Quality and price favor these eight stocks. Amazon improves as its multiple falls; Uber generates serious cash flow; Netflix is more profitable at a lower multiple; ServiceNow grew amid multiple compression. SoFi's appeal hinges on earnings near management's long-term expectations. McDonald's ranks among the world's highest-quality businesses at one of its more reasonable valuations in years. AI disruption weighs on Adobe's valuation; Brookfield compounds assets at a comfortable long-term price. … Show more

Cash generation and market values have diverged for these twelve beaten-down stocks. Over the long term, valuations tend to follow the cash businesses produce; the charts compare quarterly free cash flow with market capitalization for Uber, Netflix, Intuit, Adobe, PayPal, McDonald's, Snap, Duolingo, Chewy, Pinterest, Reddit and e.l.f. Beauty. x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com 

Fair Isaac still looks far too expensive at 90x free cash flow, even after a 75% fall in a monopoly. Even if FCF doubled, the price would equal 45 years of cash flow, and doubling at FICO's size is much less plausible after it raised prices 17 times and angered customers. The test is whether the company can earn the price paid within an investor's lifetime under generous growth assumptions. x.com  x.com  x.com  x.com 

Low forward earnings multiples across eleven stocks cannot persist indefinitely. Nvidia trades near 17.5x, its lowest in over a decade; Oracle near 15x, its lowest in six years. Uber is at 17x, Broadcom 19x, Vistra 15x, AppLovin 14.5x, TSMC 19x, Forgent Power Solutions 18x, Nokia 19.5x, American Express 17x and Western Digital 14x. x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com 

Many high-quality stocks still trade at deep discounts even with the S&P 500 just 2% below its all-time high. Uber, Nu, AppLovin, Inter, American Express, Klarna, SoFi, MercadoLibre and Booking trade at 6-32x 2027 earnings with five-year revenue CAGRs of 11-58%. Brookfield trades at 15x 2027 distributable earnings, with an 18% five-year growth rate. Consensus price targets include $101 for Uber, $501 for AppLovin and $2,200 for MercadoLibre. x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  … Show more

Intuit risks becoming the example of AI commoditizing software, as AI and agents increasingly answer tax and bookkeeping questions instantly, cheaply or for free, removing the need for a costly middle layer. Its large paying base means AI probably won't crush it immediately, but pricing power and users could get squeezed. Its lofty multiples are likely over; it won't go to zero and could still be decent, but it is down 54% this year in a nasty stage-4 downtrend below its 200-day average. x.com  … Show more

Owning quality does not require paying a premium, even with the market expensive at all-time highs. DLocal, Dave, Meta, McDonald's, Lumine, Sezzle, Root, Nu, Constellation Software, Intercontinental Exchange and Uber are high-quality companies trading at 20 times earnings or less, and Fair Isaac, at 21 times, is worth including for its quality. x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com 

McDonald's, Reddit, Uber, Hermès, Constellation Software, ServiceNow and Fair Isaac are high-quality companies trading near their lowest valuations ever. x.com  x.com  x.com  x.com  x.com  x.com  x.com 

Growth in operating metrics supports owning more SoFi, Brookfield, Amazon, Netflix, Uber and Snap: all six look seriously underestimated right now. Stock Analysis charts show SoFi revenue at $1.2B, Brookfield Wealth Solutions funds from operations at $480M, AWS revenue at $42.23B, Netflix revenue at $12.56B, Uber revenue at $14.19B and Snap other-segment revenue at $316.47M. x.com  x.com  x.com  x.com  x.com 

These ten businesses look ridiculously cheap against their own history on forward earnings. SoFi trades at 22.7x vs 48x in 2025, Uber 17x vs 24x last year, Netflix 20.6x vs 39x in 2024, Amazon 27x vs 45x in 2023, ServiceNow 31.1x vs 68x in 2024, Nvidia 19x vs 36x in 2025, Salesforce 16.2x vs 30-32x, Adobe 9x vs 26x in 2024, Microsoft 25.3x vs 32-35x, and Broadcom 20.5x vs 44x in 2025. x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com