Nerdy, Inc. is an online platform for live learning and instruction that is expected to experience sustained revenue growth driven by the expansion of the DTC learning market and customer monetization. The company reported strong Q1 results and successfully transitioned to a membership model, with memberships accounting for 60% of Q1 revenue. Nerdy has significant growth opportunities in the global supplemental education market and consistently achieves high session ratings and a favorable NPS score of 68. The company is undervalued compared to its peers, with a price target of $4.5 based on 2x FY24E revenue of $252 million. Risks to the rating include the slowing shift towards online learning, declining enrollment rates, and increased competition in the digital shift towards online education. Despite these risks, Nerdy is still in the early stages of its business cycle and has witnessed increased adoption of its product even after the vaccine rollout and the reopening of schools in fall 2021. The stock is viewed as a buy with an end-of-year price target of $4.5.

The author has a positive outlook on Block and has set a $109 share price target. Block has two growth engines: Cash App and Square ecosystem, which create touchpoints with an underserved user in a large market. Q1 2023 results were strong, beating both top and bottom-line forecasts for growth, likely due to Jack Dorsey's return to the business. Financial highlights include revenue of $4.99 billion, a 25.99% YoY increase, driven by higher Bitcoin transactions and a 55% rise in Bitcoin price. Subscription and services revenue increased by 42% YoY, making up 27.9% of total revenue, and gross profit grew by 32% YoY. Cash App inflows rose by 27% YoY to $61 billion, and Square GPV increased by 17% YoY. Block reported a $6 million operating loss in Q1,23, a significant improvement from the $135 million loss in Q4,22. The author values Block using a discounted cash flow valuation model and forecasts continued growth in the cash app and international markets. The author's valuation model indicates that Block is undervalued by 53% and is a solid buy for long-term investors. The author notes that the forecasted recession may impact Square's SMB revenue and cash app, but believes that Block is a diversified company with potential in other bets such as Spiral and TBD.

The semiconductor industry has seen a rise in share prices, leading to concerns about a potential bubble. However, BE Semiconductor Industries (BESI), a Dutch-based assembly equipment supplier, has consistently generated strong returns and has a solid balance sheet. BESI is a dominant first mover in Hybrid Bonding technology, which has the potential to replace the entire market below 7nm and offers significant cost and spacing improvements. The company has signed deals with major players in the industry and targets 250 Hybrid Bonding tools by 2026, which would equate to around $538m in revenue. BESI has a clear advantage as the leader and first mover in the space, with a 1-2 year head start over competitors. The company has a goal to reach revenues north of €1bn by 2025, and a DCF valuation suggests a USD target price of $137.60, with potential dividends of around $7.00 per share and a dividend yield of over 6% at current prices. Despite concerns about the sector and BESI's YTD rally, the company still has attractive total return potential, with a solid line of sight into future earnings growth and potential for great upside potential and an attractive income stream.

Phillips 66 is a multinational energy company that has recovered well after a tough couple of years during the pandemic. The stock price has yet to reflect this, but there is good value in the forward outlook, and there is also notable income to be gained through dividends and share buybacks. The stock has underperformed the S&P 500 year-to-date, but there is significant positive support from institutional players. The company's fundamentals are strong, with impressive financial results, encouraging trends in margin growth, and greater diversification in both product mix and geographic mix. Management is making a significant effort to maximize shareholder returns, with plans to perform share buybacks and consistently paying dividends. The stock is undervalued compared to industry peers, and there is a strong correlation between Phillips 66's stock performance and WTI crude oil prices. Downside risks include a potential hard-landing and recessionary period for the US economy and regulatory pressure on sustainability reform and decarbonization. Overall, Phillips 66 is an exciting stock that has recovered strongly since the pandemic and is exhibiting attractive characteristics from both income and value perspectives. It has a 23% upside and pays a 4.16% dividend.

