DPZ

Valuentum Weekly: Nothing Surprising, Well-Positioned!

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Image source: Cathie Wood’s flagship ETF, the ARK Innovation ETF (ARKK) has fallen more more than 40% from its 52-week high. This is nothing short of a complete and utter bloodbath for such an actively-managed fund, in our view. We note this for context. We’re not just talking about one or two or five stocks that are down 40% from 52-week highs, but the *entire fund.* Investors have to keep things in perspective. It’s perfectly reasonable within the context of a portfolio to have a few stocks off 10%, 20%, or maybe even 50% from all-time highs. However, if your entire portfolio is down 40%+ from 52-week highs, you’re doing something wrong. Hi everyone: It’s the most wonderful time of … Read more

Hard Work and the Trust That Binds

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Image Source: Terry Johnson By Brian Nelson, CFA We’ll have our traditional Valuentum Weekly email coming out on Sunday, and I’m excited to say our team is putting the finishing touches on our technology industry update, so we’ll have a whole bunch of fresh reports for you to look at Sunday evening/Monday morning. It’s easy to forget how much we’ve been through the past two years. Often, we forget how helpful the warning that markets were going to crash was the weekend before they did on February 22, 2020, “Is a Stock Market Crash Coming? – Coronavirus Update and P/E Ratios,” how we thought dollar-cost-averaging made sense at the bottom in March 2020, and how we went “all-in” in April … Read more

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

Domino’s Pizza Is a Stellar FCF Generator with an Enormous Growth Runway

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Image Source: Domino’s Pizza Inc – Second Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan One of our favorite capital appreciation ideas is Domino’s Pizza Inc (DPZ), and we include shares of DPZ as an idea in our Best Ideas Newsletter portfolio. The company’s unit economics are incredibly attractive for current and potential franchisees, which encourages current franchises to expand their existing operations and potential franchisees to join the team. At the top end of our fair value estimate range, Domino’s Pizza has a fair value of $541 per share, well above where shares of DPZ are trading at as of this writing. Great Business Model Domino’s Pizza recently launched its first store in Lithuania and now operates … Read more

Shares of Best Idea Domino’s Pizza Jump Higher!

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Image Shown: In the wake of Domino’s Pizza Inc’s stellar fiscal second quarter earnings report published on July 22, shares of DPZ surged higher. We include Domino’s Pizza as an idea in the Best Ideas Newsletter portfolio and continue to be huge fans of the name. By Callum Turcan On July 22, Domino’s Pizza Inc (DPZ) reported second quarter earnings for fiscal 2021 (period ended June 20, 2021) that smashed past consensus top- and bottom-line estimates with its US same-store sales growing by 3.5% and its international same-store sales increasing by 13.9%. The company noted that last fiscal quarter represented its 41st consecutive quarter of same-store sales growth in the US as its digital and delivery investments over the past decade … Read more

Top Ideas Doing Great

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Image Source: Aguayo Samuel By Brian Nelson, CFA Hi everyone: Hope you’re doing great. The S&P 500 (SPY) continues to roar higher. No longer is the market as easy of a call when we pounded the table near the bottom in April 2020, but we remain bullish on the backdrop. The economy remains very healthy, borrowing rates remain near all-time lows, and widespread interest in equities remains elevated given the paltry yields on alternatives such as investment-grade bonds. We continue to let our winners run, though we remain vigilant in protecting the downside. Quietly, the two top holdings in the Best Ideas Newsletter portfolio, Alphabet (GOOG) and Facebook (FB), have raced to outsized performance during 2021, advancing 43%+ and ~21% … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

Domino’s Pizza Well-Positioned for Long Run

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Image Shown: Domino’s has the right business model for the long haul. Unit economics are fantastic for franchisees, while same-store sales continue to benefit from first-mover digital initiatives. Earnings per share growth has been stellar for the past decade. Image Source: April 2021 Presentation. By Brian Nelson, CFA It could be a Tuesday afternoon or a Friday night. It’s never been easier to have your order from Domino’s Pizza (DPZ) delivered to your doorstep. With a few clicks on the app, you can place your order, track the pizza from the oven through delivery, and even know the name of the driver – all within a matter of minutes. From the young family looking for something quick and easy to … Read more

Chipotle Could Double the Number of Restaurants in the Long Run

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Image Source: Valuentum By Brian Nelson, CFA “Letting winners run” is an important dynamic behind the concept of compounding, and it often makes having a long-term horizon necessary. I talk about how we think about “letting winners run” in the following video, “Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value.” Compounding returns is one powerful aspect of investing. That said, we can understand why it may be confusing to see us continue to highlight ideas in the simulated newsletter portfolios that may be trading above the high end of the fair value estimate range, but per the Valuentum methodology, we would only look to remove them when their shares start to roll over in a meaningful … Read more

Earnings Roundup: BYND, DASH, DPZ, NVDA

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Image Shown: Shares of DoorDash Inc tumbled after the food delivery service reported its latest earnings report near the end of February 2021. In alphabetical order by ticker: BYND, DASH, DPZ, NVDA By Callum Turcan In this article, we’ve highlighted four companies that just reported their latest results. Domestic and international economic activities continued to face major headwinds from the coronavirus (‘COVID-19’) pandemic near the end of last year and into the beginning of this year, though corporates are now starting to plan for a world when “pre-pandemic” activities (such as going to eat indoors at a restaurant) can resume in earnest. Global health authorities are working to put an end to the public health crisis via ongoing COVID-19 vaccine … Read more