Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for any changes.
Latest Valuentum Commentary
Jan 17, 2022
The ARKK CRASHED But Large Cap Growth/Tech Is Still Cheap!
“The crash in speculative tech, namely the ARKK, is ongoing and expected to continue. On the other hand, blue chip technology, namely the area of large cap growth, is overflowing with moaty, net cash rich, free cash flow generating, secular growth powerhouses and continues to look attractive. On a weighted average basis, for example, the Schwab U.S. Large Cap Growth ETF (SCHG) has considerable room to run higher based on the high end of our fair value estimate range of its largest holdings. We think large cap growth will continue to deliver in the years ahead, and we like exposure to this area. ” – Brian Nelson, CFA
Dec 23, 2021
Some Questions Answered: The Fair Value Estimate Range and ROIC
Image: A snapshot of Facebook's valuation model. Let's cover a few subtle nuances of the fair value estimate range and the calculation behind return on invested capital as it is translated from our valuation infrastructure into the stock reports.
Nov 3, 2021
Large Cap Growth Has More Room To Run
“The stylistic area of large cap growth has been one of our favorite areas because of the strong net cash rich, free cash flow generating, secular growth powerhouses that make up much of the space. The image is a rundown of the key Valuentum statistics for the top 15 holdings of the Schwab U.S. Large Cap Growth ETF (SCHG). We believe where large cap growth goes, so does the broader market, considering the hefty weightings of some of these stocks in other broad-based indices. Based on the high end of our fair value estimate range for this group of bellwethers, the broader U.S. markets still have room to run, to the tune of 7%+, despite the many highs already reached during 2021. Though traditional valuation multiples may seem stretched by most measures, many market bellwethers have huge net cash positions and tremendous free cash flow growth potential. We expect the equity markets to continue to be led by large cap growth.” – Brian Nelson, CFA
Oct 18, 2021
Dividend Growth Idea UnitedHealth Group Beats Estimates, Raises Guidance (Again)
Image Shown: Shares of dividend growth idea UnitedHealth Group Inc moved higher in the wake of its latest earnings report and guidance boost. On October 14, the health insurance and health care services provider giant UnitedHealth Group reported third-quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The company also raised its full-year earnings guidance (again) for 2021 in conjunction with its latest earnings report, boosting its EPS forecast to $17.70-$17.95 and its non-GAAP adjusted EPS forecast to $18.65-$18.90. Shares of UNH are included as an idea in the Dividend Growth Newsletter portfolio as we are enormous fans of its fortress-like balance sheet and ability to generate free cash flows in almost any operating environment. As of this writing, shares of UNH yield ~1.4%.
Sep 10, 2021
Our Reports on Stocks in the Disruptive Innovation Industry
Image Source: Virgin Galactic. The ‘Disruptive Innovation’ industry is unique in almost every way. The companies included don’t necessarily share a similar traditional industry or sector make-up, but they do share one big thing in common: They continue to disrupt the traditional way of doing things. Carvana is changing how consumers buy used cars, Roku is leading the streaming charge against linear TV, Teradyne's industrial robotics technology is fascinating, Beyond Meat is working to alter the substance of the meat products industry, Virgin Galactic wants to make spaceflight accessible for private individuals, Uber is changing how we think about getting from point A to point B through ridesharing, Penn National is aggressively expanding into sports betting with its investment in Barstool Sports, CRISPR Therapeutics' revolutionary gene-editing technology may offer a path to curative solutions for the worst diseases, Wayfair is disrupting how we buy home goods, ETSY is carving out a niche online marketplace in craft items, while Zoom Video has come of age during the outbreak of COVID-19. Others included in this list of stock reports have been around for a while, but are still innovating to meet customer needs. Monster Beverage continues to reinvent the energy drink market, Boston Beer has found new life with its portfolio of new brands, and even GameStop is seeking to find its place after the meme-stock frenzy. There are other companies in this industry and sure to be many more added in the future.
