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Just a few years ago, it seemed that electric vehicles were never going to “catch on,” whether that was because of price, possible reliability issues, or, most importantly, range anxiety. (Range anxiety is the fear that the electric vehicle will not have enough battery to reach its destination or the next charging station, ultimately leaving the driver stranded.)
But, better, much better battery technology, vastly more vehicle and brand options for consumers to pick from, and exponentially more charging stations located all over the country, have changed consumers’ minds about the electric car.
While a large number of new, start-up car manufacturers are developing only electric vehicles, one significant change we are seeing is that almost every major car manufacturer is already offering fully electric vehicles or plans to do so in the next few years.

This is nice because we can get our iconic-looking vehicles in electric form; think the Ford F150 pickup truck, the Jeep Grand Cherokee, or even the gas-guzzling Hummer!
Most people don’t like change. Thus changing the way a vehicle looks and what powers it may have been some of the reasons consumers didn’t rush to get an electric car a few years ago but are now more willing to do so.
Regardless of the reason or reasons why more people are purchasing electric vehicles, the fact is, it appears electric vehicles are not only here to stay but may be the only type of cars on the road in just a few decades. This major shift in how we move from one place to another can also be a massive windfall for your portfolio.
Even though some people may feel they missed the EV investment because they didn’t buy Tesla 5 years ago, there are still plenty of opportunities out there that you can put money into today and reap the rewards for decades to come.
Let’s take a look at a few Exchange Traded Funds that will expose you to not just car manufacturers in the EV space but also crucial materials and technologies that EVs need to operate.
The first two are ETFs that focus on the production of electric vehicles and the future of transportation. The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) and the Fidelity Electric Vehicles and Future Transportation ETF (FDRV) invest in essentially the same companies.
However, each has just slightly different top holdings, the number of holdings, and performance. The expense ratio is the most significant difference between the two ETFs, with KARS at 0.70% and FDRV at just 0.39%.
Global X Autonomous & Electric Vehicles ETF (DRIV) is a little of a hybrid electric car ETF. It invests in stocks in the development, production, and supporting technologies of electric vehicles and autonomous driving. DRIV’s top holdings include Apple, NVIDIA, Microsoft, Toyota, Alphabet, Intel, Tesla, and General Motors.
The SPDR S&P Kensho Smart Mobility ETF (HAIL), the iShares Self-Driving EV and Tech ETF (IDRV), and the Simplify Volt RoboCar Disruption and Tech ETF (VCAR) are all good options if you are looking for an ETF that is more focused on self-driving.
All three still have a lot of exposure to electric vehicles, since up to this point, most autonomous vehicle technologies have been focused on EVs, not combustion engine vehicles.
When I think about self-driving, despite Tesla having a competent self-driving car, I think we are still about five to ten years away from this technology catching on with the mass public. Almost the same timeline that it has taken for electric vehicles to catch on.
So, investing in it today could be a little like investing in Tesla five or ten years ago. But, before you run out and buy one of the above ETFs, you need to remember these are long-term buy-and-hold investments, so know that you will need to be very patient.
And finally, you could always just focus more on the battery side of the EV market because, after all, the electric vehicle will probably not make it very far without the batteries.

The Global X Lithium & Battery Tech ETF (LIT), the Amplify Lithium & Battery Technology ETF (BATT), the WisdomTree Battery Value Chain and Innovation Fund (WBAT), or the S&P Global Core Battery Metals ETF (ION) are all good options.
The four ETFs focus on companies developing, building, or even mining the metals needed for today’s batteries. We all know mining companies are difficult to invest in, so having a wide range of them and some companies that aren’t in the mining industry could be a great way to gain exposure and reduce risk.
Just because you may have missed out on Tesla doesn’t mean you need to miss out on the whole shift to EVs.
Buying ETFs that are focused on EVs is also a great way to spread out your money and not be so focused on “the winner” of the EV race because, just like internal combustion vehicles, there will be a lot of winners in the EV world.
Matt ThalmanINO.com ContributorFollow me on Twitter @mthalman5513
Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

