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Top stock pitches (Tue, Jul 30)
Connor Van Ooyen
July 30, 2024
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*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:
Agilent Technologies, Inc. (A)
Author: From $100K to $1M | Price: $137.38 | Price Target: $168 (+22%) | Market Cap: $40B | Timeframe: N/A | Industry: Life Sciences
RADCOM Ltd. (RDCM)
Author: Rogue Funds | Price: $10.02 | Price Target: N/A | Market Cap: $153M | Timeframe: N/A | Industry: 5G / Telecom
Mercury Systems (MRCY)
Author: zax382 | Price: $35.08 | Price Target: $50 (+43%) | Market Cap: $2B | Timeframe: 18 months | Industry: Defense Technology
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Connor (follow the Yellowbrick Twitter account - @joinyellowbrick)
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STOCK PITCHES
Author Returns
The below stock pitch is from From $100k to $1M.
We have 2 stock pitches from them in our database and their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
BLOG POST - From $100K to $1M
Agilent Technologies, Inc. - $A
Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The company operates in three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
Ticker: A | Price: $137.38 | Price Target: $168 (+22%)
Market Cap: $40B | Timeframe: N/A
🧪 Life Sciences | 📈 Bullish Idea
Agilent Technologies, a global leader in life sciences and diagnostics with a #1 or #2 position in its markets, trades at a fair value of 31x PE. The company benefits from strong margins, consistent FCF generation, and 56% recurring revenue. With 6-8% market growth projected, Agilent is well-positioned across diverse end markets and geographies. Recent developments include doubling API capacity for oligonucleotides, targeting a $3.3B market opportunity, and acquiring BIOVECTRA to expand biologics and GLP-1 capabilities. While the company faces competition from larger players like Danaher and Thermo Fisher, its niche dominance and healthy margins mitigate this risk. The appointment of a new CEO, Padraig McDonnell, introduces some uncertainty but is balanced by his long-term experience with the company. A DCF analysis suggests a price target of $168, with potential upside from the growing biopharma segment, which has shown a 30% 4-year CAGR.
Read the full article here. Read time: 8 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7230/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Rogue Funds.
We have 13 stock pitches from them in our database and their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
FUND LETTER - Rogue Funds
Rogue Funds New Position: RADCOM Ltd.
RADCOM Ltd. provides 5G ready cloud-native, network intelligence, and service assurance solutions for telecom operators or communication service providers (CSPs).
Ticker: RDCM | Price: $10.02 | Price Target: N/A
Market Cap: $153M | Timeframe: N/A
🗼 5G / Telecom | 🇮🇱 Israel | 📈 Bullish Idea
RADCOM Ltd. (RDCM), an Israeli 5G assurance company, is experiencing strong growth and profitability despite recent leadership changes. The company has secured multi-year agreements with major 5G firms in Asia and Europe, exceeding expectations in sales and execution. RDCM's strategic shift from R&D to marketing has yielded positive results, with the sales team performing exceptionally well. The company maintains a strong cash position, which management plans to use for potential M&A or share buybacks if suitable acquisition targets are not identified. Despite improved performance and execution, RDCM's stock price has been declining, creating an attractive buying opportunity. The stock is currently the fund's 5th largest position, with further details to be published in an upcoming article.
Read the full article here. Read time: 1 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7138/?ref=PLACEHOLDER
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Author Returns
The below stock pitch is from zax382.
We have 2 stock pitches from them in our database and their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
VALUE INVESTORS CLUB - zax382
Mercury Systems, Inc. - $MRCY
Mercury Systems, Inc., a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific.
Ticker: MRCY | Price: $35.08 | Price Target: $50 (+43%)
Market Cap: $2B | Timeframe: 18 months
🛡️ Defense Technology | 📈 Bullish Idea
Mercury Systems (MRCY), a defense technology supplier, is undergoing a turnaround led by new CEO Bill Ballhaus. The company's stock, currently trading at $30, has potential to reach $50+ in 18 months as FY25 (beginning July 1) is expected to be the first 'clean' year after addressing operational issues. MRCY has reduced challenged programs from 19 to 8, with no new issues emerging in recent months. The company maintains strong customer relationships, record backlog, and solid bookings. Ballhaus, with a track record of successful exits, aims to restore profitability and growth. FY25 EBITDA projections range from $160M to $240M, with potential for multiple expansion. Risks include new operational issues and customer abandonment, while catalysts include FY25 guidance and continued turnaround progress. High short interest (8.5%) and low analyst expectations provide potential upside. The company's unique position in growing defense markets, including space and missile defense, supports long-term growth prospects.
Read the full article here. Read time: 13 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7167/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Antero Midstream Corporation (AM) [48%]
🟨🟨⬜️⬜️⬜️ Clarivate Plc (CLVT) [31%]
🟥⬜️⬜️⬜️⬜️ Kaspi.kz (KSPI) [21%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 58% bullish
Stock Market News
McDonald's posts surprise drop in quarterly global sales as spending slows - Reuters
Apple's artificial intelligence features to be delayed, Bloomberg News reports - Reuters
Microsoft's costs in focus as fears rise over slow payoff from AI - Reuters
Delta Air Lines to seek compensation over cyber outage, CNBC reports - Reuters
Tesla jumps on replacing Ford as Morgan Stanley's 'top pick' in US auto sector - Reuters
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THAT’S ALL FOLKS
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Connor
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