To The Moon

Hi Tigers, welcome to ”What the Tigers Say” [Cool]

This is a weekly column planned to share the great opinion from Tigers on ‘Besides Big Techs, Special Opportunities from Q1 Earnings’.

$Bed Bath & Beyond(BBBY)$ 's bankruptcy and $First Republic Bank(FRC)$ deposits drop of 41% has brought fear to the market. Benefiting from AI, can Big Tech's earnings revive the stock market rally? What other sectors and companies are reporting earnings that are exceeding expectations?

• In this earnings season, what other sectors/industries have you followed that earnings outperformed, in addition to a few technology stocks?

Please join us to share your opinions on this post.

Below are some insights from Tigers @NAI500, @TechnicalHunter and @ShenGuang. Which opinions do you agree with？

🎁Special Notes: Whoever showed on the” What the Tigers say” column will receive 100 Tiger Coins and an exclusive interview invitation to honor of your contribution.

Click titles to read the full analysis:

1. @NAI500: Earnings and data-intensive releases, 2 homebuilder stocks opportunities coming?

Key Points:

• Overall, total building permits fell 8.8% to an annualized 1.413 million units in March. Clearly, the weak rental market has impacted multi-family housing starts and building permits.

• Donald R. Horton, chairman of $D.R. Horton(DHI)$, said that despite rising mortgage rates and inflationary pressures, demand picked up this quarter thanks to seasonal factors as well as stimulus measures and pricing adjustments. In addition, while high interest rates and economic uncertainty will persist for some time, the supply of affordable new and existing homes remains limited, while demographics remain supportive of housing demand.

• $PulteGroup(PHM)$ announced today that its Board of Directors has approved a $1.0 billion increase to the Company’s share repurchase authorization. This increase brings the Company’s total share repurchase authorization to $1.2 billion. Over the past decade, PulteGroup has returned over $6 billion to its shareholders through the payment of dividends and share repurchases.

2. @TechnicalHunter: Technology Stocks Going to Fall? Are These 5 Reasons Enough?

Key Points:

• $Cboe Volatility Index(VIX)$ rose 11% on Tuesday, and the CNN Fear and Greed Index shows bullish sentiment is on the rise. Generally speaking, bulls want to see negative or neutral sentiment so that the market can climb over the so-called "wall of worry."

• Medical stocks outperformed the market: When the medical sector performs strongly, it often reflects the market's "risk aversion" tendency. While tech stocks have lagged recently, healthcare-related stocks like $DexCom(DXCM)$ , $Merck(MRK)$ , and $Intuitive Surgical(ISRG)$ have outperformed the market by a wide margin.

• Although the medium-term trend of technology stocks is still upward, there are some subtle signs under the surface that this sector may have a short-term pullback demand. Investors should make certain adjustments to their portfolios accordingly, and once the technology stocks collectively decline after the large-cap technology stock earnings report this week, you can have enough funds to cover positions.

3. @ShenGuang: Banks Down, Big Tech Up?

Key Points:

• Broadly, while the banking sector's prospects were imputed with bearish expectations by analysts, big banks did marginally better while smaller banks generally didn't. Now, classical market empiricism suggests that while the consumer discretionary sector is supposed to be attractive in a recessionary period, financials tend to hold firm. Classical market empirics no longer hold true.

• The preponderance of Big Tech in the Top 25 - and its relative impact on the economic bellwether - has been increasing over the past years. "Technology" had gone from comprising a little under 15% of the S&P 500 to nearly a third.

• This lends strength to the notion that flows into large-cap stocks are informing market trajectories more than the rest of the market itself. Also, given that government debt exposure remains a niche interest, this flow is also driven by limited access to viable alternatives. In other words, a significant portion of these flows follow a form of self-preservation which becomes a self-fulfilling prophecy: as their valuations fall, smaller companies will find it increasingly harder to secure financing and challenge the status quo. One means of growth would be to collaborate/enjoin with the top-of-the-line which further biases survivability.

Questions for you:

In this earnings season, what other sectors/industries have you followed that earnings outperformed, in addition to a few technology stocks?

🎁Comment to win Prizes

• 🐯 All valid comments on the following post will receive 5 Tiger Coins.

• 🐯 The First 10 and Last 10 Commentators with qualified comments will receive another 10 Tiger Coins.

• 🐯 TOP 5 high-quality comments will receive Another 20 Tiger Coins.

⏰Duration

• 5 May (24pm EDT)