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Forget the NVIDIA Dip (3 Stocks That Are Actually Cheap) — Transcript

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0:00Massive news from Nvidia shaking the
0:02entire market today. [music] Should you
0:04be chasing this dip or is there a better
0:06way to find value in the market? Joining
0:08us today is Mark Likenfeld with the
0:10Oxford Club with a look at three stocks
0:13where you can find true value in this
0:15market today. Mark, I'm excited to dive
0:17into those stocks and really talk a
0:19little bit more about your theory on
0:21investing and what it means to find
0:23cheap stocks, stocks that are actually
0:24on sale, the real bargains in the market
0:26right now. But we can't start this video
0:29without talking about what's happening
0:30with Nvidia today. Wild news uh shaking
0:34the entire market. Let's just talk about
0:36the ripple effects that you expect to
0:38see not just for Nvidia but for the rest
0:41of the market today too.
0:42>> Sure. So, you know, as you and I are
0:45speaking right now, the stock is is
0:47bouncing a little bit, but if the stock
0:49is not able to really find its footing
0:51if investors
0:53decide to continue to sell the stock,
0:55and as you said, it would have a huge
0:57ripple effect on the market. I mean,
1:01think about it. every, you know, fund,
1:03every ETF owns Nvidia as well as its
1:07competitors where if it ends up being,
1:09you know, kind of a little bit of a
1:10contagion, uh, it could have a dramatic
1:12effect. I'm not trying to cause any
1:14panic because so far the damage has been
1:16contained pretty much just to Nvidia
1:18stock and even not too terrible, uh,
1:21just, you know, given today as as you
1:23and I are speaking. I mean, obviously
1:24the stock is down about 30% from its
1:26highs. Even before all this news broke,
1:29uh it had been tumbling. But um it has
1:33potential to to really affect a lot of
1:35people in a in a negative way. Or if the
1:38stock is able to bounce, if if people
1:40just say, "Hey, this is a uh an isolated
1:42incident. The company's going to move
1:43on. Their earnings are still still going
1:45to grow significantly. It's still
1:48arguably the most important company."
1:50Then, you know, everything could just go
1:52back to normal and Nvidia could continue
1:54to rise and hit new highs eventually
1:57and, you know, all will be forgiven.
2:00Perhaps not for uh the CEO, but at least
2:02for the company.
2:03>> Yeah. And just to to say the headline
2:05today, if you've missed it, somehow uh
2:08Jensen Wong resigned as the CEO of
2:10Nvidia. the CFO is going to be taking
2:12over as the interim uh CEO of the
2:15company and they are going to continue
2:17reporting earnings on Tuesday as
2:19expected. So I think there's going to be
2:22a lot of wait on that as well. I think
2:24there's more potential for volatility in
2:26the market on Tuesday with whatever
2:28comes out of these earnings reports too.
2:30And so all of that to say buckle in. It
2:33seems like there's going to be a little
2:34bit more volatility coming very soon,
2:36Mark. And I think a lot of investors
2:38look at the volatility and maybe for for
2:40good reason as a chance to buy the dip
2:43on some of these massive companies, a
2:45chance to find some value and get some
2:47higher returns when you see the market
2:49in a little bit of turmoil like it is
2:50right now after such huge news uh on one
2:53of the country's biggest stocks. So for
2:56you, are you one who chases those dips,
2:58who looks to find value in an Nvidia
3:01when you see an isolated insulin like
3:04this taking the company stock down so
3:06much?
3:06>> This that's a great question. So every
3:08situation is obviously different. It
3:10depends why a stock is falling. Many
3:11times there's a very good reason that
3:14investors are selling off a stock
3:15because it deserves to be. Whether it's
3:18because earnings are slowing, uh
3:20mismanagement, you know, you name it.
3:22There can be a variety of factors that
3:23cause a stock to fall for very good
3:26reason. With Nvidia, you know, I think
3:29it's it's kind of a a mix where you had
3:32this this CEO who was a visionary
3:36founder of the company obviously, you
3:37know, he was kind of like a Steve Jobs,
3:39you know, mythical character, uh, who
3:42led this company and he obviously was
3:44incredibly important to Nvidia's growth.
