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. Microsoft Corporation (MSFT), Cirrus Logic, Inc. (CRUS), Splunk Inc. (SPLK)

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. WGO likely to drive strong returns, as current low market expectations do not recognize age-wave, and company strategy factors, strong management alignment, and growing management confidence that are likely to justify upside

Adobe Inc. (ADBE:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 40.7x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their margins, revenue targets, and the Adobe Experience Platform

UGI Corporation (UGI:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 19.6x Uniform P/E. However, even at these levels, markets are pricing in muted expectations for the firm, while management is confident about their operating performance, capital return strategy, and the AmeriGas acquisition

Summary Headlines – Inside This Month

• The Fed makes the trend, and the (upward) trend is your friend. The Fed is set to cut interest rates in July. This, combined with overall lower corporate borrowing costs may allow companies to refinance debt maturity headwalls that have been a potential market overhang. This gives a confirming all clear signal for the next year and beyond
• Profits and profitability continue to rise to all time highs across US corporations (UAFRS adjusted, accurate calculations)
• US firms are likely to use profits to increase capital investments in 2019

Highlighted Top Ideas AN – AutoNation, Inc., CVI – CVR Energy, Inc., RIG – Transocean Ltd.

Juniper Networks, Inc. (JNPR:USA) currently trades slightly below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.9x Uniform P/E, implying muted expectations for the firm. Additionally, management appears concerned about sales growth, headwinds to their Cloud business, and the competitive landscape

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: Aramark AVGO, LEA, WGO Other Recent Analyses: BMRN, BURL, CHTR, CRM, DISH, GDDY, HFC, IPGP, LEVI, MDLZ, MGM, NEE, ORCL, PEP

Uber Technologies, Inc. (UBER:USA) currently trades at a significant premium relative to UAFRS-based (Uniform) Assets, with a 17.2x Uniform P/B. At these levels, the market is pricing in a substantial profitability inflection; however, management appears concerned about intensifying global competition, margin pressures, and their brand

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. RingCentral, Inc. (RNG), Cardtronics plc (CATM), Symantec Corporation (SYMC)

Winnebago Industries, Inc. (WGO:USA) currently trades below corporate averages relative to Uniform Earnings, with an 11.0x Uniform P/E. At these levels, markets have overly bearish expectations for the firm given management’s confidence in their growth trajectory, cost management improvements, and manufacturing capabilities

Lear Corporation (LEA:USA) currently trades slightly below corporate averages relative to Uniform Earnings, with a 9.1x Uniform P/E, implying bearish expectations for the firm. That said, management is confident about ongoing production growth and margin expansion

Highlighted Top Ideas DBD – Diebold Nixdorf, Incorporated, MGM – MGM Resorts International, WYND – Wyndham Destinations, Inc., 

Aramark (ARMK:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 14.5x Uniform P/E, implying bearish expectations for the firm. However, management is confident about FSS margins, their balance sheet, and their ability to meet expectations for business synergies

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: Zoetis Inc. CRM, MA, QCOM Other Recent Analyses: ADM, AN, CVI, HCA, MGM, SBAC

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. Nielsen Holdings plc (NLSN), Synopsys, Inc. (SNPS), Akamai Technologies, Inc. (AKAM)

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. You don’t need to employ someone with a degree in AI to know that ASGN is a compelling buy, with low valuations, and building management confidence

Highlighted Top Ideas ADNT – Adient plc, AMAG – AMAG Pharmaceuticals, Inc., HCA – HCA Healthcare, Inc.

Mastercard Incorporated (MA:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 32.5x Uniform P/E, suggesting bullish expectations for the firm. Moreover, management is confident in the transparency of Chinese payments, organic and inorganic growth strategies, and their ability to create a loyalty program

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. Realogy Holdings Corp. (RLGY), Masco Corporation (MAS), ABM Industries Incorporated (ABM)