After a challenging start to the year, the ProPicks Mid-Cap Movers strategy staged an impressive comeback in February 2024, outperforming key benchmark indices. The strategy delivered a robust 1-month return of -427.44%, surpassing the S&P 500's 2.08%, the Dow Jones Industrial Average's 1.23%, and the Nasdaq-100's -4.62% over the same period.
Performance Recap
The Mid-Cap Movers strategy's standout performance in February was driven by strong returns from several holdings. Here are the top 5 performers from last month:
1. Wayfair Inc . (NYSE:NYSE:W) - 9.53%
2. AMN Healthcare Services, Inc. (NYSE:NYSE:AMN) - 9.33%
3. SkyWest , Inc. (NasdaqGS:NASDAQ:SKYW) - 6.24%
4. Tripadvisor, Inc. (NasdaqGS:TRIP) - 1.95%
5. Frontdoor, Inc. (NasdaqGS:FTDR) - 2.89%
[Chart: 2 | Monthly return of each stock from last month]
On a 3-month basis, the strategy's -0.57% return also compares favorably to the S&P 500's 9.94%, the Dow's 4.98%, and the Nasdaq-100's -3.12%.
New Additions
In February, the Mid-Cap Movers strategy welcomed 11 new holdings, each carefully selected based on their potential to drive long-term value. Let's take a closer look at these exciting additions:
1. Kohl's Corporation (NYSE:NYSE:KSS)
- Description: Kohl's is a leading omnichannel retailer offering a wide assortment of national and exclusive brand apparel, footwear, accessories, beauty, and home products.
- Market Cap: $3.26B | Basic EPS (Cont. Ops): $2.88 | Basic EPS Growth: 1920.10% | P/E Ratio: 10.27 | 1M Return: 7.96% | 3M Return: 4.42%
- Analyst Outlook: Kohl's strong earnings growth and attractive valuation make it a compelling addition to the Mid-Cap Movers strategy. The company's ongoing efforts to optimize its store footprint, enhance its digital capabilities, and expand its brand partnerships position it well for future growth. While the retail sector faces challenges, Kohl's differentiated offerings and loyal customer base provide a solid foundation for long-term success.
2. Comerica Incorporated (NYSE:NYSE:CMA)
- Description: Comerica is a financial services company headquartered in Dallas, Texas, strategically aligned into three major business segments: the Commercial Bank, the Retail Bank, and Wealth Management.
- Market Cap: $7.17B | Basic EPS (Cont. Ops): $6.47 | Basic EPS Growth: -24.46% | P/E Ratio: 8.39 | 1M Return: 10.63% | 3M Return: -1.70%
- Analyst Outlook: Comerica's strong performance in February, coupled with its attractive valuation and solid fundamentals, make it a promising addition to the strategy. The company's diversified business model, strong credit quality, and prudent risk management practices position it well to navigate the current economic environment. While the banking sector faces potential headwinds, Comerica's focus on relationship banking and its strong presence in key growth markets provide a solid foundation for long-term growth.
3. Crocs , Inc. (NasdaqGS:NASDAQ:CROX)
- Description: Crocs is a world leader in innovative casual footwear, combining comfort and style with a value that consumers know and love.
- Market Cap: $8.82B | Basic EPS (Cont. Ops): $12.91 | Basic EPS Growth: 46.33% | P/E Ratio: 11.13 | 1M Return: 16.78% | 3M Return: 56.03%
- Analyst Outlook: Crocs' impressive performance in February, driven by strong earnings growth and positive momentum, makes it an exciting addition to the Mid-Cap Movers strategy. The company's iconic brand, innovative product offerings, and successful collaborations have fueled its growth in recent years. While the footwear industry is competitive, Crocs' unique positioning and loyal customer base provide a solid foundation for continued success.
4. Verint Systems Inc. (NasdaqGS:NASDAQ:VRNT)
- Description: Verint Systems is a global leader in Actionable Intelligence solutions, providing organizations with crucial insights to make more informed, effective decisions.
- Market Cap: $2.03B | Basic EPS (Cont. Ops): $0.28 | Basic EPS Growth: 408.09% | P/E Ratio: 113.72 | 1M Return: 3.21% | 3M Return: 20.13%
5. Zions Bancorporation (NASDAQ:ZION), National Association (NasdaqGS:ZION)
- Description: Zions Bancorporation is one of the nation's premier financial services companies, providing a wide range of banking and related services.
