0:00 All righty, guys. So, right off the bat here, what are the most undervalued stocks in the stock market right now? In my opinion, well, here's what they are. In my personal opinion, for the Mag 7, the most undervalued Mag 7 stock right now is Google McDougall. Like, Google is very attractively priced. Let me show you how attractively priced this stock is. All right, I pulled up thousandx.com here. I want to show you Google McDoo and how attractively priced this stock is. So, we're looking at a Ford P on this stock of under 20 for Google and all its growth. It's all its great numbers. It just reported a gradea income statement for this company. The numbers were phenomenal. Couldn't have been better really um out of Google. So,
0:47 I mean, you know, I just think this stock is very very undervalued given the the growth this business model has. Now, next up here, uh, I said for big tech, my the most undervalued I can find is AMD. Now, AMD can be a little tricky. And and let me show you how AMD can be a little tricky here. So, if we type in AMD's ticker symbol, we're going to get a Ford P of 47. Now, that looks really high. And you say, "Wow, how could that be undervalued at a forward P of 47? That's like, you know, we can call it like a double up of where the market in general trades at roughly for a forward P, right?" Here's the thing with AMD. one, I expect their earnings per share to be far higher than where Inos are at. So the reality of that 47 FordP is not 47. It's probably about a 35 or a 37,
1:34 maybe a 40 max. So that's first part. Second part is AMD's got such ridiculous growth rates in my opinion going on for the next several years that that Ford P is going to come down dramatically. And even if we're looking at analyst estimates here, which once again, I think analysts are way too bearish on AMD. I don't think the, you know, I think AMD is going to blow analyst numbers out of the water. But when you look at analyst numbers, look at it goes from a trailing 12-month P of 119 down to 47 down to 26. So AMD's profitability is exploding higher. And we're going to really start to see that over the next few quarters, by the way. And so the reality is AMD is a lot cheaper than it looks on surface level here, okay? because that that earnings per share is going to absolutely be booming. Now, next up here said, "My most undervalued
2:19 stock I can find under $10 billion is what is it?" It's cake. Cake. Cake. Cake. You know, I love that cake. And so, here's a deal with cake. We're looking at a stock that's trading forward P of 18, right? So, we're already pretty much, you know, under like a market multiple for the stock. But the thing with cake is I also think they're going to be much more profitable than what analysts have here. So that 4P is actually lower in my opinion than where it's at. But the other thing with cake is they got the next 10 plus years of growth ahead of themselves with North Italian Flowerchild expansion. So the reality around cake is this stock is way way way too cheap given the growth trajectory of the business for the next 10 years. It's not just about like, you
3:05 know, AMD is more of a play on the next few years of a massive growth cycle in AI chips, right? And what they're doing with MI350 now hitting the market and and MI400 next year and then MI500 series after that. That's more of like a next, you know, 3 to 5 year play in terms of kind of thinking about AMD. Cake, this is a whole different ballgame. Cake is really thinking about the next 10 to 15 years in growth opportunity there. So Cake's trading way too cheap here. And then the number one stock I can find in my opinion that's undervalued, that's under a $1 billion market cap is Honest Company, HNST. HNST is an under $1 billion company. And so for that, what I'm going to show you guys is a compare feature here on thousandx.com.
