Good afternoon/evening, Please see below for our usual MicroQuad and other weekly data updates, including the link to the Sector Distillation slides... As always, email us if you have any questions on any of the data or our takeaways - .
KEY CALL OUT
The call out in this AM's morning brief was the MicroQuad Model Portfolio, which continues to do well through October 15, 2021. MicroQuad 2 names continue to be the focus for new ideas into earnings, but we're also keeping a close eye on MicroQuad 1 for stocks that can move into MQ2. Our current long AMN has recently been in MicroQuad 4 as it come off the pandemic driven peaks in pricing and demand for COVID-related nurses, and in the Model Portfolio, it's slotted as a short. Despite the stock acting like "somebody knows something," we still haven't been able to uncover any fundamental drivers of the massive price drop last week. We are suspicious that the MicroQuad 4 estimate trend may be mirroring a quant signal or the unwind of a COVID long basket. We have the latest AMN Tracker update which is in process and we should have a note out shortly. Also worth noting, NeoGenomics skipped from MicroQuad 1 -> 4, which is unusual; however, if you look at NEO's position, it's nearly dead-center on the sigma chart and the forecast looks unlike any other MicroQuad 4 stock (or EXAS for that matter).
CLICK HERE for the full weekly update (our Sector Distillation deck).
Estimate Revision Trend
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's been some shifting around last couple of weeks. We've only got one Position Monitor stock in MicroQuad 2. As mentioned above, NEO slipped to 4, but as you'll see, we do not expect it to stay there long. Also, we'll keep an eye on the MQ3 stocks - EYE, NTRA, NVTA, and GH for movement back up to MQ2 or down and around to MQ4.
Position Monitor Stocks**
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.
**We may show stocks that we have data for but the correlation fails to meet the criteria for MQ bin inclusion week-to-week.