It’s been a rollercoaster ride of a year for the Gold Miners Index (GDX), with the ETF starting the year up more than 15% and massively outperforming the major market averages, only to suffer a 48% decline over the next five months.
Since then, the GDX has returned to outperforming, and some of the best names, like i-80 Gold (IAUX), are now up more than 50% from their lows.
This extreme volatility is why it can be difficult to trade the Gold Miners Index successfully. The reason is that one must be ultra-patient when establishing new positions to avoid large drawdowns during the down cycle, but being too complacent at the lows can be costly as the index can turn on a dime when it does bottom.

Fortunately, while several of the best names are already off to the races and out of low-risk buy zones, a couple of stocks are still in the proverbial stable and trading at attractive valuations. In this update, we’ll look at two names that offer large safety margins.
Sandstorm Gold (SAND)
Sandstorm Gold (SAND) is a $ 1.6 billion precious metals royalty/streaming company.
It finances developers and producers in the gold and silver space, giving them capital upfront to build or expand their assets. In exchange, Sandstorm receives either a royalty on the asset over its mine life or a stream on the asset, meaning that Sandstorm has a right to buy a percentage of metal produced at a fixed cost well below the current spot price of gold/silver.
Since royalty/streaming companies typically have royalties/streams on over 20 assets, they are much more diversified than producers with 5-10 mines.
They also have much higher margins, given that they do not have to pay for labor, chemicals, fuel, explosives, and transportation but simply sit back and collect their metal deliveries from these assets.
Finally, the major benefit to owning royalty/streaming companies is that they are not required to spend annually on sustaining capital to maintain an operation, including mine development, drilling, and tailings expansions. In fact, any added resources are very beneficial, given that the royalty/stream is bought and paid for already. Hence, this is a proverbial cherry on top.
Unfortunately, while Sandstorm benefits from this superior model that carries very low risk, the company has had a tough year in 2022. This is because it went out and completed two major acquisitions ($1.1BB value), a smart move, and these deals transformed its portfolio from an average royalty/streamer to one with a phenomenal portfolio.
The issue was that Sandstorm ended up biting off a little more than it could chew with an increase in debt while gold, silver, and copper prices plunged in the fall, impacting its cash flow.
The result was that Sandstorm chose to do a $90MM capital raise to reduce its leverage ratio and pay down a portion of its debt, and this certainly wasn’t received well by the market, with these funds raised at a multi-year low for the stock.
However, while this certainly was painful for investors already in the stock, with SAND hitting new 52-week lows, this negative sentiment surrounding the deal has provided an excellent entry point into the stock for new patient investors looking for names trading at attractive valuations.
In fact, SAND is now the cheapest precious metals royalty/streaming stock in its peer group.
(Source: FASTGraphs.com)
This deep discount to fair value is even though SAND’s portfolio has never looked better (increased diversification), and it has the best growth profile sector-wide, expecting to see annual gold-equivalent ounce [GEO] sales grow from ~80,000 in FY2022 to ~155,000 in FY2025.
If achieved, Sandstorm will generate over $200MM in cash flow in FY2025, making Sandstorm very attractively valued at just 8x FY2025 cash flow for a company with ~80% margins.
Based on what I believe to be a fair multiple of 19.0x cash flow (in line with its historical average) and FY2023 cash flow estimates of $0.41, I see a fair value for SAND of $7.80, translating to a 50% upside from current levels.
However, this assumes no upside in the gold price and doesn’t factor in the significant growth in attributable production in 2024 and 2025.
So, for patient investors, SAND’s cash flow per share should increase to $0.68 in FY2025, placing its fair value at $12.90, translating to a 148% upside to its 2-year target price.
Hence, I see the stock as a steal at current levels and plan to continue to accumulate below $5.20.
SSR Mining (SSRM)
SSR Mining (SSRM) is an intermediate gold producer with four operating mines. These include the Copler Mine in Turkiye, the Marigold Mine in Nevada, the Puna Mine in Argentina, and the Seabee Mine in Canada.
This intermediate producer was one of the best-performing precious metals stocks in 2021, with an aggressive buyback program, the announcement of a dividend, and the subsequent increase in its dividend ($0.28 annualized vs. $0.20).
Meanwhile, the company finished 2021 on a high note, producing ~794,000 GEOs at all-in-sustaining costs of $955/oz, beating its output guidance and its cost guidance for the year.
Unfortunately, while 2021 was an exceptional year that helped the stock outperform most of its peers, 2022 has been nearly the exact opposite from an operational standpoint.
For starters, the company has seen slower leach times than planned which has impacted production at Marigold.
Secondly, the company had a leak of leach solution with diluted cyanide at its Copler Mine in Turkiye, forcing a suspension of operations and a major shortfall in expected output this year. Since Copler is the company’s largest mine with its lowest costs, this severely impacted the company’s Q3 results.
As it stands, SSR Mining has produced less than 500,000 GEOs this year, and all-in-sustaining costs are sitting well above $1,200/oz year-to-date, with margins plunging from $844/oz in Q3 2021 to [-] $105/oz. This was impacted by a lower gold price and much higher operating costs due to inflationary pressures, plus a limited contribution from Copler.
Not surprisingly, the stock has found itself more than 40% off its all-time highs, and it’s been one of the worst-performing gold producers in H2-2022, with free cash flow generation falling off a cliff.
(Source: Company Filings, Author’s Chart))
The good news is that the Copler Mine has since restarted, and its Seabee Mine has a strong Q4 ahead. Plus, its Marigold Mine benefits from much higher grades, setting the company up for a much stronger quarter in Q4.
In addition, the company is now benefiting from a recovery in the gold price, and it has much easier comparisons ahead on a year-over-year basis after lapping what’s been a very difficult year.
Finally, the company continues to have exploration success across its properties, setting it up for organic growth later this decade.

