5 Best Stocks To Buy Before The End of July 2025

Profit Playbook
11 followers
1 Video View·Jul 19, 2025
Earnings season is heating up, and I broke down five major companies reporting soon—Amazon, Tesla, Southwest, PayPal, and AMD—to see which ones actually make sense to buy right now based on fundamentals, not hype. I walk through the numbers, show how price and value often disconnect, and explain how emotional trading turns investing into gambling. My goal is simple: focus on long-term value and avoid overpaying for even the most exciting stories. Whether it's Amazon’s spending spree, Tesla’s narrative shift, or Southwest’s beaten-down margins, I show you exactly how to analyze each with realistic assumptions and a margin of safety.
Earnings season is almost here and five major stocks will drop their reports
before July ends. The big question a lot of investors have is,
do you buy now and hope for a breakout or do you wait? In this video,
I'm breaking down those five stocks with potential to rise post earnings,
but only the fundamentals versus the price lineup. So let's analyze them together
and figure out which ones are worth buying at their current price. Look,
I get it. Earnings reports can feel like a jackpot moment. People love them.
They sit there and say, Oh, what's going in them. You've heard the hype.
You might have seen a stock like meta jump 30% after hours. Suddenly you're thinking,
should I buy the next stock report earnings and cash in as well? Remember for every meta,
that's up 30% after hours, there's a Netflix that's down 20% in a single day.
Just a couple of years ago. This is exactly why you don't treat the stock market like a casino.
When you buy a stock, you have to pretend that you're buying into a business.
You're not betting on some ticker going up and down, flashing green, flashing red.
You're buying a piece of this business. And time has proven that those who are patient
and ride the ups and downs do better in the long run. And it's not even close.
So in this video, I'm going to show you the five companies reporting earnings soon
and the real reasons why you, why you might want to own them earnings pop or not.
So let's focus on principle driven investing, not speculation. Amazon 4 0 5 PM, July 31st,
they are going to report estimates as of right now, our revenue of 1 61.78 billion
and earnings per share of a dollar 31. Keep in mind guys, analysts will make their changes all
the way up to the day of reporting. So this number that I'm mentioning now could change.
Now, is it going to change dramatically? Probably not. But the point is you've got
to understand that these things do change. Now, Amazon's interesting because the company
that couldn't miss on its stock up until 2021, it's only up 44% in the last five years.
In fact, it was basically even earlier this year for the last four years. Now,
why is that interesting? Well, the reason it's interesting is let's go look at these
financials. The reason it's interesting is in 2021, they did 470 billion in the last 12 months.
They've been 650 billion. That's a big increase. Let's go look at profit 33 billion versus 66
billion. Exactly double it. If the stock is flat. Why? Because the fourth tenant of our principle
driven investing. In the short run, stocks are a voting machine. In the long run,
they're a weighing machine. This is very popular by Warren Buffett. And what it means is the short
run, we don't know what's going to happen. People are going to be emotional up and down on a stock.
If they're euphoric about it, the stock will likely go up. If they hate it, the stock will
go down. But what happens to the fundamentals? And the goal here is to buy when price and value
are disconnected. When value is above price. That's all we're trying to do as value investors.
That's it. You're trying to buy something at a discount. If you don't believe in that,
what are you doing? Just stick to your dollar cost averaging then, which we'll
get to in other videos and in this video. Now the spikes sound obvious if you've been watching it
for a while, but it's important for new folks to hear all of these metrics. So let's go through
some of these metrics here on Amazon. $2.4 trillion market cap, 2.64 enterprise value.
That difference is essentially their debt of $300 billion. That's a lot, especially considering
their free cashflow in the last year was 20.8, which is very disconnected from its net income.
So why does that matter for those of you who are new? And for those who've been around for a while,
it's good to repeat these. When free cashflow and net income are drastically different,
you've got to ask the question of why. That's usually an indication of there might be some
numbers going on here. For Amazon, I'm not worried about that. We've all seen on their
cashflow statement where they talk about their capital expenditures, look at how much they've
increased. Capital expenditures were only $17 billion in 2019, $83 billion last year, $93
billion in the last one year. They are spending like crazy so that you can get your goods and
much faster. Jeff Bezos has done a great job of saying, I don't think two things will change as
long as we go. People want things faster. People want things cheaper. That is Amazon's goal.
