3 Stocks to Buy Today Near 52 Week Low?

Guys, three companies with minimums of 52e. I love two of them and I will buy them soon. The third one is a little difficult, but let's get into it now. The first stock is Nike. Guys look at Nike all time high of $93.60 from $179. almost a 50% drop from the all time high if I had told you a company like Nike would have fallen almost 50% at the last all time high on November 5th of 2021, so it's been almost three years, two and a half years. since it has been at its all time high and has done nothing but go down, how would that have felt, would it have been hard to feel, there is no way that is going to happen, something is not going to drop, we hear it all time, but Nike is a great company, a great clothing business.

I think they have a lot of control in the market and here are some statistics that I'll show you that prove that now, obviously, Nike dominates the shoe market. Guys, this is Nike versus Puma and Adid. From 2010 to 2022, their annual revenue is only based on air, only on footwear, just look at this growth at Nike, look at Adidas, it's been increasing, but it's been decreasing lately and Puma has been increasing, even Puma has started getting the basketball shoe. market to compete with Adidas and Nike and all these guys, but Nike dominates this. Nike is look at this, the other two combined earn around 18 billion in 2022, they earned 29 billion, more than 50% more than the other two combined, does that mean they are going to stay like this forever no, but they have such dominance in the footwear market, they have Jordan, they have LeBron, I need to say more literally, I need to say more side note LeBron is the goat, however there is more to do With Nike even on the apparel side, let me show you that this is Nike versus Puma and Adidas on the apparel side in terms of revenue, not as strong as on the footwear side, but still more so and the other two combined are about 12.4 billion, the other two. combined and they're at 13.6, so Nike is still dominant there and still has a nice upward trajectory in its apparel business.

Now let's go over some other statistics before we get into more information, so the company has a market capitalization. of $142 billion, that means if you bought all the outstanding shares you're spending 142 billion enterprise value 155. That difference is essentially the net debt of all the cash of $1.13 billion and, guys, your free cash FL last year it was 6.2 billion in the last five years. was 4.5, they can easily afford it from a debt ratio compared to their free cash flow. They have a 1.5% dividend that eats up $2 billion of their free cash flow. Now, guys, keep in mind that we like the fact that your free C paid its dividends. is less than half its five-year average of $4.5 billion in free cash flow.

Another thing I love is Nike's gross margin of 44.3. If you notice that lately Nike is trying to sell more and more direct to consumer, in fact this is the number of stores that Nike owns globally, as you can see they are actually decreasing, it started at 674 in 2009 and gradually grew and now it is in a downward trend. I guess Nike will probably continue to slow down, they've already taken a lot out of Foot. Locker and other stores will try to go direct to consumer with more personalization, allowing them to have a higher gross margin. Speaking of gross margin, let's see if there's any difference in your gross margin lately.

This is Nike's gross margin. The margin goes back to 1990, as you can see a little choppy here, but over the last 10 years or so it's been pretty consistent between let's call it 43% and 46 or 47%, so it's very consistent in that range, does that mean can't go? Major no, if you are making your own stuff and doing it direct to consumer, remember that gross margin is basically taking your sales, your revenue, and removing the direct costs, so that would be things like direct material, direct labor, shipping. of any taxes they pay, any direct marketing costs. Be a part of that too, okay, that says they get 45% of every sale and they can go to the bottom line.

Well, you'll pay the overhead before the bottom line. Well, now talking about the bottom line, they have been pretty consistent over the last five years. The trailing profit margin was about 10.7 last year, 10.1, so they're selling for 27 times last year's earnings and 23 times last year's free cash flow. Is very good? I don't know because, Nike guys, I think Nike is great and we. We're looking at the eight pillars here and the only X's we have are the five-year PE and the five-year free cash flow price. I think Nike deserves a premium. The historical average of PE and free cash flow price over a year is 15.

