Big Moves Off 52-Week Lows
Within the US equity market, we’ve seen some major moves in individual stocks off their 52-week lows over the last few months. Look at the table below. Within the Russell 1000, which tracks the performance of the largest companies in the US, stocks in the index are up an average of 87.6% from their respective 52-week lows. Looking at performance by individual sectors, stocks in the Energy sector are up an average of 136.8%, while the average Consumer Discretionary stock has rallied 131.4%. The Technology sector wasn’t hit nearly as hard by the Covid-crash as other sectors, but stocks in the sector have doubled on an average basis relative to their 52-week lows. The only sector where stocks are up less than 50% on an average basis from their 52-week lows is Utilities at 46.33%.
For many investors, the holy grail of stock picking is the proverbial ten-bagger. A ten-bagger is a stock that multiplies by ten times its original price. Usually, this happens over the span of years, but in the Covid-economy, we’ve actually seen a number of these ten-baggers play out in the span of months. While most of these examples are in the small-cap space, shares of Wayfair (W), which has a current market cap of $27.5 billion, have rallied from $21.70 on March 19th to its current price of $290.85 now. That’s a gain of more than 1,200% in less than five months!
Within the entire Russell 1,000, 257 stocks have at least doubled off their 52-week lows, and in the table below we highlight the 34 stocks that are at least a quarter of the way to the ten-bagger club and have rallied more than 250%. As mentioned above, W tops the list, but Fastly (FSLY), which has barely been public for a year, is just shy of the club with a gain of 992%. Behind FSLY, Livongo Health (LVGO) is up 855%. Given that LVGO just got a takeover offer from Teladoc (TDOC), the 11th best-performing stock on the list, it may only make the ten-bagger club under the banner of the TDOC ticker.
In looking through the list of stocks shown, many of these names come from the Health Care, Technology, and Consumer Discretionary sectors and have been direct beneficiaries of the new Covid-economy. At the same time, six stocks from the Energy sector made the list as well as they recovered from their bombed-out levels after oil prices briefly traded in negative territory earlier this year. Like what you see? Click here to view Bespoke’s premium membership options for our best research available.
Bespoke’s Morning Lineup – 8/5/20 – Lucky 13 For Gold
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Quote of the Day: “There is a time to go long, a time to go short, and a time to go fishing.” – Jesse Livermore
Markets are set up for another positive day as US equity futures are firmly in positive territory following some strong economic data out of Europe that followed a weak Services PMI reading out of China. The ADP Private Payrolls report for July was just released and came in well short of expectations, rising 167K compared to forecasts for a gain of 1.2 million. That’s a pretty big miss, but this employment data has been pretty difficult to forecast lately.
Be sure to check out today’s Morning Lineup for a rundown of the latest stock-specific news of note, key earnings and economic news in Europe and the US, trends related to the COVID-19 outbreak, and much more.
Gold is trading up over 1% this morning and putting the $2,000 level further in the rearview mirror. Today’s gain represents the 13th positive day for gold in the last 14 trading days as investors rotate into the asset class as a store of value.
In a world that has gone increasingly digital in the last several years, bitcoin has served as a form of digital gold. In the last year, though, bitcoin hasn’t done nearly as well as physical gold. As shown in the chart below, the front-month gold contract is up nearly 40% over the last year while bitcoin is barely unchanged.
Chart of the Day: Aerovironment Flying High
Bespoke Stock Scores — 8/4/20
Bespoke’s Morning Lineup – 8/4/20 – Stale Breadth
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 free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
Quote of the Day: “Wall Street sells stocks and bonds but what it really peddles is hope.” – Jason Zweig
We have a quiet day of economic data to contend with, but there should be plenty of drama concerning the ongoing discussions in DC over additional stimulus. Futures have been drifting lower all morning after peaking right before the European open. Earnings news continues to impact individual stocks as the overall market reaction to these reports has been positive.
Be sure to check out today’s Morning Lineup for a rundown of the latest stock-specific news of note, key earnings and economic news in Europe and the US, trends related to the COVID-19 outbreak, and much more.
The S&P 500 traded to its highest levels since February yesterday, but one breadth measure uncharacteristically lagged. As shown in the chart below, the S&P 500’s cumulative A/D line hasn’t made a new high since 7/22. While it’s nowhere near breaking down at his point, it is a trend worth highlighting as this measure has consistently led price over the last few years.
Daily Sector Snapshot — 8/3/20
Bespoke Market Calendar — August 2020
Please click the image below to view our August 2020 market calendar. This calendar includes the S&P 500’s average percentage change and average intraday chart pattern for each trading day during the upcoming month. It also includes market holidays and options expiration dates plus the dates of key economic indicator releases. Start a two-week free trial to one of Bespoke’s three research levels.
Chart of the Day: Analysts Playing Catch-Up
Bespoke Matrix of Economic Indicators – 8/3/20
Our Matrix of Economic Indicators is the perfect summary analysis of the US economy’s momentum. We combine trends across the dozens and dozens of economic indicators in various categories like manufacturing, employment, housing, the consumer, and inflation to provide a directional overview of the economy.
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