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News & Announcements - 2019
12-31-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
12-20-19: Baker's Dozen Model Portfolio for December 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for December 2019 was launched on December 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on December 21, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
12-19-19: Earnings Busters Alerts for Friday, 12-20-19
BUY: Charter Communications, Inc (CHTR)
SELL: KEMET Corporation (KEM)
Details are in the Earnings Busters newsletter.
12-13-19: Sector Detector: Stellar year for stocks now suggests strong follow-through in 2020
by Scott Martindale
President, Sabrient Systems
As yet another decade comes to a close, the US continues to enjoy the longest economic expansion on record. And as if to put a cherry on top, the economic reports last week hardly could have been more encouraging for the New Year, propelling the S&P 500 index into its third major technical breakout since the recovery from the financial crisis began well over 10 years ago. In particular, the jobs report blew away estimates with 266,000 new jobs, the prior month's report was revised upward, and the unemployment rate fell to a 50-year low of 3.5%. Importantly, those new jobs included 54,000 manufacturing jobs. Indeed, a growing view is that the manufacturing/industrial segment of the economy has bottomed out along with the corporate earnings recession and capital investment, with an economic upswing in the cards, which has been a key driver for the resurgence in value and cyclical stocks with solid fundamentals.
The good news kept coming, with the Consumer Sentiment report jumping back up to 99.2 (and averaging 97.0 over the past three years, which is the highest sustained level since the Clinton administration's all-time highs), while wages are up 3.1% year-over-year, and household income is up 4.8% (to the highest levels in 20 years). And with capital rotating out of pricey bonds into riskier assets, it all seems to me to be more indicative of a recovery or expansionary phase of the economic cycle -- which could go on for a few more years, given a continuation of current monetary and fiscal policies and a continued de-escalation in trade wars.
Read more at Scott Martindale's blog
12-12-19: New Small Cap Growth UIT Launched
The 25th Sabrient Small Cap Growth UIT Series (FAKDPX) was launched by First Trust Portfolios on December 12, 2019. The portfolio invests in top-ranked (at the time of their selection) small-cap stocks that represent a cross-section of industries that Sabrient believes are positioned to perform well in the coming year. The stocks are GARP stocks -- stocks that represent "growth at a reasonable price" -- and they are meant to be held for the full term of the trust, which terminates March 12, 2021. For a prospectus or fact sheet, please visit First Trust Portfolios.
12-05-19: Earnings Busters Alerts for Friday, 12-6-19
BUY (RENEW): NMI Holdings, Inc. (NMIH)
Details are in the Earnings Busters newsletter.
12-3-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
11-21-19: Earnings Busters Alerts for Friday, 11-22-19
BUY: Telefonaktiebolaget LM Ericsson (ERIC)
SELL: The Mosaic Company (MOS)
Details are in the Earnings Busters newsletter.
11-20-19: Baker's Dozen Model Portfolio for November 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for November 2019 was launched on November 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on November 23, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
11-19-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
11-12-19: Sector Detector: The ducks continue to line up positively for equities
by Scott Martindale
President, Sabrient Systems
The market this year has been oscillating between fear and optimism, risk-off and risk-on. Until 8/27/19, risk-off defensive sentiment was winning, but since that date a risk-on sentiment has taken hold, and the historic divergence favoring secular growth, low-volatility and momentum factors, defensive sectors, and large caps (i.e., late-stage economic cycle behavior) over cyclical growth, value and high-beta factors, cyclical sectors, and small-mid caps (i.e., expansionary cycle behavior) continues to reverse, as fickle investors have become optimistic about at least a partial resolution to the trade war (including the lifting of tariffs), an improving outlook for 2020-21 corporate earnings, and resurgent capital investment. Investors have moved from displaying tepid and fleeting signs of risk-on rotation to full-blown bullish enthusiasm and reluctance to sell in a fear of missing out (FOMO), even though the short-term technical picture has become overbought.
The late-August risk-on rotation came in the nick of time. Last year at that same time of the year, the S&P 500 was marching higher until peaking on 9/20/18, but it was doing so on the backs of defensive sectors along with secular-growth Tech mega-caps, and I was opining at the time that the rally would fizzle if there wasn't some rotation into the risk-on cyclicals and small-mid caps -- which as you know didn't happen, leading to the Q4 selloff. But, happily, this year has played out quite differently.
