Tue, August 20, 2024 | 11:18PM ET

August Market Update & Top Stock Ideas + Super SMID Granny

Name: FS Insight
Price range: $$$

Tom Lee, CFA ^AC

Head of Research

August Market Update & Top Stock Ideas + Super SMID Granny

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Introducing new list of 5 Top Stock Ideas
Updating 5 Super and 5 Sleeper SMID Grannies
Chartbook linked below

To download the slide deck for our Market Update Webinar, please click HERE.

Investment Ideas: Top 5 Stock Picks

As we are rebranding our monthly webinar, we are introducing a new section of 5 top stock ideas:

The new top stock ideas follow the similar methodologies we use to identify super SMID granny ideas
Essentially, we aim to identify the most timely stock ideas by cross referencing the trend analyses, quantamental works and technical studies.
In more detail, the framework is composed of a criteria of 4 factors to narrow down to tactical buys:
– fundamentals using DQM model managed by “tireless Ken”
– momentum rating based weighted average performances of recent period
– technical strength measured by Price >20 DMA, 20 DMA vs 200 DMA and combos
– Mark Newton’s judgement on technical outlook
Our 5 Stock Ideas for August 2024:
– NVIDIA Corp (NVDA)
– Axon Enterprise Inc (AXON)
– TransDigm Group Inc (TDG)
– Intuitive Surgical Inc (ISRG)
– Kimco Realty Corp (KIM)

SUPER SMID GRANNIES: 5 Super and 5 Sleeper

Last December, we upgraded Small-caps to be the #1 recommendation in our 2024 year-ahead outlook. We also created the SMID granny shot portfolio strategy as many of our clients asked us for our Top SMID stock picks.

We believe the SMID Grannies could benefit from the multiple themes and secular tailwinds
The SMID Grannies shots were selected from a universe consisting of 2,492 small and mid-cap stocks.
From the SMID granny shots portfolio, we employed the same framework mentioned above to identify the 5 most timely ideas and 5 least timely ideas within the SMID granny shots portfolio.

We have 5 tactical buys aka “Super SMID Grannies”
– Applovin Corp (APP) <– carry over
– The Bancorp Inc (TBBK) <– carry over
– ePlus Inc (PLUS)
– Palantir Technologies Inc (PLTR)
– Mueller Industries Inc (MLI)
The bottom 5 “Sleeper SMID Grannies” are:
– Blueprint Medicines Corp (BPMC) <– carry over
– Ultra Clean Holdings Inc (UCTT)
– Amkor Technology Inc (AMKR)
– Blue Bird Corp (BLBD)
– Veeco Instruments Inc (VECO)

Please see Mark’s technical note tonight for commentary on the Top 5 Stock Ideas and 5 Super SMID Grannies.

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42 SMID Granny Shot Ideas: We performed our quarterly rebalance on 7/16. Full stock list here -> Click here

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PS: if you are enjoying our service and its evidence-based approach, please leave us a positive 5-star review on Google reviews —> Click here.

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Key incoming data August 2024:

~~8/1 8:30 AM ET: 2Q P Nonfarm Productivity~~ Tame
~~8/1 8:30 AM ET: 2Q P Unit Labor Costs~~ Tame
~~8/1 9:45 AM ET: Jul F S&P Global Manufacturing PMI~~ Tame
~~8/1 10:00 AM ET: Jul ISM Manufacturing PMI~~ Tame
~~8/2 8:30 AM ET: Jul Jobs Report~~ Tame
~~8/2 10:00 AM ET: Jun F Durable Goods Orders~~ Tame
~~8/5 9:45 AM ET: Jul F S&P Global Services PMI~~ Tame
~~8/5 10:00 AM ET: Jul ISM Services PMI~~ Tame
~~8/6 8:30 AM ET: Jun Trade Balance~~ Tame
~~8/7 9:00 AM ET: Jul F Manheim Used vehicle Index~~ Mixed
~~8/12 11:00 AM ET: Jul NY Fed 1yr Inf Exp~~ Tame
~~8/13 6:00 AM ET: Jul Small Business Optimism Survey~~ Tame
~~8/13 8:30 AM ET: Jul PPI~~ Tame
~~8/14 8:30 AM ET: Jul CPI~~ Tame
~~8/15 8:30 AM ET: Jul Retail Sales Data~~ Tame
~~8/15 8:30 AM ET: Aug Empire Manufacturing Survey~~ Tame
~~8/15 8:30 AM ET: Aug Philly Fed Business Outlook~~ Tame
~~8/15 10:00 AM ET: Aug NAHB Housing Market Index~~ Tame
~~8/15 4:00 PM ET: Jun Net TIC Flows~~ Tame
~~8/16 10:00 AM ET: Aug P U. Mich. Sentiment and Inflation Expectation~~ Tame
~~8/19 9:00 AM ET: Aug M Manheim Used vehicle index~~ Tame
8/21 2:00 PM ET: Jul FOMC Meeting Minutes
8/22 8:30 AM ET: Jul Chicago Fed Nat Activity Index
8/22 9:45 AM ET: Aug P S&P Global Manufacturing PMI
8/22 9:45 AM ET: Aug P S&P Global Services PMI
8/22 10:00 AM ET: Jul Existing Home Sales
8/23 10:00 AM ET: Jul New Home Sales
8/26 10:00 AM ET: Jul P Durable Goods Orders
8/26 10:30 AM ET: Aug Dallas Fed Manuf. Activity Survey
8/27 9:00 AM ET: Jun S&P CoreLogic CS home price
8/27 10:00 AM ET: Aug Conference Board Consumer Confidence
8/29 8:30 AM ET: 2Q S 2024 GDP
8/30 8:30 AM ET: Jul PCE Deflator
8/30 10:00 AM ET: Aug F U. Mich. Sentiment and Inflation Expectation

Economic Data Performance Tracker 2024:

Economic Data Performance Tracker 2023:

Disclosures (show)

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Analyst Certification (Reg AC)

Tom Lee, CFA, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships. Neither I, nor a member of my household is an officer, director, or advisory board member of the issuer(s) or has another significant affiliation with the issuer(s) that is/are the subject of this research report. There is a possibility that we will from time to time have long or short positions in, and buy or sell, the securities or derivatives, if any, referred to in this research.

Conflicts of Interest

This research contains the views, opinions and recommendations of FS Insight. At the time of publication of this report, FS Insight does not know of, or have reason to know of any material conflicts of interest.

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