Member Articles

Loving Stocks Here! Meta and Alphabet Setting Up Nicely for Long Term Investors!

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  Image: Nelson still remains bullish. We wouldn’t be surprised to see the markets make new highs as they have done time and time again over the stock market’s storied history of bull and bear markets, crashes and rip-your-face off rallies, and economic booms and recessions! There are myriad risks, but we’re not overthinking this market. We like stocks for the long haul. “The active versus passive over-benchmarking plague is hurting investor returns, and flawed measures of risk are disguising the underperformance.” — Brian Nelson, CFA Dear members: Latest thoughts on Meta Platforms >> Latest thoughts on Alphabet >>  One of the hardest parts of investing is keeping your head when others around you are running for the exits. That’s … Read more

Global Payments Buying EVO Payments as Fintech Industry Consolidates

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Image Shown: Global Payments Inc is in the process of acquiring EVO Payments Inc. Image Source: Global Payments Inc – Second Quarter of 2022 IR Earnings Presentation By Callum Turcan Global Payments Inc (GPN) announced it would acquire EVO Payments Inc (EVOP) for $34 per share through an all-cash deal worth ~$4.0 billion by enterprise value. As its name would suggest, Global Payments provides payment technology and software solutions to customers in over 100 countries. By acquiring EVO Payments, which focuses on providing payment technology and services to small and medium-sized businesses in over 50 markets worldwide, Global Payments will extend its reach into new markets (including Chile, Germany, Greece, and Poland) while enhancing its presence in existing markets (including … Read more

Shares of Best Idea Alphabet Remain Incredibly Undervalued

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Image Shown: Alphabet Inc Class C shares are trading at bargain basement levels, in our view. By Callum Turcan Alphabet Inc (GOOG) (GOOGL) reported second quarter 2022 earnings that missed consensus top- and bottom-line estimates. However, investors were clearly expecting the tech giant to perform much worse as shares of GOOG leapt higher following the report. We continue to like Alphabet Class C shares (ticker: GOOG) as a top-weighted idea in the Best Ideas Newsletter portfolio. Our fair value estimate (adjusted for Alphabet’s recent 20:1 stock split) sits near $157 per share of GOOG, well above where shares are trading at as of this writing. Earnings Update During the second quarter of 2022, Alphabet’s GAAP revenues grew 13% year-over-year and … Read more

Meta Platforms’ Shares Remain Cheap; Long Term Focus Required

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Image Shown: Meta Platforms Inc’s family of apps continued to grow its active user base last quarter. Its social media networks are used by billions of users every single day. Image Source: Meta Platforms Inc – Second Quarter of 2022 IR Earnings Presentation By Callum Turcan On July 27, Meta Platforms Inc (META) reported second quarter 2022 earnings that missed consensus top- and bottom-line estimates. We appreciate that its active user base across its family of apps (Facebook, Instagram, WhatsApp, and Messenger) and its ad impressions continued to trend in the right direction last quarter, though recent softness in its pricing power is concerning. Meta Platforms is responding by scaling back its targeted operating expense growth, which we appreciate. We … Read more

High Yielding Philip Morris International’s Growth Runway Remains Intact

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Image Shown: Shares of Philip Morris International moved higher in the wake of its second quarter earnings report. By Callum Turcan Philip Morris International Inc (PM) reported second quarter 2022 earnings that beat both consensus top- and bottom-line estimates. The company raised its full-year revenue and adjusted EPS guidance for 2022 on a pro forma basis (excluding its operations in Russia and Ukraine) versus previous estimates in conjunction with its latest earnings update. Now Philip Morris International expects to generate 6%-8% net revenue growth on an organic basis and 10%-12% diluted EPS growth in 2022 versus 2021 levels (these are non-GAAP metrics). We include Philip Morris International in the High Yield Dividend Newsletter portfolio as we are big fans of … Read more