Read more at Scott Martindale's blog
11-8-19: Earnings Busters Alerts for Friday, 11-8-19
BUY: Marriott Vacations Worldwide Corporation (VAC)
SELL: AAR Corp. (AIR)
Details are in the Earnings Busters newsletter.
11-5-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
10-25-19: Aggressive accounting of restructuring costs and other non-GAAP adjustments: Where is the SEC?
by Ryan Frederick
Equity Analyst, Gradient Analytics LLC (a Sabrient Systems Company
(Note: Many of Sabrient's newsletter subscribers have expressed interest in receiving articles on additional topics, including forensic accounting and earnings quality from our wholly-owned subsidiary Gradient Analytics.)
In 2003, the SEC first officially adopted rules (following Sarbanes-Oxley in 2002) related to the reporting of non-GAAP financial metrics. The new regulations called for a reconciliation of GAAP versus non-GAAP results to be included in various investor resources and to refrain from excluding non-recurring items from non-GAAP metrics if they are reasonably likely to reoccur, which is subject to wide interpretation. Since then, it seems the perceived importance among investors of non-GAAP financial performance has been elevated above traditional GAAP measures. Between 2015 and 2017, less than 10.0% of companies in the S&P 500 did not report a non-GAAP income calculation. However, the ability for management to subjectively decide what is or is not relevant to a company's core business leaves plenty of room for earnings manipulation. Read more . . .
10-24-19: Earnings Busters Alerts for Friday, 10-25-19
BUY: KB Home (KBH)
SELL: HollyFrontier Corp (HFC)
Details are in the Earnings Busters newsletter.
10-22-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
10-18-19: Baker's Dozen Model Portfolio for October 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for October 2019 was launched on October 18, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on October 19, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
10-16-19: Sector Detector: Stocks are itching for a year-end breakout rally, but who will lead it?
by Scott Martindale
President, Sabrient Systems
The early weeks of September were looking so promising as a brief but impressive surge gave hope of a revival in the long-neglected market segments. This sustained risk-on rotation seemed to be marking a bullish change of market character from the risk-off defensive sentiment that I have been writing about extensively for the past 18 months (ever since the China trade war escalated in June of last year), specifically the massive divergence favoring the low-volatility, growth, and momentum factors, defensive sectors, and large caps over the value and high-beta factors, cyclical sectors, and small-mid caps.
But then, for the next few weeks, those risk-on market segments were once again lagging, as fickle investors keep returning to stocks displaying stronger balance sheets, high dividend yields, and/or secular growth stories -- in spite of high valuations -- rather than the more speculative cyclical growth stocks selling at attractive valuations that typically lead an upside breakout. It appeared that the fledging bullish rotation was caput -- or perhaps not. Suddenly, there have been positive developments in the trade negotiations and in the Brexit saga, and the past several days have brought back renewed signs of a pent-up desire to take stocks higher. Signs of a better-than-expected Q3 earnings season may be the final catalyst.
Read more at Scott Martindale's blog
10-15-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
10-10-19: Earnings Busters Alerts for Friday, 10-11-19
BUY: Assurant, Inc. (AIZ)
SELL: II-VI Incorporated (IIVI)
Details are in the Earnings Busters newsletter.
10-8-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
10-7-19: New Sabrient Dividend UIT Launched
A new Sabrient Dividend UIT Portfolio (Ticker: FGSCIX) -- 29th in the series -- was launched by First Trust Portfolios on October 7, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The portfolio will terminate on October 7, 2021. For more information, a prospectus, or a fact sheet, please
visit First Trust Portfolios.
10-7-19: New Dividend Opportunity UIT Launched
The seventh portfolio in the Sabrient Dividend Opportunity UIT Series (Ticker: FHBTLX) was launched by First Trust Portfolios on October 7, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The primary difference between the Dividend Opportunity portfolio and the other Sabrient Dividend portfolios, is the length of term. The Dividend portfolios have a 2-year term, while the Dividend Opportunity Portfolio has a 15-month term,. This Dividend Opportunity portfolio will terminate on January 7, 2021. For more information, a prospectus, or a fact sheet,please
visit First Trust Portfolios.
10-1-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
9-26-19: Earnings Busters Alerts for Friday, 9-27-19
BUY: IMAX Corporation (IMAX)
SELL: Domtar Corporation (UFS)
Details are in the Earnings Busters newsletter.
