These Stocks Will Do The UNTHINKABLE..

In the trading community portfolio this year, year to date, I am up 109%. Not trading options, not gambling, but finding high conviction stocks that Wall Street is wrong about and putting a lot of money into them. Now, this video is not a recommendation nor a solicitation or an invite for you to put your money into these stocks. But right now, following such a successful year, I'm going to share with you where I think there are opportunities, specifically four different stocks that I think provide asymmetrical upside opportunities that I am currently deploying capital into or plan on deploying capital into at current prices. Not if we get a crash, not if we get a correction. I think these stocks are very attractive today. I will also share with you a couple of stocks that I continue to hold high conviction in that I may or may not most of them I do own positions in that I would buy if we have a correction or a crash. Stock number one is app loving. I think this stock is probably the most attractive opportunity in the stock market right now. This company has 84% gross margins. They are a cash cow. Last quarter they did 1.92 billion in revenue. They brought 1.65 billion of that revenue to the bottom line. Apploven trades at a forward PE multiple of between 14 and 19 depending on where your earnings estimates are with the average being around 15 to 17x and a forward PEG ratio of 0.5. Last quarter, Apploven grew revenue at 53%. And currently, the markets are expecting about 26 and a half% revenue growth for next year. This is not a dying stock. This is a company that is executing at a high level. And there's two reasons for the 50% decline year to date or so. If we just look back at June, the stock was $600, $630 a share. Today it's $268 a share. There's two reasons for that. Number one is pixels. Okay, so I'm going to really oversimplify this, but when an advertiser wants to use the Axon apploven engine to advertise, they need that Axon engine needs to have that company's data, right? So the company will download the pixel and the pixel gives Axon the advertising engine the specific criteria it needs to target advertising for that company. Well Pixel installs went from you know 11,000 to 13,000 in a week and Wells Fargo came out and said that's a false start. That's not really like highra companies. it's a lot of Shopify stores or whatnot. So, the stock sold off on that, right? People got a little optimistic, a little happy. Look at pixels. And then Wells Fargo rained on everyone's parade. Bank of America came out in the last couple of days and said, "No, actually only about 25% of those pixel downloads are from inactive Shopify stores. The rest of them are active Shopify stores." So, that threw a little bit of excitement in the air again. Weird situation there. Well, now we have this Unity situation. Apploven filed a lawsuit against Unity because basically Unity is using a tool to be able to see what the bids and asks are for Apploven's advertising engine. Basically stealing their IP. Unity responded and said, "We will shut down this tool within 5 days." Applo said that's not good enough. We you already trained your algorithms on our information. we're taking you to court. Well, the courts last week said, "No, Unity does not need to shut down this tool, and it could be months before we get some kind of injunction to stop Unity from collecting this information." The question is, is this a long-term problem or a short-term problem? And what you guys have to understand, ever since Apple shut down tracking for, you know, the a lot of companies, it became very hard to target advertising mobile. Well, app 11, they solved that by using AI, using data to predict where and when to place advertisements for different people and different companies, right? But it takes a lot of data. So, AppLoving continuously needs to update their algorithm. Same for Unity, same for any mobile advertising company. Well, it's all about the data. So yes, Unity has a little bit of an advantage here, not over apploven, but to kind of compete with Apploven in the near term, but eventually that will be shut down in my view. I mean, it's Apploven's proprietary data that the courts probably just don't understand that what Apploven was asking for, right? That would be my thought. Courts are not very techinccline these days. Um, so eventually could be a month from now, could be two months, three months from now, six months from now, Unity will no longer have that data and then all of the advantage goes back to Applovin because basically what Unity is doing is they're seeing what Apploven is bidding for ads and rising making those bids go higher and that could compress Apploven's earnings in the very near term. Here's the part though that's important. The stock has priced it in. Okay. The stock has fallen from over $600 a share down to $268 a share in the past four months. You have priced that in. Now, here's the thing. Is it actually going to happen? Do we actually see a material degragation in the fundamentals of of Apploven? At this point, you need to see that to justify a $268 share price. If we don't see big misses, if we don't see big guidance cuts, the stock will rerate to the upside. And that is my view. And that is why I think it's one of the most asymmetrical opportunities right now. But here's the thing from a technical perspective, you could continue to decline. I think there's a pretty hard line in the sand around $200 a share. Do we fall all the way to 200, another, you know, $68 or so per share? We could, but that's not a guarantee. So again, in my portfolio, I like