GRUB – WILLIAM O'NEIL+CO

Global Laggards

Posted on September 16, 2021September 17, 2021 by Cornelio Ash

Highlighted Charts

U.S.: RPM (RPM), Wheaton Precious Metals (WPM), Reynolds Consumer Products (REYN), Boise Cascade Company (BCC), Nio (NIO), Norwegian Cruise Line (NCLH), Carnival (CCL), Sunnova Energy International (NOVA), Commerce Bancshares (CBSH), Inari Medical (NARI), Casey’s General store (CASY), Just Eat Takeaway.com (GRUB), Yum China (YUMC), Universal Display Corp (OLED), Ultra Clean Holdings Inc (UCTT), Qualcomm (QCOM), Go Daddy Inc (GDDY), PTC Inc (PTC), Electronic Arts Inc (EA), Clarivate Plc (CLVT), Twitter (TWTR), Union Pacific Corporation (UNP).

Global Laggards

Posted on April 23, 2020April 23, 2020 by Cornelio Ash

Highlighted Charts

U.S.: Ashland Global (ASH), Stericycle (SRCL), Grubhub (GRUB), Cannae (CNNE), Zimmer Biomet (ZBH), Dolby Laboratories (DLB), Ceridian HCM (CDAY).

Developed: Tosoh (TSHC.JP; 4042 JP), Makita (ML@N.JP; 6586 JP), SGS (SGSN.CH; SGSN SW), Sega Sammy (SESA.JP; 6460 JP), Saputo (SAP.CA; SAP CN), Barry Callebaut (BARN.CH; BARN SW), Partners (PGHN.CH; PGHN SW), Mani (MAII.JP; 7730:JP), Canon Marketing Japan (CS@N.JP; 8060 JP), Mtr (MTRC.HK; 66 HK).

Emerging: Uni President (PRE.TW; 1216TT), Sm (SNV.PH; SM PM), Win Semiconductor (WSN.TW; 3105 TT), Tata Consultancy Services (TSE.IN; TCS IN).

Global Laggards

Posted on February 28, 2019March 27, 2019 by Heetae Kim

Highlighted Charts

U.S.: Pan American Silver ( PAAS ), Adtalem Global Education ( ATGE ), Helen of Troy ( HELE ), Edgewell Personal Care ( EPC ), EQT Corporation ( EQT ), Interactive Brokers ( IBKR ), Encompass Health ( EHC ), Kar Auction Services ( KAR ), Domino’s Pizza ( DPZ ), Interdigital ( IDCC ), Allscripts Healthcare ( MDRX ), Jetblue Airways ( JBLU )

Developed: Henkel Ag ( HEN3X.DE; HEN3 GR ), Denso ( DE@N.JP; 6902: JP ), Fancl ( FANC.JP; 4921 JP ), Orkla ( ORK.NO; ORK NO ) Imperial Oil ( IMO.CA; IMO CN ), Hargreaves Lansdown ( HL.GB; HL LN ) Cochlear ( COH.AU; COH:AU ), Ferguson ( FERG.GB; FERG LN ), Hitachi Metals ( HM@N.JP; 5486 JP ), NTT Data ( COMM.JP;9613 JP )

Stocks worth focusing on in this week’s Global Laggards:

U.S.

Edgewell Personal Care ( EPC ) – Consumer Staple; $2.4B market cap – U.S.-based consumer products company with brands including Edge and Skintimate (shaving gels), Stay free and Carefree (feminine products), Playtex (infant care), and Bull Dog (skin care).

O’Neil Methodology

Shares are reverting from resistance at the down-sloping 200-DMA. Shares are trading 25% off 52-week high.
Poor RS Rating at 34 and down-sloping RS line.
Sharp deterioration in Group Rank at 166, compared to 70 on February 22.