9-24-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
9-20-19: Baker's Dozen Model Portfolio for September 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for September 2019 was launched on September 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on September 21, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
9-17-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
9-15-19: Sector Detector: Stocks take a bullish rotation into neglected market segments, but will it last?
by Scott Martindale
President, Sabrient Systems
In case you didn't notice, the past several days have brought an exciting and promising change in character in the US stock market. Capital has been rotating out of the investor darlings -- including the momentum, growth, and low-volatility factors, as well as Treasury bonds and "bond proxy" defensive sectors -- and into the neglected market segments like value, small-mid caps, and cyclical sectors favored by Sabrient's GARP (growth at a reasonable price) model, many of which have languished with low valuations despite solid forward growth expectations. And it came just in the nick of time.
In Q3 of last year, the S&P 500 was hitting new highs and the financial press was claiming that investors were ignoring the trade war, when in fact they weren't ignoring it at all, as evidenced by narrow leadership coming primarily from the mega-cap secular Technology names and large cap defensive sectors (risk-off). In reality, such market behavior was unhealthy and doomed to failure without a broadening into higher-beta cyclical sectors and small-mid caps, which is what I was opining about at the time. Of course, you know what happened, as Q4 brought about an ugly selloff. And this year, Q3 was looking much the same -- at least until this sudden shift in investor preferences. Read more at Scott Martindale's blog
9-13-19: Earnings Busters Alerts for Friday, 9-13-19
BUY: JetBlue Airways Corp (JBLU)
SELL: Spirit AeroSystems Holdings, Inc. (SPR)
Details are in the Earnings Busters newsletter.
9-13-19: New Small Cap Growth UIT Launched
The 24th Sabrient Small Cap Growth UIT Series (FBWLTX) was launched by First Trust Portfolios on September 13, 2019. The portfolio invests in top-ranked (at the time of their selection) small-cap stocks that represent a cross-section of industries that Sabrient believes are positioned to perform well in the coming year. The stocks are GARP stocks -- stocks that represent "growth at a reasonable price" -- and they are meant to be held for the full term of the trust, which terminates December 14, 2020. For a prospectus or fact sheet, please visit First Trust Portfolios.
8-29-19: Earnings Busters Alerts for Friday, 8-30-19
BUY: Arconic Inc. (ARNC)
SELL: Post Holdings, Inc. (POST)
Details are in the Earnings Busters newsletter.
8-21-19: New Defensive Equity Portfolio Launched
A new Sabrient Defensive Equity UIT (FBWJRX), 21st in the series, was launched by First Trust Portfolios on August 21, 2019. This UIT seeks to find companies that are positioned to perform well in environments of falling stock prices but also those companies that have the potential to provide solid performance in rising markets. The stocks in the portfolio are selected through an investment strategy process developed by Sabrient. The portfolio will terminate on November 23, 2020. For a fact sheet or prospectus, please visit First Trust Portfolios.
8-20-19: Baker's Dozen Model Portfolio for August 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for August 2019 was launched on August 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on August 21, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
8-15-19: Earnings Busters Alerts for Friday, 8-16-19
BUY: Pilgrim's Pride Corp (PPC)
SELL: Wabash National Corporation (WNC)
Details are in the Earnings Busters newsletter.
8-13-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
8-12-19: 12th Rising Rate Portfolio Launched
A new Sabrient Rising Rate Portfolio (FEQZDX)) -- 12th in the series -- was launched by First Trust Portfolios on August 12, 2019. Historically, certain stocks have outperformed the market in periods during which longer-term Treasury bonds have rising yields, and Sabrient believes 10-year and longer Treasury yields are likely to rise over the next several years. The Sabrient Rising Rate Portfolio is a unit investment trust that seeks to find companies that Sabrient believes are positioned to perform well in environments of rising Treasury yields. The portfolio will terminate on August 12, 2021. For a fact sheet or prospectus, please visit FirstTrustPortfolios.com.
