Vermilion Compass: Weekly Equity Strategy
Don't forget the opportunities in valueAll hail growth. Growth/momentum stocks cannot do any wrong—still—in the market's eyes (unless you're EXPE). Semis are advancing to decade highs. Tech tops our cap-weighted sector rankings. And FANG is bursting out, courtesy of AMZN, to all-time highs (see page 4). While this fits with our long-standing overweight of Technology, it also draws attention away from emerging opportunities in the value space, including energy and financials.
Within energy, both Brent and WTI continue to emerge from multi-year bottom patterns. As we have noted over the past month, energy stocks, though far from matching the strength in crude, are reversing YTD downtrends (e.g. XLE), setting up attractive entry points. We're still market weight this sector, but we recommend incrementally increasing exposure... see page 3
Turning to the Financial Sector, which we upgraded last week to overweight, we are witnessing widespread bullish inflections throughout our Asset Manager, Bank, Credit Card Issuers, and Investment Banks/Brokers Groups. This is also confirmed by the XLF's relative strength inflection higher. In this week's report we narrow in on actionable ideas in the following Financial Groups:
• Mortgage Insurance (FN-20). MTG, RDN, ESNT, NMIH... pages 8-10
• Credit Card Issuers (FN-27). AXP, COF, SYF, DFS... pages 11-13
• Banks, Super-Regional (FN-15). BAC, WFC, USB, PNC, BBT, RF, FITB... pages 14-17
• Banks, Western, Large-Cap (FN-16). SIVB, ZION, WAL, UMPQ, CATY... pages 18-20
For a trial to Vermilion Research visit our website at www.vermilioncap.com or contact our sales team at (952) 922-7500.
American Express is a payments company. The company is engaged in providing credit and charge cards to consumers, small businesses, mid-sized companies and corporations. The company's reportable operating segments are: Global Consumer Services Group, which provides services to consumers, including travel and lifestyle services; Global Commercial Services, which provides payment and expense management services, as weel as commercial financing products; and Global Merchant and Network Services, which operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, and services and data analytics.
Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.
Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.