In today’s briefing:
- S&P 500 Testing 3900 Support; Commodities, WTI Crude Oil Topping?; Buying Uranium, Ag Equipment
- PureTech Health (PRTC LN): Continued Value Unlocking; Multiple Catalysts Are Pushing Up Stock Price
- Salesforce.com Inc: Code Builder Update & Other Drivers
- Workday Inc: Growing Customer Base
- Capri Holdings: Digital Momentum & Other Drivers
- Ulta Beauty: The Beauty& Campaign
- Breaking Estimate Short Candidates: Upstart, Cerence, Zillow, Trex
- Campbell Soup Inc: Online Sales As A Key Driver & Other Factors Driving Growth
S&P 500 Testing 3900 Support; Commodities, WTI Crude Oil Topping?; Buying Uranium, Ag Equipment
- Key supports are currently being tested at 3900-3910 on the S&P 500, $293 on the Nasdaq 100 (QQQ), and $177-178 on the Russell 2000 (IWM).
- We see a bounce as possible at these levels, but breaks below these levels would virtually guarantee a test of the YTD lows — or worse.
- WTI crude oil is breaking below the critical $85 support level, confirming a major top in place. The Bloomberg commodity index needs to break $32.50 to confirm a major top.
PureTech Health (PRTC LN): Continued Value Unlocking; Multiple Catalysts Are Pushing Up Stock Price
- PureTech Health (PRTC LN) has raised approximately $115.4 million through partial offloading of stake in Karuna Therapeutics Inc (KRTX US). PureTech will continue to hold 3.5% of Karuna’s outstanding shares.
- Following the transactions, PureTech has updated guidance to extend its operational runway to Q1 2026 from prior cash runway guidance into Q1 2025.
- Karuna plans to submit a new drug application for KarXT in schizophrenia with the FDA in mid-2023. As a co-inventor of KarXT, PureTech has the right to receive royalty.
Salesforce.com Inc: Code Builder Update & Other Drivers
- Salesforce has generated excellent revenue growth, profitability, and cash flows in its last result, surpassing Wall Street expectations on all counts despite operating in a challenging financial climate.
- With new clients like the U.S.
- Department of Veterans Affairs, Workday, and Uber, Service Cloud grew 14% year over year or 18% in constant currency.
Workday Inc: Growing Customer Base
- Workday delivered another all-around beat, outperforming market expectations with respect to its operating indicators, highlighting the ongoing significance of digital transformation for finance and HR.
- Along with the significant expansion of their core HCM and financial apps, Q2 saw remarkable momentum throughout their broader spectrum of solutions.
- Customers create apps with Extend customized for their specific use cases, potentially eliminating the need for additional specialized development tools.
Capri Holdings: Digital Momentum & Other Drivers
- Capri has seen a decent performance across all three of its luxury residences and 2022 has been delivering better results than the management had anticipated.
- The company delivered an all-around beat with a revenue of $1.36 billion, which exceeded management and market expectations.
- Fendace combined unique features with classic silhouettes from two renowned Italian luxury brands, Fendi and Versace.
Ulta Beauty: The Beauty& Campaign
- Ulta Beauty performed well in this quarter and delivered an all-around beat.
- Based on point-of-sale statistics from the NPD Group, all key categories for the quarter exceeded its expectations, and they grew their market share in prestige beauty compared to the previous year.
- Haircare, their second-largest category, experienced double-digit growth for another quarter due to newness and excellent participation in their semi-annual Gorgeous Hair Event.
Breaking Estimate Short Candidates: Upstart, Cerence, Zillow, Trex
- This model finds companies facing recent sharp cuts in estimates. These shorts can have very disparate characteristics.
- The key judgement involves whether the negative revisions are temporary or if they are indications of ongoing weakness in the business.
- Breaking Estimates stocks often continue to decline after the cuts. This week we flag: Upstart, Cerence, Zillow, Trex
Campbell Soup Inc: Online Sales As A Key Driver & Other Factors Driving Growth
- The demand for Campbell’s portfolio of brands continued to be strong in the last quarter and it was able to match the market’s revenue expectations through its result.
- The company was able to deliver an earnings beat as it enhanced supply chain performance and put into place efficient revenue management to combat inflation.
- Their Win in Soup approach will remain strong in fiscal 2023 largely due to innovation.
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