8-7-19: Sector Detector: Strong July gives way to volatile August as trade war escalates
by Scott Martindale
President, Sabrient Systems
July was yet another solid month for stocks, as the major market indexes eclipsed and held above psychological barriers, like the S&P 500 at 3,000, and the technical consolidation at these levels continued with hardly any give-back at all. But of course, the last day of July brought a hint of volatility to come, and indeed August has followed through on that with a vengeance. As the old adage goes, "Stocks take the stairs up but ride the elevator down," and we just saw a perfect example of it. The technical conditions were severely overbought, with price stretched way above its 20-day simple moving average, and now suddenly the broad all-cap indexes (S&P 500, Dow, Nasdaq) are challenging support at the 200-day moving average, while the small cap Russell 2000 index has plummeted well below its 200-day and is now testing its May low.
For the past 18 months (essentially starting with the February 2018 correction), investor caution has been driven by escalating trade wars and tariffs, rising global protectionism, a "race to the bottom" in currency wars, and our highly dysfunctional political climate. However, this cautious sentiment has been coupled with an apparent fear of missing out (aka FOMO) on a major market melt-up that together have kept global capital in US stocks but pushed up valuations in low-volatility and defensive market segments to historically high valuations relative to GARP (growth at a reasonable price), value, and cyclical market segments. Until the past few days, rather than selling their stocks, investor have preferred to simply rotate into defensive names when the news was distressing (which has been most of the time) and then going a little more risk-on when the news was more encouraging (which has been less of the time). I share some new insights on this phenomenon in today's article. Read more at Scott Martindale's blog
8-6-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
8-1-19: Earnings Busters Alerts for Friday, 8-2-19
BUY: Athene Holdings Ltd. (ATH)
SELL: MRC Global Inc. (MRC)
Details are in the Earnings Busters newsletter.
7-30-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
7-19-19: Baker's Dozen Model Portfolio for July 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for July 2019 was launched on July 19, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on July 20, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
7-18-19: Earnings Busters Alerts for Friday, 7-19-19
BUY: GoDaddy Inc. (GDDY)
SELL: ConocoPhillips (COP)
Details are in the Earnings Busters newsletter.
7-17-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
7-12-19: Sector Detector: Defensive sectors have led indexes to new highs, but cyclicals are perking up
by Scott Martindale
President, Sabrient Systems
The major cap-weighted market indexes continue to achieve new highs on a combination of expectations of interest rate cuts and optimism about an imminent trade deal with China. Bulls have been reluctant to take profits off the table in an apparent fear of missing out (aka FOMO) on a sudden market melt-up (perhaps due to coordinated global central bank intervention, including the US Federal Reserve). But investors can be forgiven for feeling some deja vu given that leadership during most of the past 13 months did not come from the risk-on sectors that typically lead bull markets, but rather from defensive sectors like Utilities, Staples, and REITs, which was very much like last summer's rally -- and we all know how that ended (hint: with a harsh Q4 selloff). In fact, while the formerly high-flying "FAANG" group of Tech stocks has underperformed the S&P 500 since June 2018, Barron's recently observed that a conservative group of Consumer sector stalwarts has been on fire ("WPPCK") -- Walmart (WMT), Procter & Gamble (PG), PepsiCo (PEP), Costco (COST), and Coca-Cola (KO).
This is not what I would call long-term sustainable leadership for a continuation of the bull market. Rather, it is what you might expect in a recessionary environment. When I observed similar behavior last summer, with a risk-off rotation even as the market hit new highs, I cautioned that defensive stocks would not be able to continue to carry the market to new highs (with their low earnings growth and sky-high P/E ratios), but rather a risk-on rotation into cyclical sectors and small-mid caps would be necessary to sustain the uptrend. Instead, the mega-cap Tech names faltered and the market went into a downward spiral. Many analysts and pundits have been forecasting the same for this year. Read more at Scott Martindale's blog
7-12-19: 28th Sabrient Dividend UIT Launched
A new Sabrient Dividend UIT Portfolio (Ticker: FORPBX) -- 28th in the series -- was launched by First Trust Portfolios on July 12, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The portfolio will terminate on July 12, 2021. For more information, a prospectus, or a fact sheet, please visit First Trust Portfolios.
7-12-19: 6th Dividend Opportunity UIT Launched
The sixth portfolio in the Sabrient Dividend Opportunity UIT Series (Ticker: FSCRHX) was launched by First Trust Portfolios on July 12, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The primary difference between the Dividend Opportunity portfolio and the other Sabrient Dividend portfolios, is the length of term. The Dividend portfolios have a 2-year term, while the Dividend Opportunity Portfolio has a 15-month term,. This Dividend Opportunity portfolio will terminate on October 13, 2020. For more information, a prospectus, or a fact sheet, please visit First Trust Portfolios.
