Good afternoon, As always, email us if you have any questions on any of the data or our takeaways - . The first half of last week's
KEY CALL OUT
CLICK HERE for the full weekly update - our Sector Distillation deck.
Movement between bins this week includes several device/procedure volume driven stocks, as well as Pfizer (PFE) moving to a full short allocation. PFE faces the same COVID-comp issue as Moderna (MRNA), which is also stuck in MQ4, albeit to a lesser degree given its more diversified, established business. TDOC and EXAS remain stuck
Please note that the Estimate Trend finally shows an upturn within the window we've been eyeing, which is a new development as of this week's run. It also syncs nicely with what could be the end of a Macro Quad 4 regime, but time will tell (and we've got to see if BA.2 is actually going to be a serious problem).
CNMD is new to Micro Quad 2, and global surgical volume drives sales. The business mix is tilted toward international markets, but it still looks like a reopen play.
IART - a medical device/wound care play - is now a smaller long (coming from Micro Quad 4). AMN, BAX, and BDX remain Micro Quad 3 longs.
SEM & PFE are now full short allocations in the model. SEM has an interesting mix of outpatient therapy (PT, like ATIP) and post-acute care, and the stock has been under pressure since 4Q21 (Nov). The most recent leg down (-20% YTD) followed its 4Q21 guide down due to labor issues.
In Micro Quad 1, DHR and DXCM rotated to smaller short allocations from Micro Quad 4, and then BSX and IQV joined from MQ2 (the latter two are now small shorts vs. max longs, which is worth noting - we'll keep track of their performance this week).
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).
Stocks in bold are new to the bin this week.
ESTIMATE REVISION TRENDS
Position Monitor Stocks**
Model Portfolio Performance
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.
