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Top stock pitches (Wed, Jul 17)

Top stock pitches (Wed, Jul 17)

Connor Van Ooyen
July 17, 2024

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STOCK PITCHES

Author Returns

The below stock pitch is from @BlueDuckCap.

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.

TWITTER - @BlueDuckCap

McDonald's Digital Expansion: A Catalyst for Future Growth

McDonald's Corporation operates and franchises restaurants under the McDonald’s brand in the United States and internationally.

Ticker: MCD | Price: $257.27 | Price Target: N/A
Market Cap: $185B | Timeframe: N/A

🍔 Fast Food Restuarant | 📈 Bullish Idea

McDonald's Corporation (MCD) is trading at a PE of 19-20x, below its historical median of 23x, suggesting the market may be undervaluing its impressive mobile app and loyalty program. The MCD app was downloaded 127 million times in 2022, surpassing popular food delivery apps like UberEats (60M) and DoorDash (42M). In the US alone, it garnered 40 million downloads, exceeding the combined total of the next three most popular food apps. The company's loyalty program, accessible through the app, boasts 150 million 90-day active users globally, generating over $20 billion in systemwide sales, with a target of 250 million users by 2027. The MyMcDonald's rewards feature, launched in 2021, enhances customer stickiness through promotions for regular users. This powerful customer mousetrap, combined with the current cycle-low PE, presents an attractive investment opportunity that may be underappreciated by the market.

Read the full article here. Read time: 1 min

Author Returns

The below stock pitch is from SlackTide.

Their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.

VALUE INVESTORS CLUB - SlackTide

CNH Industrial N.V. - $CNH

CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific.

Ticker: CNH | Price: $10.58 | Price Target: $22.75 (+115%)
Market Cap: $13.30B | Timeframe: 2026

🌾 Agricultural Equipment | 📈 Bullish Idea

CNH Industrial, the second-largest agricultural equipment manufacturer globally, is trading at 7x depressed earnings and offers significant upside potential. With a strong market position in a consolidated industry, CNH benefits from aggressive share buybacks and conservative finances despite its Finco segment. The company's undervaluation stems from fears of an agricultural slowdown and recent Milan delisting, which caused forced selling by European passives. CNH boasts a 30% ROE and has a 2026 price target of $22.75 (113% upside) based on 13x $1.75 EPS. The company's agriculture segment, comprising 80% of revenue, holds leading market shares in most regions, while the construction segment shows improvement potential. Recent operational enhancements and cost-cutting measures are expected to boost profitability. Risks include a prolonged agricultural downturn and multiple compression, while catalysts include estimate revisions and continued share repurchases. With Exor's 29% ownership and a focus on simplifying corporate structures, CNH presents an attractive investment opportunity in the agricultural equipment sector.

Read the full article here. Read time: 5 min

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Author Returns

The below stock pitch is from Stonks's Substack.

We have 8 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 - Stonks's Substack

What's in my Deep Value Portfolio? - Currency Exchange International, Corp.

Currency Exchange International, Corp. provides foreign exchange technology and processing services in North America.

Ticker: CURN | Price: $19.19 | Price Target: N/A
Market Cap: 168M | Timeframe: 3 years

🪙 Foreign Exchange Technology | 📈 Bullish Idea

Currency Exchange International, Corp. (CURN/CXI.TO) is a rapidly growing foreign currency exchange and payments services company operating in the US and Canada. With a market cap of $127 million and $107 million in net cash ($80-90 million as working capital), the company is one of only three licensed suppliers of freshly printed US dollar banknotes to banks worldwide. CURN benefits from multiple tailwinds and growth opportunities, and is led by competent management, including a CEO who owns approximately 20% of the company's shares. The stock trades at a low valuation despite its strong growth potential, ongoing share repurchases, and low potential downside risk in the next three years. As an additional note, the stock is dual-listed, trading as CXI.TO on the Canadian exchange.

Read the full article here. Read time: 1 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ PAR Technology Corporation ($PAR) [40%]

🟨🟨⬜️⬜️⬜️ Spotify ($SPOT) [36%]

🟥⬜️⬜️⬜️⬜️ Day One Biopharmaceuticals ($DAWN) [24%]

Your comments:

🧪 qagu*** ($DAWN): Best market analysis showing market and margin growth. Best forward moving product with clear objectives based on opportunity.

MARKET OVERVIEW / NEWS

Market Overview

Are you short-term bullish or bearish on the market?

Yesterday’s Poll Results: 50% bullish

*Today’s news is brought to you by DeFi Technologies Inc. Defi initiated a massive buyback program. This move signals that they believe the stock is significantly undervalued and expect it to rise. Check out DeFi Technologies listed under the ticker code DEFTF on the OTC.

Stock Market News

Morgan Stanley shares drop after wealth management misses on plunging interest income - CNBC

UnitedHealth beats quarterly profit estimates on healthcare unit boost - Reuters

US retail sales unchanged in June, beating forecasts for slight drop - Reuters

Brokerage Charles Schwab's profit falls on weaker interest income - Reuters

Adidas increases 2024 earnings guidance after second-quarter beat - Reuters

Taboola scores Apple advertising deal, shares surge - Reuters

LINKS YOU’LL LOVE

Seth Klarman: Why Most Investment Managers Have it Backwards

Mark Leonard Business History lesson

Why smart companies commoditize their product’s complements

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