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

First American Financial / Equity Bottom-Up

<ul><li>First American Financial Corporation recently disclosed its financial results for the second quarter of 2024, navigating a market fraught with challenges yet buoyed temporarily by a seasonal uplift in demand.</li><li>The company reported a total revenue of $1.6 billion with an adjusted earnings per diluted share of $1.27.</li><li>The title segment, a primary revenue generator for the company, saw an adjusted pretax margin of 11.9%, a slight decrease from the previous year’s 12.6%.</li></ul>

First American Financial Corporation recently disclosed its financial results for the second quarter of 2024, navigating a market fraught with challenges yet buoyed temporarily by a seasonal uplift in demand.The company reported a total revenue of $1.6 billion with an adjusted earnings per diluted share of $1.27.The title segment, a primary revenue generator for the company, saw an adjusted pretax margin of 11.9%, a slight decrease from the previous year’s 12.6%.

First American Financial Corporation: Managing Technological Advancements In Title Underwriting & The Challenges Related To The Same! - Major Drivers

<ul><li>First American Financial Corporation recently reported its first quarter earnings for 2023, facing distinctly challenging conditions within the mortgage and real estate sectors marked by elevated interest rates and low housing inventory levels.</li><li>These external pressures have maintained transaction volumes at historically low levels, which has had a direct impact on the company's financial performance for the quarter.</li><li>However, there were early signs in March and April showing a potential rise in resale orders, suggesting an initial recovery phase, which could hint at a slow yet positive shift in market dynamics.</li></ul>

First American Financial Corporation recently reported its first quarter earnings for 2023, facing distinctly challenging conditions within the mortgage and real estate sectors marked by elevated interest rates and low housing inventory levels.These external pressures have maintained transaction volumes at historically low levels, which has had a direct impact on the company's financial performance for the quarter.However, there were early signs in March and April showing a potential rise in resale orders, suggesting an initial recovery phase, which could hint at a slow yet positive shift in market dynamics.

First American Financial Corporation: Initiation of Coverage - These Are The 4 Pivotal Factors Driving Their Performance In 2024 & Beyond!  - 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

US Treasury (10 Yr Generic) / Technical Analysis

<ul>
<li>We continue to expect the 4165-4200 level to cap upside on the S&amp;P 500, but cannot rule out a trip to 4300-4325 (August 2022 highs)</li>
<li>Either way, we continue to preach caution and believe that upside is limited on the market indexes.</li>
<li>Treasury yields are starting to reverse above multi-month downtrends, and we are monitoring for similar reversals on the U.S. dollar (DXY) and high yield spreads.</li>
</ul>


We continue to expect the 4165-4200 level to cap upside on the S&amp;P 500, but cannot rule out a trip to 4300-4325 (August 2022 highs)
Either way, we continue to preach caution and believe that upside is limited on the market indexes.
Treasury yields are starting to reverse above multi-month downtrends, and we are monitoring for similar reversals on the U.S. dollar (DXY) and high yield spreads.


Treasury Yields Reversing Higher; U.S. Dollar and High Yield Spreads to Follow?

Key support levels we have been monitoring (the 200-day MAs on the S&amp;P 500 and equal-weighted S&amp;P 500) have failed to hold, something we noted as increasingly likely in last week’s Compass. Despite the break below support, the move lower has been orderly but technical indications remain mixed. The weight of the evidence leads us to remain cautious. In today’s report we highlight attractive Groups and stocks within Materials and Financials: Large-Cap and Small-Cap Gold, and Large-Cap and Small-Cap Property &amp; Casualty Insurance.

Key support levels we have been monitoring (the 200-day MAs on the S&amp;P 500 and equal-weighted S&amp;P 500) have failed to hold, something we noted as increasingly likely in last week’s Compass. Despite the break below support, the move lower has been orderly but technical indications remain mixed. The weight of the evidence leads us to remain cautious. In today’s report we highlight attractive Groups and stocks within Materials and Financials: Large-Cap and Small-Cap Gold, and Large-Cap and Small-Cap Property &amp; Casualty Insurance.

U.S. Equity Strategy: Technical Indications Mixed; Outlook Remains Cautious

Technicals continue to endorse a bullish outlook. And with the S&amp;P 500 breaking out to new highs yesterday, and insurance stocks recovering from last week, we are benefitting from renewed clarity following the muddled, past two months.In today’s report we highlight actionable ideas in the following Groups:<ul><li>Semis... see page 14-20</li><li>Insurers... see page 8-13</li></ul>

Technicals continue to endorse a bullish outlook. And with the S&amp;P 500 breaking out to new highs yesterday, and insurance stocks recovering from last week, we are benefitting from renewed clarity following the muddled, past two months.In today’s report we highlight actionable ideas in the following Groups:Semis... see page 14-20Insurers... see page 8-13

U.S. Equity Uptrend Resumes; Outlook Remains Bullish

United States

First American Financial Corporation provides insurance services. The Company offers title, lenders, and property and casualty insurance, as well as foreclosure, asset disposition, commercial due diligence, and trustee services. First American Financial serves individuals and businesses throughout the United States.

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First American Financial (FAF US)

First American Financial Corporation: Initiation of Coverage - These Are The 4 Pivotal Factors Driving Their Performance In 2024 & Beyond! - Major Drivers

First American Financial Corporation recently reported its first quarter earnings for 2023, facing distinctly challenging conditions within the...

Baptista Research

Treasury Yields Reversing Higher; U.S. Dollar and High Yield Spreads to Follow?

We continue to expect 4165-4200 to cap upside on the S&P 500, but a trip to 4300-4325 is possible. We continue to preach caution. Treasury yields...

Vermilion Research

U.S. Equity Strategy: Technical Indications Mixed; Outlook Remains Cautious

Key support levels we have been monitoring (the 200-day MAs on the S&P 500 and equal-weighted S&P 500) have failed to hold, something we...

Vermilion Research

U.S. Equity Uptrend Resumes; Outlook Remains Bullish

Technicals continue to endorse a bullish outlook. And with the S&P 500 breaking out to new highs yesterday, and insurance stocks recovering...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

First American Financial Corporation: Managing Technological Advancements In Title Underwriting & The Challenges Related To The Same! - Major Drivers

First American Financial Corporation recently disclosed its financial results for the second quarter of 2024, navigating a market fraught with...

Baptista Research

First American Financial Corporation: Initiation of Coverage - These Are The 4 Pivotal Factors Driving Their Performance In 2024 & Beyond! - Major Drivers

First American Financial Corporation recently reported its first quarter earnings for 2023, facing distinctly challenging conditions within the...

Baptista Research

Treasury Yields Reversing Higher; U.S. Dollar and High Yield Spreads to Follow?

We continue to expect 4165-4200 to cap upside on the S&P 500, but a trip to 4300-4325 is possible. We continue to preach caution. Treasury yields...

Vermilion Research

U.S. Equity Strategy: Technical Indications Mixed; Outlook Remains Cautious

Key support levels we have been monitoring (the 200-day MAs on the S&P 500 and equal-weighted S&P 500) have failed to hold, something we...

Vermilion Research

U.S. Equity Uptrend Resumes; Outlook Remains Bullish

Technicals continue to endorse a bullish outlook. And with the S&P 500 breaking out to new highs yesterday, and insurance stocks recovering...

Vermilion Research