Super Stock Blog

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Tag: fb

Facebook at Buy Value!

Facebook, ticker FB, dropped in stock share price yesterday and even further today currently down over 4% today after the hearings with congress yesterday. Much of the drop earlier in 2018 was related to fake users that they had to remove which showed that Facebook has less users than originally stated. Remember, that Facebook also owns Instragram which continues to grow its user base and is valued at $100 billion by Forbes if they were its own separate company.

Also, remember that Facebook is still widely known around the world even if their growth has slowed down in the USA market. They also have a cash holdings of $42 billion that should be factored into your fundamental analysis. FB has a PE of 25 while GOOG is at a PE of 50. That fact alone shows you the undervaluation that the market is giving to Facebook. I believe there is plenty of growth in the stock and the stock price does not factor this in.

At the current price, you can’t go wrong purchasing below $163.

Wal-Mart is a Bargain Right Now!!

How did I miss this stock?  We get so busy looking at our portfolio that we miss these opportunities.  Well, it just so happens that I was viewing the tweets on StockTwits and someone mentioned that Facebook (FB) has taken a higher market value than Wal-Mart (WMT).  They put the stock chart side-by-side and my surprise was seeing that Wal-Mart has dropped rapidly the past 3 months.

Ok, so yes, Facebook (FB) has higher marketshare and it definitely can keep moving up higher.  However, we need to have some conservative stocks that will also continue to do well for the long-term.  Wal-Mart is the answer to the conservation stock picker that wants to get long-term growth, appreciation, and a steady winner.

Why Wal-Mart?

Fundamentals are really good for Wal-Mart.  It currently trades at a PE of 14.7.  Compare that to its competitors Target that is running at a PE of 20.5 and you have a winner of a stock that is under-valued, under-appreciated, and you know it won’t last forever.  You also get to collect a nice 2.7% dividend for owning WMT.

Can it go down further?

Of course the stock can go down further, no one holds a crystal ball.  However, I’m sure big companies like Berkshire Hathaway know what they are doing when almost 5% of their portfolio is invested in Wal-Mart.