3 Stocks To Buy & 3 Stocks To Sell Before 2027 Starts (Huge Potential)

Today, we are diving into three stocks that analysts are saying to buy and three stocks that analysts are saying to sell. And a couple of these will genuinely surprise you. One of the sells is actually up a huge 45% this year, but analysts think it may have run a little too far. Another is a famous rocket ship company that's burning cash faster than it can bring in. Some of these are quiet, boring money makers. Others are red hot and risky. So, let's get straight down the line. One quick note before we start. These buy and sell calls come from Morningstar's analysts. And I want to be really clear up front. These are not my picks. I'm never here to give any stock picks. What we're here to do is to teach a process. My job today is to break down what the analysts are saying and then run each one through our own process so you can see how we would check their work and also to teach you how to apply that process to your own investing. So, first, a stock that analysts are saying to buy. S&P Global. You might not know the name, but you definitely know its work. It's the company behind the famous S&P 500 index and it's one of the biggest providers of credit ratings and financial data in the entire world. Its stock is actually down about 8% this year, though part of that is simply because it spun off one of its businesses and handed those shares to its new owners. So, the real business has actually held up better than that number alone makes it look. So, guys, here's S&P Global today. Now, we're going to go through the bull and bear cases. As a reminder, when you have our software, you have to All you do for the bull and bear cases is you click down here at our Ask AI, see bull and bear cases, minimize, and they'll pop up in 30 seconds. So, here's the bull case, business stuff only. S&P Global has had an incredibly deep moat. When a company wants to borrow money by issuing bonds, it almost always needs a credit rating and S&P is one of just a few trusted names that provide them. On top of that, it collects a small fee every time someone builds an investment product around the S&P 500. And with trillions of dollars tied to that index, it's a quiet toll booth on the entire market, no matter where it goes. It's a wonderfully sticky and repeatable business. In fact, it's really four businesses in one. Credit ratings, financial data and analytics, stock market indexes, and energy and commodity information. So, it earns money from many corners of the financial world all at once. And once a bank or investor builds its daily work around S&P's data, switching to someone else is a real pain in the ass. Now, here's something that most people miss as well. A business like this needs very little money to grow. It doesn't need factories or warehouses. It's just data, it's people, and it's trusted name. So, more of what it earns can flow right back into its owners at the end of the day because of how low capital it needs to operate. Now, what's the bear case? Well, its rating business rises and falls with how much debt companies are issuing. So, high interest rates can really slow it down. And over time, cheaper AI-powered data providers could chip away at its pricing power. Still, replacing a trusted rating agency isn't something the financial world does very quickly. So, let's run the numbers and see if the analysts are right. So, guys, remember, when it comes to the price of the company, I don't look at the ticker price. I look at the market cap. And the price of this business is $134 billion. That buys every share in the market in full. The next thing I do, I look at the enterprise value. So, the market cap is 134 billion, the enterprise value is 156 billion. That difference of 22 billion dollars is essentially their net debt. Now, sounds like a lot, but we've got to compare it to the cash flow. Cash flow last year was 5.5 billion. The 5-year average was 4 billion. So, really, it's not that bad. It's selling for about four times it's last year's free cash flow. And that's including all the debt and taking their cash and paying down that debt. So all in all, it seems like they can afford this debt probably pretty manageably. Now, we'll see later in the pillar what their long-term debt is compared to their cash flow. Next. Guys, returns on capital. The 5-year number is 15%. The 1-year's only 8%. So that's kind of like a hey, why is it dropping so much? It's based on operating income, so maybe their operating income has fallen. Next. They're selling for 24 times free cash flow and 27 times earnings. So their free cash flow last year and over the 5 years is actually higher than their net income, which I like seeing. It's a very rare occurrence when that happens. But this 24 and 27, it's a little frothy. Doesn't mean it's too expensive. Remember, one number and one metric in and of itself is not a good idea of saying this is good or this is bad. Because if this company can grow its cash flow at 30, 40% a year for several years, this is cheap. But that's the question we have to find out. Now, in terms of profit, the 1-year profit margin is about 30 and 1/2%. Their 10-year's 29 and 1/2. Their 5-year's 28. So it seems pretty consistent in the high 20s. So I like seeing that, but this number is what I love. Their high gross profit