In today’s briefing:
- Russell 2000 (IWM) Testing $170; Downgrading Energy; 10-Yr Treasury Yield Testing 3.4% Support
- Generac Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Vulcan Materials Company: Detailed Credit Analysis & Financial Strength Evaluation Report
- Warner Bros. Discovery Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Generac Holdings Inc.: Initiation of Coverage – Acquisition-Led Growth & Innovation
- FMC Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- O’Reilly Automotive Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- O’Reilly Automotive Inc.: Initiation of Coverage – Business Strategy
- Parker-Hannifin Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Rockwell Automation Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
Russell 2000 (IWM) Testing $170; Downgrading Energy; 10-Yr Treasury Yield Testing 3.4% Support
- Our 2023 outlook remains unchanged; we see the market indexes consolidating within broad horizontal ranges, and we expect the top-end of the range to be 4165-4200 on the S&P 500.
- The bottom-end of the range is at the 2022 lows (3490). Another possible support level we are monitoring is at the December 2022 lows (3765).
- The Russell 2000 (IWM) is testing important support at $170 (the Dec. 2022 lows and the prior downtrend from 2022), suggesting this is a logical time for an oversold bounce.
Generac Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Generac Holdings is a major energy technology player with a reasonable amount of debt on its balance sheet and showing ongoing growth in its commercial and industrial product categories.
- Its weaker residential product sales have been a point of concern for the management.
- Sales of C&I products have climbed significantly, with strong core sales growth across all domestic channels and all overseas areas.
Vulcan Materials Company: Detailed Credit Analysis & Financial Strength Evaluation Report
- Vulcan Materials Company is a well-known producer, distributor, and seller of construction materials.
- The company did continue its reliable cash generation and careful capital deployment and its free cash flow conversion has been above 90% on average over the last four years.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
Warner Bros. Discovery Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Discovery is a major global media company that is going through a turbulent phase.
- In terms of direct-to-consumer, they are successfully moving towards their objective of realizing profitability in streaming, a significant and potent part of their business.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
Generac Holdings Inc.: Initiation of Coverage – Acquisition-Led Growth & Innovation
- This is our first report on a renowned energy technology player, Generac Holdings.
- Sales of C&I products climbed significantly, with strong core sales growth across all domestic channels and all overseas areas.
- We initiate coverage on the stock of Generac Holdings Inc. with a ‘Hold’ rating.
FMC Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- FMC Corporation is a major agricultural sciences player in the U.S.
- The company has been witnessing high volume growth and its aggressive pricing has helped build a strong financial position.
- Agricultural markets remain strong with high commodity prices, expanding cropland, and optimistic grower sentiment.
O’Reilly Automotive Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- O’Reilly Automotive, Inc is one of the largest retailers of automobile aftermarket parts in the U.S.
- The company has consistently reported strong sales volumes and the management claims that the core fundamental demand drivers are still strong, which supports the health of the automotive aftermarket.
- DIY and professional businesses have showed strength across 2022 and their high average ticket increase contributed to the improved performance in their DIY division, which accelerated on a 1, 2, and 3-year comparable store sales growth basis.
O’Reilly Automotive Inc.: Initiation of Coverage – Business Strategy
- This is our first report on O’Reilly Automotive, Inc., one of the largest retailers of automobile aftermarket parts in the U.S.
- O’Reilly Automotive had a great last quarter and ended 2022 with an all-around beat.
- The company reported strong sales volumes and the management claims that the core fundamental demand drivers are still strong, which supports the health of the automotive aftermarket.
Parker-Hannifin Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Parker-Hannifin Corporation is among the market leader in motion and control technologies across the globe.
- Parker-Hannifin has also benefited from a positive net impact of the aircraft Wheel and Brake sale and the Meggitt acquisition.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
Rockwell Automation Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Rockwell Automation is a major provider of digital transformation and industrial automation solutions across the world.
- Its backlog orders continue to increased sequentially with order cancellation rates staying in the low single digits as per recent results.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
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