Recessionary Signals as SPX Tests Resistance; Downgrading Energy to Underweight Our long-term outlook remains neutral on the S&P 500 (SPX) as of our 8/6/24 Compass, after being bullish since early-November 2023. Despite our expectations for a short-term rally since our 8/13/24 Compass, we still see the SPX and Nasdaq 100 (QQQ) as going through a 1- to 4-month pullback/consolidation period, and market dynamics remain concerning. Current price action on the SPX is extremely similar to prior major...
Upgrading Utilities to Overweight The S&P 500 (SPX) is back near YTD highs and testing resistance in the 5670-5783 range, and we view this as an ideal time to reduce risk and shift to defensives. We continue to believe that the SPX and Nasdaq 100 (QQQ) are going through a 1- to 4-month pullback/consolidation that could end up being a topping pattern. To recap, (1) in our 7/30/24 and 8/6/24 Compass reports we discussed how 5100-5191 was our target/bounce area on SPX, (2) we downgraded our long-t...
A director at WEC Energy Group Inc bought 1,000 shares at 91.390USD and the significance rating of the trade was 60/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years c...
Generac Holdings Inc. (GNRC) has a dominant and growing market position for backup power generation and storage, a trend that is likely to grow for years. Uniform Accounting highlights that the market is not pricing in these tailwinds, and Generac's potential to grow and expand returns faster signal the potential for equity upside. Generac owns a 75% market share for household backup generators, a market with low penetration and accelerating demand. With households and businesses relying on...
WEC Energy Group (WEC) currently trades above corporate and near historical averages relative to Uniform earnings, with a 41.2x Uniform P/E (Fwd. V/E'). At these levels, markets are pricing in expectations for Uniform ROA to improve to 7%, accompanied by 3% Uniform asset growth. Meanwhile, analysts expect Uniform ROA to remain below cost-of-capital levels through 2023, accompanied by 3% Uniform asset growth. If sustained going forward, these levels would imply a stock price closer to $28, rep...
The independent financial analyst theScreener just slightly lowered the general evaluation of WEC ENERGY GROUP (US), active in the Multiutilities industry. The title has lost a star(s) at the fundamental level and now shows 3 out of 4 stars. Its exposure to market risk remains nonetheless the same and can be still described as defensive. theScreener slightly downgrades the general evaluation to Slightly Positive for the title on account of the lost star(s). As of the analysis date March 25, 2022...
Index Supports Breaking; Upgrading Utilities Indexes continue to violate our key "lines in the sand" as the Russell 2000 (IWM) broke below $208, the S&P 500 broke below 4495, and the equal-weighted Nasdaq 100 (QQEW) broke below $109. This type of damage paints a bearish picture at the index level, and will take some time to repair. Now that key supports have been violated, we are monitoring for oversold conditions that could mark a bottom. It is possible that yesterday's reversal could mark "th...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
CBRL is set up to not just survive the pandemic, but actually to thrive because of it, and the market isn't pricing this in. Before 2020, the company already had been steadily improving UAFRS-based (Uniform) ROA the past 10 years, thanks to its strong strategy to optimize its restaurant and store business. Now the company is rolling out new strategies, like introducing alcohol sales and off-premise dining offerings, that could turbocharge returns coming out of the pandemic. The market is not pri...
WEC Energy Group, Inc. (WEC:USA) currently trades near recent highs relative to UAFRS-based (Uniform) earnings, with a 39.7x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their renewable energy projects, energy and asset mix, and policy headwinds Specifically, management may lack confidence in their ability to capitalize on Foxconn opportunities, attract more prospects in Southeast Wisconsin, and benefit from the...
Summary Westar Energy Inc. - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Westar Energy, Inc. (Westar or 'the company') is an electric utility that generates, transmits and distributes electricity to commercial, residential and industrial customers in eastern and...
The Only Thing We Have To Fear Is Fear Itself This powerful quote from FDR can be applied to many facets of life. When it comes to the market, fear can lead investors to buy when it is time to sell, sell when it is time to buy, or freeze up altogether. Step one in conquering this issue starts with preparation and a gameplan. In our report from last Thursday (3/12) titled “Searching For A Bottom†we laid out our gameplan and what we need to see before having confidence that equity markets ar...
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