Jul 16, 2021
Dividend Growth Idea UnitedHealth Group Surges Towards All-Time Highs After Stellar Earnings Update, Guidance Boost
Image Shown: Shares of UnitedHealth Group Inc, an idea in the Dividend Growth Newsletter portfolio, are trading near their all-time highs as of this writing after the firm reported a stellar second quarter 2021 earnings report. In conjunction with its latest earnings report, UnitedHealth Group once again raised its full-year adjusted EPS guidance for 2021. We continue to be huge fans of the name. We are enormous fans of UnitedHealth Group, and the healthcare giant has not disappointed since we added shares of UNH as an idea to the Dividend Growth Newsletter portfolio back on November 27, 2020. Shares of UNH are up 26% from November 27 to July 15, outperforming the 20% gain seen at the S&P 500 during this period before considering dividend considerations (which would not change this picture much). The company’s balance sheet is pristine, its free cash flow generating abilities are simply stellar, and its growth outlook is incredibly bright. Recent guidance increases highlight management’s confidence that UnitedHealth Group is steadily recovering from the COVID-19 pandemic, keeping in mind that the resumption of elective surgeries and other heath service activities during the second half of this year will create temporary headwinds for the firm. Heading into 2022, UnitedHealth Group sees its various businesses having ample momentum, and the company’s growth outlook over the long haul is incredibly promising. We like UnitedHealth Group as an idea in the Dividend Growth Newsletter portfolio.
Jun 21, 2021
Dividend Growth Idea UnitedHealth Group Boosts Payout
Image Shown: We include UnitedHealth Group Inc as an idea in our Dividend Growth Newsletter portfolio. The health care giant recently boosted its quarterly payout by 16% on a sequential basis. Recently, the US-based health care insurance, services, and solutions provider UnitedHealth Group boosted its quarterly dividend by 16% to $1.45 per share or $5.80 on an annualized basis. On a forward-looking basis, shares of UNH yield ~1.5% as of this writing. We include UnitedHealth Group as an idea in the Dividend Growth Newsletter portfolio as its forward-looking dividend coverage is rock-solid.
Apr 19, 2021
UnitedHealth Group Raises Guidance After Stellar Earnings Report
Image Shown: We added UnitedHealth Group Inc to the Dividend Growth Newsletter portfolio back on November 27, 2020. Since then, shares of UNH have surged higher, though we are primarily interested in the company’s immense dividend growth potential. We continue to be big fans of UnitedHealth Group and like the company as an idea in the Dividend Growth Newsletter portfolio. Shares of UNH have surged towards the upper end of our fair value estimate range over the past couple of months. When we roll forward our enterprise cash flow model for the new year, we expect UnitedHealth Group’s fair value estimate to increase meaningfully on the back of its improving cash flow growth outlook. As of this writing, shares of UNH yield ~1.3% and its Dividend Cushion ratio stands north of 3.0, highlighting the tremendous strength of its forward-looking dividend coverage.
Mar 18, 2021
Cigna Is An Intriguing Health Care Idea
Image Source: Cigna Corporation –2021 Investor Day Presentation. Health care giant Cigna Corporation has a stellar cash flow profile, pristine balance sheet, promising growth outlook, and remains committed to rewarding shareholders. The company initiated a quarterly dividend at the start of 2021 and intends to continue buying back a sizable amount of its stock going forward. Management recently issued favorable guidance that indicates Cigna’s growth story is expected to continue this year as the world emerges from the COVID-19 pandemic. Cigna’s telehealth ambitions are quite intriguing as well. Recent updates at Cigna have placed the health care company on our radar.
Feb 8, 2021
Stock Market Outlook for 2021
2020 was one from the history books and a year that will live on in infamy. That said, we are excited for the future as global health authorities are steadily putting an end to the public health crisis created by COVID-19, aided by the quick discovery of safe and viable vaccines. Tech, fintech, and payment processing firms were all big winners in 2020, and we expect that to continue being the case in 2021. Digital advertising, cloud-computing, and e-commerce activities are set to continue dominating their respective fields. Cybersecurity demand is moving higher and the constant threats posed by both governments (usually nations that are hostile to Western interests) and non-state actors highlights how crucial these services are. Retailers with omni-channel selling capabilities are well-positioned to ride the global economic recovery upwards. Green energy firms will continue to grow at a brisk pace in 2021, though the oil & gas industry appears ready for a comeback. The adoption of 5G wireless technologies and smartphones will create immense growth opportunities for smartphone makers, semiconductor players and telecommunications giants. Video streaming services have become ubiquitous over the past decade with room to continue growing as households “cut the cord” and instead opt for several video streaming packages. We’re not too big of fans of old industrial names given their capital-intensive nature relative to capital-light technology or fintech, but there are select names that have appeal. Cryptocurrencies have taken the market by storm as we turn the calendar into 2021, but the traditional banking system remains healthy enough to withstand another shock should it be on the horizon. Our fair value estimate of the S&P 500 remains $3,530-$3,920, but we may still be on a roller coaster ride for the year. Here’s to a great 2021!
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The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports, articles and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. The sources of the data used on this website are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor and does not offer brokerage or investment banking services. Valuentum, its employees, and affiliates may have long, short or derivative positions in the stock or stocks mentioned on this site.