to make large high conviction investments. At $200 a share is where I go all in. Right here, I'm nibbling. I'm buying like five, 10 shares, every time the stock's down 5% on this overreaction. Okay, stock number two here is Zebra Technologies. Now, this is like a barcode scanner company, more or less. If you've ever worked in retail or seen people with those things that kind of look like those yellow, you know, barcode scanner gun things, that is Zebra. Now, what Zebra is doing in the past year or so is they've started to sell these add-on software subscriptions to help automate different processes, right? Predictive analysis, um, automatic ordering, right? If you scan a barcode on a pair of jeans that is really popular that you know maybe you wouldn't know of right away, like maybe this one pair of jeans has sold 30 pairs in the past 3 days and there's 10 back there in the in the back, right? And the predictive analysis can tell you, look, you're going to sell out within two days. We're going to order some now so you don't sell out. That adds a lot of value to companies. And that's one example. There's thousands of examples of predictive analysis and how it can be very beneficial. So, Zebra Technologies has le has long been a legacy hardware business selling the actual scanners. That's how they made their money, right? And that's how they get about 80% of their revenue today. But over time, that's going to really transition into a more predictable, a stickier revenue source, which is the AI add-ons. All-time high for this stock is $615 per share today. Following last quarter, um earnings, the company was like $250 a share. That's where I first identified it. The stock kind of ran away. It went up like 26 and a half% on earnings. They're showing AI results and uh well now it's still up there, but um this is one that I continue to like that I think is very asymmetrical. I don't think there's a lot of downside risk and I think there's a lot of upside opportunity. So, Zebra Technologies trades with a forward price to earnings ratio of about 17. They have a forward PEG ratio of 0.6 and uh management recently raised their fullear guidance this year for revenue growth of 14 to 16%. And next year, you're expecting revenue growth of 6.2% 2% year-over-year, which to me sounds really low. But the bigger story of Zebra is again not necessarily selling a a bunch more of these hardware devices. It is the software side of things. So that software revenue is going to have much higher margins. And that's why the consensus view of revenue growth of 6.2% 2% sounds really low, but that's why the PEG ratio is also really low because this revenue is expected to be more of a software mix and that's going to add more to bottom line profitability. And I think this is a classic example of a company that is pivoting not because they need to, but because that's where the opportunity is, right? This company is going from a literal barcode scanner industrial like company into more of a software company if you will. The multiple should be closer to 20 or 23 or 25 even in an AI world. The company is projected to do about $20 of EPS next year. So if I think the multiple should be let's say 24 minus that by where it trades at 17 today. That's 7 time 20. That means $140 you can add to the top of the share price right now. And I think that's closer to a fundamental valuation. That's uh $375. 515 is more where this stock should be fundamentally valued today. In my view, it's a $375 stock today. So again, $140 of upside that could happen pretty quickly, right? That would bring it just to a more fundamental valuation, let alone the longer term opportunity of automation with AI in the real world, in the real economy. I think this is a classic story of, you know, a company transitioning from one, you know, being a legacy business in one area to more of a, you know, company that deserves a higher multiple, right? Like Apple. Apple historically traded between like eight and 10 times earnings. What happened? They pivoted more into services. Now, the stock trades at like 30 times forward earnings. It did not always trade at 30 times forward earnings for Apple. When it was viewed as a hardware stock, it traded at much lower valuations. I think we're very early in this pivot for Zebra Technologies. And again, this is not a highly speculative company. This is a very mody business. This is not like what you'd call a risky company. Obviously, you know, things can happen, things can change. You know, risk is risk, whatever. If you're buying a stock, there's always risk. But like on a scale of 1 to 10 of of zero being not risky at all and 10 being really risky, this is like a one. This is like maybe a one and a half. So, I like that aspect of it as well as we are in very uncertain times in the markets. Let's let's call it that. Um this company just I I think the upside is asymmetrical to the downside. Okay. Now stock number three might surprise a lot of you guys because it is nothing like stock number one or two AppLoving or Zebra Technologies where just fundamentally with AppLin again it's it's you've seen too much bad news priced into the stock and I actually think the company's going to do very well and that's going to cause the rerating. In the case of Zebra Technologies, it is a company that is literally transitioning from an industrial to more of a software industrial highly utilized in an AI world. Very mody, right? The PE multiple just should expand from here. That's my view. Stock number three completely opposite. It is Tesla. Yes, Tesla forward P multiple of 145. Okay. really high PEG ratio of six. Okay, for next year, PE