So, while it was hard to justify owning the stock above $24.00, the setup is much more attractive with the stock below $15.50.
Based on a conservative cash flow multiple of 9.5 (reflecting its strong organic growth profile and track record of generous capital returns to shareholders), I see a fair value for the stock of $20.40 (FY2023 estimates: $2.15).
This points to a 32% upside from current levels, but investors can expect closer to a 37% total return when incorporating buybacks and dividends.
So, with SSRM set up for a better year and sentiment in the gutter, I would view further weakness below $14.90 as a buying opportunity.
While there are several names to choose from to play the recovery in the gold price, I see SAND and SSRM as two of the more undervalued names, with SAND being a clear example of a massive valuation disconnect.
In summary, I see SAND as a Buy below $5.20 per share and SSRM as a buy below $14.90 per share.
Disclosure: I am long SAND
Taylor DartINO.com Contributor
Disclaimer: This article is the opinion of the contributor themselves. Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information in this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying small-cap precious metals stocks, position sizes should be limited to 5% or less of one’s portfolio.

Solar tracking systems and related products manufacturer and supplier Array Technologies, Inc. (ARRY) surpassed the consensus revenue and EPS estimates for the third quarter of fiscal 2022 by 29.8% and 77.4%, respectively.
The company reported revenue of $515 million, compared to $188.70 million in the prior-year period. The revenue growth was driven by the acquisition of STI Norland and strong organic growth within its legacy Array business.
The company’s net income came in at $28 million compared to an adjusted net loss of $11.80 million in the year-ago quarter. Net income per share came in at $0.18 versus an adjusted net loss per share of $0.09 a year ago.
Additionally, ARRY produced $102 million of free cash flow during the quarter, allowing the company to pay down its revolving credit facility fully. At quarter-end, the company had access to $166.6 million of the revolving facility and $62.8 million of cash for total liquidity of $229 million, excluding the additional preferred share availability of $100 million.
“Overall, our performance in the third quarter demonstrates not only the strength of customer demand for our product and service offerings but also the continued effects of our focused efforts to improve our operational execution in all aspects of the business,” said ARRY’s CEO, Kevin Hostetler.

