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- Top stock ideas (Mon, Mar 18)
Top stock ideas (Mon, Mar 18)
Connor Van Ooyen
March 18, 2024
👋 Good Morning!
This is the Yellowbrick Road where I share the best stock pitches from billion-dollar hedge funds, professional analysts, millionaire investors, and more!
Our AI read and summarized 143 stock pitches, 1241 news articles, and 254 insider trades and found:
A contrarian pitch for Foot Locker with 100%+ upside (stock pitch)
Uber, Lyft to stop operations in Minneapolis (news)
A CFO with 40% 3m returns bought the stock (insider trade)
and more…
Thanks for reading! Feel free to share this email with other investors who may like it.
Connor (follow the Yellowbrick Twitter account - @joinyellowbrick)
* If you missed yesterday’s email, don’t forget to read it here
ANNOUNCEMENTS
First, the more boring announcement. I’ve made this email quite a bit shorter. The most common complaint I got was that it was too long and it was getting cut off for a lot of people (especially those who use Gmail). So I tried to keep only the highest value sections. If you like it or hate it, please let me know!
Now, onto the big announcement.
The Yellowbrick website is live! It’s the best collection of stock pitches on the internet. It has over 2,000 of the best stock pitches with 25+ more added each day. It also has a bunch of filters you can use to research stocks you are interested in or find your next investment (for example, you could find all stock pitches for growth stocks that have a P/E under 20 and were pitched by a professional investment fund).
Everyone can use it for free with a 30-day delay on all of the stock pitches, but Premium subscribers get access to all of the stock pitches as soon as they are added every day. Premium subscribers will also get an extra email each day in the afternoon with a quick rundown of all of the new pitches added that day (you can opt out of this extra email).
If you are already a Premium subscriber, you should be able to log in on the website (the button is in the top right) and automatically get access. We will certainly run into issues as getting all of the subscribers switched over to my new system was pretty complex, so email me if you run into any problems.
Here is a video demonstration and a link to the website! (Oh yeah, you will also get 20% off of Yellowbrick Premium with the link below).
STOCK PITCHES
BLOG POST
Position Update: $FL Earnings
Foot Locker, Inc., through its subsidiaries, operates as a footwear and apparel retailer in North America, Europe, Australia, New Zealand, Asia, and the Middle East
Ticker: FL | Price: $23.18 | Price Target: $50 (+116%)
Market Cap: $2.2B | Timeframe: 12 months
👟 Footwear Retailer | 📈 Bullish Idea
Foot Locker, Inc. (Ticker: FL) faced a 30% stock drop post Q4 2023 report, due to subdued FY 2024 forecasts. Despite this, CEO Mary Dillon's Lace Up strategy aims for over 100% growth with a $50 target. Key achievements include improved Nike relations, solid same-store sales, inventory reduction, and progressing towards a $350 million cost-saving target. The strategy is enhancing off-mall presence, customer loyalty, and digital experiences, despite a dip in Q4 gross margin and adjusted long-term financial goals to 2028. Confidence remains for an earlier achievement of the 8.5%-9% EBIT Margin target.
Read the full article here. Read time: 3 min
Citizens Bancshares Corporation: Examining Low Valuation and Strong Balance Sheet
Citizens Bancshares Corporation operates as the holding company for Citizens Trust Bank that provides various commercial banking services to individual and corporate customers. The company offers checking and savings accounts; and demand and money market deposits
Ticker: CZBS | Price: $48.50 | Price Target: $70 (+44%)
Market Cap: $100M | Timeframe: N/A
🏦 Regional Bank | 📈 Bullish Idea
Citizens Bancshares Corporation trades at less than 6 times earnings and 70% of tangible book value. In the fourth quarter, net income increased 14% quarter-over-quarter, with an $8-9 earnings per share run rate. For the fiscal year 2023, Citizens earned $6.88 per share, or $8.28 per share adjusted for a one-time writedown. The adjusted book value per share is approximately $70. The company has low deposit costs at 49 basis points, and non-interest bearing deposits increased by 13.6%. Citizens Bancshares repurchased $4 million of shares (6-7% of outstanding shares) in the fourth quarter. The bank is overcapitalized and has significant growth tailwinds.
