Category Archives: News

Tematica Research Cleaner Living Index cleans up in 3Q 2019

Tematica Research Cleaner Living Index cleans up in 3Q 2019

 

Last week we closed out the month of September, shutting the books on the third quarter and began the final quarter’s march toward the end of 2019. While US stocks rebounded in September, the quarter in full was still a mixed one, as evidenced by a 1.2% rise in both the S&P 500 and the Dow Jones Industrial Average, versus the Nasdaq Composite Index and the Russell 2000 index that each finished the third quarter in the red. By comparison, the Tematica Research Cleaner Living Index (CLRN) soared 5.1% during the September quarter following its 4.0% move higher just in the month of September.

 

 

The Tematica Research Cleaner Living Index focuses on those companies poised to benefit from the growing demand for items that are better for you and the planet. The outperformance of the index during the last month of the quarter was led by double-digit moves in eight of the index’s 48 active constituents, including the more than 40% rebound in both Fresh Del Monte Produce (FDP) and Tenneco (TEN) shares, and the more than 24% climb in WW (WW) shares. The move in WW shares finished off a September quarter climb that totaled 95.5% in total, leaving them as the best performing constituent during the quarter. Rounding out the top three performers for the September quarter were Fresh Del Monte Produce, and SolarEdge Technologies (RUN), both of which climbed more than 30% during that 90-day period.

It will come as no surprise when we say the September quarter was filled with a lot of drama. It began with signs of the global economy slowing further, continued with more “two steps forward and one step back” on US-China trade talks, and ended with the impeachment inquiry winding through Washington that could stall any legislative efforts to be had by the current administration. More recently, September data published by ISM and IHS Markit have reignited global growth concerns, and the continued protests in Hong Kong have raised doubts over luxury good sales during the quarter.

All of this sets the stage for what is likely to be a tenuous, if not volatile, September quarter earnings season. Adding wood to that fire are recent earnings reports from FedEx (FDX), US Steel (X), HB Fuller (FUL), Actuant Corp. (ATU), and Landec (LNDC) that included weaker than expected guidance and we are also starting to see negative earnings pre-announcements like those from AXT Inc. (AXTI) and GoPro (GPRO) rear their head.

Taking all of those factors in full, we’ve seen year over year 2019 EPS expectations for the S&P 500 group of companies fall to just 1.8% currently, down from roughly 10% this time last year per data from FactSet. By comparison, the constituents for the Cleaner Living Index are expected to deliver EPS growth of 3.7% in 2019, led by Fresh Del Monte Produce, Brookfield Renewable Partners (BEP)Atlantica Yield (AY)Sanderson Farms (SAFM) and TerraForm Power (TERP).

We’ll also be watching with an eye toward 2020 as investors begin to focus on earnings growth prospects for the coming year and companies begin to gingerly share initial expectations that will shape 2020 forecasts. Based on current 2020 EPS expectations for the Cleaner Living Index constituents, in aggregate, the group is projected to deliver year over year EPS growth of 36.0%, far and above the 10.3% growth forecast for the S&P 500, again per FactSet data. Of the 48 Cleaner Living constituents, 2020 EPS expectations that are likely to have the greatest influence on year over year growth are Tesla (TSLA) and Freshpet (FRPT) as they go from generating bottom line losses to positive EPS as well as TPI Composites (TPIC) and NextEra Energy Partners (NEP).

Thematic Reads: Week of October 7, 2019

Thematic Reads: Week of October 7, 2019

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

Aging of the Population
The global demographic shift towards a more senior population


Cleaner Living
Growing demand for items that claim to be better for you and the planet:


Digital Infrastructure
The Buildout and upgrading of our Networks, Data Storage Facilities, and Equipment


Disruptive Innovators
Business models designed to transform an entire industry and leap-frog over incumbents.


Digital Lifestyle
The increasingly digital landscape that now underpins the entire consumer experience.


Guilty Pleasures

The products and services people will consume no matter the economic environment.


Living the Life

Those things that bridge the gap between want and ability at every socioeconomic level.


Middle-Class Squeeze

Consumers trading down when and where possible or looking to stretch the disposable dollars they do have.


New Global Middle Class

Areas around the world where rising disposable incomes are driving demand for a host of products and services.


Safety & Security

Reflecting the evolving needs across individual, cyber, corporate and homeland security.



What Else We Are Loving

Other reads, experiences, products, services and the like that we enjoyed so much this past week we just had to share

  • As the days get shorter and the nights cooler, we’re enjoying this Crystal-Clear Ice Ball Maker along with certain aspects of our Guilty Pleasure investment theme.
Trade and Impeachment Uncertainty Returns

Trade and Impeachment Uncertainty Returns

Today’s Big Picture

US equity futures point to a drop at the open and are being driven by two-weekend news items. First, on the impeachment front, a second whistleblower has come forward claiming first-hand knowledge of the allegations against President Trump. Second, reports are indicating Chinese officials are reluctant to agree to a broad trade deal as aimed for by President Trump and would likely exclude the reformation of Chinese industrial policy and government subsidies, two topics of longstanding U.S. complaints. 

