Consumer Discretionary Stock Recommendation Team:
Description: Consumer Discretionary Stock Recommendation Team: Sean Buck Sriharsh Adari Sector Review Consumer Discretionary is cyclical Desired goods but not essential Consumes 12.23 of SP 500 as a sector Market Cap: 6.78T Largest Companies: Amazon
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slide1. Consumer Discretionary Stock Recommendation Team:
Sean Buck & Sriharsh Adari<br>
slide2. Sector Review Consumer Discretionary is cyclical
Desired goods but not essential
Consumes 12.23% of S&P 500 as a sector
Market Cap: 6.78T
Largest Companies:
Amazon
Tesla<br>
slide3. SIM Portfolio Standing<br>
slide4. Amazon Overview
Growth Drivers
Risks
Valuation<br>
slide5. Amazon Overview Amazon.com Inc. (AMZN), one of the largest companies in the world, is a global leader in e-commerce and cloud computing. Founded in 1994, Amazon started out as an online bookstore. But its founder and former chief executive officer (CEO), Jeff Bezos, envisioned Amazon as more than merely an online retailer. • Its delivery network has expanded as its customer base continues to grow. It has 253 fulfillment centers and 467 delivery stations across North America.
• AWS, Amazon Advertising and Amazon Prime remains a fantastic business with a lot of runway for growth. Amazon expanded into several business channels and has seen massive growth over time with 10-year stock price increase of 1826% at the end of 2021<br>
slide6. Amazon Growth Drivers & Risks<br>
slide7. Amazon Valuation Overall Recommendation: BUY Amazon, Inc (NASDAQ: AMZN) with a price of $115.54 and an implied upside of 8.31 %.
Conclusion: Amazon is currently slightly undervalued and much of their current share price has speculation associated with Interest rates hikes, inflation, supply chain issues, and operating costs to maintain excess capacity Amazon invested during covid, these issues are temporary. If Amazon is able to effectively implement their cost cutting measures over the next 6-12 months, Amazon’s value will increase over the current share price.<br>
slide8. Target Overview
Growth Drivers
Risks
Valuation<br>
slide9. Target Growth Drivers & Risks<br>
slide10. Target Valuation Overall Recommendation: BUY Target, Inc (NASDAQ: TGT) with a price of $140.81 and an implied upside of 68.7 %.
Conclusion: The stock is now trading at a price-to-earnings ratio of 11.5, near the lowest it has sold for in the past decade. Investors can undoubtedly start buying Target's stock now. Or they can place the stock on their watch list and observe how the inventory liquidation goes over the next few quarters before starting a position.<br>
slide11. General Motors General Motors designs, manufactures and sells cars, trucks, and automobile parts
It also provides automotive financing services through General Motors Financial Company
The lines of business include manufacturing and assembly plants and distribution centers in the United States, Canada, and other countries.
Sells cars under the label of Chevrolet, Buick, GMC, and Cadillac<br>
slide12. General Motors Valuation Growth Driver
Electric Vehicles
Battery Manufacturing
Margin Expansion
Risks
Inflation
Weak Supply Chain Current Price: $31.20
Target Price: $56.36
Terminal Discount Rate: 11%
Terminal FCF Growth Rate: 1%<br>
slide13. General Motors DCF<br>
slide14. Home Depot Home Depot is the world's largest home improvement retailer
Home Depot sells tools, construction products, appliances, and services
Over 2,200 stores in three different countries<br>
slide15. Home Depot Valuation Growth Driver
Strong Demand For Homes
Expanding into Other Markets
Dividend Growth
Risks
Inflation
Weak Supply Chain
Consumer Spending
Slow Housing Market Current Price: $299.83
Target Price: $349.09
Terminal Discount Rate: 9%
Terminal FCF Growth Rate: 2.8%
<br>
slide16. Home Depot DCF<br>
slide17. Recommendation Buy Target
68.70% upside
Current price $140.81
Target price $237.59
Currently Stock is undervalued stock and at a good price to buy.
The stock is now trading at a price-to-earnings ratio of 11.5, near the lowest it has sold for in the past decade. Hold GM
10% upside
Current price $31.20
Target price $56.36
Positive Upside and Electric Vehicle sector
Supply Chain is recovering slowing and hence more cars would be produced in near term Buy Amazon
15.89% upside
Current price $115.54
Target price $133.90
AWS, Amazon Advertising and Amazon Prime remains a fantastic business with a lot of runway for growth.
