Smartkarma Daily Briefs

• The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
• The rankings used for the September 2024 index rebal event will be based on yesterday’s (4th September 2024) opening prices.
• In this insight, we take a final look at the potential ADDs and DELs leading the rankings for the upcoming review.

• S&P MidCap 400 additions by transition require market cap, float cap, sector balance, liquidity and earnings as parameters for inclusion.
• The highest combined score from the parameters is given to CVNA, HOOD, LPLA and ENTG which makes them acceptable candidates for addition. 
• Ensign Group (ENSG US) and Mueller Industries (MLI US) have the highest probability of being added out of the migrations. Market cap of migration candidates is estimated to be insufficient.

• Mispronunciations of Nvidia can be a red flag for some investors
• The volatility in Nvidia stock after earnings was not surprising due to high trading volume and options activity
• Buy side expectations and unofficial whisper numbers can impact stock performance in high profile companies like Nvidia

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• July 2024 ranked as the warmest July in NOAA’s 175-year global record. Land & sea surface temperatures were above average across the planet barring few exceptions.
• July had the 2nd smallest sea ice coverage in 46-years at 8.49 million square miles. There is a 77% chance that 2024 will rank as the warmest year on record.
• Heating, Ventilation, and Air Conditioning (“HVAC”) stocks continue to rise on strong demand as temperatures peak across the planet.

• Workday, a leading provider of enterprise cloud applications for finance and human resources, delivered a mixed set of results in its fiscal 2025 second-quarter earnings.
• The company reported a 17% growth in subscription revenue and a healthy increase in its 12-month backlog, which grew 16%.
• Professional services also saw growth, contributing to a total revenue growth of the same percentage.

• Snowflake Inc. reported a solid financial performance for the fiscal second quarter of 2024, with product revenue increasing by 30% year-over-year to $829 million, surpassing analyst expectations.
• The company raised its full-year revenue outlook to $3.36 billion, reflecting its continued focus on innovation and product development.
• Despite this growth, Snowflake’s stock faced pressure, dropping by 7% in extended trading as concerns over its ability to fully capitalize on AI-related opportunities persisted.

• For the week ending 30/Aug, US crude inventories fell by 6.9m barrels, surpassing analysts expectations a 600k barrel drawdown. Distillate stocks surprisingly dropped, while gasoline inventories unexpectedly rose.
• US natural gas inventories rise 13 bcf for the week ending 30/Aug, missing analyst expectations of a 26 bcf buildup. Inventories are 10.7% above the 5-year seasonal average.
• ADNOC to acquire a 35% stake in ExxonMobil’s proposed low-carbon hydrogen facility. BPN Paribas raised the target price on Chevron, while Grupo Santander downgraded TotalEnergies.

• Intuit Inc. delivered strong financial results for the fourth quarter and full fiscal year 2024, highlighting the success of its strategic initiatives, particularly its AI-driven expert platform.
• This strategy is at the core of Intuit’s operations and future growth, focusing on providing AI-enhanced solutions that make financial management more streamlined and efficient for both consumers and businesses.
• Intuit reported a 13% revenue growth for fiscal year 2024, with the fourth quarter alone seeing a 17% increase.

• In the second quarter, Urban Outfitters reported a 6% increase in total sales, reaching $1.4 billion, propelled by strong performance in its retail and wholesale segments.
• Specifically, the Anthropologie and Free People brands exhibited high single-digit retail segment comps, which nicely offset the decline at Urban Outfitters.
• Additionally, the Nuuly segment achieved significant growth with a 55% rise in average active subscribers compared to the previous year.

• We are reiterating our Buy rating and $20 price target for Lands’ End and raising our FY24 and FY25 projections after the company registered another strong upside quarter in 2Q FY24 (July) and provided further compelling evidence the focus on innovation and newness to drive higher overall top and bottom line returns is fully on track and setting up for strong near and longer term upside.
• We believe there remain multiple key catalysts at Lands’ End, from: 1) shifts in customer base to a younger, more fashion driven buyer; 2) European top line and margin expansion 3) new online marketplaces, with Nordstrom just coming online; 4) material expansion of the licensing effort, with a new domestic license for wholesale apparel, outerwear and swimwear; and 5) market share gains in the B2B business.
• When combined with a disciplined management team focused on efficiencies and operations, we view the best as still ahead for LE and reiterate our Buy rating and $20 price target.