Carvana has received a debt-for-equity swap proposal from its creditor group, raising concerns about financial challenges and possible bankruptcy. Short sellers have a high interest in the company, with 66% of float shares being shorted. However, the author believes Carvana can survive and be a good investment. Despite skepticism about Carvana's online used car business model, the company serves a wide range of customers and has experienced record website visits in 2023. Carvana has $3.9 billion in liquid assets and $1 billion in financial receivables, and its bond price trades at a premium to its book value, suggesting bankruptcy is not imminent. The used car market is showing early signs of stabilization, and Carvana's business model promotes transparency in pricing. The author has a strong buy rating for Carvana's stock, considering the balance of risk and reward.

Advanced Micro Devices (AMD) is the second-largest player in x86-based microprocessors and a top player in graphic processors. AMD has gained market share in CPUs for the data center and client space, as well as in console gaming and embedded business. AMD introduced its Instinct MI300 Series accelerator family to compete with Nvidia's AI chips, along with new iterations of its EPYC data center processors and Ryzen 'Zen 4' processors for high-end PCs and workstations. AMD issued cautious 2Q23 guidance on revenue due to challenging PC demand, but analysts expect sequential recovery in the second half of the year. AMD has numerous strategic partnerships that allow for collaboration in technology advances. AMD is well-positioned in the AI hardware space with its Instinct MI300X Accelerator and programmable logic device business. AMD's revenue and margin growth potential, and ongoing market share gains at Intel's expense, are not fully reflected in current prices, and the author reiterates a BUY rating with a 12-month target price of $170, raised from $100.

Match Group, a provider of online dating products, posted its second consecutive year-over-year quarterly revenue decline, but the overall takeaway from the first quarter results was positive. The company has a longer-term capital allocation strategy to return at least 50% of free cash flow to shareholders, more likely in the form of share buybacks. Match Group has a narrow economic moat, thanks to network effects that continue to drive top- and bottom-line growth. The company generates user fee revenue (95%) and advertising revenue (5%) from its more than 45 brands of online dating sites and/or apps. Match Group's dating portfolio consists of four of the top five brands in North America, including the number one: Match.com. The company has successfully created a network effect for its entire portfolio of services that is becoming more mainstream by creating and acquiring various online dating products that each serve different people in terms of demographics, location, and culture. However, low barriers to entry in online dating apps could lure Match Group users and result in disappointing paid member count and revenue growth. The company also faces environmental, social, and governance risk related to data privacy and security. The fair value estimate for Match Group is $70 per share, with projected revenue growth and margin expansion through 2027.

The author's top pick this year is Amazon (AMZN), which they believe is undervalued due to investors not appreciating the monopolistic position of Amazon's e-commerce platform. Despite not looking as profitable as other mega-cap tech peers, the company has invested aggressively into long-term investments, creating an attractive investment opportunity for those willing to forego current earnings for greater long-term rewards. The recent quarter saw revenue grow 9% to $127.4 billion, driven by strong double-digit sales growth and a return to profitability in the North American e-commerce segment. AWS also delivered solid results, with revenue growing 16% YoY. The author believes that AMZN's market cap is significantly lower than its potential value, with AWS having the potential to be valued at $800 billion and the e-commerce segment at $440 billion. Assuming conservative growth and margin assumptions, the total value of AMZN could be around $2 trillion, suggesting a potential 50%+ upside over the next 12 months. However, there are risks to growth and margin assumptions, and if AWS growth does not return or e-commerce operations do not drive margin expansion, the estimated value drops considerably. The author has a strong buy rating on AMZN and it is their largest position.

The real estate sector is still impacted by fear and pessimism over monetary tightening, leading to high-quality opportunities trading at deep discounts. Bridge Investment Group Holdings Inc (BRDG) may have been underappreciated by investors, and the collapse in its share price seems unwarranted. BRDG reported a GAAP net operating loss of $67 million in Q1 2023, mainly driven by an unrealized loss of $107 million related to accrued performance allocations and valuation reductions to selected real estate assets. BRDG has been slashing dividends, which led to the sell-off in the company's stock price. However, BRDG is trading at just 12.1x forward P/E and 10.6x TTM P/E, with a TTM dividend yield of 8.35%. The author initiates coverage of BRDG with a "Strong Buy" rating, as current valuations look extremely compelling, and BRDG is well-positioned to benefit from the current market environment. BRDG has accumulated substantial dry powder worth $4.4 billion, giving them the flexibility to pursue opportunities to deploy funds in the coming quarters. The U.S. housing shortage is the most important factor explaining why the real estate market has been so resilient thus far, except for commercial office property.

