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 Laboratory Corporation of America Holdings (LH), AECOM (ACM), Commvault Systems, Inc. (CVLT)
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
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: The Estee Lauder Companies Inc.
Other Highlights: AMT, D, MCD Other Recent Analyses: AMGN, AN, ATVI, CSX, CTSH, HUM, MGM, MPC, MRK, MSFT, NSC, PSX, UNP, UTX, VOW3:DEU, X
The Coca-Cola Company (KO:USA) is currently trading above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 23.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their recent acquisitions and investments, scaling new brands, and the challenging currency environment
Caterpillar Inc. (CAT:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.6x Uniform P/E. However, even at these levels, the market has bullish expectations for the firm, while management may have concerns about their profitability and growth levels, RI and E&T margin volatility, and their order rates and backlog
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 Medtronic plc (MDT), Broadcom Inc. (AVGO), Insperity, Inc. (NSP)
McDonald’s Corporation (MCD:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 28.4x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about average check, transformation in their U.S. system, and shareholder returns
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
THRM appears to be heating up with market share and market opportunity growth, and ROA’ recovery, while the market may be misunderstanding their risk from the auto cycle, pointing to potential equity upside
American Tower Corporation (AMT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 34.2x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about the balance of their portfolio, volatility in India, and their ability to remain within leverage targets
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: Zynga Inc.
Other Highlights: BHC, PINC, THRM Other Recent Analyses: ABBV, BMY, CAT, CHTR, DHI, DIS, GM, GNTX, KBH, MA, MO, MYL, PLNT, V, VALE3:BRA
Volkswagen Aktiengesellschaft (VOW3:DEU) currently trades near historical averages relative to UAFRS-based (Uniform) Assets, with a 1.1x Uniform P/B. At these levels, the market has muted expectations for the firm, and management may have concerns about maintaining strong performance, meeting guidance targets, and international segment performance
Activision Blizzard, Inc. (ATVI:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 14.3x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their advertising performance, partner network issues, and their ability to sustain elevated in-game revenue levels
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 Workday, Inc. (WDAY), ACI Worldwide, Inc. (ACIW), Prestige Consumer Healthcare Inc. (PBH)
Mylan N.V. (MYL:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.2x Uniform P/E. At these levels, the market is pricing in expectations for the firm to see profitability fall to near historically low levels, but management’s confidence in their ability to improve their product mix, capture market share, and lower costs suggest this is overly bearish. As such, longer-term outperformance is likely warranted
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
The market is worried about PINC’s legacy business being sick, and is not capturing the strong momentum in their execution into a stickier higher value add business
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. However, given management’s confidence about their margin expansion and focused growth initiatives, longer-term outperformance remains warranted
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: First Solar, Inc.
Other Highlights: ASGN, GILD, TMO Other Recent Analyses: ABBV, AGN, AMAG, BBY, GME, LB, MO, NOV, ZNGA
Premier, Inc. (PINC:USA)currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.5x Uniform P/E. At these levels, the market is pricing in expectations for the firm to see historically low profitability, but management is confident about Stanson, fees, and revenues. As such, longer-term equity upside remains warranted
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 Oracle Corporation (ORCL), Xerox Corporation (XRX), PetMed Express, Inc. (PETS)
First Solar, Inc. (FSLR:USA) currently trades at a discount to UAFRS-based (Uniform) Assets, with a 0.7x UAFRS-based P/B. At these levels, the market has muted expectations for the firm, but management is confident in their long-term outlook, operational costs, and new Series 6 model
