This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
The market is concerned about rapid profitability and growth declines, while management continues to see strong execution, spelling upside potential
Texas Instruments Inc. (TXN:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 23.3x Uniform P/E. At these levels, markets are pricing in bullish expectations for the firm, but management may be concerned about continued decreases in gross profit, inventory management, revenue growth, and their Chinese business
Highlighted Top Ideas
AL – Air Lease Corporation
HTZ – Hertz Global Holdings, Inc.
UNT – Unit Corporation
Other Recent Analyses
CVS – CVS Health Corporation
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: Ingersoll-Rand Plc
Other Highlights: CTXS, LRCX, NFLX Other Recent Analyses: ABBV, AES, ALV, AXTA, BAH, BBY, CCK, CCL, DOOR, FLS, KEYS, STOR, TTWO, VMC, ZBRA
currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 12.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their strategic value dividend strategy and Hermes acquisition
Facebook, Inc. (FB:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 14.8x Uniform P/E. At these levels, markets are pricing in extremely bearish expectations for the firm, which appears unwarranted given management’s confidence in the advertising potential of their platforms, and developments in the Watch tab
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 Dentsply Sirona, Inc. (XRAY), Amgen, Inc. (AMGN), MSCI Inc. (MSCI)
Netflix, Inc. (NFLX:USA) currently trades well above historical averages relative to UAFRS-based (Uniform) Earnings, with a 65.1x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about original content investments, price increases, and third-party content agreements
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
Lam Research Corporation (LRCX:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with an 11.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, but while management has concerns about earnings growth, demand, and investments, potential macro tailwinds and competitive niches in flash storage suggest longer-term upside remains warrante
Highlighted Top Ideas
CAR – Avis Budget Group, Inc.
CSTM – Constellium N.V.
DOOR – Masonite International Corporation
Other Recent Analyses
HL – Hecla Mining Company
Citrix Systems, Inc. (CTXS:USA) currently trades near corporate averages relative to UAFRS-Based (Uniform) Earnings, with a 19.3x Uniform P/E. At these levels, markets are pricing in muted expectations for the firm, and while management has concerns about bookings growth, product innovation, and market headwinds, the firm’s leadership position in the space suggests this bearishness is unwarranted
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: Ingersoll-Rand Plc
Other Highlights: BSX, WEED:CAN, WGO Other Recent Analyses: ADBE, ARMK, BR, CZR, DISH, GDDY, INCY, IRM, LHA:DEU, MTD, NBIX, NDAQ, NKE, OHI, SHOP, TWTR, VMC, YUMC
Flowserve Corporation (FLS:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 29.7x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about gross margins, power market sales, backlog issues, and cost management
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 TEGNA, Inc. (TGNA), Echo Global Logistics, Inc. (ECHO), Kinder Morgan, Inc. (KMI)
Incyte Corporation (INCY:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 12.3x Uniform P/E, implying bearish expectations for the firm. However, management is confident about Phase III tests of ruxolitinib cream, capmatinib submission, and GVHD research
Canopy Growth Corporation (WEED:CAN) currently trades near historical averages relative to UAFRS-based (Uniform) Assets, with a 4.5x Uniform P/B, implying bullish expectations for the firm. Moreover, management is excited about their cash balances and confident about revenue growth, sales strategies, and strategic cost investments
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
HIG is seeing operational and macro improvements, combined with a strong management team and growing operational confidence that insure equity upside
Highlighted Top Ideas
DF – Dean Foods Company
SUM – Summit Materials, Inc.
TCG:GBR – Thomas Cook Group plc
Other Recent Analyses
RAD – Rite Aid Corporation
DNR – Denbury Resources Inc.
