r/valueinvesting
My value picks for the rest of the year
Author shares a value model based on growth, margins, and EV multiple, holding MU, NVDA, GOOGL, LLY, MSFT, META with 65.8% YTD return.
- Custom value model (Value Score > 2.0) identifies undervalued stocks with strong growth and margins.
- Portfolio has achieved a 65.8% YTD return, demonstrating the model's effectiveness.
- Model signals to keep holding despite recent market pullbacks.
I've posted numerous times that I compare the projected revenue growth and trailing operating margin to the enterprise multiple to calculate what I call a Value Score. The median Value Score for all stocks is about 1.0. If a stock has a Value Score above 2.0, I consider it for a buy.
My current portfolio, and what has give me a 65.8% YTD return, is MU, NVDA, GOOGL, LLY, MSFT and META. Despite Friday's pullback, my model says keep holding.
If you are a bot and want to slam me, please show me your portfolio.
Value
Looks inside:
Micron
Guy on a value forum showing all overpriced shit that everyone is talking about LOL
NEVER FAILS
Value
Looks inside:
P/E ratio
Forward P/E on memory stocks. I remember my first time.
I work in the sector. They are overselling inventory they don’t have for the next coming 10 years. Competition will get in quick and drive prices downward. The whole fact that the PE is so low is due to the cyclical nature. Currently they are also able to ask 5x-10x the normal prices, but this won’t last forever obviously
I was under the assumption the HMB4 was incredibly hard to produce
It is incredibly difficult to produce, there are only 3 companies currently making it, and the barrier for entry is extremely high.
Dude you’ve got to do way better with your comebacks. I am severely unimpressed with this.
Nvidia is the best pick right now.
Buddy in all seriousness, I like that you put a price zone where each stock becomes value. But, it’s all hypothetical. Why not do some research on picks that are actually value buys right now?
I am holding a lot of MSFT considering using it for Margin. What are key considerations when doing Margin trade?
Devils advocate: you can see what price targets were for MU at previous cycle peaks and they always say buy. The last cycle peak UBS was the only one who was suggesting to sell, and 2 months later (before most of the crash was in front) they changed back to a ‘buy’.
Not saying the thesis is wrong, but price targets will not be any help with calling the peak.
The old lady at the casino asked me if I saw her slots jackpot last night also.
That is very peculiar scoring method. I'm not sure what adding revenue growth to operating margin tells you about valuation?
Nevertheless, for somebody looking out 1-3 years, I suspect your portfolio will continue to do well. Congrats on your YTD performance.
it only either goes up by 10% or down by 10%.
I don’t expect price decreases in the industry until 2027, you could hold until then. The risk is that the first quarter any of these companies miss earnings or underperform expectations, they will all crash tremendously.
Finally, someone with a brain.
Man, hanging out in /r/MU_Stock is like a completely different world of irrational optimism.
I'm not a bot and think your picks are trash too