ABNB - BofA's Alpha Surprise Model: Lots of Energy additions Con. Dis. deletions

2023-10-04 07:37:36 ET

BofA Securities’ Alpha Surprise Model came back at the end of last month with underperformance in the S&P 500 ( NYSEARCA: SPY ) by -4.9% and a price return of -5.3%, according to the screens for October.

The model, published on Monday, is a quantitative discipline applied to BofA’s fundamental research franchise, screening for “inexpensive, out-of-consensus stock ideas using our fundamental analysts’ earnings estimates,” according to their analysts.

The additions as of Sept. 30 are Airbnb Inc. ( ABNB ), Cencora Inc. ( COR ), Atmos Energy Corp. ( ATO ), Bank of New York Mellon Corp. ( BK ), Chevron Corp ( CVX ), Deere & Co. ( DE ), Devon Energy Corp. ( DVN ), Diamondback Energy Inc. ( FANG ), EOG Resources Inc. ( EOG ), Exxon Mobil Corp. ( XOM ), First Solar Inc. ( FSLR ), General Mills Inc. ( GIS ), PPG Industries ( PPG ), Pioneer Natural Resources Co. ( PXD ), Rockwell Automation ( ROK ), 3M Co. ( MMM ), and Transdigm Group Inc. ( TDG ).

The deletions are Alaska Air Group Inc. ( ALK ), Berkley (W R) Corp ( WRB ), CME Group Inc ( CME ), Delta Air Lines Inc. ( DAL ), Dollar General Corp. ( DG ), Factset Research Systems Inc. ( FDS ), Fortinet Inc. ( FTNT ), Healthpeak Properties Inc. ( PEAK ), Hormel Foods Corp. ( HRL ), Johnson & Johnson ( JNJ ), McCormick & Co Inc. ( MKC ), Resmed Inc. ( RMD ), Starbucks Corp. ( SBUX ), T-Mobile US Inc. ( TMUS ), Verisk Analytics Inc. ( VRSK ), Wec Energy Group Inc. ( WEC ), Arch Capital Group LTD ( ACGL ).

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