Weekly Investor – April 15, 2013
A Positive Week
Market Summary:
The U.S. equity markets all posted positive returns last week. In fact, the S&P 500® Index had its second best performing week of 2013, posting a 2.3% return. Investors eagerly listened to earnings announcements and for the most part, they were not disappointed. Monday and Tuesday both brought positive returns but Wednesday’s rally in health care, technology and financials helped push markets higher. Within the health care sector, Gilead Sciences (GILD) posted a 9.6% return for the quarter. Additionally, on Thursday, U.S. initial jobless claims came in at 346K, which was lower than the expected 360K. Markets declined on Friday as retail sales and consumer sentiment data both declined. However, markets remained positive and investors prepare to digest another round of corporate earnings calls this week.
The S&P 500® up 2.3% for the week. The top-performing sectors in the S&P 500® Index included Consumer Discretionary (3.4%) and Health Care (3.3%), while bottom-performing sectors included Basic Materials (1.1%) and Energy (0.9%). In the fixed-income market, the 10-year Treasury yield closed even for the week at 1.7%.
We continue to seek those companies possessing identifiable catalysts, and focusing on those stocks with favorable odds.
Upside Potential
Urban Outfitters Inc. (URBN) operates lifestyle specialty retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brand names in the United States, Canada, and Europe. The company was founded in 1970 and is based in Philadelphia, Pennsylvania.
URBN is currently in the middle of a turnaround effort across its brands and has a new management team in place. Argent’s data points have provided positive feedback regarding the progress of the turnaround effort and early signs of success have been encouraging. In addition, we believe URBN presently offers investors one of the highest growth profiles within the retail space at an attractive valuation. We believe these recent developments present favorable odds for shares of URBN to outperform its peers and the market.
Top 10 Equity Holdings
| . | |
|---|---|
| Google, Inc. | 5.1% |
| Lowes Cos. | 4.3% |
| CBS Corp | 4.3% |
| Allstate | 4.2% |
| Gilead Sciences | 4.2% |
| Danaher Corp. | 3.8% |
| Qualcomm Inc. | 3.7% |
| Procter & Gamble | 3.6% |
| SunTrust Banks, Inc. | 3.6% |
| Oracle Corp. | 3.5% |
U.S. Equity Indices
| Index | 04/12/13 | Week % Chg | YTD % Chg |
|---|---|---|---|
| DJIA | 14,865.1 | 2.1% | 13.4% |
| NASDAQ | 3,294.9 | 2.8% | 9.1% |
| S&P 500 | 1,588.9 | 2.3% | 11.4% |
| Russell 1000 G | 725.8 | 2.5% | 10.3% |
U.S. Credit Rates
| Index | 04/12/13 | 04/05/13 | 12/31/12 |
|---|---|---|---|
| 3 Month T-Bill | 0.1% | 0.1% | 0.1% |
| 5 Year T-Note | 0.7% | 0.% | 0.8% |
| 10 Year T-Note | 1.7% | 1.7% | 1.8% |
| 30 Year T-Bond | 2.9% | 2.9% | 3.0% |
| Prime Rate | 3.3% | 3.3% | 3.3% |
This newsletter presents selected recommendations from portfolio managers of Argent Capital Management LLC, a registered investment advisor. Opinions reflect the portfolio manager’s judgment on the date above and are subject to change. A list of stocks recommended by Argent is available upon request. You should not assume that these recommendations are or will be profitable. In the course of it’s business, Argent’s client accounts may be buying and selling these stocks.
