Stock Synopsis: ESG value and momentum stock market portfolio strategies

Fiona Sydney

2024-03-26 09:30:00 Tue ET

Paris agreement on climate change

Stock Synopsis: ESG value and momentum stock market portfolio strategies

Since 2013, we have been delving into the broad topics of ESG (Environmental, Social, and Governance) stock portfolio optimization, asset valuation, and financial statement analysis. Apart from socially responsible asset investments, our analysis shows that ESG scores can help U.S. stock market investors reduce stock return volatility with restrictive drawdowns at rare times of severe financial stress (such as the Global Financial Crisis of 2008-2009 and recent rampant pandemic corona virus crisis of 2020-2022). Both stable low-frequency ESG metrics and higher-frequency ESG news flows combine to create substantial ESG value and momentum in due course. These ESG value and momentum asset return anomalies usually lead to higher subsequent stock returns in comparison to the broader stock market indexes from S&P 500, Nasdaq, and Dow Jones to MSCI USA, MSCI Europe, MSCI Asia, and so forth. More importantly, ESG compliance, especially significantly lower carbon emissions for better environmental protection, often results in better risk-reward trade-offs in the U.S. stock market. Specifically, several recent empirical studies assess the asset return implications of industrial pollution. A long-short stock portfolio from U.S. public corporations with higher and lower toxic carbon emissions yields a long-term average annual return of at least 4% to 7%. In the wider context of industrial pollution, this hefty premium persists to be econometrically significant after one controls for common risk factors, such as size, value, momentum, asset growth, profitability, and market risk exposure etc. In addition, investor preferences, market sentiments, political connections, and cross-firm differences in corporate governance cannot explain this premium for toxic emissions. In the positive light, ESG woke capitalism plays an important role in macrofinance, asset return prediction, and stock portfolio optimization.

 

In our latest regular research, we focus our attention on the more granular stock-level data. Our feedback from socially responsible investors suggests that they seek at least 2 types of information not readily available from sell-side research. These 2 types of information span stock-level data and news about the next controversy in relation to ESG policy issues. Much of the recent focus on socially responsible investment topics pertains to the central themes such as air pollution, water scarcity, and the use of lithium-ion batteries on electric vehicles. Although this kind of information can be useful from a long-term perspective, this information often fails to address the comparable questions about particular U.S. public corporations (Is Tesla better and more investable than GM and Ford?) on the sole basis of ESG compliance. For this reason, these types of stocks suffice to differ dramatically because they often belong to different thematic ESG asset investment memes, issues, and topics.

 

As ESG asset investments become more mainstream and both mutual fund flows and other capital injections expand substantially in recent years, the generalist or retail investor should become more aware of U.N. sustainable development goals in relation to the environmental and social consequences of wealth creation (ESG woke capitalism). However, the roadmap for better stock portfolio optimization often turns out to be an afterthought, rather than useful integration with stock-level fundamental analysis. Given this recent backdrop, we provide a new product to help illuminate the ESG fundamental prospects of the top 60 U.S. stocks. In light of our proprietary alpha investment model, we rank the top 60 ESG U.S. stocks in terms of their respective alpha stock signals. Specifically, we quantify these alpha stock signals as the long prevalent excess returns from our AYA proprietary recursive multi-variate filtration of long-term daily returns on common risk factors, or top-bottom-decile stock return spreads, for size, value, momentum, operating profitability, asset investment growth, and market risk exposure. With U.S. patent accreditation and protection for at least 20 years, our AYA fintech network platform provides proprietary alpha stock signals and personal finance tools for U.S. stock market investors worldwide.

 

In response to broader demands from U.S. institutional investors, fund managers, and retail traders, we highlight the stock market valuation, top-line to bottom-line profile, style impact, and sector capital allocation of our ESG fundamental analysis. We track, follow, and monitor the recent ESG profiles, trends, and controversies as they develop over time. These signals help inform our proprietary stock investment selection and portfolio optimization. In any case, the reader should regard our AYA proprietary stock investment model and ESG fundamental analysis as only some, but not all, of the multiple risk factors for better asset return prediction. Many other qualitative factors and dimensions may come into play too. The usual disclaimer applies to this stock research article. Our recent historical backtest evidence serves as no guarantee of success in future empirical replication.

 

In terms of ESG compliance, the recent improvements manifest in higher alpha stock signals from our AYA proprietary alpha investment model.