of 71%. Now, what confuses me is this. What this high gross profit means is every dollar they add of revenue, a lot of it's going to go to profit. But with this high number, why is their profit margin not consistently going up as their revenue continues to climb? Cuz the revenue is climbing very consistently here. Very, very consistently. So I'm a little confused by all of this. And for those of you love a dividend, it pays about a 0.9% dividend, which eats up only a billion dollars of their cash flow. Now, our community members have this company as a buy right now. So let's check out the eight pillars. Well, guys, here are the eight pillars. We've got an X at our 5-year free cash flow number, which we discussed, but everything else is a check. And they're buying back shares here. Now remember, buying back shares people love, but it doesn't necessarily make it a good thing if they're paying an overvalued price. That's something that a lot of people miss when it comes to share repurchases. It's only good if the shares are undervalued. Now guys, I threw a lot of data at you. Remember, I'm here to make this as simple as possible. If you hear or see me write or send anything that's a little confusing, write it in the comments below so we know to address it. And also, to make it easy for you, I have an absolutely free special PDF for you. It includes two major things. One, it's going to explain all these key metrics to you, how they're calculated and what they mean. And second, it's going to go through all six of these companies for you in the PDF. This is an over 20-page PDF. So if you want that thorough analysis done by us, click the link below in the description. It'll be emailed to you. You can download it in a matter of seconds. So, let's see what analysts think about this company. So right now, analysts have the profit this year finishing around $18 per share, growing to 27 over the next 4 years. So it's some good double-digit growth overall. As for revenue, very consistent but slow. So a drop of 3% this year, 5%, 7%, 5 and 1/2, 5.3. Now I will say, rates are going up like we mentioned before. So if companies are borrowing less and less, less business for them. And if you believe that the stock market's overvalued, a bad bear market in these next three or four years might hurt the revenue a little bit. In fact, just to show you, this is going back to the dot-com era. '96, '97, '98, '99, 2000, 2001. Look at the revenues absolutely skyrocket. Over a 40% increase in a matter of 4 years. And then stagnation for a little bit. Not as much growth, but it's still growing nonetheless. So guys, we have some story. We have some numbers. Our job now is to make assumptions about the company and then determine what the right price to pay is not including the balance sheet. Now guys, the reason the stock analyzer tool is so important is if you're like me back in the day, I didn't know what the ticker price meant. This helps you put it all together. And if you don't know where to start, we have help me make assumptions now. It's going to walk you through every single line here and ask you questions to help guide your assumptions on stock analyzer. As you get better at it, you'll need that less and less. But I made here my a 10-year analysis on S&P Global. First off, I did revenue growth of 3, 5, and 7% per year. Not a ton. Next, guys, I'm focusing here on free cash flow, but I'm going to keep them both the same with profit margin. I like the fact that free cash flow is higher. So I put 30, 32, and 34% profit margin and free cash flow margin. Next question, what PE and price to free cash flow would I assign to this company 10 years from now? Well, guys, there's some questions to ask. Do they have a lot of growth potential? Not really. Do they have a moat? I would say they have a pretty big moat. S&P 500, S&P Global overall, great moat. Do they have good returns on capital? Yeah, they do, but they're declining, but they just got rid of a business, so that might be part of it cuz their operating income fell. So what PE would I assign to this business compared to the S&P 500? I don't care what the PE is right now. What I care about is the historical average for the S&P is 15 to 17. Is this company better or worse than the average company in the S&P? I think better. Now before I wrote 14, 18, and 22, I'm actually going to change this. I'm going to go 15, 19, 15, 18, and 21. And then finally, what return do I want? Now guys, for the intention of teaching, I want to show people what's the value of the business. So I put in the historical market market return of 9 and 1/2%. Keep in mind, this is not the price I want to pay and not the return I want. I advise people all the time, this is my opinion, that if you want to buy an individual stock, you need a higher return than the market return. If not, then we'll just buy a low-cost S&P 500 ETF and just roll with it. Why spend all the hassle and time of sitting here and buying an individual company? So, I put in my no margin of safety 9 and 1/2% return. I hit the analyze button. The stock price is 453. I have a low price of 240, a high price of 460, and a middle price of 335. Now, what does this mean? Well, guys, if our middle assumptions occur, then I'll make about a 5 and 1/2% discounted cash flow return. If my low assumptions occur, about 1.2. If