I Found 3 Stocks the Market Is Practically Giving Away Right Now

While everyone is chasing the hottest AI stocks at sky-high prices and valuations, some of the best known companies in America are quietly on sale. We're talking household names beaten down 30, 40, even 50% this year alone. And I think a few of them could be some of the biggest opportunities in the entire market right now. Today, I'm going to show you how we hunt for these deals, share the names we're watching, and then run three of them through our process to see just how cheap they could be. So, let me show you exactly how we look for deals. Because finding value is not complicated. It just takes patience and a willingness to look where other people aren't looking. Here's a simple idea. Most investors chase what is going up in price. They buy the stocks that are hitting new highs because it feels safe and it feels exciting. We kind of do the opposite. We hunt where things are on sale. There are two places we look first. Number one, stocks that are near their 52- week low, meaning that the cheapest price they've traded at in the past year, and the stock price is currently in or around there. Number two, stocks that are beaten up and down big for the year to date, while the rest of the market is up a lot. Think about it like shopping for anything else in life. When your favorite store has a sale, you get excited. You don't wait for prices to go up before you buy. But for some strange reason, when stocks go on sale, people most people get scared and run away instead of getting interested. That fear is exactly what creates opportunity for patient investors who more importantly are willing to think differently. Now guys, I want to remind everybody that based on long-term stock market valuation through the stock market GDP, the 10-year PE, and even the price to sales ratio, the market is very expensive. Guys, this is the S&P 500 year-toate returns. Guys, the top 20 companies, 77.68% is the low of the top 20 companies. Okay, that means the median, which is half are above and half are below, is 102%. The top 50 companies, the lowest one is up 42%. Guys, this is crazy. This is absolutely insane. The number one company is 632% year-to- date, SanDisk. So, these are the top companies. Let's go look at the bottom. So, first off, where do we get into the red on the S&P? About stock number 300. Number 301 is the first time we get it. So, the top 300 com the top 200 companies are positive. The bottom 300 are negative. Let's go all the way to the bottom. Look how bad it is. Into it, a company that I actually like a lot is the number one loser on the S&P 500 this year. Now, a lot of people would sit there and say, "Ah, stupid. How dumb. Into it. This guy's an idiot." Yeah, maybe. or if you look at into its numbers, revenue and profit are going up, price is going down of the stock. Isn't that a pretty good thing? But guys, a lot of big names in here. Salesforce, GoDaddy, Adobee's in here, Door Dash, PayPal, Robin Hood, a lot. Capital One, Domino's. Domino's Pizza is a company that has been on a big surge in the last several years. So, we look at these things thinking, okay, are these companies broken companies or are they just down temporarily because everybody is focused on these companies? Remember, for them to drive these prices up, they probably got to sell other things. What are they selling? Other companies where the perception might be changing. And a lot of people probably look at this, some people are in the boat of this is crazy. Other people are in the boat of Paul AI is different is changing the world. This is fully justified. Guys, there's no doubt. But I want to be clear about something very important. A stock being up does not automatically make it a good buy. And also, a stock being down does not automatically make it a good buy. Sometimes a stock is down because the business is generally broken. The company's losing customers, it's drowning in debt, or it's being replaced by something much better. Our job is to separate those from the ones where the price has fallen, but the business is still strong. The market's perception of the business has changed. That is where the real opportunity lives. A great company temporarily on sale because the market got scared or impatient. The price dropped but the actual business did not. A lot of times the business can get better. Peter Lynch has a wonderful quote where he sits there and says that nothing is better than a stock being down and the business fundamentals are still getting better. That is the true excitement of a value investor. And guys, this is our 52-we low, our near 52-we low page on our software. These are companies that are within 5% of their 52- week low. And it keeps on going, guys. Again, this is a great place to start to look for value. It doesn't mean these are all going to be good values. And this is one of our favorite things that our community does. Every time the market beats a great company down, our members are in there digging through the numbers, asking the same questions consistently. Is this a broken business or is this a great business that's on sale? They share their findings. They debate the bull and bear cases and they help each other think through it. And history shows that in the long run, this works. Look at the top of the year-to- date list. We went through that list. Intel, Micron, and the others were absolutely hated and beaten down not long ago, but they've