In recent years, ESG fundamental analysis broadly suffers large drawdowns as persistently high inflation and interest rates cause adverse pressure on stock market valuation and return performance. Indeed, ESG stock returns have begun to recover. The long positions in many ESG stocks now deliver 3% to 5% excess returns relative to S&P 500 and MSCI USA over the past few years and further produce 7% on a long-short decile basis. These trends would likely persist into the next few years as the Federal Reserve System starts to launch interest rate cuts in the next few quarters between 2024 and 2026. In light of this macro uncertainty, ESG style and sector exposures remain defensive overall.

 

U.S. stocks with high ESG scores now trade on a prospective P/E multiple of 13.5, which is slightly higher than the P/E multiple of 12.5 for S&P 500. The current stock market valuation ratio of long ESG to S&P 500 is now one full standard deviation below its historical average. In this positive light, U.S. stocks with higher ESG scores are quite cost-effective, or no longer expensive, relative to S&P 500 in the historical context. For ESG stocks specifically, the P/B multiple has declined substantially from the recent peak of 1.5 to about 1.1 in recent quarters. In terms of U.S. sector tilts, many ESG stocks concentrate in defensive sectors: overweight in high-tech products, online services, and consumer staples; and then underweight in banks, insurers, and other financial institutions as well as raw resources. Small tilts and overweight long positions in some large pharmaceutical companies, health care service providers, and industrial energy companies turn out to be the exceptions to our ESG defensive stock market portfolio allocation.

 

With better ESG compliance on U.S. soil, the resultant long positions lead to polar extremes in ESG value and momentum. The stock return spread between these 2 factor exposures is now near historical highs. If the current macro backdrop persists with relatively high inflation and interest rates, we can expect these ESG stocks to navigate any asset market turbulence with long prevalent excess returns. The defensive ESG stock market allocation helps better balance the excess returns on the basis of risk factor rotation between value and momentum. In addition to only some cyclical ESG value stocks, the vast majority of U.S. stocks with high ESG scores are likely to outperform the broader stock market indexes such as S&P 500 and Nasdaq in the next few years.

 

As Fed Chair Jerome Powell reiterates the forward guidance that the FOMC may start dovish interest rate cuts later from 2024 to 2026, we believe light seems at the end of the tunnel for ESG stock market performance (especially when macro headwinds such as relatively higher inflation and interest rates begin to fade in due course). We can observe positive returns for both ESG long positions and long-short positions. Our proprietary alpha investment model shows 3% to 7% excess returns for many ESG stocks relative to S&P 500 and MSCI USA. Our preferable ESG stocks begin to return to normalcy, or longer-term outperformance, after asset market turbulence in recent years. When we combine the best U.S. stocks with higher ESG scores with our proprietary alpha stock signals, we achieve a delicate balance between fundamental factors and favorable ESG performance metrics. Time-series analysis shows that the current stock market valuation of these top 60 ESG alpha stocks is at least one full standard deviation below the long-term historical average (in terms of P/E and P/B multiples). Hence, this stock market valuation should not be prohibitive to future return performance in the next few years. In combination, the ESG alpha value and momentum style tilts seem to provide ample top-line growth and stock market outperformance over a sufficiently long data span. We expect this ESG-alpha combination to come to fruition in the next few years.

 

We combine both proprietary alpha stock signals and ESG scores to shine fresh light on the stock synopsis of fundamental competitive advantages across Corporate America.

In this section, we apply both our proprietary alpha stock signals and ESG scores to specify the resultant stock selection across Corporate America. The resultant ESG alpha stocks are the top 1% or 60 U.S. stocks with relatively high ESG scores and dynamic conditional alphas. This empirical analysis screens our preferable ESG alpha stocks from a broad universe of more than 6,000 U.S. stocks, equity market funds, and ADRs. Each stock synopsis provides the cashtag and hyperlink to the individual stock page available on our AYA fintech network platform. Each stock page links to the recent blog articles, social media posts and comments, static and dynamic alpha estimates, financial statements, key financial ratios, business news, company description, and quadripartite visualization.

 

$ARM

Arm Holdings Limited provides processor designs and software platforms. Arm Holdings Limited is based in Cambridge, UK.

 

$NVDA

NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, the company's focus has evolved from PC graphics to artificial intelligence (AI) based solutions that now support high performance computing (HPC), gaming and virtual reality (VR) platforms. NVIDIA's GPU success can be attributed to its parallel processing capabilities supported by thousands of computing cores, which are necessary to run deep learning algorithms. The company's GPU platforms are playing a major role in developing multi-billion-dollar end-markets like robotics and self-driving vehicles. NVIDIA is a dominant name in the Data Center, professional visualization and gaming markets where Intel and Advanced Micro Devices are playing a catch-up role. The company's partnership with almost all major cloud service providers (CSPs) and server vendors is a key catalyst.

