The Bespoke 50 Growth Stocks — 8/29/24
The “Bespoke 50” is a basket of noteworthy growth stocks in the Russell 3,000. To make the list, a stock must have strong earnings growth prospects along with an attractive price chart based on Bespoke’s analysis. There were 9 changes to the list this week.
The Bespoke 50 is available with a Bespoke Premium subscription or a Bespoke Institutional subscription. With Bespoke Premium, you’ll receive a number of daily market updates from us along with our weekly newsletter and a portion of our investor tools. With Bespoke Institutional, you’ll receive everything that’s included with Premium plus additional daily macro analysis and more stock-specific research.
To see all 50 stocks that currently make up the Bespoke 50, simply start a two-week trial to Bespoke Premium or Bespoke Institutional.
The Bespoke 50 performance chart shown does not represent actual investment results. The Bespoke 50 is updated monthly on Thursdays unless otherwise noted. Performance is based on equally weighting each of the 50 stocks (2% each) and is calculated using each stock’s opening price as of Friday morning after publication. Entry prices and exit prices used for stocks that are added or removed from the Bespoke 50 are based on Friday’s opening price. Any potential commissions, brokerage fees, or dividends are not included in the Bespoke 50 performance calculation, but the performance shown is net of a hypothetical annual advisory fee of 0.85%. Performance tracking for the Bespoke 50 and the Russell 3,000 total return index begins on March 5th, 2012 when the Bespoke 50 was first published. Past performance is not a guarantee of future results. The Bespoke 50 is meant to be an idea generator for investors and not a recommendation to buy or sell any specific securities. It is not personalized advice because it in no way takes into account an investor’s individual needs. As always, investors should conduct their own research when buying or selling individual securities. Click here to read our full disclosure on hypothetical performance tracking. Bespoke representatives or wealth management clients may have positions in securities discussed or mentioned in its published content.
Chart of the Day – Kodiak Gas Services (KGS)
New York, New York
Updated home-price trends across the country from S&P CoreLogic’s Case Shiller indices came out earlier this week and showed home prices up 5.4% YoY and up about 0.5% MoM nationally through June 2024.
Below is a snapshot of the 20 individual cities tracked by Case Shiller. Notably, New York home prices were up the most of any city on a year-over-year basis at +8.99%. Three West Coast cities followed New York with gains of more than 8% as well: San Diego, Las Vegas, and Los Angeles.
Home prices were up the least over the last year in Portland at just 0.77%, followed by Denver (1.90%) and Minneapolis (2.01%).
Thirteen of the twenty cities tracked made new all-time highs in June. San Francisco is the farthest below all-time highs at -7.06%.
Miami and Tampa — two Florida cities — are still up the most since COVID hit in February 2020 with gains of more than 70%. San Francisco, DC, Portland, and Minneapolis have seen home prices rise the least since COVID, although they’re still all up more than 35%.
Since the brief pullback we saw in 2022 and early 2023, home prices nationally are up just over 11%, and cities like New York, San Diego, LA, Chicago, and Detroit have seen the biggest bounces off their 2023 lows with gains of roughly 15% or more.
Below is a chart showing the year-over-year percentage change in Case Shiller home price indices from June 2023 to June 2024:
Below are price charts for each city and the three composite indices since the start of Case Shiller’s data. Cities highlighted in green are currently at all-time highs. The red line in each chart marks the onset of the COVID pandemic, so you can see how much prices started to jump at that point.
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Bespoke’s Morning Lineup – 8/29/24 – Now What?
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
“I want my name back” – Richard Jewell
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
If you missed yesterday’s CNBC segments previewing and then discussing Nvidia’s (NVDA) earnings results, you can catch them by clicking on the image below.
The main event has come and gone, and there are now just two trading days to Labor Day weekend. Even though shares of NVDA are trading lower in response to its earnings report last night, futures are trading higher this morning with even the Nasdaq trading marginally in the green. Besides the weakness in NVDA, a positive report from salesforce.com (CRM) and others has helped to offset some of the weakness.
Besides the busy slate of earnings last night and this morning, the economic calendar was busy at 8:30 with revised GDP, Core PCE, Wholesales Inventories, and Jobless Claims. From an equity market perspective, the results couldn’t have been better as GDP and Personal Consumption came in better than expected, inflation data was weaker than expected, and jobless claims were slightly lower. The only other report on the calendar for the day is Pending Home Sales at 10 AM.