3:48So with his departure, there's certainly
3:51a a bit of an unknown and as you
3:53mentioned, the CFO is going to be the
3:55interim CEO. They have said that they're
3:57going to look for a new CEO. So we don't
3:58know who is going to be managing this
4:00company long term. On the other hand,
4:02Nvidia does have its hands in so much
4:06technology, so much of the AI uh you
4:09know movement and growth and their
4:12earnings are expected to continue to
4:14grow very strongly, very significantly.
4:17Is this interimm CFO is the is a
4:20potential new CEO going to completely
4:21derail that? Probably not. Uh, you know,
4:24obviously there's going to be some
4:26changes with new management, but I think
4:29the long-term story is still pretty
4:31intact with Nvidia, at least right now.
4:34Again, it's hard to imagine new
4:37management coming in and completely, you
4:39know, disrupting the story. Uh, so to
4:42me, you know, is it a buying opportunity
4:45at this moment? might want to see where
4:47the stock settles uh if it continues to
4:50be volatile. But with strong earnings
4:53growth and and a pretty reasonable
4:55valuation, I mean right now the stock is
4:57trading at at about 17 times 2027
5:01projected earnings. That is a pretty
5:04reasonable valuation for a company. You
5:06know, forget the name Nvidia for a
5:08company with this kind of growth and
5:10this kind of um importance in its
5:14markets. I think 17 times earnings uh is
5:17is a pretty reasonable number. And I
5:20think at least with 2027, you can have,
5:22you know, some level of confidence that
5:24they're going to be in the ballpark of
5:27of their earnings estimate. I mean,
5:29every company there there's always, you
5:30know, a chance that you could miss, a
5:32chance you could beat, but you know, I I
5:34think it's it's reasonable to expect
5:36that they'll be in the ballpark. Yeah,
5:38it's a good analysis of what's happening
5:39with Nvidia, but you you keyed in on a
5:41word that I want to focus on, and I know
5:43that's what we're going to talk about
5:43with the stocks that you have for us
5:45today, too, and that's valuation and and
5:47talking about we again, we have so many
5:50videos that come out all the time that
5:51say buy the dip, buy the dip, and we
5:53hear from a lot of uh technical analysts
5:55on the show who are just looking at
5:56charts and they're looking at what has
5:58something pulled back to, where is that
6:00bounce happening? That is one way to
6:02invest. It's one way to look at the
6:04market for sure. But I I want to address
6:06looking at the valuation versus looking
6:08at, oh, the stock is down 70% off its
6:11highs. Why is that an important
6:13differentiator for you, Mark?
6:14>> And anytime you're looking at a stock
6:16that has fallen, like I said, you know,
6:18sometimes there's a very good reason.
6:19So, you want to understand that. I do
6:20find that the technical levels can be
6:23very important and good places to
6:26perhaps take a swing. So, if you're
6:27looking at a stock, it's falling, you
6:29you say to yourself, okay, this is a
6:31reasonable valuation uh or a low
6:33valuation. you know, I I think this is
6:35something I want to get involved in, you
6:36may want to wait until it falls down to
6:39support, improve the risk-to-reward uh
6:42situation. Or on the flip side, and I'll
6:44be talking about this with one of the
6:46stocks today, when it actually breaks
6:48out. Very often, a stock can be a really
6:50good valuation, but kind of be dead
6:52money for months or even years, just
6:55trading sideways. So once it breaks out
6:57of resistance, that could be the signal.
6:59Okay, now you have the company with, you
7:01know, good fundamentals, low valuation,
7:03but now the market's starting to notice
7:05and the stock looks like it's going to
7:07be on the move. So, you know, every
7:09situation is going to be a little bit
7:10different and and when stocks are
7:12falling hard and I'm I'm starting to get
7:14interested, you know, I'm looking at
7:15first the business, you know, is is the
7:17business solid? Are they going to grow?
7:19Do they have cash flow? Uh, that all
7:21that's really important, then the
7:22valuation, and then I'll look at a chart
7:25and say, okay, is this the time to buy?
7:27Is it am I trying to catch a falling
7:29knife here or is there you know some
7:31level of support or like I said perhaps
7:33getting ready to break out where I can
7:35fine-tune that timing. So you know like
7:36the fundamental story like the valuation
7:38and then use the charts to try to
7:40fine-tune the timing a little bit.