Commentary

Edgewell faces heavy competition in the U.S. where it derives about 55% of its revenue. As of Q1 FY 2019, its market share in the shaving gels segment lost 120bps y/y, owing to stiff competition from P&G’s Gillette.
The Company’s Q1 FY 2019 revenue declined 2.4% y/y, better than consensus estimates of a 5% decrease. Organic net sales dropped 3.5% y/y owing to a fall in revenue from North America wet shave, feminine care, and infant care segments due to concentrated market competition.
Moreover for FY 2019, it expects a low single digit y/y decrease in net revenue and adjusted EPS of $3.30–3.6 (versus consensus estimates of $3.44). However, it reduced GAAP EPS estimates to $2.09–2.39 (versus its previous guidance of $2.2–2.5), as it considers certain expenses, including restructuring charges and integration costs.
Further, the U.S. Consumer Staples sector is currently under pressure owing to lower than expected earnings reported by most companies in the recent earnings season.

Global Laggards

Posted on February 21, 2019March 27, 2019 by Heetae Kim

This report has been curated by our sector analysts to find stocks showing technical weakness. We believe these stocks are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance.

Highlighted Charts

U.S.: Teck Resources (

), Proto Labs (

), Dish Network (

), Constellation Brands (

), Marathon Petroleum (

), Rayonier Reit (

), Teva Pharmaceuticals (

), Urban outfitters (

), Juniper Networks (

), Bottomline Technologies (

), American Airlines (

Developed: Kuraray (RK@N.JP; 3405 JP), Siemens (SIEX.DE; SIE GR), ITV (ITV.GB; ITV LN), Imperial Oil (IMO.CA; IMO CN), Resona (DBHI.JP; 8308 JP), Hisamitsu Pharmaceutical (HSMP.JP,4530 JP), Ain (DCL.JP; 9627 JP), Hitachi Metals (HM@N.JP; 5486 JP), NTT Data (COMM.JP; 9613 JP), Swedbank SA (SWED.SA).

Emerging: Hyundai Motor (HDR.KR; 005380 KS).

Stocks worth focusing on in this week’s Global Laggards:

Swedbank SA (SWED.SE) – Swedbank offers financial services in Sweden, Estonia, Latvia, and Lithuania. Its main offerings are mortgages, asset management, and card services.

O’Neil Methodology

The shares are reacting negatively over the last two sessions and are clearly trading below key support levels.
Poor fundamental ratings: EPS Rank of 68, Composite Rating of 42, SMR Rating of B.
Technical ratings: RS Rating of 35 (near all-time low), A/D Rating of B-.
The Bank-Money Center Industry Group of Sweden has sharply declined in rank over the last few weeks. The group is now ranked 75, down from 37 eight weeks ago.

Commentary

In the Danske Bank scandal, Swedbank is the latest Nordic bank to be linked to alleged money laundering.

Per Bloomberg, Nordic and Baltic banks were helping the former Soviet Union channel illegal funds to the West.
On Wednesday, Swedbank’s CEO said she couldn’t deny allegations from a Swedish media report that claimed Swedbank handled approximately $4B linked to Danske Bank’s suspicious activities.
The Estonian Financial Supervisory Authorities (FSA) announced it would start investigating immediately, with the Swedish FSA joining efforts. The Bank of Lithuania will also support the investigation.
Bill Browder, a London-based investor, said he intends to file criminal complaints against Swedbank over the allegations.
Browder claims he has sufficient evidence to show that Russian money launderers used the Nordic banking system to move funds illegally.
We believe the latest reports will bring continuous selling pressure to the stock, which will remain under pressure.

There may be downside support at the SEK 153 level, about 8% downside. But given how Danske Bank shares are trading, Swedbank shares may trend below this support level. We advise covering the short at the 200-DMA as a stop-loss.

Global Laggards

Posted on February 14, 2019March 27, 2019 by Heetae Kim

Highlighted Charts

U.S.: Bunge ( BG ), Dish Network ( DISH ), Hsbro ( HAS ), Delek US Holdings Inc ( DK ), Markel ( MKL ), Healthcare Svcs ( HCSG ), Central Garden Pet ( CENTA ), Penske Automotive Group ( PAG ), Netgear ( NTGR ), Amdocs ( DOX ).

