In today’s briefing:
- Alibaba – How to Position Post Earnings Amid Sticky Volatility
- S&P500: DoorDash Knocks
- China Healthcare Weekly (Feb.23)-Ping An Good Doctor Shares Surge, China Healthcare Has Bottomed Out
- Wyndham Hotels & Resorts: A Tale Of Acceleration of Global Room Growth & RevPAR Expansion!
- Lithia Motors Inc.: Strategic Acquisitions & Divestitures As A Critical Lever For Driving Sustainable Growth!
- MGM Resorts International: Leveraging Partnerships & Loyalty Programs To Redefine the Industry!
- NIFTY MIDCAP150 Index Rebalance: 17 Changes a Side; Lots of Overlap with Other Index Flow
- Kraft Heinz: Market Share Expansion in Key Product Categories & Key Growth Levers!
- Restaurant Brands International (QSR): Brand Differentiation & Marketing Strategies to Up Their Game!
- CVS Health: $97.7 Billion Revenue and a New CEO – Can It Overcome Industry Challenges?
Alibaba – How to Position Post Earnings Amid Sticky Volatility
- Alibaba had a super charged move this week, risking 14.56% on its earnings release.
- We look at how price movement and volatility evolve in the month after earnings releases.
- Recommendations are made on how to position through options in this environment of enhanced volatility.
S&P500: DoorDash Knocks
- DoorDash (DASH US) recently became eligible for addition to S&P500 following the company’s positive earnings announcement on 11 February 2025.
- AppLovin (APP US), DoorDash (DASH US), and Coinbase Global (COIN US) are the main addition by transition candidates. APP is number one due to significant long-term mcap score.
- Williams Sonoma (WSM US) is the main addition by migration candidate and the expected addition by replacement if Capital One’s acquisition is completed prior to the March review.
China Healthcare Weekly (Feb.23)-Ping An Good Doctor Shares Surge, China Healthcare Has Bottomed Out
- In 2025, the NHSA will continue to deepen the VBP of drugs and centralized procurement of medical consumables, covering 700 drug varieties in total.
- Valuation of the entire industry has been sluggish for three years. With the positive changes, we think it is the time to be optimistic on China healthcare in 2025.
- Due to the craze for DeepSeek/AI, PAGD’s stock price surged.Although this is a great story, the extent to which DeepSeek can bring substantial benefits to PAGD remains to be verified.
Wyndham Hotels & Resorts: A Tale Of Acceleration of Global Room Growth & RevPAR Expansion!
- Wyndham Hotels & Resorts had a solid fourth quarter and full-year 2024 performance, marked by robust room growth, increased earnings, and strategic initiatives aimed at enhancing long-term positioning.
- However, some areas presented challenges that could affect future performance.
- Positively, the company reported a 4% net room growth for the year, which included opening a record 69,000 rooms.
Lithia Motors Inc.: Strategic Acquisitions & Divestitures As A Critical Lever For Driving Sustainable Growth!
- Lithia Motors’ recent earnings results highlighted a mixture of strategic advancements and operational challenges.
- The company demonstrated a robust revenue increase driven by its integrated mobility ecosystem and growth initiatives.
- Key financial metrics bring forward a mixed perspective for investors evaluating the company’s performance and strategic outlook.
MGM Resorts International: Leveraging Partnerships & Loyalty Programs To Redefine the Industry!
- MGM Resorts International reported strong earnings results for the fourth quarter and full year of 2024, marked by record consolidated net revenues, domestic slot wins, and heightened guest experiences.
- The company credits its robust performance to strategic decisions, strong financial foundation, and growth in both traditional and digital operations.
- Additionally, MGM’s customer service enhancements have been positively reflected in its Net Promoter Scores, particularly with its Gold Plus customers, reaching record highs during the reported period.
NIFTY MIDCAP150 Index Rebalance: 17 Changes a Side; Lots of Overlap with Other Index Flow
- There are 17 changes a side for the NIFTY Midcap 150 Index at the March rebalance. There are many stocks with flows from passive trackers of other indices.
- Estimated one-way turnover is 9.2% resulting in a round-trip trade of INR 15.9bn (US$184m). With over US$40bn tracking the index actively, the impact on the stocks will be much larger.
- There are many stocks with opposing flows from NSE Nifty Next 50 Index trackers. Ola Electric (OLAELEC IN) will have inflows from multiple index trackers over the next month.
Kraft Heinz: Market Share Expansion in Key Product Categories & Key Growth Levers!
- The Kraft Heinz Company recently released its fourth-quarter 2024 earnings, providing insights into its financial performance and strategic focus.
- The company navigated a challenging year, emphasizing efforts to bolster profit margins and enhance free cash flow, even amidst a tumultuous economic environment.
- One notable achievement was Kraft Heinz’s return of $2.7 billion to shareholders through share buybacks and dividends, highlighting its commitment to shareholder value.
Restaurant Brands International (QSR): Brand Differentiation & Marketing Strategies to Up Their Game!
- Restaurant Brands International recently held a financial review for the fiscal year and fourth quarter ending December 31, 2024.
- The company displayed notable achievements and areas for improvement across its diversified portfolio, which includes household names such as Tim Hortons, Burger King, Popeyes, and Firehouse Subs, under its wing.
- The company reported a moderate growth trajectory with a 2.3% increase in comparable sales, a 3.4% growth in the number of net restaurants, and a 5.4% rise in system-wide sales.
CVS Health: $97.7 Billion Revenue and a New CEO – Can It Overcome Industry Challenges?
- CVS Health investors saw a significant turnaround as the company delivered better-than-expected quarterly earnings, fueling a sharp 14.8% rise in stock price—the largest one-day gain since 2008.
- This surge follows a tumultuous 2024 when the stock fell over 40% due to challenges across its core businesses, including rising medical costs in its insurance segment, regulatory scrutiny on its pharmacy-benefit manager, and financial pressures on its retail pharmacy chain.
- However, with a new CEO at the helm, the company is focused on restoring investor confidence and executing a strategic recovery plan.
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