On August 16, 2022, the Inflation Reduction Act was passed by Congress and signed into law by President Joe Biden. It represents a significant investment by the federal government in renewable energy and related technologies. It includes tax incentives that will spur domestic solar manufacturing.
The IRA is expected to allow the U.S. solar market to grow 40% through 2027, equal to 62 gigawatts (GW) of additional solar capacity, according to forecasts in the U.S. Solar Market Insight Q3 2022 report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, a Verisk business.
“This report provides an early look at how the Inflation Reduction Act will transform America’s energy economy, and the forecasts show a wave of clean energy and manufacturing investments that will uplift communities nationwide,” said SEIA President and CEO Abigail Ross Hopper.

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Shares of ARRY have gained 23.6% over the past month and 94.9% over the past six months to close the last trading session at $21.61. The stock is currently trading above its 50-day and 200-day moving averages of $17.74 and $13.97, respectively.
Source: MarketClub
Here is what could influence ARRY’s performance in the upcoming months:
Positive Recent Developments
On November 7, ARRY was awarded a contract to supply its DuraTrack® solar trackers for EDF Renewables North America, one of North America’s largest renewable energy developers. The company will supply its DuraTrack® solar trackers to an over 750 megawatt (MWdc) Ohio project on nearly 4,500 acres of land.
ARRY’s CEO, Kevin Hostetler, said, “By winning this project, Array is further solidifying its position as a leader in the utility-scale solar industry and demonstrating our ability to deliver quality products on time for our customers consistently.”
In September, ARRY launched its two newest product offerings, Array OmniTrack™ and Array STI H250. Launching these product families expands the company’s existing line of DuraTrack® products. ARRY’s broad portfolio of innovative product offerings continues to meet the growing demand for utility-scale solar energy installations.
Robust Financials
For the fiscal 2022 third quarter ended September 30, 2022, ARRY’s revenues increased 173% year-over-year to $515.02 million, while its gross profit grew 1,269.4% from the year-ago value to $80.22 million. The company’s income from operations came in at $18.52 million, compared to a loss from operations of $19.52 in the prior-year period.
Furthermore, the company’s adjusted EBITDA stood at $55.42 million, up 1,526.1% year-over-year. Its net income was $28 million compared to an adjusted net loss of $11.80 million during the same period in the previous year, while its net income per share was $0.18 versus an adjusted net loss per share of $0.09 during the last year’s quarter.
Favorable Analyst Estimates
Analysts expect ARRY’s revenue for the fiscal 2022 fourth quarter (ending December 2022) to come in at $345.21 million, indicating an increase of 57% from the prior-year period. The consensus EPS estimate of $0.11 for the ongoing quarter indicates a 283.3% year-over-year increase.
Moreover, the company has an impressive earnings surprise history since it surpassed the consensus EPS estimates in three of the trailing four quarters.
In addition, analysts expect ARRY’s revenue and EPS for the current fiscal year to increase by 85.5% and 414.3% from the previous year to $1.58 billion and $0.36, respectively. Also, the company’s revenue and EPS for the next year are expected to rise 21.7% and 177.8% year-over-year to $1.93 billion and $1, respectively.
Technical Indicators Show Promise
In addition to looking attractive from the fundamental point of view, ARRY shows strong trends, which makes it a solid stock to buy now.
According to MarketClub’s Trade Triangles, ARRY has been trending UP for all the three-time horizons. The long-term trend for ARRY has been UP since June 6, 2022, its intermediate-term trend has been UP since October 31, 2022, and its short-term trend has been UP since November 9, 2022.
Source: MarketClub
The Trade Triangles are our proprietary indicators, comprised of weighted factors that include (but are not necessarily limited to) price change, percentage change, moving averages, and new highs/lows. The Trade Triangles point in the direction of short-term, intermediate, and long-term trends, looking for periods of alignment and, therefore, intense swings in price.

