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
We're seeing COVID cases fall nationally in the wake of the Delta peak, and Macro Quad 2 is playing out as the economy reopens and growth and inflation accelerate; however, new case counts remain stubbornly high (>70k), and companies are highlighting labor concerns on earnings calls. We were expecting to hear more positive commentary on the recovery as COVID cases declined. We can see in the Estimate Revision trends below that the trend is still under a bit of pressure, and while estimates are expected to cycle higher early in 2022, which could coincide with a less bullish macro backdrop, you can see that the sell side is not convinced that 2022 estimates need to move much higher from here. At least not yet.
CLICK HERE for the full weekly update (our Sector Distillation deck).
ESTIMATE REVISION TRENDS
MICROQUADS*
Noteworthy this week: AMN rotated back to MQ3, which is a long position in the model portfolio (vs. a short in MQ4), DGX slid to MQ4 (from MQ1), NEO remains stuck in MQ4 (however, it has the best looking forecast of all the MQ4 stocks), and then GH slipped to MQ4 as well.
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).
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.