Read the full article here. Read time: 2 min
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FUND LETTER
Diamond Hill Capital Mid Cap Strategy New Position: Envista Holdings Corporation
Envista Holdings Corporation, together with its subsidiaries, develops, manufactures, markets, and sells dental products in the United States, China, and internationally. The company operates in two segments, Specialty Products & Technologies, and Equipment & Consumables
Ticker: NVST | Price: $21.50 | Price Target: N/A
Market Cap: $3.7B | Timeframe: N/A
🦷 Dental Products | 📈 Bullish Idea
Envista Holdings Corporation, trading under the ticker NVST, has established itself as a leading provider of dental consumables and equipment. In recent years, the company has strategically reshaped its portfolio to concentrate on products with higher growth and higher margins, alongside driving efficiencies in its business systems. Following a concerted effort to pay down debt, Envista now boasts a reasonable leverage ratio, positioning it well for potential future acquisitions. Furthermore, given the company's significant discount to medical devices and dental peers, we see Envista as an attractive investment opportunity. It represents a high-quality company with the potential for steady growth and margin expansion moving forward.
Read the full article here. Read time: 1 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ EXCO Resources ($EXCE) [46%]
🟨🟨⬜️⬜️⬜️ Nephros ($NEPH) [41%]
🟥⬜️⬜️⬜️⬜️ Jumbo Interactive Limited ($JIN.AX) [13%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 45% bullish
It finally happened! Yellowbrick Road readers are officially more bearish than bullish with only 45% of readers being bullish. The concern is not surprising after 3 of the 4 indexes were red on Friday and all of the indexes except the Dow Jones were red for the week. The news sentiment remains slightly bullish and the Fear v Greed index fell a few more points but is still well into the “Greed” segment.
Stock Market News
US FDA approves first drug for fatty liver disease NASH - Reuters
Jabil Stock Plunges as Sales and Guidance Miss Estimates on 'Revenue Headwinds' - Investopedia
McDonald's suffers global tech outage, rules out cybersecurity incident - Reuters
Uber, Lyft to stop operations in Minneapolis over minimum wage law - Reuters
Ulta Beauty's annual profit forecast misses estimates as costs climb - Reuters
Zillow, Redfin Among Real-Estate Stocks Falling After NAR Settlement - Investopedia
Hertz to replace CEO after ‘disastrous' bet on Tesla and EVs - Finbold
Apple buys startup DarwinAI, adds staff to its AI division, Bloomberg reports - Reuters
FEATURED INSIDER TRADE
The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
Executive VP and CFO at USCB FINANCIAL HOLDINGS, INC. ($USCB)
The Executive VP and CFO purchased 7,400 shares at $11.26/share ($83,346.94 total) which increased their vested holdings by 5.7%. The current price is $11.13 (-1.2%). Their median purchase size is $47,122.00 and this is their 2nd largest purchase out of 6 all time. (trade link)
Historic Returns
1m returns: 18% weighted | 18% median | 100% win rate (1/1)
3m returns: 41% weighted | 41% median | 100% win rate (1/1)
6m returns: 27% weighted | 27% median | 100% win rate (1/1)
1y returns: 20% weighted | 20% median | 100% win rate (1/1)
THAT’S ALL FOLKS
Thank you so much for reading today’s email! Your support is the only way I can write this email for free every day.
Give me feedback in the poll below and share the newsletter with other investors if you find it useful!
Connor
*Follow Yellowbrick on Twitter at @joinyellowbrick
How would you rate today's newsletter?If you vote 1 or 3 stars, please leave a comment with what you didn't like so I can improve it! |
Disclaimer: This contains a paid advertisement for Jurny’s Regulation CF offering. Please read the offering circular at https://www.startengine.com/offering/jurny.
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