Markets Collapse: 4 Stocks HIGH on my BUY LIST

Summary

In this video, the host discusses four high-quality companies on his buy list, emphasizing the importance of due diligence and a watch list for investors. He covers AMD for AI-driven growth, MRK for healthcare stability, CRM for tech efficiency, and META for potential in digital advertising and political campaigns. Despite not owning these stocks currently, he outlines his strategy for potential buys, including using options and waiting for price pullbacks, while highlighting the companies' market performance and future growth prospects.

Takeaways

• 😀 The speaker emphasizes the importance of having a watch list and doing due diligence in advance for investing opportunities.
• 📈 The video discusses four high-quality companies that are on the speaker's buy list, which he does not currently own.
• 👍 The speaker asks viewers to like the video and subscribe to the channel for more content.
• 💡 The speaker is a CPA but not a financial advisor, and the content should not be taken as financial advice.
• 🔊 The video is sponsored by the Motley Fool, offering resources for investors and a special link to get the '10 best stocks to buy now'.
• 📉 The technology sector has experienced volatility, with the speaker noting a significant market drop and potential for further declines.
• 🏭 The first stock discussed is Advanced Micro Devices (AMD), a semiconductor company with a history of growth and potential for future expansion due to AI and computer industry developments.
• 💊 The second stock is Merck (MRK), a pharmaceutical company that offers defensive qualities in the healthcare sector, with robust drug sales and a diversified pipeline.
• 🤖 The third stock is Salesforce (CRM), a technology company that has faced growth concerns but is investing in AI and has potential for recovery as the economy strengthens.
• 📺 The fourth stock is Meta Platforms (META), known for its digital advertising potential, especially with upcoming elections and the need for advertising by new candidates.
• 📊 The speaker provides specific price levels at which they would consider buying these stocks, based on potential market pullbacks or earnings reports.
• 📝 The video also mentions the speaker's 6-week investing accelerator course for those interested in learning more about stock valuation and analysis.

Q & A

What is the main theme of the video?

The main theme of the video is discussing four high-quality companies that the speaker has on his buy list, which he would consider purchasing if their stock prices fall.

Why is it important to have a watch list of stocks?

It's important to have a watch list of stocks to be prepared for investment opportunities, perform due diligence ahead of time, and know at what levels you want to buy those particular stocks.

What does the speaker suggest doing before investing in a stock?

The speaker suggests performing due diligence on the stocks, understanding the company's fundamentals, and being comfortable with the levels at which you want to buy the stock.

What is the significance of the sponsor mentioned in the video?

The sponsor, The Motley Fool, is mentioned as a resource for investors with various tools and products. They are offering a sign-up for their '10 best stocks to buy right now'.

What is the current state of the technology sector according to the video?

The technology sector has seen some volatility and is experiencing a downturn, with the speaker mentioning it had its single worst day since December of 2023.

What is AMD and why is the speaker interested in it?

AMD, or Advanced Micro Devices, is a semiconductor stock that the speaker has owned in the past and made good money with. The speaker is interested in it due to its potential in AI and the computer industry.

What is the current market cap of AMD according to the video?

The current market cap of AMD is $224 billion.

Why is the speaker interested in Merc (MRK)?

The speaker is interested in Merc (MRK) because it operates in the healthcare sector, which is a defensive area that can perform well regardless of the overall market conditions, and it has a robust and diversified pipeline of drugs.

What is the speaker's view on Salesforce (CRM)?

The speaker believes that Salesforce, despite its recent slowdown in growth, is building efficiencies for companies and could benefit from another subcycle as the economy strengthens again.

What is the speaker's strategy for investing in these companies if their stock prices fall?

The speaker plans to be ready to buy these stocks if their prices fall and mentions using options by selling cash-secured puts to generate income while waiting for the stocks to reach a desirable price.

What is the speaker's outlook on Meta Platforms (META)?

The speaker believes there will be a bounceback in digital advertising for Meta Platforms and sees potential growth due to the upcoming presidential election and the need for advertising by new candidates.

What is the speaker's disclaimer regarding the content of the video?

The speaker is a CPA and not a financial adviser, so the content should not be taken as financial advice, and viewers should do their own research before making investment decisions.