Now, going back to the metrics to understand this better. One thing also, guys, we've got
community members who voted on what they think. We have between hold and a strong buy here. Nobody
has Amazon as a sell, but if you're in the community, you're part of our software, please
go in there and vote on what you think about Amazon here by voting below. Okay. Now, a couple
other things here. Return on investment capital, not the best, but it's Amazon and they're investing
a lot of money and eating up that cashflow to make the business better. This is something I
did not understand about Amazon years ago. They do a great job of this. Gross margin skyrocketed
49%. It used to be much, much lower, but they're reporting different numbers now,
and their profit margin is starting to inch up. Remember, Amazon web services is their
server business and it's high margin and they are the leaders of the pack.
So let's go look at the eight pillars here. The eight pillars aren't great. We've got five X's
and three checks. If you're Jeff Bezos, these are the three checks you probably want. Revenue growth,
net income growth, cashflow growth. Yes, shares are up a little bit, not a big deal. Yes, the PE
and price of free cashflow for the last five years are bad, but they're growing it like crazy.
I think they're the largest massive growth machine. I mean, they're still trying to grow
like crazy and they're almost a two and a half trillion dollar company. That's incredible.
So you've got to remember that there's still potential growth in that earnings per share as
they become bigger and don't have to spend as much on growth. That will happen. And their free cash
should catch up to that. Unless of course they're manipulating numbers, which I doubt, but let's go
see what analysts think. Analysts think they're going to double their profit and earnings per
share in the next four years. 20%, 17, 22, 26, and 22%. That's a lot of growth guys for a company
that big. And their revenue, high single digits, 8.9, 9.5, 10, 11, 10. That's a lot of revenue
growth going from 700 billion to $1 trillion in revenue in the next four or five years.
Now, how's the story sound? Story sounds incredible and that's what's awesome. But remember,
the fifth and most important tenet of our principle-driven investing, a great story
can become a bad investment if you pay the wrong price. I cannot stress this enough.
This is what differentiates investors from speculators. Amazon is a great story. Amazon
has a lot of great potential. You pay the wrong price, which a lot of people got away with for
a long time because of such a bull market, you can end up getting caught. And that's what our
stock analyzer is here to do. Our stock analyzer is exactly here to merge the stories and the
numbers together. It's really important that you make good assumptions. It's important you make
low, middle, and high assumptions because that's what valuation is. We don't know the future. We
have to sit there and make guesses on what the future holds. So if you're part of our community
and using the stock analyzer like it's used over a million times per year, you've gotten used to
this. Low, middle, and high assumptions. The key there is to be realistic about those.
So let's look at what I did in the past for Amazon and see if it still applies right now.
I did a 10-year analysis. I did 4%, 7%, and 10% revenue growth. Now, analysts for the next four
years have around 8% or 9% revenue growth, so I'm comfortable with this 4%, 7%, and 10% for the
next 10 years. Profit margin. Now, guys, this is where it's hard because we've seen that Amazon
has a lot of potential and driving a lot of profit there. The question is, when they haven't done,
10% only happened one time in their life, and that's last year. So the question is 6%, 9%,
and 12%. If I saw somebody put 8%, 12%, and 16%, I'd be like, okay, I could see that happening,
but do we know what happened? I don't know. That's what's hard about companies like Amazon
that spend so much money on growth. You have to sit there and assume what's going to happen
to that bottom line after they're done spending all that money on growth. They spent $93 billion
in the last 12 months on capital expenses. That's to grow the business. What's that going to lead
to on the bottom line? I don't know. That's what's hard. PE, price to free cash flow. What's
it going to be in 10 years at the end of this analysis? I put 20, 23, and 26. Is it accurate?
I don't know. If somebody said to me, no, Paul, Amazon's insane. It's got to be 22, 25, and 28.
Makes sense. I don't blame you. That's why having this tool at your fingertips is so valuable for
people. They can put their own numbers in. Now, I'm going to do a desired return of 9%.
Now, the reason being, guys, is 9% is kind of like saying, what's the market return?
