Got $500? 5 Ridiculously Cheap Stocks You Can Buy Now
Summary
Parkev presents a thesis that several high-growth companies are currently trading at 'ridiculously cheap' prices relative to their intrinsic value. Parkev utilizes two primary valuation methods: a fair value estimate based on business fundamentals and a market multiples approach using forward price-to-earnings (P/E) ratios. Parkev suggests that these stocks are ideal for investors with limited capital who wish to avoid fractional shares, as all are priced below $100.
Furthermore, Parkev points out that all these stocks trade at below-average forward P/E multiples: DraftKings at 24, Uber at 22, Celsius at 18.75, Netflix at 21, and Pinterest at 11.9. Parkev personally owns Uber, Netflix, and Pinterest, and expresses interest in adding Celsius and DraftKings to their portfolio.
Mentioned Stocks
Reasoning: Parkev highlights Celsius as a strong growth play trading near its 52-week low of $27 with a fair value estimate of $57.55. Parkev points to the Pepsico partnership and international expansion as major catalysts, with the stock trading at a forward P/E of 18.75.
Reasoning: Parkev estimates a fair value of over $127 while the stock trades at $75 in the transcript context. Parkev is bullish due to the company's 30% operating margins and its success in creating original content, trading at a forward P/E of 21.
Reasoning: Parkev values Pinterest at $59, far above its $22 market price. Parkev highlights the efficiency of the user-generated content model and the platform's high value to users. The stock trades at the lowest forward P/E of the group at 11.9.
Reasoning: Parkev argues that DraftKings is undervalued at $26 compared to a $38 fair value. Parkev notes that while prediction markets are currently sidestepping regulations, DraftKings' established regulatory path in various states provides a long-term competitive advantage as laws tighten. The stock trades at a forward P/E of 24.
Reasoning: Parkev sees a $50 discount with a fair value of $125 against a $74 price. Parkev believes fears of Tesla's autonomous competition are overblown and that Uber's willingness to partner with other technology providers will secure its future market share. The stock also trades at a reasonable forward P/E of 22.