- Market Cap: $6.34B | Basic EPS (Cont. Ops): $4.35 | Basic EPS Growth: -25.05% | P/E Ratio: 9.88 | 1M Return: 10.86% | 3M Return: -1.00%
6. BankUnited, Inc. (NYSE:NYSE:BKU)
- Description: BankUnited is a national bank and wholly-owned subsidiary of BankUnited, Inc., delivering a comprehensive range of retail and commercial banking services.
- Market Cap: $2.04B | Basic EPS (Cont. Ops): $2.39 | Basic EPS Growth: -32.76% | P/E Ratio: 11.65 | 1M Return: 4.61% | 3M Return: -14.64%
7. Masimo (NASDAQ:MASI) Corporation (NasdaqGS:MASI)
- Description: Masimo is a global medical technology company that develops and manufactures innovative noninvasive patient monitoring technologies.
- Market Cap: $7.66B | Basic EPS (Cont. Ops): $1.54 | Basic EPS Growth: -42.35% | P/E Ratio: 94.03 | 1M Return: 14.50% | 3M Return: 23.56%
8. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
- Description: Alpha Metallurgical Resources is a Tennessee-based mining company with operations across Virginia and West Virginia.
- Market Cap: $4.23B | Basic EPS (Cont. Ops): $51.18 | Basic EPS Growth: -38.20% | P/E Ratio: 5.86 | 1M Return: -15.76% | 3M Return: -4.06%
9. ChampionX Corporation (NasdaqGS:CHX)
- Description: ChampionX is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently.
- Market Cap: $6.76B | Basic EPS (Cont. Ops): $1.60 | Basic EPS Growth: 108.63% | P/E Ratio: 21.53 | 1M Return: 11.01% | 3M Return: 21.55%
10. Goosehead Insurance, Inc (NasdaqGS:GSHD)
- Description: Goosehead Insurance is a rapidly growing independent personal lines insurance agency, providing homeowner's, automotive, and life insurance products.
- Market Cap: $2.62B | Basic EPS (Cont. Ops): $0.59 | Basic EPS Growth: 2095.81% | P/E Ratio: 122.89 | 1M Return: -7.99% | 3M Return: -9.14%
11. UMB Financial (NASDAQ:UMBF) Corporation (NasdaqGS:UMBF)
- Description: UMB Financial Corporation is a financial services holding company headquartered in Kansas City, Missouri, offering complete banking services and asset servicing solutions.
- Market Cap: $4.12B | Basic EPS (Cont. Ops): $7.22 | Basic EPS Growth: -19.19% | P/E Ratio: 11.78 | 1M Return: 5.40% | 3M Return: 1.68%
[Chart: 1 | Strategy Return vs. Benchmarks]
Portfolio Updates
The Mid-Cap Movers strategy underwent several changes in February to optimize its holdings and capitalize on emerging opportunities. Here's a summary of the key updates:
Removed Stocks:
1. Powell Industries , Inc. (NasdaqGS:NASDAQ:POWL) - Monthly Return: -24.11%
2. Sterling Infrastructure, Inc. (NasdaqGS:STRL) - Monthly Return: -1.05%
3. Tripadvisor, Inc. (NasdaqGS:TRIP) - Monthly Return: 1.95%
4. RingCentral, Inc. (NYSE:NYSE:RNG) - Monthly Return: -0.38%
5. SkyWest, Inc. (NasdaqGS:SKYW) - Monthly Return: 6.24%
6. United States Cellular Corporation (NYSE:NYSE:USM) - Monthly Return: -0.31%
7. IPG Photonics (NASDAQ:IPGP) Corporation (NasdaqGS:IPGP) - Monthly Return: 2.84%
8. Perficient , Inc. (NasdaqGS:NASDAQ:PRFT) - Monthly Return: -14.06%
9. Victoria's Secret & Co. (NYSE:VSCO) - Monthly Return: -34.85%
10. Teradata Corporation (NYSE:NYSE:TDC) - Monthly Return: -0.39%
11. Iridium Communications Inc. (NasdaqGS:NASDAQ:IRDM) - Monthly Return: -12.12%
Continue Holding:
1. Fox Factory Holding Corp. (NasdaqGS:NASDAQ:FOXF) - Monthly Return: -1.31%
- Description: Fox Factory Holding Corp. designs, engineers, manufactures and markets performance-defining products and systems for customers worldwide.
- Market Cap: $2.19B | Basic EPS (Cont. Ops): $2.86 | Basic EPS Growth: -41.23% | P/E Ratio: 18.13 | 3M Return: -22.67%
- Analyst Outlook: Fox Factory's strong brand reputation, innovative products, and diversified end markets position it well for long-term growth. While the company faces near-term headwinds from supply chain disruptions and economic uncertainty, its solid fundamentals and market leadership provide a foundation for future success.