In terms of the Chart Analysis Score, another MarketClub proprietary tool, ARRY, scored +90 on a scale from -100 (strong downtrend) to +100 (strong uptrend), indicating that the uptrend is likely to continue. While ARRY shows intraday weakness, it remains in the confines of a bullish trend. Traders should use caution and utilize a stop order.

The Chart Analysis Score measures trend strength and direction based on five different timing thresholds. This tool considers intraday price action; new daily, weekly, and monthly highs and lows; and moving averages.
Click here to see the latest Score and Signals for ARRY.
What’s Next for Array Technologies, Inc. (ARRY)?
Remember, the markets move fast and things may quickly change for this stock. Our MarketClub members have access to entry and exit signals so they’ll know when the trend starts to reverse.
Join MarketClub now to see the latest signals and scores, get alerts, and read member-exclusive analysis for over 350K stocks, futures, ETFs, forex pairs and mutual funds.
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Best,The MarketClub Team[email protected]

Please take a look at the graph below. These futures left their competitors far behind with a tremendous gain of almost twenty percent in only one month.
Chart courtesy of finviz.com
On a one-month horizon, silver’s meteoric price increase is undeniable. None of the metals can even come close. Copper is lagging eight percent behind as gold futures show only half the performance of silver. By the way, I am about to show you the relative dynamics of these top metals in the chart below.
Source: TradingView
The chart above visualizes the comparative superiority of silver futures over gold futures that we revealed in the first graph. The white metal has been reversing its nine-year losses since the bottom of 2011 at 30 oz up to the all-time high at 127 oz in 2020, where the large age long cycle has been completed.

I wrote about it more than two years ago in the post titled “Diamond” Pattern Pushed Gold To Sky Vs. Silver. That piece has attracted a lot of attention as it was shared more than two hundred times with a bunch of your valuable comments.
From the record-high price in 2020 to 2021, the ratio has been falling heavily as it lost half of its value from 127 oz to 62 oz. I marked it as the AB segment within a larger model.
The next stage was a pullback that was close to hitting the 61.8% Fibonacci retracement at 102 oz. At 98 oz, the ratio has peaked slightly lower as marked by the letter C.
The downtrend that followed broke out instantly pushing the price back into the old range that was established between the peak of 2008 at 88 oz and the valley of 2011 at 30 oz.
Last month, the ratio closed below the strong support of the purple moving average. The RSI indicator has confirmed that move as well sinking below the crucial 50 level into a bearish area.
The CD part would touch 33 oz once it travels the same distance as the AB segment. It is close to the bottom of 2011 at 30 oz. The ratio should lose more than half of its current value to get there. Indeed, it’s a huge gain for silver.
Unless the ratio breaks below the bottom of 2021 at 62 oz, this scenario would be doubtful. The invalidation trigger sits at the current maximum of 98 oz established in September.  

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Back in September, I’ve shown you an interesting chart of correlation between the Gold/Silver ratio and the S&P 500 index.

In regular conditions, these instruments have the opposite dynamics. The ratio acts as a barometer of risk on/risk off sentiment in the market. The expected price decline alongside silver’s strength versus gold could protect the S&P 500 index from further collapse, although its effects may take some time to materialize.   