7-5-19: Earnings Busters Alerts for Friday, 7-5-19
BUY: Strategic Education, Inc. (STRA)
SELL: ArcBest Corporation (ARCB)
Details are in the Earnings Busters newsletter.
7-1-10: New Forward Looking Value UIT Launched
The 7th Sabrient Forward Looking Value Portfolio (FNOWLX) was launched by First Trust Portfolios on July 1, 2019. This portfolio seeks companies that are positioned to perform well in the near future by "looking forward" at anticipated earnings over the next few years. The stocks in the portfolio are selected by applying a comprehensive investment strategy developed by Sabrient. The portfolio will terminate on October 7, 2020. For a prospectus or fact sheet, please visit FirstTrustPortfolios.com.
6-20-19: Baker's Dozen Model Portfolio for June 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for June 2019 was launched on June 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on June 22, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
6-17-19: A new Sabrient Small Cap Growth UIT has launched
The 23rd Sabrient Small Cap Growth UIT Series (FMLYGX) was launched by First Trust Portfolios on June 17, 2019. The portfolio invests in top-ranked (at the time of their selection) small-cap stocks that represent a cross-section of industries that Sabrient believes are positioned to perform well in the coming year. The stocks are GARP stocks -- stocks that represent "growth at a reasonable price" -- and they are meant to be held for the full term of the trust, which terminates September 17, 2020. For a prospectus or fact sheet, please visit FirstTrustPortfolios.com.
6-10-19: Sector Detector: Stocks regain their footing after trade negotiations stumble
by Scott Martindale
President, Sabrient Systems
In my prior commentary in early May, I wrote that investors were aggressively bidding up stocks and appeared to have "stopped looking over their shoulders with fear and anxiety and are instead focused on the opportunities ahead." The S&P 500 was retrenching after a breakout to new highs in preparation for a major upside move driven by a risk-on rotation -- which I expected would bode quite well for Sabrient's Baker's Dozen portfolios that have been predominantly composed of stocks from growth-oriented cyclical sectors and small-mid caps. After all, recession fears had subsided, US and Chinese economic data were improving, Q1 corporate profits were coming in better than expected, the Fed had professed that it had our backs, and of course, a resolution to the US/China trade impasse was imminent. Or so it seemed. Instead, the month of May gave stocks a wild ride.
It was exactly one year ago that President Trump escalated the trade war with China from simple threats of tariffs to actual numbers and dates, which ignited a risk-off rotation and a starkly bifurcated market, as the S&P 500 large-cap index continued to rise on the backs of defensive sectors and mega-caps while risk-on cyclical sectors and small-mid caps sold off. The big oversold risk-on recovery following Christmas Eve began to peter out in late April as the S&P 500 challenged its all-time high, but then the breakdown in negotiations last month created another risk-off market reaction reminiscent of last summer. In other words, stocks and investor sentiment have been jerked around by Trump's tweetstorms. . . Read more at Scott Martindale's blog
6-6-19: Earnings Busters Alerts for Friday, 6-7-19
RENEW (BUY): Voya Financial, Inc. (VOYA)
Details are in the Earnings Busters newsletter.
6-4-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
5-24-19: A new Sabrient Defensive Equity UIT has launched
A new Sabrient Defensive Equity UIT (FBNLPX), 20th in the series, was launched by First Trust Portfolios on May 24, 2019. This UIT seeks to find companies that are positioned to perform well in environments of falling stock prices but also those companies that have the potential to provide solid performance in rising markets. The stocks in the portfolio are selected through an investment strategy process developed by Sabrient. The portfolio will terminate on August 24, 2020. For a fact sheet or prospectus, please FirstTrustPortfolios.com.
5-23-19: Earnings Busters Alerts for Friday, 5-24-19
BUY: DMC Global Inc. (BOOM)
SELL: Winnebago Industries, Inc. (WGO)
Details are in the Earnings Busters newsletter.
