u/Potato_Masher_69420 5.0 3 ideas

Adobe is trading at a P/FCF of ~9.0 compared to a 10-year average of ~25.4, representing a ~65% discount, and the stock is down 30%. The market is heavily discounting SaaS/software due to speculative fears about AI (like Claude) disrupting their moats, creating an oversold condition where fundamentals haven't actually deteriorated yet. Buying the dip on a historically strong free cash flow generator at a decade-low valuation multiple. AI tools genuinely erode Adobe's pricing power and subscriber base, making the historical multiple irrelevant.

Accenture is trading at a P/FCF of ~8.94, roughly 45-55% below its historical 20-30x range, and the stock is down 30%. The severe multiple compression offers a rare entry point into a premium IT consulting firm that typically commands a high growth premium. Accumulating shares at a steep discount to historical cash flow multiples. Prolonged enterprise IT spending slowdowns or structural shifts in consulting demand due to AI.

LTH has demonstrated massive growth in net income and profit margins (3% to 12%) from 2023-2025, alongside a $500M buyback program and 15% insider ownership. Despite strong growth and high-end market positioning (30% of clubs have waitlists), LTH trades at a P/E of 16.76, significantly lower than peer PLNT's P/E of 28, creating a clear valuation gap. Go long on LTH for multiple expansion and continued fundamental growth in the K-shaped economy. A severe macroeconomic downturn could impact high-end consumer spending; earnings drag from new location openings in late 2026.