Daily Brief United States: S&P 500 INDEX, Quantum Computing , Lifevantage , Flotek Industries , Gogo Inc, VAALCO Energy, Vestis and more

• E-Mini S&P 500 Futures closed down at 4971.29 on Tuesday. Big recovery rally at the end of the day, but the sell-off could continue into the end of the week.
• Both the DAILY and WEEKLY time period are already OVERSOLD according to our models, however we see no reason to rush to buy.
• This insight is a roadmap for the next 2-3 days, to find support levels to go LONG, to profit on the next, DAILY, LONG reversal.

• The size of the quantum computing market depends on which source you consult and how it defines the market.
• The average CAGR is 29% for a billion-dollar market, hitting $4- 6 billion in 2030.
• Quantum computing is a new type of computing that uses the principles of quantum mechanics to solve problems that are too complex for traditional computers. 

• We have updated our models following the company’s 2QFY24 (December) earnings release.
• We are raising our EPS estimates for FY24 (June) to $0.60 from $0.55, FY25 (June) to $0.70 from $0.65, and FY26 (June) to $0.80 from $0.75. Since 2QFY24 beat our previous forecast by $0.06, we are essentially flowing through that upside.
• Our $0.60 EPS estimate for FY24 is toward the lower end of management’s new range of $0.57-0.67, which was raised from $0.52-0.62 at the time of the release.

• Flotek’s suite of chemical solutions, which can help customers increase economic returns on their capital investment, helped the company gain market share during FY23 despite headwinds created by a declining US rig count.
• The company’s prescriptive chemistry solutions, combined with its proprietary Complex nano Fluid (CnF)® technologies, have demonstrated improved production performance over a large population of wells completed in the Permian Basin.
• Customer efforts to improve their returns on capital could continue to provide a buffer against headwinds and result in further market share gains in 2024. 

Key points (machine generated)

• Gogo boasts a unique and extensive infrastructure, including over 250 ground-based towers, providing strong coverage and high-quality connectivity to private jet passengers.
• The company’s stock price has been undervalued due to concerns about competition from Starlink, execution issues with its 5G service, and investor perceptions associated with its divested commercial aviation business.
• However, Gogo is actively addressing these concerns and has a clear growth trajectory. As cash flows increase after completing investments in 5G and low-Earth orbit services, the stock could potentially triple in value by 2026. The company’s dominant market position and durable competitive advantages contribute to low downside risks.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Continued strong asset performance across VAALCO’s portfolio in Gabon, Egypt, and Canada contributed to 4Q23 production and sales at, or above, the high end of management’s November 7, 2023, updated outlook.
• 4Q23 working interest (WI) production and sales fell to 23.1-23.5 MBOE/d and 27.4-27.6 MBOE/d, compared with guidance of 22.9- 24.6 MBOE/d and 25.3-27.6 MBOE/d, respectively.
• 4Q23 net revenue interest (NRI) production and sales volumes averaged 17.9-18.2 MBOE/d and 21.725-22.125 MBOE/d, compared with guidance of 17.6-19.4 MBOE/d and 19.8-22.0 MBOE/d, respectively.

Key points (machine generated)

• Vestis is in a favorable position to capitalize on the growth opportunities in the uniform rental and workplace supplies industry.
• The company has implemented operational improvements and expanded its salesforce, which will likely lead to improved margins.
• With a new Board of Directors and a refreshed management team, Vestis is expected to catch up with its competitors in terms of growth and profitability. The analysts project a 30% internal rate of return and a target price of $39/share by the end of 2025.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.