Daily Brief United States: Groupon , Western Digital, Sailpoint Technologies Holdings, Illumina Inc, Genpact Ltd, Crude Oil, Ralph Lauren, Tapestry Inc, Expedia Group, Inc., Snap On Inc and more

• Groupon is a lead generation tool for local service businesses that offers discounted deals.
• The speaker, from the hedge fund Windward, believes Groupon presents a highly asymmetric and convex investment opportunity with potential for a 5 to 1 risk-reward ratio.

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• Small caps generally trade between a 50% discount to the S&P 500 and a 50% premium. The current discount is 22%.
• Relative periods of outperformance tend to last for waves of at least 13 years.
• The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.

• Sailpoint Technologies Holdings (SAIL US) is forecasted to be excluded from the one global index because of a low free float which is below the minimum threshold.
• SAIL is forecasted to be added to the other global index at the September 2025 review. Conviction is medium as its fcap is near the threshold.
• The security is forecasted to be added to snp TMI and rasel 1000 in March and June 2025, respectively. It is estimated to have failed fast-entry for TMI.

• Illumina, a leading genomic sequencing company, reported its financial results for the fourth quarter of 2024, marking a slight revenue increase of 1% year-over-year to $1.1 billion.
• This growth was primarily driven by high throughput sequencing consumables as the company continues to shift its customer base towards its new NovaSeq X series of instruments.
• The company placed 91 NovaSeq X instruments in the quarter, reaching an installed base of 630, and enjoyed a robust pull-through performance, averaging $1.3 million per system in 2024.

• Genpact Limited reported a strong performance in the fourth quarter of 2024, with revenue reaching $1.25 billion, reflecting a 9% year-over-year increase.
• The company showcased a particularly impressive growth in their Data-Tech-AI segment, which rose by 12% year-over-year, showcasing the potential and growth of this sector within the organization.
• Additionally, Digital Operations saw a 6% year-over-year increase, indicating strong demand across their business segments.

• The U.S. oil and gas rig count rose for the third consecutive week, increasing by 2 to 588 for the week ending 14/Feb.
• For the week ending 07/Feb, U.S. oil production moderately rose to 13.49m bpd from 13.48m bpd the week prior.
• The number of  U.S. oil rigs rose by 1 to 481, while gas rigs grew by 1 to 101. Rig count in the Permian basin rose by 1 to 304.  

• Ralph Lauren’s third-quarter fiscal year 2025 results reflect a blend of positive momentum and strategic growth, tempered by an acknowledgment of ongoing market challenges.
• The company reported a double digit revenue increase, significantly surpassing its own expectations across all geographies, indicating robust brand momentum and effective strategic investments, particularly noticeable during the peak holiday season.
• This was facilitated by an agile global supply chain that successfully met heightened consumer demand.

• Tapestry reported strong results for its second quarter, surpassing expectations with record quarterly revenue and earnings per share.
• The company, known for its brands Coach, Kate Spade, and Stuart Weitzman, demonstrated its commitment to strategic brand building and disciplined financial management, resulting in a 5% revenue growth, driven primarily by Coach’s impressive 10% increase.
• Positive aspects of the earnings report include Tapestry’s successful expansion in international markets.

• The Q4 2024 financial results for Expedia Group present a comprehensive picture with both strengths and challenges.
• The company reported stronger-than-expected growth with room nights, gross bookings, and revenue all achieving double-digit growth.
• This reflects strong market demand and effective execution strategies.

• Snap-on Incorporated has reported its fourth quarter and full-year 2024 results, showcasing both strengths and challenges.
• The quarter ended with a slight increase in sales to $1,198.7 million, marking a modest organic growth of 0.2%.
• Despite a relatively flat revenue performance, profitability was robust, with gross margins improving by 140 basis points to 49.7% and operational company (opco) margins reaching 22.1%, an all-time high for the fourth quarter.