FINSUM + Magnifi: Goldman Says these S&P Losers Could become Outperformers

April 20, 2021

Q1 Earnings are starting to roll in for many companies and this presents an opportunity. Regression to the mean is almost an inevitability in the stock market, but timing it is difficult. But Goldman is advising its clients that 13 companies lagging the S&P 500 by 6% over the past month are going to post better earnings reports than Wall Street projects. These companies are Activision Blizzard, Air Products and Chemicals, CF Industries, Charter Communications, Edison International, Enphase Energy, Everest Re Group, Fiserv, Global Payments, Intercontinental Exchange, Leggett & Platt, McKesson, TE Connectivity, and T-Mobile. As many stocks are trading at record highs these underperformers could turn to outperformers at the turn of the next earnings report.

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FINSUM + Magnifi: Why Treasuries Could Not Look Worse

April 6, 2021

Q1 ended about as poorly as possible for the treasury market as losses according to ICE indices hit 4.6%, the worst quarter in over 40 years. The losses were highly concentrated on the longer end of the term structure. Inflation-adjusted (real) yields are negative on 10+ year government bonds. And market-implied 5-year inflation expectations are around 2.6% above the Fed’s target. Many would think that corporate bonds would be a reprieve from the losses but they too posted their worst quarter since the financial crisis. However 30-year yields are on an upswing and it may be the time to buy the dip on long-term treasuries.

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FINSUM + Magnifi: This Fintech Just Saw its Shares Surge Like GameStop

March 2021

Fintech company Upstart experienced a rally reminiscent of the Reddit-fueled GameStop frenzy weeks back as its stock jumped 171% over the last three trading days. However, fundamentals and not internet boards were the catalyst here. Upstart uses AI and machine learning techniques to underwrite consumer loans and passes this information off to banks that can better place borrowers. The company saw revenue growth due to a spiking 124,000 loan originations last quarter prompting the surge in stock price.
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