At its current level, Meta Platforms Inc. (META, Financial) looks too cheap. Even though its market cap is now worth $1.31 trillion, its powerful free cash flow could push the stock higher.This analysis will show how why and set a price target based on Meta Platforms' free cash flow margin and analysts' revenue estimates. This method uses a FCF yield metric to value the stock. However, the company is attracting value investors due to its strong free cash flow generation.Meta's basic growth is solidThe socia ...

AT&T Inc. (T, Financial) has shown notable resilience during the recent market turmoil, with the stock steadily climbing and almost matching the S&P 500's performance. After years of underperformance, its shares are finally on an upward trajectory, highlighted by a 5.20% surge following the announcement of second-quarter results. Although revenue fell short of expectations and adjusted earnings per share barely met analysts' forecasts, investors rewarded AT&T for its improving margins and free cash flow tra ...

Exxon Mobil Corp. (XOM, Financial) is an energy sector powerhouse that works with immense resources and strategic investments to propel its growth for the long term. In an ever-changing market landscape, the stock brings stability and resilience to any type of investor. A decrease in oil prices following the conflict in Ukraine meant that revenue decreased in 2023 compared to 2022, but Exxon Mobil has continued to maintain its strong financial position as well as open up new growth opportunities. A strong b ...

Nvidia Corp. (NVDA, Financial) has been leading the headlines after its first-quarter 2025 results surpassed the Street's expectations. The performance includes a massive 262% year-over-year revenue boost and 18% sequential growth. With that, the company exceeded its guidance by $1.50 billion. This is alongside a 462% jump in non-GAAP earnings per share. These numbers indicate Nvidia's lead in artificial intelligence-driven markets like data centers, reflecting 87% of its top line. There has been a surge in ...

As the clear frontrunner in the customer relationship management software industry, Salesforce Inc. (CRM, Financial) commands a dominant 21.70% market share. This year, the company's stock has seen a mix of investor sentiment, leading to relatively stagnant movement. However, after the release of its first-quarter results, shares dropped by 20%. Salesforce reported total revenue of $9.13 billion, an 11% year-over-year increase, but it fell short of consensus estimates by $13.40 million. Despite this setback ...

Warren Buffett (Trades, Portfolio)'s famous advice to "be fearful when others are greedy, and be greedy when others are fearful" is a very interesting approach to buying good companies at good prices. Finding a good company that has a good price and is going through a good time with clear prospects is often quite difficult, but for long-term investors who have the stomach for the good old buy and hold, buying good companies at good prices but that are going through a delicate time or with slightly cloudy pr ...

As the qualified default investment alternative (QDIA) in most 401(k) plans, target-date funds (TDFs) have become a critical “one-stop-shop” retirement savings and investment tool for participants during the long accumulation stage of their working lives. As participants move from accumulation to decumulation, their investment needs become less homogeneous with their unique personal circumstances. While the defined contribution (DC) industry has largely solved the accumulation stage of the life-cycle journe ...

ASML Holding NV (ASML, Financial) is perhaps the most critical company due to the technology it possesses in the semiconductor supply chain. Indeed, the company's lithography equipment is essential for producing the high-performance chips necessary for artificial intelligence applications.The Dutch company is headquartered and listed in the Netherlands and its American depositary receipt allows access to the U.S. investors. The stock has even been allocated a 98 out of 100 GF Score, which is fully justifiab ...

Core Viewpoint - Global markets are experiencing significant volatility due to recession fears, highlighted by disappointing nonfarm payroll data and a rising unemployment rate, which triggered the Sahm Rule indicating a potential recession [1]. Market Dynamics - Expectations for a 50 basis point rate cut in September have surged, leading to a significant appreciation of the Japanese yen against the U.S. dollar, which has caused fixed-income traders to close carry trades due to increased currency risk [2]. Company Performance - CME Group Inc. (CME) has stood out in the S&P 500, recording gains while most companies faced drastic drops, showcasing its resilience amid market volatility [3]. Revenue Sources - CME generates revenue primarily from transaction fees and clearing and settlement fees, with market data sales being a minor source [4]. Cost Structure - Non-compensation expenses are largely driven by technology, which accounted for 12.10% of total costs in Q2, while the company maintains high operating leverage with an EBIT of 65.30% [5]. Market Conditions Impact - Increased trading volume in derivative markets benefits CME, as high volatility leads to more contracts being negotiated, and its product exposure is well-diversified across different contracts [5]. Investment Opportunity - Given the potential for a global recession and a tight U.S. election, adding CME to an equity portfolio offers diversification benefits, especially since it has a low beta of 0.34 and lower volatility compared to broader market indices [6]. Dividend Growth - CME has consistently paid quarterly dividends and special dividends, with a compound annual growth rate of 8.90% for regular dividends since 2013, although special dividends are more volatile [8][9]. Dividend Yield - The current dividend yield is attractive, with a potential yield of 4.77% based on the last regular dividend and special dividend, which could increase to 5.15% when factoring in growth rates [9]. Valuation - CME is considered fairly valued, with its stock price approximately $20 below the intrinsic value of $226.86, indicating a solid investment opportunity [11]. Key Multiples - CME has a high valuation rating of 7 out of 10, with a PE ratio of 21.30, which is below its 10-year median, making it appealing compared to historical metrics [13]. Conclusion - In times of rising uncertainty, CME is a strong candidate for reducing beta exposure in equity portfolios, supported by its monopolistic characteristics and consistent dividend growth [14][15].

Core Viewpoint - KLA Corp. is the leading supplier of process control and yield management solutions in the semiconductor industry, experiencing significant growth driven by EUV technology adoption and infrastructure investments in China, although future growth may face challenges [2][3]. Company Overview - KLA's Semiconductor Process Control segment generates over 90% of total revenue, with a diverse portfolio of inspection, metrology, and software products [3]. - In 2023, KLA reported revenues of $10.5 billion, up from $9.2 billion in 2022, with a gross profit of $6.46 billion compared to $5.79 billion the previous year [3][4]. Financial Performance - The Semiconductor Process Control segment's revenue increased to $9.32 billion in 2023 from $7.92 billion in 2022, with a gross profit of $5.96 billion [3]. - The wafer inspection revenue was $4.34 billion, showing a 41% increase from $4.01 billion in 2022, while patterning revenue rose to $2.79 billion, a 36% increase [4]. Competitive Position - KLA has consistently outperformed competitors like Applied Materials and Lam Research, with a 13% compound annual growth rate in process control systems revenue over the past decade [5][6]. - KLA's market share in process control has grown by over 500 basis points since 2018, reaching more than 56% in 2023 [6]. Growth Drivers - Key growth drivers include the adoption of extreme ultraviolet lithography, increased design starts, and strong growth in China until 2023 [6][8]. - The capital expenditure intensity for process control in logic is noted to be in the mid-teens percentage range, indicating robust demand for KLA's products [6]. Margin Profile - KLA enjoys higher gross margins compared to competitors, attributed to its strong market position, although its operating and net margins are less impressive due to higher selling, general, and administrative expenses [7][8]. Long-term Risks - Potential risks include leading-edge customers performing inspection in-house, competition from smaller companies in niche markets, and technological advancements in inspection and metrology [10][11]. - Geopolitical factors, particularly U.S. export restrictions, pose challenges to KLA's business in China, potentially impacting revenue from that market [12]. Conclusion - KLA exhibits characteristics of a strong business with significant shareholder returns over the past five years, but its current valuation appears high relative to industry standards and historical performance [13].