Over the past summer, SIA ETF scans have generated valuable insights in the area of ESG (Environmental, Social, and Corporate Governance) investing. This evolving approach seeks to balance financial returns with a company’s impact on the environment, stakeholders, and society. To qualify as ESG-compliant, companies must regularly publish measurable goals and report their progress in periodic sustainability reports to regulators. Like any universe of equities, there are both strong and weak performers. The SIA Relative Strength Matrix effectively sifts through these large datasets, transforming them into actionable opportunities that blend investment returns with the goal of being responsible corporate citizens. SIACharts offers a comprehensive ESG Report that tracks the performance of this group of companies, enhancing the effectiveness of the investment strategy by focusing on the top-performing ESG firms. While individual ESG companies strive to align financial returns with their ESG objectives, SIA practitioners elevate this process by selecting investments in companies that successfully achieve their initiatives, as measured by SIA Relative Strength performance. The S&P ESG Index Report includes 311 companies dedicated to ESG principles. By concentrating on those in the SIA Favored Zone and monitoring stock movements in and out of this "green zone," advisors can effectively identify market leaders while avoiding underperformers. The stark contrast between top and bottom performers is illustrated in the attached table. Notably, companies such as Iron Mountain, Progressive Group, Trane Technologies, Mohawk Industries, GE Aerospace, and even Kellogg's (referred to as Kellenova) have demonstrated impressive year-to-date returns. It’s clear that the SIA Relative Strength Matrix is a game changer for elite advisory groups, providing a high-tech approach to their analysis.
Compare this to the dismal YTD numbers at the very bottom of the report with notable decliners being Walgreens Boot Alliance, Intel, Mosaic and ETSY.
In today’s Daily Stock Report, we are highlighting Fortinet (FTNT), which is currently positioned at #47 out of 311 on the SIA S&P 500 ESG Index Report. This cybersecurity company, with a market capitalization of $57.83 billion and headquartered in Sunnyvale, California, develops and sells security solutions, including firewalls, endpoint security, and intrusion detection systems. Fortinet’s shares have shown significant momentum, rapidly climbing the SIA Relative Strength rankings from #274 on August 6th to its current position at #47. During this period, FTNT's price has increased from $55.81 to $75.61, marking a gain of just over 35%. The attached point and figure chart highlights Fortinet's trading range from 2021 to 2024, suggesting that the stock is still under pressure if it weren’t for our main coach relative strength analysis. As US large caps represent the top asset class globally, Fortinet has emerged as a relative strength leader within this universe, making it a standout performer. We have marked three key areas on the chart. The first indicates a potential bear trap that has been appearing frequently on point and figure charts over the past year—investors should be cautious of this trap. The second and third circles highlight levels of resistance that are currently hindering FTNT's upward movement. A breakthrough to $80.59 (set SIA Alerts) would open the path to the psychological milestone of $100, as indicated by the upper red line. Additionally, FTNT carries a SMAX score of 10 out of 10, reflecting its strong near-term relative strength compared to other asset classes, including cash, bonds, commodities, and both domestic and international investments.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
