J.P. Morgan quant's 20 highest beta stocks in the S&P 500

Beta measures stock price volatility and a high-beta stock (with a beta above 1.0) tends to more risky with greater potential reward. Investors are now flocking to high-beta names after previously crowding into momentum stocks (due to megacap and AI fear of missing out) in January and low volatility in April (on worries about tariffs, a recession and AI overspending).

 

1. Super Micro Computer (SMCI), beta score 3.37
2. Coinbase Global (COIN), 2.82
3. Palantir Technologies (PLTR), 2.41
4. Monolithic Power Systems (MPWR), 2.39
5. Broadcom (AVGO), 2.35
6. Nvidia (NVDA), 2.32
7. Micron Technology (MU), 2.30
8. Western Digital (WDC), 2.19
9. Arista Networks (ANET), 2.17
10. AMD (AMD), 2.13
11. Dell (DELL), 2.08
12. Vistra (VST), 2.00
13. Lam Research (LRCX), 1.98
14. Microchip Technology (MCHP), 1.92
15. Crowdstrike (CRWD), 1.91
16. KKR (KKR), 1.90
17. Teradyne (TER), 1.88
18. KLA (KLAC), 1.87
19. Carnival (CCL), 1.87
20. Tesla (TSLA), 1.86

• by vol https://finviz.com/screener.ashx?v=211&ta=0&o=-volume&t=AMD,ANET,AVGO,CCL,COIN,CRWD,DELL,KKR,KLAC,LRCX,MCHP,MPWR,MU,NVDA,PLTR,SMCI,TER,TSLA,VST,WDC

     

     

     

 

                   

===Tesla (TSLA) wins temporary approval in China for its self-driving service

Tesla  (TSLA) cleared a significant hurdle that could help it roll out its advanced driver-assistance technology in China. Authorities removed restrictions on Tesla’s China-made cars after passing the country’s data security requirements. The move raises the prospect that Tesla’s driver-assistance software will soon be available in the country.

• Tesla stock soared on Monday following reports that CEO Elon Musk won Chinese approval to deploy the automaker’s Full Self-Driving (FSD) autonomous software on the mainland.
• As was first reported by the Wall Street Journal, people familiar with the matter said that officials told Tesla that they had tentatively approved FSD in the country during Musk’s 24-hour visit to Beijing over the weekend.
• Separately, Bloomberg earlier reported that Tesla will use Chinese tech company Baidu’s street-level mapping data to power FSD. Tesla had been previously using Baidu’s mapping data for satellite navigation in its cars. Working with a Chinese company helped with regulatory approval as data privacy and security risks are minimized, the reports said.

TSLA +115% YTD

• TSLA is in the NASDAQ 100 but not in the S&P 500

The fund that Simons founded in 1982 added 3.3 million shares of Tesla in the 3-month period ended Dec. 31

James Simons, founder of Renaissance Technologies.

Renaissance Technologies, added more than 3 million shares of Tesla to its holdings in the fourth quarter of last year, as the electric-vehicle maker’s shares catapulted higher, according to public filings.

The hedge fund founded by James Simons, considered the premiere quantitative-driven investor, owned 3.9 million shares of Tesla at the end of Dec. 31, with the company’s stake in Renaissance’s portfolio jumping from 0.1% in the prior quarterly period to 1.3%, according to file-tracking site Whalewisdom.

For his efforts, he ranks No. 21 on the Forbes list of the wealthy, with a net worth of $21.6 billion.

Renaissance’s main investment offering is the flagship Medallion Fund, which has generated a 39% average annual return from 1988 to 2018, that is despite rich fees, which currently include a 5% management and 44% performance fees.

The Medallion Fund limits its assets to roughly $10 billion and is only available to Renaissance employees.