3:50 Right? So, and if you ever want to apply for access to thousandx.com, you can go to 1000xtocks.com and you can apply for access. Uh, but what I want to show you guys here is I want to show you Honest versus their pure type companies like a Kimberly Clark, like a Proctor and Gamble. And since Honest is just getting a profitability, you want to compare these companies really on a price to sales ratio basis. And so what we're going to find here is on a trailing 12-month price to sales ratio basis, Honest is trading 1.36. Uh, Proctor Campbell's trading at 4.4 four and Kimberly Clark's trading at 2.1. Now, keep in mind, honest is growing way more rapidly than Proctor and Gambling, Kimberly Clark, and it's not even honestly close. Like,
4:37 look at the trailing 12-month revenue growth of Honest, double digits, right? Look at the trailing 12-month revenue shrink of Proctor and Gamble and the 12 trailing 12-month revenue shrink of Kimberly the Clerk. Proctor and Gamble and Kimberly the Clerk businesses have been literally in decline, right? While Honest is over here actually growing strong and yet they're trading at a far cheaper price to sales ratio multiple than Proctor and Gamble and Kimberly Clark. Honest is on its way over the next few years to get into that price to sales ratio of let's call it 2 to four which is where it should be long term as long as this is a public company. Now also when it comes to Honest I think it's a great buyout candidate. I think it would be a great like honestly if Proctor and Gamble Kimberly Clark any of these companies were intelligent what they would do is
5:24 they would buy out Honest in the next year. The reason Honest is such an attractive acquisition target is you're getting a great brand that has many product verticals and some of these places these other companies don't compete very strong in. Additionally, you're getting a company that now has very healthy margins and is now standing on its own team two feet when it comes to profitability. That's very attractive. And so what you could do to scale because what you would do with a company like honest if another brand acquired it is you would likely cut some staff because a lot of roles would be like duplicate duplicated roles and things like that, right? So you get more cost out of the business and the profitability of just honest would end up increasing rapidly essentially. Okay. And the other component that I think would be very very attractive for honest
6:10 if you know a company wanted to approach them and go ahead and buy them out is the fact that that company has one of the most pristine balance sheets of any stock you'll find under $1 billion in the entire world. They're cash loaded and they're debtree. So it doesn't get better than that. Now what do I think if if Honest was to sell out to another company? What do I think is a fair price for honest? I would put fair market value at honest as somewhere between and this is right now like assuming let's say somebody tried to buy honest right now. What's the share price they would need to pay today not 5 years from now today? I believe anywhere's between about 1050
6:55 and about $14 is a fair price for Honest if they were to be acquired today, which is nowhere even remotely close to where that stock's trading. That stock's under five bucks. And I think fair market value today if a company want to buy them out would be between $1050 and about $14. That would put their price to sales ratio more in that 2 to4 range given you know the growth the business has given the now getting the profitability you' be able to get cost out of the business you're getting a great balance sheet there you're getting cash given to you for buying honest because they're debtree and they got cash so it's not like you got to worry about like oh you know if you're going to buy out another company and they're debt loaded you're like crap like you know how are we going to deal with this debt load we're buying this company got $500 million of debt
7:41 blah blah blah it's a problem, right? Honest doesn't have that stress-free. So, yeah, we'll see what happens. But honest is definitely very very attractively priced. No, you know, me in regards to Tesla, you know, I was a Tesla shareholder obviously for a long time. It did me phenomenal. Made incredible gains on the stock. Ridiculous, right? And so, what would it take? And obviously now I don't own any Tesla shares. So, what would it take for me to buy Tesla stock back? That's a big question, right? So I put on X. I said these are the five things it would need for me to buy Tesla shares back. I said one I would need to be confident they can grow automotive sales again at a 20% plus KGA car compounding annual growth rate. If I could be confident in that
8:26 then we're talking right as of right now their automotive sales are literally in decline quarter after quarter just going down down down right. So one they need to reverse that and then start growing. If they could do that, then we can then we could talk and then and then if we talk about getting to like a 20% plus cagar, then then we're, you know, then then we're looking good, right? Two, we need major value valuation de decompression here. Okay, which is just a fancy way of saying the stock needs to go down a lot because Tesla's trading at such a ridiculous valuation here. I mean, it's just absurd given how bad the business model is. It's absurd the sort of uh you know it's at a Ford P 196 196 would be completely fine for Tesla if they were growing revenues 50% plus the
9:13 fact is around Tesla the revenues are in decline it's not a debate it's fact like their revenue was down 12% this latest quarter automotive is down 16%. is a dumpster fire and then imagine when all these energy credits get taken away. What's her profitability going to be then? Right? So yeah, I mean the stock would need to go down so much for me to even be interested in it. I said the third thing is earnings per share. I need that to stabilize and consistently start growing. If that can happen, then we can talk, right? And that's a long way from that. Four, gross margins and net margins have to start consistently growing.