What's the intrinsic value of the business based on these assumptions? This 9% does not mean it's
the price you should pay. Guys, if you're only going for 9% or 10%, buy a low-cost ETF. Don't
deal with the hassle of worrying about a company. In order to buy a company, especially one you're
making assumptions about for the future, put in a margin of safety. Increase that desired return.
What number? Everybody's different. For me, it's about 12% or 12.5% for a company like Amazon.
But let's figure out. Let's hit the Analyze button. The stock's currently at 219. I have
a low price of 71, high price of 275, middle price of 150. So guys, it seems a little rich
based on today's numbers, but I also might have been too conservative above. This is what makes
investing in art. Stock number two, Tesla. Now, we first did Amazon and talked about how Amazon
stock has basically been stagnant for four years. Guys, Tesla was the company that everybody looked
at me and said, Paul, you don't get it. Elon Musk is a genius. I'm never going to bet against Elon
Musk. Guess what? The world hates Elon Musk right now. I was in California a few months ago. People
with Teslas were having bumper stickers saying, I bought this Tesla before Elon Musk went crazy.
Spoiler alert, Elon Musk has always been crazy. That's what makes him Elon Musk. And if you bet
on a person like that, all it takes is him taking the wrong side of the aisle due to perception.
The left thought he was their god. And all of a sudden they realized, oh my God, he's actually
a right-winger. We hate this guy now. Now sales are plummeting. Guys, in the last 17 quarters,
they've missed nine times on revenue. It's a company that before couldn't miss. This is my
point. We don't know what the future is going to hold. That's why it's important to have that
margin of safety just in case you're wrong. They report July 23rd around 4.05 PM. And currently,
the revenue estimates are 22.7 billion and 44 cents per share. Now let's compare that to the
last. Let's go look at quarterly. It's for the quarter ending June. They did 25.5 billion
last June, and they're currently expected to do $22.7 billion. Hey, all you car company,
all you people who say it's not a car company and car sales are plummeting and revenues plummeting.
If it's not a car company, why are sales plummeting when car revenue is plummeting?
Huh? Don't buy into the bullshit. 90% of their revenue, at least 85% comes from cars. It's a
car business. They tried to sell their full self-driving for 12,000. Didn't sell that well.
Changed it to 8,000. Didn't sell that well. Changed it all the way down to like $99 per
month with a free trial. And less than 2% of people were paying for it after the free trial
was over. Where is the software business? Am I showing some selection bias here? Absolutely.
But it just goes to show that this company was the company. Look at their chart, guys.
In the last five years was recent, but look at this chart. It was $300 a share on January 1st,
2021, $300 per share. It is at $300 per share today. That's four and a half years later.
The stock has gone nowhere, but let's look at the revenue and profit for this software business.
Let's go to annual 2021. So the previous year, because it was on January 1st, 2021,
it was $300 a share. So 2020 was the year of the numbers that we had to look at. 31.5 billion.
In the last 12 months, even with a drop in revenue, they're at 96 billion. That is 3X revenue.
Okay. Let's look at profit. Scroll down. They did $721 million that year. Last year,
6.4 billion. 9X the profit. The stock is flat. So it means one of a few things.
It was overpriced back then. It's undervalued right now. Or it was so massively overpriced
that right now it's still overpriced, but a lot more reasonable. We just don't know where we're
at right now. For those of you who believe this is not a car company, more power to you. But if
it looks like a duck, talks like a duck, walks like a duck, it's a duck. Right now, this business is a
car business. It should be valued as such. That does not mean you should not value a part of the
business on its potential for software. You got to be careful there. Because I've done in other
videos before where I talk about the numbers. Even if they have 50 million cars paying $100 per month,
that's still $60 billion in revenue, which is huge. But let's say half that was profit,
$30 billion in profit. That's on a company that's currently worth a trillion dollars.
That still is 33X the company's value today. And they still have to get there. And they still got
50 million cars to pay them $100 a month. Do you see how difficult that is? We sell 17, 18 million
cars a year in the US. Worldwide, about 50 or 60 million cars. To get 50 million of the world's
cars on there to buy them at $100 a month is going to be very, very difficult. But again, this is
exactly where the story and the stock price is not going together because people just fell in love
with the story. Guys, I've thrown a lot at you. And we still have a few more companies to do.
