G-255 Trading Indicator Recap with Earnings Digest - META, MSFT, NVDA, HD, CE, WMT, LOW for November 21, 2025
On Friday we highlighted the Single A-rated TMT sector and noted the trading opportunity to be long credit and equity of issuers that both have net cash and are repatriating capital to shareholders (META and Microsoft). As for the Single A technology sector overall – cash-flow generation from these issuers is so strong, they return 60% of profits (growing 24% YoY) AND are de-levering their balance sheets.
G-255 Single A rated TMT (18) 3Q Sector Operating Data
G-255 Single A rated TMT (18) 3Q Sector Balance Sheet
While this used to be a common occurrence 5 years ago, in the modern "return-to-shareholders" trading environment it seldom happens with the world's largest issuers of corporate debt. Even more rare is that valuations for both corporate debt and equity of these issuers become attractive.
Microsoft (MSFT), Amazon (AMZN), and Meta (META) equity and debt are the highest-rated long trade indicators in the G-255 group at present.
We have also mentioned the consumer/retail area and the model indicators for Walmart (WMT), Home Depot (HD), and Lowe's (LOW), but those companies' comparable sales are waning.
We also include the operating and balance sheet data for Celanese (CE) as they were in the news again today with an S&P downgrade.
Microsoft:
Meta Platforms Inc
NVIDIA Corp
Walmart Inc
Home Depot Inc
Lowe's Cos Inc
Celanese Corp
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