Vertiv Stock: AI Infrastructure Play at a Reasonable Price
As an investor, I gravitate toward quality compounders. These are generally asset light companies with wide economic moats, predictable revenue, high margins and a history of growing earnings and free cash flow. This is underpinned by high returns on invested capital (ROIC). Think Visa’s network effects or Microsoft’s entrenched software ecosystem. Vertiv Holdings Co. (VRT) […]
Magnificent 7: Which Stocks Offer the Best Value Post-Pullback?
The Magnificent 7—Microsoft, Apple, Alphabet, Nvidia, Amazon, Tesla, and Meta—have driven the market higher for years now. These companies aren’t just riding the waves of trends like AI, cloud computing, and electric vehicles; they are shaping them. Their dominance has propelled stock indices to new heights. But it is their quality that has made them […]
Why Costco’s Stock Defies Valuation Logic
Costco Wholesale (COST) has been one of the stock market’s biggest success stories. Over the past five years, its stock has surged nearly 240%, including a 50% gain in the last year alone. Investors are enamored with Costco’s predictable business model, which is built on membership-driven recurring revenue, cost efficiency, and impressive customer loyalty rate. […]
Netflix’s Strengths Shine, but Valuation Warrants Caution
With 278 million paid subscribers globally, Netflix has cemented itself as the leader in streaming. Over the years, Netflix has managed to figure out the economics of streaming, turning a capital-intensive endeavor into a profitable and efficient business. It has grown into the type of business I look for; one with a predictable revenue stream, […]
Tetra Tech Stock Analysis: Cautious Optimism For the Long-Term Investor
Tetra Tech (TTEK) is probably not a company you’ve heard of, but in this stock analysis, I hope to introduce you to a company worth knowing. Specializing in engineering and consulting services for water management, environmental sustainability, and infrastructure challenges, Tetra Tech is involved in industries that are both resilient and of vital importance. With […]
Three High-Quality Stocks on My Shopping List
Some investors buy stocks at their all-time highs, depending on the market’s confirmation of a company’s performance. Many times, however, those prices come with elevated valuations. I prefer to shop a bit smarter, waiting for high-quality companies to go “on sale”, or at least closer to a reasonable price. Markets often pullback due to an […]
Charles Schwab Stock Analysis: Risks Remain, But There May Be Value
Charles Schwab is considered a best of breed financial service company with $7.38 trillion in client assets. Following the collapse of Silicon Valley Bank (SVB) and the perceived weakness in the banking system stemming from rising interest rates, Charles Schwab stock fell more than 30%. This was due to fears that it too faced potential […]
Qualcomm Stock Analysis: An Objective Look
While in search of inexpensive, consistent dividend growth stocks, Qualcomm found its way back on my radar after the stock price fell over 30% from its highs at the beginning of 2022. At first glance, the company possessed confounding valuation metrics when compared to itself, other chip stocks and its growth rates warranting an objective […]
Disney: The Iger Premium
The Walt Disney Co. investors welcomed the return of Bob Iger as CEO. In November 2022, Disney’s board announced that CEO Bob Chapek was being replaced by the beloved former Disney CEO. Chapek had a tumultuous 11 month tenure at Disney during which the stock price declined by 40%. Chapek’s time as CEO of Disney […]
Disney: From Stalwart to Show-Me Story
SUMMARY: Disney’s DTC strategy has changed business from a stalwart to a show-me story. Disney’s financial performance and financial metrics have seen a dramatic shift that demonstrates the impact of the DTC business. While management has a plan for profitability for the DTC business, it is by no means a certainty. CNBC played passively […]