Top stock pitches (Wed, Sep 4)

Connor Van Ooyen
September 04, 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:

United Parks & Resorts (PRKS)

Nutrien (NTR)

CACI International Inc (CACI)

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.

New purchase in the YB Premium Portfolio

One of the top investors in the database just bought a new stock. We have 43 stock pitches for them in our database with the following returns:

One Month	Three Months	One Year
6%	17%	76%

The newly purchase stock is…

The YB 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 Voss Capital.

We have 63 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 - Voss Capital

Voss Capital New Position: United Parks & Resorts Inc.

United Parks & Resorts Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States.

Ticker: PRKS | Price: $50.58 | Price Target: $88 (+74%)
Market Cap: $2.93B | Timeframe: Two years

🎢 Theme Park | 📈 Bullish Idea

United Parks & Resorts (PRKS), formerly SeaWorld, is a theme park operator trading at 6.8x 2025 EBITDA, significantly below its historical M&A multiple of 11x. The company, with 60% of revenue from Florida, has shown resilience in past recessions. Hill Path Capital, owning nearly 60%, is driving operational improvements and bold capital allocation. Potential catalysts include a private equity buyout, Hill Path take-private, or transformative acquisition. The bull case projects a 3x return on attendance recovery, while the base case targets an $88 price (+80%) at 8.7x EBITDA. PRKS owns valuable real estate, including 400 acres of developable land, and has a profitable licensing model. Risks include new park supply and flat attendance trends. Management is focused on share repurchases and views the stock as undervalued. The company's differentiated animal-centric experience and value proposition relative to competitors like Disney and Universal position it well for growth.

Read the full article here. Read time: 9 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/11374/?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

Getting Organized - Basic Materials - NTR

Nutrien Ltd. provides crop inputs and services. The company operates through four segments: Retail, Potash, Nitrogen, and Phosphate.

Ticker: NTR | Price: $46.44 | Price Target: $100 (+115%)
Market Cap: $31.14B | Timeframe: 5 years

🧪 Fertilizer | 📈 Bullish Idea

Nutrien (NTR), currently trading at $46, is a leading player in the fertilizer industry, holding the top position in potash production and ranking third and second in nitrogen and phosphate fertilizer production, respectively. The company also boasts a robust retail network of over 2,000 stores. With a projected mid-cycle earnings potential of $10 per share within the next five years, NTR has set a price target of $100, based on a conservative 10x P/E multiple. This represents a potential 17% compound annual growth rate (CAGR), which, combined with the current 4.5% dividend yield, could result in a total return exceeding 20%. The stock has the potential to double in value over the next five years, making it an attractive long-term investment in the Basic Materials sector. Investors seeking more information can refer to the company's recent investor day presentation from June.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/11279/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Baird Small/Mid Cap Growth Equity.

Their historic returns are:

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

FUND LETTER - Baird Small/Mid Cap Growth Equity

Baird Small/Mid Cap Growth Equity New Position: CACI International Inc

CACI International Inc, through its subsidiaries, engages in the provision of expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors.

Ticker: CACI | Price: $478.35 | Price Target: N/A
Market Cap: $10.67B | Timeframe: N/A

🏛️ Gov IT Services | 📈 Bullish Idea

CACI International Inc, trading under the ticker CACI, operates as a government IT service company. It's benefiting from an upswing in demand prompted by heightened U.S. defense expenditure. We identify numerous factors unique to CACI, such as the scaling-up of several major projects, which are expected to bolster organic revenue growth. Presently, CACI's market valuation is considerably lower than that of its industry counterpart, Booz Allen Hamilton Corp, suggesting potential for an increase in its trading multiple should it realize accelerated growth."

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/11344/?ref=PLACEHOLDER

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ PAR Technology Corporation (PAR) [88%]

🟨🟨⬜️⬜️⬜️ WideOpenWest (WOW) [21%]

🟥⬜️⬜️⬜️⬜️ Harrow, Inc. (HROW) [21%]

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 61% bearish

$NVDA went down and brought the rest of the market with it. A very bearish start to September, we will see if it sticks.

Stock Market News

Volkswagen warns of plant closures in Germany, citing ‘extremely tense' situation - CNBC

Vaxcyte's shares jump on 'promising' early data on pneumococcal vaccine - Reuters

Tesla's China sales have best month of the year in August - Reuters

Boeing's cash flow goal to be delayed, says Wells Fargo as it downgrades stock - Reuters

Weak manufacturing measures raise specter of U.S. economic slowdown - CNBC

Nvidia hit with subpoena from US Justice Department, Bloomberg News reports - Reuters

Nvidia tumbles, leading chip stocks lower - 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 Neuronetics, Inc. ($STIM)

The Director purchased 25,000 shares at $0.85/share ($21,250.00 total) which increased their vested holdings by 10.4%. The current price is $0.88 (+3.9%). Their median purchase size is $162K and this is their 5th largest purchase out of 6 all time. link

LINKS YOU’LL LOVE

A Guide to Rational Investing

How Roku ($ROKU) Grows: The Platform For Streaming Platforms

A Dozen Things I’ve Learned from Philip Fisher and Walter Schloss About Investing

🎁 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.

Give me feedback in the poll below and share the newsletter with other investors if you find it useful!

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!

Reply

or to participate.