7:41>> Yeah. All really good information for
7:43investors and I know that's exactly what
7:45you do on your newsletter Mark is you do
7:47this kind of teaching talking about
7:49where investors should be looking uh at
7:51diving into research on a company before
7:53you actually invest. And that's what the
7:55Oxford Income Letter is all about. It's
7:57a newsletter that Mark puts out every
7:59month. There's also a few special
8:00reports in there that have some of
8:02Mark's best stock picks in different
8:04sectors of the market. And you can join
8:06that newsletter today by skating the QR
8:08code or clicking the link in the
8:09description. If you are on the Oxford
8:11Income newsletter, you're going to get
8:13all of Mark's knowledge, all of his
8:15education, and also those stock picks
8:17before anyone else. So, sign up for that
8:19today. Again, it's a special offer just
8:21for our viewers. Normally, you don't get
8:22this kind of access to to joining Mark's
8:25team. So, if you want to join him and
8:27learn a little bit more about him, too,
8:29make sure to sign up for that Oxford
8:30Income newsletter today. Okay, Mark, I
8:32want to get into this list today. And
8:34and just to preface it, we are not going
8:36to be talking about the volatile AI
8:38market where we are seeing lots of
8:40changes right now, especially with
8:41Nvidia. There's a lot of risk in that
8:43area. We're going to cover a lot of
8:45different kinds of stocks today, and I'm
8:46excited about that, too.
8:48>> Yeah. And these stocks are a little bit
8:49more uh recession resistant I think. Um
8:52you know we have a consumer staples
8:54company a healthcare company. Uh but the
8:56first one I want to talk about is
8:58Ashland. The ticker is ASH.
9:01Not a super well-known stock. They make
9:04uh additives and ingredients for food
9:07for beauty products life sciences other
9:10industries. Uh so they're they're really
9:11an ingredient company. This stock has
9:14been beaten up. They're expected to grow
9:15earnings 28% this fiscal year which ends
9:19in September of 2027. Another 32% over
9:23the next 2 years and it's trading at 18
9:26times 2027 earnings. So, you know, a
9:29fairly low valuation for the kind of
9:31growth that is expected. Now, this
9:33growth is is kind of a change. The
9:35company had not been doing great uh up
9:37until what's now expected going forward.
9:40But they what's really interesting here
9:42is they are in an activist investor
9:45situation. So uh for for your viewers
9:48who are not familiar with activist
9:49investors that's when uh usually big
9:52hedge funds come in take a large
9:55position in the company and start
9:57demanding changes. So in this case
9:59they've already added two new board
10:00members and the board is now considering
10:03strategic alternatives which often means
10:05a sale or a spin-off of some part of the
10:08company. And just to give you an an
10:10example of perhaps roughly where the
10:15stock could trade. So a competitor
10:18called Selines had a materials business
10:20sort of similar to Ashlin. It's it's not
10:23exactly apples to apples but you know
10:24same general uh sector and they sold
10:28that business for 13 times IBIDA uh
10:31earning before interest taxes
10:33depreciation and amortization. So, if
10:35you applied that same multiple to this
10:37fiscal year's guidance for Ashland, that
10:39would come out to $118 a share. And the
10:42stock is currently at 76. Now, I I don't
10:44expect them to get $118. That's, you
10:47know, a 50% premium. And these kinds of
10:50companies aren't going to go for a 50%
10:52premium, but it does show you that that
10:54there's real opportunity here if they
10:57were to sell the business, which again,
10:59the activists, you know, they want
11:01something to happen. They're they're
11:02trying to shake things up and and either
11:05get this company sold, spin out some
11:06businesses or perhaps just these two new
11:09board members will really start to
11:11improve things in a dramatic way. So,
11:13the business is is expected to start
11:15growing and you have these activist
11:18investors that are also trying to make
11:21things happen on a shorter term basis.
11:23>> So, interesting. A lot to to dive into
11:25there and what you just said. Some of
11:27what I hear, Mark, sounds like potential
11:29risk. Do you think that there is a risk
11:31in this one with all of those potential
11:33changes if it's going to be a potential
11:35sale? If they've got new transition in
11:37leadership, um maybe even changing their
11:40business model a little bit by by the
11:41sounds of it. Could all of that spell
11:43risk or does it spell opportunity or can
11:45it be a little bit of both?
11:46>> Oh, it it certainly could be both. And
11:48and speaking of risk, one thing to point
11:50out is that 11% of the float is sold
11:53short. You know, typically, so when when
11:55you look at at short interest, there's
11:57two ways to think about it. One is
11:59shorts tend to be pretty smart investors
12:03and they do their homework. So when
12:05people get short, there's usually a good
12:07reason. On the other hand, they're not
12:09always right. And when you have a large
12:11chunk of stock sold short, that can
12:14create what's known as a short squeeze.
