Today, we highlight an exciting new entry into the Green Favored Zone of the S&P 100 Index Report: Morgan Stanley (MS). After a remarkable four-year base, Morgan Stanley has transitioned from the Red Zone through the Neutral Yellow Zone and now emerges in the Green Favored Zone of the SIA S&P 500 Index report, offering compelling risk-reward parameters for investors. As of yesterday, Morgan Stanley has climbed to 25th place, advancing 12 spots in the last month.
In this edition of Equity Leaders Weekly, we observe a busy summer market with opportunities in mid and small-cap stocks and significant earnings reports. A mid-week rally, driven by NASDAQ gains and a surge in Nvidia, showed signs of fading as global markets became choppy. We will use this moment to review the SIA Sector Scopes to identify shifts in sector sentiment, focusing on the US Real Estate sector and its benefits from these changes.
Recent developments concerning Eli Lilly & Company (LLY) have caught our attention. Our last reviews of LLY were conducted on April 9, 2024, and August 16, 2023, when the stock prices were $777.29 and $546.62, respectively. At those times, LLY was highly ranked in the Favored Green Zone of the SIA S&P 100 Index Report, reflecting its strong performance and leadership position. The stock had surged from just over $150 in 2021 to as high as $950. However, recent data suggest a shift. LLY is now showing signs of weakness, with our primary indicator—relative strength—issuing its first sell signal for the stock in years.
Shares of 3M have made a dramatic return to the Favored Green Zone of the SIA S&P 100 Index Report after being entrenched in the Unfavored Red Zone for over 6 years, dating back to 2018. During this period, 3M shares yielded minimal returns, with a 5-year rate of return of +0.85% and a dividend yield of 2.24%, while the S&P 100 Index delivered a return of +13.04%.
Shares of Rogers Communications (RCI.B.TO) have been quiet on the SIA S&P TSX 60 Index Report as they languish low in the rankings (currently #59th spot). Rogers is not alone at the bottom of the matrix; it shares this weakness with the other two major wireless companies, Bell and Telus. From a performance standpoint, RCI.B.TO has returned shareholders -2.34% over the past 5 years and -14.09% YTD VS. S&P/TSX60 Index returns of +13.46% (5-yr) and +7.77% (YTD).
Ford Motor’s shares fell over 13% to a near six-month low on Thursday after the automaker missed second-quarter profit estimates, struggling with quality-related costs and intense competition in its EV business. This drop is disappointing for investors, who had seen Ford’s shares rise from $11.50 and approach resistance at $14.75 during a summer rally. The pullback confines the shares to a trading range that has persisted for nearly two years ($10.11-$14.74).
Goldman Sachs Group Inc. (GS), along with the broader banking and brokerage sector, has been experiencing a significant rally this year. GS shares proudly hold the #10 position in the SIA S&P 100 Index Report. Also situated in the Favored Green Zone are shares of JP Morgan, American Express, Bank of New York Mellon, Capital One, Wells Fargo, and CitiGroup, with many others positioned in the Neutral Yellow Zone of the report.
In this edition of Equity Leaders Weekly, we look at Russell 2000 Index (RLS.I) to see if the current small cap rally has legs as well as provide an update on the Natural Gas Continuous Contract (NG.F) chart.
In this edition of Equity Leaders Weekly, we look at Russell 2000 Index (RLS.I) to see if the current small cap rally has legs as well as provide an update on the Natural Gas Continuous Contract (NG.F) chart.
UPS starkly contrasts with its cousin FedEx, even within their sector on the SIA S&P 100 Index Report, showing significant underperformance. Analyzing the UPS relative strength chart reveals a downward trend from 2021 to 2023, moving from the Favored Green Zone to the bottom of the list. Following several warnings, earnings reports finally confirmed EPS at $1.79 versus the previous $2.54 and a consensus estimate of $1.99, leading to a sharp 12.1% drop—the largest single-day decline since its IPO in 1999. Our methodology avoids stocks in the Unfavored Red Zone, enforcing robust risk management to protect capital.
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