The recent AI-selloff had made valuations for some US companies attractive at this point.

This week, we take a look at some big names where valuations are cheap while it has decent outlook for the future.

Before we proceed, we have some interesting content this week that might change how you think about your portfolio!

Feature Content

Towkay Talk

Stock Rundowns

IPOs

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InvestKaki Team 🤜🤛

Moving on, here are the news that shocked the world…

US-Iran $SPX ( ▲ 0.42% ): Oil markets are in trouble again. The US and Iran exchanged strikes and Trump said that the MoU is ‘over’. [Read More]

Lockheed $LMT ( ▲ 0.96% ): Lockheed Martin is acquiring Ultra Maritime, a naval defense company for US$3.45 billion as demand from Middle East is driving up demand for its products [Read More]

Amazon $AMZN ( ▼ 0.69% ): Amazon is tapping into the bond markets to raise US$25 billion, in what is seen as a surprise. Total bond issuance for the year came up to US$92 billion [Read More]

Levi Strauss $LEVI ( ▲ 1.97% ): Levi Strauss’ results beat expectations. Revenue rose by 8%, while profits are up by 30.3%. The company has raised its revenue projections to a range of 7% to 7.5% [Read More]

PepsiCo $PEP ( ▼ 0.35% ): PepsiCo’s results were mixed. Revenue was up by 6.4%, while profits doubled. Markets expected more, but its domestic demand in the US was weaker-than-expected [Read More]

Here are the news covering the Asia market…

Uniqlo: China is struggling. But Uniqlo seems to be doing well there. It registered higher revenue growth and double digit profit growth, driven by summer clothing demand as temperatures rise [Read More]

Nexchip: Nexchip, a semiconductor company based in China, raised US$891 million in the Hong Kong IPO. Share price doubled to HKD32.20 [Read More]

ESR REIT: ESR REIT is buying five freehold logistics properties in Melbourne for SG$247.9 million, which will contribute 4.3% to its DPU [Read More]

AIMS APAC REIT: AIMS APAC REIT is planning to acquire a property in Western Australia for SG$38.4 million from an unrelated third party [Read More]

Temasek: Temasek;s portfolio value rose by 10% to SG$518 billion, driven by its Singapore portfolio and several divestment gains [Read More]

Hampton co-founder Joe Speiser had three roles budgeted: a data engineer, an ops manager, a PM. $440K. He installed Viktor on April 12. Forty-four days later, none are on the calendar, and 18 of his team work with Viktor daily. His VP: we are editors now, not creators.

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Tony Robbins, ladies and gentlemen.

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Microsoft sells and develops software, devices and recently have become an AI-first company.

👆 What is up: Microsoft has been sold down quite significantly in recent months. Share price is now down by 20% since the beginning of the year. This presents an attractive opportunity to accumulate a blue-chip software company.

💪 Investment Case: Price-to-earnings ratio is trading at 23 times, the lowest it has been for the past 5 years.

⚡ What to be careful about: The AI-selloff is still quite significant as investors are still doubtful of the AI bubble.

❓ Market Analysts: Target price of US$561 with an implied upside of +46%.

Verizon Communications sells communication, internet, technology and streaming products and services.

👆 What is up: Verizon and BT Group are merging their international operations in a joint venture that will generate around US$4 billion in annual revenue.

💪 Investment Case: Currently, Verizon is trading at cheap valuations. Based on discounted cash flow valuation, the company could be 70% undervalued.

Dividend yield is high at 6.7%, providing security to long-term investors, while also outperforming the industry average of 5.7%.

⚡ What to be careful about: Verizon is facing fines from the government, which could incur reputational risks.

❓ Market Analysts: Target price of US$51.69 with an implied upside of +22.4%

Crown Castle operates and leases cell towers and fibre optics.

👆 What is up: Crown Castle has recently sold its fibre and small cells business for US$8.5 billion. It has now become a pure-play cell tower player.

💪 Investment Case: It is the second biggest cell tower player behind American Tower. Its PER of 32 times lags behind its peers’ average of 46 times.

Crown Castle is positioned to benefit from the AI boom as it provides cell tower and internet services.

⚡ What to be careful about: Short-term decline of revenue and profit contribution from its fibre business divestment. AI-selloff affecting AI infrastructure providers.

❓ Market Analysts: Target price of US$99.1 with an implied upside of +29.2%

And that’s a wrap!

Cheers,
James Yeo~