Developed: Henkel ( HEN3X.DE; HEN3 GR ), Mitsubishi Chemical ( MCHC.JP; 4188 JP ), NGK Insulators ( KI@N.JP; 5333 JP ), Calbee ( CALB.JP; 2229 JP ), Subsea 7 ( SUBC.NO; SUBC NO ), Hargreaves Lansdown ( HL.GB; HL/LN ), Daiichi Sankyo ( D@SA.JP; 4568 JP ), Ain Holdings ( DCL.JP; 9627:JP ), Isetan Mitsukoshi Holdings ( ZW@N.JP; 3099:JP ), Hitachi Metals (HM@N.JP; 5486 JP), Nomura Research (NMRS.JP; 4307 JP), Nippon Yusen KK (NY@N.JP; 9101 JP).

Emerging: Sociedad Quimica y Minera De Chile ( SQB.CL; SQM/B CI ), Maruti Suzuki India ( MUD.IN; MSIL IN ).

Stocks worth focusing on in this week’s Global Laggards:

U.S.

Markel Corp ( MKL ) – Insurance-Property/Casualty/Title; $14B market cap – is a financial holding company offering insurance products primarily focused on specialty insurance.

O’Neil Methodology

The stock is facing strong resistance along its declining 50-DMA.
Poor fundamental ratings: EPS Rank of 26, Composite Rating of 20, SMR Rating of D.
Technical ratings: RS Rating of 27 (near all-time low), A/D Rating of D-.
Pretax margin and ROE have deteriorated over the last four years, and currently stand at 0% and -1%, respectively.
The Insurance-Property/Casualty/Title industry group has sharply declined in rank over the last few weeks. The group is now ranked 97, down from 26 eight weeks ago.

Worsening Combined Ratio During the Last Two Years

The combined ratio of the Company has significantly deteriorated over the last few years. In 2018, it managed to improve, but it remains higher than the industry median of 92%.

Global Technology/Cyclical Sector–Internet and Media

Posted on December 12, 2018February 1, 2019 by Derek Higa

Key Points

After worsening in the first half of 2018, all Old Media industry groups recovered in the second half of the year, and now rank among the top 30 positions in our 197 Industry Groups (IG).

The Media-Radio/Tv (IG Rank 7) and Telecom Svcs-Cable/Satl (IG Rank 15) are now in the top 20 in our IG ranking.

The New Media value chain continues to evolve. Netflix still leads the way in OTT streaming, but the upcoming launches of comparable platforms such as Disney+ in late 2019 will change the competitive landscape.

Internet stocks continue to be under pressure, led by FB (March 20 removal) and GOOGL (November 19 removal). Other Internet names, including YELP, MTCH, GRUB, and ROKU, declined sharply following disappointing earnings results or guidance.

Stocks detailed in this report include: DIS, CMCSA, VZ, NFLX, FB, TWTR, and RCI/B.CA (the latter is on our Focus List). In Asia, Info Edge (

), PVR (

), Studio Dragon (

), and VGI Global Media (

Market View

Posted on October 26, 2018February 1, 2019 by Raj Gupta

The U.S. market is in a Downtrend. The S&P 500 and Nasdaq continue to make lower lows. We are now look-
ing for the intraday lows from Friday ( S&P 500: 2,628; Nasdaq: 7,057 ) to hold through Wednesday before

looking for a follow-through day. Ideas continue to whipsaw with the majority still on the left side of their respec-
tive bases. There remains little to no leadership outside of defensive sectors. The U.S. Focus List count has fallen

from a high of 80 year-to-date to 44 today ( 14 removals this week ) due to severe technical deterioration. We,
therefore, remain cautious until we see a follow-through day that coincides with quality growth ideas regaining
prior levels of support in strong volume.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 44 ideas lost 5.3% on average this week, underperforming the S&P 500 ( -3.9% ) and the Nasdaq ( –
3.8% ).
USFL ideas weekly earnings line-up:
Monday: Close: QTNA, WING
Tuesday: Open: FIS, FLIR, GPN, MA; Close: PAYC, PRAH
Wednesday: Close: SSNC
Thursday: Open: IDXX, ZTS; Close: CHEF
Friday: Open: ROLL
By Sector
Outside of Consumer Staple, all sectors remain weak. LW and MKC are two of only four U.S. Focus List ideas
trading above their respective 50-DMA. CVGW, though below its 50-DMA, has an RS line that is hitting new
highs. The weakest sector is Energy. FANG is again testing the low end of support at $110, while CDEV and NEP
have broken below their respective 200-DMA. Technology and Health Care ideas also remain weak. VEEV,
PAYC, INTU, QTNA, CRM, and ADBE are now testing their 200-DMA, while NOW, GOOGL, and SSNC have
broken below that level. IDXX and EW, within Health Care, are also trading below their respective 200-DMA.