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Intelligent trades!
Aibek BurabayevINO.com Contributor
Disclosure: This contributor has no positions in any stocks mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

When FTX, the cryptocurrency exchange founded and run by Sam Bankman-Fried, filed for bankruptcy, big and small investors experienced significant losses.
Some of these investors had money in FTX and, to some extent, knew they were taking on risk by doing so. Other investors simply were invested in funds or even pensions and honestly had no clue of their exposure to such a toxic business.
One large group of investors who likely had no clue they were invested in FTX, or even cryptocurrencies of any kind, where those who are beneficiaries of the Ontario Teachers’ Pension Plan.
After FTX filed for bankruptcy, the Ontario Teachers’ Pension Plan announced that it would write down its entry stake in FTX to zero. The pension fund had $95 million invested in FTX, which is now essentially gone.
Furthermore, what makes this situation even slightly more painful, is that the Teacher’s Pension manager just started investing in FTX in October of 2021 with an initial investment of $75 million and then added another $20 million in January 2022.
The date of the investments is important for two reasons. The first reason is that the whole investment has been lost just over a year from the initial investment. The second reason, and probably more important, is that the teachers who are part of the Pension fund didn’t have much time to even realize they were invested in FTX.

I know what you are thinking, “they had a year to figure out their pension fund was invested in FTX.” Yes, I understand the investment was a year old. However, funds don’t have to disclose their holdings right when the purchases are made.
Furthermore, while most funds disclose their holdings quarterly, they are only required to do so yearly. I don’t know how often the Ontario Teachers’ Pension Fund announces its holdings, but if they disclose yearly, investors may have only been told about the initial $75 million invested in October 2021 and had not even been informed of the additional $20 million invested in January 2022.
None of that matters because I’m just using the Ontario Teachers’ Pension Fund as an example. There are tons of private and publicly traded funds that you as an investor could have money tied up in, which may be investing in businesses that you wouldn’t touch with a 10-foot, sorry, 100-foot pole.
Whether it is FTX and cryptocurrencies, marijuana stocks, alcohol stocks, or even just lowly-rated ESG businesses, when you turn your money over to another person to invest and manage for you, they may buy companies on your behalf that you would not personally feel comfortable investing in.
While I constantly hear the argument that the individual investor doesn’t know enough to properly handle their own money, before you blindly turn your hard-earned cash over to someone else, remember that managing your own money may be better than “trusting” a so-called professional.
While every money manager has the same goal in mind, to give you back more money than you gave them, they may not all have the same ‘morals’ and-or risk tolerance that you have.
If you don’t like to invest in the “Sin” stocks or new technologies that carry high risk, it may be better for you to invest your own money yourself. Or, it would help if you were super precise with your money manager about what you are and are not comfortable with owning.
But, even if you do go the route of investing your money yourself, you need to be very diligent with your research about what even you are buying.
For example, if you buy the SPDR S&P 5500 ETF (SPY), you will own a number of the so-called ‘Sin” stocks. Stocks like Altria (MO), Constellation Brands (STZ), MGM Resorts International (MGM), and a number of defense stocks that make weapons of war are all held in SPY.
If you want to avoid the sin stocks, start investing in Socially Responsible (SRI) Exchange Traded Funds or Environmental, Social, and Governance (ESG) Exchange Traded Funds. It is easy to find these newer groups of ETFs, but you can start with the iShares ESG Aware MSCI USA ETF (ESGU) or the Harbor Corporate Culture ETF (HAPI).

However, just because they have ESG in their name or state that they only invest in certain types of companies, you still need to perform your due diligence and confirm that they adhere to your standards. Just like you would if you handed your money to a financial advisor.
You will never be able to avoid fraud situations, but you can do an excellent job at controlling what types of business your money is being invested in if you do just a little work.
Matt ThalmanINO.com ContributorFollow me on Twitter @mthalman5513
Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

It’s been a volatile year for the major market averages, and the Nasdaq Composite (COMPQ) remains down 28% for the year and on track for its worst annual decline since 2008.
The difference this time is that it’s coming off a multi-year win streak and a more than decade-long bull market, making the current sell-off look more similar to 2000 than the 2008/2009 lows.
That said, for investors willing to look outside of the traditional FAANG names that have massively outperformed for years, there are always opportunities to hunt down alpha. This update will look at two general market names trading at deep discounts to fair value.
Builders FirstSource (BLDR)
Builders FirstSource (BLDR) is the largest supplier of structural building products, value-added components, and services to the professional market for the single-family and multi-family construction/repair/remodeling market in the United States.
The company has ~560 distribution/manufacturing locations across 42 states and boasts a market cap of $9.7BB.