Outlines

00:00

📈 Investing in Opportunities: Building a Watch List

The video script begins with an emphasis on the importance of being prepared for investment opportunities, advocating for the creation of a watch list and performing due diligence on potential stocks. The speaker, Mark Rusen, introduces four high-quality companies on his buy list, which he does not currently own but would consider purchasing if their stock prices fall. He encourages viewers to like the video and subscribe to the channel for updates on new content. Rusen also mentions the recent volatility in the technology sector and the potential for further declines, positioning himself as ready to take advantage of such market dips.

05:02

💊 Diversifying Investments: From Tech to Healthcare

The second paragraph discusses the strategy of diversifying investments, particularly into defensive sectors like healthcare when the market becomes volatile. The speaker highlights Merck & Co. (MRK), a pharmaceutical company with a robust and diversified portfolio, including its blockbuster drug Keytruda. Despite recent earnings reports and a strong market performance, Rusen takes a cautious approach, waiting for the latest earnings results before making any investment decisions. He also provides an overview of the company's financial performance and valuation metrics, suggesting potential entry points for investment.

10:05

🛠️ Salesforce and the Technology Sector's Challenges

In the third paragraph, the focus shifts to Salesforce (CRM), a Dow Jones component and a software company that has faced challenges in 2024 due to slowing growth. The speaker acknowledges the company's recent struggles but remains optimistic about its potential for recovery and growth, especially with its investments in AI and a partnership with Workday. Rusen provides an analysis of Salesforce's current market position, earnings expectations, and valuation, suggesting that the stock is currently undervalued and presents an intriguing opportunity for investors.

🌐 Meta Platforms: Anticipating a Digital Advertising Rebound

The final paragraph of the script addresses Meta Platforms (formerly Facebook), a company with a significant market cap and a history of growth. Despite recent earnings reports that led to a stock price drop, the speaker is optimistic about a potential rebound in digital advertising and the impact of the upcoming presidential election on advertising needs. He discusses Meta's historical performance, current valuation, and future growth prospects, indicating a preference for the stock to pull back to a certain level before considering an investment.

Keywords

💡Investing

Investing refers to allocating resources, usually money, with the expectation of generating an income or profit. In the context of the video, it is about being prepared to capitalize on opportunities in the stock market. The script mentions building a watch list and performing due diligence, which are part of the investing process.

💡Watch List

A watch list in investing is a curated group of stocks that an investor is monitoring for potential buying opportunities. The video emphasizes the importance of having such a list ready, so one can act quickly when the right conditions arise, as illustrated by the speaker's readiness to buy certain stocks if their prices fall.

💡Due Diligence

Due diligence in finance is the research and analysis conducted prior to making an investment to confirm all material facts. The script underscores the necessity of performing due diligence on potential stocks to ensure one is comfortable with the investment decision, aligning with the video's theme of informed investing.

💡Stock Prices

Stock prices represent the current market value of a single share of a company's stock. The video discusses the anticipation of stock prices falling as an opportunity for the speaker to invest in certain companies, highlighting the significance of market timing in investment strategy.

💡Long-term Investor

A long-term investor is someone who buys stocks with the intention of holding them for an extended period, expecting their value to increase over time. The script mentions the speaker's perspective as a long-term investor, hoping for stock prices to fall so they can buy and hold for future gains.

💡Semiconductor

Semiconductors are materials, often used in electronics, that have electrical conductivity between that of a conductor and an insulator. The video discusses Advanced Micro Devices (AMD), a semiconductor company, as an example of a stock the speaker is interested in, tying into the theme of identifying quality investments.

💡Market Cap

Market capitalization, or market cap, is the total market value of a company's outstanding shares of stock. The script provides the market cap for AMD as an example of a metric investors might consider when evaluating a company's size and investment potential.

💡PEG Ratio

The PEG ratio is a valuation metric that considers a company's price-to-earnings (P/E) ratio relative to its growth rate. The video mentions that AMD has a PEG ratio of one or lower, indicating that it might be undervalued, which is relevant to the video's theme of identifying good investment opportunities.

💡Pharmaceutical

Pharmaceutical refers to the industry involved in the research, development, and marketing of drugs and medications. The script discusses Merck (MRK) as a pharmaceutical company, emphasizing the defensive nature of this sector during economic downturns and its potential for growth.

