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PayPal Holdings (PYPL) is a great company that may appear overvalued when looking at valuation multiples. However, it's not as bad as it may appear since the company generates a lot of cash. In this article, we will perform a discounted cash flow analysis to calculate the company's intrinsic value. In addition, we will highlight some important risk factors and growth catalysts that could have an impact on the company's performance.
Netflix Inc (NFLX) has the potential to perform well. However, we highlight what you need to consider before jumping into the stock. We base our forecast purely on the company's fundamentals. By doing so, we are able to point to the specific growth drivers rooted in numbers as opposed to perceived potential. In addition, we believe that Netflix's margins will expand going forward. Using the fundamentals allows us to more reasonably estimate the company's margin expansion.
Domino's Pizza, Inc. (DPZ) is a stable and predictable pizza industry leader with a great long-term track record. The pizza industry is fragmented which means that the company's size and brand recognition provide it with a competitive edge over the majority of its rivals. Domino's will continue to see strong growth going forward, fueled by its ambition to continue opening many more stores.
Plenty of great articles have been written about what Etsy Inc (ETSY) does and what catalysts can drive its growth, as well as the risks that are associated with the company.
In this article, we want to focus more on the deep potential value hidden in Etsy from a purely fundamental point of view, rather than talk about things that have already been talked about. Freelance work is increasing in popularity because hiring a freelancer is typically less expensive than hiring a full-time employee or agency. In addition, freelancers earn more than they would as employees for completing the same tasks even if they charge less. Therefore, it is a win-win for both sides.
Proto Labs Inc. (PRLB) is an interesting company that could see strong growth going forward. The company's recent acquisition of Hubs is potentially a great growth catalyst that will allow Proto Labs to double its revenue in five years.
Traditional schools are not optimal for the modern student. Younger generations grew up surrounded by technology. Therefore, education providers need to embrace if they are serious about providing a high-quality learning experience. As a result, the edtech industry is expected to continue seeing growth despite the pandemic boost.
Squarespace (SQSP) is an interesting company that offers web-building tools for businesses. It's not the industry leader but it has been growing its market share despite stiff competition. Squarespace has impressive margins, solid revenue growth, and strong efficiency metrics. In addition, the company appears to be reasonably priced.
Peloton Interactive (PTON) appears to be a misunderstood stock. When simply looking at multiples, it can appear that the company is overvalued. However, valuation multiples leave out a lot of crucial information. In this article, we highlight two things:
The e-learning industry is poised for strong growth over the next decade. Coursera (NYSE:COUR) is well-positioned to continue growing at a fast pace. However, investors need to be cautious as the company is trading at a premium.
Previously, we wrote an article on Corsair Gaming (CRSR) where we looked at growth catalysts and quantified its competitive advantage. Today we will be taking a look at Logitech International (LOGI), its closest competitor.
We will look at the cold hard numbers to quantitatively prove that Goodfood Market Corp. (FOOD.TO) is a serious grocery player with an operational competitive advantage in the Canadian market that shouldn't be ignored.
Recently, we wrote an article comparing the "FANGMA" stocks where we talked about why Facebook is currently the best, quantitatively speaking. However, we wouldn't recommend sleeping on Amazon (AMZN) because its AWS segment has seen strong growth and seems likely to continue doing so. Its high margins will continue to boost Amazon's bottom line as it becomes a larger part of the revenue mix.
Music streaming has revived the music industry. The fall of physical sales contributed to a decline that lasted over a decade. It wasn't until 2014 that the industry saw a turnaround. Spotify Technology S.A. (SPOT) is one of the leaders of music streaming but has begun to diversify into complementary offerings. In addition, current market conditions suggest that the company may actually be trading at a discount relative to peers.
Corsair Gaming Inc. (NASDAQ:CRSR), was recently dubbed a meme stock. However, we see it as a company with strong fundamentals that is greatly undervalued. Undoubtedly, Corsair received a boost from COVID-19 which led to a jump in revenue growth that was unsustainable. However, even at a reduced growth rate, it still has room for plenty of upside.
ContextLogic Inc. (NASDAQ:WISH) is a long way off its high of $32.85 per share. However, it appears that its stock price has fallen too low and looks attractive at this level. In this article, we will not be discussing what the company does as many articles already do that. Instead, we will look at the company's growth catalysts, its management team/investors, and various valuation models to demonstrate that ContextLogic is trading well below fair value.
There's no doubt that the future of energy is heading towards renewable sources. Solar, in particular, has become much more cost-effective in recent years. In fact, solar energy is actually cheaper than fossil fuels. Electricity from fossil fuels costs between 5 cents and 17 cents per kilowatt-hour whereas solar energy costs average between 3 cents and 6 cents per kilowatt-hour and are trending down.
Vintage Wine Estates (VWE), is a recently listed stock that went public in early June through a SPAC. Unlike many other SPACs that saw their prices skyrocket over 100% during the craze, Bespoke Acquisitions (BSPE), the pre-merger name, saw a relatively smaller 17.5% pop from its $10 IPO price before dropping down.
Autodesk, Inc. (NASDAQ:ADSK) is an industry leader with great margins that are expected to expand in the coming years. In addition, we believe it is trading at a good price.
When it comes to big tech, there is no shortage of controversy. Facebook (FB), in many ways, has arguably the worst reputation out of the FANGMA stocks - Facebook, Apple (AAPL), Netflix (NFLX), Alphabet (GOOG) (NASDAQ:GOOGL), Microsoft (MSFT), Amazon (AMZN). However, this article isn't about that because despite the many controversies, many continue to use their services and they continue to grow.
Celsius Holdings Inc. (CELH) has a very interesting story filled with conviction and perseverance. Carl DeSantis stumbled upon Celsius 15 years ago when his long-time business partner brought him a 6-pack of it. Having thought it was a winner, DeSantis invested in the company and had become its largest shareholder.
Palantir Technologies Inc (PLTR) is a very interesting company that appears to be overvalued on the surface. As a matter of fact, that's exactly what we thought when we first came across the company. Its price-to-sales multiple is almost 40x and it has negative operating income. Although the loss comes from stock-based compensation which isn't a cash expense, it still dilutes shareholders. However, when looking more closely, it appears that Palantir may actually be reasonably priced.
Back in February, we wrote an article about Adobe (NASDAQ:ADBE) and placed a price target of $530. This was right before inflation fears became mainstream. After a wild few months, the share price has now met and exceeded $530. As a result, we wanted to do a follow-up on the company.
Back in January, we wrote about INMD because we saw major upside potential. Since then, the stock has returned about 60% vs the S&P 500's 10% change which may have some people questioning if it's time to take profits or not. In this article, we provide an update on company's future as well as an updated valuation to determine if it's still worth holding or not (spoiler, it's a buy). Check out our report!
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