Finding Leadership | Stocks Showing RS | March 23, 2020

Relative Strength (RS) separates leading stocks from laggards. Stocks showing RS during a correction will often be the strongest movers once the general market is ready to cooperate. Below we have compiled a list where we have identified pockets of strength in overall market weakness. Among these names some will eventually cave if the market continues to correct however some will emerge as new leadership.

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Information Technology

RNG

Sector: Information Technology
Industry: Software
Sub-Industry: Application Software
Summary: RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The company’s products include RingCentral Office, provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax through smartphones, tablets, PCs, and desk phones; RingCentral Professional, a cloud based virtual telephone service for professionals, as well as provides inbound call answering and management services, and includes inbound local, long-distance, and toll-free minutes; and RingCentral Fax that provides online fax capabilities that allow businesses to send and receive fax documents without a fax machine.
EPS Q/Q: -4%
Sales Q/Q: +34%
RNG Relative Strength March 2020

FIVN

Sector: Information Technology
Industry: Software
Sub-Industry: Application Software
Summary: Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions; and acts as a hub for omnichannel engagement between the clients and their customers, which enables them to manage the end-to-end customer experience in a single unified architecture. Its solution enables its clients to manage these customer interactions across various channels, including voice, chat, email, Web, social media, and mobile, as well as connects them to an appropriate agent. The company also provides a set of management applications, such as workforce management, reporting, quality management, and supervisor tools. The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, and technology. Five9, Inc. was founded in 2001 and is headquartered in San Ramon, California.
EPS Q/Q: +17%
Sales Q/Q: +28%
FIVN Relative Strength March 2020

DOCU

Sector: Information Technology
Industry: Software
Sub-Industry: Application Software
Summary: DocuSign, Inc. provides cloud based software in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise businesses, commercial businesses, and small businesses, such as professionals, sole proprietorships and individuals.
EPS Q/Q: +100%
Sales Q/Q: +38%
DOCU Relative Strength March 2020

TEAM

Sector: Information Technology
Industry: Software – Enterprise
Sub-Industry: Application Software

Summary:
Atlassian Corporation Plc, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. It provides project tracking, content creation and sharing, and service management products. The company’s products include JIRA, a workflow management system that enables teams to plan, organize, track, and manage their work and projects; Confluence, a content collaboration platform that is used to create, share, organize, and discuss projects; and Trello, a collaboration and organization product, which captures and adds structure to fluid fast-forming work for teams.
EPS Q/Q: +48%
Sales Q/Q: +37%
TEAM Relative Strength March 2020

CRWD

Sector: Information Technology
Industry: Software
Summary: CrowdStrike Holdings, Inc. develops security solutions in the United States. It offers Falcon platform, a cloud based security solution that protects workloads across on-premise, virtualized, and cloud-based environments running on various endpoints, such as laptops, desktops, servers, virtual machines, and IoT devices. The company also provides Threat Graph, a cloud-based graph database.
EPS Q/Q:
Sales Q/Q: + 88%
CRWD Relative Strength March 2020

NET

Sector: Information Technology
Industry: Software
Summary: CloudFlare, Inc. operates a cloud platform that delivers a range of network services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and Internet of Things (IoT) devices.
EPS Q/Q:
Sales Q/Q: +51%
NET Relative Strength March 2020

NFLX

Sector: Communication Services
Industry: Entertainment
Sub-Industry: Movies & Entertainment
Summary: Netflix, Inc. provides Internet entertainment services. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices.
EPS Q/Q: +333%
Sales Q/Q: +31%

HMI

Sector: Information Technology
Industry: Electronic Equipment
Summary:Huami Corporation, a biometric and activity data-driven company, develops, manufactures, and sells smart wearable technological devices in the People’s Republic of China. It operates through two segments, Xiaomi Wearable Products, and Self-Branded Products and Others. The company offers smart bands, watches, and scales; and a range of accessories, including bands, watch straps, necklaces, sportswear, etc. under the Xiaomi and Amazfit brands.
EPS Q/Q: +48%
Sales Q/Q: +67%