💡Earnings Report

An earnings report is a company's official statement of its profits or losses over a specific time period. The video mentions waiting for earnings reports from companies like AMD and Merck before making investment decisions, showing the importance of this information in the investment process.

💡Software Company

A software company is a business that develops and sells software products. The script discusses Salesforce (CRM) as a software company, highlighting its role in the technology sector and the potential for growth despite recent challenges, which is central to the video's message about identifying opportunities.

💡Digital Advertising

Digital advertising refers to any promotional activity carried out through digital channels, such as social media or search engines. The video discusses Meta Platforms (formerly Facebook) and the potential for a bounce-back in digital advertising, especially with the upcoming presidential election, tying into the theme of anticipating market opportunities.

💡Portfolio

A portfolio in investing is a collection of financial assets such as stocks, bonds, and cash equivalents held by an investor. The script mentions that none of the discussed stocks are currently in the speaker's portfolio, but they are on the watch list for potential future investment.

Highlights

Importance of readiness for investment opportunities and maintaining a watch list of stocks with due diligence.

The speaker's preference for buying high-quality stocks at pullback levels.

The speaker does not own the stocks discussed but would consider buying them at lower prices.

Sponsorship mention of the Motley Fool and their resources for investors.

Current market volatility, particularly in the technology sector, and its potential future impact.

Discussion of Advanced Micro Devices (AMD) as a high-quality semiconductor stock with potential for growth due to AI and computer industry refresh.

AMD's market performance over the past year and its potential as a value buy at current levels.

Merck (MRK) as a pharmaceutical stock with robust growth and a diversified pipeline.

Salesforce (CRM) as a Dow Jones component facing growth concerns but with potential for recovery through AI investments.

Meta Platforms (META) as a stock with potential for a bounce-back in digital advertising, especially with upcoming elections.

The speaker's strategy of utilizing options by selling cash-secured puts to generate income while waiting for stocks to reach desired buy levels.

Expectations of EPS growth for the discussed companies and their valuation metrics.

The speaker's disclaimer of not being a financial adviser and the reminder to not take the content as financial advice.

The potential impact of a presidential election on digital advertising and Meta Platforms' stock.

The speaker's personal investment strategy and how he evaluates companies for his portfolio.

A detailed analysis of AMD's financial performance, growth prospects, and potential entry points for investment.

The importance of waiting for earnings reports before making investment decisions, as illustrated with Merck's upcoming report.

Transcripts

when it comes to investing It's always

important to be ready when opportunities

persist sometimes we see those

opportunities coming many times we don't

and it's very important for you to build

a watch list of stocks perform your due

diligence ahead of time so that you are

comfortable buying a stock and you know

at what levels you want to buy those

particular stocks and in today's video

we're going to take a look at four

highquality companies high on my buy

list I don't own any of these stocks

right now but if their stock prices fell

which as a long-term investor I hope

they do I would gladly be buying into

them but before we take a look at these

four stocks do me a huge favor click

that like button down below as that

shows your appreciation for the videos

that I put out it also helps with the

algorithm to push this videos to a

larger audience and if you haven't done

so make sure you subscribe to the

channel as well so you're notified

anytime we drop new content with that

being said let's jump into it

[Music]

