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Yahoo
15 hours ago
- Business
- Yahoo
Schlumberger Limited (SLB): A Bull Case Theory
We came across a bullish thesis on Schlumberger Limited (SLB) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on SLB. Schlumberger Limited (SLB)'s share was trading at $33.34 as of 2nd June. SLB's trailing and forward P/E were 11.30 and 10.29 respectively according to Yahoo Finance. This company stands out as a digital and integrated powerhouse in the oilfield services sector, with its Digital & Integration segment delivering the highest operating margin at 33.2%, fueled by proprietary platforms like DELFI and a vast exploration data library. The segment's 10% year-over-year growth is driven by a successful SaaS transition and growing demand for AI-powered services. Over 81% of its operations are international, with the Middle East and Asia contributing 36% and expanding at an impressive 18.2% annual rate. This global orientation mitigates North American volatility and fosters deep, long-term client relationships, particularly with national oil companies. Unlike competitors, the firm offers a unique full-stack solution from reservoir modeling to production optimization, vertically integrated across four segments that operate cohesively. This system-level approach results in high customer dependency and service bundling, reinforcing retention. Its competitive moat is strengthened by decades of proprietary subsurface data, global regulatory expertise, AI-driven decision tools, and entrenched relationships with government-linked clients. Asset Performance Solutions (APS) contracts in regions like Ecuador and Canada bolster recurring, asset-linked revenue. Operational excellence extends across divisions, with robust margins in Well Construction (21.2%), Reservoir Performance (20.2%), and Production Systems (15.6%), the latter seeing a 297 basis point margin expansion due to improved pricing and successful joint ventures. Together, these elements reflect a company with strong financial discipline, resilient growth drivers, and a defensible market position, making it an attractive investment opportunity in the evolving energy landscape where digital capabilities and international integration are becoming increasingly vital. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on West Pharmaceutical Services, Inc. (WST). Schlumberger Limited (SLB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held SLB at the end of the first quarter which was 80 in the previous quarter. While we acknowledge the potential of SLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Newmont Corporation (NEM): A Bull Case Theory
We came across a bullish thesis on Newmont Corporation (NEM) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on NEM. Newmont Corporation (NEM)'s share was trading at $52.72 as of 30th May. NEM's trailing and forward P/E were 12.01 and 8.41 respectively according to Yahoo Finance. A global gold powerhouse, this miner delivered 7 million ounces of gold production at an average realized price of $2,408/oz in 2024, while maintaining industry-leading cost discipline with all-in costs of just $1,126/oz. This translated into an impressive gross margin of over $1,280/oz before overhead, showcasing operational efficiency and pricing power. Beyond gold, the company's multi-metal profile added significant value, with co-product contributions of 338 million pounds of copper, 33 million ounces of silver, and 569 million pounds of zinc. These volumes not only diversified earnings but also helped offset gold production costs, making operations more resilient across commodity cycles. With assets spanning 15 countries and a strong footprint in stable jurisdictions, the company benefitted from surging demand in key markets—most notably Japan and South Korea, where sales jumped over 275% and 100% respectively. Its dominance is underpinned by ownership of the largest share of Tier 1 gold mines globally, defined as assets producing over 500,000 ounces annually with 10+ year mine lives and cost structures in the lower half of the global cost curve. This tiered structure ensures long-term cash flow durability and strategic flexibility. The company also holds a commanding 134.1 million ounces of proven gold reserves, supported by over a century of geological data, reinforcing its exploration and development advantage. Its leadership in environmental and sustainability efforts is notable, including a 2030 target to reduce emissions by 32% and issuing the industry's first $1 billion sustainability-linked bond. Together, these factors build a compelling case for long-term value and stability. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Harley Davidson, Inc. (HOG). Newmont Corporation (NEM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held NEM at the end of the first quarter which was 69 in the previous quarter. While we acknowledge the potential of NEM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
2 days ago
- Business
- Yahoo
Prologis, Inc. (PLD): A Bull Case Theory