If this feels overwhelming, I get it. It will. But we're here to simplify all of this. I'm not
trying to talk about big words and things like that. My biggest issue is I speak a little quickly.
Feel free to rewind because this is really, really important. And I assure you that if you take the
time to watch a few videos and understand this, you will probably be better than 99% of the world
in investing and understanding financials. Now, we have 17 community members who have voted on
this thing. Strong sell all the way to a strong buy. And the biggest one is a sell. Guys, who
knows? This company has defied the odds for a long, long time. But now are things starting to
catch up? I said years ago that I think Tesla would be one of those companies that we look back
on 20 years from now and the stock might still be selling for less than its all-time high that it
reaches now. Is that a bold statement? Yes, it is. But that has happened several times in history.
This is happening on two companies from 25 years ago, Intel and Cisco. And Intel is struggling
right now, but guess what? They have more revenue today after falling 30% in revenue than they did
in 2000. Cisco has way more revenue today than it did in 2000. The stock is still lower than it was
at its 2000 peak. So let's go to the eight pillars, which right here, four checks, four Xs,
valuation metrics, 228 times five-year free cash flow, and 127 times the last five years' earnings.
Shares outstanding, up slightly. Returns on capital are getting better. This is actually
pretty good for a car company. And revenues up, net incomes up, cash flows up over the last five
years and up a lot. So what do analysts think now? Have they adjusted? Guys, look at analysts.
$2 a share in profit going to 973. That's 4.8 times more profit four or five years from now.
That's incredible. They think that Elon's still going to turn this thing around, and he very well
could. But guys, call it $10 in profit, it's still selling for 30 times profit in 2029 today.
Revenue? Yeah, they have a decline in revenue this year, estimated, looking a little worse than it's
supposed to be. And back to growth, double-digit growth for the next four or five years. So can
Elon turn around this reputation? That's the question. So let's go to our stock analyzer
tool and put this all together because the story has absolutely changed on Tesla. Guys,
I'm going to show you this, my numbers here, because what I'm doing here, I love, because it
just shows the real story on Tesla. I did 10, 15, and 20% revenue growth on Tesla. Guys, they're
declining their revenue right now. So for 10 years from now to see this kind of growth would be
insane. Profit margin. Guys, their highest profit margin, 11%. I'm doing 12, 18, and 24 on free cash
flow and profit margin. These are all significantly higher than they've ever hit. This assumes that
part of this company is software. Please remember this. I am putting the rosiest of rosy assumptions
here. PE, price of free cash flow, 17, 21, and 25. And again, my 9% intrinsic value return,
no margin of safety. The stock's currently at 300. Hit the analyze button. I have a low price of 91,
high price of 525, middle price of 233. And guys, keep in mind, my middle assumption on profit
is 18% bottom line. You know how scary that is? Let's go look at their gross margin currently.
Their gross margin before paying any overhead, before paying any operators, any factories,
any taxes, 18% right now. And I'm assuming it's going to be 18% to the bottom line,
which they've averaged. The last 12 months have been 6.7, the last five years, 11%. This is a
tough, tough situation to be in. Is it possible? Yes. Is it probable? That's the question. Stock
number three, Southwest Airlines, a company that I currently own. Don't ever buy a company because
anybody in the world, even Warren Buffett owns it. You're here to teach a process. And they report
earnings July 24th at 6 a.m. Estimated revenue of $7.3 billion and 52 cents per share in earnings.
So, company has been beaten down. And guys, I'm going to tell you right now,
we have 14 community members who have it as a hold. And it's a play on profit margin. Let me
show you why. Right here, their profit margin the last five years is negative 0.65. Last year was 2%.
Before COVID, they consistently got 10 to 15% profit margin. So my play here is that they're
going to get back to somewhere close to there. Is it going to be easy? No. Has it already been
tough? Yes. But you know what's interesting? Their revenue is growing. Even before COVID levels,
their highest revenue was 22.4 billion. Last 12 months, they've done 27 and a half billion.
They need to convert this to profit. And they've gone through a lot of computer issues,
customer issues, 737 issues, a lot of things at once. I believe this is part of an opportunity.
