelerating client activity is driving growth. Consensus expects revenue and EPS CAGR of 12% and 15%, respectively, in FY23–26. Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
Crane Company (CR) – $9B market cap; $38M ADV: We removed Crane Company from the U.S. Focus List as the stock breached support along its 200-DMA. The
company faces weak demand in its Process Flow Technologies segment, especially in the industrial market, and does not expect significant recovery in its MRO
business in Europe and China. It also expects FY24 free cash flow to be at the lower end of the $255M–275M range due to hurricane impact and supply chain issues in the aerospace industry. Next support is at $141.19 (-6%). Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
Morningstar (MORN) – $14B market cap; $47M ADV: We removed Morningstar from the U.S. Focus List as the stock breached support along its
100-DMA and has been lagging the broader market since addition. It reported mixed Q3 FY24 results in October. Organic revenue growth
decelerated to 10% y/y, for the first time since Q4 FY22, which could have weighed down on investor sentiment. Next support is at its 200-DMA
(-2%). Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
Cintas (CTAS; CTAS US) – $74B market cap; $317M ADV: We removed Cintas from the U.S. Focus List as the stock breached its 200-DMA following its Q2 FY25 results. The company has always surprised positively on the revenue front since Q4 FY19. However, this is the first time it has delivered in-line revenue, which could have weighed on investor sentiment. The company has highlighted that price increases are becoming difficult as inflation is coming down. Next support is at $176.44 (-3%).
O’Neil Capital Equipment Sector Weekly
Cintas (CTAS): Reported Q2 FY25 results. Revenue (+8% y/y) was in line with estimates, and EPS (+21% y/y) beat estimates by 7%. The stock breached its 200-DMA on above average volume post the print and
is trading below all its key moving averages. Support is at its recent low of $181.15 (-4%). It is 17% off its 52-week high.
O’Neil Capital Equipment Sector Weekly
Taylor Morrison Home (TMHC; TMHC US) – $7B market cap; $50M ADV: We removed Taylor Morrison Home from our U.S. Focus List as the
stock breached its 100-DMA on below average volume. Investors have been concerned about the company’s weaker-than-expected gross margin
outlook, due to continued pricing pressure as mortgage rates remain elevated. XHB, the homebuilders index, has also breached its 100-DMA,
indicating broader negative sentiment for the group. Next support for TMHC is at 200-DMA (-1%). Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
WEG (WG3.BR; WEGE3 BZ) – $39B market cap; $57M ADV: We added WEG to the Emerging Markets Focus List as the stock retook support
along its 50-DMA after bouncing off its 100-DMA recently. WEG is one of the world’s largest producers of electric motors. It also manufactures
transformers, generators, and systems for renewable energy. Rising investments in renewable energy and e-mobility end markets, expansion in
international markets, and depreciation of the Brazilian Real are the key growth drivers. Consensus expects revenue and EPS CAGR of 16% and
12%, respectively, in FY23–26. Fundamental & Technical note
