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Recent Articles
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Latest Report Updates
Dec 6, 2023
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Check out the latest report refreshes on the website.
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5 Stocks to Consider Buying
Dec 5, 2023
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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.
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Latest Report Updates
Dec 3, 2023
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Check out the latest report refreshes on the website.
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A Note on Valuation -- Low P/E Stocks with High Dividend Yields
Dec 1, 2023
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Image: Stocks with low valuation multiples have trailed the broader S&P 500 (orange) considerably since the depths of the Great Financial Crisis.
Today, with all the readily available information and data out there, it is far more likely the case that a company with a low P/E ratio actually deserves it, and a firm with an outsized dividend yield just holds a lot of net debt on their books. Investing in low P/E stocks or stocks with low valuation multiples without considering their intrinsic values (i.e. fair value estimates) may result in owning a basket of value traps. Investors may be attracted to these types of stocks for their low P/E ratios and hefty dividend yields, but just having a low P/E ratio and a high dividend yield doesn’t a good stock make. If investing were this easy, so-called “value stocks” wouldn’t have underperformed the market significantly for more than a decade and a half now.
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