Am I right? I don't know. We'll find out soon. Let's look at the eight pillars here. And they
don't really tell the real story. We have six X's here because everything's garbage. But you know
what I love? They're buying back shares with the limited cash that they do have. They're sitting
there saying, we think our company is undervalued and the stock has been beaten up. Let's buy back
some shares. Everything else, an X. But guys, this was an airline that was not an airline.
It literally sat there. It was the anti-airline. It made money consistently. Over 48 years up until
COVID or 54 years, something like that. It had never lost money. They properly hedge their fuel
and they stick to one plane and cost efficient and cost effective routes. That's it. They keep
it very simple. Guys, again, I need to slow down. People will miss the big picture in all this.
So when I buy a company, I look at it as, okay, I never look at my accounts. Like even when I log
in and sign something for my Merrill people, I block my balances. Because even though stocks
are up a lot right now, I don't want to fall in love with that number. And if stocks are down,
I don't want to get upset about that number. Because when you buy a business, you don't get
to see what it's worth every single day. You just focus on revenue and profit growth. And over time,
it generates a lot of wealth. I want you to be the same way with stocks. And that's difficult.
I get that. But this is where we have to look at it. I want you to get the point where you
look at a company and say, okay, where's this company going to be 10, 20, 30 years from now?
Is it going to be more profitable, less profitable? But most importantly,
can I pay a reasonable price today to get a good return on my money? That's all we're looking at
here. It's simple, not easy. This is what's important to understand here. And I want you
to remember that big picture. Let's see what analysts are saying about the company.
$1.18 this year in earnings per share growing to $4.25 in the next three or four years. Okay,
a lot of potential there. Revenue kind of stagnating at $31 billion. I don't know where
they get that from, but maybe it is. I look at Southwest going, I think they're going to
probably grow revenue three or 4% a year, maybe five. It's a good company that people have a lot
of attachment to. Are they changing the way in which they do business? Yeah, but I think for
the better. So this is a very simple story for me. What is the future of Southwest when factoring in
this bump up back in profit margin? That's my full play here. So I did two, four, and 6% revenue
growth. I did a profit margin of eight, 11, and 14. And remember, before COVID, they were
consistently doing 10 to 15%. So even my high side, I feel is reasonable. PE, 14, 17, and 20.
I'm being a little conservative, even though, guys, look at this. Their return on capital
over the last 10 years is 8% with five years of that being negative. So really their returns
on capital were about 15%, which is insane for an airline. For those of you who don't know,
or for those of you who want a reminder, returns on capital is a metric you have to look at to see
if a company deserves a premium. What it means is when they invest money in their business,
what return do they get on that capital? An airline, it's hard to get 15, 16%, and they do.
They did for a long, long time. The question is, can they get back to it? And finally, I did my 9%
return, and this is where I think it's going to shock you guys. Hit the analyze button.
This is where I think there's a lot of potential. We have all green here.
Low of 52, high of 152, middle price of 92. Guys, I don't know how Southwest is going to do.
It could end up being a complete dud. But if I had 30 companies I could buy
with these kind of numbers, I would crush Warren Buffett. Stock number four, another company I own,
PayPal. Reports July 29th, 7 a.m., estimated revenue of $8.08 billion,
earnings per share of $1.30. $8.08 billion. Let's see. How does that stack up for last year's
$7.9 billion? So not a lot of growth. This is not a growth company anymore. And when it was
perceived to be a growth company, this is where the stock went. Remember, stock price a lot of
times will be backward looking. It's supposed to be forward looking, but they'll sit there and say,
oh, growth, growth, growth. Oh, shoot, growth isn't happening. Change stories change. Let's
move on. The question is, has the price changed enough to make it attractive again? Because that
fifth pillar is very important. And I want you to remember, it's not about just the price you pay.
It's what you're buying for that price. That's the super important aspect here that any investor
needs to understand. Now, community members, we have 37 community members who have voted on this
stock. The average of the buy rating was 60 and 30%. So basically 90% have it as a buy or strong
buy. Boy, I hope we're right. So some metrics here to look at, guys. Look at this. $6 billion in free
cash flow last year. Five-year average of 5.2 billion, which is higher than their net income
and five-year net income, which is great. Revenue last year in the last 12 months of 31.89.
