Video summary

11 Undervalued Stocks To Buy Today

Main summary

Key takeaways

Finance

Market Context & Key Performance Cited

  • Broad market rally, but leadership is concentrated:
    • S&P 500: +7%
    • QQQ: +14%
  • Rally leadership is described as mainly semiconductor/AI companies.
  • Many other stocks are “flattish or going down,” creating selective opportunities.

Portfolio Approach / Framework (Explicit)

Core-Satellite Strategy

  • Core (~50%): ETFs (examples mentioned: SPY, VU, SCHG)
  • Satellite (~50%): individual stocks viewed as “market beating”

Entry Discipline

  • Emphasis on research / due diligence
  • Buy only when you’re confident the company is high quality with fundamentals
    • Phrases like “audited it” and “know them fundamentally” are highlighted.

“11 Undervalued Stocks” — Valuations, Signals, and Recommendations

1) S&P Global (SPGI) — Buy

  • Down 26% from highs; near the lower end of the 52-week range
  • Cheapest historically over ~5 years on P/E and Price to Free Cash Flow
  • Valuation notes:
    • ~21 forward P/E (described as “almost unheard of” for this quality)
    • If excluding disrupted “market intelligence”: ~25–26 forward P/E
  • Recommendation: Buy

2) Mastercard (MA) — Buy

  • 18% off highs, near the low end of the 52-week range
  • Historical bottom over ~5 years on trailing P/E and trailing free cash flow yield
  • Earnings catalyst:
    • Revenues growing
    • EPS growing in the high teens
  • Recommendation: Buy

3) Costco (COSTCO) — Not a Buy (Pass)

  • Valuation described as middle of historical ranges (P/E and price-to-cash-flow)
  • Explicit caution:
    • Still at an expensive valuation
    • Stock price has “moved way ahead” of intrinsic value → intrinsic value needs to catch up

4) Texas Roadhouse (TXRH) — Buy

  • 15% off highs, mid-range of 52-week and valuation metrics (P/E, price to free cash flow)
  • Catalysts:
    • Beef prices expected to go down as “catalot sizing gets bigger” (transcript uncertainty)
    • Organic growth via opening new restaurants
  • Recommendation: Buy

5) Microsoft (MSFT) — Buy

  • Down 27% from highs; bottom of the 52-week range
  • Valuation:
    • Very bottom of historical P/E
    • Free-cash-flow yield toward the middle due to heavy capex spend
  • Macro/strategy lens:
    • “Hyperscalers” (MSFT, Amazon, Meta, Google) investing heavily in capex
    • Spend framed as more predictable and monetizable via AI/tools/ecosystems
  • Recommendation: Buy

6) Moody’s (MCO) — Buy

  • Middle of 52-week range; only 17% off high
  • Undervalued based on historical P/E and price to free cash flow
  • Thesis: data/services are harder to disrupt
  • Recommendation: Buy

7) Google (GOOGL) — Hold / Wait for Better Entry (Not a Buy Today)

  • 11% off highs, toward high end of 52-week range
  • Valuation:
    • Undervalued on P/E (relative to its recent history)
    • “Super expensive” on price to free cash flow
  • Recommendation: Do not buy now; wait

8) ASML (ASML) — Hold (don’t add at current levels)

  • “Biggest winner” over trailing year:
    • ~$80,000 gains mentioned
  • Price distance:
    • 3.2% off highs, near the top of its trading range
    • Current ~$1,800
    • 52-week low mentioned ~$683
  • Thesis: fundamentals improving (orders/demand); author still holds
  • Explicit caution: “not piling more money… at 3% off its highs”

9) Meta (META) — Buy

  • 27% off highs, bottom of 52-week and historical valuation area
  • Valuation dynamic:
    • Looks cheap on P/E
    • Looks expensive on free cash flow yield due to capex/compute spending
  • Thesis: despite capex, described as super profitable and beneficial long-term
  • Recommendation: Buy

10) Amazon (AMZN) — Buy

  • 14% off highs, middle of 52-week range
  • Valuation:
    • “Very cheap” on P/E (bottom of 5-year range mentioned)
    • Cash flows described as weak; author says it “is going into the red based on free cash flow”
  • Long-term “multiple levers” thesis (non-exhaustive):
    • Starlink
    • Robo taxis (“Zuks”)
    • Robotics operations
    • Logistics, retail, ads
    • Prime Video
  • Recommendation: Buy
  • Explicit price target: go above $300/share

11) Netflix (NFLX) — Buy

  • Down 38% from recent peak; near low end of 52-week range
  • Undervalued on historical P/E and historical price to free cash flow
  • Catalyst / narrative:
    • Warner Bros. Discovery acquisition deal canceled → Netflix received $2.8B cash (“cancellation prize”)
    • Stock briefly rose above $100, then fell back to ~$82
  • Valuation & growth notes:
    • P/E: 26
    • EPS growing; subscriber/market share gains; growth described as mid teens
  • Recommendation: Buy

Additional Named Stock (Still Described as “Buy”)