now come roaring back. Some were some of them up over a thousand%. The investors who calmly look at those names when everyone else is panicking and running for the exits did extremely well. That is the power of hunting where others are afraid to look. The best opportunities almost never feel comfortable when you find them. They feel scary because everyone around you is negative on them. But that discomfort is often the price of admission for the biggest gains. Guys, I want to remind everybody, look at the financial crisis. Everyone was negative on the entire market. But if I showed you a chart of the S&P for the last 26 years going back to 2000, there was one point you'd look at and say, "I wish I'd put everything in at that point." And that was when the negativity and the great financial crisis was at its peak. I'm not saying it's easy. In hindsight, it's easy. But in the middle of it, when you're sitting there and feeling the angst inside and you're like, "Oh my god, this is so gross. This sucks." You want to run for the hills, you want to take your money and say, "I'd rather just keep it." It's another version of this time is different. We have this time is different on the upside. We have it on the low side. Now, guys, like I do in every video, I want to remind everybody, do not take our titles literally. We play the YouTube game. We use our titles that have probably changed several times from the time we posted it to the time you clicked on it. We use it as a way to get people in to then teach them a bigger lesson in there. So, let's look at the deals on the table today. First, the stock sitting near their 52- week lows. Into it, as I already talked about, which is the company behind Turboax and QuickBooks, software that millions and millions of people and small businesses use to do their taxes and run their books. It is down 50ome% this year. Uber, the ride sharing and food delivery giant, is down 14%. and Ulta Beauty, the biggest beauty store in the country, is down over 23%. Now, a reminder, I own some of these names. Never ever buy a company because anybody in the world, including Warren Buffett, owns it. We're here to teach a process that you can apply to your own thinking. All right. Now, there are big names that are simply down a lot to year to date. Salesforce, customer software giant, is down over 31%. PayPal, the company behind that checkout button you see everywhere, is down 29%. Adobe, the company behind Photoshop and PDFs, is down about 30%. Every single one of these is a real well-known profitable business. And I believe every single one of them is still growing their revenue and profit. These are not tiny startups with no earnings. These are established companies that millions and millions of people use every day. In fact, PayPal has over 400 million active users. And every one of these companies is significantly cheaper than it was at the start of the year. We could spend all day on this list, but let's run through three of them right now through our process to see what they look like. So, first guys, is Ulta Beauty. Ulta is the largest beauty retail in the US. When someone wants makeup, skincare, hair products, or fragrances, Ulta is one of the first places they go, both in store and online. They have an extremely powerful loyalty program with tens of millions of members who shop there again and again. The stock is down over 23% this year near its low. So the question is simple. Is the beauty business broken or is this a great retailer on sale? Now remember guys, it is retail and retail has a negative aspect to it and it has been for the last couple decades as online shopping has gotten bigger and bigger. Now I don't shop at Ulta. My wife goes in Ulta and whenever my wife goes to stores that are near an Ulta Beauty, I go in and see it. It's super clean. It's very helpful. And on top of that, you also have to look at the same store sales of any retailer. Same store sales or hey, how are the sales growing in stores that have been around for over a year or whatever metric they use? And Ulta consistently has same store growth, which is difficult for a retailer. So, let's pull up some stats on Alta. Let's pull up the data and see what we can find here. So, first off, the price of the company is their market cap, $21 billion. Now, 25 billion is their enterprise value. That difference there is essentially their debt of 4 billion. Now, guys, a retailer has a lot of leases. That's included in there. And the company last year brought in 1.22 billion in free cash flow. And in the last 5-year average was 1.03. So, their free cash flow is growing every single year. They're selling for 17 times free cash flow. They have a pretty consistent profit margin between 9 and a half and 11% which is great. They got a great gross margin, 40%. That means every extra dollar they sell, 40 cents of it goes to the bottom line. Compare that to a company like Walmart where it's 25%. Now, Walmart is the cheap provider, so I get that. But these are very healthy margins. Another thing I love, very low acquisitions, but look at this revenue growth. 