 

$AMC

AMC Entertainment Holdings, Inc., operates as a theatrical exhibition company primarily in the United States and internationally. It owned or interests in theatres and screens. AMC Entertainment Holdings, Inc. is based in Leawood, Kansas.

 

$TTD

The Trade Desk, Inc. is a provider of technology platform for advertising. The company through self-service, cloud-based platform, ad buyers create, manage and optimize data-driven digital advertising campaigns which includes display, video, audio, native and social, on a multitude of devices, such as computers, mobile devices and connected TV. It operates primarily in the United States, Europe and Asia. The Trade Desk, Inc. is headquartered in Ventura, CA.

 

$USNA

USANA Health Sciences Inc. develops and manufactures high-quality nutritional, personal care and weight management products. The company's three primary product lines consist of nutritional, personal care and weight management products. The company's products are distributed primarily through a network marketing system.

 

$DUOL

Duolingo Inc. provides mobile language learning platform. Duolingo Inc. is based in Pittsburgh, PA, USA.

 

$NET

Cloudflare Inc. provides platform protection and accelerates any Internet application online without adding hardware, installing software or changing a line of code. It operates principally in Austin, TX, Champaign, IL, New York, San Jose, Washington, D.C., Lisbon, London, Munich, Beijing, Singapore, and Sydney. Cloudflare Inc. is based in Denver, Colorado, USA.

 

$SDGR

Schrodinger Inc. provides computational platforms to accelerate drug discovery and materials design deployed by biopharmaceutical and industrial companies, academic institutions and government laboratories. Schrodinger Inc. is based in NEW YORK.

 

$SBUX

Starbucks Corp. is a roaster and retailer of specialty coffee globally. Besides its fresh, rich-brewed coffees, the company's offerings include many complimentary food items and a selection of premium teas and other beverages, sold mainly through the company's retail stores. The company's popular brands include Starbucks coffee, Teavana tea, Seattle's Best Coffee, La Boulange bakery products and Evolution Fresh juices. Other than the company's own retail stores, it generates revenues through licensed stores, consumer packaged goods and foodservice operations. The company receives royalties and license fees from the U.S. and international licensed stores. Under its consumer-packaged goods operations, Starbucks sells packed coffee and tea products as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores. The company's latest reportable operating segments comprise North America, International, and Channel Development.

 

$MTCH

Match Group, Inc., the world's foremost provider of dating products, operates a portfolio of more than 45 brands. Its biggest and best known brands are Tinder, Match.com, PlentyOfFish, Meetic and OkCupid. All these brands have unique features and also the capability to both search profiles and receive algorithmic matches. The company offers dating products in multiple languages across countries. Tinder, the world's highest downloaded and top earning dating app, reflects the key catalyst for the company's year-over-year revenue growth. Based in France, Meetic is a leading European online dating brand. One of the largest brand, OurTime is a community of singles above the age 50 of any dating product. Hinge was acquired by Match. It is a mobile-only experience that focuses on users with a greater level of aim to enter into a relationship.

 

$INTU

Intuit Inc. is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally. The company has four reportable segments: Small Business and Self-Employed Group, Consumer and Strategic Partner, ProConnect and Credit Karma. Small Business and Self-Employed Group segment serves small businesses and self-employed people around the world. Intuit's offerings include QuickBooks financial and business-management online services and desktop software, payroll solutions, merchant payment-processing solutions, and financing for small businesses. Consumer segment offers DIY and assisted TurboTax income-tax preparation products and services. ProConnect serves professional accountants in the United States and Canada, who are essential to both small businesses' success and tax preparation and filing.

 

$NFLX

Netflix is considered a pioneer in the online video-streaming space. The company evolved from a small DVD-rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and a fortified international footprint. Netflix has been spending aggressively on building its original show portfolio. This is helping it sustain its leading position despite the launch of new services like Disney and Apple TV as well as the existing services like Amazon prime video. Netflix streams movies, television shows and documentaries across a wide variety of genres and languages. Subscribers, both domestic and international, can watch them on a host of internet-connected devices, including television sets, computers and mobile devices. In the Domestic DVD segment, Netflix delivers DVDs through the U.S. postal service from distribution centers located in major U.S. cities.

