Please see below for our usual MicroQuad and other weekly data updates. Let us know if you like this as a standalone note - we think it's easier to digest. As always, email us if you have any questions on any of the data or our takeaways. - .
KEY CALL OUT - Estimate Revisions & 2022 Consensus
The Estimate Revision trend looks like it has stalled out here with acceleration just shy of positive territory, likely due to Delta. We can see the FY 2022 trend grinding higher, but it looks like there's the potential for some pressure on estimates in 2H21. Q321 numbers and earnings commentary will be incredibly important in shaping the outlook for our Health Care stocks. We can't wait to stop talking about delta.
MICROQUADS*
As a reminder, if you have questions about the MicroQuad process, please try to find ~20 minutes to watch our Dec 30, 2020 call replay: Process & Utility of the Hedgeye Health Care #MicroQuads - CLICK HERE for event details (includes video link and materials link).
There are very few stocks left in MQ4 as things cycle around. Unfortunately, ONEM is stuck in a shallow position. The MQ1 bin is relatively full, and some of those stocks will rotate into MQ2, which is where there's the highest probability of positive returns. Note, we're seeing some positive revisions for NTRA, and we expect that to continue as the Street catches up with management's commentary and our estimates.
We didn't want to overload this week's note, so please CLICK HERE for the additional slides, including the MicroQuads backtest, Top & Bottom 20 lists, etc.
All data available upon request. Please reach out to with any feedback or inquiries.
Best,
Thomas Tobin
Managing Director
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William McMahon
Analyst
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Justin Venneri
Director, Primary Research
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*Please note, not all Position Monitor names make it into the MicroQuad output - most likely due to a lack of sufficient historical trading and estimate data.
