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Below is a brief excerpt transcribed from Friday's edition of The Macro Show hosted by Retail Analyst Brian McGough and Director of Research Daryl Jones. |
This year has been like shooting fish in a barrel on the long side. #Quad2 has been very good to Retail.
There's been a lot of hated names, highly-levered, small-cap; all the factors have been spot on with Quad 2 and we've had a lot of winners.
The least of which is Gamestop (GME) which started that off in late December and has been interesting to say the least.
Quad 2 has also been very good to the general business environment.
Now out of any slide in this deck, this is probably the most important.
This is showing the consensus estimates for 2021 versus where we were in 2019. The EBIT margin expectations are flat out too low.
This is very Quad 2 behavior; you're going to have these small-cap, hated, junky, operationally and financially-levered names which are going to be beating numbers.
We have to be careful in the back half of this year. The consensus is looking for between 8%-9% growth on the top line versus the back half of 2009. So people are looking for pent-up demand on this thing, so you have to be really careful.