YWR: Global Factor Model
It’s Global Factor Day. The day we go through the data and look for emerging trends.
We go through the data and I give my insights on:
the top 20 ranked stocks (what’s going on with Solvay?).
the increasing dominance of one particular sector in the rankings and the positive signals from two of the others.
the stealth bull market in Japanese utilities
The top 5 ranked countries in the world and why there might be a New Europe.
At the bottom you have links to:
all the rankings and data on 3,600 stocks
the YWR Tableau dashboard with industry level rankings.
Let’s get going.
Top 20 Ranked Stocks January 2024
Solvay is new and worth checking out. They just completed a spin-off and split the company into essential chemicals and specialty chemicals.
This appears to result in a large EPS revision for the remaining essential chemicals business. The estimated dividend yield is 8% and the stock has broken out of a multi-year range. Apparently, the business is much more profitable and cash generative without specialty chemicals.
Also on the Top 20 are Turkish and European banks. We have discussed before why they go higher (What do you do with EUR 250 billion?).
Eurazeo the French private equity firm.
Harmony Gold the South African gold miner with lots of operating leverage and optionality from the Wafi-Golpu project in Indonesia (which nobody gives any value to despite it moving ahead).
Hankook Tires. We’ve discussed the bull case on tires at the end of ‘What’s so Interesting about Autos?’.