Winnebago Industries (WGO:USA)currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 9.0x Uniform P/E (Fwd V/E’). At these levels, markets have overly bearish expectations for the firm, and given management’s confidence in their Towable segment growth, expanded product lines, and brand equity, further upside is warranted

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.

COF is set to cash in with accelerating fundamentals, strong management alignment, and a robust business strategy just as markets are overly pessimistic on the company

The TJX Companies, Inc. (TJX:USA)currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 24.4x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management is concerned about volatility in the U.K., their ability to maintain profitability, and headwinds facing HomeGoods

Highlighted Top Ideas

BZH – Beazer Homes USA, Inc.
UIS – Unisys Corporation
YRCW – YRC Worldwide Inc.

Other Recent Analyses

AN – AutoNation, Inc.
SUM – Summit Materials, Inc.
AMKR – Amkor Technology, Inc.

Halloween may be around the corner, but don’t be spooked by the market’s moves

Any time the market falls 6%+ in 2 days, investors justifiably ask whether something has changed that should impact their investment thesis. This is when a consistent framework like the Market Phase Cycle is most valuable.

Target Corporation (TGT:USA)currently trades above recent averages relative to UAFRS-based (Uniform) Earnings with a 19.8x Uniform P/E. At these levels, the market is pricing in expectations for the firm to see profitability stabilize near recent levels, and management is confident about their ability to maintain growth in 2019, the roll out of their delivery from store service, and tailwinds from the closure of Toys “R” Us

Each week the Valens Securities team highlights our most interesting insights from across our tools and our analysis, including individual company industry and macro insights

Top Highlight: CNX Resources Corporation

Other Highlights: AI:FRA, AMD, YRCW Other Recent Analyses: AER, AN, AVP, CHK, CTSH, DF, DOOR, GT, MDR, MU, OC, PETR4:BRA, PKD, PSX, SUM, TWTR, ZTS

Adobe Systems Incorporated (ADBE:USA)currently trades near peak historical valuations relative to UAFRS-based (Uniform) Earnings, with a 34.6x Uniform P/E, implying bullish expectations for the firm. Additionally, management is confident in their Digital Media and Digital Experiences business, refined marketing targeting applications, and the stock as a service Creative Cloud extension

Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals.

This week, we focus on Tyson Foods, Inc. (TSN), Equity Commonwealth (EQC), Bridgepoint Education, Inc. (BPI)

Zoetis Inc. (ZTS:USA)currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 27.8x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about headwinds facing their vaccine business, Polish and Brazilian markets, and opportunities for Cytopoint

Universal Health Services, Inc. (UHS:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 15.7x Uniform P/E. At these levels, the market has somewhat bearish expectations for the firm, but management is confident about their ability to drive revenue growth, improving capacity, and their acute care business

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.

Management’s smart strategic decisions, low market expectations, and sustained confidence about the business builds the case for equity upside

BTD = Buy The Dip. Yes, yet again we are being given the gift of a US Equities market entry point. Patience is a profitable virtue when deploying capital into any market sell-off. This pullback in US equities is no reason to panic.

Micron Technology, Inc. (MU:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 4.0x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their ability to execute their strategies and improve manufacturing efficiency, and about capital expenditures

Each week the Valens Securities team highlights our most interesting insights from across our tools and our analysis, including individual company industry and macro insights

Top Highlight: CNX Resources Corporation

Other Highlights: CL, INTU, NOC Other Recent Analyses: AMKR, ATVI, BAS:DEU, BAYN:DEU, CHK, ENI:ITA, FP:FRA, ORCL, PSX, SBUX, TSLA, UIS

Highlighted Top Ideas

AER – AerCap Holdings N.V.
AVP – Avon Products, Inc.
OC – Owens Corning

Other Recent Analyses

NFX – Newfield Exploration Company
MLM – Martin Marietta Materials, Inc.

Advanced Micro Devices, Inc. (AMD:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Assets, with a 5.9x Uniform P/B, implying bullish expectations for the firm. However, management has concerns about their ability to meet elevated expectations and the potential of long-term technology bets

YRC Worldwide Inc. (YRCW:USA)currently trades below book values relative to UAFRS-based (Uniform) Assets, with a 0.8x Uniform P/B, implying bearish expectations for the firm. However, management is confident about their increasing revenues, and shipment growth

Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals.

This week, we focus on CyberArk Software Ltd. (CYBR), Alphabet, Inc. (GOOGL), PTC, Inc. (PTC)

L’Air Liquide S.A. (AI:FRA)currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 25.3x UAFRS-based P/E. At these levels, the market has bullish expectations for the firm, but management has concerns about their ability to improve their efficiencies, global trade tensions, and growth in developing economies