Scalper1 News
The new IBD Tech Leaders Index looks at companies in the technology field that are highly rated using IBD’s proprietary ratings. With the current market condition being Uptrend Under Pressure, these names should be approached with higher caution, especially since they will be tied more to the performance of the Nasdaq composite. As of the April 29 list, the electronics sector stands out with a dominant representation by two industry groups making up more than 25% of the list: the scientific measurement electronics group, at No. 10 of IBD’s 197 industry groups, and the electronics parts manufacturers, at No. 23. Many of the stocks in the sector serve in support roles, so part of your analysis should include the areas of exposure for the companies. Are they focused on life sciences with exposure to the biotech industry? Biotechs had a great run in 2014, but the group has fallen considerably, with big winners like Celgene ( CELG ) and Gilead ( GILD ) topping in the summer of 2015. A company like Danaher ( DHR ) has exposure to multiple industries, with segments that serve life sciences and diagnostics vs. its segments focused on industrial technologies and petroleum businesses. Danaher will make the analysis a little easier when they complete a tax-free spinoff in the third quarter of 2016. The company retaining the Danaher name will keep the life science exposure and the new spinoff, named Fortive, will take the industrial side. What about the exposure to foreign markets? Bruker ( BRKR ) not only has strong links to the life sciences and pharmaceutical research but also, according to the company website, 80% of its revenue comes from outside the U.S. As the first-quarter earnings season has unfolded, companies have often pointed to currency headwinds created by a strong dollar as being the culprit behind soft earnings. Scalper1 News
Scalper1 News