12% a year for the last 10 years, 13% a year for the last five, 6.5% for the last three. That's a combination of sim store sales growth as well as opening new locations. But what I like about Ulta is they're not going crazy on opening new locations. They're not just saying, "Let's open as many as possible." They're being smart about it. How do I know that? Look at the returns on capital here. This tells me they are good at handling the money that comes into the business. When you get high returns on your money, it means you're smart about handle how you handle your money. This is a very important metric for the quality of the business. All right, let's go to the eight pillars here. It's an eight pillar thriller. Now, remember guys, just because it has all eight check marks does not mean it's an automatic decision maker. The goal here is to sit there and look at these numbers and see the story being told. One thing I love, they were buying back a lot of shares as the stock was down because remember their all-time high earlier this year was $715. Their 52- week low, they're currently now at $476. That's a big difference. That's a big drop in a very short period of time. But remember, you're buying a company for the long run. You should look at this as putting it on sale. And when it was at $715 per share, I'm quite sure these two metrics here were X's. When you have a high return on capital business selling for close to teens in terms of valuation multiples, you got to pay attention. And that's what we have here. They have high returns on capital, revenue growth, profit growth, and like I said, the low debt, which is awesome for a company that has a lot of retail locations that they pay leases on. Now, guys, if you're new to the channel, this probably feels overwhelming. I want to remind you that you're not alone in this. I'm here to simplify all this. I'm here to make this easy for you to understand. By all means, if you have a question on something, put in the comments because we look at the comments for things that we need to address in future videos. But on top of that, I've made this very simple by making a key metrics PDF that's absolutely free for you to download. All of these key metrics available to you just by clicking on the link in the description below or in our first pin comment. In a matter of minutes, we will send you that PDF absolutely free. It'll help you while you watch our videos to understand what we're talking about. And it'll also make you probably the smartest person all your friends when understanding investments and you can wow them with your knowledge. And in a few minutes guys, I'm going to go over the price I would pay based on my assumptions for Alta Beauty. But first, let's go look at the analyst estimates. So analysts are sitting right here. They have $26 per share in profit this year growing to $59 over double in the next eight years. Over double in the next eight years, guys. That's north of 9% 89% per year in growth on their earnings per share. As for revenue, not huge, but 12.6 growing to 19.86, almost 20 billion. 4 to 6% a year in revenue growth. So now we have some numbers, we have some story. Let's sit here and put in our stock analyzer tool. Now guys, this first stock analyzer tool, I'm going to be a little more detailed in how I explain it. I'm doing a 10-year analysis. First things first, my revenue growth assumptions. I put in three, five, and 7% revenue growth for the next 10 years. Nothing crazy high, nothing stupid low, just about where it's sang. Next, profit margin and free cash flow margin. I put 9 and a half, 10 and a quarter 11%. Next, what PE would I sign to this business 10 years from now? Well, guys, the market average is 15 to 16. First, you sit there and say, is this a better business in the market? I think yes. So, to me, I go higher than that. How much higher? Well, it's a little difficult because they have really high returns on capital, but it is still retail. So, I'm a little apprehensive. I only did 17, 19, and 21. But guys, I'm not going to lie to you. I think that's kind of low. So, if you came in higher, I wouldn't blame you. If you went lower because it's retail, depends how much lower you go. I get it. But I don't think Ulta's try to be this this business with 10,000 locations and then have problems there. And then finally, guys, what is my desired return? Well, my desired return is not actually 9%. But I put that in here. That way, we can look at the company and say, what is the intrinsic value? What is this business worth to us right now? Of course, guys, you need margin of safety. And that margin of safety is right here when you go with a higher number, but your number and my number are going to be different. That's why I like to put in 9%. I hit the analyze button. The stock's currently at 477. I have a low price of 450, high price of 816, middle price of 610. What this means is based on my middle assumptions, if they happen, I see about a 12% discounted cash flow return based on today. Now, if that's enough for you, I think you should take a deeper look into Alta. Stock number two, Adobe. If you've ever edited a photo, if you ever created a PDF, or you design anything, you've probably used an Adobe product, either Photoshop, Acrobat, or Illustrator. These are the tools that creative professionals and businesses around the world depend on every single day. And here's the beautiful part of the business. Most customers pay Adobe a monthly subscription, which means steady recurring monthly income coming in consistently month after month, whether the economy is good or bad. That kind of predictable cash flow is exactly what makes a business durable. So why is the stock down about 30% this year? Mostly on fears that new AI tools could let people create images and designs without needing Adobe at all. That