hey everyone Mark rusen here back for

another video as always I'm a CPA and

not a financial adviser so please do not

take this as Financial advice and before

we begin let me thank today's video

sponsor which is the mtle fool the

montle fool has a ton of great resources

and products available for investors of

all different levels and right now if

you go to fool.com slm Mark you could

sign up to receive their 10 best stocks

to buy right now the stock market

particularly the technology sector has

seen some volatility kind of creep in as

we have had our single worst day since

December of 2023 but is more pain in

store and again in today's video we're

going to be taking a look at four stocks

high on my buy list which means I'm not

particularly crazy about the prices they

are selling at today but if they do in

fact fall I'm going to be ready and as a

reminder all four of these stocks are

not currently within my portfolio so

let's begin with the first stock on our

list which is Advanced Micro Devices

otherwise known as AMD this is a

semiconductor stock that I've owned in

the past and I've made really good money

with it particularly with wheel strategy

as it pertains to options I was able to

buy the shares low and sell them much

much higher however with a lot of this

AI stuff going on and a refresh in the

computer industry this is a stock I'm

looking to get back into AMD shares Cur

Curr ly trade with a market cap of $224

billion and over the past 12 months

Shares are up 22% looking out a little

bit further over the past 5 years shares

of AMD have climbed more than 300% AMD

reached a high of $227 per share back in

March but since then the stock has

retreated nearly 40% and you know me by

now I love buying highquality stocks on

pullbacks AMD Shares are now trading at

levels last seen in December of of 2023

however the company continues to expand

and build upon it we're seeing revenues

climb in the latest earnings reports

revenues have increased from 16.4

billion just a few years ago to more

than

22.8 billion over the trailing 12 months

with all of the AI capabilities being

put into computers and with consumers

looking to take advantage of those

efficiencies they can incorporate into

their everyday work lives I expect a

computer refresh cycle to take place

which will largely benefit a company

like AMD look here at the growth that

analysts are expecting over the course

of the next 3 years it averages out to

40% per year in terms of eps over that

period with EPS expectations of $349 per

share that has shares trading at a 39.6

times multiple and a 25 times multiple

using next year's estimates both of

those give the company a PEG ratio of

one or lower indicating great value

however given the concerns around

technology as a whole it would not

surprise me to see the shares move lower

looking at the charts here the next

level of support for shares of AMD will

be around

$130 and then after that closer to $120

so $1 120 would be the level I would

look to add this particular stock to my

portfolio and instead of just waiting

around to see if that stock comes down

I'm going to be utilizing options by

selling cash secured puts generating

income while I I wait for a stock to

come down to a price I'm willing to buy

it at so if you're looking for more AI

exposure in a stock not named Nvidia

definitely take a closer look at AMD and

that leads us to our second stock on the

list which is Merc stock ticker MRK MC

is a much different approach AMD high

growth and Technology MC pharmaceutical

and the defensive side of things with

Healthcare so if in fact things get

worse before they get better with in the

stock market a lot of folks will rotate

out of those high growth sectors and

over into more defensive sectors like

healthcare regardless MC is a company

that can work in any economic backdrop

the company currently has a market cap

of $319 billion and over the past 12

months Shares are up 177% zooming out

over the past 5 years shares of MRK are

up

61% MC just like AMD is another company

that's going to be reporting their

latest earnings results in the coming

days so I'm definitely going to take a

wait and see approach before making any

sorts of decisions K truda is faring

away the company's largest Blockbuster

drug but at the same time the company is

very robust very Diversified however K

truda being the leader saw their sales

grow more than 20% in the latest quarter

to nearly $7 billion they do have many

other up andc coming drugs as well with

a loaded Pipeline and in the latest

quarter management increased their

guidance some something we love to see

as investors so looking at expectations

for the next 3 years after a down year

in 2023 in terms of earnings we could

see EPS growing by 9% if we take out

2023 followed by 177% growth in 2025 10%

in the following year that averages out

to 12% earnings growth over the next 3

years using next year's earnings

expectations shares of Merc currently

trade at 12.6 times historically shares

have traded closer to 15.3 times so we

are already in a good spot from a PE

perspective a valuation perspective

however other valuation metrics don't

look as intriguing and if you're

interested in learning how I value

stocks and I go through my entire

valuation and analyzing checklist then

definitely check out my 6 week investing

accelerator course where we can work

one-on-one developing a personalized

strategy and action plan and also go

through my entire checklist showing

exactly how I analyze companies and how

I value companies before looking to add

them to my portfolio there'll be a link

down in the description below so back to

Merc if we're looking here you can see

that the 200 day moving average is

around $122 per share with another layer

of support below that at

$120 so these are the areas that I'm

looking to potentially add shares of

Merc to my portfolio but first and

foremost I want to see how earnings come