AMD

Sector: Information Technology
Industry: Semiconductors
Sub-Industry:Semiconductors
Summary: Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles. The company provides x86 microprocessors for desktop PCs under the AMD Ryzen, AMD Ryzen PRO, Threadripper, AMD A-Series, AMD FX, AMD Athlon, AMD Athlon PRO, and AMD Pro A-Series processors brands; microprocessors for notebook and 2-in-1s under the AMD Ryzen processors with Radeon Vega GPUs, AMD A-Series, AMD Athlon, AMD Ryzen PRO, and AMD Pro A-Series processors brands; microprocessors for servers under the AMD EPYC and AMD Opteron brands; and chipsets under the AMD trademark.
EPS Q/Q: +300%
Sales Q/Q: +50%
AMD RS New High March 2020

Honorable Mentions: OKTA, EVBG, ZM, COUP, SMAR, NVDA, AMZN

Health Care

SGEN

Sector: Health Care
Industry: Biotechnology
Sub-Industry: Biotechnology
Summary: Seattle Genetics, Inc., a biotechnology company, develops and commercializes therapies for the treatment of cancer in the United States and internationally. The company markets ADCETRIS, an antibody-drug conjugate (ADC) for the treatment of patients with Hodgkin lymphoma or CD30-positive T-cell lymphomas; and PADCEV, an ADC composed of an anti-Nectin-4 monoclonal antibody for the treatment of metastatic urothelial cancers.
EPS Q/Q: +116%
Sales Q/Q: +66%

CCXI

Sector: Health Care
Industry: Biotechnology
Sub-Industry: Biotechnology
Summary: ChemoCentryx, Inc., a clinical-stage biopharmaceutical company, develops new medications for inflammatory and autoimmune diseases, and cancer in the United States. The company targets the chemokine and chemoattractant systems to discover, develop, and commercialize orally-administered therapies. Its lead drug candidate is Avacopan, an orally-administered complement inhibitor of the complement C5a receptor (C5aR), is in Phase III development for the treatment of anti-neutrophil cytoplasmic auto-antibody-associated vasculitis. The company is also developing Avacopan for the treatment of patients with complement 3 glomerulopathy and hidradenitis suppurativa.
CCXI RS Line New Highs March 2020

ZLAB

Sector: Health Care
Industry: Biotechnology
Sub-Industry: Biotechnology
Summary: Zai Lab Limited, a biopharmaceutical company, engages in discovering or licensing, developing, and commercializing proprietary therapeutics that address medical needs in the fields of oncology, infectious, and autoimmune diseases in China and internationally. The company’s lead drug candidate is ZL-2306, an oral small molecule PARP 1/2 inhibitor for treatment of multiple solid tumor, including ovarian and other types of cancer. Its products in Phase III clinical trial comprise Niraparib, a small molecule PARP 1/2 inhibitor for the treatment of multiple solid tumor types; Optune, a cancer therapy; Margetuximab, an immune-optimized anti-HER2 monoclonal antibody for the treatment of breast and gastric cancers;
ZLAB RS Line New Highs March 2020

TDOC

Sector: Health Care
Industry: Health Care Technology
Sub-Industry: Health Care Technology
Summary: Teladoc Health, Inc. provides virtual healthcare services on a business-to-business in the United States and internationally. It covers various clinical conditions, including non-critical, episodic care, chronic, and complicated cases, as well as offers telehealth solutions, expert medical services, behavioral health solutions, guidance and support, and platform and program services. The company’s platform enables patients and providers to have an integrated smart user experience through mobile, Web, and phone based accessed points.
EPS Q/Q:
Sales Q/Q: +27%

DXCM

Sector: Health Care
Industry: Health Care Equipment & Supplies
Sub-Industry: Health Care Equipment
Summary: DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company offers its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include DexCom G6, a CGM system for diabetes management; DexCom G5 mobile CGM system to communicate directly to patient’s mobile device; DexCom G4 PLATINUM system for continuous use by adults with diabetes; and DexCom Share, a remote monitoring system.
EPS Q/Q: +105%
Sales Q/Q: +37%

