Author: Cornelio Ash

Cornelio Ash is a senior equity analyst and member of the U.S. Focus List and the Global Focus List Committees, which approves all equity recommendations for developed, emerging, and frontier markets. He is also a lead for the Technology sector and specializes in the Americas region. Cornelio joined the firm in 2005 and received his B.A. in Finance from California State University, Northridge. He holds a Series 65 securities license.

Software — Security Sector

Posted on by Cornelio Ash

Key points from this report:

 

  • WFH Accelerates Shift to Cloud-Based Security. Q1 FY20 has confirmed thoughts from our April Cybersecurity report as a select group of young, cloud-based security companies  continue to gain share from legacy security platforms (i.e Checkpoint).
  • Increasing Cyberattacks. Since February 2020, email phishing attacks have increased +667% as employees are working from home and other remote locations.
  • Cybersecurity: Secular Growth Industry. Annual global spending on cybersecurity software and services is poised to increase 52% over the next four years, from $124B to $189B in 2023, a four-year CAGR of 11%.
  • Top Picks: Fortinet (FTNT) , Zscaler (ZS), Okta (OKTA) , Qualys (QLYS), Crowdstrike (CRWD).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: General Dynamics (GD), Fifty One Job (JOBS), Weibo Corp (WB), Genworth Financial (GNW), Invitae (NVTA), Motorola Solutions (MSI).

 

Developed: Andritz (AND.AT; ANDR AV), Swisscom (SCMN.CH; SCMN SW), Ajinomoto (AJ@N.JP; 2830 JP), Leumi (LUMI.IL; LUMI IT), CSPC Pharmaceutical (CPHA.HK; 1093 HK), Fujifilm Holdings (FP@N.JP; 4901 JP), Scsk (SUPU.JP; 9719 JP).

 

Emerging: China Steel (CST.TW; 2002 TT), Kt & G (KTB.KR; 033780 KS), SK Hynix (HYI.KR; 000660 KS).

 

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Carlisle Cos (CSL), Rogers Communications (RCI), JBG Smith Properties (JBGS), Avanos (AVNS), Juniper Networks (JNPR), Commvault Systems (CVLT), Post Holdings Inc (POST), Hub Group (HUBG).

 

Developed: Gbl New (GBLN.BE; GBLB BB), Skanska (SKBF.SE; SKAB SS), Vivendi (EX@F.FR; VIV FB), Huatai Securities (HUAT.HK; 6886 HK), Alfresa (ALCH.JP; 2784 JP), Toho (TOHP.JP; 8129 JP), Scsk (SUPU.JP; 9719:JP).

 

Emerging: NONE

Globant

Posted on by Cornelio Ash

Key points:

 

  • The stock is forming the right side of a consolidation after positive Q1 FY20 results. Buy.
  • Fundamental ratings: EPS Rank 97, Composite Rating 95, SMR Rating A.
  • Technical ratings: RS Rating of 91 and A/D Rating of C+.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Corteva (CTVA), KBR (KBR), Cimpress (CMPR), Affiliated Managers (AMG), Avanos Medical (AVNS), Sysco (SYY), Forescout Technologies (FSCT), Altice USA (ATUS), Live Nation Entertainment (LYV).

 

Developed: Hoshizaki (HSZK.JP; 6465 JP), SGS SA (SGSN.CH; SGSN SW), Japan Tobacco (ABOT.JP; 2914 JP), Rubis (RUI.FR; RUI FP), Industrivarden C (IUCF.SE; INDUC SS), Carl Zeiss (AFXX.DE; AFX GR), Carrefour (CRFR.FR; CA FP), China Mobile (CHT.HK; 941 HK), Mtr (MTRC.HK; 66 HK).

 

Emerging: China Steel (CST.TW; 2002 TT), Fomento Economico Mexicano (FMU.MX; FEMSAUBD MM), Formosa Petrochemical (FPC.TW; 6505 TT). 

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.:  Nvent Electric (NVT), Sanderson Farms (SAFM), BOK Financial (BOKF), HCA Healthcare (HCA), Cloudera (CLDR), Baidu (BIDU), Ryanair Holdings Adr (RYAAY).

 

Developed: Henkel (Xet) (HENX.DE; HEN GR), Makita (ML@N.JP; 6586 JP), SGS SA (SGSN.CH; SGSN SW), Vivendi (EX@F.FR; VIV FP), Adidas (ADSX.DE; ADS GR), WH Group (HHPL.HK;288 HK), China Galaxy Securities (CGXY.HK; 6881 HK), Cochlear (COH.AU; COH AU), Carrefour (CRFR.FR; CA FP), Seven & I (SEVI.JP; 3382 JP), Sunny Optical (SOPT.HK; 2382 HK).

Coupa Software

Posted on by Cornelio Ash

Key points from this report:

 

  • Coupa provides a cloud-based business spend management platform that gives a unified view of procurement, invoicing, expense, and payment management.
  • The stock is breaking out from a 10-week consolidation on rising daily volume. Buy.
  • Business spend management is a $56B market opportunity with +100K customers.
  • The company’s platform is a comprehensive one-stop shop after the integration of Coupa Pay.
  • Fundamental ratings: EPS Rank 76, SMR Rating B, Composite Rating 99.
  • Technical ratings: RS line is trending upward, RS Rating 94, A/D Rating C.

ServiceNow

Posted on by Cornelio Ash

Key points from this report:

 

  • NOW gapped up after reporting better-than-expected Q1 FY20 results and remains buyable as the stock forms the right side of an 11-week consolidation. Buy.
  • Strong deal execution amid COVID-19. In Q1, the company signed 37 greater than $1M deals for a cumulative total of 933 (+30% y/y).
  • Fundamental ratings: EPS Rank of 97, Composite Rating of 98, SMR Rating of A.
  • Technical ratings: RS line at highs, RS Rating of 91, A/D Rating of C-.