Good morning, If you have questions or anything else on your mind, email and we'll get back to you ASAP.
KEY CALL OUT
We moved ACHC from an active short to a long bench name around 1Q22 earnings. While organic growth slowed on the inpatient side as we expected, margins were better than our bear scenario and as we exited the quarter, hiring accelerated in our tracking data. Our tracking data for May will be out this week that show headcount of skilled labor by facility. The employment report also came out Friday and pushed us a little closer to an active long as aggregate hours, a proxy for demand, and average hourly earnings, which indicated wage growth, both improved. We've improved our visibility into ACHC's CTC business and built the monitoring tools to break it out from company comments and disclosures. The tracker for May will be a key point to pushing ACHC over the line.
Tracker updates are set for LFST, ATIP, ACHC, ONEM, and others this week. We'll also have the claims index for broad measures of consumption including Mammography, HPV and Pap testing, cancer screening, and orthopedic visits. 2Q22 continue to look like the worst of the tough compares on wages and volume, while the updates point to good sequential improvement into easier compares once we get to 2H22.
POSITION MONITOR
CLICK HERE for the updated workbook.
Quad-Factor Screen
ESTIMATE MONITOR
ZBH agrees with the sector set up and Med Tech with the best trend.
PERFORMANCE MONITOR
NVTA and other genetic testing getting hit around ASCO and initiations. Our beaten up longs DRIO and ATIP had a good week with the bounce.
FACTOR MONITOR
Large cap underperformed for the week and on a 1D basis, matching the bounce in high short interest stocks.
NEWS & TRanscripts
HCA, CYH: 13 hospitals scaling back care (Becker's Hospital Review) " Several hospitals are scaling back services for a variety of reasons, including financial challenges and staffing issues"
AMN, CCRN: 10 hospitals laying off workers (Becker's Hospital Review)
NTRA, EXAS: Liquid biopsy identifies who can skip chemo after colon cancer surgery -study (MarketScreener.com)
NVAX: NVAX trading (18.4%) to $45.70/shr [Intraday]. The stock is down 68% YTD. FDA published briefing materials on Friday morning ahead of Tuesday's VRBPAC meeting to discuss the EUA request for COVID-19 vaccine NVX-Cov2373. The FDA review also includes an overview of currently approved vaccines from Pfizer (PFE), Moderna (MRNA) and Janssen (JNJ). Investors are focused today on status of the company's CMC submission, an event of Guillain Barre Syndrome with temporal relationship to vaccination, and perhaps most concerning the lack of agreement with FDA on myocarditis risk. (StreetAccount)
COO: Cooper Companies trades lower on Q2 miss and guide down. COO reported Q2 EPS $3.24 ex-items vs FactSet $3.43 on revenue $829.8M vs FactSet $821.0M. Lowers FY22 guidance. Expects FY22: EPS $13.09 - $13.29 ex-items vs prior guidance $13.70-14.20 and FactSet $13.60; Revenue $3.280-3.312B vs prior guidance $3.261-3.329B and FactSet $3.28B. "So I'm really pleased with how the year is progressing. For the full year, we're increasing our organic revenue guidance for both businesses by incorporating our Q2 outperformance and the strength we're continuing to see. CooperSurgical's fertility business, which posted another double-digit growth quarter." (StreetAccount, Factset)
LNTH: LNTH assumed outperform at SVB Securities. No change to rating, estimates, or $100 price target. (StreetAccount).
EXAS: Piper Sandler analyst David Westenberg initiated five more names in Oncology Labs, with widely varied opinions. New OW ratings on GH, NEO;Neutral on ADPT,EXAS; and underweight on NVTA. New top pick among those 5 is Guardant Health; also names NTRAthe top pick if their long-range forecasts are correct. Reiterates OW rating (speculative) on OCX. (StreetAccount)
CALENDAR
All data available upon request. Please reach out to with any feedback or inquiries.
Have a great day out there!
Thomas Tobin
Managing Director
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William McMahon
Associate
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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.