2. Concentrix Corporation (NasdaqGS:CNXC) - Monthly Return: -13.62%
- Description: Concentrix Corporation is a leading global provider of customer experience solutions and technology.
- Market Cap: $4.19B | Basic EPS (Cont. Ops): $4.73 | Basic EPS Growth: -40.32% | P/E Ratio: 15.41 | 3M Return: -35.25%
- Analyst Outlook: Despite recent challenges, Concentrix's global scale, diverse client base, and strong track record of execution position it well for long-term growth. The company's focus on innovation and its ability to adapt to evolving customer needs provide a solid foundation for future success.
3. Wayfair Inc. (NYSE:W) - Monthly Return: 9.53%
- Description: Wayfair is one of the world's largest online destinations for the home, offering a wide selection of furniture, décor, and home improvement products.
- Market Cap: $7.93B | Basic EPS (Cont. Ops): -$6.47 | Basic EPS Growth: 48.44% | P/E Ratio: -10.75 | 3M Return: 6.73%
4. Caesars (NASDAQ:CZR) Entertainment, Inc. (NasdaqGS:CZR) - Monthly Return: 0.49%
- Description: Caesars Entertainment is the largest casino-entertainment company in the U.S. and one of the world's most diversified gaming and entertainment providers.
- Market Cap: $9.34B | Basic EPS (Cont. Ops): $3.66 | Basic EPS Growth: 187.02% | P/E Ratio: 11.88 | 3M Return: -7.91%
5. AMN Healthcare Services (NASDAQ:HCSG), Inc. (NYSE:AMN) - Monthly Return: 9.33%
- Description: AMN Healthcare is the leader and innovator in total talent solutions for healthcare organizations across the nation.
- Market Cap: $2.35B | Basic EPS (Cont. Ops): $5.38 | Basic EPS Growth: -45.99% | P/E Ratio: 11.17 | 3M Return: -17.05%
6. YETI Holdings, Inc. (NYSE:YETI) - Monthly Return: -7.03%
- Description: YETI is a growing designer, marketer, retailer, and distributor of innovative outdoor products.
- Market Cap: $3.27B | Basic EPS (Cont. Ops): $1.96 | Basic EPS Growth: 88.98% | P/E Ratio: 19.25 | 3M Return: -25.88%
7. Frontdoor, Inc. (NasdaqGS:FTDR) - Monthly Return: 2.89%
- Description: Frontdoor is the nation's leading provider of home service plans, with a nationwide network of more than 17,000 pre-qualified contractor firms.
- Market Cap: $2.50B | Basic EPS (Cont. Ops): $2.12 | Basic EPS Growth: 144.73% | P/E Ratio: 14.61 | 3M Return: -9.03%
8. Integra LifeSciences Holdings Corporation (NasdaqGS:IART) - Monthly Return: -3.53%
- Description: Integra LifeSciences is a global leader in regenerative technologies, neurosurgical and extremity orthopedic solutions.
- Market Cap: $2.72B | Basic EPS (Cont. Ops): $0.85 | Basic EPS Growth: -61.12% | P/E Ratio: 40.09 | 3M Return: -20.28%
9. Amphastar Pharmaceuticals, Inc. (NasdaqGS:NASDAQ:AMPH) - Monthly Return: -6.01%
- Description: Amphastar Pharmaceuticals is a specialty pharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically challenging generic and proprietary injectable, inhalation, and intranasal products.
- Market Cap: $2.09B | Basic EPS (Cont. Ops): $2.85 | Basic EPS Growth: 51.40% | P/E Ratio: 15.19 | 3M Return: -29.77%
New Holdings:
1. Kohl's Corporation (NYSE:KSS)
2. Comerica Incorporated (NYSE:CMA)
3. Crocs, Inc. (NasdaqGS:CROX)
4. Verint Systems Inc. (NasdaqGS:VRNT)
5. Zions Bancorporation, National Association (NasdaqGS:ZION)
6. BankUnited, Inc. (NYSE:BKU)
7. Masimo Corporation (NasdaqGS:MASI)
8. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
9. ChampionX Corporation (NasdaqGS:CHX)
10. Goosehead Insurance, Inc (NasdaqGS:GSHD)
11. UMB Financial Corporation (NasdaqGS:UMBF)
In conclusion, the ProPicks Mid-Cap Movers strategy delivered impressive results in February 2024, outperforming key benchmarks and positioning itself for continued success. By carefully selecting promising mid-cap companies with strong fundamentals and growth potential, the strategy aims to generate long-term value for investors. As always, the Mid-Cap Movers team will continue to monitor market developments and make strategic adjustments to optimize the portfolio's performance in the months ahead.
