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.
Overall, there wasn't much movement between the bins this past week; however, Masimo (MASI) slid back to a Micro Quad 4 position, which is a full short allocation in the model (from a Micro Quad 3 long). The estimate revision trend continues to "lift" and improve, with a cycle bottom in mid-July.
Several stocks fell out of the model portfolio this week. As a reminder, our screening process includes a $2B threshold, and Friday's market action took OPK, MD, and TWST below that level. There's also a correlation threshold, and BAX, which remains a Best Idea Long and in Micro Quad 3 if we force it, fell below that level given its recent stock price weakness vs. NTM estimate momentum.
New Shorts: MASI
Micro Quad 1 remains of interest, as several of our Position Monitor stocks sit in this smaller short allocation bucket, including EXAS, which just reported a top line beat for 1Q22 but seems to have maintained the previous guidance range around the $2B mark for the year, HCA, TXG, and EYE.
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.