5-21-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
5-20-19: Baker's Dozen Model Portfolio for May 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for May 2019 was launched on May 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on May 21, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
5-15-19: 11th Rising Rate Portfolio Launched
A new Sabrient Rising Rate Portfolio (FZNADX)) -- 11th in the series -- was launched by First Trust Portfolios on May 15, 2019. Historically, certain stocks have outperformed the market in periods during which longer-term Treasury bonds have rising yields, and Sabrient believes 10-year and longer Treasury yields are likely to rise over the next several years. The Sabrient Rising Rate Portfolio is a unit investment trust that seeks to find companies that Sabrient believes are positioned to perform well in environments of rising Treasury yields. The portfolio will terminate on May 14, 2021. For a fact sheet or prospectus, please visit FirstTrustPortfolios.com.
5-14-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
5-9-19: Earnings Busters Alerts for Friday, 5-10-19
BUY: Pacira BioSciences, Inc. (PCRX)
SELL: Olin Corporation (OLN)
Details are in the Earnings Busters newsletter.
5-7-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
5-2-19: Sector Detector: Anticipation builds for US/China trade agreement
amid encouraging earnings beats
by Scott Martindale
President, Sabrient Systems
The S&P 500 and Nasdaq Composite indexes both hit new all-time highs this week on strong breadth, and all the major indexes appear to be consolidating recent gains before attempting an upside breakout. P/E multiples are expanding, particularly among large caps, as stocks rise despite a temporary slowdown in earnings growth. Why are investors bidding up stocks so aggressively? They have stopped looking over their shoulders with fear and anxiety and are instead focused on the opportunities ahead. And on that horizon, recession fears are falling, optimism regarding a US-China trade resolution is rising, US and Chinese economic data are improving, corporate profits are better than expected, and the Fed has agreed to step out of the way. All of this reduces uncertainty that typically holds back business investment. Stocks valuations are forward looking and a leading economic indicator, so they already seem to be pricing in expectations for stronger economic growth in the Q3, Q4, and 2020.
I said in my commentary last month that I thought we may see upside surprises in Q1 and Q2 earnings announcements, given the low bar that had been reset, and indeed we are seeing higher-than-average earnings beats -- including big names like Apple (AAPL) and Facebook (FB), among many others -- as half of the S&P 500 companies have reported. Moreover. . . Read more at Scott Martindale's blog
4-30-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
4-25-19: Earnings Busters Alerts for Friday, 4-26-19
BUY: Dine Brands Global, Inc. (DIN)
SELL: Steel Dynamics, Inc. (STLD)
Details are in the Earnings Busters newsletter.
4-23-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
4-18-19: Baker's Dozen Model Portfolio for April 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for April 2019 was launched on April 18, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on April 20, 2020. To follow the performance of this and previous Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
4-16-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
4-16-19: New Sabrient Dividend UIT Launched
A new Sabrient Dividend UIT Portfolio (Ticker: FPJYRX) -- 27th in the series -- was launched by First Trust Portfolios on April 15, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The portfolio will terminate on April 15, 2021. For more information, a prospectus, or a fact sheet, please visit First Trust Portfolios.
4-16-19: 5th Dividend Opportunity UIT Launched
The fifth portfolio in the Sabrient Dividend Opportunity UIT Series (Ticker: FWKNEX) was launched by First Trust Portfolios on April 15, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The primary difference between the Dividend Opportunity portfolio and the other Sabrient Dividend portfolios, is the length of term. The Dividend portfolios have a 2-year term, while the Dividend Opportunity Portfolio has a 15-month term,. This Dividend Opportunity portfolio will terminate on July 15, 2020. For more information, a prospectus, or a fact sheet, please visit First Trust Portfolios.
4-12-19: Earnings Busters Alerts for Monday, 4-15 2019
BUY: United Rentals Inc. (URI)
SELL: U.S. Foods Holding Corp. (USFD)
Details are in the Earnings Busters newsletter.
4-9-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
4-2-19: Sector Detector: Stellar Q1 performance confronts brief yield curve inversion
by Scott Martindale
President, Sabrient Systems
You might not have realized it given the technical consolidation in March, but Q1 2019 ended up giving the S&P 500 its best Q1 performance of the new millennium, and the best quarterly performance (of any quarter) since Q3 2009. Investors could be forgiven for thinking the powerful rally from Christmas Eve through February was nothing more than a proverbial "dead cat bounce," given all the negative news about a global economic slowdown, the still-unresolved trade skirmish with China, a worsening Brexit, reductions to US corporate earnings estimates, and the Fed's sudden about-face on rate hikes. But instead, stocks finished Q1 with a flourish and now appear to be poised to take another run at all-time highs. The S&P 500, for example, entered Q2 less than 4% below its all-time high.
