Top 7 Value Stocks | Summary and Q&A

TL;DR

This video provides analysis on the top 7 value stocks, including Merck, Pfizer, Crocs, Robert Half International, PayPal, General Electric, and Energy Transfer.

Key Insights

• 🛄 The website under development aims to provide valuation methods for different types of companies, including financial stocks.
• 🙃 Merck and Pfizer are both pharmaceutical companies with decent upside and attractive dividend yields.
• 👲 Crocs and Robert Half International are potential small-cap value stocks worth considering.
• 🍉 PayPal is undervalued and undebted, offering potential long-term investment opportunities.
• 🙃 General Electric's revenue growth is a concern, but it has a low debt-to-cash ratio and upside potential.

Transcript

hi i'm jimmy in this video we're looking at the top seven value stocks that we have found coming out of our private investing community over on discord we're looking at some large cap stocks we're looking at some small cap stocks and we've even got a pretty good dividend stocks towards the end of the video but before we jump into those companies i ... Read More

Questions & Answers

Q: How does the website calculate the fair value of stocks?

The website uses analyst estimates for free cash flow and discounts them back to the present using the required rate of return. This process gives the fair value of a stock.

Q: Why is Merck considered a potential investment?

Merck has a fair value of $115 per share, with an upside of over 30%. It also offers a dividend yield of 3%, making it a compelling option for long-term investment.

Q: What is the fair value of Pfizer stock?

Pfizer has a fair value of approximately $58 per share, with a dividend yield of over 3%. The company's debt is around $40 billion, while it holds cash and short-term investments of about $37 billion.

Q: How does Crocs fare as a small cap stock?

Crocs has a fair value of $85 per share, considering its $46 per share debt. Without debt, its fair value is estimated at $132 per share, making it an attractive option for small-cap investors.

Summary & Key Takeaways

• The video highlights the development of a website that calculates the fair value of stocks, with the intention of introducing various valuation methods for different types of companies.

• The top 7 value stocks identified in the video are Merck, Pfizer, Crocs, Robert Half International, PayPal, General Electric, and Energy Transfer.

• Each stock is analyzed based on factors such as fair value, dividend yield, debt, cash, and growth prospects.