In today’s briefing:
- Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX
- Danaher Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- Illinois Tool Works Inc.: Initiation of Coverage – Diversified Business Lines & Other Drivers
- Danaher Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Illinois Tool Works Inc.: Initiation of Coverage – Financial Forecasts
Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX
- Since late November we have been discussing our expectations for a pullback, while recommending shifting exposure to defensives (Staples, Utilities, Health Care) and/or taking profits.
- The pullback is finally happening following breaks below 3910 support on the S&P 500, $177.50 support on the Russell 2000 (IWM), and $279 support on the Nasdaq 100 (QQQ).
- These levels are now resistance, while major resistance remains at 200-dayMAs/YTD downtrends. Stick with defensives/cash as we believe a test of the YTD lows on the aforementioned indexes is likely.
Danaher Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Danaher Corporation, a well-known manufacturer and provider of instruments and various other offerings to the medical, diagnostics, and environmental sectors.
- The company had a strong quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
- It delivered market share gains and strong price execution amid strong foreign exchange headwinds and an inflationary environment.
Illinois Tool Works Inc.: Initiation of Coverage – Diversified Business Lines & Other Drivers
- This is our first report on industrials giant, Illinois Tool Works.
- The company achieved a 13% revenue increase on the top line, with 16% organic growth from its core businesses which is a good sign.
- While the recent results were good, Illinois Tool Works is far from being immune to the potential macro problems and uncertainties ahead.
Danaher Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Danaher Corporation is a renowned manufacturer and provider of instruments and various other offerings to the medical, diagnostics, and environmental sectors.
- The company has had a decent financial performance off-late and has been consistently delivering market share gains and strong price execution amid strong foreign exchange headwinds and an inflationary environment.
- Its acquisition-led growth strategy implies that it will be in regular need for debt in order to fund acquisitions.
Illinois Tool Works Inc.: Initiation of Coverage – Financial Forecasts
- Illinois Tool Works is an industrials major catering to a wide variety of end markets ranging from automotive to welding and construction projects.
- The company’s financial performance has been decent despite the fact that the operating climate is still quite dynamic and challenging.
- While the recent results were good, Illinois Tool Works is far from being immune to the potential macro problems and uncertainties ahead.
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