is the worry weighing on the stock. So, the real question is, is that fear justified or is the market handing us a fantastic business at a discount? Now, guys, I want to remind everybody, I've talked about this in other videos. First off, I own Adobe. Don't ever buy a company because I or anybody else in the world have it. But two, I I've gone to Chat GPT before and asked it to do images, and sometimes it does it. And then later, le real recently, it's been saying, you know what, we don't really feel comfortable doing this. Why don't you go use Firefly or some other Adobe product? It specifically says that about Adobe. Yes. Can can these AI tools do things with the images that makes Yeah, sure. But we've all seen the issues that happen. You've seen the people who say I gave them a picture of the rock and said repeat this image 30 times and it comes out as a completely different person. Ask it to repeat. Now, are these small things for people? Yeah, but you're also probably not even an Adobe customer as it begins with. Adobe is for professionals and we've seen that in the fact that their revenue and profit keep increasing. So guys, here we have Adobe. We have a market cap of $98 billion. That's the price of the company. We have an enterprise values of $ 108 billion. That 11 billion is essentially their debt, guys. They did 10.3 billion in free cash flow last year. Their 5-year average is 8 billion. What I love about this is it's so much higher than net income because everybody else is focused on net income. We as investors look at the free cash flow number and say that's the real life flow of the business. And the company's currently selling for nine and a half times free cash flow on a business that continues to grow. How much is it growing? Let me show you this. By the way, really high returns on capital as well. Look at that. 27% a year for the last 5 years, 38% last year. Let's go to their income statement. Look at this guys. This last quarter they did 6.4 billion. The same quarter last year 5.71. What is that like 13%. And the same quarter previously was 5.18. So a company went from 5.18 billion to 6.4 at a time when people saying the business is worse. Maybe I don't know what the future holds, but boy, they're really handling this AI very well. The number of people buying their products is increasing. If it was going to be replaced, I think AI is going to enhance Adobe. Their Firefly product is probably going to enhance Adobe. That's a very important thing to look at, guys. Guys, let's look at their eight pillars here. Great eight pillars here. All eight check marks. Buying back shares, which I love. Buying back cheap shares. Remember, this company was at all-time high of $700 a share back in 2021. The business is a lot better now. Actually, let's go look at that. Let's look at it by annually. 2021, the business did 15.8 billion in revenue. Now, it's doing 24 billion. That's 50% higher. And the profit was 5.2. 26 now it's 7.21 four sorry 4.82 now it's 7.21 21 also 50% higher. I look at this going the business is clearly better than its all-time high. Can you see my point here? That just because a business price is up doesn't mean it's justifiable. And the same thing happens on the way down. Guys, again, these are all the reasons why I continue to teach here is because people chase price as their reason for being right or wrong. In the long run, it it is. In the short run, it is not. Here are analyst estimates on earnings per share. The news out there is so negative that they have $24 a share growing to $45 a share in the next seven years. Not quite double, but pretty close. Revenue growth 10% 8.7 8.3 13 9 12 3 7 1/2 7 growing from 26 billion to 46 billion in revenue. Again, not huge, but this is a big company. So guys, we have all this together now. Here's what we put it in. I put 369% revenue growth for the next 10 years. Profit margin kind of ignoring free cash flow. I did 37 40 and 43. Keep in mind my middle number of 40 they've been doing for the last 5 and 10 years, but their gross margin is so high. It's like 80ome percent. As they grow their revenue, that margin should increase. Next, what PE and price of free cash flow 10 years from now? I did 18, 21, and 24. And guys, if you went higher than that, I wouldn't blame you cuz look at these returns on capital. They're great and getting better. And then finally, my 9% no margin of safety return here. Now, before I show the stock analyzer results on Adobe, I really got to explain some things to you because Adobe is actually a perfect example of why I started Everything Money in the first place. Here you have one of the most dominant software companies on the planet. They have Photoshop, they have Acrobat, they have Illustrator. Businesses and creatives around the world literally cannot function without these tools. They have subscription revenue, recurring cash flow, and the stock is down 27% this year because people are scared of AI. The stock is down like 70% or something crazy from its all-time high, even though the business is clearly better. Is that fear real? Maybe. Is it overblown? That's exactly what we're about to find out. But here's the thing. Most people watching this right now have no idea how to answer that question. They see the headline, they feel the fear, and they either panic sell or they just freeze. Guys, that is the gap that I built here with Everything Money. That's exactly what I'm trying to get rid of, or at least decrease