Top 5 Watchlist Stocks We are Close to BUYING

TL;DR

Starbucks and Google show strong growth potential, Cisco demonstrates improvements in its supply chain, Southwest Airlines is a well-run company with growth potential, and American Express has solid financials despite concerns about credit losses.

Transcript

five stocks that we are looking at on our watch list spoiler alert Mo and I own two of them stock number one Starbucks so Starbucks has a big plan for some growth I believe don't they mo is there something about that really I don't know but you know I look at this the $ 110 billion doll company market cap wise so you Bor the shares 143 Enterprise V... Read More

Key Insights

• 💪 Starbucks has strong growth potential, with consistent revenue and same-store sales growth, as well as a loyal customer base.
• 👨‍🔬 Google's stock has been performing well, with significant growth and dominance in worldwide search through its subsidiary, YouTube.
• 🥶 Cisco has resolved its supply chain issues and generates more free cash flow than net income, making it a solid company.
• 😘 Southwest Airlines, despite being impacted by low-profit margins due to the pandemic, has a history of strong profit margins and potential for future growth.
• ✋ American Express has solid financials, with a high gross margin and decent return on equity, although there are concerns about increasing credit losses.
• 🇦🇸 It is important to consider the potential impact of a recession on American Express and Southwest Airlines.
• ❓ Share buybacks are suggested for Southwest Airlines instead of paying dividends.
• 👨‍🔬 The performance of these stocks should be analyzed based on individual research and not just stock price fluctuations.

Questions & Answers

Q: What is the growth potential for Starbucks?

Starbucks has shown consistent revenue and same-store sales growth, with their fourth-quarter revenue up 11%. They also have a strong user base for their loyalty program, indicating potential for further growth.

Q: How has Google's stock performed recently?

Google's stock has been on a rise, increasing from $130 to $141 per share in just six days. Their revenue growth has primarily come from YouTube ads and search.

Q: What improvements has Cisco made in its supply chain?

Cisco has resolved its supply chain issues and has seen a substantial increase in net income and free cash flow. They have a good return on invested capital and a manageable debt level.

Q: Why is Southwest Airlines paying a dividend?

Despite currently low-profit margins due to the pandemic, Southwest Airlines has a history of strong profit margins. The dividend payout is considered unnecessary by some, who suggest share buybacks instead.

Q: What are the financials of American Express?

American Express has a high gross margin and decent return on equity. They have a single-digit price-to-free-cash-flow ratio and solid financials overall, although there are concerns about increasing credit losses.

Summary & Key Takeaways

• Starbucks has a market cap of $110 billion and has shown consistent cash flow growth, with strong revenue and same-store sales performance. Their loyalty program has also seen an increase in usership.

• Google's stock has seen significant growth and currently owns 85% of worldwide search with its subsidiary, YouTube. They have experienced growth in revenue, particularly in YouTube ads and search.

• Cisco has resolved its supply chain issues and generates more free cash flow than net income. They have a good debt level and a high return on invested capital.

• Southwest Airlines has a strong profit margin history, and although currently impacted by low-profit margins due to the pandemic, they are expected to rebound once gross profit recovers.

• American Express has a solid financial position with a high gross margin and decent return on equity. They have a single-digit price-to-free-cash-flow ratio and are an eight-pillar stock.