 

$AMGN

Amgen Inc. is a combination of leading biotech companies worldwide, with a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health & nephrology and neuroscience markets. It developed two most successful drugs, Epogen & Neupogen. Amgen successfully launched two next-generation products, Aranesp & Neulasta and also a biosimilar drug, Prolia/Xgeva. The acquisition of Immunex Corp gave Amgen access to the multi-blockbuster drug, Enbrel. Other products are Repatha, Blincyto, Parsabiv, Evenity, Aimovig, Lumakras/Lumykras, Kanjinti, Mvasi & Amgevita biosimilars. Amgen also has a promising pipeline of cancer drugs. It has one of the strongest cash positions in the biotech sector, which could be used to acquire more pipeline assets that could fuel long-term growth. The erythropoiesis-stimulating agents and granulocyte colony-stimulating factor franchise comprise Epogen/Aranesp and Neupogen/Neulasta respectively. Biosimilar drugs are also a key part of Amgen's growth strategy.

 

$PEN

Penumbra, Inc. is an interventional therapies company. It designs, develops, manufactures and markets medical devices. The company's portfolio of products primarily addresses neuro and peripheral vascular medical conditions and clinical needs. Neuro products include Neurovascular Access, Neuron Access System, BENCHMARK Intracranial Access System, Penumbra System, 3D, Penumbra Coil 400, Penumbra SMART Coil and LIBERTY stent. Peripheral vascular products include Ruby Coil System, Penumbra Occlusion Device and Indigo System. It operates primarily in U.S., Europe, Canada and Australia. Penumbra, Inc. is headquartered in Alameda, California.

 

$MSFT

Microsoft Corporation is one of the largest broad-based technology providers in the world. The company dominates the PC software market with more than 80% of the market share for operating systems. The company's Microsoft 365 application suite is one of the most popular productivity software globally. It is also now one of the two public cloud providers that can deliver a wide variety of infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) solutions at scale. Microsoft's products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools and video games. The company designs and sells PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. Through Azure, it offers cloud-based solutions that provide customers with software, services, platforms and content.

 

$SHOP

Shopify Inc. provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses. Merchants use the company's software to run business across various sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. Shopify's platform enables merchants to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics along with reporting from one integrated back office. Moreover, Shopify hosts a huge database of merchant and customer interactions. Merchants leverage this transactional dataset to get meaningful insight into the sales channel growth prospects and consumer behavioral aspects. This improves their ability to target prospective customers more easily, which drives sales growth.

 

$TSLA

Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The company's flagship Model 3 is the best-selling EV model in the United States. Tesla, which has managed to garner the reputation of a gold standard over the years, is now a far bigger entity that what it started off since its IPO in 2010, with its market cap crossing $1 trillion for the first time in October 2021.' The EV king's market capitalization is more than the combined value of legacy automakers including Toyota, Volkswagen, Daimler, General Motors and Ford. Over the years, Tesla has shifted from developing niche products for affluent buyers to making more affordable EVs for the masses. The firm's three-pronged business model approach of direct sales, servicing, and charging its EVs sets it apart from other carmakers. Tesla, which is touted as the clean energy revolutionary automaker, is much more than just a car manufacturer.

 

$BKNG

Booking Holdings Inc. is one of the largest online travel companies in the world. The company's travel-related offerings cover hotel rooms, airline tickets, rental cars, vacation packages, cruises, 'things to do' at customer destinations and travel insurance. The company has agreements with hotels, airlines companies, cruise ships, transport companies and vacation providers, which enable it to accept bookings on their behalf. Information on these offerings and customer reviews are available on the company's owned or operated websites, thus helping customers take informed decisions. Services in the U.S. are provided through the Booking Holdings.com website. International revenues are generated through Booking.com and Agoda. Agoda is an Asian company acquired in 2007.

 

$GOOG

Alphabet Inc. is engaged in technology business. The Company provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce and hardware products through its subsidiaries. Alphabet Inc., formerly known as Google Inc., is headquartered in Mountain View, California.

 

$CSCO

Cisco Systems Inc. is an IP-based networking company offering products and services to service providers, companies, commercial users and individuals. Cisco is rapidly expanding its presence in network security domain. Security includes products and services preventing unauthorized access to system resources and protecting from worms, spam, viruses and other malware. The Data Center product category includes Cisco Unified Computing System (UCS) and Server Access Virtualization. It also comprises of The Other products segment and Related Services. The company offers identity and access, advanced threat, and unified threat management solutions. The company has introduced Secure Remote Worker, which leverages Zero Trust Architecture, combined with robust endpoint security portfolio of AnyConnect, Umbrella, Duo and AMP for Endpoints. Cisco provides Next-Generation Network (NGN) Routers, that transport data, voice and video information from one IP network to another.

