Today’s Market Takes
T-Mobile Trade Call - Avoid Due to Overpriced Valuation and High Debt
"T-Mobile stock is in this doghouse right now. It's trading near its lowest price in a year, and not because it's a bad business. Sometimes it just doesn't make sense right away. Their debt levels and disappointing returns on capital make the numbers hard to justify. Automatically, I'm looking at this and thinking, this is kind of crappy. This is kind of ugly. So for me, I'm passing on this one and waiting a little bit longer."
Host (Everything Money)
The analyst reviews T-Mobile's situation, noting that despite revenue growth and customer gains, high debt and low returns on capital create red flags. The valuation and financial metrics are unsupportive, leading to a decision to pass on the stock for now.
Costco Sell Call with Downside Price Target
"And Costco is the final one. The shares are down 2% after Roth Capital partners cut the company's shares to sell from neutral. This caught my attention as we rarely see a seller rating on anything these days and the company has 24 buys and 15 holds. The analysts there are saying that despite an earnings beat he flags several underlying metrics are concerning like renewal rates fading, paid members slowing and store traffic decelerating on a year-to-year basis. And they see downside to $769 which would represent quite a big decline more than 10% from where we're trading currently at $869 a share."
Tatana Darier (Stock Movers)
This insight highlights a sell call on Costco where Roth Capital Partners downgraded the stock from neutral to sell. The commentary cites declining renewal rates, slowing paid membership growth, and decelerating store traffic as key concerns, and it mentions a downside price target of 769, signaling a potential drop of over 10% from current levels.
EWBC's Market-Beating Potential Over the Next Five Years
"I am generally really bullish on banking right now. I think, as these episodes have made clear, this one isn't nearly as cheap as some of the ones we were talking about. It's I think 1.6 times book, which isn't bad, but you don't have that runway. I said it's not the same dividend as all the others. I think this is a market beater, 10-15% and probably closer to 10% on this one. Safety is seven. Banks have risks, but this is a good core business, a great relationship with its customer base. I think they know what they're doing, and they'll be fine."
Matt Frankel (The Motley Fool)
The speaker expresses bullish sentiment on East West Bancorp (EWBC), highlighting its solid valuation at approximately 1.6 times book and a potential market beating return of 10-15% over the next five years. Emphasis is placed on the bank's strong customer relationships and niche focus, with an acknowledgment of inherent banking risks offset by a robust business model.
ServiceNow M&A Opportunity Despite High Valuation Concerns
"Well, we got to take a look at Service Now, Paul, because it's M&A Monday. Bloomberg news exclusive reporting the company is in advanced talks to buy Armis which is a cyber security startup and those shares now down though so ticker N O shares are down more than 10% now so extending some of those opening declines. Bloomberg has weighed in on this, saying that for now Service Now would help its ID asset management practice, but they're just questioning that deal price — $7 billion to gain 300 million in annualized recurring revenue, which to them seems expensive. I don't know the multiples here, but I mean, it's a fast growing business and, you know, you got to put this capital to work somewhere. I don't have a problem with it. Let's go."
Paul Sweeney (Stock Movers)
The discussion highlights ServiceNow's advanced discussions to acquire the cybersecurity startup Armis for $7 billion in exchange for 300 million in annualized recurring revenue. Despite a drop of over 10% in share price during the announcement, the speaker expresses a mild bullish stance, emphasizing the company's fast growth and the need to deploy capital effectively.
Micron Earnings Trade Call
"One stock that we know is going to report this week is Micron. Okay, Micron had a buy here at 211. You're trading at 241 and you went all the way up to 261. They have earnings coming up. What's the price target that they put on there? Uh Bryson reiterated out perform, raised his price target to $300. It's a nice big move up. And by the way, Micron is still in the quant rating with a 4.99 out of five. It's got the same growth, profitability, momentum and even better analyst revisions. This is a quality stock. They're reporting earnings this week. Go and figure out if you want to buy it."
Daily Podcast Recordings
The host explicitly recommends buying Micron (MU) ahead of its upcoming earnings report. He notes that Micron was bought at 211, is currently trading at 241, and reached 261, while an analyst raised the price target to 300. He highlights strong momentum, robust quant ratings, and positive analyst revisions as reasons to consider this stock.