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Top stock pitches (Wed, Sep 18)

Top stock pitches (Wed, Sep 18)

Connor Van Ooyen
September 18, 2024

About // Sponsor YBR // Yellowbrick Website // Twitter

*This newsletter is for entertainment purposes only. Nothing in this newsletter is financial advice or recommendations.

Note: I am out of the country this week, so I am sending a shortened version of this email until I get back.

👋 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:

Meta Platforms (META)

Atkore Inc. (ATKR)

Corpay (CPAY)

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).

**I use Interactive Brokers (link) for the portfolio because it makes it easy to trade international and OTC stocks. If you decide to open an account with them, use this link so they know I sent you.

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.

STOCK PITCHES

Author Returns

The below stock pitch is from @1rabbitresearch.

We have 6 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.

ANALYST REPORT - @1rabbitresearch

DA Davidson Rates Meta a Buy with a $600 Price Target

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs.

Ticker: META | Price: $536 | Price Target: $600 (+12%)
Market Cap: $1.36T | Timeframe: N/A

📱 Social Network | 📢 Advertising | 📈 Bullish Idea

DA Davidson initiates coverage of Meta Platforms (META) with a Buy rating and a $600 price target, positioning it as a top mega-cap pick due to its emerging leadership in future technology platforms and attractive valuation. Meta is currently the cheapest mega-cap stock after Alphabet (GOOGL), trading at 16x P/E excluding Reality Labs losses. The firm highlights Meta's potential in future tech leadership while noting its attractive valuation provides downside protection. However, DA Davidson acknowledges short-term challenges, including tough comparisons, reliance on Chinese sellers, and the upcoming election cycle as potential risks to monitor.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/12032/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Kairos Research.

We have 6 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 - Kairos Research

Atkore Inc. - $ATKR

Atkore Inc. engages in the manufacture and sale of electrical, mechanical, safety, and infrastructure products and solutions in the United States and internationally.

Ticker: ATKR | Price: $87.42 | Price Target: N/A
Market Cap: $3.14B | Timeframe: N/A

⚡️ Electrical Components | 📈 Bullish Idea

Atkore Inc. (ATKR), an electrical components manufacturer, is down 50% with a 15% FCF yield. The company faces short-term headwinds including soft pricing, construction demand, and Mexican imports, but has long-term tailwinds in renewables and digital infrastructure. Atkore's strong operational efficiency is driven by the Atkore Business System, modeled after Danaher's. The company reduced shares outstanding by 42% from 2017-2023 and has a clean balance sheet. Risks include cyclicality, competition, and customer concentration, with the top 10 customers accounting for 38% of revenue. The bull case projects 5-8% growth with 17-20% margins, while the bear case offers returns similar to US treasuries. Management, led by CEO William Waltz, is aligned with shareholders. Atkore's valuation assumes normalized growth below its 11% historical average, lower margins, continued share buybacks at 2-3% annually, and an end multiple between 5-10x.

Read the full article here. Read time: 9 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/11868/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from RS Large Cap Val Strategy.

Their historic returns are:

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

FUND LETTER - RS Large Cap Val Strategy

RS Large Cap Val Strategy Portfolio Holding: Corpay, Inc.

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally.

Ticker: CPAY | Price: $307.18 | Price Target: N/A
Market Cap: $21.33B | Timeframe: N/A

💸 Fleet Payments | 📈 Bullish Idea

Corpay (CPAY), a fleet and corporate payments company, has experienced a decline in stock price due to concerns about a potential macro slowdown affecting its fleet customers and falling gasoline prices, which impact the company's earnings from customer fuel purchases. Despite these headwinds, the company's fleet business generates significant cash flow, which the Founder & CEO has been effectively reinvesting into corporate payments acquisitions. Recently, Corpay announced its second-largest corporate payments acquisition. The CEO's ownership of $550 million in company shares aligns shareholder interests and instills confidence in the company's ability to allocate capital efficiently with high return on invested capital (ROIC) in the corporate payments segment, even in the face of current challenges.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/11958/?ref=PLACEHOLDER

Which stock idea was the most compelling to you?

🎁 REFERRAL PROGRAM 🎁

Use your unique URL below or the share URL for any of the stock pitches to unlock insanely valuable awards.

Premium members have access to these awards here.

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

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