my highest assumptions occur, I'm looking at a 9.6% return. So, you've got to ask yourself, is this worth it to make 9.6% assuming what my best assumptions were? But, of course, you have to sit there and run the numbers yourself. Also, we added something here. This is going to show you, based on your assumptions, what the revenue and profit would be 10 years from now. So, this is one way of keeping an idea of like, "Hey, what seems realistic or not?" Because a lot of people put 30% in and then they'll see the fact the company 10 years from now has to do, you know, 10 times more sales. Not realistic. All right. Now, the first stock that analysts are saying to sell, SpaceX, Elon Musk's rocket and satellite giant, which recently went public. If you watched our SpaceX videos back when it went public, you know how deep we've gone on this one. And if you haven't, they're right here on the channel. So, check it out after this video. The stock is up about 9% from its IPO price, but it's well below the high it hit right after it listed. So, why are analysts saying to sell? So, let's be fair and start with the bull case because it's jaw-dropping. SpaceX is years ahead of everyone in reusable rockets, and its Starlink satellite internet network is a powerful, extremely hard to copy business with millions of customers and big government contracts. It's also building Starship, a massive next-generation rocket, and it's folded in an AI arm with products like Grok. So, even if above some of these giants bets pay off, the upside is enormous. But, here's the bear case, and it's the whole reason that analysts are cautious. SpaceX is spending staggering amounts of money building rockets, launching thousands of satellites, and now pushing aggressively into AI. It's actually spending more than it brings in. The AI push is the riskiest piece because the technology and the economics there can shift incredibly fast. And when a company spends more than it makes, that money has to come from somewhere. It's either borrowing from investors or selling shares from about to investors. So, it either hurts the balance sheet or dilute shareholders. So, if you're shareholder currently and they start issuing more shares, your slice of that pie gets smaller and smaller. It's like having a pizza with eight slices, and then they say, "You know what? We need more shares." They cut the slices in more. Your piece got a lot smaller. Now, guys, I want to remember remind you that a brilliant company can still be a risky stock if it's betting the farm on a dozen expensive things all at the same time. And guys, the market's great, so raising capital is probably a lot easier. But, what if we have a bear market? And at SpaceX's valuation and market cap, you're buying into very high expectations. And ex- expectations that high leave very little room for anyone to stumble. So, let's analyze it. So, guys, SpaceX is a $1.85 trillion market cap. Good balance sheet though cuz only $1.83 trillion in terms of enterprise value. So, more cash on hand than debt as of right now. Guys, everything else is garbage. It loses money, it loses free cash flow, it's it it has no profit. I don't even know how to look at this without saying, "You've got to base this on some sort of other metric." The metric I suggest is price-to-sales ratio. It's currently 58. Just to keep in perspective, let's go to a company like Microsoft, which is large, highly profitable, and they're selling for 12 times the sales, which is still kind of frothy for them cuz they're also selling for for 30 times earnings. But, let's go back to SpaceX and I want to talk about a few other things here as to why I'm concerned about that. In order to justify this, their sales have to skyrocket, and they're doing better and better. But, to get to the 12 times sales that Microsoft is at, it would need to do if if if current market cap is 1.85 trillion, you need to divide that by 12, it's about $150 billion in sales. So, they have to 5x from here to get the same valuation. Now, with that said, you're probably like, "Well, Paul, that's not fair. Microsoft is very mature." Absolutely. Microsoft is very mature. Some would argue though that Microsoft's maturity would justify a higher valuation than a company that has a lot of risk potential, even though the growth is there. The question is, where do you stand on that? And guys, this is exactly why I teach on YouTube cuz the story of SpaceX is phenomenal. The numbers, I can't make heads or tails of it. Do I think SpaceX is amazing? Yes. Do I think they're doing amazing things? Yes. But, can I determine over the next 10 years what the company will be making? I can't. And for that reason, it's very difficult for me to make an idea of what the company is worth. But, let's go see what analysts are thinking about the company. Analysts have a company making $4.20 in 2 years. I'm going to go ahead and say probably not. And there's a wide range here. 14 analysts have a range of 13 cents to $7.76. Even with the highest of ranges, if you multiply a 25 PE, which is aggressive for any company, you're still looking at $200 per share. Not bad. That's assuming no dilution. That's assuming the balance sheet stays the same. And it's assumed they have to sit there and keep on and get the profitability. It's a lot to assume for the next 3 years. And look