9:59 That's a big that's a big question. Like margins have not been headed the right way, right? If gross margins and net margins can consistently start growing, then we're talking and I said Elon has to start stop, you know, quit doing stuff to hurt the brand. He has to stop doing stuff to hurt the brand. You know, he's done a lot. I think this company would be consistently growing if he hadn't said all the things and done all the things he'd been doing the past few years, but he's done it. It's hurt the brand bad. It's reflected in their auto sales, right? Their auto sales are disaster. They're far under like what an average company's doing. And they have such phenomenal products in the market, but if you hurt the brand that bad, you make that many people mad, right? like you know people just don't have a very good feeling around going to buy a
10:45 Tesla right a lot of people and so for that reason it's he's got to completely reverse this I said under $200 is okay for Tesla at this stage like if you can get it at like 180 170 uh under $100 is ideal for Tesla over $30 is a horrible riskreward for the next two to three years so many more attractive riskreward profiles you know the business has just over the past year specifically it's just gotten so bad, you know, so bad over the past year. The numbers are just a disaster. What Elon's done to the brand is just a disaster. Like up until about a year ago, like Tesla still had a good chance of like making things happen, but given Elon's, you know, making so many people
11:33 mad on both sides of the political party, it's it's been ugly, man. and their numbers have just deteriorated and deteriorated and deteriorated again and again and again again. What are you going to do? You know what I mean? Like like I and the the problem is it's just not showing any signs of like flipping the other way. So then you have to count on Robo Taxi. Robo Taxi, here's the issue. It's not as big of a market as people think. It's not. Look at Uber, right? Like Uber, you think given how excited people are about Robo Taxi, you think Uber is like the biggest company in the world? No, they're not. And you know, you say, "Okay, we're eliminating the the driver in the seat." Okay, that's that's cool. They'll make it more profitable, right?
12:18 Over time, but not initially. You could lose money on that business model for years to go in the future. Ask Whimo. Tesla's like, "Oh, no. We're just going to make money." Baloney. That's what they said a lot of times. And then they don't, right? And so Tesla will lose money in robo taxi for likely years to go in the future. people assume they're just going to like launch this thing and they're going to be making so much money. No. No. From what I heard uh I haven't got a chance to listen to conference call. I even heard some people on X, you know, some of the Tesla fan folks uh talking about like uh Tesla's talking about if they have to take out debt, they'll take out debt. What? What? That's crazy, man. Like there's no reason Tesla should have to be taking out debt. The fact that that's even a conversation is scary. Downright scary. Okay, so the moral of the story
13:05 is in regards to Tesla, it's just a very boring blah stock. It's not interesting at all because it's already priced in best case scenarios in so many different ways that it's just not exciting. There's just so many better opportunities out there as for investments, it's not even funny. Never mind if we end up going into a bare market in the next year or two. we go into a bare market in the next year or two, Tussle will get taken to the slaughterhouse so much more viciously than than most stocks out there. It will be nasty. Google McDougall, I'm looking forward to getting this one, by the way. And Tesla, keep in mind from the 2021 peak to the 2022 beginning of 2023 trough, Tesla fell
13:50 about 70%. Folks, keep this in mind. Tussle was in was in way better way better of a financial situation at that time. The margins were dramatically higher than they are right now. The revenue looked way better. The revenue growth looked way better. The profitability looked way better going into 2023 than it does right now. And um everything's way worse. So, what do you think would happen if we got a real bare market? S&P 500 went down 25, 30, 40%. You know, to think Tesla couldn't go down another 70 to 90%. That's that's definitely in the realm of possibility.
14:35 How would you like access to all my best course curriculums? My becoming master the stock market course, my stock market investing mastery course, my stock options mastery course, my millionaire playbook. How would you like access to all my best courses as well as the ability to have access to my six and seven figure plus Discord community where we're constantly keeping in touch with each other, talking about what's going on in the market. How would you like exclusive weekly videos from me? How would you like the ability to see what stocks I'm buying and selling in my $2 million plus Fidelity account? If that all sounds pretty interesting to you, apply to join my private group. that is going to be linked in the description area down there. You can click on that, fill out an application,