Shouldn't you pay more for Nike? This is a high-quality business that has a lot of staying power. Imagine a world 10 years from now where Nike didn't exist or Nike was a fraction of what it is

today

or someone else is overtaken. It's not impossible man, they have such strength and they have Michael Jordan for life, they have LeBron on a lifetime contract and they will continue to add more people as time goes on, guys only under the Nike brand, not including the brand Jordan, only Nike. brand we have LeBron we have KD we have Giannis we have John Morant if he stays out of trouble we have Devin Booker now under the Jordan brand you have Chris Paul Zion Williamson Luca donuk and Jason Tatum these are great games I mean look at the Brand Jordan Zion Luca Jason Tayton these guys are young these guys have a lot more basketball to play that's what's amazing about them Devin Booker huge basketball potential this guy is just getting started with the regular brand Nike they have control of the basketball market and We will continue to be aggressive and forget about basketball.

Yes, they gave up golf, but they are huge at tennis and are growing even bigger in college sports. In fact, my alma mater, the University of Michigan, was the first team to sign with Jordan Brands. for their soccer team, so there is a lot of potential for Nike in the future and there are still a lot of international things to do. Soccer teams are growing. Basketball. International baseball. International soccer. International. There's a lot of potential here, so let's see what the analysts say. This potential, so the analysts are expecting earnings per share of $3.62 this year and it will hit 633 in the next four years, that's double-digit growth every year and again, guys, it's the analysts, so They have to question their motives and incentives a bit, but it still gives them something. type of guidance and revenue increases 52.3 billion to 71, that's six 8 10 and seven single digit growth so high that guys, we don't need 20% growth to make a good dollar, you just need to pay the right price, now remember reason I like to look at 52: we're at the lows, it's a good place to start to say where sentiment has changed about a company because remember the news follows the stock price and this is a Nike company right here, where if you bought it at the top right here of 179 you're probably like, oh boy, what's going on here, guess what every time you buy a company, you're not going to buy it at the bottom, it's going to be very It's rare for that to happen, okay, okay, the big key in investing is this. you have to have the right fundamental process along with the right emotional mindset.

I used to think it was 90% fundamentals, 10% emotion and mindset. I was wrong, it's a change if I had the Albert einen of the fundamentals there and they didn't have the emotions. They are screwed, they will not do well investing, they will see their

stocks

fall because the market has changed, the news follows the stock price and not the other way around, so although the fundamentals are improving at Nike, I guarantee that the sentiment that exists You are negative towards Nike because Mr. Market is telling you that this stock is worth half, is it really worth half?

Of course not, Nike is going to be around for a long time and they will likely boost their revenue and profits for a while. a long time in the future, so if you pay the right price for the company, then you can sit back emotionally and say, I like Nike through the ups and downs and let it see how it works and compounds and makes you more money each time. great investment in history has learned through heartbreak, like me. I'm not saying I'm a great investor, but as I am, as I have, as Warren Buffett, as Charlie M, have learned that buying good businesses at good prices can compound and make you a lot of money, much easier, it's hard to see. a company falls, you worry and you're there alone, sitting, saying if the company is going to stay without looking at all the bad things there are, the news is better when it's bad, that's why I created this community.

I wanted a place where mental investors could go and talk to thousands of them in the community every day and when they're worried, they have conversations, they understand what they're buying and why they're buying it and then why they hold on to it. ? The key to any successful investment is a good emotional mindset and that is learned over time and that is why the community is here, so if you want to start making less emotional decisions that will help you make more money and sleep better at night night click the link below sign up for our community guys we have a weight list coming up so make sure you sign up before the weight list starts so you may have to wait a little before entering .

It costs $7 for seven days. a no brainer so go look at that guys now the question is what is the right price to pay for Nike so let's look at the last time I did Nike in our stock analysis tool. The history makes it nice and easy. Alright guys, 10 year analysis. I have low and high middle assumptions for my number one, three, five, and 7% revenue growth line. 5% might actually be low, but I'm okay with that. I want to be a little conservative, but not too much. too conservative profit margin is very consistent look at this profit margin 10.4 in the last 10 years 10.7 in the last five years 10.1 last year I actually put 10 11.25 and 12.5 now actually I'm going to change that to 11 because I think I can still get a higher margin, but I don't want to rely on that necessarily and I'm going to keep the same for the free cash flow 10, 11 and 12%, even though your profits have been a little bit higher than the free ones. cash flow, but it's not astronomical now, what is the PE and free cash flow price that you think Nike should sell at in 10 years?

