Research Roundup: April 10, 2025
Quantitative | PRV Factor Report: U.S. - free
PRV generated a large spread in both the Large Cap and Small Cap universes in March, driven by Quality and Value. Quality’s performance was mostly driven by our Risk factors. Cheap Value also worked in both universes, three out of the last four months for both universes.
Industry Snapshot: Global Professional Services - free
Large cap firms look somewhat weak in the PRV framework, despite strong Quality, given their very high Valuations. Historically high embedded expectations for growth going forward at a time when PRV Fundamentals look to remain pressured, leaves a negative view.
Industry Snapshot: Global Oil, Gas & Consumable Fuels - free
Low Valuation makes the industry look relatively attractive in the PRV framework. There has been a slowdown in incremental value destruction over the last six months. Investors have recognised the recovery as embedded growth expectations at the aggregate level have turned positive since the end of 2024.
U.S. Equities: Attractive Sold off Stocks - membership
As markets react to the impact of tariffs, we take the opportunity to screen U.S. firms with a market cap over $2bn that have solid PRV Profitability, look attractive in the PRV framework, yet have been sold off YTD.
Names in the News: AMZN & CHG LN - membership
We first look at Amazon.com, Inc. (AMZN, rated ‘Underweight’). The company reportedly submitted a last-minute bid to buy TikTok in the U.S. last week. The stock looks to be selling off along with big Tech on the back of the Trump tariff announcements. We also assess Chemring Group PLC (CHG LN, rated ‘Buy’). The firm’s engineering unit, Roke, secured a £251mn ($324mn) multi-year defense contract with the U.K. Ministry of Defence. We keep a positive stance on the firm, given PRV Margin has remained positive, PRV Momentum has already weakened significantly, and expectations are low, leading to cheap Valuations.
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