CapitalRock @CapitalRock: "Weekly Portfoglio update > The portfolio..."

Italy

Weekly Portfoglio update > The portfolio ends the week with a gain of +0.6%, driven by the S&P 500, which had a bullish week, gaining +1.6%. The underperformance is attributed to some stocks in the portfolio that were sold after the release of quarterly earnings. > Overall, the S&P 500 emerges strengthened by quarterly results exceeding expectations, given that the earnings growth rate for the first quarter is 5.4%, compared to an earnings growth rate of 3.4% at the end of the first quarter (March 31st). The technical configuration appears positive, although we have entered a zone of volumetric resistance and are close to historical highs, suggesting caution regarding the potential return of sellers who may defend positions taken a few weeks ago. > Strategy: No changes were made to the equity exposure, which remains at 66%, and bonds at 26%. During the last week, I decided to open a hedging position on the entire equity component through a leveraged x10 short trade on the S&P 500. From a sectoral perspective, I liquidated positions in the Energy, Communication Services, and Financial sectors to purchase Healthcare and Consumer Staples. > Trades of the week: The only noteworthy trade is the sale of a portion of the investment in $HIG (The Hartford Financial Services Group Inc) with a gain of +19.3% due to sector rotation reasons. > New Positions Opened During the Week: (1) $BIIB (Biogen Inc) has lost approximately 50% since June 2021, reaching an attractive valuation. My estimated fair value is around $350, while the current price is $221.50. In the last month, the stock has been recovering and seems poised to react from the long downtrend. (2) $LW (Lamb Weston Holdings Inc) produces, distributes, and markets frozen potato products worldwide. This stock has been disproportionately affected by sales, losing -20% after the quarterly report in early April. (3) PulteGroup, Inc. engages in the homebuilding business in the United States. The stock has a very strong upward trend, and despite being near historical highs, it appears undervalued with a forward P/E ratio of 9x and a very low debt-to-equity ratio of 23%. > Portfolio Big Movers: (1) $EXAS (Exact Sciences Corp) dropped -13.9% last week after the release of the quarterly report, which highlighted a negative cash flow of $120 million, indicating increased cash used in operations. (2) Corpay, Inc. fell by -5.3%. The payments company delivered quarterly results in line with expectations and announced a definitive agreement to acquire Paymerang, LLC for approximately $480 million. (3) $USFD (US Foods Holding Corp.) rose +6.7%. The leading U.S. food service distributor announced the financial results for the first quarter of fiscal year 2024.The company reported a 4.8% increase in net sales, reaching $8.9 billion, and a net income of $82 million, demonstrating resilience and strategic growth in a challenging market environment. Cheers Traders!

5 Mentioned

HIG

The Hartford Financial Services Group Inc

BIIB

Biogen Inc

Lamb Weston Holdings Inc

EXAS

Exact Sciences Corp

USFD

US Foods Holding Corp.