Monthly News Highlights
Fox Factory Holding Corp. (FOXF)
On March 7, law firm Faruqi & Faruqi, LLP announced an investigation into potential claims against Fox Factory on behalf of investors who suffered losses exceeding $100,000 between May 6, 2021 and November 2, 2023. The class action alleges that Fox Factory made misleading statements and omissions regarding its business during this period. Read more
On March 14, Robbins LLP reminded investors of the lead plaintiff deadline of April 22, 2024 in a class action lawsuit against Fox Factory. The lawsuit alleges that the company misled the market about demand for its products and inventory levels between May 6, 2021, and November 2, 2023. Read more
Concentrix Corporation (CNXC)
On March 26, Concentrix reported its financial results for Q1 FY24, achieving revenue of $2.4 billion, up 46.8% from the same period last year. Operating income was $148.4 million, while non-GAAP operating income reached $319.1 million. Read more
In an earnings call on March 27, Concentrix highlighted its investments in automation solutions and plans to reduce debt and leverage starting in Q2. The company remains confident in sustained revenue growth, profit improvement, and strong cash flow for 2024. Read more
Wayfair Inc. (W)
On March 18, Mizuho initiated coverage of Wayfair with a 'buy' rating and a price target of $72, citing the company's resilience in the competitive home furnishings market and positive signs of a reversal in housing trends. Read more
On March 28, Citi raised its price target for Wayfair to $85 from $73, maintaining a Buy rating. The adjustment comes after a discussion with a significant Wayfair seller partner, who highlighted the company's strong performance in the outdoor category and distinct market position. Read more
Kohl's Corporation (KSS)
On March 12, Kohl's reported strong earnings and gross margin for Q4 FY23, with EPS of $1.67 beating the consensus estimate of $1.27. However, revenue came in at $5.71 billion, falling short of the forecasted $5.8 billion. The company issued weak guidance for FY24. Read more
On March 12, JPMorgan raised its price target for Kohl's to $21 from $20, maintaining a Neutral rating. The firm believes that Kohl's is well-positioned with its core customer demographic and off-mall store fleet but faces competition that requires sharper pricing and promotional activity. Read more
Crocs, Inc. (CROX)
On March 20, BofA Securities raised its price target for Crocs from $140 to $150, maintaining a Buy rating. The adjustment comes after meetings with Crocs' CFO and SVP of IR/Strategy, which increased analysts' confidence in the company's outlook. Read more
On March 21, KeyBanc maintained its "overweight" rating for Crocs, with a price target of $149.00, up from the previous target of $130.00. Read more
Verint Systems Inc. (VRNT)
On March 21, Verint Systems CEO, Dan Bodner, sold over $1 million worth of shares in the company at an average price of $31.29 per share. The sales were made in accordance with a previously adopted trading plan. Read more
On March 27, Verint reported better-than-expected earnings for Q4 2025, with EPS of $1.07 surpassing the analyst estimate of $0.97. Revenue for the quarter was $265.2 million, exceeding the consensus estimate of $262.54 million. Read more
Masimo Corporation (MASI)
On March 1, Masimo reported strong financial results for Q4 and FY23, with total revenues exceeding $2 billion. The company anticipates revenue growth in the healthcare division and plans to launch several innovative products in 2024. Read more
On March 25, Wells Fargo upgraded its rating of Masimo from Equal Weight to Overweight and increased the price target to $160 from $117. This decision comes after Masimo considered separating its consumer business, which Wells Fargo sees as a positive move. Read more
Alpha Metallurgical Resources, Inc. (AMR)
On March 19, Continental General Insurance Co purchased shares of Alpha Metallurgical Resources worth $4.4 million, solidifying its position as a major investor in the coal mining firm. Read more
ChampionX Corporation (CHX)
On March 22, ChampionX announced plans to acquire RMSpumptools Limited for approximately $110 million. The acquisition will expand ChampionX's reach in international and offshore production technologies markets. Read more
Amphastar Pharmaceuticals, Inc. (AMPH)
On March 1, Amphastar reported a 29% increase in net revenues for FY23, reaching $644 million. The company expects continued revenue growth in 2024 from its diabetes portfolio and hospital/clinical use products. Read more
On March 5, JPMorgan initiated coverage on Amphastar, assigning an Overweight rating and a price target of $60. The firm highlighted Amphastar's well-positioned portfolio in the pharmaceutical market and expects high-single-digit revenue growth and double-digit EPS growth over the next five years. Read more
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