 

$PINS

Pinterest provides a platform to show its users (called Pinners) visual recommendations (called Pins) based on their personal taste and interests. Users then save and organize these recommendations into collections (called Boards). Pinterest generates revenues by delivering ads on its website and mobile application. The company is helping advertisers reach millennials and Gen Z audience who are more active on immersive mobile platforms. The company recognizes revenues only after transferring control of promised goods or services to customers. This happens when a user clicks on an ad contracted on a cost per click (CPC) basis, views an ad contracted on a cost per thousand impressions (CPM) basis or views a video ad contracted on a cost per view (CPV) basis.

 

$AEO

American Eagle Outfitters Inc. is a specialty retailer of casual apparel, accessories, outerwear and footwear for men and women. It, along with its subsidiaries, engages in the designing and marketing of casual clothing. The company operates under the American Eagle (AE) Brand, Aerie by American Eagle and an online retailing channel, AEO Direct. AE Brand: Under this brand, the company sells latest fashion apparel and accessories for men and women in the age group of 15-25 years. Aerie by American Eagle: Aerie is a lifestyle brand providing simple and stylish apparel, especially for young girls. The company sells apparel through its standalone Aerie stores across the U.S. and Canada, and globally through its online channel, aerie.com. AEO Direct: Through this online retail channel, it sells a wide range of apparel and accessories from its different brands. It merchandises its products through e-commerce websites, ae.com and aerie.com.

 

$AMAT

Applied Materials provides manufacturing equipment, services and software to the semiconductor, display and related industries. With its diverse technology capabilities, Applied delivers products and services that improve device performance, yield and cost. Applied Materials's customers include manufacturers of semiconductor chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices. These customers may use what they manufacture in their own end products or sell the items to other companies for use in advanced electronic components. Applied operates in three reportable segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.

 

$ASML

ASML is a world leader in the manufacture of advanced technology systems for the semiconductor industry. The company offers an integrated portfolio for manufacturing complex integrated circuits. ASML designs, develops, integrates, markets and services advanced systems used by customers the major global semiconductor manufacturers to create chips that power a wide array of electronic, communications and information technology products.

 

$ETSY

Etsy is primarily an e-commerce service provider, which operates a two-sided marketplace platform called Etsy.com. It allows various merchants to list and sell their unique and creative products belonging to categories like homewares and home furnishings, jewelry and personal accessories, apparel, craft supplies, paper and party supplies, and beauty and personal care via its marketplace platform. This platform enables merchants to manage products and inventory, process orders and payments, ship orders, and build customer relationships seamlessly.

 

$MA

Founded in 1966 and headquartered in Purchase, NY, Mastercard Inc. is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities. The company's payment solutions include payment programs, marketing, product development, technology, processing, consulting and information services. It also provides worldwide transaction processing and other payment-related services, which include facilitating the authorization, clearing and settlement process of transactions, as well as processing cross-border and currency conversion transactions. In May 2001, the company was incorporated as a Delaware stock corporation. Mastercard has one reportable operating segment, Payment Solutions. The company manages and licenses payment card brands including MasterCard, Maestro and Cirrus.

 

$CLX

The Clorox Company is engaged in the production, marketing and sale of consumer products in the U.S. and international markets. The company sells its products primarily through mass merchandisers, grocery stores and other retail outlets. Clorox markets some of the most trusted and recognized brands, including its namesake bleach and cleaning products, Green Works natural cleaners and laundry products, Poett and Mistolin cleaning products, Armor All and STP auto-care products, Fresh Step and Scoop Away cat litter, Kingsford charcoal, Hidden Valley and K C Masterpiece dressings and sauces, Brita water-filtration systems, Glad bags, wraps and containers, and Burt's Bees natural personal care products.

 

$BAH

Booz Allen Hamilton Holding Corporation is a management and technology consulting, analytics, engineering, digital solutions, mission operations and cyber expertise to the United States and international governments, corporations plus not-for-profit organizations. The company serves a diverse base of federal government clients, helping them to tackle complex challenges such as protecting soldiers in combat and supporting their families, keeping national infrastructure secure, advancing cyber capabilities, enabling and enhancing digital services, transforming the healthcare system and improving governmental efficiency. Booz Allen has commercial clients across various industries - aerospace, health and life sciences, energy, financial services and transportation. The company expanded beyond management consulting foundation to develop deep expertise in the analytics, engineering, digital solutions and cyber. Booz Allen has five service offerings - Consulting, Analytics, Digital Solutions, Engineering and Server.