This week's biggest % winners & losers : Jan 27 - 31, 20 (wk 5)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: AKRX (1.53 +16.79%), RETA (218.79 +13.08%), CDNA (24.16 +11.49%), ESPR (54.08 +10.14%), TNDM (76.04 +10.04%), TRHC (58.07 +9.55%)
• Materials: SMG (122.74 +12.98%)
• Industrials: NAV (36.62 +43.21%), CMPR (119.63 +13.91%)
• Consumer Discretionary: DLPH (15.34 +56.21%), ADNT (25.71 +26.84%), LAUR (20.84 +18.07%), DESP (14.81 +15.97%), TSLA (650.57 +15.18%), PENN (29.83 +14.91%), LB (23.16 +11.67%)
• Financials: MOSC (16.66 +42.15%), SC (26.62 +13.32%)

This week's top % losers

• Industrials: BGG (3.67 -29.96%), EGLE (3.25 -19.95%)
• Consumer Discretionary: ASNA (4.4 -23.21%), MIK (4.93 -20.23%), SKY (28.75 -20.07%), TUP (6.26 -19.43%), NIO (3.78 -18.88%)
• Information Technology: EXTR (5.9 -23.28%), INSG (6.71 -22.43%), CMTL (28.91 -21.97%), AAOI (11.3 -19.05%)
• Energy: MMLP (3.04 -21.85%), STNG (23.34 -19.57%), NINE (4.84 -19.33%), FRO (8.76 -18.96%)

-=Tesla (TSLA) reported earnings on Wed 29 Jan 20 (a/h)

Tesla beats by $1.53, beats on revs; guides FY20 deliveries above consensus

Reports Q4 (Dec) earnings of $2.14 per share, excluding non-recurring items, $1.53 better than the S&P Capital IQ Consensus of $0.61; revenues rose 2.2% year/year to $7.38 bln vs the $7.05 bln S&P Capital IQ Consensus. GAAP gross profit of $4.1B remained essentially flat in 2019 compared to 2018.

Volume growth and successful cost reduction efforts were offset by normalization of ASP, mix shift towards Model 3 and a higher lease mix. Sequentially, GAAP gross margin remained relatively flat in Q4 at 18.8% vs. 18.6% consensus, while we ramped Model 3 production at Gigafactory Shanghai.

Auto gross margin -30 bps QoQ to 22.5%.

For full year 2020, vehicle deliveries should comfortably exceed 500,000 units vs. ests near 475K. Due to ramp of Model 3 in Shanghai and Model Y in Fremont, production will likely outpace deliveries this year. Both solar and storage deployments should grow at least 50% in 2020.

Reiterates positive GAAP net income and FCF with temporary exceptions due to the lunch of new products

Production ramp of Model Y in Fremont has begun, ahead of schedule.

Model 3 production in Shanghai is continuing to ramp while Model Y production in Shanghai will begin in 2021. We are planning to produce limited volumes of Tesla Semi this year.

Earnings this week : Jan 27 - 31, 20 (wk 5)

Monday (Jan 27)

• Morning: ARLP ARNC BOH DHI HMST NWBI SALT S
• Afternoon: ASH BRO CR ELS FFIV GGG HTLF IBTX JJSF JNPR LRN NBTB PKI RMBS SANM SSB TCF WSBC WHR

Tuesday (Jan 28)

• Morning: MMM AOS ALV CIT FBP FBC GPK HOG HCA LEA LMT MKC NUE PCAR PNR PFE PHG PII POL BPOP PHM SAP UTX XRX
• Afternoon: AMD ALK AAPL BXP CHRW CNI CMRE EBAY EQR FCF FHB MTSI MXIM MRCY MSTR MKSI MINI NVR OSIS PFG RGA RXN SLGN SKY SBUX SYK TRMK UMBF WRB XLNX

Wednesday (Jan 29)

