Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Cincinnati Financial Corporation's recent earnings call revealed several key insights into the company's performance and strategy.</li><li>The company reported a net income of $820 million for Q3 2024, bolstered by a significant $645 million after-tax increase in the fair value of equity securities.</li><li>Despite this income, the company's non-GAAP operating income decreased by $37 million to $224 million, primarily due to an $86 million rise in after-tax catastrophe losses, reflecting the impact of Hurricane Helene.</li></ul>

Cincinnati Financial Corporation's recent earnings call revealed several key insights into the company's performance and strategy.The company reported a net income of $820 million for Q3 2024, bolstered by a significant $645 million after-tax increase in the fair value of equity securities.Despite this income, the company's non-GAAP operating income decreased by $37 million to $224 million, primarily due to an $86 million rise in after-tax catastrophe losses, reflecting the impact of Hurricane Helene.

Cincinnati Financial Corporation: The Bold Portfolio Rebalancing: How They're Mastering High-Yield Bonds! - Major Drivers

<ul><li>Cincinnati Financial has reported a strong performance for the second quarter of 2024, reflecting a robust financial position and sustained growth across various segments.</li><li>The company registered a net income of $312 million, bolstered by an after-tax increase of $112 million due to the appreciation in the fair value of equity securities.</li><li>Non-GAAP operating income also saw an uptick, rising by $13 million from the previous year to $204 million, a change attributed primarily to a $17 million increase in investment income.</li></ul>

Cincinnati Financial has reported a strong performance for the second quarter of 2024, reflecting a robust financial position and sustained growth across various segments.The company registered a net income of $312 million, bolstered by an after-tax increase of $112 million due to the appreciation in the fair value of equity securities.Non-GAAP operating income also saw an uptick, rising by $13 million from the previous year to $204 million, a change attributed primarily to a $17 million increase in investment income.

Cincinnati Financial Corporation: Expanding Strategic Agency Relationships and Distribution Network To Drive Growth! - Major Drivers

<ul><li>Cincinnati Financial Corporation reported strong financial results for the first quarter of 2024, highlighting significant progress in underwriting profitability and growth in investment income.</li><li>The net income reported was $755 million, which included a substantial gain of $484 million attributed to the increase in the fair value of equity securities.</li><li>The non-GAAP operating income also showed a positive trend, nearly doubling from the previous year to $272 million, thanks to a reduction in catastrophe losses and robust operating performance.</li></ul>

Cincinnati Financial Corporation reported strong financial results for the first quarter of 2024, highlighting significant progress in underwriting profitability and growth in investment income.The net income reported was $755 million, which included a substantial gain of $484 million attributed to the increase in the fair value of equity securities.The non-GAAP operating income also showed a positive trend, nearly doubling from the previous year to $272 million, thanks to a reduction in catastrophe losses and robust operating performance.

Cincinnati Financial Corporation: Initiation of Coverage - A Story Of Expansion and Diversification in Reinsurance and Global Operations! - Major Drivers

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>The S&amp;P 500 (SPX) is back to test YTD highs and important resistance in the 5670-5783 range. This is an important target/resistance area we have discussed for weeks.</li>
<li>Using the 2007 SPX topping analog suggests a 2% or less move above the prior all-time high set in July at 5670 before topping, which gives the 5783 number.</li>
<li>As long as SPX does not have a weekly close above 5783 we continue to recommend reducing risk and shifting to defensives,and this is the ideal time to do so.</li>
</ul>


The S&amp;P 500 (SPX) is back to test YTD highs and important resistance in the 5670-5783 range. This is an important target/resistance area we have discussed for weeks.
Using the 2007 SPX topping analog suggests a 2% or less move above the prior all-time high set in July at 5670 before topping, which gives the 5783 number.
As long as SPX does not have a weekly close above 5783 we continue to recommend reducing risk and shifting to defensives,and this is the ideal time to do so.


SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 Is Resistance, 2007 Analog on Track

<ul>
<li>Since early November 2023 we have laid out our bullish expectations for a year-end rally that we anticipated would continue into the early part of 2024. </li>
<li>Here we are in the early part of 2024, and we see every reason to continue riding this bull market higher. We see small- and mid-caps resuming uptrends $IWM $VXF</li>
<li>Downgrading Staples (XLP) to underweight after brief stint at market weight. Highlighting several buys within Financials: Property &amp; Casualty Insurance BRK.B, PGR, CB, TRV, ALL, CINF, ERIE, and more</li>
</ul>


Since early November 2023 we have laid out our bullish expectations for a year-end rally that we anticipated would continue into the early part of 2024. 
Here we are in the early part of 2024, and we see every reason to continue riding this bull market higher. We see small- and mid-caps resuming uptrends $IWM $VXF
Downgrading Staples (XLP) to underweight after brief stint at market weight. Highlighting several buys within Financials: Property &amp; Casualty Insurance BRK.B, PGR, CB, TRV, ALL, CINF, ERIE, and more


Continue Riding This Bull Market Higher; Small- And Mid-Caps Resuming Uptrends; Downgrading Staples

United States

Cincinnati Financial Corporation, through its subsidiaries, offers property and casualty and life insurance.  The Company markets a variety of insurance products and provides leasing and financing services.

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Cincinnati Financial (CINF US)

Cincinnati Financial Corporation: The Bold Portfolio Rebalancing: How They're Mastering High-Yield Bonds! - Major Drivers

Cincinnati Financial Corporation's recent earnings call revealed several key insights into the company's performance and strategy. The company...

Baptista Research

Cincinnati Financial Corporation: Expanding Strategic Agency Relationships and Distribution Network To Drive Growth! - Major Drivers

Cincinnati Financial has reported a strong performance for the second quarter of 2024, reflecting a robust financial position and sustained growth...

Baptista Research

Cincinnati Financial Corporation: Initiation of Coverage - A Story Of Expansion and Diversification in Reinsurance and Global Operations! - Major Drivers

Cincinnati Financial Corporation reported strong financial results for the first quarter of 2024, highlighting significant progress in...

Baptista Research

SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 Is Resistance, 2007 Analog on Track

$SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 is Resistance, 2007 Analog on Track if Below 5783. Still Neutral, prefer to sell...

Vermilion Research

Continue Riding This Bull Market Higher; Small- And Mid-Caps Resuming Uptrends; Downgrading Staples

Continue Riding This Bull Market Higher; Small- and Mid-Caps Resuming Uptrends $IWM $RTY $VXF; Downgrading Consumer Staples $XLP to Underweight...

Vermilion Research

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