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Top stock pitches (Wed, Jul 24)
Connor Van Ooyen
July 24, 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:
Shift4 Payments (FOUR)
Author: Exit Velocity Investing | Price: $68.16 | Price Target: $184.62 (+171%) | Market Cap: $6.04B | Timeframe: N/A | Industry: Payment Processor
Hasbro (HAS)
Author: Stock Pickers Journey | Price: $58.95 | Price Target: N/A | Market Cap: $8.11B | Timeframe: N/A | Industry: Toys / Video Games
Microsoft Corporation (MSFT)
Author: Monopolistic Investors | Price: $443.71 | Price Target: N/A | Market Cap: $3.31T | Timeframe: N/A | Industry: Software
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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).
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.
Current return of the Premium Portfolio (started in late May)
STOCK PITCHES
Author Returns
The below stock pitch is from Exit Velocity Investing.
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 - Exit Velocity Investing
Shifting Into Gear with Shift4 Payments
Shift4 Payments, Inc. provides software and payment processing solutions solutions in the United States and internationally.
Ticker: FOUR | Price: $68.16| Price Target: $184.62 (+171%)
Market Cap: $6.04B | Timeframe: N/A
💳 Payment Processor | 📈 Bullish Idea
Shift4 Payments (NYSE: FOUR) is an innovative payments processor trading at $67.28 with a $184.62 price target, offering 171% upside. The company recently declined buyout offers, with CEO Jared Isaacman backing his decision with $8.2M in insider buys. Shift4 has demonstrated strong growth, with a 53% CAGR in end-to-end volume and 42% in gross profit since Q1 2020, now processing $130B in annual volume with a $1B revenue run-rate. The company's competitive advantages include 500+ software integrations, high switching costs, and network effects, particularly in the sports and entertainment vertical. Strategic growth levers include international expansion, M&A opportunities, ARPU increases, and gateway conversions. Shift4's diverse customer base spans restaurants, hotels, retail, and entertainment venues, with potential for further margin expansion through scale and gross profit uplifts. Risks include potential volume decreases during a recession, though the company's focus on higher-end consumers may mitigate this impact. With a projected 25.54% 10-year return and a recently approved $500M share repurchase program, Shift4 presents an attractive investment opportunity in the payments sector.
Read the full article here. Read time: 8 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7019/?ref=PLACEHOLDER
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
Lessons Learned + Hasbro?
Hasbro, Inc., together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments.
Ticker: HAS | Price: $58.95 | Price Target: N/A
Market Cap: $8.11B | Timeframe: N/A
🧸 Toys | 🕹️ Video Games | 📈 Bullish Idea
Hasbro (HAS) at $60 presents a compelling investment opportunity with new management revitalizing the company since late 2022. The Wizards of the Coast brand has transformed Hasbro into a significant digital player, focusing on sci-fi and fantasy games. With potential for $1 billion in EBITDA, HAS trades at 8-10x, offering room for multiple expansion towards Electronic Arts' 17x. The stock yields 4.5% while management rationalizes old brands and implements significant inventory cuts. Q2 earnings will be crucial to watch. HAS outperforms peers like Mattel (MAT) and appears undervalued compared to other 4-5% yielders. Although expectations are somewhat high with 11 buys and 3 sells, HAS's recent large divestiture may have influenced analyst recommendations. The company's digital focus, yield, and potential for growth make it a top 30 idea, with the possibility of further upside as the new strategy unfolds.
Read the full article here. Read time: 4 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/6736/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Monopolistic Investors.
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 - Monopolistic Investors
Top 3 Best value stocks, I'm buying next - Microsoft Corporation
Microsoft Corporation develops and supports software, services, devices and solutions worldwide.
Ticker: MSFT | Price: $443.71 | Price Target: N/A
Market Cap: $3.31T | Timeframe: N/A
💻 Software | 🤖 AI | 📈 Bullish Idea
Microsoft Corporation, with the ticker MSFT, is a standout leader in the technology category that you should consistently consider adding to your portfolio. The company's revenue is on an impressive upward trajectory. Looking at the forecast and past revenue growth, it's quite evident that Microsoft shows no signs of slowing down. Not only is Microsoft a dominant force in the operating system space, but it's also the biggest investor in OpenAI, which reinforces my strong belief that it remains a solid buy at this moment.
Read the full article here. Read time: 1 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7009/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Amazon.com, Inc. (AMZN) [58%]
🟨🟨⬜️⬜️⬜️ Cool Company Ltd. (CLCO) [37%]
🟥⬜️⬜️⬜️⬜️ Amdocs Limited (DOX) [5%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 58% bullish
Stock Market News
Ether ETFs appear set to launch on Tuesday, six months after massive debut for bitcoin funds - CNBC
Republican representatives call on CrowdStrike CEO George Kurtz to testify - CNBC
Lockheed Martin lifts 2024 sales target on fighter jet, missile demand - Reuters
Cloud security startup Wiz walks away from $23B Google acquisition on antitrust concerns: report - New York Post
Lyft president Kristen Sverchek to exit on Aug. 20 - CNBC
Comcast expects to carry 100 NBA games each season in new broadcast rights deal - Reuters
GM beats second-quarter expectations, raises forecast again - Reuters
LINKS YOU’LL LOVE
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THAT’S ALL FOLKS
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Connor
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