Good afternoon, 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
Every week, we look at the MicroQuad bins to see what's moved around, fallen out, etc. Some weeks there's more going on than others, but our model performance continues to hold up nicely. If you didn't catch this morning's brief, this week's update revealed some interesting and potentially actionable movement. If you're following along and using this for frame of reference, a benchmark, or second opinion on names you might know well, we see two COVID-comp stocks - Labcorp (LH) and West (WST) (testing and packaging/contract manufacturing for injectables, respectively) - moving between bins and landing in MicroQuad 4 (this is the "full short" bucket in the model). AMN and NEO remain stuck in MQ4, so we've got to make sure we still want to be there on the Long side in the Position Monitor - for now, we are good with them due to the near- and long-term outlook for staffing and cancer testing, respectively. Also worth noting, as analysts adjust estimates and the stocks move around, the correlation will fluctuate and a stock like Nanostring (NSTG) can drop and return to the "portfolio," which is the case this week as it rejoins Long Bench name 10x Genomics (TXG) in MicroQuad 2. Just two more observations to start the week: Pacira (PCRX) flipped back into MQ2 from MQ3 (a + development from the model's perspective), and Anthem (ANTM) rotated into MQ4 (-).
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).
Showing MQ2 and MQ4 here, 3 and one are in the linked presentation.
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.
