Finding Leadership | Stocks Showing RS | 2/29/20

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.

Theme – Software

AYX

Sector: Information Technology
Industry: Software
Sub-Industry: Application Software
Summary: Alteryx, Inc. offers analytics platform for data analysts and scientists worldwide. Its software platform includes Alteryx Designer, a data profiling, preparation, blending, and analytics product used to create visual workflows or analytic processes; Alteryx Server, a server-based product for scheduling, sharing, and running analytic processes and applications in a Web-based environment; Alteryx Connect, a collaborative data exploration platform for discovering information assets and sharing recommendations across the enterprise; and Alteryx Promote, an analytics model management product for data scientists and analytics teams to build, manage, monitor, and deploy predictive models into real-time production applications.
EPS Q/Q: +100%
Sales Q/Q: +75%
AYX Relative Strength
Commentary: AYX held it’s 50-dma while the major markets corrected to respective 200-dma the past week. AYX RS-Line is also reaching new high ground (with respect to the recent highs) after it’s rally off the 50-dma on above average volume. AYX on the weekly also held it’s 10-week line which is considered a key institutional support area.

DT

Sector: Information Technology
Industry: Software
Sub-Industry: Application Software
Summary: Dynatrace, Inc. provides a software intelligence platform for the enterprise cloud applications. It offers Dynatrace, a platform for running an enterprise cloud. The company’s products include AppMon, Classic Real User Monitoring, Network Application Monitoring, and Synthetic Classic. Its platform allows its customers to modernize and automate IT operations, develop and release software, and enhance user experiences.
EPS Q/Q: +900%
Sales Q/Q: +25%
DT Relative Strength March 2020
Commentary: DT continues to trade above it’s 50-dma. Also in the Software Application space – the RS Line is reaching new high before price (what we call RSNHBP). The concern with the candle on Friday is it lacks volume.

DDOG

Sector: Information Technology
Industry: Software
Sub-Industry: Data Processing & Outsourced Services
Summary: Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management to provide real-time observability of customers technology stack.
EPS Q/Q: +150%
Sales Q/Q: +84%
DDOG Relative Strength March 2020

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

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: +1000%
Sales Q/Q: +40%
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

BILL

Sector: Information Technology
Industry: Software
Summary: Bill.com Holdings, Inc. provides cloud-based software that digitizes and automates back-office financial operations for small and midsize businesses worldwide. It offers artificial-intelligence (AI)-enabled financial software platform. The company provides software-as-a-service, cloud-based payments products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, manage cash flows, and enhance office efficiency.
EPS Q/Q:
Sales Q/Q: +50%
BILL 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

Theme – Solar Leadership

SEDG

Sector: Information Technology
Industry: Semiconductors & Semiconductor Equipment
Sub-Industry: Semiconductor Equipment

Summary:
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. Its SolarEdge system consists of power optimizers, inverters, communication and smart energy management solutions, and a cloud based monitoring platform. The company’s products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations.
EPS Q/Q: +162%
Sales Q/Q: +59%

ENPH

Sector: Information Technology
Industry: Semiconductors & Semiconductor Equipment
Sub-Industry: Electrical Components & Equipment
Summary: Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter that converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It sells its solutions primarily to distributors, as well as directly to large installers, original equipment manufacturers, strategic partners, and homeowners.
EPS Q/Q: +740%
Sales Q/Q: +128%

Theme – Health Care

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%

TNDM

Sector: Health Care
Industry: Health Care Equipment & Supplies
Sub-Industry: Health Care Equipment
Summary: Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States. The company’s flagship product is the t:slim X2 insulin delivery system that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. It also provides t:slim X2 Insulin Delivery System with Basal-IQ Technology; t:slim X2 with G5 Integration; and Tandem Device Updater that allows users to update their pump’s software.
EPS Q/Q: +100%
Sales Q/Q: +42%

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%

LVGO

Sector: Health Care
Industry: Health Care Technology
Sub-Industry: Health Care Services
Summary: Livongo Health, Inc. provides an integrated suite of solutions for the healthcare industry in North America. It solutions promote health behavior change based on real-time data capture supported by intuitive devices and insights driven by data science. The company offers a platform that provides cellular-connected devices, supplies, informed coaching, data science-enabled insights, and facilitates access to medications. Its products include Livongo for Diabetes, Livongo for Hypertension, Livongo for Prediabetes and Weight Management, and Livongo for Behavioral Health by myStrength.
EPS Q/Q:
Sales Q/Q: +148%

RVMD

Sector: Health Care
Industry: Biotech
Summary: Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit targets primarily within the RAS and mTOR signaling pathways. The company’s principal product candidate is RMC-4630, an inhibitor of SHP2, which is in Phase 1b/2 study for the treatment of RAS-dependent tumors. Its products in preclinical stage include mutant RAS proteins; SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a mTORC1 inhibitor. Revolution Medicines, Inc. has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors.
EPS Q/Q:
Sales Q/Q: +287%