out prior to making any decisions and

that leads us to the third stock on our

list which is Salesforce stock ticker

CRM Salesforce is a Dow Jones component

it is a software company operating out

of the technology sector it has had a

rough year in 2024 it has seen slowing

growth it's still growing at a solid

rate just at the slowest rate that

investors have seen giving them reasons

to be concerned shares hit a 2024 low of

around $215 per share but they have

crawled back gaining back some of those

losses to now trading closer to $260 per

share shares of CRM currently have a

market cap of $249 billion over the past

12 months Shares are up 14% And over the

past 5 years up about

61% pretty close to that of MC as I

mentioned the company's latest earnings

report wasn't all that great that

slowing growth really concerned

investors moving forward and being a

large component of the Dow J own

industrial we saw that entire index sell

off at the same time however that

slowing growth I believe is more of a

blimp in the radar something that can be

fixed and will be fixed when it comes to

Salesforce they are building a lot of

efficiencies for companies and many

companies out there as we go through

another subcycle as the economy

strengthens again where companies will

be looking to invest in making their

processes a lot more efficient how do

they do that by utilizing a lot of tools

that sales Force has Salesforce has been

investing heavily into AI as has many

other companies and they recently

partnered with workday to develop an AI

powered assistant to handle many HR

related tasks this could be a big growth

driver for both companies as more and

more companies look to automate more

tasks looking here you can see that

analysts are looking for double- digigit

EPS growth averaging around 15% per year

over the next 3 years using next

12-month earnings shares of CRM

currently trade at a forward PE m

multiple of 23.9 times for comparable

purposes this is a stock that has traded

around 42.9 times over the past 5 years

and 38 times over the past 3 years this

is a sizable discount to those but one

that deservedly came down given the

slowing growth this is the company that

was growing at a much faster clip in

recent years so the decline in earnings

is warranted so what are the next levels

of support from a technical perspective

looking here you could see that first

level of support is going to be around

$245 per share if it breaks that that'll

be around

$229 per share next falling down to

$212 which was how far the stock plunged

after its latest earnings report in

terms of looking to buy this is a stock

that looks rather intriguing right now

but I would like to see it pull back and

given the concerns on the technology

sector as a whole or the market as a

whole I would like to first see those

shares come down below $250 per share

before I truly consider starting to look

to buy shares of CRM for my portfolio

and that leads us to stock number four

which is meta platforms stock tier

mea this is a stock that needs no

introduction at all there's already been

movies and documentaries shown about the

creation of meta platforms which was

formerly Facebook created by Mark

Zuckerberg and his friends within their

dorm room so what is the Intrigue you

might ask when it comes to investing in

meta platforms well for starters I

believe we're going to see a bounceback

in digital advertising and number two I

know you probably haven't heard this at

all but there's a presidential election

coming at the end of this year and in

fact we have a new candidate on the

ballot so what does a new candidate this

late need to do they have a lot of

catching up to do what do you need to do

to catch up you need a lot of

advertising where are you likely going

to advertise how about the likes of

Facebook Instagram

or even across the web as well which is

why I also like the likes of alphabet my

largest individual holding metap

platforms currently has a market cap of

$1.1 trillion easily the largest company

on our list today over the past 12

months Shares are up

55% and over the past 5 years Shares are

up

125% when it comes to earnings growth

meta platforms isn't growing as fast as

it once did but when you have those type

of growth figures year in and year out

those become really tough comparables to

keep up unless you're of course Nvidia

for meta you can see that analysts are

still calling for a good amount of

growth moving forward averaging around

21% growth per year moving forward using

next year's earnings this is a MAG s

stock that you can acquire for below 20

times PE for a stock that has

historically traded closer to 25 times

over the past 5 years but closer to 21

times over the past 3 years so the

discount does not look as great this

stock is one that does have some work to

do before I would consider jumping in I

would like to see that stock pull back

to below $400 or around $400 per share

which is where we saw it plunge to after

that latest earnings report and what

happened during that report we saw them

beat on earnings however investing isn't

about as much as what you did for me

it's more about what you're going to do

for me and the guidance they gave they

brought down Revenue guidance and they

increased cas Capital expenditures two

things going in the wrong direction so

there we just looked at four completely

different companies four companies I

don't own any of right now but four

companies on my watch list and I will be

ready when those opportunities if those

opportunities persist down in the

comments section below let me know what

you think of these four companies do you

own any of these four companies and what

levels would you be willing to buy these

four companies at and if you haven't

done so yet make sure you smash that

like button down below Subs subscribe to

the channel and we'll see you in the

next one take care

[Music]