Consumer staples stocks have surged this year, pushing valuations higher—but a handful of names still trade at reasonable multiples with solid earnings growth ahead. ...

Domino's Pizza (DPZ) stock is at a one-year low ahead of full-year earnings due out next week. One play is to sell short out-of-the-money (OTM) put options with a one-month expiry. It has a 2% yield for a 5% lower strike price. DPZ is trading at $374.48 in midday trading on Tuesday, Feb. 17, well below its recent peak of $438.32 on Dec. 17, 2025. It seems the market is forecasting devastating news before the market opens on Feb. 23. But, is that realistic? More News from Barchart DPZ stock - last 12 mon ...

Core Viewpoint - Coca-Cola Europacific Partners PLC (CCEP) is a significant player in the non-alcoholic beverage industry, with a diverse product range and a strong market presence, serving approximately 600 million consumers [1] Financial Performance - In the third quarter ending September 26, 2025, CCEP reported total revenue of €5.41 billion, reflecting a 0.4% increase in volume and a 2.7% rise in revenue per unit case [3] - For the first half of 2025, CCEP achieved revenue of €10.3 billion, a 4.5% increase year-over-year, with operating profit rising by 19.4% to €1.36 billion and diluted earnings per share increasing by 15% to €1.99 [5] Market Position and Analyst Outlook - CCEP's current valuation indicates fundamental strength, but analysts have set fluctuating price targets, with UBS analyst Robert Krankowski suggesting a cautious target of $68, reflecting a less attractive near-term risk/reward profile [4][6] - The consensus price target for CCEP's stock has varied, with an average of $101 last month, $107.5 last quarter, and $104.33 a year ago, indicating adjustments in analysts' expectations due to market conditions [2]

Core Viewpoint - Amazon's recent stock performance has been underwhelming, with a 8.2% decline over the past year, contrasting with the S&P 500's 16.5% gain, raising questions about its long-term investment potential [2] Group 1: Business Segments and Performance - Amazon operates through three segments: North America, international, and Amazon Web Services (AWS), with the first two contributing 82% of total sales, amounting to $716.9 billion in 2025 [4] - AWS remains the largest profit generator for Amazon, achieving a 14.5% increase in operating income to $45.6 billion [5] - The North America and international segments generated $34.7 billion in operating income, representing 43% of the total [4] Group 2: Competitive Advantage and Market Position - AWS holds a leading market share of 30% as of mid-2025, outperforming Microsoft's Azure at 20% and Alphabet's Google Cloud at 13%, benefiting from the growing demand for data and resources for data centers [8] - The emergence of generative artificial intelligence (AI) is expected to further accelerate AWS's growth [8] Group 3: Financial Outlook and Valuation - Following the fourth-quarter earnings release, Amazon's stock price declined due to management's announcement of a significant increase in capital expenditures to $200 billion for the year, up from $131.8 billion in 2025 [9] - Despite the increased spending, management anticipates a substantial return on capital, which is expected to benefit shareholders [10] - Amazon's current price-to-earnings (P/E) ratio is 28, down from 40 a year ago, making its valuation more attractive compared to the S&P 500's P/E ratio of 30 [11] Group 4: Investment Considerations - The question remains whether investing in Amazon will yield better returns than an index fund replicating the S&P 500, with the potential for greater gains based on Amazon's valuation and growth prospects [12]

Core Viewpoint - The article emphasizes the importance of building a balanced investment portfolio that includes both technology stocks and defensive options, highlighting the need for intrinsic value and strong catalysts in investment decisions [1] Group 1: Investment Strategy - The company focuses on diversifying portfolios to ensure clients benefit from technology stock growth while maintaining investments in defensive sectors [1] - There is a strong preference for established technology companies and those in consumer staples and discretionary goods, prioritizing company value over market circumstances [1] Group 2: Experience and Expertise - The company has been actively managing third-party portfolios for seven years, with a focus on macroeconomic trends, stock valuation, and the interplay between politics and markets [1] - A Master's degree in Economics and experience as a consultant for public and private organizations contribute to the company's analytical capabilities, particularly in financial and economic aspects [1] Group 3: Challenges and Insights - The company acknowledges the difficulty of the investment principle "buying low and selling high," particularly during market crises such as those in 2020 and 2022 [1] - The experience with public tenders has provided insights into the pressures of market fluctuations, akin to the stress of stock market declines [1] Group 4: Social Responsibility - The company promotes financial inclusion programs for women in finance, recognizing the challenges and the need for further contributions in this area [1] - There is a commitment to expanding opportunities for women within the financial sector, reflecting a broader social responsibility [1]

Core Viewpoint - The article introduces Meridian Research as a new contributing analyst to Seeking Alpha, emphasizing the importance of sharing investment ideas and insights within the investment community [1]. Group 1: Analyst Background - The analyst has over 10 years of experience in public markets and holds an MBA, leading a boutique research and corporate finance firm focused on structuring deals in the Argentine market [2]. - The firm specializes in tailored equity research and valuation analysis for small and medium-sized businesses (SMBs) [2]. - The analyst is particularly interested in overlooked stocks where the narrative diverges from fundamentals, identifying these as potential long-term investment opportunities [2]. Group 2: Investment Approach - The investment approach begins with understanding the driving factors behind a company's economics, including competitive positioning, unit economics, margins, reinvestment needs, and balance sheet health [2]. - Valuation is viewed as a tool to comprehend what the current price implies and what conditions must be met for the investment to be viable, rather than a single "fair value" number [2]. - The analyst values constructive feedback and alternative views to refine investment theses and identify potential blind spots [2].

