u/investorinvestor

ZTS trades at 13x P/E while delivering 9% EPS growth, and management increased debt by 50% to fund buybacks. The combination of low valuation, positive EPS growth, and aggressive management buybacks (signaling intrinsic value > current price) creates a contrarian value opportunity. Buy ZTS as a value play on temporary pet sector headwinds, with management providing a strong signal through leveraged buybacks. Continued contraction in the pet segment; macro slowdown in animal health spending; rising debt service costs if rates stay high.

TTD reported only 3% Q2 YoY revenue growth and guided Q3 negative, causing a >20% share-price drop; CEO still cites strong JBP growth, CTV/audio strength, and fast international growth. If TTD is in a temporary ad-cycle slowdown rather than structural decline, the market has overreacted — similar to Meta’s 2022 setup before its large recovery. A speculative long/watch candidate for investors who believe the selloff prices in too much pessimism, with the catalyst being a return to revenue acceleration. Amazon’s ad platform and new DSPs are eating share; TTD’s high fees and lack of an obvious moat make it vulnerable; Q3 negative growth could mark a real structural decline.

Author compares GOOG’s ~25x PE and ~20% EPS growth to Buffett’s AAPL buy at 16x PE, which led to 4x EPS growth. If GOOG sustains ~20% EPS growth, its earnings yield compounds rapidly, creating a long-term compounding opportunity. GOOG could be an “AAPL-like” compounder, justifying a long-term buy at current valuation. Growth may decelerate, AI capex pressures margins, or regulatory/antitrust actions could hurt the core business.

LULU trades at ~9x PE while international markets grow double-digits. Market is pricing US weakness as permanent, ignoring 30% high-growth revenue mix and possible CEO catalyst. Valuation offers asymmetric upside if brand concerns ease or intl momentum continues. US brand erosion accelerates, new CEO fails, Alo/Vuori keep taking share.

Management plans 12% annual share count reduction and drastic cost cuts; normalized EPS could grow 50%. If EPS grows and sentiment improves, PE could double from ~8x to 16x, creating a 3x price move; options now cheap. Long PYPL (stock or cheap calls) to capture potential turnaround re-rating. Turnaround fails, revenue declines, competition (e.g., Block, Apple Pay), macro headwinds, or buyback not executed.