The author presents five bullish value-oriented stock picks—MU, AMD, ALL, INCY, and Barrick—with individual rationales and a preferred 3-year horizon.
MU — LONG The author argues Micron has fantastic revenue, margins, and growth, with first-in-class HBM dominance and NAND. He believes a forward PEG of 0.20x versus the sector median of 1.66x makes the stock compelling, even while trying to diversify away from AI stocks. His general holding preference is at least 3 years; no specific risk is stated.
Fantastic revenue, margins, and growth. First in class HBM dominance and NAND. I know its trading near 52 week highs, but I think forward PEG of 0.20x compared to sector median of 1.66x makes it compelling, even as I am trying to diversify away from AI stocks.
AMD — LONG The author believes CEO Lisa Su can roll out HPC accelerators to compete with Nvidia's Vera Rubin, and the new Instincts and EPYC CPUs are impressive. He acknowledges AMD trades at a premium but sees a forward PEG roughly 25% below the sector overall. His general holding preference is at least 3 years; the stated risk is the premium valuation.
I think she's got a shot of rolling out HPC accelerators to give Nvidia's Vera Rubin some competition. The new Instincts and EPYC CPUs are impressive as well. I know its trades at a premium, but its forward PEG is roughly a 25% discount to the sector overall.
ALL — LONG The author says property and casualty insurance is resilient and inelastic, and Allstate has near 200% YoY growth, smart AI implementation, and an attractive defensive valuation. These factors support a long position. His general holding preference is at least 3 years; no specific risk is stated.
Property and casualty insurance is resilient and inelastic. Near 200% YOY growth, implementing AI smartly, attractive valuation, defensive play.
INCY — LONG The author already owns Incyte and is considering buying more because the valuation is too good. The company is diversifying beyond Jakafi, has insider buybacks, low debt, sector-outperforming growth, and excellent margins. His general holding preference is at least 3 years; no specific risk is stated.
I already own this, but I'm considering buying more because the valuation is just too good. It's diversifying beyond its main product Jakafi, has lots of insider buybacks, low debt, outperforms sector growth, and excellent margins.
GOLD — LONG The author is bullish on Barrick because it is one of the largest and most diversified mining companies, and he expects other metals, especially copper, to continue rising. Record cash flows have improved the balance sheet, and green energy transition, EVs, and global instability should increase demand for precious metals. His general holding preference is at least 3 years; he notes skepticism about gold's exceptional rise as a risk.
Although I'm a bit skeptical because of gold's exceptional rise, Barrick is one of the largest and most diversified mining companies and I think other metals still have room to run (I'm especially bullish on copper). Record cash flows have improved their balance sheet, and I think the green energy transition, EVs, and increased interest in precious metals due to global instability will help.