Core Viewpoint - Li Auto Inc. has shown a significant stock performance with an 18.4% return over the past month, contrasting with the S&P 500's -0.3% change, indicating potential investor interest and market dynamics affecting the stock's future performance [1] Earnings Estimates - Li Auto is expected to report earnings of $0.05 per share for the current quarter, reflecting a year-over-year decline of 90.4% [4] - The consensus earnings estimate for the current fiscal year stands at $0.14, indicating a decrease of 89.9% from the previous year, with no changes in estimates over the last 30 days [4] - For the next fiscal year, the consensus earnings estimate is $0.51, suggesting a substantial increase of 267.1% compared to the prior year, with estimates remaining unchanged [5] Revenue Projections - The consensus sales estimate for the current quarter is $4.24 billion, representing a year-over-year decline of 30.2% [10] - For the current fiscal year, the revenue estimates are $16.2 billion, indicating a decrease of 19.4%, while the next fiscal year's estimate of $19.57 billion reflects an increase of 20.8% [10] Recent Performance and Surprises - In the last reported quarter, Li Auto generated revenues of $3.84 billion, down 37.1% year-over-year, with an EPS of -$0.09 compared to $0.52 a year ago [11] - The reported revenues exceeded the Zacks Consensus Estimate of $3.76 billion by 2.32%, while the EPS fell short by 325% [11] - Over the last four quarters, Li Auto has surpassed consensus EPS estimates three times and revenue estimates twice [12] Valuation Metrics - Li Auto's valuation is assessed using various multiples, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to determine if the stock is fairly valued [13][14] - The Zacks Value Style Score for Li Auto is graded as C, indicating that the stock is trading at par with its peers [16] Conclusion - The current analysis suggests that while there is market buzz around Li Auto, the Zacks Rank of 4 indicates potential underperformance relative to the broader market in the near term [17]

Core Viewpoint - Freshworks' stock experienced a significant decline of 14.8% following the release of its fourth-quarter results, despite beating sales and earnings expectations, primarily due to weaker forward guidance [1][2][5]. Financial Performance - Freshworks reported non-GAAP earnings per share of $0.14 on revenue of $222.7 million for Q4, exceeding Wall Street's expectations by $0.03 per share and sales by approximately $3.9 million [2]. - Year-over-year revenue growth for Q4 was 14.4%, with per-share earnings consistent with the previous year [2]. Forward Guidance - For the current quarter, Freshworks anticipates revenue between $222 million and $225 million, indicating a year-over-year growth of approximately 13.9% at the midpoint [3]. - For the full year, management projects sales between $952 million and $960 million, reflecting an annual growth of around 14% at the midpoint [4]. - Adjusted earnings per share for the year are expected to be between $0.55 and $0.57, a decline from $0.66 per share last year [4]. Market Sentiment - Despite raising its full-year sales target from previous guidance, the anticipated decline in adjusted earnings per share has led to lower valuation multiples being assigned to Freshworks' stock [5]. - The company's forward guidance has not been strong enough to generate positive investor sentiment, contributing to the stock's valuation contraction [5].

Core Viewpoint - The comparison between Korea Electric Power (KEP) and WEC Energy Group (WEC) indicates that KEP presents a better value opportunity for investors at this time due to its stronger earnings outlook and favorable valuation metrics [1][3]. Valuation Metrics - KEP has a forward P/E ratio of 3.37, significantly lower than WEC's forward P/E of 20.16, suggesting KEP is undervalued relative to WEC [5]. - KEP's PEG ratio is 0.06, while WEC's PEG ratio is 2.71, indicating that KEP's expected earnings growth is more favorable compared to its current price [5]. - KEP's P/B ratio stands at 0.8, compared to WEC's P/B of 2.62, further highlighting KEP's relative undervaluation [6]. Zacks Rank and Style Scores - KEP holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while WEC has a Zacks Rank of 3 (Hold) [3]. - KEP's Value grade is A, contrasting with WEC's Value grade of D, suggesting that KEP is more appealing to value investors [6].

Core Viewpoint - SoFi Technologies' stock has faced significant selling pressure despite strong quarterly performance, dropping approximately 22% over the past month and trading nearly 35% below its 52-week high [1][2]. Group 1: Stock Performance and Market Sentiment - The recent decline in SoFi stock is largely attributed to market sentiment, with valuation concerns arising after a steep rally in early 2025, leading some investors to lock in gains [2]. - Concerns regarding potential dilution from recent capital raises and macroeconomic uncertainty have also negatively impacted the stock [2]. Group 2: Long-term Investment Perspective - For long-term investors, the recent correction in SoFi stock may present a valuable opportunity, as the company's core businesses continue to perform well and it is positioned for solid growth into 2026 [3]. Group 3: Capital Raises and Shareholder Value - Investors are worried that SoFi's recent capital raises could dilute shareholder value; however, these concerns may be overstated [5]. - SoFi reported that its tangible book value (TBV) increased to $8.9 billion by Q4 2025 from $3.3 billion at the end of Q1 2023, with TBV per share rising to $7.01 from $3.49 during the same period [5]. Group 4: Financial Strategy and Impact - The capital raised was utilized to reduce funding costs, with a significant portion allocated to pay down expensive debt, which lowered interest costs immediately [6]. - The remaining funds were invested in income-generating assets, resulting in a cheaper funding structure by the end of 2025, as SoFi exited high-cost funding related to personal and student loans [6]. - This financial shift is expected to enhance net interest income, potentially offsetting dilution from new share issuance and increasing earnings per share [7].