The market average is 15, but I don't think Nike deserves a market average. I think it deserves a premium. what is that premium, that is the art of investing, everyone has a different opinion on our next venture. I will talk about that and what I saw on the Internet and I see that this is going well. I think Nike is all day 20 side high 26 medium 23 multiple I I'm okay paying so much money for Nike and finally my desired performance, what performance do I want? Well, I put 9% here, that's basically the market return. Remember that this has no margin of safety and you need a margin of safety because the valuation is imprecise. art, we don't know the future and humans make mistakes, so this price, these prices that come up are before the margin of safety, but you could be fine making 9% just with Nike, so I hit the analyze button, my prices they are a low of 61. a high of 120 average price of 86 my watchlist price is 85 when it reaches 85 I will start selling puts at lower prices stock number two Starbucks Starbucks guys great company 8569 all time high from 126 in July 2021, so again Over two and a half years, almost three years and we still haven't seen an all-time high.

This company has an amazing return on invested capital, meaning they earn a high return on the money invested in the business. High Dividend Yield Compared to Market 2.5% have free cash flow of $4.4 billion, a five-year average of 2.8, but here's the deal: Their dividends eat up much of that cash flow. five-year free cash flow, so it's a little high now if this free cash flow occurred over the last year. can sustain itself and continue then that should be fine, it's still above 50% but as they grow that might be fine now. I continue to believe that Starbucks has many opportunities for growth.

Another thing I like about Starbucks last year same store sales were 8%. This means that if the stores have been open for 12 or 18 months or more, they still grew by 8% because remember, guys, you can open a thousand more stores and increase revenue that way, but if each store that is open decreases in the income, it's masking the problem, that's why you look when it comes to many locations, same store sales now at 10K, if you're reading the 10K, it's often called Comparable Store Salt, so look for those in a 10Kas you read them and don't forget about our software, you get the 10K here on the bottom right, you go into the annual reports, it takes you right to the SEC website for Starbucks and it goes from there, so here are some stats on Starbucks, first of all, are the gross margin as we saw it.

Nike, this goes back to about 10 years ago guys, it ranged from 21% to a high of 31%, which is a big range, but your average has been right here, 28%% is okay, not bad, maybe Maybe a little lower than that, but that's their range. in terms of gross margin and the gross margin is going to drive a lot of the profitability now here are these stores by country the United States is the fairest here 16346 these are the Starbucks store's own stores these are the 100% China licensed stores are all owned by Starbucks Canada, the vast majority, Korea, Latin America, all licensed agreements, Japan, all owned by Starbucks.

I guess you need to determine what the profitability is based on a licensed store versus Starbucks ownership. I guess a Starbucks property has a higher return on the bottom line. gross margin on the license, but it will be interesting to see what their plan is in the future: will it be more corporate owned or will it be more licensed, but I also want to point out that there are many countries here that are still expanding their footprint in the world and becoming more and more rich and Starbucks will be there. I'm interested to see how many Starbucks there are even in Africa, so guys this is Wikipedia and it's February 2024 Egypt has 66 South Africa has 54 Morocco 9 Tunisia one which is a total of 130 stores in Africa, guys how many people are there in Africa, They will have many more stores as economies grow much more in Africa. potential there and they have an established brand that they can build on, alright guys, let's go look at some other things at Starbucks, check this out.

Revenue growth over the last eight or nine years 19 2 21.3 22.4 24.7 26.5 falls during covid to 23.5 29 32 and 36 significant growth lately this company continues to grow and is a company so big that there are many store locations now let's look at the eight pillars, all right, a lot of debt. I agree that it is the retail locations that are Primo locations. I'm fine with that, I don't even worry about this, but the five-year and five-year price free cash flow remember, they're growing their cash flow, their P, and their earnings quite a bit, so now it's going to fall very dramatically. What do the analysts say?

