With Q1 earnings season underway, a number of our strategies from 2022 have managed to hit our price targets despite how brutal the market has been.
So, let's knock off a quick update on our strong Haleon ($HLN) strategy from last year.
For the most part, it's almost cheating to report on IPOs that come out of conglomerates like Glaxo-Smith Kline. The market absolutely hates businesses that don't benefit from being super large and has rewarded Haleon handsomely for getting spun out of the British pharma giant.
The headline on Haleon is simple this year:
Our initial Haleon thesis was spot-on. HLN has massively boosted their profits despite inflationary pressure. Being an independant company has created even better efficiencies than we anticipated and that's why the stock is up 35% since we first covered it.
Meanwhile, other emerging trends are boosting HLN in the short term as well.
It appears that flu season is extending its range beyond the end of Q4 and the beginning of Q1. We're seeing influenza infections begin earlier and end later, probably thanks to a large combination of factors.
Furthermore, Haleon has pulled off strong regional growth that makes them a strong competitor no matter where the market pushes them. This is really interesting considering that Haleon just gained a major American competitor thanks to another big IPO last week.
There's a lot to cover here and the details are solid. Let's keep this one light so we don't nerd out too hard about consumer health 👇