Valuentum Exclusive Analysis for the Discerning Investor

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Aug 19, 2022

Nelson: The 16 Most Important Steps To Understand The Stock Market
Image Source: Tim Green. We outline the '16 Most Important Steps to Understand the Stock Market.' We think it's important to take a read of these key stock market tenets when things are going great -- and perhaps even more important when things aren't going your way. This continues to be a working document.

Aug 19, 2022

Public Storage Is One of Our Income Generation Favorite Ideas
Image Shown: Shares of Public Storage, one of our favorite income generation ideas, have boomed higher over the past five years with room for additional upside. Public Storage reported second quarter 2022 earnings that missed consensus top-line estimates but beat consensus bottom-line estimates as the self-storge industry in the US continues to benefit from robust demand. Surging home prices have made many households turn to self-storage options as an economical way to maximize their living space. During its second quarter earnings update, Public Storage also moderately raised its full-year guidance for 2022 which we appreciate. We are huge fans of Public Storage as the real estate investment trust (‘REIT’) is able to generate sizable “excess” free cash flows after fully covering its total payout obligations, something most REITs outside of the self-storage industry are unable to do given their hefty capital expenditure obligations. Public Storage is included as an idea in the High Yield Dividend Newsletter portfolio.

Aug 19, 2022

Dividend Growth Idea Home Depot Beats Estimates, Maintains Guidance
Image Shown: Dividend growth idea Home Depot is a stellar free cash flow generator in almost any operating environment. Historically, the home improvement retailer’s free cash flows have fully covered its dividend obligations, and we forecast that will continue to be the case going forward. However, we caution that its sizable share repurchases are being funded in part by its balance sheet. The firm has a large net debt load on the books. Image Source: Home Depot Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation. On August 16, Home Depot reported second-quarter earnings for fiscal 2022 (period ended July 31, 2022) that beat both consensus top- and bottom-line estimates. The home improvement retailer also reaffirmed its guidance for fiscal 2022 in conjunction with its latest earnings update. We like Home Depot as an idea in the Dividend Growth Newsletter portfolio. Shares of HD yield ~2.4% as of this writing, and our fair value estimate sits at $345 per share of Home Depot, well above where the company’s shares are trading at as of this writing. Home Depot’s free cash flow generating abilities and pricing power are impressive, and its growth runway remains largely intact, even in the face of sizable exogenous shocks.

Aug 19, 2022

Dividend Increases/Decreases for the Week of August 19
Let's take a look at firms raising/lowering their dividends this week.

Aug 17, 2022

Disney’s Theme Parks and Resorts Benefiting from Pent-Up Demand
Image Shown: The Walt Disney Company posted a rock-solid earnings report for the period ended July 3 as its business benefited from pent up demand for its theme parks and resorts offerings. Image Source: The Walt Disney Company – Third Quarter of Fiscal 2022 Earnings Press Release. On August 10, The Walt Disney Company reported third quarter earnings for fiscal 2022 (period ended July 3, 2022) that beat both consensus top- and bottom-line expectations. Its theme parks and reports business came roaring back from the worst of the COVID-19 pandemic while its video streaming services continued to add millions of paid subscribers to their customer bases. Shares of DIS have surged higher in recent weeks, and we continue to like Disney as an idea in the Best Ideas Newsletter portfolio. Our fair value estimate sits at $156 per share of Disney, well above where shares are trading at as of this writing indicating the company has ample capital appreciation upside potential.

Aug 14, 2022

Stocks Surge: Strong S&P 500 Earnings Growth Expected, Headline Scares With Inflation Tamed, Interest Rates Still Low
Image Source: BLS. The pace of inflation looks like it may slow down considerably in 2023 as sequential monthly increases pause their advance. Everybody seems to be looking to compare this market to another market sometime in the past, but regardless of which analog you read about, there is one thing that every pullback, crises, or calamity has had in common: The markets eventually returned to all-time highs. That’s what we’re betting on. Some say we could see new highs by the end of the year, but for us, we’re okay if it takes some time longer than that. The past few years have simply been awesome for equity returns, to say the least! Regardless, those higher nominal input prices that everyone is talking about today will eventually act as a launchpad for nominal earnings and nominal equity prices in the future, pushing them ever higher, in our view. What more can we say, we continue to like stocks for the long haul!

Aug 12, 2022

Dividend Increases/Decreases for the Week of August 12
Let's take a look at firms raising/lowering their dividends this week.

Aug 11, 2022

Albemarle Raises Guidance Yet Again, Expects to Be FCF Positive in 2022
Image Shown: Albemarle Corporation’s lithium operations have posted stellar financial performance in recent quarters and underpin the firm’s bright long-term growth outlook. Image Source: Albemarle Corporation – Second Quarter of 2022 IR Earnings Presentation. We liked what we saw in Albemarle’s latest earnings report. Albemarle is betting the farm that the supply-demand dynamics will remain favorable for lithium producers. Volume growth and favorable pricing for lithium derivatives is a powerful combination that Albemarle has effectively capitalized on so far. Lithium is a major component in lithium-ion batteries which are used to power electric vehicles (‘EVs’), battery storage facilities, consumer electronics, and much more. Should EV sales continue to grow while utilities are increasingly turning to battery storage solutions to supplement their backup power options, demand for lithium should continue to grow at a robust pace as well. Albemarle is well-positioned to capitalize on this upside, aided by its stellar operational execution. Shares of ALB yield ~0.7% as of this writing and the top end of our fair value estimate range for Albemarle sits at $309 per share.

Aug 11, 2022

ASML Holding Retains Dominant Position in High-End Semiconductor Equipment Space
Image Shown: ASML Holding NV effectively has a monopoly on the high-end space of the semiconductor equipment industry as the Dutch company sells the only lithography systems that can produce the most advanced cutting edge “chips.” We are huge fans of the company’s business model. Image Source: ASML Holding NV – Second Quarter of Fiscal 2022 IR Earnings Presentation. ASML Holding is a tremendous enterprise with a bright growth outlook, a healthy balance sheet, and an impressive business model. The company’s management team is incredibly shareholder friendly. We view both ASML Holding’s dividend growth and capital appreciation upside quite favorably, and think the market is “getting it wrong” on this company considering shares of ASML have sold off heavily year-to-date, even though its longer term free cash flow growth trajectory is as strong as ever.

Aug 10, 2022

Garbage Hauler Republic Services Beats Estimates, Raises Guidance
Image Shown: Shares of newsletter portfolio idea Republic Services have put up strong performance so far year-to-date in the face of volatile capital markets. There is a lot to like about Republic Services as the waste management firm is a tremendous free cash flow generator with ample pricing power. Management is incredibly shareholder friendly, as seen through recent per share dividend increases, and the company has been firing on all cylinders of late. We continue to like Republic Services in our newsletter portfolios. Our recently updated fair value estimate for RSG sits at $132 per share and the top end of our fair value estimate range sits at $158 per share of Republic Services.