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News & Our Thinking

Weekly Investor

Weekly Investor – March 1, 2021

01 March 2021

Powell Downplay Inflation Concerns

The S&P 500® Index fell 2.4% last week. The decline was broad based, with only one sector registering a gain. Leading the index down were Utilities, the Consumer Discretionary and Information Technology sectors. Treasury yields, or the interest rate on U.S. Treasury bonds, continued to rise, resulting in volatility across the stock market. Federal Reserve Chairman Jerome Powell testified before Congress, pledging to retain a supportive monetary policy and downplaying inflation concerns. Evidence of reflation and economic improvement continued during the week. U.S. initial jobless claims were much lower than consensus estimates. Crude oil rose 3.8%. The climb in oil prices pushed the Energy sector into positive territory for the week, the only sector to register a gain.

The best stock in the S&P 500 Index last week was Royal Caribbean Group, rising 18.3%. News of the Johnson & Johnson vaccine helped boost travel and leisure stocks, such as cruise lines and airlines. Companies expected to announce earnings this week include AutoZone, Inc., Broadcom Inc., Brown-Forman Corporation, Costco Wholesale Corporation, The Kroger Co., Ross Stores, Inc., Target Corporation and many more.

The S&P 500 Index was down 2.4% for the week. Its top-performing sectors were Energy (4.3%) and Financials (-0.4%), while the bottom-performing sectors were Consumer Discretionary (-4.9%) and Utilities (-5.1%). In the fixed-income market, the 10-year Treasury yield was up, ending at 1.4%.

We continue to seek companies that reflect our Change-BasedSM investment approach.


Change Based Investment

Carlisle Companies Incorporated operates as a global diversified manufacturing company. It designs, manufactures and markets a wide range of products that serve a broad range of niche markets including commercial roofing, lawn and garden, mining and construction equipment, aerospace and electronics, energy, agriculture, food delivery and healthcare.

The company had a significant transformation over the years. As a result of this change, Carlisle is well positioned to grow in its markets and make small acquisitions to augment its organic growth. Skepticism from COVID-19 on the strength of the commercial building market has impacted Carlisle’s operations in the short term. Longer term, the company’s growth potential, high barriers to entry and compelling valuation make Carlisle Companies a good fit for Argent’s Change-BasedSM investment approach.

Top 5 Equity Holdings


Large Cap Growth

Alphabet, Inc.(Google) 7.0%
Apple, Inc. 6.1%
Target Corporation 5.8%
Mastercard Incorporated 5.1%
Danaher Corporation 4.8%

Small Cap Core

Medpace Holdings, Inc. 4.4%
OneMain Holdings, Inc. 3.8%
Fortinet, Inc. 3.7%
America’s Car-Mart, Inc. 2.9%
ASGN Incorporated 2.8%

Dividend Select

Target Corporation 6.7%
JPMorgan Chase & Co. 5.8%
Microsoft Corporation 5.8%
Truist Financial Corp. 4.1%
Eaton Corporation Plc 4.0%

Mid Cap 

NVIDIA Corporation 4.9%
Zebra Technologies Corp. 4.7%
CDW Corporation 3.9%
Marvell Technology Group 3.7%
Cintas Corporation 3.6%


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.