12:16When a stock starts to rise and you have
12:18all these people betting the wrong way,
12:20they then have to cover their shorts.
12:23Otherwise, they're, you know, they're
12:25taking on big losses. And to cover their
12:27shorts, that means they have to buy
12:28stock. And so when you have a large
12:31percent of the float sold short, the
12:33potential for a short squeeze with with
12:35this kind of artificial demand, if the
12:37stock starts rising, you get even more
12:39buying action because the shorts are
12:42covering their position. That can lead
12:43to a short squeeze, which can push a
12:45stock sharply higher. So seeing a a high
12:48short interest is is kind of a
12:49double-edged sword. you want to be a
12:51little bit careful because again the
12:53shorts tend to know what they're talking
12:55about. They tend to have good reasons
12:57for being short. On the other hand, when
13:00it goes against them, it can go against
13:01them in a big way and it can happen
13:04quickly. So, uh I when I was an analyst
13:08at a very contrarian research shop, one
13:11of the things that we were trained to
13:12look for for buy recommendations were
13:16companies with heavy short interest. And
13:19if we could find a reason why we believe
13:22the shorts were wrong, uh that was very
13:24often an excellent opportunity for uh
13:26for very quick uh share price
13:28appreciation.
13:29>> Yeah, I know. I love I love that about
13:30you, Mark, is that you have that
13:31specific analyst background too, so you
13:33know what to look for and what that
13:34could mean sometimes about a company. I
13:36want to go back to the valuation because
13:38that's kind of the the thesis of this
13:40video is talking about these are bargain
13:42picks for you. What makes this a a
13:44bargain buy? And is it is valuation a
13:46part of that or is it more of that story
13:48you dove into right away of the the
13:50story behind the scenes of kind of a
13:52company in transition?
13:53>> The reason I think the valuation is low
13:55is because the company is in transition.
13:57As I said, it's trading at 18 times
13:59earnings, but they're expected to grow
14:01earnings 28%. So, you know, typically if
14:04if you can get a a price earnings to
14:06growth ratio at one or less, which this
14:09is because it's 18 times earnings and 28
14:12time uh 28% expected earnings growth.
14:15So, if you can get that that PEG ratio
14:18at one or less typically, I mean, every
14:20sector's a little different, but
14:21typically that's a bargain. So, this is
14:23this looks very inexpensive to me uh
14:26from a a price earnings growth uh ratio.
14:30Um, so, uh, that's certainly, uh, what
14:34really caught my eye here. The reason
14:36it's trading at a bargain valuation is
14:39because the company had been struggling
14:41for a number of years and has not proven
14:44that it has turned things around yet.
14:46Again, it's expected to, but, hasn't
14:47proven that yet. I suppose once they
14:49start reporting out quarters in 2027, if
14:52those numbers are good, uh, you'll see
14:54that valuation increase.
14:56>> All right, Amil, a good first company to
14:58look at. I want to move on to the next
14:59stock that's on your list of where to
15:01find value in the market right now.
15:02What's the second stock that you're
15:04recommending?
15:05>> So, the second one, and this this one is
15:07somewhat uh resist recession resistant,
15:09which I always like. Uh Central Garden
15:12and Pet Company. Uh ticker symbol is CE
15:15NA. Called this almost a small cap
15:18because it's a $2.6 billion market cap.
15:20Uh typically the cut off for a market
15:22cap is 2 billion, but this is this is
15:24pretty close. Um this is trading at just
15:2614 times forward earnings where earnings
15:29are expected to grow 27% over over the
15:32next four years. It's trading below the
15:34sector median of 16 times uh forward
15:37earnings. So it's trading uh you know
15:40below the uh the market median the
15:42sector median uh price to sales on a
15:45trailing and forward basis is right at
15:48one. Uh that's typically kind of the
15:50line in the sand for what's considered a
15:52bargain. Anything at one or less on
15:55price to sales is considered cheap. Also
15:57a little bit below the sector median.