 

$DHIL

Diamond Hill Investment Group, Inc. is an independent investment management firm. It provides investment management services to institutions and individuals through mutual funds, separate accounts, and limited partnerships. The Company also offers fund administration and statutory underwriting services, including portfolio and regulatory compliance, treasury and financial oversight, statutory underwriting, and oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent, as well as general business management of the mutual fund complex. Diamond Hill Investment Group, Inc. is headquartered in Columbus, Ohio.

 

$ZG

Zillow Group provides real estate and home-related brands on the Web and mobile. The company focuses on home lifecycle which include renting, buying, selling, financing and home improvement. Its portfolio of consumer brands consists of Zillow, Trulia, StreetEasy and HotPads, Naked Apartments, RealEstate.com and OutEast.co. Moreover, Zillow Group offers a complete suite of marketing software and technology solutions to aid real estate, rental, and mortgage professionals make best use of business opportunities and connect with millions of consumers. The company reports results in three segments namely, Internet, Media & Technology or IMT, Homes and Mortgages.

 

$BLK

BlackRock, Inc., together, with its subsidiaries, is a leading publicly traded investment management firm. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares(TM) and BlackRock exchange-traded funds, separate accounts, collective trust funds and other pooled investment vehicles. BlackRock also offers technology services, including the investment and risk management technology platform, Aladdin(TM), Aladdin Wealth, eFront, and Cachematrix, as well as advisory services and solutions to a broad base of institutional and wealth management clients.

 

$AVGO

Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products. Headquartered in San Jose, CA, Broadcom's semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom's infrastructure software solutions enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms. The company's Symantec cyber security solutions portfolio, include endpoint, network, information and identity security solutions.

 

$AAPL

Apple's business primarily runs around its flagship iPhone. However, the Services portfolio that includes cloud services, App store, Apple Music, AppleCare, Apple Pay & licensing and other services which become the cash cow. Moreover, non-iPhone devices like Apple Watch and AirPod have gained significant traction. In fact, Apple dominates the Wearables and Hearables markets due to the growing adoption of Watch and AirPods. Solid uptake of Apple Watch also helps Apple to strengthen its presence in the personal health monitoring space. Apple also designs, manufactures and sells iPad, MacBookand HomePod. These devices are powered by software applications including iOS, macOS, watchOS and tvOS operating systems. Apple's other services include subscription-based Apple News, Apple Card, Apple Arcade, new Apple TV app, Apple TV channels and Apple TV, a new subscription service.

 

$VOD

Vodafone AirTouch Plc is the world's largest international mobile communications firm. Their primary operation is in digital and analog cellular telephone networks of Vodafone.

 

$FICO

Fair Isaac Corporation makes decisions smarter. The company's solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Through increasing the precision, consistency and agility of their decisions, Fair Isaac clients worldwide increase sales, build customer value, cut fraud losses, manage credit risk, reduce operational costs, meet changing compliance demands and enter new markets more profitably. Fair Isaac powers hundreds of billions of decisions each year in financial services, insurance, telecommunications, retail, consumer branded goods, healthcare and the public sector.

 

$AMZN

Amazon.com is one of the largest e-commerce providers, with sprawling operations spreading across the globe. Its online retail business revolves around the Prime program well-supported by the company's massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish footprint in physical grocery supermarket space. Amazon also enjoys dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services, which is one of its high-margin generating businesses. Amazon has also become a household name with its Alexa powered Echo devices. Artificial Intelligence backed Alexa is helping the company sell products and services. The company reports revenue under three broad heads: North America, International and AWS, respectively. Amazon targets three categories of customers - consumers, sellers and website developers.

 

$SNPS

Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. The company offers a full suite of products used in the logic synthesis and functional verification phases of chip design, including a broad array of reusable design building blocks. It also sells physical synthesis and physical design products as well as physical verification products. The company's products are used to design a chip, from concept to the point of delivery to the manufacturer for fabrication. Synopsis provides software and hardware, which are used to develop electronic systems that incorporate chips. Additionally, the company provides Intellectual Property (IP) used in semiconductor design and manufacturing to simplify the design process and accelerate time-to-market for its customers. Synopsis reports revenues in three segments, namely Time-Based Products, Upfront Products and Maintenance and Service.

 

$CLGX

CoreLogic, Inc., formerly known as First American Corp., is a provider of consumer, financial and property information, analytics and services to business and government. The Company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services. CoreLogic has built databases for U.S. real estate, mortgage application, fraud, and loan performance and is also a provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. The Company serves various industries, including automotive, cable, financial services, employment, geospatial information service, insurance, legal, oil and gas, real estate, retail, utility, and telecommunications. CoreLogic, Inc. is headquartered in Santa Ana, California.