Citigroup is undervalued compared to the S&P 500, with a P/E ratio of just 8x its 10-year average earnings. Despite diluting shareholders in 2009, Citigroup has grown its earnings per share at a compound annual growth rate of 5.7% since 1987. Citigroup's stock is cheap due to concerns about uninsured deposits, but unlike other banks with high levels of uninsured deposits, Citigroup's deposits are diversified across industries and geographies. Its global presence and ability to serve thousands of businesses, as well as its ability to repurchase shares and acquire other financial institutions, will drive future growth. Citigroup's Institutional Clients Group has a strong moat due to its global network, moving $4 trillion every day, and is difficult to replicate. Citigroup's wealth management business is improving and adding more fee-based revenue to drive improved returns. Citigroup has a solid balance sheet, diversified customer base, and sticky deposits, giving it a lighthouse quality and allowing it to gain deposit share against competitors. Citigroup appears to have excess liquidity, which could improve profitability if put to use. The author estimates compound annual returns of 15% for Citigroup in the decade ahead (and 70% upside over the next few years) and maintains a "Strong Buy" rating for the stock

The author recommends buying R1 RCM Inc. stock with a price objective of $24 (upgraded from $20), as the company is performing well on its business KPIs and operating metrics, with sales and earnings growing above peers in a high-growth market. RCM has forward earnings growth, high returns on capital, and durable business economics. The company had a strong start to FY'23 with 41% YoY growth in revenue and c.60% upside in adj. EBITDA. RCM's deep experience in revenue cycle management is a major advantage due to high switching costs and high-end software required to participate in the niche segment. The healthcare RCM market is valued at $115Bn and growing at roughly 10-12% annually, providing a sizable runway for growth. RCM's business economics have improved, with incremental profit gains and strong economic earnings above the hurdle rate resulting in a c.16% return on incremental capital and 4% economic profit. The author recommends buying RCM based on supportive data, including three major catalysts for price change and supportive valuations when looking at the projected value of the company's cash flows.

Alkermes plc has seen a 15% return and has potential for future growth. The company has three core objectives that could be strong tailwinds for ALKS: arbitration with Janssen and subsequent royalty stream, growth outlook, and exceptional economic characteristics of the business. The arbitration with Janssen has favourable implications for the company's financials, including back royalties and extended royalty terms for its products. ALKS stands to benefit from Janssen's sales of competing products, supporting the growth of its proprietary product portfolio. Sales data for LYBALVI shows strong growth, and ALKS generates superb returns on the capital it allocates. The author believes that ALKS could become a $300mm FCF company by FY'24, leading to an equity value of $115. ALKS trades at 0.69x PEG, indicating tremendous earnings growth projected on the horizon. The author projects a reasonable upside of $65 per share, a potential increase of 106% from the current market price. The author's findings are supported by data examined and scrutinized by the quant system, which also found strengths in ALKS on valuation, growth, and profitability. The author reiterates a buy recommendation with a revised price objective of $65 and eyes on a $115 price target further down the line.

The article provides an overview of Boeing's performance in May 2023, including orders, deliveries, and other order book mutations. Despite near-term pressures, Boeing has been outperforming the broader market year-to-date, with a backlog of over 5,000 airplanes valued at nearly $400 billion. The return of Boeing 737 MAX airplanes in China is trending strongly, paving the way for deliveries and new orders from Chinese operators. Boeing will open a fourth production line for the Boeing 737 MAX, which could see the company pushing single aisle production towards 80 airplanes a month in the second half of the decade. The author has added to their position in Boeing and believes that any stock price weakness offers an opportunity for the long-term investor. Seeking Alpha authors have a Hold rating on the stock, while Wall Street analysts have a Buy rating. Valuing Boeing at 16 to 17 times free cash flow generation gives a $265 to $280 price target based on the outlined trajectory towards mid-decade targets. The article concludes that Boeing stock is a buy for the future, with around 30% upside potential.