Today, a large volume of Advanced Micro Devices (AMD) call options are trading after it announced a major deal with OpenAI on Monday, Oct. 6. AMD rose over 28.5% in the prior two days and is up 6% again today. To say the least, investors are bullish on its upside. But is all the hype overdone? Is AMD stock close to its price target? AMD is at $224.13 in midday trading, up +36.1% from $164.67, where it closed on Friday, Oct. 3. More News from Barchart AMD stock - last 3 months - Barchart - Oct. 8, 2025 I ...

Chewy, Inc. (CHWY) stock has moved up from a recent trough, but analysts have significantly higher price targets. Its free cash flow (FCF) and FCF margins are expected to remain strong. People love spending money on their pets. As a result, shorting OTM puts and buying ITM long-expiry calls work here. CHWY is currently at $37.00, up from a recent low of $35.11 on September 10. But, it's still off from a peak of $42.33 on Sept. 5. My analysis is that CHWY could be worth +16% more at almost $43, based on its ...

Core Insights - The article emphasizes the importance of Return on Invested Capital (ROIC) and Free Cash Flow (FCF) in identifying sustainable growth investments, particularly through ETFs like the VictoryShares Free Cash Flow Growth ETF (GFLW) [1][2] Group 1: Understanding ROIC and FCF - ROIC measures a company's efficiency in generating profits from invested capital, while FCF indicates the cash available after covering operating expenses and capital expenditures [2] - High ROIC companies can grow sustainably without relying on external capital, unlike those that overextend their ROIC and depend on stock issuance or debt [4] Group 2: GFLW ETF Strategy - GFLW aims to track the Victory Free Cash Flow Growth Index, which identifies companies that can grow profitably by reinvesting capital at high rates of return [5] - The selection process begins with a universe of 1,000 companies, excluding financials and real estate, and screens for positive FCF growth over five years [6] - Companies are ranked based on FCF relative to ROIC, narrowing the selection to the top 150 businesses with sustainable growth potential [7] Group 3: Final Selection and Portfolio Management - The methodology further evaluates future growth prospects to select the top 100 companies for durable growth, with holdings weighted based on FCF size and momentum [8] - By linking ROIC and FCF, the Index provides targeted exposure to companies that generate strong cash flows and grow shareholder value over the long term [9]

Palantir, Inc. (PLTR) stock could still be almost 20% undervalued based on analysts' higher revenue forecasts, using a 48% FCF margin estimate and a 0.52% FCF yield (i.e., a 192x multiple). One way to play PLTR is to short out-of-the-money puts. PLTR stock is trading at $181.07 in midday trading on Tuesday, Sept. 23. This represents an increase from its recent low of $153.11 on Sept. 5. More News from Barchart PLTR - last 3 months - Barchart - Sept. 23, 2025 But it could be worth almost $217 per share, ...

Nvidia, Inc. (NVDA) stock is moving higher from a trading plateau, as analysts have raised their price targets. This might be a good time for existing investors to sell short out-of-the-money put options. This sets a lower buy-in and makes extra income. NVDA is at $183.37 in midday trading on Monday, Sept. 22. That is still below where NVDA stood when I last wrote about Nvidia over three weeks ago on Aug. 29 (i.e., $180.17). More News from Barchart In that article ("Nvidia's Free Cash Flow Falters From ...

Core Viewpoint - Chewy Inc. (CHWY) stock is currently undervalued by at least 15%-16% despite reporting strong Q2 revenue and free cash flow growth [1][3] Group 1: Financial Performance - Chewy reported Q2 revenue growth of 8.6% year-over-year, with adjusted net income increasing by $36.4 million or 34.8% to $141.1 million [4] - Free cash flow (FCF) rose from $91.5 million in Q2 last year to $105.9 million this year, marking a gain of 15.7% [4] - The FCF margin improved from 3.20% last year to 3.41% this year, indicating better cash generation relative to sales [5] Group 2: Future Projections - Analysts project sales for the year ending January 2026 to reach $12.56 billion and $13.58 billion for the year ending January 2027, leading to an estimated net sales of $13.07 billion [7] - Applying a 3.75% FCF margin to the projected sales suggests that FCF could exceed $490 million, which is significantly higher than the current run-rate FCF of $423.6 million [7]