at their revenue. They do have revenue closing the year out at 43 billion and getting to 185 billion in 2028. Guys, I want to remind you, this is an amazing amazing company what they're trying to do, but it's okay to say I don't get how they're going to make money quite yet. You might sit there and say, "Well, I'll miss out." Guys, there's tens of thousands of stocks out there to find. I'm trying to encourage you to find caution and sit there and be ready when you find the company that makes a sense of the pricing. Guys, there will be a day when you can understand SpaceX profitability. I don't think that's today. Now, back to the analyst buy list. Intercontinental Exchange, usually just called ICE. Not that ICE. It owns something that you've absolutely heard of, the New York Stock Exchange, along with a bunch of other major exchanges, clearing houses, and even mortgage software. Its stock is roughly flat this year, which for a steady compounder is less boring than it sounds. If the business keeps growing while the price sits still, the stock can actually get cheaper compared to what it earns. So, what's the bull case? Well, ICE owns the plumbing that the whole financial world runs on. Once banks and traders build their entire business around an exchange, they almost never leave. The switching costs are enormous and more traders create more activity, which pulls in even more traders. That's a beautiful self-reinforcing loop. Plus, steady recurring money from selling data and software on top of all that. Its clearing houses also sit right in the middle of enormous financial trades making sure both sides actually get paid. A role that's essential and heavily protected by regulation, which keeps new competitors out. That mix of scale, habit, and regulation is about as strong a moat as you'll find anywhere. And when we have a strong moat, we give them a premium to the company. And notice how it makes money. ICE gets paid more when markets are busy and wild, but its data and software keep paying even when things are quiet. That's a nice minimum cushion. Because remember, we have been in a wild bull market lately. So, if we enter suddenly a bear market, you have to ask the question, how much will their revenue be affected? Now, a bear case, one piece of advice, its mortgage software business is tied to the ups and downs of the housing market, which can slow way down when interest rates are high. And where are interest rates right now? Regulators could one day lean on the fees it charges for trading and data, but at its core, this is a mission-critical infrastructure that's very tough to replace. So, let's run it our everything money way. This is an $90 billion market cap business. Now, guys, one thing I don't like here, market cap is $90 billion. Look at the enterprise value here, $230 billion. Now, my hope is that a lot of this money is money they owe to people in the short run that they're holding cash for. That could be the case, but that's a lot of that's a lot of enterprise value. It's $140 billion of debt. And guys, guess what? They only make $4 billion a year in free cash flow. That's a really high number. I'm immediately going to skip right to it and see the eight pillars. So, a lot of it is um short-term debt. Let's go to the balance sheet. So, of their total liabilities of $144 billion, only $24 billion is long-term. But, when you're only generating $3.8 to $4 billion a year, it's still a high multiple on their debt. So, I think one of the key components here is to understand their debt. Not only that, their $3.9 billion in free cash flow, they pay out $1.1 billion of that in dividends. So, if you have $24 billion Here's why I get concerned about debt. I want to explain this. We're in a higher interest rate environment that might be getting worse. My question I'm actually ask AI right now. I'm going to ask them, what is the average rate on ICE's long-term debt and average maturity date? So, what I'm asking here is I want to know how soon are they going to have to start refinancing debts. Because if they're imminent and their average rate is very low, so like let's say they have to they have to refinance next 2 years and their average rate is 5% cuz they locked it in years ago. Like let's say for example, they have to refinance their debt in 2 years and their average rate is 4 and 1/2 or 5% cuz they took it years ago. They're going to have a big drop in their cash flow. So, as of December 31st, 2025, the average Oh my gosh, weighted cost of 3.7% and a weighted average maturity of 14 years. Okay, so they have a long way to go. They have 14 years before they have to average on average refinance their debt. But guys, look at that 3.7%. Let's say instead of 14 years, it was 1.4 years. You better believe that rate's going to 5 and 1/2 or whatever percent and they're going to all of a sudden lose another half billion dollars a year in cash flow. That's some of the stuff that I'm teaching on this channel to help you go forward. Oh, another thing I want to mention. Look at these terrible returns on capital here. 7% and 6%. That is no bueno. Yes, they have a low debt rate of 3.7%, but they're barely making it on their returns on capital. So, it's not leaving much for shareholders. So, let me explain that to you. Cuz this is a really important, but often misunderstood metric. When