Duolingo (DUOL) — Buy

  • Holder disclosure:
    • “Still hold every share… added more” (no sell)
  • Valuation/price notes:
    • Up to 126 mentioned (near recent momentum) but still 74% off highs
  • Trading volatility:
    • Low ~88
    • High ~489
  • Thesis: scaled digital education platform; compared to “app-like” platform winners (e.g., Spotify mentioned as an analogy)
  • Recommendation: Buy

Watchlist / “Two More” Considered Buys (Explicitly Not in Initial 9)

Uber Technologies (UBER) — Buy

  • 31% off highs; low end of 52-week range
  • P/E described as “expensive” but clarified as ~12x to ~18x
  • Emphasis: fast earnings growth + favorable price to free cash flow yield

DoorDash (DASH) — Buy

  • 46% off highs; bottom of 52-week range
  • Low historical P/E and low historical price to free cash flow
  • Thesis: operating leverage/scale + grocery expansion

Macro / Inflation and Market Reaction (Numbers & Takeaways)

  • Inflation: 4.2% in May (energy costs driving)
  • Communication nuance:
    • Month-over-month increase “cooled slightly” vs April
    • Headline “looks bad,” but later sections suggest it “may have peaked” and be “softening”
  • Outlook is conditional:
    • Assumes June gasoline prices won’t accelerate
    • Key geopolitical risk: renewed conflict affecting the Strait of Hormuz
  • Market behavior:
    • described as very volatile, with drawdowns and rebounds over the week

SpaceX IPO, Tech-Capex Jitters, and Investor “Barometer” Discussion

  • SpaceX IPO framed as a major event / “test”
  • Commentary by Tom Lee and Dan Ies:
    • Near-term volatility described as “jitters/anxiety”
    • Also framed as a gauge for the tech trade
  • Timing:
    • SpaceX IPO described as occurring this Friday (per segment timeframe)
  • Dan Ies view:
    • Market can support capital raises due to sustained spending/investment arms race
  • Author’s stance:
    • Not buying SpaceX due to inability to “wrap” valuation
    • Prefers Amazon as more understandable

Semiconductor & Memory Angle (ASML Thesis)

  • Mechanism described:
    • ASML enables smaller chipmaking for CPUs/GPUs
  • Memory link:
    • Memory demand rises when systems process/store more data
  • Memory demand surge:
    • Micron Technologies discussed as a beneficiary
    • Claim: Micron is becoming a trillion-dollar stock
    • Claim: Micron net income this year nearing Google (transcript comparison)
  • Capex / orders:
    • Memory chip orders “exploding past logic”
    • Micron reportedly ordering more EUV machines and building in-house due to a long demand runway

Disclosures / Cautions

  • No explicit “not financial advice” line included in the provided subtitles.
  • Author’s cautions include:
    • Avoid buying hyperscalers if capex is believed unpredictable / low return (risk framing)
    • Avoid buying Google at current entry point due to valuation mismatch on free cash flow
    • Don’t add to ASML near highs

Instruments / Tickers and Related Entities Mentioned

Index/ETFs

  • S&P 500, QQQ
  • SPY, VU, SCHG
  • ProShares (issuer mentioned)
  • “ProShares Ultra SpaceX…” (SPCF implied)

Stocks

  • ASML, SPGI, MA, COSTCO, TXRH, MSFT, MCO, GOOGL, META, AMZN, NFLX, DUOL
  • UBER, DASH
  • Micron Technologies

Other Named Entities (Non-tickers)

  • Anthropic, OpenAI
  • SpaceX
  • Warner Brothers Discovery (deal context)
  • Strait of Hormuz
  • “crypto investors” (context only)

Key Explicit Numbers Recap (High Signal)

  • S&P 500: +7%
  • QQQ: +14%
  • SPGI: -26% from highs, “cheapest in 5 years”
    • ~21 forward P/E
    • ~25–26 excluding disruption
  • MA: -18% from highs
    • EPS growth high teens
  • COSTCO: described as expensive (no exact multiple provided)
  • TXRH: -15% from highs
  • MSFT: -27% from highs
  • GOOGL: -11% from highs
    • “Super expensive” on free cash flow
  • ASML: -3.2% from highs
    • Price ~$1,800 vs 52-week low ~$683
  • META: -27% from highs
  • AMZN: -14% from highs
    • Target >$300/share
  • NFLX: -38% from peak
    • P/E 26
    • Growth mid teens
    • Price referenced ~$82
  • DUOL: 74% off highs
    • Recent value mentioned: 126
    • Range ~88 to ~489
  • UBER: -31% from highs
    • Valuation ~12x–18x
  • DASH: -46% off highs
  • Inflation: 4.2% in May
  • Netflix deal payout: $2.8B
  • ProShares/SpaceX leveraged product:
    • 2x daily returns
    • Launch aligned to IPO date June 12th (explicit)

Presenters / Sources Mentioned

  • Tom Lee
  • Dan Ies
  • Mark Mahaney (analyst cited for price targets)
  • Warren Buffett and Charlie Munger (quoted about “casino” market concern)
  • ProShares (issuer mentioned)
  • The Economist (referenced regarding inflation messaging)

Original video