ONEM

Sector: Health Care
Industry: Health Care Providers & Services
Sub-Industry: Health Care Services
Summary: 1Life Healthcare, Inc. operates a membership-based primary care platform. The company develops a healthcare membership model based on direct consumer enrollment, as well as employer sponsorship. It also provides medical services in-office and virtually. As of September 30, 2019, the company had approximately 397,000 members in 9 markets in the United States; 6,000 enterprise clients; and health network partnerships. It serves consumers, employers, providers, and health networks under the One Medical brand name. The company was incorporated in 2002 and is headquartered in San Francisco, California.
EPS Q/Q:
Sales Q/Q: +33%
ONEM RS Line New Highs March 2020

Honorable Mentions: ZYXI, LVGO, ALNY

Pockets of Strength

VIPS

Sector: Consumer Discretionary
Industry: Internet & Direct Marketing Retail
Sub-Industry: Internet & Direct Marketing Retail
Summary: Vipshop Holdings Limited operates as an online discount retailer for various brands in the People’s Republic of China. It operates in two segments, Vip.com and Internet Finance Business. The company offers women’s apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men’s apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men casual and formal shoes; and accessories that include belts, jewelry, watches, and glasses for women and men. It also provides handbags, which comprise purses, satchels, duffel bags, and wallets; apparel, gears and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers; sports apparel, sports gear, and footwear for tennis, badminton, soccer, and swimming; and consumer electronic products, including computers, mobile handsets, digital cameras, and home appliances.
EPS Q/Q: 116%
Sales Q/Q: +11%
VIPS RS Line New Highs March 2020

GSX

Sector: Consumer Discretionary
Industry: Diversified Consumer Services
Sub-Industry: Education Services
Summary: GSX Techedu Inc., a technology-driven education company, provides online K-12 large-class after-school tutoring services in the People’s Republic of China. It offers K-12 large-class after-school tutoring courses that cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides English courses for children in kindergarten; and courses that help children in grade one through grade seven. In addition, it offers foreign language courses comprising English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher’s qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams.
EPS Q/Q: +450%
Sales Q/Q: +406%
GSX RS Line New Highs March 2020

NTES

Sector: Communication Services
Industry: Entertainment
Sub-Industry: Interactive Home Entertainment
Summary: NetEase, Inc. operates an interactive online community in the People’s Republic of China. The company operates in four segments: Online Games Services, E-Commerce, Advertising Services, and Innovative Businesses and Other Services. It offers various games in a range of genres through mobile devices and PCs, including role-playing games, MMORPGs, battle arena games, simulation games, collectible card games, first-person shooter games, sandbox games, and other types of games to the Chinese market. The company also operates Kaola that sells imported maternity and baby products, skincare and cosmetics, and other general merchandise; and Yanxuan, which sells its private label products, including apparel, homeware, kitchenware, and other general merchandise. In addition, it operates NetEase News App and NetEase Websites, which provide Internet users with Chinese language-based online services that are centered around content and interactive community.
EPS Q/Q: +12%
Sales Q/Q: +8%
NTES RS Line New Highs March 2020

SDGR

Sector: Health Care
Industry: Health Care Technology
Sub-Industry: Health Care Technology
Summary: Schrödinger, Inc. provides computational platform to accelerate drug discovery and materials design for biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. The company operates through two segments, Software and Drug Discovery. It segment is focused on selling its software for drug discovery in the life sciences industry, as well as to customers in materials science industries. The Drug Discovery segment develops a pipeline of preclinical and clinical drug discovery programs through its computational platform in collaboration with pharmaceutical companies. Schrödinger, Inc. has a strategic collaboration with Twist Bioscience Corporation. The company was founded in 1990 and is based in New York.
EPS Q/Q:
Sales Q/Q: +48%
SDGR RS Line New Highs March 2020

Honorable Mentions: PDD, EVER,  ATVI, JD

March 23, 2020