Throughout August, US Treasury yields have declined across the curve, but the short end has seen the steepest declines. After starting the month at 4.26%, the 2-year US Treasury yield has declined 40 basis points to 3.86%, while the 10-yield has dropped just 20 basis points, falling from 4.03% to 3.83%.
Given the steeper declines at the short end of the curve, the spread between the two yields has narrowed considerably and is close to flipping positive from inversion (negative spread). It got close earlier this month during the heightened volatility when the yen carry trade was being unwound, but this would be the closest it has gotten to a positively sloped curve in a ‘normal’ market environment since mid-2022.
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The Closer – NVDA Earnings, KISS Update – 8/28/24
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we begin with a rundown on NVIDIA (NVDA) earnings (page 1) followed by an update on our KISS basket (page 2). We then review today’s 5-year note auction (page 3) and the latest EIA data (page 4).
See today’s full post-market Closer and everything else Bespoke publishes by starting a 14-day trial to Bespoke Institutional today!
Daily Sector Snapshot — 8/28/24
B.I.G. Tips – Earnings Triple Plays Recap: Q2 2024
Today we published our newest Earnings Triple Plays report. During the just-completed Q2 2024 earnings reporting period, there were a total of 126 earnings triple plays out of just under 2,000 individual quarterly earnings reports from US-listed stocks. That’s 28 more than the 96 triple plays we saw during the prior earnings reporting period.
What is a triple play? When a stock reports quarterly earnings, it registers a “triple play” when it beats analyst EPS estimates, beats analyst revenue estimates, and raises forward guidance. We coined the term back in the mid-2000s, and you can read more about it at Investopedia.com. We consider triple plays to be the cream of the crop of earnings season, and we’re constantly finding new long-term opportunities from this basket of names each quarter. You can track the newest earnings triple plays on a daily basis at our Triple Plays page if you’re a Bespoke Premium or Bespoke Institutional member. To read our newest report and see some of the triple plays with intriguing charts at the moment, start a two-week trial to Bespoke Premium!
Fixed Income Weekly — 8/28/24
Searching for ways to better understand the fixed income space or looking for actionable ideas in this asset class? Bespoke’s Fixed Income Weekly provides an update on rates and credit each week. We start off with a fresh piece of analysis driven by what’s in the headlines or driving the market in a given week. We then provide charts of how US Treasury futures and rates are trading, before moving on to a summary of recent fixed-income ETF performance, short-term interest rates including money market funds, and a trade idea. We summarize changes and recent developments for a variety of yield curves (UST, bund, Eurodollar, US breakeven inflation, and Bespoke’s Global Yield Curve) before finishing with a review of recent UST yield curve changes, spread changes for major credit products and international bonds, and 1-year return profiles for a cross-section of the fixed income world.
Our Fixed Income Weekly helps investors stay on top of fixed-income markets and gain new perspectives on the developments in interest rates. You can sign up for a Bespoke research trial below to see this week’s report and everything else Bespoke publishes for the next two weeks!
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Chart of the Day – September Seasonality and Election Odds
The Alphabet Portfolio: Single-Letter Tickers
Most stock tickers are made up of either two or three letters. There are 676 possible two-letter tickers and 17,576 possible three-letter tickers, but there are only 26 possible one-letter tickers. Below is a look at current publicly traded single-letter tickers on US stock exchanges.
The most well-known single-letter tickers are probably Citigroup (C), Ford (F), AT&T (T), Visa (V), and US Steel (X). In all, 21 of the 26 letters in the alphabet are currently being used as stock tickers. The letters currently not in use? I, N, P, Q, and Y.
Interestingly, all eleven major sectors are represented in the “Alphabet Portfolio” shown below. Talk about diversified! Industrials and Consumer Discretionary both show up four times, while Financials shows up three times. The remaining sectors either have one or two tickers included.
In terms of the make-up of these 21 stocks, they’re more dividend-heavy. All but four of the single-letter tickers pay a dividend, and their average yield is currently 2.79%. That’s quite a bit higher than the 1.22% the S&P 500 ETF (SPY) currently yields.
In terms of recent performance, while there have been some decent gains this year (B, C, D, J, K, L, R, T), there have also been some stinkers (M, S, U, W, X). On average, this basket of stocks has posted a total return of 4.67% this year, which is well behind the 18.9% that SPY has gained. Over the last three years, the performance disparity widens even more, with single-letter tickers up just 3.1% compared to a gain of 30.4% for SPY. Unfortunately it looks like single-letter tickers = single-digit returns. At least in recent years. It would likely be a much different story if any of the mega-caps had single-letter tickers!
As always, past performance is no guarantee of future results!
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