US Focus Long

Posted on October 26, 2018October 28, 2018 by Midhun Parameswaran

The U.S. market is in a Downtrend. The S&P 500 and Nasdaq continue to make lower lows. We are now looking for the intraday lows from Friday (S&P 500: 2,628; Nasdaq: 7,057) to hold through Wednesday before looking for a follow-through day. Ideas continue to whipsaw with the majority still on the left side of their respective bases. There remains little to no leadership outside of defensive sectors. The U.S. Focus List count has fallen from a high of 80 year-to-date to 44 today (14 removals this week) due to severe technical deterioration. We therefore remain cautious until we see a follow-through day that coincides with quality growth ideas regaining prior levels of support in strong volume.

Market View

Posted on October 19, 2018February 1, 2019 by Raj Gupta

are concerned with the lack of leadership in the market as well as the negative reactions to positive earnings re-
sults over the past week. We, therefore, continue to recommend a defensive posture, avoiding new buys and

selling ideas that have broken long-term support. If we get a follow-through day next week, we will upgrade the
market, however, our recommendation will be to gradually increase risk should that occur, with a focus on high
relative strength quality ideas with improving A/D Ratings that have either held or regained their respective 50-
DMA.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 58 ideas lost 1.4% on average this week, underperforming the S&P 500 (flat) and the Nasdaq (-
0.6%).
Actionable Focus List Ideas: Centennial Resource Dvlp ( CDEV ), Lamb Weston ( LW ), Nomad Foods ( NOMD ),
Unitedhealth ( UNH ), Zoetis ( ZTS )
USFL ideas weekly earnings line-up:
Tuesday: Open: NEP; Close: EW, ILMN
Wednesday: Close: ALGN, AMD, NOW, V, VRTX, XNLX
Thursday: Open: GRUB, UNP; Close: AMZN, GOOGL, SIVB
By Sector
Outside of Consumer Staple, all sectors remain weak. Technology ideas within the U.S. Focus List continue to
trade lower. Multiple ideas have been removed from the USFL, with others including ATVI, AMD, MTCH, PSTG,
GOOGL, and SSNC breaking back under individual support levels. Health Care ideas on the USFL remain weak
as well. ABMD, PRAH, and ILMN are living below their respective 50-DMA, while ALGN and IDXX are testing

support along their 200-DMA. ZTS and UNH continue to hold up well on a relative basis. Consumer Staple ide-
as are also acting well on a relative basis; NOMD, LW, and MKC are all trading at or near new highs.

US Focus Long

Posted on October 19, 2018October 19, 2018 by Midhun Parameswaran

The U.S. market is in a Rally Attempt. The S&P 500 and Nasdaq have now held above the October 11 intraday low (S&P 500: 2,710; Nasdaq: 7,274) for six sessions, but have yet to stage a follow-through day. Ideas, like the major averages, continue to whipsaw around within their respective bases and few are even trading above their respective 50-DMA. We removed 14 U.S. Focus List ideas over the last two weeks due to technical deterioration and eight of the current 58 (~14%) are still trading below their respective 200-DMA and at risk of removal. We are concerned with the lack of leadership in the market as well as the negative reactions to positive earnings results over the past week. We therefore continue to recommend a defensive posture, avoiding new buys and selling ideas that have broken below long-term support. If we get a follow-through day next week, we will upgrade the market, however, our recommendation will be to gradually increase risk should that occur, with a focus on high relative strength quality ideas with improving A/D Ratings that have either held or regained their respective 50-DMA.