Overall, we still enjoy low unemployment, rising wages, and strong consumer sentiment, as well as a supportive Fed ("Don't fight the Fed!") keeping rates "lower for longer" (and by extension, debt servicing expenses and discount rates for equity valuation) and maintaining $1.5 trillion in excess reserves in the financial system. Likewise, the ECB extended its pledge to keep rates at record lows, and China has returned to fiscal and monetary stimulus to revive its flagging growth stemming from the trade war. Meanwhile, Corporate America has been quietly posting record levels of dividends and share buybacks, as well as boosting its capital expenditures -- which is likely to accelerate once a trade deal with China is signed (which just became more likely with the apparently-benign findings of the Mueller investigation). In addition, the bellwether semiconductor industry is presenting a more upbeat tone and an upturn from a cyclical bottom (due to temporary oversupply), while crude oil has broken out above overhead resistance at $60.
On the other hand . . . Read more at Scott Martindale's blog
4-2-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
3-29-19: Earnings Busters Alerts for Friday, March 29, 2019
BUY: Allegheny Technologies Inc. (ATI)
SELL: Mellanox Technologies Ltd (MLNX)
Details are in the Earnings Busters newsletter.
3-26-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
3-20-19: Baker's Dozen Model Portfolio for March 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for March 2019 was launched on March 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 12 months. The portfolio will terminate on March 21, 2020. To follow the performance of this and earlier Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
3-19-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
3-18-19: Small Cap Growth UIT #22 Launched
The 22nd Sabrient Small Cap Growth UIT Series (FRUYTX) was launched by First Trust Portfolios on March 18, 2019. The portfolio invests in top-ranked (at the time of their selection) small-cap stocks that represent a cross-section of industries that Sabrient believes are positioned to perform well in the coming year. The stocks are GARP stocks -- stocks that represent "growth at a reasonable price" -- and they are meant to be held for the full term of the trust, which terminates June 18, 2020. For a prospectus or fact sheet, please visit FirstTrustPortfolios.com.
3-14-19: Earnings Busters Alerts for Friday, March 15, 2019
BUY: Hilton Worldwide Holdings Inc. (HLT)
SELL: XPO Logistics, Inc. (XPO)
Details are in the Earnings Busters newsletter.
3-12-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
3-5-19: Sector Detector: Fundamentals suggest impressive risk-on recovery will continue
by Scott Martindale
President, Sabrient Systems
The first two months of 2019 have treated Sabrient's portfolios quite well. After a disconcerting 3Q2018, in which small-cap and cyclicals-heavy portfolios badly trailed the broad market amid a fear-driven defensive rotation, followed by a dismal Q4 for all stocks, the dramatic V-bottom recovery has been led by those same forsaken small-mid caps and cyclical sectors. All of our 12 monthly all-cap Baker's Dozen portfolios from 2018 have handily outperformed the S&P 500 benchmark since then, as fundamentals seem to matter once again to investors. Indeed, although valuations can become disconnected from fundamentals for a given stretch of time (whether too exuberant or too pessimistic), share prices eventually do reflect fundamentals. Indeed, it appears that institutional fund managers and corporate insiders alike have been scooping up shares of attractive-but-neglected companies from cyclical sectors and small-mid caps in what they evidently saw as a buying opportunity. Read more at Scott Martindale's blog
2-28-19: Earnings Busters Alerts for Friday, March 1, 2019
BUY: Mellanox Technologies, Ltd. (MLNX)
SELL: T-Mobile US, Inc. (TMUS)
Details are in the Earnings Busters newsletter.
2-27-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
2-27-18: New Defensive Equity Portfolio Launched
A new Sabrient Defensive Equity UIT (FWLDQX), 19th in the series, was launched by First Trust Portfolios on February 27, 2019. This UIT seeks to find companies that are positioned to perform well in environments of falling stock prices but also those companies that have the potential to provide solid performance in rising markets. The stocks in the portfolio are selected through an investment strategy process developed by Sabrient. The portfolio will terminate on May 27, 2020. For a fact sheet or prospectus, please visit FirstTrustPortfolios.com.