• Morning: ANTM T ADP AVY BA EAT CP GIB CVLT GLW DOW DT EVR EXTR FCFS GD GE HES IR IVZ KNX LFUS MPC MKTX MA MCD MPLX NDAQ NYCB NSC NVS OSK PGR PB ROK ROL RES SC SNDR SMG SILC SLAB SWK SXC TROV TEL TXT
• Wednesday (Jan 29)
• Afternoon: AGNC ALGN ALGT AMP ADM AZPN AXS AX BDN CACI CLS CMPR CRUS CNMD CLB CREE DLB DRE ENVA ESS FB FBHS HOLX IEX ILMN ISBC KLIC LRCX LSTR LVS LM LLNW MLNX MTH MEOH MSFT MAA MDLZ MUSA EGOV PKG PYPL QRVO SEIC NOW TSLA TTEK URI VAR

Thursday (Jan 30)

• Morning: ALXN ADS FLWS MO ABC APO APTV AXTA BIIB BX BGG BC CRS CMS CNXM CNX KO CTVA CFR DHR DOV DD LLY EPD BEN GWW HSY IP KIM KEX LAZ MMP MMC MDC MTOR MIXT MNRO MSCI MUR NTCT NOC PH DGX RTN RFP ROP RDS.A SHW SPB SF TMO TSCO TFC UBSI UPS VLO VLY VZ WEC WCC WRK XEL
• Afternoon: AMZN AMGN AIV ARCB AJG BZH EPAY CPT CVCO CE CACC DECK EMN EW EA NVST FII FICO FLEX HA HAYN LEVI LPLA MATW MTX MITK NFG NATI OTEX POWI PFPT RMD RHI SIGI SKYW X VRTX V WDC

Friday (Jan 31) 

• Morning: ADNT AON BERY BAH BR CAT CHTR CVX CHD CL XOM GNTX HTH HON IDXX ITW IMO JCI KKR LYB MAN PSX PSXP PFS SBSI VRTS WY WETF

MONDAY

Arconic, DR Horton, Sprint, F5 Networks, Whirlpool

TUESDAY

3M, Lockheed Martin, LVMH, Pfizer, United Tech, Harley-Davidson, Xerox, PulteGroup, Advanced Micro, Apple, Starbucks, Alaska Air, eBay, Equity Residential

WEDNESDAY

AT&T, Boeing, Dow, General Electric, Mastercard, McDonald's, Novartis, Anthem, Corning, General Dynamics, Las Vegas Sands, Facebook, Microsoft, Mondelez, PayPal, Samsung Electronics, Tesla, United Rentals

THURSDAY

Altria, Biogen, Coca-Cola, Deutsche Bank, Eli Lilly, Royal Dutch Shell, Alexion Pharma, UPS, Verizon, Nintendo, H&M Hennes & Mauritz, Hershey, Blackstone, Northrop Grumman, Amazon, Amgen, Visa, Levi Strauss, Electronic Arts

FRIDAY

Caterpillar, Charter Comm, Chevron, Colgate-Palmolive, Exxon Mobil, Philips 66, Johnson Controls, Honeywell

Notable earnings reports:

• Ashland (NYSE:ASH), Rambus (NASDAQ:RMBS), Juniper Networks (NYSE:JNPR) and F5 Networks (NASDAQ:FFIV) on January 27; Apple (AAPL), eBay (NASDAQ:EBAY), AMD (NASDAQ:AMD), Lockheed Martin (NYSE:LMT), Pfizer (NYSE:PFE) and Starbucks (NASDAQ:SBUX) on Janury 28; 
• Facebook (FB), Microsoft (MSFT), McDonald's (NYSE:MCD), Boeing (BA), AT&T (NYSE:T), Tesla (TSLA), Cree (NASDAQ:CREE), Mastercard (NYSE:MA), Mondelez International (NASDAQ:MDLZ) and PayPal (NASDAQ:PYPL) on January 29; 
• Altria (MO), Coca-Cola (NYSE:KO), DuPont (NYSE:DD), Raytheon (NYSE:RTN), Verizon (NYSE:VZ), Visa (NYSE:V), Electronic Arts (NASDAQ:EA), Nintendo (OTCPK:NTDOY), Biogen (NASDAQ:BIIB), Amazon (AMZN) and UPS (UPS) on January 30; 
• Caterpillar (CAT), Honeywell (NYSE:HON), Chevron (NYSE:CVX) and Exxon Mobil (XOM) on January 31.