 

$UN

Unilever is one of the world's largest consumer products companies. They produce and market a wide range of foods, home and personal care products. Their leading brands include Dove, Lipton, Magnum, Omo and Rama. They are the number one producer of frozen foods in Europe, They are also a leader in the branded olive oil category the most important brand being Bertolli. They are the largest seller of packet tea in the world through our Lipton and Brooke Bond brands.

 

$META

Meta Platforms is the world's largest social media platform. The company's portfolio offering evolved from a single Facebook app to multiple apps like photo and video sharing app Instagram and WhatsApp messaging app owing to acquisitions. Along with in-house developed Messenger, these apps now form Meta's family of products used by billions of people on a monthly basis. Meta uses metrics like daily active users (DAUs) and monthly active users (MAUs) to measure Facebook's user base. Marketers buy ads that can appear on multiple platforms including Meta, Instagram, Messenger and third-party applications and websites. Meta, thanks to its huge user base gained a significant market share in the advertising space wherein it faces tough competition from Google, Twitter, Amazon and Snapchat-parent Snap. Meta also faces significant competition from the likes of Apple (messaging), YouTube (advertising and video), Bytedance (social media) and Tencent (messaging and social media).

 

$IONQ

IonQ Inc. provides quantum system through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ Inc., formerly known as dMY Technology Group Inc. III., is based in College Park, MD.

 

$WLYB

JOHN WILEY & SONS, INC. is a global publisher of print and electronic products, providing content and solutions to customers worldwide. The Company's core businesses produce professional and consumer books and subscription products; scientific, technical, medical and scholarly journals, encyclopedias, books, and online products; and textbooks and educational materials, including integrated online teaching and learning resources, for undergraduate and graduate students, teachers and lifelong learners. The Company's three core businesses develop and cross-market products to its diverse customer base of professionals, consumers, researchers, students, and educators.

 

$PDD

Pinduoduo Inc. provides an e-commerce platform allowing users to participate in group buying deals, primarily through Tencent's Wechat app. Pinduoduo Inc. is based in Shanghai, China.

 

$NKE

NIKE Inc. is engaged in the business of designing, developing and marketing of athletic footwear, apparel, equipment and accessories, and services for men, women and children worldwide. With the help of a strong brand portfolio, including Nike Pro, Nike Golf, Nike and Air Jordan, it offers premium, well-designed and high-quality products, in line with the latest customer trends. NIKE is the global leader in athletic footwear, apparel, equipment and sports-related accessories. Nike's 'swoosh' logo and 'just do it' tagline are widely recognized across the world, while its association with celebrity sportspersons, such as Michael Jordon and Roger Federer as well as top professional and college teams ensures a strong brand recall in the key U.S., U.K., Japanese and Chinese markets. The company's products include six key categories: running, NIKE basketball, the Jordan brand, football, training and sportswear (sports-inspired lifestyle products).

 

$RACE

Ferrari N.V. is engaged in designing, manufacturing and selling sports cars. Its products include sports car models consists of 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A as well as two grand tourer (GT) cars: California T and FF. The Company also produces a limited edition supercar, LaFerrari and limited series and one-off cars. It operates primarily in Europe, the Middle East, India, Africa, Americas, Greater China and Rest of Asia-Pacific region. Ferrari N.V. is headquartered in Maranello, Italy.

 

$HUBS

HubSpot Inc. provides inbound marketing and sales application over the cloud. The software-as-a-service (SaaS) vendor helps businesses attract more customers through search engine optimization (SEO), social media, blogging, website content management, marketing automation, email, Customer Relationship Management (CRM), analytics and reporting. The company's core products are Marketing Hub, Service Hub and Sales Hub, together referred to as HubSpot growth platform. HubSpot Marketing's important features are Marketing Automation and Email, Content Optimization System (COS), Social Media, SEO, CRM Sync and Reporting and Analytics. HubSpot Marketing is available for free as well as at different price points.

 

$STLA

Stellantis N.V. is an automaker and a mobility provider. Stellantis N.V., formerly known as Fiat Chrysler Automobiles N.V., is based in LIJNDEN, Netherlands.

 

$ADBE

Adobe Inc. is one of the largest software companies in the world. Adobe picks up licensing fees from customers, which form the bulk of its revenue. The company also offers technical support and education, which account for the balance. The company operates through three segments. The Digital Media solutions segment enables small businesses and enterprises to create highly compelling content, deliver it across diverse media through smartphones, tablets, e-readers, and other devices, and then optimize it through systematic targeting and measurement. Within Digital Media, the two major components of revenue are the Creative family of products and Document Services products. The target customers are traditional content creators, web application developers, digital media professionals and user interface designers/developers, writers, videographers and photographers.