We came across a bullish thesis on Prologis, Inc. (PLD) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on PLD. Prologis, Inc. (PLD)'s share was trading at $108.60 as of 30th May. PLD's trailing and forward P/E were 27.08 and 47.17 respectively according to Yahoo Finance. A worker operating heavy machinery on a large construction site, at the center of a bustling city skyline. Prologis is a dominant force in global logistics real estate, managing 1.3 billion square feet across 20 countries. Its strategic emphasis on Last Touch® facilities near major urban centers ensures superior delivery speed and consistently high tenant demand, reflected in its 96%+ occupancy and strong lease mark-to-market gains of approximately 30%. This positions the company for steady, organic growth with a structurally embedded advantage. Adding to its defensible moat, Prologis controls a vast and irreplaceable land pipeline capable of supporting $41.5 billion in future logistics development, including $0.9 billion earmarked for data center conversions. In a landscape where urban zoning restrictions create meaningful entry barriers, this land bank offers long-term development flexibility and competitive protection. Operationally, the company benefits from immense scale while maintaining a lean cost structure. Its general and administrative expense ratio continues to decline as its asset base expands, allowing it to boost margins by leveraging shared infrastructure and partnerships. A critical driver of Prologis's financial engine is its capital flywheel—$56.3 billion in co-investment ventures where it earns recurring fees and performance-based incentives with only modest equity exposure of 15–55%, significantly reducing risk while enhancing returns. Most of these ventures are either long-duration or open-ended, ensuring lasting capital support. Further reinforcing tenant relationships, its Prologis Essentials platform integrates sustainability solutions like LED lighting and solar installations (626 MW deployed), now embedded in all eligible new developments. This ecosystem of ESG-driven value-add services enhances tenant retention and underscores Prologis's comprehensive, multi-pronged strategy for long-term, capital-efficient growth. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Harley Davidson, Inc. (HOG). Prologis, Inc. (PLD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held PLD at the end of the first quarter which was 55 in the previous quarter. While we acknowledge the potential of PLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Nucor Corporation (NUE): A Bull Case Theory
We came across a bullish thesis on Nucor Corporation (NUE) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on NUE. Nucor Corporation (NUE)'s share was trading at $108.94 as of 29th May. NUE's trailing and forward P/E were 19.20 and 14.14 respectively according to Yahoo Finance. A steel rod, bent and contoured to the exact specifications of the company. Nucor stands out as a vertically integrated steel producer operating through three synergistic segments—steel mills, steel products, and raw materials—underpinned by its control of critical inputs, including 3.5 million metric tons of direct reduced iron (DRI) and 18 million tons of recycled scrap annually. This integration enables tight cost control and reliable supply chains. The company's strategic focus on high-value products like insulated panels, overhead doors, and custom racking systems has driven meaningful margin expansion, further bolstered by premium-branded offerings such as ECONIQ™ and AEOS™, which meet growing demand in low-carbon and seismic-resistant construction markets. Nucor's operational flexibility is a core strength, with nearly all production relying on electric arc furnaces (EAFs) that offer rapid scalability and deliver 60–70% lower carbon emissions compared to traditional blast furnaces. Its micro mill strategy and regional footprint enhance both cost efficiency and environmental performance. The company's unique decentralized culture, with just 200 employees at headquarters overseeing over 32,000 teammates, empowers plant-level decision-making and incentivizes performance, driving innovation and responsiveness. This structure supports its aggressive capex-driven growth strategy—$11.8 billion deployed over the past three years, with 63% allocated to capacity expansion and 37% to acquisitions. These investments target fast-growing sectors such as data centers, renewable energy, and automated warehousing, positioning Nucor for long-term structural advantage. The company's integrated model, flexible operations, and disciplined capital deployment collectively support a compelling narrative of margin growth, sustainable production leadership, and strategic evolution in key demand verticals. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of their of Sanofi (SNY). Since our coverage, the stock is up 4.7%. Nucor Corporation (NUE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held NUE at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