Lockheed Martin Facing Near Term Headwinds; Longer Term Outlook Remains Bright

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Image Source: Lockheed Martin Corporation – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan Lockheed Martin Corporation (LMT) reported earnings for the second quarter of fiscal 2022 (period ended June 26, 2022) that missed consensus top- and bottom-line estimates, largely due to delays in securing another domestic F-35 contract and supply chain hurdles. In our view, these are near term headwinds that are resolvable. Reportedly, Lockheed Martin is nearing a deal worth ~$30 billion with the US Department of Defense (‘DoD’) covering orders for around 375 F-35 aircraft. As it concerns supply chain hurdles, the resumption of normal economic activities (as the worst of the COVID-19 pandemic is put behind the world economy) should steadily allow industrial … Read more

Walmart’s Business Update Likely Means U.S. Is In Recession, But Near-Term Weakness Is Already Baked Into Stock Market

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Image Shown: Shares of Walmart Inc dropped sharply during afterhours trading on July 25 as the retailer sharply cut its adjusted operating income and EPS guidance for the current fiscal year as inflationary pressures are taking a sizable toll on its bottom-line. By Callum Turcan On July 25, Walmart Inc (WMT) issued a business update that saw the retailer sharply cut its adjusted operating income and EPS guidance for fiscal 2023 (period ended January 2023), while boosting its consolidated net sales guidance. The company also adjusted its guidance for the fiscal second quarter. Shares of WMT plummeted during afterhours trading on July 25 as investors began to price in concerns over the retailer’s deteriorating margins. We anticipated ongoing weakness in … Read more

Johnson & Johnson’s Underlying Performance Remains Strong

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Image Source: Johnson & Johnson – Second Quarter of 2022 IR Earnings Presentation By Callum Turcan Johnson & Johnson (JNJ) reported second quarter 2022 earnings that beat both top- and bottom-line estimate consensus estimates. Johnson & Johnson maintained the midpoints of its full-year non-GAAP adjusted operational sales and earnings per share guidance during its latest earnings update but reduced its reported sales and earnings guidance due to headwinds stemming from a strengthening US dollar. We continue to like Johnson & Johnson as an idea in both the Best Idea Newsletter and Dividend Growth Newsletter portfolios. Shares of JNJ yield ~2.6% as of this writing. Please note that Johnson & Johnson is in the process of spinning off its ‘Consumer Health’ … Read more

High-Yielding Life Storage Is One of Our Favorite Self-Storage REITs

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Image Source: Life Storage Inc – First Quarter of 2022 Earnings Press Release By Callum Turcan We are big fans of the self-storage industry as real estate investment trusts (‘REITs’) operating in this space have historically generated “excess” free cash flows after covering their total dividend obligations. Life Storage Inc (LSI), a self-storage REIT, is one of our favorite income generation ideas. As of this writing, shares of LSI yield ~3.9% after Life Storage pushed through a nice 8% sequential increase in its dividend in July 2022, bringing its quarterly payout up to $1.08 per share ($4.32 on an annualized basis). During the past decade, Life Storage’s dividend growth track record has impressed (its quarterly payout has more than tripled … Read more

UnitedHealth Group Beats Estimates and Once Again Raises Guidance

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Image Shown: Shares of dividend growth idea UnitedHealth Group Inc moved higher by ~5% during normal trading hours on July 15 after reporting a stellar earnings update. The health care giant once again raised its full-year earnings guidance for 2022 in conjunction with its latest earnings update. Shares of UNH have held up quite well year-to-date in the face of volatile capital markets. By Callum Turcan On July 15, UnitedHealth Group Inc (UNH) reported second quarter 2022 earnings that beat both consensus top- and bottom-line estimates. The health care giant also boosted its non-GAAP adjusted EPS guidance to $21.40-$21.90 for 2022, up from $21.20-$21.70 previously, in conjunction with it second quarter earnings update. Please note that this is the second … Read more