Today’s Market Takes
Trade Call: Buy PATH for RPA Leadership and Undervaluation
"Number one, UiPath (PATH) is the easiest and most obvious buy if you're looking to hold for the next 12 to 18 months. As the leader in robotic process automation software for repetitive back office tasks, UiPath benefits from deep enterprise integration and is set to capitalize on easing interest rates. With a strong cash position, a net cash surplus, and a PEG of 0.83 that signals massive undervaluation, this stock is positioned to really outperform in 2026."
ZipTrader
A trade call on UiPath based on its dominant position in robotic process automation, clear benefits from a lower interest rate environment, and its attractive valuation metrics.
Buy McDonald's Based on Undervaluation for 2026
"But when I calculated the value of the business using my proprietary discounted cash flow model, I came to a conclusion that the business should be worth $417 per share and at $311 per share, the stock looks undervalued. So to answer the question I posed in the headline, do I think McDonald's stock is a buying opportunity for dividend stock investors? I say yes."
Parkev Tatevosian, CFA
The speaker recommends buying McDonald's for dividend investors, highlighting a DCF-derived target of $417 per share compared to a current price of $311. He emphasizes the role of technology in boosting operational efficiency and reducing costs, which supports the stock's undervaluation and favorable long-term potential for 2026.
Trade Call: Buy CRM as AI Transforms Enterprise Sales
"Number two, Salesforce (CRM) is transforming its enterprise CRM platform with AI-driven decision engines that enhance productivity and lock in customers. Cost discipline, expanding operating margins, and aggressive buybacks are turning Salesforce into a free cash flow machine. In a rate cut cycle, these factors—combined with the integration of AI co-pilots into the platform—make Salesforce an increasingly attractive proposition for long-term investors."
ZipTrader
A trade call on Salesforce based on its deep integration of AI into its CRM platform, rigorous cost discipline, and strong cash flow mechanics, which are expected to drive performance in a favorable rate environment.
Caution on Walmart's High Valuation Revealed in Earnings Multiples
"Okay, here's what I am worried about. 40 times earnings, guys. It's Walmart. Yeah, I know it's going to grow a lot, but it's 40 times earnings. Look at its profit margin. 10-year 2.45%, 5-year 2.38%, one year 3.26%. Guys, they make pennies on every dollar they sell. It's not a high margin business. I would rather wait until the stock is a lot lower to buy it at the right price."
Host (Everything Money)
The speaker expresses concern over Walmart's current valuation, emphasizing its 40x earnings and low profit margins despite growth prospects. He advises investors to be patient and wait for a lower entry price rather than overpaying for a fundamentally basic yet undervalued retail giant.
Bullish on Amazon Driven by AI-Enabled Margin Expansion
"Now, it's Amazon's turn. It's their turn in the MAX 7 in 2026. Amazon at around $232 has gained just 6% this year and trades for about 29 times projected 2026 earnings. We have here the Evercore ISI analyst, Mark Mahaney. One of my favorite analysts. I really like his thought process. He has a $335 price target on Amazon and calls it his number one large cap internet long. Right now it's trading at $220. So he believes it's a full $100 undervalued. My biggest distinction by far with what they outline here is I really think the robotics and automation and efficiency is the biggest story overall and having that enabled by AI I think is the big story here."
Host (Joseph Carlson After Hours)
The host endorses Amazon as the top pick for 2026, emphasizing that despite concerns over heavy capital spending, its margin expansion driven by robotics, automation, and AI will unlock significant value. He highlights Evercore ISI's Mark Mahaney's bullish price target of $335, suggesting the stock is currently undervalued at $220.