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>LGI Homes, a player in the residential construction sector, delivered a robust performance in the second quarter of 2024, navigating challenges such as rising costs and affordability issues with strategic pricing and community development efforts, underscoring a delicate balancing act between growth and profitability pressures.</li>
<li>The company sold 1,655 homes, marking a significant revenue of over $602 million with an improved average sales price of $364,000.</li>
<li>This resulted in a substantial improvement in gross margins—up 300 basis points year-over year to 25%, reaching pre-pandemic levels, indicative of effective cost management and pricing strategies.</li>
</ul>


LGI Homes, a player in the residential construction sector, delivered a robust performance in the second quarter of 2024, navigating challenges such as rising costs and affordability issues with strategic pricing and community development efforts, underscoring a delicate balancing act between growth and profitability pressures.
The company sold 1,655 homes, marking a significant revenue of over $602 million with an improved average sales price of $364,000.
This resulted in a substantial improvement in gross margins—up 300 basis points year-over year to 25%, reaching pre-pandemic levels, indicative of effective cost management and pricing strategies.


LGI Homes Inc.: Leveraging Land Development & Community Expansion To Drive Growth!

<ul>
<li>LGI Homes showcased a mixed financial performance in the first quarter of 2024, signaling both promising aspects and areas of concern that merit close investor attention.</li>
<li>The company reported a revenue of $390.9 million, driven primarily by the delivery of 1,083 homes at an average selling price (ASP) of approximately $360,897.</li>
<li>Despite a decline of 19.8% in revenue year-over-year, largely due to a decreased closing volume of 20.7%, LGI Homes managed to slightly offset this with a modest ASP increase of 1.2%.</li>
</ul>


LGI Homes showcased a mixed financial performance in the first quarter of 2024, signaling both promising aspects and areas of concern that merit close investor attention.
The company reported a revenue of $390.9 million, driven primarily by the delivery of 1,083 homes at an average selling price (ASP) of approximately $360,897.
Despite a decline of 19.8% in revenue year-over-year, largely due to a decreased closing volume of 20.7%, LGI Homes managed to slightly offset this with a modest ASP increase of 1.2%.


LGI Homes: Is Its Pricing Strategy To Offset Rising Costs Enough To Reduce Our Pessimism?

<ul>
<li>LGI Homes had a solid fourth quarter and met all of its operational and financial goals for the full year.</li>
<li>Despite being faced with a few challenges, the company manages to outperform its initial expectations.</li>
<li>Among the notable achievements included the delivery of 6,729 homes, which was on the high end of their original guidance and represented a 1.6% increase year-over-year.</li>
</ul>


LGI Homes had a solid fourth quarter and met all of its operational and financial goals for the full year.
Despite being faced with a few challenges, the company manages to outperform its initial expectations.
Among the notable achievements included the delivery of 6,729 homes, which was on the high end of their original guidance and represented a 1.6% increase year-over-year.


LGI Homes: Initiation Of Coverage - What Is Its Geographic Expansion Strategy?

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>We still recommend a tactical overweight to defensives (Staples, Utilities, Healthcare, and gold miners) as the SPX tests our 4165-4200 resistance range, and also resistance from the prior 1.5-month uptrend.</li>
<li>As we await Wednesdays FOMC announcement, the DJIA and Nasdaq Composite are testing 1-year resistances at 34,280 and 12,300, the DXY appears to be inflecting higher, and breadth remains weak.</li>
<li>While we still see a reach to 4300-4325 as possible, we believe playing for more upside is akin to picking up pennies in front of a steamroller.</li>
</ul>


We still recommend a tactical overweight to defensives (Staples, Utilities, Healthcare, and gold miners) as the SPX tests our 4165-4200 resistance range, and also resistance from the prior 1.5-month uptrend.
As we await Wednesdays FOMC announcement, the DJIA and Nasdaq Composite are testing 1-year resistances at 34,280 and 12,300, the DXY appears to be inflecting higher, and breadth remains weak.
While we still see a reach to 4300-4325 as possible, we believe playing for more upside is akin to picking up pennies in front of a steamroller.


S&P 500 Testing 4165-4200, DJIA Testing 34,280, Nasdaq Composite Testing 12,300; Stay Defensive

US Treasury (10 Yr Generic) / Technical Analysis

<p>Considering the absence of breakdowns for the major indexes and for individual Sectors, along with the Fed covering investors’ backs, we continue to have a bullish outlook and we believe that the path of least resistance remains higher. In this report we outline our bullish case and highlight actionable opportunities across all 12 sectors.</p>

Considering the absence of breakdowns for the major indexes and for individual Sectors, along with the Fed covering investors’ backs, we continue to have a bullish outlook and we believe that the path of least resistance remains higher. In this report we outline our bullish case and highlight actionable opportunities across all 12 sectors.

U.S. Equity Strategy - Bullish Outlook Intact

United States

LGI Homes, Inc. designs and constructs homes . The Company builds homes located in Texas, Arizona, Florida and Georgia.

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Lgi Homes Inc (LGIH US)

LGI Homes Inc.: Leveraging Land Development & Community Expansion To Drive Growth!

The company sold 1,655 homes, marking a significant revenue of over $602 million with an improved average sales price of $364,000.

Baptista Research

LGI Homes: Is Its Pricing Strategy To Offset Rising Costs Enough To Reduce Our Pessimism?

LGI Homes showcased a mixed financial performance in the first quarter of 2024, signaling both promising aspects and areas of concern that merit...

Baptista Research

LGI Homes: Initiation Of Coverage - What Is Its Geographic Expansion Strategy?

LGI Homes had a solid fourth quarter and met all of its operational and financial goals for the full year. Despite being faced with a few...

Baptista Research

S&P 500 Testing 4165-4200, DJIA Testing 34,280, Nasdaq Composite Testing 12,300; Stay Defensive

$SPX testing our 4165-4200 resistance range, $DJI testing 34,280 1-yr resistance, Nasdaq Comp $COMPQ testing critical 12,300 resistance. All while...

Vermilion Research

U.S. Equity Strategy - Bullish Outlook Intact

Considering the absence of breakdowns for the major indexes and for individual Sectors, along with the Fed covering investors’ backs, we continue...

Vermilion Research

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