Valuentum Exclusive Analysis for the Discerning Investor

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Dec 23, 2023

12 Reasons to Stay Aggressive in 2024
From outperforming simulated newsletter portfolios to fantastic success rates in the Exclusive publication to option ideas and great income-oriented ideas and beyond, we continue to deliver across our simulated newsletter suite as our latest video outlines. It’s hard to know exactly what 2024 will bring in terms of a market return, but the internals of the stock market and the U.S. economy look great to us. The new bull market we’re in could last for years, and as a result, we are staying aggressive with many of our new ideas as we look to benefit from these favorable trends.

Dec 14, 2023

Brief Note: Just How Good Has Our Stock Selection Been?
Has anyone really done better than this? We hope you have benefited greatly!

Dec 11, 2023

Oracle’s “Business Is Good and Getting Better”
Image Source: Peter Kaminski. On December 11, Oracle reported mixed second-quarter results for its fiscal 2024 that showed total revenue advancing 5% on a year-over-year basis (4% in constant currency), slightly lower than expectations, and non-GAAP earnings per share of $1.34 that came in slightly ahead of what the market was looking for. The company’s non-GAAP operating margin of 43% in the quarter helped to drive non-GAAP net income 14% higher than the same period a year ago (11% in constant currency). We’re not letting the slight miss on the top line sway us from our constructive stance on shares. Our fair value estimate stands at $108 per share, about in-line with where shares are currently trading.

Dec 10, 2023

First Gene-Editing Therapy Coming to Market; Reiterating Our Positive Stance on Vertex Pharma
Credit: Darryl Leja, NHGRI. On December 8, 2023, the U.S. Food and Drug Administration announced that it had approved Vertex Pharma’s and CRISPR Therapeutics’ novel gene-editing therapy (“Casgevy” – exa-cel) for sickle cell disease [SCD] in patients that are 12 years of age or older. This is the first such approval of its kind in U.S. history and will likely open the door for more gene-editing therapies for other rare diseases in the future. Estimates indicate that roughly 16,000 people will be eligible for the treatment at an estimated cost of around $2.2 million each, according to Reuters. The one-time market size of roughly $35.2 billion is a needle-mover, but the pace and timing of adoption of the therapy among the eligible population is difficult to estimate at this time. Note also that the therapy is of one-time application, meaning the therapy is a functional cure and will not be a source of recurring revenue from each patient. Nevertheless, it is an exciting development for medical science.

Dec 8, 2023

Reinstating Coverage of Lululemon
Image Source: Mike Mozart. On December 7, Lululemon reported strong third-quarter results for its fiscal 2023, with revenue increasing 19% and comparable sales increasing 14% on a constant-dollar basis. Adjusted earnings per share of $2.53 came in roughly 10% higher than the consensus forecast. We are reinstating coverage of Lululemon with a $470 per share fair value estimate and an Attractive Economic Castle rating. We like Lululemon but we won’t be adding it to any newsletter portfolio at this time.

Dec 8, 2023

Dividend Increases/Decreases for the Week of December 8
Let's take a look at firms raising/lowering their dividends this week.

Dec 5, 2023

5 Stocks to Consider Buying
The five stocks highlighted in this article generate tremendous amounts of free cash flow, have healthy balance sheets with either a net cash position or net-neutral position, generate high ROICs, and offer upside potential on the basis of the high end of our fair value estimate range. We think Apple and Microsoft are our two favorites, while Dick's Sporting Goods may be the one true "value" play with a low double-digit P/E ratio. Vertex Pharma has tremendous long-term potential, in our view, while shares of Booking Holdings appear cheap to us. We think the risk/reward remains in favor of the long-term investor that considers these five names.

Nov 27, 2023

How Do We Use the Valuentum Buying Index?
Image: We highlighted Exxon Mobil to start 2022, and the stock was one of the best performers in the S&P 500 last year. Exxon Mobil became a “Valuentum” stock last year, with shares being undervalued, exhibiting a strong technical breakout, and sporting an attractive dividend yield to boot. The stock became a huge winner. Note: Exxon is no longer included in the simulated newsletter portfolios. The image is an excerpt from an email sent to members January 5, 2022.We answer one of the most frequently asked questions about the Valuentum Buying Index.

Nov 24, 2023

Dividend Increases/Decreases for the Week of November 24
Let's take a look at firms raising/lowering their dividends this week.

Nov 20, 2023

Dick’s Sporting Goods Still Looks Really Cheap
Image Source: Dick’s Sporting Goods. On November 21, Dick’s Sporting Goods reported solid third-quarter results with sales up 2.8% on a year-over-year basis thanks to comparable store sales growth of 1.7% that lapped an impressive 6.5% increase in the same period a year ago. Non-GAAP earnings per share came in at $2.85 in the quarter, up from $2.60 in last year’s period. The company also raised its 2023 comparable store sales growth guidance range to 0.5%-2% from flat to 2% previously, and it raised its 2023 non-GAAP earnings per share outlook to $12.00-$12.60 from its previous range of $11.50-$12.30. We liked the news and continue to believe that shares are mispriced. Our fair value estimate stands at $160 per share, well above where shares are trading at the moment.