15:21 and go ahead, hop on a call with Andre. Andre will walk you through the whole process. He'll walk you through the whole group, and you can go ahead and join us in there. Once again, the link for that is in the description area. Here's a deal with cake. Very strong results last night. They posted B+ income statement here. $955 million of revenue they did versus the same quarter last year. They did $94 million of revenue. Also looks like they had a little an extra day in there last year. No, food and beverage costs actually fell for the company on a year-over-year basis. That's phenomenal. That's a big line item there. That fell to 21.6% of revenue. Additionally, labor expense was a huge that's the biggest category for for Cheesecake. Got to always watch labor, man. Labor fell for them as a percent of revenue, down to 34.9%, which
16:08 means they're operating their restaurants very efficiently. Um, as far as other costs and expenses, that was up a bit for them on a year-over-year basis, and GNA was up just a tad bit, but they are growing a lot of restaurant count right now. So, I'm not surprised GNA grew a little bit there. Now, as far as total cost and expenses went, that was 93.2%. Oh my gosh, Meta. Uh, 90 93.2% total cost and expenses fell to as a percent of revenue versus 93.5 in the same quarter last year. So, that's a good number there. And they continue to expand that number. Income from operations went to 6.8% from 6.5%. Income from operations went to almost $65 million in this latest quarter. If you look at net income 54.8 bill uh 54.8 million for them as far as net income
16:53 goes. Okay. Now uh income tax provision uh hurt them quite a bit in this quarter. That was8% of revenue. So that was $7.4 million hit versus the same quarter last year was only 3.9 million. So they kind of got hit um in a negative way. income taxes. Income tax can move up and down. No. Dude EPS $114 versus8 very strong results. Is this a metatype quarter? No. But is this a very strong results from a very strong company? Absolutely. Now, what makes this even more impressive? Okay, you got to always compare companies versus their peers. So, for instance, look at Google's revenue growth and then look at Meta's revenue growth. They're two kind of peer type companies. Meta's smashing Google. But Google very respectable numbers they had but met that is a whole other level. Then when
17:40 Apple reports tomorrow compare Apple versus Google another great comp and see what the results are and you'll probably find hunch is uh you're going to find Google smashing Apple. Okay. So you want to compare restaurant companies against restaurant companies. So a great comp would be look at somebody like Chipotle. Chipotle just came out with numbers a few days ago. What did Chipotle have for numbers? Right? Their numbers were bad folks. bad. Look at Chipotle. Chipotle's income from operations fell on a year-over-year basis. Fell on a year-over-year basis. Additionally, Chipotle's net income fell on a year-over-year basis. No bueno. No bueno. Cake's coming in with impressive topline numbers here, right? Growing revenue, $51 million in
18:28 the quarter, but they're also coming in and growing their net income in this latest quarter. growing their diluted EPS and growing their income from operations. Right? Income from operations for cake grew to almost 65 million from 58.6 million, right? While Chipotle's over here having income from operations go down from $586 million to $559 here. It was a tough quarter for the restaurant business, the casual dining business, anything you want to throw into that category. and cake came in and they said, "Yeah, it's tough and we're still going to put up numbers." Right? That's big. Additionally, I listened to the the Cheesecake Factory earnings call last night, right? While I was still in Charlotte, North Carolina, banger of a conference call. Go to thousandx.com,
19:15 listen to the latest conference call. Don't just use our AI feature, okay? Our we have our new AI feature, which is phenomenal, right? And it can kind of give you a um, you know, an understanding of what happened on the conference call and the big moments and things like that, right? But listen to full conference call. Listen to the full conference call. You will get educated on a very high level with what's going on with cake. I could not be happier. I could not be happier. Now, something big they did mention on the conference call. This was huge. I thought they mentioned about this new North Talia they opened in kind of like Boise, Idaho area, right? And they were talking about it's like 40% above uh company average for sales for North Italia. My guess is with North Italia, right? And this is a huge expansion opportunity for them over the next 5 10 years. It's
20:01 the second biggest expansion opportunity for them outside of Flowerchild, right? My guess is they're probably getting better about picking locations. And so I think this next group of North Italas is going to be even better numbers than the previous group essentially. So man, I mean just, you know, and with consumer sentiment as bad as it's been, like what happens when consumer sentiment gets good? I mean, can you imagine North Talia numbers then? Jeez. Now, this is cake. Cake's a freight train. Okay, Cake is a freight train. A freight train, it doesn't move that fast at first. It doesn't have the fastest acceleration, but once it gets moving, you look out. And that's what Cake's doing. They're opening their new Flower Childs or new North Talia, their other concepts, and that's just going to continue on, continue on, continue on.