=Tesla (TSLA) downgraded to Underweight from Equal-Weight at Morgan Stanley

This week's biggest % winners & losers : Oct 21 - 25, 19 (wk 43)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: BIIB (288.04 +30.89%), RIGL (2.1 +28.44%), ANIK (73.36 +26.77%), DVAX (5.01 +22.79%), LXRX (3.87 +20.94%)
• Industrials: UFPI (50.26 +21.55%)
• Consumer Discretionary: PETS (25.81 +32.77%), TSLA (328.13 +27.7%), BJRI (43.35 +23.93%), PDD (40.84 +22.35%), STMP (92.01 +21.75%)
• Information Technology: TWTR(30.30  -22.29%) CISN (10.09 +20.26%), FSCT (30.59 +20.2%)
• Financials: ONDK (4.46 +25.99%)
• Energy: QEP (3.65 +34.69%), TK (5.53 +29.21%), CHK (1.56 +20.93%)

This week's top % losers

• Healthcare: OPK (1.44 -31.26%), TXMD (2.84 -22.51%), VCRA (19.12 -20.96%), MGNX (8.71 -20.82%)
• Industrials: REZI (9.36 -36.37%), GVA (26.25 -25.64%), TNET (50.31 -16.5%)
• Consumer Discretionary: SERV (42.2 -23.94%), HAS (96.01 -21.28%), SIX (43.16 -16%)
• Information Technology: NOK (3.78 -27.31%), CTS (27.89 -16.99%), NTGR (26.55 -16.59%), MXL (18.73 -16.31%)
• Utilities: PCG (5.00 -35.57%)

Tesla (TSLA) reported earnings on Wed 23 Oct 19 (a/h)

** charts after earnings **

 

Tesla beats by $2.19, reports GAAP profitability and postive FCF, upside to gross margin; misses on revs

Reports Q3 (Sep) earnings of $1.91 per share, $2.19 better than the S&P Capital IQ Consensus of ($0.28); revenues fell 7.6% year/year to $6.3 bln vs the $6.48 bln S&P Capital IQ Consensus.  GAAP EPS $0.80 vs. ($0.23) consensus.

Compared to Q3 of 2018, the percentage of leased vehicles has tripled and alone has impacted revenue by the majority of the YoY decrease. Model 3 mix has increased while we have taken actions leading to the reduction of the ASP of our products. These ASP reductions are particularly impacted by the launch of the Standard Range trims of Model 3 and pricing actions earlier in the year. We are positioned to accelerate our growth further through Gigafactory Shanghai, Model Y and also through increasing build rates on our existing production lines. These capacity increases will allow for higher total vehicle deliveries and associated revenue. We also expect to gradually release nearly $500M of accumulated deferred revenue tied to Autopilot and Full Self Driving features.

GAAP Automotive gross margin improved by 393bp QoQ to 22.8%, well above estimates (improved by 366bp QoQ excluding regulatory credits). Margin was impacted in part due to fundamental improvements in our operating efficiency, including higher fixed cost absorption, reductions in manufacturing and material costs and continued improvements in vehicle quality and in part due to Smart Summon-related deferred revenue recognition, FX and other non-recurring items. Improved gross profit combined with a decline in operating expenses resulted in material improvement of GAAP net income.

While total volumes are expected to grow by ~50% in 2019, this year our focus has been cost control and preparing for our next phase of growth

Quarter end cash and cash equivalents increased to $5.3B, driven by positive free cash flow of $371M.

Gigafactory Shanghai ahead of schedule, trial production started

Model Y ahead of schedule, production expected by summer 2020