CVS

Best Idea Dollar General Outperforms

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Image Shown: Dollar General Corporation outperformed during its latest earnings update. Image Source: Dollar General Corporation – 10-Q SEC filing covering the Second Quarter of Fiscal 2022 By Callum Turcan On August 25, Dollar General Corporation (DG) reported second quarter earnings for fiscal 2022 (period ended July 29, 2022) that beat both consensus top- and bottom-line estimates. The discount retailer also raised its full year guidance for fiscal 2022 in conjunction with its latest earnings update after previously raising its full year guidance during its fiscal first quarter earnings report, which we covered in this article here. We include Dollar General as an idea in the Best Ideas Newsletter portfolio and the high end of our fair value estimate range … Read more

Video: We Expect A Huge Market Flush! Looking to “Raise” Incremental Cash

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Video: Valuentum’s Brian Nelson, CFA, breaks down the current market environment, highlighting reasons for the poor market sentiment driven by “tapped out” consumers and investors alike. He expects a big market “flush,” and a challenging next couple years but remains a big fan of stocks for the long haul. Valuentum continues to seek to “raise” incremental cash in the simulated newsletter portfolios as it prepares to weather the storm. Video length: ~10 minutes. –——— Tickerized for holdings in the SPY. Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. Some of the other securities written about in this … Read more

Valuentum’s Unmatched Product Suite

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Hi everyone! — We continue to be huge believers in the concept of enterprise valuation, which emphasizes the key cash-based sources of intrinsic value–net cash on the balance sheet and strong and growing future expected free cash flows. Meta Platforms, Inc. (META) and Alphabet Inc. (GOOG) remain two of the most underpriced ideas on the market today, and we remain huge fans of their tremendous long-term investment prospects. — There are a couple things worth reminding readers, however. A good relevant rule of thumb I learned early in my career working for my first portfolio manager is that a stock’s return in the near term is driven roughly 40% by the market, 30% by the industry it operates in, and 30% … Read more

Nelson: I Have Been Wrong About the Prospect of Near-Term Inflationary-Driven Earnings Tailwinds

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Transcript During the past several weeks, we’ve grown increasingly concerned about the health of consumer-tied entities across not only the consumer staples but also the consumer discretionary spaces. Many consumer staples entities, while raising prices, aren’t raising them fast enough to drive operating-income and bottom-line expansion, while many consumer-discretionary companies are facing higher freight and logistics costs and weaker performance in China, perhaps best revealed by Nike’s most recently-reported quarter, where inventory advanced 23% compared to the prior-year period. The tell-tale sign about the health of the consumer may be Amazon (AMZN) Prime Day, which is coming up on July 12-13, but based on many of the reports we’ve monitored this past earnings season, even if sales are strong on … Read more

Best Idea Dollar General Beats Consensus Estimates and Raises Guidance in the Face of Substantial Headwinds

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Image Shown: Dollar General Corporation’s GAAP net sales rose in the first quarter of fiscal 2022 on a year-over-year basis due to growth in its net store count. Image Source: Dollar General Corporation – May 2022 8-K SEC Filing  By Callum Turcan On May 26, Dollar General Corporation (DG) reported first quarter earnings for fiscal 2022 (period ended April 29, 2022) that beat both consensus top- and bottom-line estimates. Even in the face of major supply chain issues and inflationary headwinds, Dollar General modestly increased its net sales and same-store sales growth guidance for fiscal 2022 and maintained its other forecasts. We include Dollar General in our Best Ideas Newsletter portfolio as we are big fans of its resilient business model, strong cash flow … Read more

Shares of Top Biotech Idea Vertex Pharma Volatile But Company Fundamentals Sound

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Image Shown: Shares of Vertex Pharmaceuticals Inc have surged higher over the past year. We continue to like the biotech firm in our Best Ideas Newsletter portfolio. By Callum Turcan The biopharmaceutical space is full of attractive investment opportunities, though early-stage firms without commercialized drug portfolios are quite risky investments given their lack of meaningful revenues and sizable negative cash flows. Vertex Pharmaceuticals Inc (VRTX), on the other hand, has a commercialized portfolio of therapeutics that treat cystic fibrosis (‘CF’) which enables the biotech firm to generate substantial revenues and cash flows. We include Vertex Pharma as an idea in the Best Ideas Newsletter portfolio. Overview Due to the asset-light nature of its business model (most expenses flow through R&D … Read more

Dividend Growth Idea UnitedHealth Group Boosts Guidance

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Image Shown: Dividend growth idea UnitedHealth Group Inc has seen its share price surge higher over the past year. By Callum Turcan One of our favorite dividend growth ideas is UnitedHealth Group Inc (UNH). The company runs an expansive portfolio of domestic health care operations including large health insurance businesses, pharmacy benefits managers (‘PBMs’) and specialty pharmacy businesses, outpatient surgical centers, in-home health care service providers, analytical services, and services geared towards administrative activities, among many other operations involving health care. Its four business reporting segments are Optum Health (national health care delivery platform), Optum Insight (services, analytics, and platforms aimed at generating insights and efficiencies while improving patient outcomes), Optum Rx (portfolio of pharmacy care services), and UnitedHealthcare (portfolio … Read more

Shares of Newsletter Portfolio Idea Johnson & Johnson Off to the Races!

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Image Shown: Shares of Johnson & Johnson, an idea in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, are shifting higher. By Callum Turcan On April 19, Johnson & Johnson (JNJ) reported first-quarter earnings for 2022 that missed consensus top-line estimates but beat consensus bottom-line estimates. The company lowered its guidance for 2022, but shares of JNJ rallied during regular trading hours that day as its underlying performance remains strong. J&J suspended guidance for its coronavirus (‘COVID-19’) vaccine sales, though we want to stress that these sales were not needle-moving as it concerns our estimate of the company’s fair value. The firm was selling the vaccines on a not-for-profit basis and didn’t intend to change that until the … Read more

Best Idea Dollar General Roaring Higher

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Image Shown: We like the niche Dollar General Corporation has carved out for itself in the competitive discount retail industry. Image Source: Dollar General Corporation – Fiscal 2021 Annual Report By Callum Turcan Though the discount store retail industry is incredibly competitive, we like the niche that Dollar General Corp (DG) has carved out for itself by targeting towns and cities in the U.S. with populations of 20,000 or less. These are regions where e-commerce economics are not attractive due to hefty fulfillment costs, and often are underserved in terms of shopping options. Dollar General operates over 18,100 stores across 46 U.S. states and is included as an idea in the Best Ideas Newsletter portfolio. We continue to be big … Read more

GoodRx’s Modest Q4 Miss, Slowing Revenue Growth Expectations Send Shares Tumbling

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Image: Many speculative areas have faced tremendous pressure in recent months from new issues to entities tied to the trend of disruptive innovation. Image Source: TradingView. By Valuentum Analysts The past year or so hasn’t been kind to companies tied to the theme of disruptive innovation. New issues such as Snowflake (SNOW), Zoom Video Communications, Inc. (ZM), and Palantir Technologies Inc. (PLTR) have also had a rough go at it of late. For example, the Renaissance IPO ETF (IPO) has fallen almost 20% since late September 2020, while the ARK Innovation ETF (ARKK) has fallen almost 30%. GoodRx Holdings, Inc. (GDRX) is one of those companies that hasn’t performed as well. We first wrote up GoodRx Holdings, Inc. in December … Read more