20:48 Um, and you know, we got years of expansion ahead, man. Years of expansion. And so that's why I love cake for I don't just love cake because of what's going on with the numbers short term. I love cake for what's going to happen with this company over the next 5 10 years. It's beautiful. And the best thing is I don't even have to worry about selling cake shares. You know why? Because they pay out those sweet dividends every 3 months. So those dividends come in, come in, come in. Gorgeous. How would you like access to all my best course curriculums? my becoming master the stock market course, my stock market investing mastery course, my stock options mastery course, my millionaire playbook. How would you like access to all my best courses as well as the ability to have access to my six and seven figure plus Discord community where we're constantly keeping
21:34 in touch with each other talking about what's going on in the market. How would you like exclusive weekly videos from me? How would you like the ability to see what stocks I'm buying and selling in my $2 million plus Fidelity account? If that all sounds pretty interesting to you, apply to join my private group. That is going to be linked in the description area down there. You can click on that, fill out an application, and go ahead, hop on a call with Andre. Andre will walk you through the whole process. He'll walk you through the whole group, and you can go ahead and join us in there. Once again, the link for that is in the description area. PayPal. Next up here, PayPal down 9% today. Is it really that bad? Is it really that bad? What's going on with PayPal? Right. So, here's the deal with PayPal. It's actually pretty good. It was a B+ income statement uh that PayPal
22:21 put out here. Revenues went to $8.28 billion from $7.88 billion in the same quarter last year. Transaction expense was hardly up for the company year-over-year. Transaction credit losses, that one was up quite a bit. That was up, you know, we can call it around $140 million. What was that? $141 million roughly there. Customer support and operations actually fell for the company year-over-year. Good. Sales and marketing was up significantly. There's spent a lot of marketing recently. Like lot of marketing. So that expense is really big right now. I think they should moderate in 2026. Technology and development 767 versus 718 million the same quarter last year. General administrative they dropped that significantly. $461 million versus 570 in the same quarter last year. Restructure and other was roughly flat year-over-year. So total operating expenses went to 7 or 6.78 billion from
23:08 6.56 billion. Operating income went to over $ 1.5 billion in this latest quarter versus 1.3 billion in the same quarter last year. Net income went to 1.26 billion from $1.12 billion in the same quarter last year. Diluted EPS went to 129 from$108. That's extremely strong doubledigit diluted EPS growth. And how are they getting that? Well, one, their net income's up quite a bit year-over-year, right? Their net income's up over $und00 million on a year-over-year basis, but look at the share count. Their diluted shares fell to 877 million shares from over 1 billion shares in the same quarter last year. This is a dang good quarter by PayPal. This is nothing to be ashamed of. This is a B+ extremely solid quarter. What
23:55 about the guidance? Well, the guidance looks pretty dang good for the most part. The GAP EPS are expecting a$114 to18 this next quarter. That's versus 99 cents in the same period last year. That's strong growth. Now, non-GAAP EPS is the one number that's asleep. They're expecting a$18 to122 in this this quarter. They're about to, you know, this next quarter essentially versus prior year period$120. So, that non-GAAP EPS for this quarter looks sleepy. But look at the fiscal year 2025 in general numbers. GAP EPS 490 to 505, right? The old estimate was 480 to 495. So, that's a nice up number there. And a prior year period was 399. So huge up non-GAAP EPS 515 to 530 versus 495 to 510 was a previous guide from just last quarter.
24:41 So they're already getting much better, right? Previous year period 465. So really strong guidance here. So what's the issue with PayPal? I'll explain the issue for PayPal. It's a boring stock. That's the issue. The forward P14 on this stock, right? The numbers very strong. balance sheet very good. They're sitting on cash and investment loads to the sky. They're buying back shares left and right to make bank, but it's boring. That's the issue with PayPal. This is no SoFi. People love SoFi. They love buying SoFi stock. You know why? Cuz SoFi comes in and shocks you. SoFi comes in with growth rates that flip your flapjacks, right? I mean, 40% plus revenue. Like, what are we talking about
25:26 here? PayPal's not going to come in with that number. So, PayPal's boring. So, it's a it makes it for a good investment, but it doesn't make for a great It's not like PayPal's not one of those stocks that's like, "Oh, this is a 10x opportunity." Like, "This is an x10x, right?" No. Like, PayPal is just a good solid company that puts up good solid numbers and trades at a 4 of 14 under a market multiple, right? That's the issue with PayPal. So, it is what it is, but the numbers, you can't say anything bad about the numbers, though. That's just bottom line. You can't say anything really bad about the numbers. Like they're all really solid, really good numbers. It's just a little sleepy. So, you know, and sometimes you need some sleepy stocks in your portfolio. You know, not everything's going to be a palenteer or a sofa. That's just the
26:12 bottom line with that, right? There's going to be some stocks that are just good steady risers. And um I think that's what PayPal will do over time, but it's a little sleepy. It's a little boring, right?