you start a business, you can borrow money or you can take investors, which is equity. Each one requires a return. If you're borrowing money, let's say they require 6% return on debt. Right now they're at 3.7 here, but let's say it's 6% and let's say as an investor, you want a 10% return. Well, the average of that, let's say it was 50% debt and 50% equity, would be 8%. So, if you need overall to provide an 8% return overall to cover your 6% with debt and 10% to your investors, this is saying they're not making that. So, they're not making enough money to be able to pay off their investors. That's what's called that they're not making economic profit. That is not a good thing. You don't want that. So, I'm already sitting here looking at this going, "Man, this one's already a tough one which you have to buy dirt cheap based on its returns on capital and a lot of debt." Like I'm already kind of like hesitant on this one. But, so let's see what the eight pillars look like. So, shares outstanding are up slightly, returns on capital suck, long-term debt is high. Yes, the revenue, net income, and profit, and cash flow are up, but everything else is an X, and it's giving it's leaving me an uneasy feeling going like this doesn't worry me so much, but I look at it going they're going to have to figure out a way to get I mean they're paying these dividends. I don't know. It's just a tough one for me. Let's see what analysts think. Analysts have profit growing pretty decent, 17%, 9%, 12, 12, and 14%. That's pretty solid. Pretty solid. Now, what's the stock price right now? 158. So, in 4 years, if they're able to sell for I mean the returns on capital are bad. 15 times this, you're looking at a $200 stock. Not much upside potential and a lot of debt. And for revenue, bleh. 11% growth, 5.5 and 1/2, 6 and 1/2, 8, and 6. So, mid-single digits. So, guys, again, here we are running the stock analyzer tool. So, guys, I've never done ICE before. I'm going to sit here and do this live right now. So, first off, for revenue growth, I'm going to go 3, 5, and 7% for the next 10 years. I'm doing a 10-year analysis. For profit margin and free cash flow, they seem to be around each other, uh but free cash flow seems to be consistently higher, but it's slightly getting worse. I don't know if that's a trend or not, but I'm going to sit here and put 26, 28, and 30. Now, you might be like, "Well, Paul, that's like really low." I get it. It could be, or it could be spot-on. I just I'm not going to give this company based on a lot of things here much much more credit. Now, what PE would I assign to this company 10 years from now? Well, guys, they have a good moat in the sense of like it's hard to switch from them, but these returns on capital are terrible. Like and they have a lot of debt on them. I look at this going I'm going to go low for my personal opinion. I'm going to go 12, 15, and 18. And then, of course, my 9 and 1/2 percent return. Now, guys, again, we need margin of safety on these companies. So, let's hit the analyze button. The stock is currently at 160. Oh boy. I have a low price of 80, a high price of 160, actually, and a middle price of 115. It's actually not as bad as I would have thought. I would have thought it'd be much worse than this, but it's not that bad. But, for me, to buy a company like this, I would need a really, really high return cuz I just don't like that debt, and I don't like those low returns on capital. Now, next on the analyst sell list, Robinhood, the popular app that made free stock trading famous and now offers crypto, options, retirement accounts, and even banking. Its stock is down about 16% this year. And to be fair, now the bull case is real. Robinhood is trying to grow from a simple trading app into a full financial home for its users, adding banking, credit cards, and retirement products that keep customers around longer and bring in steadier, more reliable money. It's also signed up millions of paying gold members, and it's going after young investors early. The idea is that someone who opens an account at 25 could still be a customer at 60. The more of your financial life that live inside Robinhood, the stickier you become. But, here's the bear case and why analysts have put it on the sell list. Robinhood still leans heavily on trading, especially the risky stuff like options, crypto, and betting markets. When markets get boring or scary, people simply trade less, and Robinhood's income can swing hard from one quarter to the next without any warning. And in the constant threat of new regulation on these products, you've got a business that can be a real roller coaster ride. So, when you add a business that swings that hard, it's really, really tough to value because you never quite know what a normal year looks like. But, remember, a shaky business can still be a buy at the right price, and a great one can be a bad buy at the wrong price. So, let's see what the numbers say for Robinhood. I'm going to pull it up here in our software. I believe the ticker is Hood. It is. $87 billion market cap, $118 billion enterprise value. All right, guys. Some other things. Return on capital, really solid. 