5 Stocks I'm Buying Now!!!!! December 2023

Summary

In this video, the speaker outlines five stocks they are planning to buy, offering insights into each company’s potential for long-term growth. Key picks include Cheesecake Factory, which benefits from international expansion and strong cash flow; Revolve, which is poised for a recovery after a challenging year; and Win Resorts, which stands to gain as Macau’s recovery strengthens. The speaker emphasizes finding undervalued opportunities with strong fundamentals, positioning these stocks as solid, resilient investments for 2024 and beyond.

Takeaways

• 😀 The Cheesecake Factory has significant international growth potential, especially in China, which could eventually surpass the U.S. market in terms of revenue.
• 😀 North Italia, a subsidiary of Cheesecake Factory, is seeing strong growth and could become one of the next big restaurant brands, with a high emphasis on alcohol sales.
• 😀 The Cheesecake Factory has weathered multiple crises, including the Great Financial Crisis and the COVID-19 pandemic, proving its resilience and ability to adapt.
• 😀 Cheesecake Factory's financials have improved despite inflationary pressures, with an increase in income from operations and earnings per share growth.
• 😀 The speaker plans to hold and buy more shares of Cheesecake Factory, expecting steady growth and reliable dividends in the coming years.
• 😀 Revolve, an e-commerce company in the fashion industry, had a tough year in 2023 but is expected to recover in 2024 as the retail sector rebounds.
• 😀 Despite its challenging year, Revolve remains a cash flow machine with a strong balance sheet, making it a solid investment for the long-term.
• 😀 The speaker plans to increase their position in Revolve, aiming for 10,000 shares, as they believe the company will outperform analyst expectations in 2024.
• 😀 Win Resorts, despite its struggles due to the US-China relationship and COVID-19, has a solid foundation and is well-positioned for growth with Macau reopening.
• 😀 The speaker believes Win Resorts' long-term strategy, set up by Steve Wynn before his departure, will ensure continued success for the company in the coming years.
• 😀 The stock price of Win Resorts is considered a buy if it's under $100, with a special 'load the boat' opportunity if it falls below $70, which is rare but possible.

Q & A

What are the key growth opportunities for Cheesecake Factory, according to the speaker?

The Cheesecake Factory has significant growth potential, particularly in China, where the market could eventually surpass the United States. The company is also expanding its international presence and owns several other restaurant concepts, like North Italia, which have strong growth prospects.

How has Cheesecake Factory performed in terms of profitability despite inflationary pressures?

Cheesecake Factory has managed to maintain strong profitability, with impressive earnings growth despite inflationary pressures on wages and commodities. They have also significantly increased their off-premise sales, which have become a larger part of the business since the COVID-19 pandemic.

What is the current valuation of Cheesecake Factory, and what are the expected growth metrics for 2024?

Cheesecake Factory is trading at about 10 times its expected 2024 earnings. The company is projected to experience 17% EPS growth and around 6% revenue growth in 2024, indicating solid growth prospects.

What challenges has Revolve faced in recent years, and how does the speaker view its future?

Revolve has faced a difficult 2023, with sales and profitability down significantly. However, the speaker believes retail conditions will improve in 2024, especially as inflation eases and real wages increase. Revolve is considered a cash flow machine, with strong reserves and the potential for significant upside as conditions improve.

What makes Revolve an attractive investment despite its tough year?

Despite a challenging 2023, Revolve has maintained strong cash flow and has a robust balance sheet, including $266 million in cash. The company’s e-commerce platform, which targets higher-end fashion, is expected to rebound in 2024, making it a potentially undervalued stock at its current price.

What is the speaker’s long-term outlook for Revolve, and how does it compare to other retail companies?

The speaker is bullish on Revolve for the long term, believing that its performance will improve in 2024 and beyond as the broader retail sector recovers. While the retail space has struggled in 2023, the speaker expects Revolve’s revenue growth to outpace current analyst expectations, making it a strong candidate for growth in 2024.

What is the recommended buy price for Wynn Resorts, and what factors influence this recommendation?

The speaker recommends buying Wynn Resorts under $100 per share and loading up the stock if it falls below $70. The recommendation is based on the company’s recovery prospects, particularly as Macau’s casino market reopens and grows. Additionally, the speaker notes that the stock tends to drop when it goes over $200, making it a potential sell point.

How has Wynn Resorts performed in recent quarters, and what are the key drivers of its recovery?

Wynn Resorts has seen significant growth in gross profit, from $429 million to $1.1 billion in one quarter. Operating income also turned positive, reflecting strong recovery. The primary driver of this recovery is the reopening of Macau, which is expected to continue boosting the company's profits as the market stabilizes.

What are the speaker’s thoughts on Wynn Resorts’ long-term potential?

The speaker views Wynn Resorts as well-positioned for the long term, thanks to the strategic decisions made by founder Steve Wynn. Despite recent challenges with China and COVID-19, the company owns premium properties in both Las Vegas and Macau, which are poised to generate strong returns as markets continue to recover.

How does the speaker compare Steve Wynn's legacy to that of Steve Jobs, particularly regarding Wynn Resorts?

The speaker compares Steve Wynn's legacy to Steve Jobs, noting that both men set up their respective companies for long-term success. While Jobs left Apple with a clear strategy for future growth, Wynn did the same for Wynn Resorts, creating a strong foundation that only requires effective execution to drive future success.