Latest news with #ReinforcedValue
Forbes
16-04-2025
- Business
- Forbes
Google Stock: A Compelling Buy Under $160
Alphabet logo displayed on a laptop screen and Google website displayed on a phone screen are seen ... More in this illustration photo taken in Krakow, Poland on March 12, 2025. (Photo by Jakub Porzycki/NurPhoto via Getty Images) Question: Why pay 34x earnings for Amazon stock when you can buy Google stock for just 19x? That's a tough sell—especially when you consider three straightforward reasons: However, if you seek upside with less volatility than a single stock, consider the High-Quality portfolio, which has outperformed the S&P 500 and achieved returns greater than 91% since inception. While Google may not fit the mold of a traditional 'safe haven,' its track record during market disruptions is worth considering. The stock declined 45% during the 2022 inflation shock and 31% amid the Covid-19 downturn, showing that it is still prone to volatility. However, the stock has already seen a significant correction, dropping from over $205 to under $160 now. This decline implies that much of the downside could already be factored in. With widespread belief that Artificial Intelligence represents a transformative, long-term growth theme, Google may offer a compelling case at its current valuation. Although both Amazon and Google provide AI infrastructure, Google's real strength lies in its groundbreaking AI research and the seamless integration of that technology into products like Search and YouTube. This unique combination of innovation and massive reach positions Google favorably for continued AI-led growth. Naturally, investing in Google isn't risk-free. There's always a chance earnings might miss estimates or that growth could decelerate. Additionally, unpredictable events could adversely affect the stock. Investors should be prepared for potential volatility—including the possibility of a 30% decline from current levels. That said, for long-term investors with a 3-to-5-year horizon and a 'buy-and-hold' strategy, Google's current valuation might present a worthwhile entry point. For those with lower risk tolerance, a hedged approach within a diversified portfolio, such as the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark, might offer a smoother ride while still capturing potential upside. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
09-04-2025
- Business
- Forbes
DKNG Stock At $32: Buy, Sell, Or Hold?
BOSTON, MA - MARCH 20: A view of the DraftKings Sportsbook logo on the boards during the Hockey East ... More semifinal game between the Boston University Terriers and the UConn Huskies on March 20, 2025, at TD Garden in Boston, MA. (Photo by Erica Denhoff/Icon Sportswire via Getty Images) DraftKings, a top digital sports entertainment and gaming company, has seen its stock decline by 14% over the past month, driven by a broader market downturn linked to tariffs imposed by Trump on key trading partners and growing tensions from the U.S.-China trade war. Our take on the market crash risk right now offers more insights into the tariff situation and its effects on the broader economy. We think DraftKings stock, currently trading at $32, represents a solid buying opportunity. Based on our evaluation, the stock's fair valuation reflects only minor concerns, especially considering its strong operational results and solid financial position. We came to this conclusion by comparing DKNG's current market valuation with its recent and historical operating performance and financial standing. The assessment below covers key metrics such as Growth, Profitability, Financial Stability, and Downturn Resilience, all of which point to the company's inherent strength. When comparing valuation in terms of price per dollar of revenue or profit, DKNG stock is currently valued similarly to the overall market. DraftKings' Revenues have experienced strong growth over the past few years. DraftKings' profit margins remain significantly lower than most other companies in the Trefis universe. DraftKings has a healthy balance sheet. DKNG stock has performed slightly better than the S&P 500 during recent downturns. As investors hope for a soft landing in the U.S. economy, it's worth asking—how severe could the impact be if another recession hits? Our dashboard How Low Can Stocks Go During A Market Crash explores how major stocks have performed during and after the last six market crashes. To summarize, DraftKings' performance across various indicators is as follows: Given DraftKings' solid performance on these fronts—which we believe is not fully captured in its current fair valuation—we see the stock as a compelling buying opportunity. In fact, analysts' average price target of $57 for DKNG suggests a strong 75% upside from current levels. While DKNG stock may see higher levels, the Trefis Reinforced Value (RV) Portfolio, has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics. DKNG Return Compared With Trefis Reinforced Portfolio Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
