Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Watsco, Inc. reported its third-quarter financial results, demonstrating resilience despite a challenging market environment.</li><li>The company navigated a year of transition due to regulatory changes impacting 55% of its products, which included introducing next-generation A2L refrigerants.</li><li>This transition created volatility, yet Watsco managed to maintain its earnings substantially intact, showcasing its ability to adapt and perform under pressure.</li></ul>

Watsco, Inc. reported its third-quarter financial results, demonstrating resilience despite a challenging market environment.The company navigated a year of transition due to regulatory changes impacting 55% of its products, which included introducing next-generation A2L refrigerants.This transition created volatility, yet Watsco managed to maintain its earnings substantially intact, showcasing its ability to adapt and perform under pressure.

Watsco: Why Is It Betting Big on High-Efficiency HVAC Systems? The Answer Might Shock You!

<ul><li>Watsco's second quarter results for 2025 present a mixed picture, characterized by several strategic transitions and market conditions impacting financial performance.</li><li>Let's outline the key aspects of the company’s results and form an investment thesis with a neutral perspective: Watsco reported a sales decline of 4% despite implementing double-digit pricing increases for its new line of A2L refrigerant-based equipment.</li><li>This decline was primarily due to lower sales volumes, partly attributed to a delayed start to the summer season and subdued demand in residential new construction and international markets, particularly in Mexico.</li></ul>

Watsco's second quarter results for 2025 present a mixed picture, characterized by several strategic transitions and market conditions impacting financial performance.Let's outline the key aspects of the company’s results and form an investment thesis with a neutral perspective: Watsco reported a sales decline of 4% despite implementing double-digit pricing increases for its new line of A2L refrigerant-based equipment.This decline was primarily due to lower sales volumes, partly attributed to a delayed start to the summer season and subdued demand in residential new construction and international markets, particularly in Mexico.

Watsco Inc.: Expansion into Large Institutional Customers to Drive Substantial Growth By Tapping Into A Broader Market Segment!

Podcast by Dom Cooke to explore big businesses, Business Breakdowns

Business Breakdowns

Podcast by Dom Cooke to explore big businesses

Learn how companies work from the people who know them best. We do deep research and interview industry veterans, investment professionals, and corporate executives to explain the inner workings of public stocks and private businesses. For each company, we break down their history, business model, financial statements, secret sauce, and bull/bear case. We believe every business has lessons to teach us and Breakdowns is here to highlight them. Learn more and stay up to date at www.joincolossus.com.

<ul><li>Watsco is North America's largest distributor of HVAC equipment, serving as a crucial link between manufacturers and contractors.</li><li>They offer a wide range of equipment and parts, technical expertise, and value-added services to their contractor customers.</li><li>Watsco's transformation from manufacturer to distributor in 1989 led to significant growth, with consistent annualized shareholder returns over the years.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Watsco is North America's largest distributor of HVAC equipment, serving as a crucial link between manufacturers and contractors.They offer a wide range of equipment and parts, technical expertise, and value-added services to their contractor customers.Watsco's transformation from manufacturer to distributor in 1989 led to significant growth, with consistent annualized shareholder returns over the years.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Watsco: Air Apparent - [Business Breakdowns, EP.209]

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Considering constructive market dynamics and the recent $SPX breakout above 5783 following several months of consolidation, we upgraded our outlook to bullish as of our 10/15/24 U.S. Macro Vision report</li>
<li>Since late-July, we have been neutral on the SPX, preferring to buy near 5100-5200 support and sell near 5670-5783 resistance until there is a break in either direction.</li>
<li>The verdict of the market is the only one that matters, and the breakout above 5783 is the market's way of saying the path of least resistance is higher.</li>
</ul>


Considering constructive market dynamics and the recent $SPX breakout above 5783 following several months of consolidation, we upgraded our outlook to bullish as of our 10/15/24 U.S. Macro Vision report
Since late-July, we have been neutral on the SPX, preferring to buy near 5100-5200 support and sell near 5670-5783 resistance until there is a break in either direction.
The verdict of the market is the only one that matters, and the breakout above 5783 is the market's way of saying the path of least resistance is higher.


Bullish Outlook Focused on Large- And Mid-Caps; Russell 2000 Below Resistance; Concerns Dwindling

<ul>
<li>Mega-Cap growth names such as AMZN, TSLA, MSFT, GOOGL, and META have picked up the slack as semiconductors (SMH, SOXX, NVDA, AVGO, etc.) are simply consolidating after getting extended.</li>
<li>This was a possibility we discussed in last week's Compass (6/25/24), which means we are not seeing any lasting rotation away from large-cap growth.</li>
<li>We remain bullish on all names listed (including the semiconductors), and we continue to recommend an overweight to large-cap growth (relative to value) as initially discussed in our 5/29/24 Compass</li>
</ul>


Mega-Cap growth names such as AMZN, TSLA, MSFT, GOOGL, and META have picked up the slack as semiconductors (SMH, SOXX, NVDA, AVGO, etc.) are simply consolidating after getting extended.
This was a possibility we discussed in last week's Compass (6/25/24), which means we are not seeing any lasting rotation away from large-cap growth.
We remain bullish on all names listed (including the semiconductors), and we continue to recommend an overweight to large-cap growth (relative to value) as initially discussed in our 5/29/24 Compass


Remain Overweight Large-Cap Growth; Downgrading Materials to Underweight; Software Buys $MSTR $CRWD

United States

Watsco, Inc. distributes air conditioning, heating, and refrigeration equipment, as well as related parts and supplies.  The Company operates various locations in the United States, with primary markets in the Sunbelt.

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Watsco Inc (WSO US)

Watsco: Why Is It Betting Big on High-Efficiency HVAC Systems? The Answer Might Shock You!

Watsco, Inc. reported its third-quarter financial results, demonstrating resilience despite a challenging market environment. The company...

Baptista Research

Watsco Inc.: Expansion into Large Institutional Customers to Drive Substantial Growth By Tapping Into A Broader Market Segment!

Watsco's second quarter results for 2025 present a mixed picture, characterized by several strategic transitions and market conditions impacting...

Baptista Research

Watsco: Air Apparent - [Business Breakdowns, EP.209]

Watsco, North America's largest distributor of H Vac equipment, has experienced significant growth by acting as the intermediary between...

Business Breakdowns

Bullish Outlook Focused on Large- And Mid-Caps; Russell 2000 Below Resistance; Concerns Dwindling

Bullish Outlook Focused on Large- and Mid-Caps $SPX $NDX $QQQ $IJH $MDY $IWR as of the Oct 11 close above 5783; Russell 2000 $IWM Still Below...

Vermilion Research

Remain Overweight Large-Cap Growth; Downgrading Materials to Underweight; Software Buys $MSTR $CRWD

Remain Overweight Large-Cap Growth $IWF as discussed 5/29/24; Downgrading Materials $XLB to Underweight; Buy/Stay Long Software Stocks $IGV $MSFT...

Vermilion Research

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