28% this last year, but the 5-year is only 2.28%. Guys, it's expensive. It's selling for a P. Now, here's the thing about the P. If you look at this, their 1-year net income is 2.07 billion. Their 1-year free cash flow is only 219 million. We got to understand why that's so different. That's a huge, huge difference. Let's go to our AI and ask. Why is the net income for the last 12 months so much higher than the free cash flow? So, this is going to tell me why that is, cuz I'm sitting here going like, that's always a red flag to me. But, what's interesting is their 5-year free cash flow is 630 million, while their 5-year net income is only 180. So, they have far more free cash flow average for the last 5 years than they do net income. Now, guys, one big benefit of this company is 81% gross margin. That means every trade, every transaction that happens, 81% of it is going to the bottom line. And look at this revenue growth. 24% a year for the last 5 years. Actually higher in the last three, 43.5% per year. This company is growing like crazy. I wonder how many customers they have. Let's find that out. How many Let's find this out. How many accounts does Robinhood have with customers by year going back to 2021. So, I want to see what is their growth been over the last 5 years on customer growth. That's going to tell me is it slowing, getting faster? But, I want to remind everybody, Robinhood's the place that a lot of people have gone to to basically gamble in terms of investing. It's not really investing, it's speculation. So, Oh, I'm actually surprised by this. I thought it'd be higher. 22.7, 23 million, 23.4, 25.2, 27 million dollars. Now, what's the average account size? So, this is going to tell me, okay, are they are the account size growing? Is it cuz of the bull market? Is it cuz people are adding money? These are assumptions. We can't get exactly the number, but we can look at it and say, "Okay, what are the metrics here that are going?" So, using Robinhood's latest reported figures, I found 384 billion in total platform assets. So, the average is about 13,400 per funded customer. Okay, that's a Can you tell me the average size by year going back to 2021? So, it told me right now as of August 31st at 13,400 per funded customer. Now, I'm trying to find out what is it per year going back to 2021 to see cuz if the market's up from 2021 and now almost triple. Let's see. Oh, wow, look at this. Look at this. 4,300 dropped to 2,700. Makes sense why we had a bear market in 2022. Back to 4,300, 7,600, 11,930, and then recently it was at 13,400. So, these guys are probably in riskier assets. So, my guess is if we have a bear market, the the funds are going to fall harder than that. Now, let's check out the eight pillars here. Ugly. Low overall debt, like we said before. I think it's a little bit higher than that. Um but we have high price of free cash flow, high PE, crappy returns on capital for 5 years, but the 1 year is good. Shares outstanding are up. So, they're issuing new shares, which makes I don't like the fact they're doing that, but it happens. But their revenue, cash flow, and profit are up. So, that's great. Um let's check out analyst estimates. I don't think they're as optimistic here in the future. 220 growing to 444, then dropping to 375 per share in 2030, and revenue growing from 5.3 billion to 9.14. All right. So, let's go to our stock analyzer tool and make our assumptions. Now guys, I want to repeat. It's very difficult for new companies, especially companies like Robinhood. Hood. there's a lot of people watching that have Robin Hood accounts. It tends to be more speculative person in Robin Hood. So, if there's a bear market, it's going to hurt them more. So, I'm being a little bit more conservative. I put 5, 9, and 14% revenue growth for the next 10 years. I did 20, 30, and 40% profit margin. Guys, I still think that's a lot. But, with 81% gross margin, as they add more money in there and do more transactions happen, it can go higher. They did 42% last year. But again, if we have a bear market, I have to assume we're going to have some sort of bear market in in the next 10 years, it might be longer than people would like, and it might keep some people away for a while. Next, my PE I put 15, 18, 21, and then again, I put in my 9 and 1/2% market return. So, we hit the analyze button. The stock's currently at $95 a share. I have a low price of 19, high price about 92, and a middle price of 42. So, for me, I'm just I just got to weigh it out. And to be honest with you, I have to do more research on Robin Hood to understand the financials, how they're getting customers, what their customers cost to get, the profit and free cash flow being so different. I've really got to understand that more. And now, guys, a reminder, never take our title or thumbnail literally. We're never here to give a stock tip. We are here to teach a process that you can one day take and apply to your own investments. And remember, these buys and sells are what the analysts are saying, not me. I'm just here to break them down and check their work. I actually do agree with analysts here on Robin Hood being a sell. Now, the last stock that analysts are saying to buy is Alliant Energy. And this one is about as boring as it gets, which is honestly kind of the point. It's a regulated electric and gas utility serving homes and businesses in Iowa and Wisconsin. Its stock is up about 10% this year. Now, normally a utility like this grows very slowly. But here's the exciting