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%

REGN

Sector: Health Care
Industry: Biotechnology
Sub-Industry: Biotechnology
Summary: Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for treating various medical conditions worldwide. The company’s products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema (DME); myopic choroidal neovascularization; and diabetic retinopathy in patients with DME, as well as macular edema following retinal vein occlusion, including macular edema following central retinal vein occlusion and macular edema following branch retinal vein occlusion.
EPS Q/Q: +10%
Sales Q/Q: +13%

Theme – Speculative

AVDL

Sector: Health Care
Industry: Pharmaceuticals
Sub-Industry: Pharmaceuticals
Summary: Avadel Pharmaceuticals plc operates as a specialty pharmaceutical company in the United States, France, and Ireland. The company primarily develops FT218, which is in a Phase 3 clinical trial for the treatment of narcolepsy patients suffering from excessive daytime sleepiness (EDS) and cataplexy. It also markets three sterile injectable drugs used in the hospital setting, including Akovaz that is indicated for the treatment of clinically important hypotension occurring in the setting of anesthesia; Bloxiverz, a cholinesterase inhibitor indicated for the reversal of the effects of non-depolarizing neuromuscular blocking agents after surgery; and Vazculep, a phenylephrine hydrochloride injection indicated for the treatment of clinically important hypotension.

AUPH

Sector: Health Care
Industry: Biotechnology
Sub-Industry: Biotechnology
Summary: Aurinia Pharmaceuticals Inc., a clinical stage biopharmaceutical company, engages in the research, development, and commercialization of therapeutic drugs for the treatment of various diseases in the United States and China. The company is involved in developing voclosporin, an investigational drug for the treatment of lupus nephritis, dry eye syndrome, and focal segmental glomerulosclerosis.

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.

AXSM

Sector: Health Care
Industry: Pharmaceuticals
Sub-Industry: Pharmaceuticals

Summary:
Axsome Therapeutics, Inc., a clinical stage biopharmaceutical company, engages in developing novel therapies for central nervous system (CNS) disorders in the United States. Its product pipeline includes AXS-05, which is in the Phase III clinical trial for the treatment resistant depression; Phase II/III clinical trials in agitation associated with Alzheimer’s disease; and Phase II clinical trial for the treatment of smoking cessation, as well as for major depressive disorder. The company is also developing AXS-07, which is in Phase III clinical trial for the treatment of migraine; AXS-12 that is in Phase II clinical trial for the treatment of in narcolepsy; AXS-09, which has completed Phase I clinical trial for the treatment of various CNS disorders; and AXS-02, which is in Phase III clinical trial for the treatment of the pain of knee osteoarthritis associated with bone marrow lesions, and for the treatment of chronic low back pain associated with Modic changes.

Theme – Pockets of Strength

FVRR

Sector: Consumer Discretionary
Industry: Internet & Direct Marketing Retail
Summary: Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company’s platform includes approximately 200 categories in 8 verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and technology, business, and lifestyle. Its buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and small businesses.
EPS Q/Q:
Sales Q/Q: +43%

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%

ACMR

Sector: Information Technology
Industry: Semiconductors
Sub-Industry: Semiconductor Equipment
Summary: ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase of megasonic waves to deliver megasonic energy to flat and patterned wafer surfaces in a uniform manner on a microscopic level; timely energized bubble oscillation cleaning equipment for two-dimensional and three-dimensional patterned wafers at advanced process nodes; and custom-made wafer assembly and packaging equipment.
EPS Q/Q: +130%
Sales Q/Q: +44%

SQ

Sector: Information Technology
Industry: IT Services
Summary: Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company’s commerce ecosystem includes point-of-sale software and hardware that offers sellers to payment and point-of-sale solutions. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Register that combines its hardware, point-of-sale software, and payments technology; Square Terminal, a portable payments device that replaces keypad terminals, which accepts various payment types, such as tap, dip, and swipe, as well as prints receipts; and managed payments solutions.
EPS Q/Q: +64%
Sales Q/Q: +41%

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%

TW

Sector: Financials
Industry: Capital Markets
Summary: Tradeweb Markets Inc. builds and operates electronic marketplaces in the United States and internationally. The company’s marketplaces facilitate trading in a range of asset classes, including rates, credit, money markets, and equities. It offers pre-trade data and analytics, trade execution, and trade processing, as well as post-trade data, analytics, and reporting services. The company provides flexible order and trading systems to institutional investors in 37 markets across 24 currencies.
EPS Q/Q: +44%
Sales Q/Q: +10%

EVER

Sector: Communication Services
Industry: Interactive Media & Services
Sub-Industry: Interactive Media & Services
Summary: EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company’s online marketplace offers consumers shopping for auto, home, and life insurance quotes. It serves carriers, agents, financial advisors, and indirect distributors and aggregators. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014.
EPS Q/Q: –
Sales Q/Q: +86%
February 29, 2020

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