This combination along with weak economic data out of Europe this morning is adding a fresh dose of uncertainty back into the market following Friday’s supposed Goldilocks September Employment Report, and raises questions…

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All Eyes On The September Jobs Report

All Eyes On The September Jobs Report

Today’s Big Picture

US market futures point to a modestly lower open Friday morning. After the disappointing manufacturing and services data this week, all eyes will be on today’s Nonfarm Payrolls report, which is expected to see 145,000 jobs added in September, up from 130,000 in August with the unemployment rate holding at 3.7% and wages gaining +0.2%. Keep in mind that the General Motors (GM) strike will add some confusion to the data as striking workers aren’t counted in payrolls.

We’ll also be looking for any updates on the previous downward revisions to payrolls. In August the BLS cut job gain estimates for 2018 and early 2019 by about 500,000, the largest such downward revision in the past decade. Overall we’ve seen downward revisions for around 17 months – a sure sign that labor market dynamics ...

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Negative earnings  pre-announcements and services data take center stage

Negative earnings pre-announcements and services data take center stage

Today’s Big Picture

Barring any new developments on the trade wars or impeachment inquiry front, investors are focused on the release of September services data for the US and Europe. Has the weakness in manufacturing around the world expanded has into services?

Stocks in Asia again were in the red today on news that the US will be imposing additional tariffs on European Union goods by mid-October. Markets in China and South Korea are closed today for holidays. Japan’s Nikkei 225 lost over 2% as did Australia’s S&P/ASX 200. European equity markets are…

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Thematic Reads: Week of September 30, 2019

Thematic Reads: Week of September 30, 2019

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

Aging of the Population
The global demographic shift towards a more senior population


Cleaner Living
Growing demand for items that claim to be better for you and the planet:


Digital Infrastructure
The Buildout and upgrading of our Networks, Data Storage Facilities, and Equipment


Disruptive Innovators
Business models designed to transform an entire industry and leap-frog over incumbents.


Digital Lifestyle
The increasingly digital landscape that now underpins the entire consumer experience.


Guilty Pleasures

The products and services people will consume no matter the economic environment.


Living the Life

Those things that bridge the gap between want and ability at every socioeconomic level.


Middle-Class Squeeze

Consumers trading down when and where possible or looking to stretch the disposable dollars they do have.


New Global Middle Class

Areas around the world where rising disposable incomes are driving demand for a host of products and services.


Safety & Security

Reflecting the evolving needs across individual, cyber, corporate and homeland security.


What Else We Are Loving

Other reads, experiences, products, services and the like that we enjoyed so much this past week we just had to share

Everything You Need To Know About The Markets Today

Everything You Need To Know About The Markets Today

Markets in Asia struggled today to get any traction following yesterday’s lackluster markets in the US and the weakening data coming out of Europe. The European equity markets are mostly in the green (albeit only slightly) with the exception of the FTSE 100 which is slightly down as of mid-day trading.

The beleaguered Hong Kong stock exchange got a shot in the arm today as the initial public offering of AB InBev’s Asia Pacific business – Budweiser Brewing Company APAC Ltd (1876.HK) – raised $5 billion, the second largest IPO of the year behind Uber’s (UBER) $8.1 billion in May. The company had initially looked to raise closer to $10 billion two months ago but was forced to put the IPO on hold after investors balked at the price. That seems to be a growing trend these days.

Major events for the day will be… READ MORE HERE

Thematic Reads: Week of September 23, 2019

Thematic Reads: Week of September 23, 2019

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

Aging of the Population
The global demographic shift towards a more senior population


Cleaner Living
Growing demand for items that claim to be better for you and the planet:


Digital Infrastructure
The Buildout and upgrading of our Networks, Data Storage Facilities and Equipment


Disruptive Innovators
Business models designed to transform an entire industry and leap-frog over incumbents.


Digital Lifestyle
The increasingly digital landscape that now underpins the entire consumer experience.

 


Guilty Pleasures

The products and services people will consume no matter the economic environment.


Living the Life

Those things that bridge the gap between want and ability at every socioeconomic level.


Middle-Class Squeeze

Consumers trading down when and where possible or looking to stretch the disposable dollars they do have.


New Global Middle Class

Areas around the world where rising disposable incomes are driving demand for a host of products and services.


Safety & Security

Reflecting the evolving needs across individual, cyber, corporate and homeland security.


What Else We Are Loving

Other reads, experiences, products, services and the like that we enjoyed so much this past week we just had to share

Thematic Reads: Week of September 16, 2019

Thematic Reads: Week of September 16, 2019

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

Aging of the Population
The global demographic shift towards a more senior population


Cleaner Living
Growing demand for items that claim to be better for you and the planet:


Digital Infrastructure
The Buildout and upgrading of our Networks, Data Storage Facilities and Equipment


Disruptive Innovators
Business models designed to transform an entire industry and leap-frog over incumbents.


Digital Lifestyle
The increasingly digital landscape that now underpins the entire consumer experience.


Guilty Pleasures

The products and services people will consume no matter the economic environment.


Living the Life

Those things that bridge the gap between want and ability at every socioeconomic level.


MiddleClass Squeeze

Consumers trading down when and where possible or looking to stretch the disposable dollars they do have.


Safety & Security

Reflecting the evolving needs across individual, cyber, corporate and homeland security.


What Else We Are Loving

Other reads, experiences, products, services and the like that we enjoyed so much this past week we just had to share