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Recent Articles
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Meta Platforms Surges Back to Fair Value Estimate
Apr 27, 2023
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Image: Meta Platforms’ shares continue to recover from its massive fallout in 2022. We’re sticking with our $225 fair value estimate following the company’s first-quarter 2023 earnings report.
Though Meta Platforms is no longer included in the newsletter portfolios, many readers know that we’ve been bullish on the areas of large cap growth and big cap tech for a long time now and that we include Alphabet, Microsoft, and Apple as core ideas in the newsletter portfolios. Year-to-date and over the past year, an ETF that tracks the area of large cap growth (SCHG) has outperformed an ETF that tracks the area of small cap value (IWN) by roughly 9 percentage points. Over the past five years, the outperformance grows to more than 70 percentage points. Without a doubt, large cap growth has been the place to be, and we’ve had a courtside view of why thanks to our fundamental, cash-flow-driven analysis. We expect large cap growth to continue to lead markets, and while we’ve grown skeptical of Meta Platforms, we like that the market is viewing its first-quarter 2023 report positively.
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Chipotle Hits All-Time High, Microsoft Doesn’t Disappoint in Calendar First-Quarter 2023
Apr 26, 2023
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Image: Ideas in the Best Ideas Newsletter portfolio are doing great! Shares of Chipotle are up ~45% so far in 2023, while shares of large cap growth giant Microsoft (orange) are up more than 20% year-to-date.
Microsoft’s shares soared during the trading session April 26 thanks to strong third-quarter fiscal 2023 performance for the period ending March 31 led by its Azure cloud business segment, while Chipotle’s first-quarter 2023 report only provides more support for a higher intrinsic value estimate for shares.
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Brief Take: Best Idea PepsiCo Hits All-Time High! Beautiful Breakout!
Apr 25, 2023
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Image: PepsiCo, an idea in the Best Ideas Newsletter portfolio, has broken out to all-time highs. We continue to like the name.
PepsiCo now expects core earnings per share to advance to $7.27 in fiscal 2023, a 7% increase (up from 6% previously). As in the case of General Mills and several consumer staples entities, PepsiCo’s price elasticities remain in its favor, and we expect a modest fair value increase upon our next report update. PepsiCo remains a key idea in the Best Ideas Newsletter portfolio.
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Small Cell Deployments a Growth Avenue for Tower Operator Crown Castle
Apr 25, 2023
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Image: Crown Castle has grown its dividend payout at a compound annual growth rate of ~9% during the past several years. Image Source: Crown Castle.
Crown Castle remains one of our favorite income ideas thanks in part to its free-cash-flow rich, asset-light, contractual recurring revenue business model that is tied to long-term secular growth trends in mobile device data usage. The REIT’s forward estimated dividend yield stands at ~5%.
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