Hunting Tomorrow’s Leaders: A New Angle on Relative Strength and Deep Value Investing

This report challenges the traditional divide between momentum and value investing by demonstrating how SIA’s relative strength framework can help uncover deep-value stocks as they begin to recover. By integrating the CANSLIM model with tools like the SIA Relative Strength Advancers and Point & Figure charting, advisors may be able to shorten the typical wait time associated with traditional value strategies. Sector rotation signals, including the recent rise in the Drugs sector and Merck’s early-stage Point & Figure catapult breakout, provide timely, real-world examples of hunting tomorrow’s leaders before they become broadly recognized. Most importantly, this approach reframes opportunity cost not as an unavoidable trade-off, but as a risk that can be actively managed through disciplined, data-driven positioning.

ARM HOLDINGS PLC ADS (ARM)

The semiconductor space has exhibited continued outperformance of late. As such, lets review the shares of a lesser known name, ARM Holdings PLC ADS (ARM) which is a constituent of the Nasdaq 100 Index. ARM currently occupies the 26th spot out of 103 positions in the SIA Nasdaq 100 Index report and is showing consistent strength to date up 33 spots in the last week, 42 spots on the last month, and 18 spots in the last quarter. It recently just entered the favored zone of the report a few days ago.

THE HERSHEY COMPANY (HSY)

Cocoa prices saw an unprecedented surge, rising more than fourfold to over $12,000 per ton before sharply correcting to around $6,000 by mid 2025. This volatility has triggered recalibration across the supply chain, particularly for major buyers like The Hershey Company (HSY). As input costs ease, HSY appears to be completing a multi-year price discovery point and figure triangle, a bullish signal and one of the first signs in years of improving technical attributes. The stock may be one to watch, especially for advisors seeking stability amid ongoing market uncertainty.

SUN LIFE FINANCIAL INC. (SLF.TO)

Markets do not move on one headline or tweet but on the collective weight of all available information being processed in real time. The recent surge in the VIX and breakout from a bullish triangle pattern suggests a shift in sentiment that could mark an inflection point. As the British Army famously teaches, ‘proper prior planning prevents piss poor performance’ and having a tactical plan now is what separates professionals from passengers.

ESTEE LAUDER CO INC. (EL)

In today’s edition of the Daily Stock Report, lets analyze Estee Lauder Companies Inc. (EL) as the name recently entered the Favored Zone on the SIA S&P 500 Index Report back on July 1, 2025 at a price of $85.11 and although it has not moved up the rankings significantly it is showing resilience as the shares still maintains a favored ranking in the #114 position out of 505 spots in the report.

ARCELORMITTAL SA ADR (MT)

ArcelorMittal (MT) shares have surged nearly 70% year to date, climbing the SIA relative strength rankings and breaking out of a decade-long technical base. Momentum indicators like ADX show increasing trend strength as shares push through key resistance levels. As seed capital for Form Energy since mid-2021, MT is committed to ESG goals by investing in iron-air battery technology still in the conceptual phase that could power its steel mills in the future, similar to Xcel Energy’s partnership with Form Energy highlighted last week as a leading “gro-tility” in long-duration energy storage. This commitment is reflected in the hands-on leadership of Lakshmi Mittal, who regularly visits the mills on Sundays, engaging with workers and experiencing the sights and sounds of the plants firsthand, demonstrating a level of involvement uncommon among billionaires.

CANAAN INC. ADR (CAN)

In today’s digital age, we have seen the emergence and adoption of Crypto mining and blockchain technology. Today we are going to highlight Canaan Inc. ADR (CAN). Cannan Inc. (CAN) recently re-entered the Favored Zone of the SIA International ADR Index report on September 24th at a price of $0.89. The shares are showing strong relative strength moves up the SIA International Index report as they currently reside in the top spot out of 249 positions in the report, up 221 spots in the last quarter.

While this report on Canaan Inc. (CAN) showcases the strength of the SIACharts system, please be aware that this stock falls outside the typical risk parameters due to its speculative, low price, and volatile nature. Please see the full disclaimer within today’s report.

ASML HOLDING N.V. (ASML)

Today, we are going to highlight an Electronics and Semi-Conductor Name, ASML Holding N.V.(ASML). The Electronics and Semi-Conductor Space has shown resilience of late as it still holds the Favored Zone in the SIA Market Sector Report in the 4th spot, up 5 spots in the last quarter. ASML Holding has also shown outperformance of late as it has moved up 54 spots in the last month and 39 spots in the last quarter in the SIA Nasdaq 100 Index Report residing in the 15th spot.

UBS GROUP AG ADR (UBS)

UBS Group AG ADR (UBS) has emerged as a top performer in the Swiss market, recently breaking through a 2-year resistance range to reach approximately $37. Momentum indicators and point and figure analysis confirm strong buyer control, with key resistance targets now set at $43.93 and $48.50. UBS also ranks highly on both the SIA International ADR Report and SMAX scale, highlighting its strong relative strength across global equities and asset classes.

ABB LTD. ADR (ABBNY)

Analyzing international markets can be simplified by breaking down country-specific ETFs to identify the strongest underlying stocks. Using SIA’s relative strength and technical tools, such as point and figure comparison charting algorithms, helps highlight top performers within broader indices. In the case of Switzerland, this approach reveals high-conviction names like ABB Ltd., which combine index leadership with strong price momentum.

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