Unfortunately, though, with the housing market teetering on a recession with new and existing home sales down sharply, investors have become worried about buildings products name, and Builders FirstSource hasn’t been immune from this anxiety despite continuing to put up phenomenal results.
In fact, the company just recently reported revenue of $5.8BB (+ 5% year-over-year) and adjusted annual EPS of $5.20, a 53% increase from the year-ago period.
Notably, these results were lapping already difficult comparisons from the year-ago period, with Q3 2021 annual EPS up 308% in the year-ago period. The strong growth in earnings was driven by ~20% growth in its higher-margin value-added products combined with aggressive share repurchases, repurchasing $2.0BB in shares to date (~30% of common shares).
Normally, I would be skeptical of a company growing annual EPS through share buybacks and buying back shares to this degree, given that many companies have a bad habit of buying back shares to prop up earnings vs. doing it opportunistically.
However, Builders FirstSource’s core business is strong with growth in its key segments (core organic sales in Value-Added Products up 20%, Repair, Remodel & Other up over 30%), and the stock is significantly undervalued.
In fact, BLDR is trading at just 9.3x FY2023 earnings estimates at a share price of $63.00, even if annual EPS is expected to fall off a cliff next year ($6.75 estimates vs. $17.60 in FY2022).
So, while the peak in earnings isn’t ideal, I see it as mostly priced into the stock here.
(Source: FASTGraphs.com)
Based on what I believe to be a fair multiple of 11.5x earnings (historical multiple: 15.0) and FY2023 estimates of $6.75, I see a fair value for the stock of $77.60.
This points to a 23% upside from current levels, which may not appear that attractive, but I believe these estimates are far too conservative.
In fact, I would not be surprised to see annual EPS of $7.10 or better, translating to a fair value of $81.65 (30% upside) even using a conservative earnings multiple.
So, with BLDR out of favor and trading at a very reasonable valuation, I would view any pullbacks below $61.00 as buying opportunities.
Perrigo (PRGO)
Perrigo (PRGO) is a mid-cap company that develops over-the-counter and generic pharmaceuticals, diagnostic, and nutritional products.
The company’s products include YourBrand Ibuprofen, Allergy Relief, Acetaminophen, Minoxidil, Acid Reducers, and many other products, including Infant Formula.
The latter is is in short supply, and Perrigo recently scooped up Nestle’s Good Start brand and Wisconsin Plant as part of a $170MM investment in its US infant formula manufacturing.
Following the acquisition, Perrigo plans to expand plant capacity, allowing it to meet the rising demand for its store-brand infant formula that it’s struggled to fill due to the closure of the Michigan Plant held by Abbott Laboratories (ABT).
(Source: FASTGraphs.com)
For those unfamiliar with Perrigo and looking at its chart, its been a steep fall from grace and it’s undoubtedly in a sharp downtrend.
The most recent leg down from $48.00 was related to the stock being punished for its acquisition of HRA Pharma in a deal valued at $1.8BB, and over the past five years, PRGO is down 85% from its highs of $215.00.
Normally, a stock that has lagged this badly would be one to be concerned about, and the last thing I’m interested in is negative earnings trends.
However, as we can see from the above chart, annual EPS looks like it will bottom out in FY2021 and march higher to $2.96 in FY2023 and $3.29 in FY2024.
I think a beat is possible with a tailwind as consumers trade down within self-care products due to shrinking budgets, and they go from brand names to generic no-name brands like those in Perrigo’s portfolio.
Lastly, Perrigo will see a further tailwind from a tight infant formula market as it ramps production.

