Video Length: 00:04:55
The first stock that has this divergence is Wayfair (W – Snapshot Report) the seller of home goods. Brian notes that the stock soared more than 40% following the most recent earnings report but has fallen back substantially since then. The valuation is a little inflated here, trading twice the book value when compared to the industry average. Brian didn't note on the video but this is one of the reasons the stock has an “F” Value Style Score, as value investors key in on that metric. Earnings expectations are pretty high, but with the lower stock price Brian thinks that this is a good time to take a deeper look.
The next stock is one of Brian's favorites over the last year, and will probably be among his favorites for the next year as well. Terry Ruffolo noted that he never heard of Inphi (IPHI – Snapshot Report) but that doesn't necessary mean that much as he is not in charge of any data centers. The people that do run data centers and the chips that help the servers process the high speed inflow of information certainly have hear of IPHI. Brian notes the recent design wins for the company and also talked about the stiff valuation for shares at current levels. The chart looks ok, to our growth strategist, so this is a good stock to put on your radar.
Get the latest research report on W – FREE
Get the latest research report on IPHI – FREE
