Seven Lakes Weekly Summary

Hello Seven Lakers,

below a summary of relevant events happened in the stock market in the last week

📈 1/ Stocks and sectors bought by US politicians last week

This week, the trading activity at Capitol Hill was quite substantial, with ~266 transactions taking place

Capital Markets and Oil & Gas were the most invested sectors

If you want to receive daily updates on politicians trades, click here

🏦 2/ US Politicians potential insider trading: Congressman Jackson securing profit on NextEra Energy

Congressman Jonathan Jackson recently joined the House of Representatives in 2023 and has quickly become a significant figure

Representing Illinois's 1st congressional district, he has also assumed roles in the House Committee on Agriculture and Committee on Foreign Affairs.

Recently, the politician gained attention for his stock trade involving American energy company NextEra Energy (NEE:US)

On September 19, he strategically sold stakes amounting to $50,000 when the stock closed at $67.59

This decision shielded his investment from a substantial drop of nearly 14.93%.

If you want to receive daily updates on political trading, click here 

🔔 3/ How to be notified when politicians buy / sell stocks

As seen before, some suspicious trades were made by Congress Members and their relatives

However, the GOOD NEWS is that their moves can be copied (politicians need to disclose their stock positions)

The Seven Lakes Research analyst team provides PREMIUM detailed updates from Monday to Friday with all the relevant fact on: 

Click on the button below to start receiving them 👇👇👇👇👇

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📄 4/ Interesting stock market stories

STORY #1: A senator is betting on defense stocks amid global tensions

Geopolitical situation

Global tensions are escalating with conflicts between nations, including strained U.S.-China relations over Semiconductors and the AI race, and the ongoing Russia-Ukraine war

In the Middle East, fresh tensions have erupted between Palestine's Hamas group and Israeli militants, resulting in casualties.

Missile attacks by Hamas on Ashkelon led to Israeli airstrikes on Gaza, impacting U.S. defense stocks.

Weapons suppliers stocks performing well

Major weapons suppliers to Israel, like Lockheed Martin, RTX Corp, Boeing, and L3Harris Technologies, have experienced significant stock surges amid the conflict

Senator Mullin is buying a lot of defense stocks

Investors have increased stakes in defense stocks, and Senator Markwayne Mullin, a recent addition to the Senate Armed Services Committee, made significant security-related stock purchases, including a bullish bet in RTX Corp on October 3.

Since Mullin's purchase, RTX shares rose nearly 17%, despite a 17% decline year-to-date.

While the link between Mullin's committee involvement and the stock sector is not definitive, RTX stock's performance is attributed to the Middle East conflict escalation and Q3 earnings beating consensus.

If you want to be notified when politicians trade stock, we send daily email alerts here 

STORY #2: Starbucks surging +11% on strong results

Starbucks (SBUX) witnesses a substantial 11% boost in its stock value after announcing revenue that surpasses analyst expectations. The company's earnings per share (EPS) of $1.06 outperform the anticipated $0.97, with revenue hitting $9.37 billion, an 11.4% increase from the expected $9.29 billion.

Performance Breakdown

Starbucks reports an impressive 8% growth in store sales, surpassing analysts' projections of 6.8%. This is attributed to higher average checks and a 3% increase in customer traffic, with domestic locations leading the way. In the U.S. and North America, store sales grow by 8%, with a 6% rise in the average check and a 2% increase in customer traffic.

International performance and future projections

Internationally, outside North America, same-store sales increase by 5%, driven by higher customer visits. In China, the second-largest market for Starbucks, same-store sales increase by 5%, with an 8% rise in customer traffic, despite a 3% decline in the average ticket. Looking ahead to fiscal 2024, Starbucks expects same-store sales growth of 5% to 7%, slightly below its long-term forecast.

Insiders comments & trading

Starbucks CEO Laxman Narasimhan notes that the company's Reinvention is progressing ahead of schedule, contributing to revenue growth, efficiency, and margin expansion. Meanwhile, several lawmakers, including Markwayne Mullin, Josh Gottheimer, Ro Khanna, and Scott Franklin, have been actively trading SBUX shares in recent months.

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STORY #3: Estee Lauder Falls 20% as China, Israel weigh on outlook

Beauty stocks faced significant selling pressure following Estee Lauder's downward revision of its fiscal-year projections for adjusted earnings per share and net sales.

The company cited challenges in the Asia travel retail business and slower-than-expected recovery in mainland China's prestige beauty market, along with concerns about business disruption in Israel and other parts of the Middle East.

Q1 Performance: Estee Lauder Reports Declines Below Estimates

Estee Lauder reported adjusted earnings per share of $0.11 for the first fiscal quarter, a substantial drop from $1.37 year-on-year and below the estimated loss of $0.20. Adjusted net sales for the quarter totaled $3.52 billion, marking an 11% decrease from the previous year and missing the estimated $3.54 billion.

Bleak Outlook for Q2: Estee Lauder's Lowered Expectations

Estee Lauder expects adjusted EPS for the second quarter to be in the range of $0.48 to $0.58, falling short of the average analyst estimate of $1.25. The company also anticipates a decline in net sales for the second quarter, ranging from 9% to 11%.

Gloomy Full-Year Forecast: Estee Lauder Slashes 2024 Projections

Estee Lauder lowers its forecast for adjusted EPS for the full year 2024 to a range of $2.17 to $2.42, significantly below the consensus of $3.60. Net sales for the fiscal year are projected to decrease by 2% to 1%.

Rep. Ro Khanna's Stock Purchase Amidst Decline

In September, Rep. Ro Khanna announced the purchase of Estee Lauder shares worth between $15,000 and $50,000. The transaction occurred on September 6 when the stock closed at $156.58. With the recent decline, the stock was observed trading just above $100 on Wednesday. He is down -56%

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