🤖📈 Top Trade Ideas for July 13

Including the bullish case for Visa, Bob Iger returning to Disney, and more...

Author

Connor Van Ooyen
July 13, 2023

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Our AI read and summarized 203 articles today from all over the internet to find the best trade ideas to help you make more money in the stock market.

What you’ll find in this email:

  • 💳 Visa is the master of the credit card space

  • 🐻 The bearish v bullish case for DIS

  • 💰 [Premium] 3 bullish stock ideas from professional research analysts

  • 🤖📈🚗📱 Much more…

*If you missed yesterday’s email, you can read it here

💰 Today’s Featured Trade Ideas

The three best trade ideas our AI tool found today. Make sure to vote on your favorite!

🥇 Visa - The Best Credit Card Play (link)

Ticker: $V | Current Price: $242 | Price Target: $454 (+88%)

💳 Credit Card | ⬆️ Growth | 📈 Long Idea

Visa is expected to experience mid-teens EPS growth, propelled by the growth in electronic payments, new payment flows, and value-add services. With the current shares at $236.45 ($242 as of this email), the forecasts project a 92% total return (23% annualized) by September 2026. This return is mainly driven by a ~14% EPS CAGR, an upward P/E re-rating, and a 0.8% dividend yield. U.S. Payments Volume has shown stable growth trends and consumer confidence remains high. Visa's recent acquisition of Pismo for $1 billion is part of its growth strategy. Potential risks include governmental intervention and increased competition, particularly from India's Unified Payment Initiative. Visa's Q3 FY23 results are anticipated to bring few surprises due to disclosed volume data for two of the three months and the predictability of Service revenues each quarter.

Click here to read the full article

🥈 Braze - Omni-Channel Customer Engagement Platform! (link)

Ticker: $BRZE | Current Price: $43.69 | Price Target: N/A

📢 Marketing Tech | 💻 Enterprise SaaS | 📈 Long Idea

Braze offers a gateway to connect with customers at scale through its omnichannel customer engagement platform. Plain-spoken, you use Braze to communicate with your customers. With Braze, you can segment, engage, analyze and personalize communications with your customers across channels incl. email, messaging, in-app, push notifications, social, WhatsApp and everything in between. In a world where start-ups channel VC funds to Google and Facebook on low RoI new customer acquisitions, Braze offers a compelling inward-looking alternative to engage with existing customers who are sticky, loyal and have a far higher RoI to boot. Braze is a much superior business contrary to a fatigued investor’s perception of operating in a crowded Martech landscape with ~10,000 start-ups. It offers a play on the growth of e-commerce and consumer and is trading at 9x ARR (30-Jun-23) having traded at 5x ARR at its lows.

Click here to read the full article

🥉 Bank of America has 100% Return Potential (link)

Ticker: $BAC | Current Price: $29.49 | Price Target: $58.77 (100%)

🏦 Banking | 🏷️ Undervalued | 📈 Long Idea

The investment case for Bank of America (BAC) is based on an average Return on Tangible Common Equity (ROTCE) of 15% across the cycle, improvement in the Cost/Income ratio, and a P/E multiple re-rating to 13.5x. With shares currently priced at $28.53 ($29.49 as of this email), forecasts indicate a 106% total return by 2025, largely driven by a re-rating from the current 9.0x P/E. This also includes contributions from EPS growth and a 3.4% Dividend Yield. Despite the cyclical nature of bank earnings, BAC's share price peaked at over $49 in January 2022. The stability of the U.S. banking system, as evidenced by major banks passing the Fed’s annual stress tests and BAC's recent dividend increase, is also positive. Q2 2023 results are expected to be strong but weaker than prior quarters. BAC is considered a long-term "value" investment with few near-term positive catalysts and some potential negatives, including the possibility of a U.S. recession. However, a good return is expected over time based on the low entry price.

Click here to read the full article

Which featured trade idea was the most compelling to you?

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Yesterday’s Poll Results (link):

🟩🟩🟩⬜️⬜️ EOS Energy ($EOSE) [46%]

🟨🟨⬜️⬜️⬜️ KeyCorp ($KEY) [32%]

🟥⬜️⬜️⬜️⬜️ Alphabet ($GOOGL) [22%]

🤔 Stock Market Quiz

Which company did Jim Cramer famously recommend as a buy just 5 days before it went bankrupt during the 2008 financial crisis?

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Yesterday’s Question (link): Which famous investor lost $2 billion in 20 minutes when Valeant Pharmaceuticals' shares plummeted in 2016?

Answer: Bill Ackman (45% of readers got it correct)

🐻 Bearish v 🐂 Bullish

Company: Disney ($DIS)

Bullish Reasons:

  1. Disney+ Growth: Disney+ has a long runway for growth available in both the U.S. and internationally. The firm's original series and the deep and constantly expanding library will drive the growth

  2. Bob Iger: The famous CEO has agreed to extend his contract through at least 2026, providing stability for the company.

  3. Strong Revenue Growth: Disney reported a 34% increase in revenue in Q1 2023 compared to the same period last year. This growth was driven by the recovery of the Parks, Experiences and Products segment and the continued success of Disney+

Bearish Reasons:

  1. Unpredictable Hit Programs: Developing mass-market hit programs can be unpredictable, especially as media fragmentation continues. The race to attract and retain talented creatives has been and will remain very competitive and expensive

  2. Increased Competition in Streaming: Disney faces intense competition in the streaming market from companies like Netflix, Amazon, and Apple. This could impact the growth of Disney+

  3. Dependence on Consumer Spending: Disney's business is heavily dependent on consumer spending, which can be impacted by economic conditions. Any downturn in the economy could negatively impact Disney's revenue

Are you bearish or bullish on Disney?

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Yesterday’s Results for $GOOGL (link):

🟩🟩🟩⬜️⬜️ 🐂 Bullish (75%)

🟨🟨⬜️⬜️⬜️ 🐻 Bearish (25%)

📈 Premium Trade Ideas

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