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Top stock pitches (Fri, Aug 30)
Connor Van Ooyen
August 30, 2024
About // Sponsor YBR // Yellowbrick Website // Twitter
*This newsletter is for entertainment purposes only. Nothing in this newsletter is financial advice or recommendations.
👋 Good Morning!
Thanks for reading the Yellowbrick Road where I share the best stock pitches from fund letters, analyst reports, blogs, and more!
The three stock pitches you’ll read about in today’s email are:
Pinterest (PINS)
Author: Long-Term Pick | Price: $31.20 | Price Target: $58.21 (+86%) | Market Cap: $21.41B | Timeframe: N/A | Industry: Social Platform
Evolution AB (EVO.ST)
Author: Value Journal | Price: SEK 1067 | Price Target: SEK 1842 (+73%) | Market Cap: SEK 223B | Timeframe: N/A | Industry: long-term
Treehouse Foods (THS)
Author: Stock Pickers Journey | Price: $40.53 | Price Target: $60 (+48%) | Market Cap: $2.10B | Timeframe: N/A | Industry: Food/Beverage Manufacturer
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Feel free to share this email with any other investors that may like it.
Connor (follow the Yellowbrick Twitter account - @joinyellowbrick)
* If you missed yesterday’s email, don’t forget to read it here
YBR PORTFOLIO
The YBR Portfolio copies the trades of the top 10 investors (based on the average returns of their previous stock pitches) in our database of 1,000+ investors. If you want to be alerted when the best investors buy/sell a stock, then this section is for you.
*All investments in the YBR Portfolio will be for ~3% of the portfolio value (which allows us to hold a maximum of 33 stocks at a time).
New Trade Alert!
We just made a new trade in the YB Premium Portfolio and are copying one of the best investors in our database who runs a professional fund and has pitched 63 stocks with average returns of:
3m return | 1y return | 2y return |
|---|---|---|
12% | 30% | 42% |
The new stock is…
The YBR Portfolio is only available to Premium Subscribers. If you want to know which stocks the top investors are investing in, upgrade to Yellowbrick Premium.
YB Premium Portfolio returns - started mid-May
STOCK PITCHES
Author Returns
The below stock pitch is from Long-Term Pick.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
BLOG POST - Long-Term Pick
The Most Undervalued Social Media Stock. PINS Stock Analysis
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally.
Ticker: PINS | Price: $31.20 | Price Target: $58.21 (+86%)
Market Cap: $21.41B | Timeframe: N/A
📱 Social Platform | 📈 Bullish Idea
Pinterest (PINS) is a unique visual discovery platform with 522 million monthly active users, bridging social media and e-commerce. The company reported strong Q2 2024 results with revenue up 21% YoY and is focusing on enhancing its ad platform, expanding e-commerce capabilities, and driving international growth. Pinterest's economic moat stems from its brand asset and network effect, with a loyal user base and innovative advertising products. The company faces challenges from intense competition and demographic skew but has potential for significant international expansion. Analysts project continued strong growth, with a median 1-year price target of $43.50, representing a 40.28% upside. Pinterest's capital allocation strategy prioritizes R&D and platform enhancements, with strong cash flow generation and no debt. The stock is currently trading at $31, which is 46.73% below the calculated fair value of $58.21, based on a 20% growth rate and 12% discount rate over 10 years. Key risks include competition from tech giants and potential challenges in monetizing international users.
Read the full article here. Read time: 14 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/11212/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Value Journal.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
BLOG POST - Value Journal
Evolution: A wonderful Growing Company at an Undervalued Price
Evolution AB (publ) develops, produces, markets, and licenses online casino systems to gaming operators in Europe, Asia, North America, Latin America, and internationally.
Ticker: EVO.ST | Price: SEK 1067 | Price Target: SEK 1842 (+73%)
Market Cap: SEK 223B | Timeframe: long-term
🎰 Online Casino Systems | 📈 Bullish Idea
* I recommend using Interactive Brokers link to trade international and OTC stocks if you can’t trade them in your current brokerage
Evolution AB (EVO.ST), a leading B2B provider of live casino and RNG games, boasts impressive financials with a 50%+ CAGR and 60%+ margins over the past decade. Currently trading at 17x P/E compared to its 5-year average of 34x, a DCF analysis suggests the stock is 45% undervalued. The company benefits from a strong moat due to its scale, experience, and regulatory compliance, positioning it well in the expanding online gambling market. Key growth drivers include increasing regulation and market share of online gambling globally. However, risks include potential regulatory changes, particularly in grey markets which account for 60% of revenue, and competition pressures. The company's management team, led by CEO Martin Carlsund, has significant insider ownership. Evolution's future prospects appear promising, with projected low to mid-teen percentage growth rates in the online gambling market over the next five years.
Read the full article here. Read time: 16 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/11038/?ref=PLACEHOLDER
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Author Returns
The below stock pitch is from Stock Pickers Journey.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
BLOG POST - Stock Pickers Journey
Getting Organized - Consumer Staples - Treehouse Foods
TreeHouse Foods, Inc. manufactures and distributes private brands snacks and beverages in the United States and internationally.
Ticker: THS | Price: $40.53 | Price Target: $60 (+48%)
Market Cap: $2.10B | Timeframe: N/A
🥤 Food/Beverage Manufacturer | 📈 Bullish Idea
I'm bullish on Treehouse Foods, ticker THS, with a price target of $60. Having analyzed consumer staples stocks for four decades, I find big cap stocks a tad dull, yet the mid-cap sector offers many interesting prospects. THS stands out as my second choice because I'm a fan of the generics business and their restructuring efforts are beginning to yield results. I believe their earnings can return to $4 per share, and applying a market multiple of 15x, my target rounds off to $60.
Read the full article here. Read time: 1 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/11292/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Medpace Holdings (MEDP) [50%]
🟨🟨⬜️⬜️⬜️ Natural Resource Partners L.P. (NRP) [35%]
🟥⬜️⬜️⬜️⬜️ Nicholas Financial (NICK) [15%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 56% bullish
Everyone is surprisingly bullish (according to our indicators) considering the Nasdaq and S&P are both slightly down for the week. The news sentiment and Fear v Greed index have both been creeping up all week and the Fear v Greed index entered “Greed” territory for the first time in a long time.
Stock Market News
Dollar General shares crater 20% as retailer cuts outlook, blaming 'financially constrained' customers - CNBC
Lululemon cuts guidance, misses sales estimates after botched product launch - CNBC
Affirm shares surge 34% and head for best day in three years after earnings beat - CNBC
Best Buy raises full-year profit guidance after earnings and revenue beat - CNBC
Apple in talks to join OpenAI funding round, WSJ reports - Reuters
Intuitive Machines gets $116.9 mln NASA contract for delivery to Moon's south pole - Reuters
Ulta misses Wall Street expectations, trims guidance after quarterly sales decline - CNBC
FEATURED INSIDER TRADE
The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
Director at Texas Community Bancshares, Inc. ($TCBS)
The Director purchased 15,000 shares at $13.99/share ($210K total) which increased their vested holdings by 19.6%. The current price is $14.20 (+1.5%). Their median purchase size is $210K and this is their 2nd largest purchase out of 3 all time. link
Historic Returns
1m returns: 12% weighted | 7% median | 50% win rate (1/2)
3m returns: 8% weighted | 8% median | 100% win rate (1/1)
6m returns: 16% weighted | 16% median | 100% win rate (1/1)
1y returns: N/A
LINKS YOU’LL LOVE
🎁 REFERRAL PROGRAM 🎁
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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.
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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! |
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