3 Stocks To Buy Today Near 52 Week Low?

The podcast analyzes three stocks, Pepsi, Lam Research, and CVS, currently trading near their 52-week lows, examining their financial health and potential for future growth. The analysis uses key metrics and assumptions to determine fair value and potential returns, concluding that while some stocks may offer attractive opportunities, others are potentially overpriced or present higher risks due to declining profits and margins.

PepsiCo's Business & Financials

• 00:00:24 PepsiCo, a global beverage and snack conglomerate, has a large market cap and significant brand recognition with a 23% global soda market share. The company's financials show a high return on invested capital and stable gross profit margins, but the speaker expresses concern over its dividend payout exceeding free cash flow, hindering potential reinvestment and growth.

Lam Research's Business & Financials

• 00:09:43 Lam Research, a leading semiconductor equipment manufacturer, boasts a strong return on invested capital and consistent gross profit margins. The speaker, however, questions the company's share buyback program and dividend payout in light of its high return on invested capital, potentially limiting reinvestment opportunities.

CVS Health's Business & Financials

• 00:18:57 CVS Health, a leading healthcare company, has experienced a decline in profit margins, increased costs, and CEO changes, impacting its stock price. While CVS has a strong retail presence and a large customer base, the speaker expresses concern about its declining profit margins and cash flow, suggesting further analysis and discussion are needed before considering investment.

Stock Analysis Methodology

• 00:06:37 The podcast uses a stock analyzer tool to evaluate the stocks, which relies on assumptions about future revenue growth, profit margins, and other key metrics. The speaker utilizes various assumptions to calculate a fair value range and potential returns for each stock, incorporating a desired rate of return and margin of safety.

Community Involvement & Software

• 00:16:34 The podcast emphasizes the role of the 'Everything Money' community in identifying stocks for analysis. The speaker promotes the community and its software, which includes tools and features designed to enhance investment decision-making. It highlights the exclusive benefits of joining the community before changes are implemented in the software.