15:59Price to cash flow is a little bit below
16:02eight and um well below the 10.7 sector
16:06median and also very general terms
16:08anything below 10 times cash flow is
16:11considered uh inexpensive. U at the same
16:14time this is a a cash flow positive
16:16company very cash flow positive. It
16:17generates $300 million a year in free
16:20cash flow. Has a very healthy balance
16:22sheet. does have some debt, but debt has
16:24been at the same level for years. It's
16:26growing the amount of cash it has. And
16:28then I think this is really interesting.
16:30You know, earlier we were talking about
16:31from a technical perspective. If you
16:33look at the chart, it's really been
16:34trading sideways for um about five
16:40years, six years. And if if you pull up
16:43that chart, you know, it hit a high in
16:462021 uh just below $45 and has not been
16:49able to get back there. It looks like
16:51it's it's about to try and if it can get
16:54through $45, I I think this is easily a
16:58$60 stock within let's say 12 months.
17:01So, you have a very very low uh you know
17:05valuation with a stock that looks like
17:07it's trying to start to get going and if
17:09it does it could it could move quickly.
17:12>> Yeah, this is an interesting one. It has
17:13absolutely shown up on my show before
17:15but not for over a year. I think it's
17:17been almost two years since I heard this
17:19name pop up. I was talking to another uh
17:21value investor like yourself that's
17:23always looking for solid companies and
17:25so uh it makes sense that this this
17:26stock shows up again with you for sure.
17:28I think looking back historically is a
17:30great way to analyze this company and
17:33looking for that new breakout. I think
17:34the 2021 influx and rise in the stock
17:38makes sense because everybody got a
17:40puppy during COVID [laughter]
17:42during the lockdown. everyone got a new
17:44pet. And so I I think that that surge in
17:47that 2020 2021 season makes a lot of
17:50sense based on what was happening in the
17:52world. And so when you say that you
17:54started this talking about a little bit
17:55of a recession proof company, I'm I'm
17:57curious with pet care with any any
18:00company that's tied to that. Is that
18:02really a recessionproof industry or is
18:04that an area in difficult economic times
18:07where people might tighten their
18:08personal belts and spend a little bit
18:10less, that sort of thing? or is what
18:12Central Pet offers so essential to
18:15whether it's farmers or pet owners, that
18:17sort of thing, that they're kind of that
18:19recessionproof uh business?
18:21>> Yeah. So, I would use a term recession
18:23resistant versus, you know, truly
18:25recessionp proof. But, you know, with,
18:27you know, we've seen just this this very
18:29strong trend over the past decade, maybe
18:32even longer, of of almost the the
18:34humanization of our pets where people,
18:37you know, truly believe that they are
18:39part of their families. You know, it's
18:41it's very different, I think, than from
18:44when I was a kid. And and certainly
18:46people love their their dogs and their
18:47cats and their pets back then, but I
18:49don't think anybody really used the term
18:51family back then, whereas now they
18:53really do. I mean, every plane you get
18:54on, everybody's got their dogs and cats.
18:57Uh, so it's
19:00I have a hard time picturing in a
19:02recession people just, you know, kind of
19:05giving up their dogs and cats because
19:06they're too expensive. Obviously, you
19:08know, there may be some that have to,
19:09but for the most part, uh, it's it's a
19:12member of their family and and I don't I
19:14don't expect that they're going to give
19:16it up. They may downgrade, let's say,
19:17the dog food instead of the super
19:19expensive organic, you know, chef
19:22prepared dog food. They may go back to
19:24uh to more traditional food for the
19:26dogs. But, uh, I I do think that people
19:29will continue to love their pets to to,
19:31you know, want to keep them happy and
19:34healthy as long as they can. And
19:35especially during tough times, you know,
19:37when perhaps you're not going out as
19:39much, then having that time with the dog
19:41and uh, and getting some enjoyment at
19:44home will be even more important.