twist. The bull cases, all those hungry, power-hungry AI data centers need need enormous amounts of electricity, and utilities like Alliant are first in line to provide it. Management expects electricity demand in its area to jump 60% by 2031. For a steady utility, that could mean years of surprisingly fast growth. Here's how utility company actually makes money. Regulators allow it to earn a set approved profit on the money it invests in power plants and power lines. So, the more it needs to build to serve those data centers, the bigger its earning base can grow. The data center boom doesn't just bring more customers. It grows the base Alliant gets to earn on as long as management executes. What's the bear case? Well, to serve all that new demand, Alliant has to spend huge amounts of money upfront building power plants and upgrading the grid long before any of that money comes back in. If regulators won't let it recover those costs, or if those big data center projects get delayed, the payoff could end up a smaller amount than hoped. Utilities also carry a ton of debt. So, higher interest rates make every new project more expensive to finance. And if those data centers end up using less power than expected, Alliant could be stuck with plant it built for customers who never fully showed up. Now, guys, one thing I want to say here. I always tell people I don't do banks, I don't do insurance, I don't do utilities. So, for this company, this is what I really want to teach you. It's not about chasing every stock as an opportunity. It's about understanding what you understand what you don't understand. I don't understand utilities. I'm out. I don't like the world of being like, "Oh, it's regulated. The more money you spend, the more money you can make." Where is the incentive then to spend less money? So, for me, I am moving on from Alliant Energy, not even spending time on it. I will find another company that I like. Now, the third sell and the final stock that analysts are saying Garmin, the maker of GPS watches, fitness trackers, and navigation gear for hiking, cycling, flying, and boating. And here's the catch that lands it on the analyst sell list. The stock has been absolutely on fire, up roughly 45% this year. The bull case is very strong. Garmin is beloved by serious athletes and pilots for its rugged, super accurate devices and great battery life. And it's nicely spread across fitness, aviation, and marine. So, it's not relying on just one product to carry it. Its aviation and marine gear, in particular, sells at premium prices to customers who truly depend on it. Pilots and boaters don't swap out trusted gear on a whim. Garmin also builds most of its own products in its own factories, which gives it tight control over quality. But, here's what has analysts worried. Garmin is up against giants like Apple and Samsung, whose smartwatches plug right into your phone and keep getting better at fitness and health tracking every single year. As those cheaper do-everything watches keep improving, Garmin could slowly lose its more casual customers, leaving it with only the hardcore enthusiasts. And remember, when a stock has climbed this fast, a lot of good news is already probably baked into it. That means Garmin doesn't just have to do well from here. It has to do even better than people already expect. So, let's run it one last time. So, guys, before we get into Garmin, I thought that Garmin was powering Apple Maps. So, I went to our AI and I asked it the question. And AI said, "No, Garmin doesn't power Apple." So, then I thought, "Okay, if the if they can lose the consumer part of their business, how big is that?" So, I asked, "What percent of Garmin's revenue comes from casual consumers versus pilots and boats?" Guys, fitness and outdoors, mostly consumer products, about 61%. Aviation and marine, about 30%. And auto OEM, which means the car kind of GPS and all that stuff, is 9%. So, that 61% is a big chunk of their business that Yeah, I see a lot of people wearing Apple products all the all the way around. So, I get the concern there in the bear market pitch for that. So, let's continue direct God, I love that AI tool. It's so incredible just be able to ask that question right in the software. So, guys, it's a $55 billion market cap business with basically the same enterprise value. Check mark, check mark, check mark, check mark. That is awesome. Essentially means they have very little debt. They generated 1.6 billion in free cash flow last year, 1.07 a year for the last 5 years, selling for 35 times free cash flow. Good returns on capital, not amazing, but good, 11% a year for the last five, but getting better, 13.6 for the last 1 year. And profit margin slightly higher than the 5 and 10-year average last year, 24 and 1/2% last year versus the 22 and 1/2% for the last 5 and 10. So, understanding why is it suddenly jump from 22 and 1/2 to 24 and 1/2? That's a big question to ask. Another thing I love, very little in acquisitions, only 376 million for the last 5 years, and really great growth rate. So, there's a lot of great stuff happening here, guys. I'm going to actually ask the question, how much has their consumer products business grown by year for the last 5 years. Like, I want to see, are they growing their consumer products or are they declining or is just the