Analysis

The Latest from Equities News


August 28, 2019
ALGN – Market expectations are for Uniform ROA contraction, but management is confident about their growth, EPS, and market exposure

Align Technology, Inc. (ALGN:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 27.2x Uniform P/E

August 28, 2019
Valens Equity Weekly Insights and Inflections for August 28, 2019

Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: JBL – Jabil Inc. Other Highlights: CRUS, DISC.A, NOV

August 27, 2019
UNP – Market expectations are for record high Uniform ROA, but management has concerns about margins, their intermodal business, and expenses

Union Pacific Corporation (UNP:USA) currently trades near recent averages relative to UAFRS-based (Uniform)

August 26, 2019
Valens Research – UAFRS vs As Reported Weekly Highlights – August 22, 2019

Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals

August 26, 2019
NOV – Negative management sentiment indicates near-term upside may be limited, but overly bearish market expectations support long-term outperformance

National Oilwell Varco, Inc. (NOV:USA) currently trades at historical lows relative to UAFRS-based (Uniform) Assets

August 23, 2019
Valens Research Weekly Equity Idea Highlight for August 22, 2019 – D.R. Horton, Inc.

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. Management’s smart strategic decisions, low market expectations, and sustained confidence about the business builds the case for equity upside

August 23, 2019
CRUS – Given management’s confidence about demand and their Cipher acquisition, bearish market expectations are unwarranted, and upside is likely

Cirrus Logic, Inc. (CRUS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 17.5x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which may be unwarranted given management’s confidence about demand for their DACs and their Cipher acquisition, justifying outperformance going forward

August 22, 2019
Valens Credit Weekly Insights for August 21, 2019

Highlighted Top: GME – GameStop Corp., LEN – Lennar Corporation, RAD – Rite Aid Corporation

August 21, 2019
Valens Equity Weekly Insights and Inflections for August 21, 2019

Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: UNFI – United Natural Foods, Inc. Other Highlights: ABT, CVS, NFLX Other Recent Analyses: AAPL, ABBV, CCK, DIS, FLS, GNTX, HCC, HRB, KSU, MDR, MGM, MTN, POOL, PVH, RMAX, SKX, SNX, UNH

August 21, 2019
DISC.A – Given management’s confidence in their growth, market share, and advertising revenue, market expectations are far too bearish, suggesting longer-term upside remains warranted

Discovery, Inc. (DISC.A:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings with a 9.6x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which may be unwarranted given management’s confidence about their international growth, market share, and advertising revenues

August 20, 2019
JBL – Market expectations are for record-low Uniform ROA, but management is confident about growth, EPS, and operating income

Jabil Inc. (JBL:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their growth, EPS, and core income growth

August 19, 2019
UNFI – UNFI is trading at less than half book asset values, but management is confident about their Thrive 2 initiative and long-term business transformation

United Natural Foods, Inc. (UNFI:USA) currently trades at historical lows relative to UAFRS-based (Uniform) Assets, with a 0.4x Uniform P/B. At these levels, the market has bearish expectations for the firm, but management is confident about their Thrive 2 initiative and long-term business transformation

August 16, 2019
ABT – Market expectations are for Uniform ROA expansion, but management has concerns about guidance, Nutrition, and growth

Abbott Laboratories (ABT:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 24.7x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, however management has concerns about guidance, their Nutrition business, and future growth

August 16, 2019
Valens Research Weekly Equity Idea Highlight for August 14, 2019 – Capital One Financial Corporation

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. COF is set to cash in with accelerating fundamentals, strong management alignment, and a robust business strategy just as markets are overly pessimistic on the company

August 15, 2019
RMAX – Markets expect Uniform ROA to compress significantly, and management is concerned about their forecast, future growth, agent quality, Motto Mortgage, competition, and booj platform

RE/MAX Holdings, Inc. (RMAX:USA) currently trades at the low end of historical levels relative to UAFRS-based (Uniform) Earnings with a 3.5x Uniform P/E, implying bearish expectations for the firm. Additionally, management is concerned about their forecast, future growth, agent quality, Motto Mortgage, competition, and booj platform

August 14, 2019
CVS – Although negative management sentiment suggests the potential for near-term headwinds, market expectations are far too bearish, suggesting longer-term upside remains warranted

CVS Health Corporation (CVS:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 17.0x Uniform P/E. At these levels, markets are pricing in bearish expectations for the firm, and while management has concerns about expansion, operating income, and capital allocation, the firm’s leadership position in its space suggests longer-term upside remains warranted

August 14, 2019
Valens Equity Weekly Insights and Inflections for August 14, 2019

Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: NIKE, Inc. Other Highlights ASGN, CME, VEEV Other Recent Analyses: ALXN, CIEN, CMG, DUK, FLS, GPS, GRUB, HAL, IBM, IRBT, ISRG, JNJ, MSFT, OMC, PM, SLB, SNA, THRM

August 13, 2019
Valens Research – UAFRS vs As Reported Weekly Highlights – August 7, 2019

Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals. Prestige Consumer Healthcare, Inc. (PBH), Yelp, Inc. (YELP), Big Yellow Group PLC. (BYG:GBR)

August 13, 2019
NFLX – Market expectations are for Uniform ROA expansion, but management has concerns about subscriber growth and self-produced content

Netflix, Inc. (NFLX:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 47.0x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their self-produced content and subscriber growth

August 12, 2019
VEEV – Market expectations are for Uniform ROA to increase but management is concerned about AI implementation, Veeva Nitro, Veeva Vault, future efficiency, and growth

Veeva Systems Inc. (VEEV:USA) currently trades at the higher end of historical averages relative to UAFRS-based (Uniform) Earnings with a 58.1x Uniform P/E, implying bullish expectations for the firm. Management appears to be concerned about growth, innovation, new products, and improving efficiencies