uh Wall Street's expecting revenue growth between 10 and 14%. So, this is not the company that I think a lot of you guys would have thought, but I do think the upside is very asymmetrical in Tesla. If we just look at what's going on right now with Tesla, they just launched the semi, which is on track to do about 10 billion worth of revenue next year. I think that makes the the revenue growth u estimates that Wall Street has very low. I think Tesla's going to do 20 plus percent revenue growth next year. So, you have the Tesla Semi, you have the Roadster event coming up, you have the Robo Taxi uh service that is expanding very well and likely to expand into another 10 or 20 cities next year. We just got news that Optimus production has 10xed in the last couple of months. They are targeting a thousand Optimus bots per week by the end of this year. That's 52,000 Optimus bots at minimum next year. Could that be 75,000 or 100,000? It could be. That's not the point though. The bigger point is the opportunity with Optimus alone and the markets priced things in ahead of time. So, if Tesla can produce a thousand Optimus bots per week and sell those, like the opportunity with Optimus is in the multi- trillions of dollars. It will be likely the biggest consumer product that has ever existed. And I don't think with all of these different vectors right now with Tesla, the incredible um demand we're even seeing for like the Model 3 and the Model Y, Roboaxi Optimus is priced into Tesla stock at this point. The stock's $370 per share. Um the all-time high is about $500 per share. And again, in the context of what's happening in the broader markets right now, the internals of this market are terrible. like the average stocks in a bare market. Treasury yields have exploded higher and Tesla's a high beta stock. So the fundamental story for Tesla is getting better. At the same time, could we see a market that treasury yields come down? We don't get as many Fed rate hikes. Perhaps the Iran war ends at some point and that could turbocharge Tesla's upside. I think so. And stock number four here is UiPath. UiPath is just like applovening and to a lesser extent zebra technologies. Uh kind kind of like zebra technologies as well in the sense of UiPath is the the dominant player in RPA technology, but it's really not about RPA technology. UPath has fallen from about $19 per share down to $13 per share. The SAS apocalypse fears, you know, keep going back and forth. UiPath is one of those stocks where lately, you know, on any given month, the sentiment can go from UiPath is a big AI winner to they're a big AI loser. And you know, a lot of people after last quarter's earnings were like, where are the AI results? Where are the AI results? But people don't understand UiPath on a deep level like I do. Most investors don't anyways. They're expecting AI revenue to be here, but that's not how this works. UiPath is not a business that a company can just say, "Hey, UiPath, I want to uh sign up for your Like, let's go next week." That's not how it works, okay? It takes a while. You're stringing together sometimes hundreds of different tasks in a business at the same time to come to one result, right? So, and it's happening thousands or millions of times for companies per day. That's the RPA side. The agent side is more about execution. AI agents are probabilistic. So, my view is companies are not going to adopt AI agents freely. You can't do that. It's not possible to do that, right? You need an orchestration platform. You need to be able to provide security, governance, oversight, human workflow integrations in one platform. UiPath benefits when McDonald's adopts AI agents in mass, when Walmart adopts AI agents in mass, when Home Depot adopts AI agents in mass. Yes, these companies have experimented and that's fine if you want to experiment a little bit here and there, but when you're ready to pull the trigger and do this thing for real in your business, you're you're going to use UiPath, right? there there's there's already been thousands of companies that have experimented with UiPath, but it takes a long time to go from experimenting to actively using this technology in a big way. Here's the deal. I believe in the second half of 2027, that's where the Scurve really begins for AI agent adoption. And that is when you're going to start to see AI results at UiPath. and everyone's going to be like, "Oh my gosh, this happened overnight." No, it's happening now. It's just starting now. It it takes time to get uh companies adopting AI agents in in mass. And a lot of companies can't adopt AI agents right now because they have a lot of unstructured data. They have video files next to text files, next to voicemails, next to, you know, images, right? You got to restructure that that data first. And that's why companies like a snowflake and a data dog are benefiting so much right now because they are, you know, where the data is stored and they're helping companies to restructure their data for the AI world. UPath is the end benefit from real companies adopting AI agents. They're not the first company to benefit from that, but they're going to be one of the biggest beneficiaries from that. Now, I also think I will point this out, UiPath is highly likely to be a buyout candidate at some point. UiPath trades at a forward multiple of about 17. They have a PEG ratio of about 1.2. Um, revenue growth expectations for next year sit at about 11 to 13%. I do think, um, no, excuse me. Um, that is for this year. This year, analysts are projecting between 11 and 13% revenue growth. Next year, the company's projected to do between 8 and 