So they're basically sticking along there. Profit margin very consistently in the 14%
range with that gross margin of 46%. This is their growth rate in revenue, 7.3 for the last three
years, 11.8% a year for the last five, 14.5% for the last 10 years with about $6 billion in
acquisitions, which is pretty hefty. They own Venmo. PayPal is a very secure source for payment.
Is there a competition? Apple Pay, I don't think is a competition. Amazon Pay might be. I don't
think Apple Pay is. Apple Pay is merely on your phone just with your credit card as a way of
saying, ding. With PayPal, you get the support of PayPal if you buy something you don't like.
If you buy something through Apple Pay and you have an issue, you have to go to Visa or America,
whoever you bought it with, whatever card you bought it with. That's a very different aspect
there. Now, let's go see what the eight pillars look like. Eight, pilla, thrilla. Everything is
a check here. They're buying back shares. They have cash flow growth. They have net income growth.
They have revenue growth. They have reasonable debt, even though they have a lot of debt,
by the way. They have $50 billion in debt and a market cap of 75 billion enterprise value of 125,
that in-between number. But a lot of that money is probably, that is the money they owe people
because they have money in their accounts and they're holding at any given time. 14.5 times
their five-year free cash flow, and it's getting better. It's 12.6 times free cash flow right now.
Guys, this was a stock that was 310, everybody loved, and then at 50, everybody hated.
This is the world of investing. The question is, who's right? That's what we have to ask
ourselves. Let's see what analysts think. Well, analysts see steady earnings per share growth,
11%, 11%, 13.5, 10.5, 16.5. That's a lot of revenue, earnings per share growth for a company
that people think is dying. And look, revenue growth, 3, 5.5, 7.5, 6.5, 4.5% revenue growth
in the next few years. Not great, but they're becoming more and more entrenched in people's
lives, and that's what makes it better. So let's go look at our stock analyzer tool here
and see what a reasonable price to pay for PayPal would be. Okay, so I did 3, 6, and 9%
revenue growth. That's actually quite a bit. I'm going to actually pump the brakes on that
one a little bit. I'm going to go 3, 5, and 7. I'm adjusting this. Now, profit margin, I did 13,
14.5, and 16. And guys, look at this. Their free cash flow is a lot higher, 18 to 20%.
I'm doing 16, 19, and 22. So I'm going to focus on the free cash flow number, PE. There's a lot
of competition out there. I'm putting 14, 17, and 20, even though their returns on capital are
getting better and better. The last 10 years, it was 9.5%. Last five years, it was 10.5. Last one
year, it's 13. As this number gets better and better, it says they're doing better about
investing their capital and they're building that moat. That's what's really important here.
And companies like that deserve a premium. I'm not even putting a huge premium here.
And finally, my 9% return. Before we hit that, guys, we have analyzed four great companies.
But a part of me doesn't care how great the business is as much. I'm not just going to
pay any price for it. If all that mattered was buying a great business, then we would just buy
all the best businesses and say, okay, whatever price doesn't matter. But that's been proven time
and time again to not work. That's not how real investors build wealth. You need to understand
the business, understand valuation, and have a system that works no matter what the market's
doing. As recently as April, we saw that big market drop in early part of the year,
ended in April. Fear was all over the place. Headlines went nuts. Most people froze. I got
excited. While everyone panics, we have a plan that we stick to. We know exactly what we're
looking for, and we load up on the stocks that make the most sense at those prices. Knowing full
well they could go further south. But the Paul of 20, 25 years ago, I was just like the average
person. I would chase stocks, follow tips, get caught up in the hype, believe the story is what
matters, hoping something would stick. That isn't investing. That's gambling. And this is exactly
why everything money was created. We needed to give the people like me from 25 years ago
the tools and the strategy, and I wish I had that community of people to talk to. What we're trying
to do here is make it an easier life for you. We're trying to make it easier so you can understand
what you're buying and why you're buying it. So that when the market does turn, which it always
does, you're able to say, this is what we planned for. This is what we're ready for. And embracing
it. In our community, the number of people get excited on big red days is incredible. So do
yourself a favor, join everything money. It gives you access to all the software, all the private
groups, like-minded investors who are trying to eliminate the guessing game. Now, what's really
important though is don't join if the kind of person who jumped from one shiny thing to the
next. If you're looking for a quick fix, you shouldn't even watch our videos. If you're interested
in learning and getting better. And we did a poll recently in our YouTube community, over 2,000
people responded. And we asked them, what are you here for? And 86% were trying to get better and
trying to learn a better process. That was incredible. It wasn't trying to make up for lost
time, even though it was a part of it, but trying to get better was, it was truly important to them.
