In 2024, the stock market has been kind to big name tech stocks — like NVIDIA (NVDA), Microsoft (MSFT), Meta (META) and ServiceNow (NOW) — but we really need to look for new ideas. Search for tomorrow’s stock market winners today.
I publish around 75 stock research reports a month, and I have to say there’s not a lot of new ideas for me to research. Here’s my short list of new stocks that might be able to breath fresh air into a stagnant stock portfolio. Charts are as of the latest quarter, and the stocks have since moved in price.
Dutch Bros (BROS) is a coffee and energy drink chain that operates in small buildings with one or more drive-thrus that people can get their drinks at.
BROS started when two brothers who were third-generation dairy farmers bought a double-head espresso machine and opened a pushcart espresso bar in 1992 on the side of the railroad tracks in the state of Oregon.
The company had its first franchise in 2000 and has since grown into an operation with 831 coffee shops, as of December 31, 2023.
BROS stock could be a nice investment as it continues to expand. I recently added the stock to my Growth Portfolio.
Hims & Hers (HIMS) is an online platform that gives users access to treatments to conditions including sexual health, hair loss, skin care, mental health, and weight loss. The company connects patients to licensed healthcare professionals who prescribe medications on a subscription basis. It is making healthcare easier to access, and is thus disrupting the industry.
It has recently become a stock market leader after it released news introducing a weight loss drug that can compete with Eli Lilly’s (LLY) Mounjaro.
Hims & Hers’ drug is a Compounded Semoglutise as it is a compounded drug (customized medication) of Semaglutide, a glucagon-like peptide (GLP-1) injection that increases insulin levels in the body which decreases blood sugar (glucose).
Since this is a compounded drug, it is not FDA regulated. This Compounded Semoglutise starts at $199 per month versus around $1000 per month out-of-pocket for Mounjaro.
I think the stock should have a Fair Value P/E of 75. Since this company is not making much in terms of profits, the stock has a super-high P/E of 152. Thus, these projections show the stock to be overvalued.
HIMS was recwently added to my Growth Portfolio.
Arm (ARM) architects, develops and licenses energy-efficient CPU products and technology for semiconductor and Original Equipment Manufacturers (OEM) to develop products. It was founded in 1990 as a joint venture of Acorn Computers, Apple, and VLSI technology. The goal was to develop a processor with: High performance, Power efficient, Easy to program, Readily scalable.
Arm is the industry leader in building CPUs, and investors are excited about the company’s prospects in a new Artificial Intelligence (AI) world. Arm processors run AI and Machine Learning (ML) workloads, and it is central in the transition to AI. The new Armv9 is the company’s ninth version of the Arm architecture. It is expected to replace most Armv8 chips in smartphones, servers, consumer electronics and most automotive applications. Chips based on Armv9 can command a substantially higher royalty per chip than previous generations. Moving forward, management expects demand for Arm-based compute to continue across all market segments, especially as AI is deployed in, virtually, all applications.
My Fair Value P/E is 75. That’s a BIG number. I like the “unknown” aspect of future profits. The company might be rolling in the money during the next few years. Still, the stock is WAY more expensive than I anticipated. The P/E is 101.
ARM is on the radar for the Growth Portfolio.
Clearwater Analytics (CWAN) is a software that provides investment accounting for asset management firms. It is a “new guy” in the field of accounting for companies that manage stock portfolios, bond portfolios, and especially alternative assets, which are often difficult to fairly value on a daily basis. Alternative assets have gained in popularity since the 2008 stock market correction. CWAN stock just broke out to a 52-week high earlier this month after the company announced earnings of 25% that met analysts’ estimates. Management upped revenue guidance a little, which impressed investors.
My Fair Value is a P/E of 35, but the P/E is 54 this quarter. I would like to own this stock, but I feel that the shares are pricey right now.
CWAN seems a little pricey with a P/E in the 50s. So I have the stock on the radar for the Growth Portfolio.