Core Viewpoint - Pacer ETFs has launched two new ETFs, MCOW and SCOW, focusing on companies with strong free cash flow (FCF) quality, aiming to provide quality exposure in the mid-cap and small-cap segments respectively [1][4]. Group 1: Fund Details - MCOW targets the S&P MidCap 400, screening for companies with at least seven consecutive years of positive FCF and the highest FCF quality score, consisting of 81 stocks and charging 49 basis points in fees [2]. - SCOW focuses on the S&P SmallCap 600, also requiring at least seven years of positive FCF and the highest FCF quality score, comprising 82 stocks and charging 59 basis points in fees [4]. Group 2: Top Holdings and Sector Allocation - The top three holdings in MCOW are Pure Storage (4.24%), Docusign (4.21%), and Manhattan Associates (4.12%), with the top sectors being Information Technology (31.98%), Industrials (31.38%), Health Care (11.58%), and Consumer Discretionary (10.91%) [3]. - SCOW's leading stocks include Jackson Financial Inc (5.76%), Corcept Therapeutics (4.95%), and Etsy (4.67%), with the primary sectors being Information Technology (22.19%), Consumer Discretionary (18.71%), and Financials (16.80%) [4]. Group 3: Market Context and Strategy - A higher FCF margin indicates a company's ability to generate excess cash, which is crucial for financial resilience in volatile environments, making quality exposure essential amid trade tensions and economic uncertainties [5][6]. - The performance of smaller-cap stocks is contingent on robust U.S. economic growth, as they are less exposed to exports and have a stronger domestic focus [5][6]. Group 4: Competitive Landscape - Victoryshares Small Cap Free Cash Flow ETF (SFLO) and Pacer US Small Cap Cash Cows ETF (CALF) are competitors, with SFLO focusing on high FCF yield and growth rates, and CALF having a larger asset base of $4.1 billion [7]. - The asset bases of SFLO and CALF suggest a favorable outlook for MCOW and SCOW, given their appealing investment objectives and the historical success of similar funds [8].

Core Viewpoint - Paramount Skydance, formed from the merger of Paramount and Skydance Media, aims to transform the traditional media landscape with a technology-driven approach, despite concerns over its current stock valuation [3][4][11]. Group 1: Company Overview - Paramount Skydance began trading under its new name on August 7, with shares increasing by 15% by August 18 [1]. - The merger combines Paramount's extensive content library with Skydance's production capabilities, led by David Ellison, son of Oracle co-founder Larry Ellison [3][4]. - The company plans to leverage artificial intelligence and cloud infrastructure to enhance content creation and delivery [4]. Group 2: Financial Moves and Strategy - Paramount Skydance acquired exclusive rights to UFC events for seven years at a cost of $1.1 billion annually, which is double the previous ESPN deal [5][6]. - The goal of this acquisition is to enhance the attractiveness of Paramount+ and potentially increase subscription prices, despite concerns about the financial viability of the deal [6]. Group 3: Stock Performance and Valuation - As of August 18, shares closed at $13.50, significantly above the consensus price target of $10.50, indicating a potential downside of 22% [8][11]. - The company generated $507 million in free cash flow over the past 12 months, with an enterprise value of approximately $24.5 billion, resulting in an EV/FCF ratio of 48x, which is higher than competitors like Walt Disney and Warner Bros. Discovery [9][10]. - The implicit financial backing from Larry Ellison, with a net worth of nearly $300 billion, is viewed as a positive factor for the company's future [10].

Core Insights - The article discusses strategies for revitalizing a growth company that has shown minimal growth but maintains stable free cash flow (FCF) and has accumulated significant cash reserves since its initial public offering (IPO) [1]. Group 1 - The company in question has been struggling with growth despite generating stable FCF, indicating potential inefficiencies or missed opportunities in its business model [1]. - The accumulation of cash since the IPO suggests that the company has not effectively reinvested its earnings into growth initiatives, which could be a point of concern for investors [1]. - The article implies that identifying the underlying issues and implementing strategic changes could unlock value and enhance growth prospects for the company [1].

Company Overview - Occidental Petroleum is a $43 billion upstream-focused oil producer that has underperformed in a weaker oil environment, remaining well below Berkshire Hathaway's purchase price [2]. Investment Strategy - The Value Portfolio specializes in building retirement portfolios using a fact-based research strategy, which includes extensive readings of 10Ks, analyst commentary, market reports, and investor presentations [2]. - The portfolio aims to maximize returns by searching the entire market for actionable ideas and high-yield safe retirement portfolios [1]. Analyst Position - The analyst has a beneficial long position in the shares of Occidental Petroleum, either through stock ownership, options, or other derivatives [3].