growth rate declining? This is really important if that's part of the bear case. Whenever you guys see a bear case, dig in some more questions. Remember, investing is simple, not easy. It's simple to sit there and say, "Okay, well, what's the next question to ask?" What And over time, as you watch more videos and get more acclimated to the software, you will see that happening. So, we had 28% growth in 2021, a drop of 8% in '22, increase of 6% '23, and 18%. So, it's still growing, but the question is, is it growing enough or is Apple growing Who knows if they're really losing? Is it growing because of pricing? I don't know. These are the questions to ask overall here. So, let's go check out the eight pillars on Garmin. Shares outstanding are basically even, I'm ignoring that. It's only here on the 5-year PE and 5-year price to free cash flow. As we said, debt was low, revenue is up, net income is up, cash flow is up, ROIC. So, guys, let's go now to analyst estimates. Not much in terms of seeing what's here. They have growth in profit double digits and revenue growth. Wow, look at this, 13.5%, 12.5%, 11%. So, pretty high growth rate for the next 2 years, but not many analysts following them. Only five here. So, we're here. Let's go put our own stock analyzer tool spin on it. All right, guys, and I did a few things different. We saw ample revenue growth for the next 2 years. I only put 3, 6, and 9% for Garmin for the next 10 years, assuming Apple gets more ingrained in people's lives. Next, I got rid of profit margin because it's a lot higher than the free cash flow, and whenever free cash flow, I always revert to free cash flow as my go-to. That's the lifeblood of the business. It's the harder number to manipulate and change. So, I put 17, 18.5%, free cash flow based on their history here. Next, their PE 10 years from now. Guys, they are the leaders in their boat and aviation category, but in terms of wearable, they're not necessarily the leader. So, and they have decent returns on capital, but not insanely crazy. So, I'm putting in 15, 18, and 21. I still think the company, because of their balance sheet, is a better-than-average company in the S&P. And finally, my 9.5% return. Now, as you can see, guys, I've made some pretty reasonable assumptions on Garmin and some of the other ones we've done here, and that's something you can easily learn to do with our stock analyzer tool to save you hours and money. This is why you need it. What you just watched me do on Garmin took a minute, minute and a half, and it told me more about the stock than most people will ever know before they buy it. Most investors would just look at the price, read a headline or two, and made a decision based on that. But guys, that's how you buy a stock and then feel sick to your stomach when it drops because you never really knew what it was worth in the first place. We see a stock price. Haven't you ever wondered, what does that mean? That's what caused me to change my investment. I said, "Well, what does that stock price mean?" The stock analyzer tool is what answered that question for me. I'm putting in smart assumptions about a company's growth and cash flow. You'll put into the same thing and it's going to show you the price where you actually get the return you're looking for based on your assumptions, the number that actually means something. Guys, we've heard from so many of our software and community members and once they became a part of the community, they made a lot less emotional decisions because they had numbers to back them up and people to help them. They drastically decreased the buying on hype and hoping for the best. They know what they own, they know what they paid and they know why. That's what it feels like to sleep well at night no matter what the market is doing. And here's the thing. You just saw how simple it is. If I can do it live right here in a couple minutes, you can do it, too. You don't need a math degree, you don't need a finance degree, you just need the right tool and it's right here for you. So guys, my question to you is, what would you be willing to pay to have peace of mind, to know what a stock price means, to know what you want to pay for a company, to have better understanding and to save you time and money. If your answer is over a dollar a day, which I'm sure it is, then you're in luck. We have a 7-day trial for $7. Click the link below, get full access, run Garmin, run whatever stock you want, as many as you want for the next 7 days and I assure you you will fall in love. So, here is what my assumptions showed me. I hit the analyze button. Garmin is currently at $288 per share. I have a low price of 100, high price of 228, a middle price of 150. Yeah, I agree with analysts. I'm out for that reason. So, that's what the analysts are saying. And now you've seen how we check their work. Whether you agree with them or not or agree with me or not, it's up to you. The That's the whole point. You don't need anyone else's stock tips once you know how to check a business yourself. And if you're hunting for real bargains right now, you have got to see this next video. I honestly can't believe that some of these stocks are selling at such cheap prices. It came out yesterday, so it's ready and waiting for you. Go click right here on your screen. Thank you for your time.