for you. Inside our community, you get access to the exact same stock analyzer that I am using right now. You can run Adobe, you can run every stock in your portfolio. You plug in the numbers and it tells you based on the fundamentals what a fair price looks like based on your own personal assumptions. No noise, no outside influences, just you and your process. And guys, it's not just the tool. It's thousands of other investors going through the same stocks, sharing their analysis, debating the bull and bear case the same way we're doing it right now. That community is worth far more than any tip or hot take you'll ever find online. Forget about the profit. It's the peace of mind. You can try all of it. the analyzer, the community, the exclusive content. And we haven't even touched the surface on it for a mere $1 per day for seven days. So, click the link on the description below. We will see you inside the community. It'll be the best investment you make today. All right. So, I hit the analyze button on all of my assumptions here. Boom. I have a low price of 375 based on cash flow, high price of8.44, 44, middle price of 565 with a middle return of 22%. Guys, I'm not saying I'm I'm right on Adobe. What I'm saying is if I had 30 stocks where the price potential was this and the revenue and profit are getting better, I would probably do pretty well. Some of them won't work out. Some of them work out better than I thought, but a lot of them will probably do pretty close to what I think. And that's what I'm trying to do here. Third company guys, a lot like Adobe in the fact that it's software is Salesforce. Now Salesforce, they make the software that helps companies keep track of their customers, who they are, what they bought, and how to keep them happy. They are the leader in this space. And once a company builds its business around Salesforce, it is very hard and very expensive to switch away. That makes their revenue very sticky and reliable. The stock is down over 31% this year. One of the worst performers amongst the big software names, but the business is still highly profitable and still growing. Sound familiar? So, is this a broken company or a leader in the market that's on sale? Let's run the numbers. So, guys, here we have Salesforce. It is a $150 billion market cap business with a lot more enterprise value, which means a lot more debt than the others, about $70 billion worth. But guess what? They also generated $15 billion last year in free cash flow and 10 billion a year for the last uh five years which is a lot bigger than their net income. Okay, we have lower returns on capital but getting better which is great. Good gross profit, increasing profit margin but look at this. This is always a question for me. They had 11% a year for the last 10, 12% a year for the last five. Last year suddenly 18.73. Is that a fluke? Is it a one-time occurrence? Is it the new plateau in the for their earnings? That is the question you have to ask when you see these big jumps like this. That's why I put these metrics in here. I want to see how is profit changed over the last 10 years. Now, they've made a lot of acquisitions and their growth rate has been pretty good, but with a lot of acquisitions in there. Let's go into our eight pillars here. We've got six checks and two X's. The two X's are bad returns on capital and high PE, which remember the free cash flow is a lot better. And look at this, that price of free cash flow is almost like Adobe's. It's 10.25. But you got to remember, guys, Adobe and Salesforce are very different. Adobe has a lot less debt than Salesforce does. And Adobe didn't have to make a lot of acquisitions, and they still grew their revenue very sizably. CRM made some acquisitions, but Salesforce is also a lot stickier business than Adobe. It's easy to cancel your Adobe subscription and just find new software. It's not as easy to do that when your entire sales team is built around one software like that. So, let's go to our analyst estimates here. 11.88 per share growing to 24. That's 2x in the next 8 years. Okay. What about revenue? revenue grows from 42 billion to 89 billion in the next eight years as well. So, not quite double. Pretty decent growth. High singledigit growth there. So, guys, let's go to our stock analyzer tool. Here is the last time I did CRM. I did five, seven and a half, and 10% revenue growth. Profit margin, again, I'm ignoring because I really want to focus on free cash flow. I did 25, 30, and 35%. Then 10 years from now, what PE would I send in this business? I put a low of 14, a high of 22, middle of 18. The reason being is even though the return on capital is getting better, it's still very low. So I got I can't give it as much of premium as the other ones. I did put 18 in there in the middle because it is getting better. So hopefully it gets above that 9% mark and keeps growing as time goes on. And finally, my 9% desired return. I hit the analyze button. The stock is currently at 175. I have a low price of 210, high price of 577, middle price of 355 with a 19.5% potential return based on my assumptions above. Now guys, if you want to see every stock that I'm personally buying right now, including 10 names that I believe could be multiaggers from this price, click right here to watch that video because when everyone's else chases the expensive winners, I believe that the real opportunity is often hiding in the names that nobody else wants. Thank you for your time.