13% revenue growth next year, which is is crazy. Um, they're expecting a 10% ARR growth rate for next year as well. And this is this is why the story is so so bullish I think in my view is because next year especially in the second half of the year that's when the actual maestro AI adoption curve begins to inflect higher in a material way. So I think expectations are far too low for next year which is highly likely to be a good year for UiPath. Now, UiPath has some of the best gross margins in the markets period. In the last trailing 12 months, they have gross margins at almost 83%. So, this is one of the most profitable companies in the stock or on the stock market today. And that's that's I think a big question is with AI agents and adoption of the Maestro platform, how are gross margins going to evolve? If gross margins can hold up in the 80 plus percent range and revenue can begin to grow, you know, 20 25%, that's where you're going to see the stock perform very well and really catch a lot of people off off sides. And I think at $13 per share, it is a very asymmetrical upside opportunity versus the downside risk. Now again with a stock like UiPath where you're not really at a mass you know mass moment of AI agent adoption in enterprises there's risk around earnings if earnings are just not good enough people are going to say well UiPath's an AI loser right when in all reality it's just early UiPath is going to be one of the biggest AI winners and benefits 80% of Fortune 500 companies use UiPath for RPA technology ology. A lot of those companies are going to also use UiPath for orchestration of AI agents, but they're not mass adopting AI agents yet. They're just not. It's going to take some time. And I think we're, you know, by the second half of next year, we're going to be about a year into the AI, you know, re AI agent revolution, right? And that's where you're going to start seeing more of this adoption at a faster pace. So those are some of the stocks that I think right now offer the best, you know, riskreward, some of the most asymmetrical opportunities that I like right now. Other stocks that I continue to like, continue to hold positions in, Zeta Global. Zeta Global, a behemoth. And what a company, man. I've I've made videos on Zeta Global before. I was buying the stock around $16 per share. I just can't say it's an asymmetrical opportunity at $33 a share. Even though I think fair value is around $45 or so a share, I think there's upside in the stock still. It's just not it's just not the same calculus, right? After buying so much of the stock at $167 a share, but what a stock. And I believe they have a bright future ahead of them. Rubric, same for Rubric, man. $118 a share. I was buying this stock in the 50s, you know, uh 50s, 60s, 40s even during the SAS apocalypse days. What a company. I think they have upside still in the tank here, but I I just can't say it's like an asymmetrical you, you know, buy right now opportunity like uh the other four stocks that we talked about. Same for ELF. You know, ELF is a stock that I've I sold out of. I bought the dip like crazy in the $50 range. It went up to, you know, 10, it's 105 today. I sold around a 100. I doubled up. I put a lot of money into this stock. I just don't think it's an asymmetrical opportunity at this point. But if there is a correction, if the stock does come down, just like Zeta Global, just like Rubric, I think what what a great company. Another um asymmetrical company. I actually think this one is a really good buy right now as well. Royal Caribbean. You know, this stock recently hit 220. I I you know, we were buying that dip at the literal low in the trading community. I mean, it's now 277. Markets realize what a stupid overreaction that selloff was. It's back to 277. I think it's still a great buy, but it's not as much of an urgent, you know, buy like it was at 220. But what a solid company this is for the long term as well. also pays you a $6 dividend per year, which is about a two and a half% dividend yield. I also think that Reddit is one of those companies that could also turn into an asymmetrical opportunity. I think it's roughly fair value today roughly. Um, but if the stock again does come down to like a $100 a share or maybe even into the 80s, I think there's a lot of support right at about $80 per share. that would be um what an incredible opportunity that would be. Let me just put it to you like that. So, let me know your thoughts on this down below in the comment section if you guys want to come trade and invest alongside of us. There is a link down below in the description of today's episode for that one. Again, not a recommendation. I am not a financial adviser. I'm not a financial planner. This is kind of how I'm looking at the markets. I'm a little, you know, when when I find opportunities that don't come around all too often, I will put 20 30 plus percent of my portfolio into a single stock. That's not what the average person should do. But I think I think being diversified is one of the biggest scams in the world. If you're trying to make a lot of money, if you just want some money for retirement, great. Diversify away. But if you're trying to make $10 million in 15, 10 years, five years, whatever your time frame is, being diversified kills you. And instead, you have to look for these high conviction asymmetrical opportunities. And that is what we are doing. If that fits your narrative, check that link out down below in the description of today's episode. Hit the like button, hype button, and subscribe button if you guys have not done so already. Have a fantastic rest of your day. Go Lions, baby.