If You Missed Palantir at $25... It's Happening Again

About this video

• Video Title: If You Missed Palantir at $25... It's Happening Again
• Channel: BWB - Business With Brian
• Speakers: Brian (host)
• Duration: 00:22:25

Overview

This video discusses four stocks that are currently trading below their recent highs, despite showing positive financial performance. The host, Brian, explains his three key metrics for evaluating stocks: free cash flow, sales growth, and operating margin. He analyzes GE Vernova, Uber, PayPal, and Intuitive Surgical, detailing their financial health, stock performance, and potential investment opportunities based on his "investment ladder" strategy. The video also touches upon the importance of not chasing perfection in stock selection and the potential for significant returns when investing in strong companies during market downturns.

Key takeaways

• Focus on Financial Health: Brian emphasizes evaluating stocks based on free cash flow, sales growth, and operating margin, rather than solely on profit.
• Undervalued Opportunities: The video highlights four companies (GE Vernova, Uber, PayPal, Intuitive Surgical) that have experienced significant stock price drops over the past year but continue to show positive financial performance.
• Investment Ladder Strategy: Brian introduces his "investment ladder" approach, which involves setting specific price points to buy a stock gradually as it falls, rather than investing a lump sum at once.
• Don't Expect Perfection: Brian advises against waiting for a "perfect" stock with all positive indicators, as this can lead to missed opportunities and paying higher prices.
• Due Diligence is Crucial: While offering analysis, Brian stresses the importance of viewers conducting their own research and understanding the risks involved in investing.

Here are the stocks discussed and Brian's verdict on them:

• GE Vernova: Passed all three financial checks, but analysts are split, and Brian's ladder suggests waiting due to the significant price drop below his buy range, indicating a need for further re-evaluation.
• Uber: Passed all three financial checks, showing strong financial performance. However, Brian highlights the significant investment in autonomous vehicles ($10 billion) as a major risk that overshadows positive signals, leading his ladder to also suggest waiting.
• PayPal: Passed the free cash flow and sales growth checks, but failed on operating margin. Brian sees it as a buy opportunity based on his ladder, but acknowledges the risk associated with the declining margin and the wide range of potential outcomes.
• Intuitive Surgical: Passed all three financial checks with strong growth. However, due to the new competition from Johnson & Johnson and the increased short interest, Brian's ladder advises waiting for a specific price point ($333) before considering a purchase.