Invest at your own risk; this is not financial advice! This is not a recommendation to buy or sell any securities discussed in the article.
In this short format I want to present to you companies and stocks, which are currently valued at an attractive level. Writing a deep dive takes me many hours and with this format I can introduce you to interesting ideas as of today.
I will only recommend high quality businesses and I am not interested in cheap, but mediocre companies. Always keep in mind, that the quality of the company is the first filter. If it does not possess a very good business model, I am not interested in the company, even if it is dirt cheap. With that being said, lets start!
Salesforce
Salesforce finally came down based on a rather pointless selloff. You can find my summary of the earnings call here:
As investors in great companies we are thankful if the market offers us such an opportunity. Salesforce is not just the market leader in CRM software but also owns products such as Slack and Tableau which you might also use. The current price is very attractive with an EV/net income of 41.5 and an EV/FCF-SBC of 26.7. Now keep in mind that Salesforce will most likely continue to grow around 15% per year and these valuations very soon go down to the high teens in the next 2-3 years.
Evolution
Evolution stock price is down 11% for the year but the company keeps performing. The increase in the tax rate to the global minimum of 15% was expected and will be here to stay. At the current level of an EV/net income of 17.4 and an EV/FCF of 16.6 it does not take too much to make to stock price soar. Evolution will pay dividends which are about 50% of its earnings so you will also generate some nice side income. At the current valuation you can Evolution with a handsome 2.9% dividend yield.
You can find my deep dive into Evolution here:
Axcelis
Even though Axcelis’ stock price has risen 46% since I published my deep dive in late April (I hope you are part of the journey) the company is still valued below its intrinsic value. Semiconductors are in high demand and so are the machines of Axcelis. At the current level of an EV/net income of 15.9 and an EV/FCF-SBC of 32.1 the company is still fairly cheap.
You can find my deep dive here:
That’s it for today. Let me know if you own any of these companies and which stocks you are looking into right now.
If you haven’t done so already, please follow me on twitter/x and reshare this post so it can reach more people.
Invest at your own risk, this is not financial advice! This is not a recommendation to buy or sell any securities discussed in the article.
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