stocks are… UNDERVALUED

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Stocks are the most undervalued i have seen them in a long long long time now with that being said that doesn’t mean every single stock in the entire stock market is undervalued you can just throw money in any stock and you’re gonna make money or every single industry is undervalued that is not the case right now but i am gonna go through a ton of companies with

You guys i’m gonna show you a a ton of companies that are severely undervalued in my opinion and these companies are not like little hitting companies that no one knows about these are huge corporations okay and how do i determine whether they’re undervalued or not by looking at the type of profits they have brought in in the past year and the type of profits are

Expected to make in 2018 and going forward and these companies guys are very well known companies it’s not like there’s some type of hidden ones very undervalued so we’re gonna go through all this by the way make sure you follow me on instagram and snapchat if you have not already the links are down there in the description so before we get into these this massive

List of companies i’m gonna go through with you guys here today i just want to kind of discuss something so people always say well jeremy okay when you start investing 2008 2009 2010 2011 2012 all those years you know your first few years in the market the stocks were much cheaper at that time then they may look at a situation they say okay jeremy stock abc what

Was $5 and let’s say 2011 okay there’s this stock was $5 in 2011 and now in 2018 this stock is $20 so that means that this company is now way overvalued or this company isn’t nearly as good of a deal okay guys here’s a situation the different times mean different valuations for companies right so in 2011 2010 especially 2009 a lot of these companies abc company

They were probably taking massive losses at that time or they were probably in a situation where they were making very very small profits okay meaning their valuation should be far less now if company abc now their stock is that $20 which is severely you know unbelievably much higher than $5 7 years later that could mean well maybe they’re just making a heck of

A lot more money you would look at you company after company the majority of companies are making dramatically more money in profits and revenues now than they were let’s say seven eight nine years ago okay so you’ve gotta value it differently in different times all right just because this stock used to be $5 or $10 or whatever and now it’s you know double triple

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Quadruple that doesn’t mean it’s overvalued or anything like that you’ve got to base it upon what the the profits are right now and what the profits are expected to be in the future well what good is a stock if they’re not making any money in the end of the day right so let’s start going through some of these companies right apple the biggest company in the world

The most profitable company in the entire world guys right now apple has a forward p/e on it of 12.5 12.5 on apple okay google let’s talk about google google a company that is still growing and very heavily this company has a forward p/e of 21 on it right now okay 21 facebook a company that has massive growth potential still in in monetizing an instagram platform

And monetizing the whatsapp platform this company right now has a forward pea under 18 obviously there are a lot of mumbo-jumbo bad news it’s in the media and whatnot the financial impact that’s gonna have on the company is going to be very miniscule long-term in my opinion micron one of the biggest memory chip producers out there this company has a 4 p of six and

By the way that six is not even accurate that’s actually around a four point nine microphone right now guys i’m not a four point nine forward p/e all right kb home now there’s just a home builders in general or trading like we’re about to have a huge recession or something like that or like where we have a bad economic climate which is not the case whatsoever so

It’s like just a few of the home builders kb home trading at afford p under ten we have lenore which is trading at a four p of eight and a half okay century communities trading at a p/e under seven right now under seven a four p under seven toll brothers the creme de la creme in home building is training at a forward p/e of nine hecka quarter their buyers buy all

Cash and the interest rates have almost no effect on that would be those type of people star work solutions okay a semiconductor play one of the biggest semiconductor plays out there so the company has a lot of future in its future and whatnot this company has a forward p/e of 12 right now all right verizon wireless verizon communications a forward p under 10 on

This company right now one of the safest business models out there as a company that pays huge dividends it has a 4 p under 10 jp morgan chase probably the biggest most successful bank in the entire world right they have a 4 p of under 11 on this company right now goldman sachs the best run investment bank in the history of the world and still to this day has a 4

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P of 10 on it right now 10 these valuations are ridiculous in some of these companies l brands the the maker of victoria’s secret in bath & body works and all these successful brands forward p/e of 11 they have a dividend ratio somewhere around 6% right now we have lows lows the second biggest home and hardware store rate has a forward p on it of 13 and a half

Right now these valuations are our ridiculous guys caterpillar the biggest equipment maker out there right now has a 4 p in the 13 range right now deere and company has a 4 p under 13 rates now okay we got to stock after stock are trading at these ridiculously low forward pease they’re trading at forward pease like we’re gonna go into a crash or you know an economic

Calamity right now or something like that and i don’t see that at all at least right now is you know six months from now twelve months from now something like that maybe my mind changes but right now i do not see that type of situation what why would we have that type of situation tax rates are being cut on people that means the average person out there has more

Money to spend okay corporations taxes are being cut where which mean and in a massive way okay so which means corporations have more money to either give to employees give the shareholders do all types of things with it you know invest in the business buy other companies do all these different things right it makes literally no sense why we go into any type of

Crash scenario right now or any time in the near future but yet stocks many of these stocks not all stocks but many of these stocks are trading at evaluations that are like oh we’re gonna have some type of huge situation and the my point is like the debt or anything like that like people want to sometimes bring up the debt all the debt it’s gonna take us down

The debt has been like that for a long long time like like federal debt that’s nothing new guys like that’s been around for a long long time and we just kind of get through it and get through it in situations like that so if i’m looking out the economic landscape the macroeconomic landscape okay no you know i usually like to focus on microeconomics like focusing

On companies but if we look at the macro economics out there i see i see a strengthening economy over the next year or so rather than a weakening economy but yet stocks are trading like we’re about to have a weakening common economy which i just don’t see it all at least for the next year so i’m right now i would say stocks or very undervalued i am a big buyer

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I went from a situation where six and nine months ago if you remember i was like right now i kind of you know back then i felt like we were kind of you know reaching you know a place of fair valuation or almost overvalued valuation we were like creeping up there but then tax cuts came through which is massive in a massive scale that back going through is changed

Everything the stock market dropping since then and then companies just kind of knocking the ball out of the park as far as you know the numbers are recording in things like that i’m looking i’m very very excited about some of my investments and the investments i will be making over the coming months and then that’s basically where i’m at right now but if you look

At that guys those those aren’t hitting corporations those are those are huge corporations guys are trading and have very very low valuations facebook facebook at it at a 1718 valuation i don’t think people realize like like how many people use whatsapp and instagram on a daily basis and how underutilized those those platforms are right now as far as monetizing

It from facebook’s perspective like the the mouth like facebook’s got to be a trillion dollar market cap company you someday probably within the next year or two once all this little mumbo-jumbo here passes it will probably be a multi trillion dollar market cap company at some point in time you don’t just have billions of people using your platform and you’re not

Able to monetize that into a trillion plus dollar market cap like you can run the numbers and it is very very simple guys so i’m you know it’s just company after company apple at a 12 out of 12 for pe right now are you kidding me these you asians are insane guys so net-net i’m a big buyer stocks right now i will continue to be but anyways let me know if you guys

Are buying stocks right now if you’re selling stocks right now i would love to know your guy’s opinion on all this and kind of the moves you’re making out there but anyways make sure you follow me on instagram and snapchat links down there in the description thank you for watching guys and have a great day

Transcribed from video
stocks are… UNDERVALUED By Financial Education

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