This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
EBAY is a winning investment with robust returns, strong economic moats, and management that is properly aligned and showing more confidence that imply low market expectations are too pessimistic
Planet Fitness (PLNT:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 34.7x Uniform P/E. However, even at these levels, the market is pricing in expectations for Uniform ROA to remain relatively flat, with lower-than-average Uniform Asset growth. Although negative management sentiment suggests the potential for near-term headwinds, market expectations are too muted in the context of the firm’s historical performance and strong fundamental tailwinds, suggesting long-term equity upside remains warranted
Highlighted Top Ideas
BHC – Bausch Health Companies Inc.
GT – The Goodyear Tire & Rubber Company
TMUS – T-Mobile US, Inc.
Other Recent Analyses
TDG – TransDigm Group Incorporated
CCI – Crown Castle International Corp.
MasTec, Inc. (MTZ:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 17.5x Uniform P/E. However, even at these levels, the market is pricing in bearish expectations for the firm, but management is confident in their 5G and Oil & Gas outlook, capital structure, and Communications and Power Generation segment growth opportunities
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights.
Top Highlight: Air Products and Chemicals, Inc.
Other Highlights: EA, LLY, THRM Other Recent Analyses: ADM, APTV, BMY, CAH, CCK, CL, CSCO, CVX, DIS, DWDP, FSLR, GD, GRMN, HCP, IRM, NSC, QGEN, SYY, TDG, TWTR, ZAYO
Zoetis Inc. (ZTS:USA) currently trades at historical highs relative to UAFRS-based Earnings, with a 27.8x Uniform P/E, implying somewhat bullish expectations for the firm. However, management appears concerned about their dermatology portfolio growth, R&D and SG&A expenses, and international market share
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 Fidelity National Information Services, Inc. (FIS), Mylan N.V. (MYL), Magellan Health, Inc. (MGLN)
Eli Lilly and Company (LLY:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 24.2x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, but management generated an excitement marker when discussing their product launches, and is confident about their R&D pipeline
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
FSLR is starting to see light at the end of the Series 6 tunnel, but the market is not yet recognizing management’s growing optimism for their outlook, spelling material upside potential
Summary Headlines – Inside This Month
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights.
Top Highlight: Apple Inc.
Other Highlights: AMGN, HON, MSFT Other Recent Analyses: AMZN, APD, CAT, CHTR, GRMN, LMT, NLS, OMC, QGEN, TMO, ZAYO
Electronic Arts Inc. (EA:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.3x Uniform P/E. At these levels, the market has somewhat bullish expectations for the firm, and management is excited about future growth potential, generating content for communities, and Battlefield and mobile franchises, and is confident about their Apex Legends release, Apex Legends monetization strategies, and sports game revenue growth
Highlighted Top Ideas
EXPE – Expedia Group, Inc. 4
AXL – American Axle & Manufacturing Holdings, Inc. 5
X – United States Steel Corporation
Other Recent Analyses
UVV – Universal Corporation
MTW – The Manitowoc Company, Inc.
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 Beacon Roofing Supply, Inc. (BECN), H&R Block, Inc. (HRB), Harley Davidson, Inc. (HOG)
Garmin Ltd. (GRMN:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.0x Uniform P/E. Even at these levels, the market is pricing in bearish expectations for the firm, which is unwarranted given management’s confidence in their growth, 2020 programs, and retrofit product lines. As such, outperformance is likely justified
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
Markets are pessimistic about Garmin, but strong improving returns, favorable management alignment, and improving fundamental momentum have guided a course correction the market will eventually recognize
Highlighted Top Ideas
GM – General Motors Company
MTOR – Meritor, Inc.
WRK – WestRock Company
Other Recent Analyses
GME – GameStop Corp.
NAV – Navistar International Corporation
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights.
Top Highlight: NextExtra Energy, Inc.
Other Highlights: BA, GT, V Other Recent Analyses: AMN, CCK, CNXM, DHR, DIS, EXPE, FN, MCD, MO, PFE, PM, PSX, YELP, ZBRA
Apple Inc. (AAPL:USA) currently trades below corporates averages relative to UAFRS-based (Uniform) Earnings, with a 13.6x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their Services segment, subscription growth, and shareholder returns
Microsoft Corporation (MSFT:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 20.4x Uniform P/E. However, even at these levels, the market has bearish expectations, and management may have concerns about Azure capabilities, gaming user engagement, and intelligence systems