And that's exactly what the community tells me. We have the right people watching our channel.
So that's you click the link below, start your seven day trial. Just know that spots are going
to be limited and we're trying to change it to even becoming a, an application process. But if
you're serious, now's the time. Now we did this analysis, hit the analyze button. The stock's
currently at 75 guys. I have a low price of 60 to 75 high price of one 26 to one 75 middle price
of 89 to one 16. And that's after lowering my growth assumptions for the stock. So we're at
15 and a half percent return based on the middle assumptions of everything above happens pretty
solid. I feel like the juice is worth the squeeze for me. Now for our final company, this is a
company that has been on a rollercoaster ride over the last 30 years, AMD advanced micro devices.
And for a long time, guys, this company had, it took this company it's 2000 high was around $45
a share. It took until 2019 to beat that high again, 19 years. Now their estimates for July 29th
are 7.42 billion in revenue and 49 cents earnings per share. This is a chip maker. They've been
riding that chip wave last year, same quarter. They did 5.84 billion in revenue. They're expected
to do 7.42 big time jump. The company is worth $224 billion and has an enterprise value of 230.
That's $6 billion difference. And look, their free cashflow is almost 3 billion. They have very
little debt, but guys, I look at this and I think, first off great growth for with very little
acquisitions, three-year growth per year, 13 and a half percent, 30 and a half percent over the last
five years, 18 and a half in the last 10 years. But guys, price of free cashflow of 81, PE of 100.
That's a lot. That's a lot. They did revenue of $27 billion. Guys, Intel did a revenue of
$60 billion or something like that. I don't know the exact number and they're worth like $60 billion.
At some point, you're paying too much for growth. The question here, is that the case?
Let's go to the eight pillars here. Four checks, four X's, valuation, valuation. Guys, look at this.
They've increased their shares outstanding by 32%. This is massive dilution. This takes away a third
of or half of the growth the company's experienced in the last five years. This is something very
important, especially if you're new to this channel and if you've been here for a while,
repeated over and over. When companies are issuing a lot of shares, they're giving you less and less
of the business. If a company has 10 shares and you own one, you own 10% of the business. If they
increase the number of shares to 15, you still own one share out of 15 now. You only own 6.66%.
You've been diluted by one third. These people have been diluted actually by one fourth.
That's a lot of dilution for such a big company. But I don't blame AMD. They're like, listen,
people are crack addicts. They want our freaking stock. Let's give it to them.
Analyst estimates, big growth, $4 per share going to $11 per share in the next four or five years.
Big time growth and revenue growth, really high, 23%, 17, 16, 18, and 9%. That's a lot of growth
for a company of this size. Stock analyzer, I did 10 year analysis, 8, 12, and 16%. That's a lot,
guys. Profit margin, I did 8, 15, and 22. They've never hit 15 in the last 10 years
in terms of an average. PE, I did 18, 21, and 24. What I like here is even though the ROIC is low,
1.82, in the last 10 years is negative 5.83. Five years of 3.93. So it's getting better-ish.
This is probably a fluke year that happened 1.82, but it is getting better. And again, my 9% desire
return. Hit the analyze button. Boom. Guys, we have a low price of 34, high price of 215,
middle price of 97. Huge range because there's a lot of range for AMD because they haven't performed
so great in the past. Guys, if you want to understand and if you're still watching right now
and you're not looking for hype, you're here to learn how to build wealth. So why stop now?
In the full course, just click the video linked on the screen. I show you exactly how I find
undervalued stocks before the crowd catches on. You're going to learn how to read financials the
right way, avoid overpriced traps. And guys, you'll be in the top 1% of knowledge on financials and
investing. So if you're serious about this, click the video on your screen and take the next step.
Thank you for your time.