2-20-19: Baker's Dozen Model Portfolio for February 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for February 2019 was launched on February 20, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 13 months. The portfolio will terminate on February 21, 2020. To follow the performance of this and earlier Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
2-15-19: Earnings Busters Alerts for Friday, February 15, 2019
BUY: CF Industries Holdings Inc. (CF)
SELL: Progressive Corporation (PGR)
Details are in the Earnings Busters newsletter.
2-12-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
1-31-19: Earnings Busters Alerts for Friday, February 2, 2019
BUY: SS&C Technologies Holdings, Inc. (SSNC)
SELL: Lam Research Corporation (LRCX)
Details are in the Earnings Busters newsletter.
1-29-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
1-18-19: Baker's Dozen Model Portfolio for January 2019 Has Launched
Sabrient Baker's Dozen Model Portfolio for January 2019 was launched on January 18, 2019. This portfolio, like all Baker's Dozen portfolios, comprises 13 top-ranked stocks from a cross-section of market caps and industries based on our GARP approach, i.e., growth at a reasonable price. Sabrient believes each of these stocks is positioned to perform well for the next 13 months. The portfolio will terminate on January 20, 2020. To follow the performance of this and earlier Baker's Dozen portfolios, please visit Sabrient Baker's Dozen website.
1-17-19: Earnings Busters Alerts for Friday, January 18, 2019
BUY: Alaska Air Group, Inc. (ALK)
SELL: PulteGroup, Inc. (PHM)
Details are in the Earnings Busters newsletter.
1-16-19: New Sabrient Dividend UIT Launched
The 26th Sabrient Dividend UIT Portfolio (Ticker: FEVMDX) was launched by First Trust Portfolios on January 16, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The portfolio will terminate on January 15, 2021. For more information, a prospectus, or a fact sheet, please First Trust Portfolios.
1-16-19: 4th Dividend Opportunity UIT Launched
The fourth portfolio in the Sabrient Dividend Opportunity UIT Series (Ticker: FOEAMX) was launched by First Trust Portfolios on January 16, 2019. This UIT seeks companies with above-average total return through a combination of capital appreciation and dividend income. The stocks are selected through an investment strategy process developed by Sabrient. The primary difference between the Dividend Opportunity portfolio and the other Sabrient Dividend portfolios, is the length of term. The Dividend portfolios have a 2-year term, while the Dividend Opportunity Portfolio has a 15-month term. This Dividend Opportunity portfolio will terminate on April 16, 2020. For more information, a prospectus, or a fact sheet, please visit First Trust Portfolios.
1-15-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
1-9-19: Sector Detector: Investors enter New Year with combination of apprehension and
optimism
by Scott Martindale
President, Sabrient Systems
After an "investor's paradise" year in 2017 -- buoyed by ultra-low levels of volatility, inflation, and interest rates, and fueled even more by the promise of fiscal stimulus (which came to fruition by year end) -- 2018 was quite different. First, it endured a long overdue correction in February that reminded investors that volatility is not dead, and the market wasn't quite the same thereafter, as investors' attention focused on escalating trade wars and central bank monetary tightening, leading to a defensive risk-off rotation mid-year and ultimately to new lows, a "technical bear market" (in the Nasdaq and Russell 2000), and the worst year for stocks since the 2008 financial crisis. Then, it was confronted with the Brexit negotiations falling apart, Italy on the verge of public debt default, violent "yellow vest" protests in France, key economies like China and Germany reporting contractionary economic data, and bellwether companies like FedEx (FDX) and Apple (AAPL) giving gloomy sales forecasts that reflect poorly on the state of the global economy. The list of obstacles seems endless.
Moreover, US stocks weren't the only asset class to take a beating last year. International equities fared even worse. Bonds, oil and commodities, most systematic strategies, and even cryptocurrencies all took a hit. A perfect scenario for gold to flourish, right? Wrong, gold did poorly, too. There was simply nowhere to hide. Deutsche Bank noted that 93% of global financial markets had negative returns in 2018, the worst such performance in the 117-year history of its data set. It was a bad year for market beta, as diversification didn't offer any help. Read more at Scott Martindale's blog
1-8-19: Weekly Stock Ratings Changes Now Available
This week's Stock Ratings Changes report is available for downloading.
1-3-19: Earnings Busters Alerts for Friday, January 4, 2019
BUY (RENEW): Commercial Metals Company (CMC)
Details are in the Earnings Busters newsletter.
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