19:46>> Yeah, I know. I shared this with my
19:47viewers or I'm a new puppy parent right
19:49now. We've had a puppy for about a month
19:51and it's a lot of work, but yes,
19:53definitely a family member for sure. So
19:56interesting company to talk about more
19:57on the the fundamentals of the company
19:59and the price action in the chart. Why
20:02would a company like this that does have
20:03that strong potential like you said be
20:05be kind of trending sideways for so long
20:08for five years is a long time to kind of
20:10stay within a similar range what would
20:12cause a breakout now what what's
20:14changing that that shift
20:16>> so it could be a number of things I mean
20:19you could see the company starting to uh
20:22you know improve their numbers or what
20:25very often happens and and and this is I
20:27think one of the benefits of looking at
20:29the charts is very often the the price
20:32starts to move before the fundamentals
20:35do. So, you know, investors that are in
20:37the know, whether that is, you know,
20:40insiders buying the stock or hedge funds
20:43that or are really doing their homework
20:45and and are having conversations with
20:47management, you know, they're buying the
20:49stock in anticipation of things turning
20:51around fundamentally. you know, so often
20:53whether we're talking broad markets or
20:56individual stocks, you'll often see
20:58price uh you know, uh ahead of the
21:02changes in the move. I mean, just even
21:03looking at Nvidia, uh Nvidia stock has
21:06been falling for several weeks before,
21:09you know, the scandal broke with the
21:11CEO. So, I'm not saying that that was
21:14the reason it fell, but it it's not
21:16unusual that the price precedes uh you
21:20know, news or or or fundamentals.
21:23>> That was a really good answer to a
21:25really hard question, Mark. Thank you so
21:26much for diving into that. Again, I love
21:29having you on the show because you are
21:30such a calm and very wise teacher for
21:33investors who are especially just kind
21:35of learning where to find value in this
21:37market, especially those who maybe have
21:39had their portfolios hit really hard in
21:41the last few weeks of volatility in the
21:43market of chasing the dips that are out
21:44there. This is a different way to look
21:46at investing and I think that you can
21:48learn more by joining Mark's Oxford
21:50Income newsletter. Again, he sends out
21:52newsletters every month. He interacts
21:54directly with his subscribers at the
21:56Oxford Income Newsletter. So, this is a
21:58great way to to kind of reach out to
22:00Mark directly and learn from him and
22:02also get some of his best stock picks in
22:04the market, this different way of
22:06looking at investing and finding real
22:08value, especially through volatile
22:09times. So, scan the QR code, click the
22:12link in the description. Again, you have
22:13special access to join Mark's newsletter
22:16through that link in the description.
22:17All right, Mark, we have one more stock
22:19to cover today. What's the third area
22:21that you are finding some value in the
22:23market right now? All right. So, this
22:24one I would call somewhat recession
22:26proof. That's HCA Healthcare. Ticker
22:29symbol HCA. Uh they are the largest
22:32hospital network in the United States.
22:34So, you know, good times, bad times. If
22:37you need your appendix out, uh you're
22:39probably going to get it.
22:41>> So, I do like, you know, hospitals for
22:43that reason. They are um it's the
22:46largest in the in the US, but they have
22:48a pretty strong concentration in Texas
22:51and Florida. Uh where you know the
22:53demographics are very very strong. A lot
22:56of people moving to both states. Florida
22:58you know certainly uh an older
23:00population. So what we know about older
23:03people is they need more healthcare. Uh
23:05so uh certainly a great market for a
23:08hospital chain to be in. earnings are
23:10projected to more than triple over the
23:13next 10 years. Yet it's only trading at
23:15a 17 uh PE ratio both trailing and
23:19forward and which is below the sector
23:22median of 20. So uh I think a very very
23:25good valuation for the growth that it is
23:28expected to experience. And then you
23:30have politics. So Democrats as we know
23:34uh you know are controlling the Senate
23:36and the House. They're going to be
23:38fighting hard to roll back cuts to
23:39Medicaid. Any uh roll back of those cuts
23:43will certainly be positive for
23:44hospitals. Then looking out past 2028,
23:48if the Democrats uh maintain uh control
23:51of Congress and a Democrat gets elected,
23:55then suddenly Medicare for all is on the
23:58table and that would be a boom for
24:01health care providers like hospitals.
24:04So, I I think there's there's a lot to
24:07like here on the story. And then if you
24:09look at the chart, this is one of the
24:11strongest long-term charts you will ever
24:14see, perhaps other than Nvidia. I mean,
24:16this stock is up 30x in about 15 years.
24:20And so, it's down from its all-time
24:22highs, but not that much. I mean, we're
24:24we're probably about 10% from all-time
24:27highs. So, it's not that this is a stock
24:28that's been absolutely creamed that
24:31you're scooping up at bargain basement
24:33levels. No, this is just a stock that
24:34has been just a fantastic long-term
24:37performer that's trading at a at a real
24:40good valuation compared to the huge
24:42growth it's expecting. Uh, and then as
24:45of this moment, you have, you know,
24:46political tailwinds. That obviously
24:48could change at at any time, but at
24:50least as of right now, it's uh it's it's
24:53in the company's favor. And like I said,
24:56it's it's somewhat recession proof in
24:58that, you know, people need their health
25:00care and they're they're going to go to
25:01the hospital when they need to, whether
25:04uh you know, GDP is is booming or
25:07contracting.
