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The Latest from
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August 15, 2018
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: Lennar Corporation Other Highlights: HSY, KO, SBAC Other Recent Analyses: ABM, AMZN, BBY, BXP, ECB, GME, HON, INFO, IR, MGM, ROK, UVV, ZG...
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August 15, 2018
Cirrus Logic Inc. (CRUS:USA)trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.8x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which may be unwarranted given management’s confidence in their ability to capitalize on increasing demand, overcoming challenges with their second biggest customer, and opportunities in the stereo market. As such, outperformance is likely justified...
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August 14, 2018
MasterCard Incorporated (MA:USA)currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 28.9x Uniform P/E, suggesting bullish expectations for the firm. However, management has concerns about merchant’s acceptance of QR code systems, their ability to maintain debit growth in India, and their partnership with N26 in Germany...
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August 13, 2018
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 American Public Education, Inc. (APEI), OSI Systems, Inc. (OSIS), CryoLife, Inc. (CRY)...
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August 13, 2018
MGM Resorts International (MGM:USA)currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 25.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management has concerns about Strip fundamentals, RevPAR, and demand in Vegas and Mandalay...
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August 10, 2018
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. The market is worried about the legacy business, and is not capturing the strong momentum in their execution into a stickier higher value add business...
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August 10, 2018
Lennar Corporation (LEN:USA)currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with an 11.8x Uniform P/E, implying muted expectations for the firm. However, management is confident in their new orders growth, their stated objective to increase their returns, and in their position within the homebuilding industry...
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August 9, 2018
Zillow Group, Inc. (ZG:USA)currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 37.1x Uniform P/E. However, even at these levels, the market is pricing in fairly bearish expectations for the firm. Although negative management sentiment suggests near-term upside may be limited, these overly-bearish expectations are likely to support longer-term outperformance should ZG simply maintain profitability at current levels...
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August 9, 2018
Highlighted Top Ideas
DISH – DISH Network Corporation
JCP – J. C. Penney Company, Inc.
LEE – Lee Enterprises, IncorporatedOther Recent Analyses
UHS – Universal Health Services, Inc.
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DOOR – Masonite International Corporation... -
August 8, 2018
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: Facebook, Inc. Other Highlights: ABC, KBH, SEDG Other Recent Analyses: ALXN, BWA, CBS, CMCM, CVS, DISH, ESRX, GOOGL, HCA, IEP, K, KR, LEE, LXFT, PBH, POST, SBGI, SQ...
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August 8, 2018
Rockwell Automation, Inc. (ROK:USA)is currently trading near recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, while management is confident in their Connected Enterprise initiative and growth in their high-margin heavy industrials segment...
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August 7, 2018
The Hershey Company (HSY:USA)currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 20.8 Uniform P/E, implying somewhat bullish expectations for the firm. However, management is concerned about their SKU reduction and tax credit strategies, and about their ability to improve margins by reducing costs...
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