Its delivery network has expanded as its customer base continues to grow. Buy Home Depot
Adds diversity
5% upside
Current price $299.83
Target price $349.9
It has Sustainable Dividend Yield, higher than S&P 500
Profit is expected to grow in double digits over the next couple of years.<br>
Sean Buck & Sriharsh Adari<br>
slide2. Sector Review Consumer Discretionary is cyclical
Desired goods but not essential
Consumes 12.23% of S&P 500 as a sector
Market Cap: 6.78T
Largest Companies:
Amazon
Tesla<br>
slide3. SIM Portfolio Standing<br>
slide4. Amazon Overview
Growth Drivers
Risks
Valuation<br>
slide5. Amazon Overview Amazon.com Inc. (AMZN), one of the largest companies in the world, is a global leader in e-commerce and cloud computing. Founded in 1994, Amazon started out as an online bookstore. But its founder and former chief executive officer (CEO), Jeff Bezos, envisioned Amazon as more than merely an online retailer. • Its delivery network has expanded as its customer base continues to grow. It has 253 fulfillment centers and 467 delivery stations across North America.
• AWS, Amazon Advertising and Amazon Prime remains a fantastic business with a lot of runway for growth. Amazon expanded into several business channels and has seen massive growth over time with 10-year stock price increase of 1826% at the end of 2021<br>
slide6. Amazon Growth Drivers & Risks<br>
slide7. Amazon Valuation Overall Recommendation: BUY Amazon, Inc (NASDAQ: AMZN) with a price of $115.54 and an implied upside of 8.31 %.
Conclusion: Amazon is currently slightly undervalued and much of their current share price has speculation associated with Interest rates hikes, inflation, supply chain issues, and operating costs to maintain excess capacity Amazon invested during covid, these issues are temporary. If Amazon is able to effectively implement their cost cutting measures over the next 6-12 months, Amazon’s value will increase over the current share price.<br>
slide8. Target Overview
Growth Drivers
Risks
Valuation<br>
slide9. Target Growth Drivers & Risks<br>
slide10. Target Valuation Overall Recommendation: BUY Target, Inc (NASDAQ: TGT) with a price of $140.81 and an implied upside of 68.7 %.
Conclusion: The stock is now trading at a price-to-earnings ratio of 11.5, near the lowest it has sold for in the past decade. Investors can undoubtedly start buying Target's stock now. Or they can place the stock on their watch list and observe how the inventory liquidation goes over the next few quarters before starting a position.<br>
slide11. General Motors General Motors designs, manufactures and sells cars, trucks, and automobile parts
It also provides automotive financing services through General Motors Financial Company
The lines of business include manufacturing and assembly plants and distribution centers in the United States, Canada, and other countries.
Sells cars under the label of Chevrolet, Buick, GMC, and Cadillac<br>
slide12. General Motors Valuation Growth Driver
Electric Vehicles
Battery Manufacturing
Margin Expansion
Risks
Inflation
Weak Supply Chain Current Price: $31.20
Target Price: $56.36
Terminal Discount Rate: 11%
Terminal FCF Growth Rate: 1%<br>
slide13. General Motors DCF<br>
slide14. Home Depot Home Depot is the world's largest home improvement retailer
Home Depot sells tools, construction products, appliances, and services
Over 2,200 stores in three different countries<br>
slide15. Home Depot Valuation Growth Driver
Strong Demand For Homes
Expanding into Other Markets
Dividend Growth
Risks
Inflation
Weak Supply Chain
Consumer Spending
Slow Housing Market Current Price: $299.83
Target Price: $349.09
Terminal Discount Rate: 9%
Terminal FCF Growth Rate: 2.8%
<br>
slide16. Home Depot DCF<br>
slide17. Recommendation Buy Target
68.70% upside
Current price $140.81
Target price $237.59
Currently Stock is undervalued stock and at a good price to buy.
The stock is now trading at a price-to-earnings ratio of 11.5, near the lowest it has sold for in the past decade. Hold GM
10% upside
Current price $31.20
Target price $56.36
Positive Upside and Electric Vehicle sector
Supply Chain is recovering slowing and hence more cars would be produced in near term Buy Amazon
15.89% upside
Current price $115.54
Target price $133.90
AWS, Amazon Advertising and Amazon Prime remains a fantastic business with a lot of runway for growth.
Its delivery network has expanded as its customer base continues to grow. Buy Home Depot
Adds diversity
5% upside
Current price $299.83
Target price $349.9
It has Sustainable Dividend Yield, higher than S&P 500
Profit is expected to grow in double digits over the next couple of years.<br>