AVLR

Large Cap Growth Has More Room To Run

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“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 … Read more

Our Thoughts on Rackspace and Zoom Video Communications

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Image Source: Rackspace Technology Inc – Second Quarter of 2020 IR Earnings Presentation The appeal of the SaaS space is that these types of companies are asset-light and are light on capital expenditures, potentially allowing for meaningful free cash flows if scale is achieved. Secular growth tailwinds underpin their free cash flow growth trajectories, and the pandemic has accelerated changes that were already underway long before COVID-19 came into the picture. We appreciate that Rackspace is beginning to pay down its net debt load, though more work needs to be done on that front. Zoom Video Communications posted truly impressive results; however, we caution that there are many competitors in the live online video chat arena and staying on top … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

Salesforce Has Room to Run

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Image Source: Salesforce Inc – Fourth Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan Salesforce Inc (CRM) was founded in 1999 as software-as-a-service (‘SaaS’) company built around customer relationship management (‘CRM’) software, initially a version created by its co-founders Marc Benioff, Parker Harris, Frank Dominguez, and Dave Moellenhoff. The firm is headquartered in San Francisco, California. The company offers software that assists its customers with marketing, customer service, sales, digital commerce, business development, collaboration, analytics, recruitment, and numerous other activities. These offerings aim to improve workplace productivity by streamlining certain functions and automating others. Salesforce provides a comprehensive suite of software solutions designed for businesses and government entities across its Customer 360 platform, while using analytics and AI … Read more