In the classic sense of the term, momentum is an investment view of focusing on stocks that are trending positively over the past six and twelve months. At Zonebourse, the momentum Admittedly incorporates data relating to the positive trend of the stock in the short, medium and long term but above all the earnings and turnover revisions by analysts in the very short term (7 days), medium term (4 months) and long-term (12 months), weighted for the visibility of the business model of analysts than for the divergence of their quantified estimates, on the assumption that analysts are rather conservative in their revisions. Let’s take a closer look at the five selected values.
Ulta Beauty
Ulta Beauty is an American beauty retailer comparable to Sephora. The company operates approximately 1,264 stores in 50 states. The company operates retail stores specializing in the sale of cosmetics, perfumes, hair care and skin care products. The stores also have full-service lounges. Its stores, e-commerce website and mobile apps offer approximately 25,000 products in various categories and at different prices, including Ulta Beauty’s own-label brand.
Analysts on the matter have regularly revised upwards their profit and turnover estimates in recent months. Management has clarified its growth objectives for 2022 between 3 and 5% expected and published good results throughout 2021. In addition, Ulta Beauty benefits from its differentiated offer with superior merchandisers, a history of new products and convincing innovations, above-average growth potential in the retail sector as well as a strong management team.
Infineon Technologies
Infineon Technologiesa former spin-off of the Siemens AG group, is a German semiconductor manufacturer and leader in the smart card market. The company offers a wide range of sensors, microcontrollers, integrated circuits, switches and other electronic components for the automotive industry (41% of its turnover), telecommunications infrastructure and consumer electronics (31 %), renewable energies (17%) and connected security systems (11%). Over time, the company has proven its ability to adapt, as a technology supplier, then a systems integrator and finally a solution provider. As proof, the average annual growth of its turnover since its creation in 1999 (what is called the historical CAGR) amounts to 10.6% against 5.8% for the semiconductor market. There are many growth levers for the group, particularly in the renewal of the vehicle fleet, with strong demand for electric vehicles and silicon carbide as the main growth engines. Infineon has internally developed an MCU named AURIX Tricore, the best-in-class chip for real-time applications that will be essential to enable autonomous driving. After its minor misadventures in recent months (plant closings in Malaysia, storms in Austin), the start of the year should bode well for the company, which has doubled its stocks to better respond to demand flows.
Reply
Reply is an Italian company active in the information and communication technologies sector. She specializes in the creation and implementation of solutions based on new communication networks and digital media. It covers three areas of expertise: processes, applications and technologies. In these three areas of expertise, it offers consulting, systems integration and application management services. It operates in a variety of sectors, including telecommunications, utilities, media, industry and services, banking, insurance companies and financial operators, public administration and the healthcare sectors. Consulting firms have been on the rise lately, and there is nothing to contradict this trend, at least in the short term. This benefits leaders like Accenture in the United States and Capgemini in France but also to Reply in Italy. A company to watch closely for the first quarter of 2022.
Korn Ferry
Korn Ferryis a consulting company that offers talent management solutions, particularly for executives, through its Executive Search, Hay Group and Futurestep entities. Analysts on the matter have regularly revised upwards their profit and turnover estimates in recent months. For example, the estimated EPS (earnings per share) for 2022 fell from $ 1.72 in October 2020 to $ 5.51 in December 2021. The company is also highly rated in our Stock Screener.
Pason Systems
Pason Systems is a Canadian company that provides specialized data management systems for drilling rigs to the oil and gas industry as well as technology services to solar energy and energy storage developers. Its gradual shift towards renewable energies and energy storage opens up multiple growth opportunities for it at the start of 2022 as well as a possible revaluation of the title with this growing share of business. The company also comes out on top of our quantitative filters.
We will provide an update on the evolution of these five stocks at the end of the first quarter of 2022.