🤖📈 Top Trade Ideas for August 11

Does anyone know what in Situ means? I feel like he could of used a more common phrase in the title.

The author highlights that Alphatec Holdings, Inc. (NASDAQ:ATEC) stock has risen by 20% since their last write-up in January. Despite a recent sell-off potentially linked to profit-taking by long-term investors, the company's Q2 showed a 40% YoY revenue increase, even with a deeper operating loss. The primary revenue boost is attributed to ATEC's surgical segment, especially procedures like PTP, ALIF, and LTP. Its top-line growth solidifies its stance as a growth company. Financially, ATEC has been reinvesting in growth, notably with cash acquisitions like the REMI Robotic Navigation System. The stock's sentiment appears mixed; short-term momentum has slowed, but the long-term view remains bullish, supported by Wall Street's upward revenue estimates. The stock is currently priced at 4x forward sales, aligning with the industry average. The author, impressed by ATEC's sales trajectory and growth in primary services, has updated their stance from "hold" to "buy," setting a price target of $20 with potential for further elevation. However, they also caution about risks, including broader challenges facing healthcare stocks and macroeconomic factors.

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The author posits that Gentherm Incorporated (NASDAQ:THRM) is currently undervalued. Bolstering this bullish view, the author cites expected free cash flow (FCF) growth stemming from acquisitions like Jiangmen Dacheng Medical Equipment Co and Alfmeier Präzision SE. Inorganic growth coupled with the company's expansion endeavors in the medical and thermal control sectors further amplifies this FCF growth projection. Despite deriving its primary revenue from the automotive sector, Gentherm's anticipated growth in the medical instruments segment is noteworthy. For 2023, the management predicts product revenue to oscillate between $1.45-$1.55 billion and an adjusted EBITDA margin between 11.5%-13.5%. With a robust balance sheet, a 2x asset/liability ratio, and $217 million in total debt, Gentherm seems well-positioned financially. The company's ventures into temperature management systems, climate sense product line, and expansion in thermal control solutions for medical purposes should fortify sales growth. The author's discounted cash flow (DCF) model, factoring in various financial metrics, suggests an enterprise value of approximately $3.187 billion, translating to an implied stock price of $101 per share. Notwithstanding this, the company's over-reliance on three major clients and challenges posed by international markets and the electric car trend could present risks. In summation, based on potential growth opportunities and cost-control measures, the author firmly believes that Gentherm is undervalued.

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Columbia Sportswear Company's stock has underperformed in the last five years despite witnessing growth in sales and earnings, mainly due to multiple compression. The market's overly optimistic stance in 2018 has since shifted to an overly pessimistic view. Although the near-term earnings results might introduce volatility, the author sees this as an opportunity for long-term investors, given the stock appears undervalued based on future cash flows. With an intrinsic value pegged at $117 per share—over 50% above its current price—the author expects the stock to approach this target once Columbia addresses its inventory concerns and sees a growth resurgence in 2024. Despite recent downturns, Columbia has a historical trajectory of strengthening its brand, boasts of family-led continuity, and demonstrates a dedication to shareholder value, as evidenced by the $200+ million share repurchases in 2018. However, there's guidance for decreased growth and earnings in 2023 due to challenges like high inventory and storage costs. The author believes these will rectify with supply chain normalization, and despite potential short-term global recession risks, recommends investment in Columbia, anticipating a 2024 earnings boost and stock value close to the estimated $117 per share.

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