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The Latest from
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May 16, 2019
Highlighted Top Ideas CVS – CVS Health Corporation, LEE – Lee Enterprises, Incorporated, RAD – Rite Aid Corporation...
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May 15, 2019
MasTec, Inc. (MTZ:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.4x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and while management has concerns about EBITDA margin performance, infrastructure projects, and end market expansion costs, their confidence in their backlog, along with industry tailwinds, provide significant potential for outperformance and equity upside...
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May 15, 2019
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: CVS Health Corporation Other Highlights: ITW, LRCX, THRM Other Recent Analyses: AMN, DISC.A, DVA, FSLR, GILD, GRMN, IBM, NI, PTC, SCCO, SLB, SNA...
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May 14, 2019
Cirrus Logic, Inc. (CRUS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.7x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which may be unwarranted given management’s confidence about the progress of microphone shipments, the potential of product development, and gross margins, justifying outperformance going forward...
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May 13, 2019
Gentherm Incorporated (THRM:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.3x Uniform P/E, implying bearish expectations for the firm. While management’s concerns about labor costs and automotive production suggest the potential for near-term headwinds, the firm’s leadership in its space suggest longer-term upside remains warranted...
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May 10, 2019
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. Cirrus appears to be making the right calls with strong management alignment, favorable fundamentals, smart strategic decisions, and growing management optimism, pointing to equity upside...
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May 10, 2019
CVS Health Corporation (CVS:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 16.9x Uniform P/E. At these levels, markets are pricing in bearish expectations for the firm, which is unwarranted given management’s confidence in store comp sales growth, generics performance, and the potential of HealthHUB. As such, outperformance is likely justified...
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May 10, 2019–CDS 1404bps, Base Case iCDS 523bps–Negative Case iCDS 1111bps, 2023 6.125% Bond YTW of 10.860%, iYTW of 7.470%–B3 Rating from Moody’s, XO (equivalent to Baa3) Rating from Valens–High Refinancing Need Read MoreMay 9, 2019
Highlighted Top Ideas AMD – Advanced Micro Devices, Inc., BBY – Best Buy Co., Inc., SUM – Summit Materials, Inc....
Read MoreMay 8, 2019Lam Research Corporation (LRCX:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 12.8x Uniform P/E. At these levels, the market has overly bearish expectations for the firm, and while management has concerns about equipment demand, costs, and productivity, potential macro tailwinds and competitive niches in flash storage suggest longer-term upside remains warranted...
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