Four Stocks To Buy After Earnings
Summary
Joseph focuses on the concept of 'Multiple Expansion' combined with 'Earnings Per Share (EPS) Growth.' By analyzing past successes like Google, ASML, and Netflix, he illustrates that buying high-quality companies at historically low price-to-earnings multiples while they continue to grow profits is a proven strategy for significant gains.
He expresses a bullish outlook on the U.S. economy and specific tech firms, contrasting his views with Warren Buffett's current caution. While Buffett views the market as a 'casino' and holds record cash, Joseph aligns more with Bill Ackman and Tom Lee, who see the recent earnings dip as a buying opportunity for dominant businesses. Joseph also highlights the 'Fail of the Week,' critiquing GameStop's leadership for a mathematically flawed attempt to acquire eBay and an evasive interview performance by Ryan Cohen.
Mentioned Stocks
Reasoning: Joseph considers Amazon one of his top picks for 2026, expecting both the stock price and PE ratio to expand as earnings continue to grow.
Reasoning: Joseph notes Meta is trading at a low 20 forward PE while growing revenue at 33%, suggesting the market is pricing in too much doubt regarding its CapEx spend.
Reasoning: Joseph believes the drop to a 22 forward PE is an overreaction, placing Microsoft's valuation in line with the average S&P 500 company despite its superior cloud growth.
Reasoning: Visa is down 5% year-to-date and trading at a 23.5 forward PE; Joseph sees 'zero cracks' in the fundamental business and expects valuation expansion to a PE of 30.
Reasoning: MasterCard is down 11% year-to-date, providing what Joseph considers a great entry point for a high-margin business growing in the high teens.
Reasoning: Joseph criticizes the company's declining revenue and highlights that its net income is largely derived from interest on cash obtained by diluting shareholders, not operational excellence.