Market Outlook and Comprehensive Company Analysis

Broker Name: Argus Research Co.

Date of Report: Wednesday, November 6, 2024

Market Outlook

The market outlook remains bullish as we dive into the latest financial trends and stock performances. With a strong equity position of 70% and a minimal cash reserve of 1%, the current market sentiment is optimistic, reflecting confidence in continued growth and profitability.

Today’s Market Movers

Significant movements have been observed in the market today:

• Stocks Soar on Trump Victory: The re-election of Trump has caused a notable increase in stock prices.
• MSTR and Crypto Plays Pop: Cryptocurrency-related stocks like MSTR have seen significant gains.
• FSLR and Solar Shares Drop: In contrast, solar energy companies like FSLR have experienced a downturn.
• SMCI Tanks on Results and Guidance: SMCI has faced a substantial decline due to disappointing results and future guidance.

Recent Research Review

Our recent research covers a wide range of companies, providing insights into their performance and potential:

• UPS
• AMT
• BIIB
• CHH
• APTV
• GPN
• CL
• PH
• UBER
• NDAQ
• SPGI
• UL
• VNT
• W
• WEN
• ZBH
• SO
• SHEL
• FIS
• TT

Statistics Diary

The following statistics provide a snapshot of the current market conditions:

• 12-Mth S&P 500 Forecast: 5000-6400
• S&P 500 Current/Next EPS: 247/265
• S&P 500 P/E: 23.41
• 12-Mth S&P P/E Range: 18.9 – 24.2
• 10-Year Yield: 4.27%
• 12-Mth 10-Yr. Bond Forecast: 3.50-4.50%
• Current Fed Funds Target: 4.87%
• 12-Mth Fed Funds Forecast: 3.50-4.50%

Current Market Performance

Here is the current performance of major indices and market segments:

Current Rankings

In terms of current rankings, the following metrics provide insights into market sentiment:

• Five-Day Put/Call: 0.78 (Positive)
• Momentum: 1011000 (Negative)
• Bullish Sentiment: 40% (Positive)
• Mutual Fund Cash: 1.80% (Negative)
• Vickers Insider Index: 4.81 (Neutral)

Trump Wins Another Term

With the conclusion of the 2024 presidential election, Trump has secured another term in office. This outcome has significant implications for the market and investor sentiment. The election year has seen democratic processes prevail in various countries, including India, Mexico, France, Great Britain, and South Africa. The stability of the U.S. election results is reassuring for investors, allowing a renewed focus on market fundamentals.

Key questions now arise regarding the direction of interest rates, the impact of new tax policies, and tariff programs on the economy. The answers to these questions will depend on the policies pursued by the new administration and the overall functioning of the country’s economic and financial cycles. The U.S. capital-allocation system remains robust, continually funneling funds into innovative industries that enhance citizens’ livelihoods.

Daily Spotlight: Stockpicker’s Corner

Cintas Corporation (NGS: CTAS) – BUY

Cintas Corporation is highlighted in our Dividend Growth model. This well-managed company has consistently outperformed the market and exhibited strong dividend growth. Cintas provides employee uniforms and workplace safety and cleaning services, continuing to generate solid post-pandemic sales growth.

As businesses prioritize employee health and workplace cleanliness, Cintas is well-positioned to benefit from the outsourcing of noncore tasks. The company’s balance sheet is clean, and management has demonstrated confidence with a double-digit dividend hike. Technically, the shares have been in a long-term bullish pattern of higher highs and higher lows since 2009. Our 12-month target price for Cintas is \$225.

Important Notice

Argus Research Co. (ARC) is an independent investment research provider. The information contained in this report is produced and copyrighted by Argus Research Co., and any unauthorized use, duplication, redistribution, or disclosure is prohibited by law. The opinions and information contained herein have been obtained from sources believed to be reliable, but Argus makes no representation as to their timeliness, accuracy, or completeness. This report is not an offer to sell or a solicitation of an offer to buy any security. Investing in any security or investment strategies discussed may not be suitable for you, and it is recommended that you consult an independent investment advisor. Investments involve risk, and an investor may incur either profits or losses. Past performance should not be taken as an indication or guarantee of future performance.

Argus officers, employees, agents, and/or affiliates may have positions in stocks discussed in this report. No Argus officers, employees, agents, and/or affiliates may serve as officers or directors of covered companies or may own more than one percent of a covered company’s stock. Clients and prospective clients should note that Argus Investors’ Counsel and Argus Research Co., as units of The Argus Research Group, have certain employees in common, including those with both research and portfolio management responsibilities. Recipients of the Research reports in Singapore should contact the Intermediary of the Research Reports in respect to any matters arising from, or in connection with, the analysis of the report.