25:07>> Yeah, the long-term chart really stands
25:09out, Mark. I'm glad that you pointed
25:10that out because it's incredibly strong
25:12like you said. Also, some of the
25:14political issues um and points for this
25:16company are so interesting to think
25:18about and could be momentum drivers or
25:20maybe volatility drivers. I think that
25:22that anytime you have politics involved
25:25in a company business model, I I do
25:28think that it can lead to just
25:29volatility because it's unpredictable.
25:31Um, and that's part of it for sure. But
25:33let's look at the the earnings and the
25:35valuation for this company, too. And I
25:36know you mentioned it already, but just
25:38looking at their last earnings report,
25:40incredibly solid. Uh, do you think that
25:42we can continue to see that same kind of
25:44quarterly growth for this company? And
25:46will that be enough to move the momentum
25:49forward for this stock? Or are all those
25:51other factors, the political issues
25:52hanging overhead, the other things um
25:55potential holdbacks for this stock to
25:57continue to grow?
25:58>> For 2026 and 2027, earnings estimates
26:00are for singledigit growth, accelerating
26:03to double digits every year from 2028 to
26:062035, including uh getting up into the
26:09the 20s as you get to 2034, 2035. Now,
26:14obviously, that's a long way off. Those
26:15those numbers are going to change over
26:17time, but uh it does show you the um the
26:21the projections uh and what Wall Street
26:24is expecting from this company as far as
26:27growth, you know, because of its
26:29business model because it's the largest
26:30hospital chain in the country. Uh and
26:33so, you know, it certainly has all the
26:35advantages of that scale, whether you're
26:37talking about cost control, whether
26:39you're talking about dominating certain
26:40markets. So, uh, there's just, you know,
26:43a lot to like here for the long term.
26:46Uh, you know, short-term if you and
26:49again, if you look at the chart that the
26:50long-term chart is great, but there have
26:52been some some significant, uh, dips
26:55along the way. So, you know, this is a
26:58stock that I like from a valuation
27:00perspective to put in your portfolio and
27:03be more of a set it and forget it type
27:05stock that, you know, the kind of thing
27:06that you're going to look back at 5, 10
27:08years. And I think it's going to do
27:10really really well because of its
27:12business model and you're buying it at a
27:15at a very good valuation. But again, you
27:17mentioned politics. Anything could
27:18happen in 2028. A Republican is
27:22reelected to the White House or Congress
27:24shifts. Uh that could put some pressure
27:26on the story perhaps on expected
27:30earnings going forward. Uh but also, you
27:33know, healthc care policy is it's like,
27:36you know, turning around a cruise ship.
27:38It takes a while. It's not uh it's not
27:40an easy pivot. So, you know, I I I think
27:44these things kind of these these kind of
27:46stories and these tailwinds, at least
27:48right now, probably have some legs to
27:51last for a few years.
27:52>> Yeah, absolutely. Like you said,
27:53anything can happen. We saw that this
27:55week with Nvidia. Uh a week ago, this
27:58wasn't even on anyone's horizon. And
28:00then a week later, uh, one of the
28:02largest, you know, most important CEOs
28:04in the nation is now out. So, like you
28:07said, anything can happen. It's a a
28:09different comparison, but I think it's
28:10important for investors to keep that in
28:12mind, too. Mark, I loved this
28:13conversation today, especially given
28:15everything that's happening this week
28:17and last week in the market. It's good
28:19to also take a look and not forget about
28:21these solid companies that have true
28:24momentum going, have really strong
28:26fundamentals, and are real actual value
28:29plays. and value buys for investors to
28:31consider. Thank you again, Mark, for
28:32coming on the show and and giving us a
28:34little diversity in the stocks that
28:36we're talking about this week. If you
28:37want to hear more from Mark, we recently
28:39had him on the show, too, and he talked
28:41a lot about these same kind of value
28:43stocks where you can find long-term
28:45growth over time. You can watch that
28:47latest interview we had with Mark right
28:49here and get more stock ideas from him,

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