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
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
Market’s lack of respect for the upside of PLNT’s franchising strategy, strong management execution, and overstated credit concerns for the business point to substantial equity upside
Northrop Grumman Corporation (NOC:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 19.5x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management has concerns about their recent lapses in risk management, ability to find new opportunities, and cash generation
Highlighted Top Ideas
AGN – Allergan plc
MDR – McDermott International, Inc.
TWTR – Twitter, Inc.
Other Recent Analyses
GT – The Goodyear Tire & Rubber Company
Intuit Inc. (INTU:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 34.9x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about favorable trends in the tax preparation and self-employed customer markets, their performance in France, and their enterprise version of QuickBooks
Colgate-Palmolive Company (CL:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.0x Uniform P/E. However, even at these levels, the market has somewhat bullish expectations for the firm, while management is concerned about rising Brent Crude prices, their toothpaste segment, and destocking in Mexico
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: CSX, ECA:CAN, RTN Other Recent Analyses: BNS:CAN, CRM, DHR, EOG, GPOR, MRO, RDSA:NLD, SM, VOW3:DEU
Starbucks Corporation (SBUX:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 27.1x UAFRS-based P/E. At these levels, the market has bullish expectations for the firm, but management has concerns about their ability to expand, and the strength of the Starbucks brand globally