 

$DELL

Dell Technologies Inc. is a provider of information technology solutions. The company's operating segment consists of Client Solutions, Enterprise Solutions Group and Dell Software Group. Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products, notebooks as well as services and third-party software and peripherals of Client Solutions hardware. ESG segment includes servers, networking and storage as well as services and third-party software and peripherals of ESG hardware. DSG segment includes systems management, security software solutions and information management software offerings. Dell Technologies Inc. is headquartered in Round Rock, Texas.

 

$GT

The Goodyear Tire & Rubber Company is one of the largest tire manufacturing companies in the world, selling under Goodyear, Kelly, Dunlop, Fulda, Debica, Sava and various other house brands (such as, Lee, Kingstone, Douglas, Mohave and Republic) as well as private-label brands (Roadhandler, Star and Monarch). It sells tires, undertakes automotive repairs and provides other services. It has 3 geographical segments. Americas, the largest in terms of revenue, develops, manufactures, distributes and sells tires and related products and services in North, Central and South America, and sells tires to various export markets. Europe, Middle East and Africa, the company's second largest segment, develops, manufactures, distributes and sells tires for automobiles, trucks, buses, aircraft, motorcycles, and earthmoving, mining and industrial equipment across Europe, the Middle East and Africa, and sells tires and Asia-Pacific segment does the same throughout the Asia Pacific region.

 

$BIDU

Baidu, Inc., formerly Baidu.com, Inc. is a Chinese-language Internet search provider and is based in Beijing, the People's Republic of China. The company offers a Chinese language search platform and conducts its operations principally through Baidu Online Network Technology Co., Ltd. , a network of third-party Web sites and software applications. Further, the company offers Japanese search services, including Web search, image search, video search, and blog search capabilities. It also offers online marketing services to its customers directly and through other distribution networks.

 

$GSK

GSK plc is a biopharma company. Its vaccine portfolio protects people from meningitis, shingles, flu, polio, measles and many more. GSK plc, formerly known as GLAXOSMITHKLINE, is based in Brentford, the United Kingdom.

 

$HPQ

HP Inc. is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions and services to individual consumers, SMBs and large enterprises, including customers in the government, health and education sectors. In Europe, Middle East, Africa, the company is headquartered in Geneva, Switzerland. In Asia Pacific, the company's headquarter is in Singapore. HP has three reportable segments: Personal Systems, Printing and Corporate Investments. The Personal Systems segment offers Commercial and Consumer desktop and notebook personal computers (PCs), Workstations, thin clients, Commercial mobility devices, retail point-of-sale (POS) systems, displays and other related accessories, software, support and services. The Printing segment provides Consumer and Commercial printer hardware, Supplies, solutions and services, as well as scanning devices. Corporate Investments includes HP Labs and certain business incubation projects.

 

$VZ

Verizon Communications Inc. is one of the largest communication technology companies. Its Wireless segment offers wireless voice and data services; Internet access on various smart and basic phones, notebook computers, and tablets; and multimedia access, business-focused, location-based, global data, home phone handsets, and high-speed Internet services, as well as network access and value-added services to support wireless connections for the Internet of Things (IoT). The Company's Wireline segment offers high-speed Internet, Fios Internet, and Fios video services; voice services, such as local exchange, regional and long distance calling, and voice messaging services, as well as Voice over Internet protocol services; network products and solutions comprising private Internet protocol (IP), public Internet, Ethernet, and optical networking services; IT infrastructure services that include collocation and managed hosting services; cloud services, which comprise computing, storage, backup, and recovery.

 

$TGT

Target Corp. has evolved from just being a pure brick-&-mortar retailer to an omni-channel entity. It has been modernizing supply chain to compete with pure e-commerce players. Its acquisition of Shipt to provide same-day delivery of groceries, essentials, home, electronics as well as other products. Target provides an array of owned & premium branded goods ranging from household essentials and electronics to toys and apparel for men, women and kids. It also houses food and pet supplies, home furnishings and decor, home improvement, automotive products and seasonal merchandise. It also offers in-store amenities, consisting of Target Cafe, Target Photo, Target Optical, Portrait Studio, Starbucks and other food service offerings. A greater number of general merchandise stores provides an edited food assortment, including perishables, dry grocery, dairy & frozen items. Its digital channels include a wide merchandise assortment, including many items found in stores, along with a complementary assortment.

 

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