• Bull.




Takeaway: This edition of The Call @ Hedgeye will air Wednesday, 11/8 at 7:45 am ET. Replay will be available shortly after the broadcast.

Editor's Note: Below is complimentary access to "The Call @ Hedgeye." The Call features our entire research analyst team live before the market opens for deep-dive investing analysis, our favorite stock ideas and our Risk-Manager-In-Chief Keith McCullough’s Macro overlay. Also, see "The Call" broadcast summary below.

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Broadcast Summary

Restaurants: Howard Penney 

  • Monday, November 14 at 12:30 AM ET – Restaurants Black Book
  • Sweetgreen, Inc. (SG): 3rd quarter since becoming a public company, missed two of the three; missed again, 43 cent lost; revenue was below consensus; guided down for Q4; estimates for next year are way too high; this company is a disaster, should never have come public; SG remains a short

Consumer Staples: Daniel Biolsi 

  • Grocery Outlet (GO): Reported a penny ahead; big same store sales beat; EBITDA only 2% ahead of expectations; this is a franchise grocery model, so they split profits with franchisees, but they did raise guidance; going to be more promotional, not going to sit back; GO remains a long
  • Sprouts Farmers Market (SFM): Company beat their own low bar; beat by 10 cents; gross margins were up; took back price investments on the product and put it into tv ads and marketing; this is not a gross margin expansion story; SFM remains a short

Gaming, Lodging & Leisure: Sean Jenkins 

  • Tomorrow, November 10 at 10:00 AM ET – Gaming, Lodging & Leisure Monthly Q&A
  • Sports Betting: It was anticipated that the commercial led online sports betting initiative would not pass in California; got torched at the polls yesterday; plenty of work to do to figure this out for the next election

Retail: Brian McGough 

  • Capri (CPRI): Put out earnings this morning; beat in a meaningful way; kept full-year guidance; did take an FX hit; each of the brands did well; company bought back 7.1 million shares in the quarter; CPRI remains a long
  • Allbirds (BIRD): Company reported last night and lost 17 cents which was in-line with the Street; Pod 1 accelerated; great balance sheet with a real brand; will grow in wholesale; BIRD remains a long
  • Hanesbrands (HBI): Company beat the quarter by 2 pennies but missed on every KPI; top line looked awful, gross margins missed; company cut back half guidance; HBI remains on the short bench

Healthcare Policy: Emily Evans 

  • Flu: Flu season took off earlier than usual and is accelerating at a steeper curve; noteworthy on the HCA Healthcare, Inc. (HCA) front; their urgent care center is called CareNow; HCA remains a long

Macro, Housing & FinancialsJosh Steiner 

  • D.R. Horton, Inc. (DHI): D.R. Horton came out with numbers; bad across the board; cancellation rate significantly accelerated two quarters in a row now; 1/3 contracts are being cancelled
  • Affirm (AFRM): Reported earnings; came out with numbers that were disappointing; delinquency rates moving up quickly; these trends are accelerating; nothing positive or redeeming about this report; AFRM remains on the short bench

Industrials: David Talbott 

  • Ecolab, Inc. (ECL): Removing as best idea long; decent Quad 4 performer but the dynamics of this cycle are increasingly challenging relative to our March 2022 expectations; we can buy names today at much lower valuations that are less exposed to markets with structural uncertainty; ECL is now on the long bench
  • Lucid Group (LCID): Earnings out last night; reservations declined sequentially for the first time; missed on both the top and bottom line with negative free cash flow; going to be raising money through stock sales; cash burn was worse than expectations; LCID remains a short

Technology: Ami Joseph 

  • Tomorrow, November 10 at 12:30 PM ET – Technology Black Book
  • monday.com Ltd. (MNDY): New best idea short; hosting our deep dive Black Book tomorrow at 12:30pm ET; almost all the independent product experts we spoke with were already shifting to a superior tool called ClickUp with even better functionality, usability, and a more seamless GTM; the CRM launch was mostly just templates with an extra price that was causing confusion even among their most committed fans; MNDY is now a best idea short

China: Felix Wang 

  • Friday, November 11 at 10:00 AM ET – China Black Book

Telecom-Media Policy: Paul Glenchur 

  • Microsoft (MSFT): EU did open a 2nd phase investigation into the Microsoft/Activision Blizzard deal; UK, EU, and FTC all looking at this deal; basic case to block this deal is not very strong; Call of Duty is Activision Blizzard’s main game

Macro Policy: JT Taylor 

  • Midterms: Senate is still a toss-up; still not over, still have Georgia, Wisconsin, Nevada and Arizona to go; Georgia is almost certainly heading to a runoff; Georgia run-off is on December 6th; lot of voter enthusiasm from both sides; we still think the Republicans will take the House and we will have divided government