Good afternoon, As always, email us if you have any questions on any of the data or our takeaways - .
KEY CALL OUT
CLICK HERE for the full weekly update - our Sector Distillation deck.
Movement between bins this week includes several relevant stocks shifting to Micro Quad 1, which is a smaller short allocation in the model portfolio, and Micro Quad 4 short ideas remain interesting given the Quad 4 macro backdrop and some tough COVID comps. For example, TDOC remains "stuck" in Micro Quad 4 despite a bullish sell side initiation last week.
Per this morning's Brief, we're watching HCA closely and are seeing some signs that labor markets for Health Care are easing across various trackers. Labor availability and inflation have been major concerns, but we've been seeing a simultaneous uptick in health care demand which lines up with pent up demand and the ebbing Omicron variant, as well as the historical acceleration health care typically sees during Quad 4. The latter point is clearly happening, and we can see it in the Estimate Trend charts below.
New/heavier Longs in the model portfolio: MASI and PODD
Longs with reduced exposure this week: GKOS
New/heavier Shorts in the model portfolio: none
Shorts with reduced exposure this week: HCA and OPCH
MICROQUADS*
If you have questions about the #MicroQuad process and how we're using it, please try to find ~13 minutes to watch the beginning of our March 24, 2022 call replay: Quad, Factor, Fundamentals, or How to Find A Story Worth Telling - CLICK HERE for event details (includes video and materials link, as well as an overview of our Factor Scoring work). 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.