The article presents a bearish view of Bluebird Bio, stating that the company is in a death spiral with dwindling drug prospects and a drying runway. Management has abandoned the company, and projections made by Bluebird Bio rely on old and inaccurate data. The company's treatments are extraordinarily expensive, and the potential eligible patients for Bluebird Bio's treatments are far fewer than the company portrays. Bluebird Bio's recent reports were filled with disappointing news, and the company has lost its early mover advantage in the treatment space. The ongoing uncertainty around the insurance coverage of their treatment poses another ongoing risk. Bluebird Bio's Zynteglo treatment for a deadly disease has low patient interest, with only 2.5-3% initiating the verification process in four months. The company has been cherry-picking and arranging clinical trial data to portray a brighter truth than reality, with discrepancies and inconsistencies in their latest presentation. Bluebird Bio's Zynteglo treatment for anemia has a high percentage of patients still in an anemia state after receiving the injection, with uncertainty around follow-up treatments, costs, and side effects. BlueBird is facing longstanding legal battles over misappropriated/abused IP of other firms, which could seriously impact the company's future.

Danaos is a shipping company that is currently undervalued and worth researching as a hard asset, deep value choice with almost no debt. The company has effectively paid off all of its debt after the boom in shipping rates since the COVID pandemic started, and now owns its fleet outright with a fortress balance sheet. This makes it insulated from a recession in the cyclical industry. Despite its high margins and little debt, Danaos is currently trading at a significant discount compared to the shipping group's median average of EV to forward estimated EBITDA. The author predicts that Danaos may trade above book value in 2024, given its zero net debt and high margins. The technical momentum background is constructive, with a recent "Golden Cross" achieved on June 5th, indicating imminent gains. Wall Street analysts forecast strong EPS and sales for Danaos during 2023-25. The biggest long-term risk to investment gains is a severe and prolonged recession, but Danaos should survive better than peers and competitors due to its zero net debt foundation. The author rates Danaos shares as a Strong Buy in the low-$60s.

CBOE Global Markets is a major exchange operator with exclusive rights to offer futures and options products linked to the S&P 500 and VIX Indices, giving them monopoly-like benefits including pricing power. The adoption of one-day-to-expiry (ODTE) options has exploded in the last 6 months, accounting for roughly half of daily trading activity for all options in the US and representing a significant driver of profitability for CBOE. CBOE's business is split into US and international stock exchanges and clearing houses. CBOE has been investing heavily in recent years to grow their international operations, which has temporarily lowered estimates for profit margins in 2023 but should increase future revenues and profitability. Due to increasing adoption of options and institutional investor preference for ODTE options, CBOE can grow their top line 6-10% over the next several years, with EPS in the low double digits and operating margins recovering to the 48-55% range in 2024 and beyond. The author believes the current share price does not reflect the potential profitability from ODTE options and international growth and that a more appropriate multiple is 19-22x forward earnings estimates. The author has started building a position in CBOE at $130 a share, just below the low end of the estimated fair value range.

The article discusses the recent performance of footwear brand Crocs, which has seen its stock price decline since the author's previous write-up in March. Despite this, the company had a strong Q1, with revenue growth of 34% and adjusted EPS beating analyst expectations. The HEYDUDE brand, which Crocs owns, is on track to become a $1 billion in sales footwear brand. However, Q2 guidance disappointed investors, with revenue growth forecasted at 6-9% and adjusted EPS below analyst expectations. Crocs raised its full-year guidance and boosted its Crocs brand revenue forecast for the year. The company's Asian revenue increased by 55% in constant currencies, with China revenue up by 110%. The author believes that the reaction to Crocs' earnings report was not justified, and the sandals and international expansion opportunities are on track. The author thinks the stock has upside potential to over $200 and is in "Strong Buy" territory.

T-Mobile US, Inc. has experienced declining EPS due to costs associated with their merger with Sprint, but 2023 is expected to be a bounce-back year in profitability. Management has handled the integration well, containing costs to a 3-4 year period while adding 40 million customers to their platform. The last $1 billion of merger-related costs are expected to be mostly realized by the end of 2023, while management expects to realize 7.3 to 7.5 billion in merger synergies in 2023. Consensus expectations are for EPS to increase substantially in 2023 and then continue to grow. The author assigns a weight of 60% to their base case, 10% to the best case, and 30% to the worst-case scenario. The sum of the weighted PVs is $191.19, implying ~44% upside from current levels. The author uses PEG analysis to compare market pricing to consensus estimates for TMUS. The PEG ratio indicates that TMUS is undervalued. Risks for TMUS include competition from smaller players and its indebtedness. The author expects TMUS to improve profitability in 2023 due to increased synergies and reduced costs from their recent merger. Both scenario analysis and PEG analysis point to TMUS being undervalued, leading the author to rate TMUS stock a buy.