So like I said, I said they're going to grow their earnings a lot, expected to be 420 this year, hey, $420 up to $84 over the next four years, that's almost 100% growth in their EPS over the next four years. and look at that 19. 17 16 20 177% growth and earnings per share according to analysts and for W Revenue actually High single digits 40.2 billion to 59.1 6 high digits now again, these are analysts, so keep that in mind, but let's see how much Starbucks is worth to us, right? Now, we stopped at Starbucks the last time I did. I like these guesses guys, I'm not going to talk about them in their entirety, but you can pause the video and check them out on your own, but I have a low price. of 67 high side 140 mid price 100 is enough a discount $99 versus the current price of 85 is enough a 15% discount to my intrinsic value not necessarily yours but mine that's part of the art of investing it's up to you Decide what It's the right thing for me.

How much am I willing to pay for stock number three in this company? Apple is at 168 after an all time high of 199 rates, the 52p low is 161 or 162 so we are within 5% of that 52. - we are low so please pay attention to this company Apple just from being overtaken again by Samsung Samsung remained the number one phone maker in the world for 12 years and lost to Apple last year Apple has now had a drop in sales Samsung got it back again So this back and forth isn't really a back and forth, Samsung dominated for 12 years, so that's the key here.

Now I look at Apple and I look at this free cash flow ready last year $106 billion, Jesus Christ guys how many companies even make 106 billion? many companies even worth 106 billion generated $106 billion in free cash flow last year, the average for the last five years is 90, so there is not much growth in that free cash flow, however You look here, they have a gross margin of 45%. starting to do more on the business services side of their business trying to grow that part as they grow Services Services tend to be high margin why you don't need to create a product to provide a service, it's more a service then it can be done on the internet and the margin is very high so I guess it is possible that this 45% will be reduced due to hardware which is actually well known and it is possible that this will continue to increase as the services represent an increasing percentage of the company.

Revenue, as I was saying, look at the last 10 years, this is Apple's gross margin over the last 10 years. It started around 38% and has gone up to 45%. Now let's look at their services. Revenue as a reflection of its overall revenue iPhone sales in 2013 91 billion Services 16 billion 2014 102 to 18 let's focus on Services 16 billion 18 billion 20 24 30 37 46 53 68 78 85 went from around 17 or 18% of sales to now 40%, so how does that compare to overall revenue? Well, let's take a look at Apple's overall revenue and compare it in 2013. 2013, let's pull out the income statement in 2013, the total revenue was 171 billion and their revenue here in Services was 16 out of 170 billion captured 9% is a little over 9% well not bad now in 2023 85 billion and what was our revenue in 2023 $383 billion so 85 divided by 383 billion is about 22 to 23% let's take it out the exact number Please note that the exact number is 22.2% so it has increased quite a bit and these services as I said will add more to Apple's bottom line as you know Warren Buffett and Burkshire own Apple and have been buying it as time goes on.

Since the price makes sense, the question is what is the right price for Apple. Let's take a look at analyst estimates. First, let's quickly look at this for this company. It still shows between $673 and $10 still high single-digit earnings per share growth. Well, revenue growth. In fact, I'm surprised to see them showing up across the board between 3% and 133% over the next five years. So how much is Apple worth to us? Well, I'm going to check out my stock analysis tool. I'm going to turn to Apple now again before I get into the numbers here, they're back here right now, check them out remember guys, the fundamentals will get you into a company, the emotional journeys will keep you in the company so you can compose and You need to be able to handle those emotions and that can absolutely be taught, and especially if you're in the right community of people, show me your friends, I'll show you how you're going to turn out, so if you want to be. a stable emotional investor, click the link, sign up $7 for 7 days, get there before the weight list starts, here are my guesses for Apple.

I'm going to change this a little. I'll go to three, 7 and 11% even. although I think that's absurd for 11 our prices here a low price of 90 to 105 a high price of 275 to 300 a mid price of 157 to 173 again there is no margin of safety at this time you could really buy it if you want to do a little better than the market potential of 9%, but guys, thank you very much for your time and watch the following video on the 33 companies that I want to have in my portfolio.