Given these tailwinds combined with the fact that annual EPS looks to have bottomed out and PRGO’s attractive dividend yield of ~3.30% at $31.80 per share, I see a reason to be excited for newer investors, especially with it being a defensive name.
However, the amazing thing is that despite being a defensive name in a period where defense stocks have done very well, Perrigo is trading at its most attractive valuation in years.
In fact, at a share price of $31.80, it’s trading at just ~10.7x FY2023 earnings estimates vs. a historical multiple of 16.6x earnings.
Even if we assume a more conservative multiple of 14.9 (10% discount), PRGO’s fair value would come in at $44.10, pointing to a nearly 40% upside from current levels.
So, for investors looking for a safe way to diversify their portfolio, I see PRGO as a steal under $31.80.
While finding value in the current market isn’t easy after a 15% rally off the lows for the S&P 500, I see PRGO and BLDR as two stand-out names that are being unfairly punished and ignored by the market temporarily.
In summary, I see PRGO as a Buy at $31.80, and I would view pullbacks below $61.00 in BLDR as buying opportunities.
Disclosure: I am long PRGO
Taylor DartINO.com Contributor
Disclaimer: This article is the opinion of the contributor themselves. Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information in this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying small-cap precious metals stocks, position sizes should be limited to 5% or less of one’s portfolio.

With the moderation of inflation in October and indications of the Fed following suit with a slower interest rate hike next month, the festive season promises to be merrier than expected for consumers and businesses alike.
Retail and consumer businesses whose demand and margins are resilient enough to make them relatively immune to macroeconomic headwinds stand to gain from the increased consumer spending during the holiday season.

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Hence, it would be opportune to add Walmart Inc. (WMT), Flowers Foods, Inc. (FLO), and The Simply Good Foods Company (SMPL) as some technical indicators point to sustained upsides that could leave you thankful this season.
Walmart Inc. (WMT)
The retail giant WMT offers opportunities to shop an assortment of merchandise and services at everyday low prices (EDLP) in retail stores and through e-commerce platforms.

The company operates through three segments: Walmart U.S.; Walmart International; and Sam’s Club. Over the last three years, WMT’s revenues have grown at a 4.8% CAGR.
For the third quarter of the fiscal year 2023 ended October 31, 2022, WMT’s total revenues increased 8.7% year-over-year to $152.81 billion, with strength in Walmart U.S., Sam’s Club U.S., Flipkart, and Walmex.
During the same period, the company’s adjusted operating income increased 4.6% year-over-year to $6.06 billion, while its adjusted EPS increased 3.4% year-over-year to $1.50.
WMT’s revenue and EPS for the fiscal year ending January 2024 are expected to increase 2.9% and 8.7% year-over-year to $619.49 billion and $6.60, respectively. The company has an impressive earnings surprise history as it surpassed the consensus EPS estimates in three of the trailing four quarters.
Owing to its strong performance and solid growth prospects, WMT is currently commanding a premium valuation compared to its peers. In terms of forward P/E, WMT is currently trading at 25.13x compared to the industry average of 19.30x. Also, its forward EV/EBITDA multiple of 13.55 compares to the industry average of 12.03.
WMT’s stock is currently trading above its 50-day and 200-day moving averages of $137.68 and $136.70, respectively, indicating a bullish trend. It has gained 9.3% over the past month and 24.3% over the past six months to close the last trading session at $152.42.
MarketClub’s Trade Triangles show that WMT has been trending UP for all three-time horizons. Its long-term trend has been UP since October 28, 2022, while its intermediate-term trend has been UP since October 20, 2022. Its short-term trend has also been UP since November 15.
Source: MarketClub
The Trade Triangles are our proprietary indicators, comprised of weighted factors that include (but are not necessarily limited to) price change, percentage change, moving averages, and new highs/lows. The Trade Triangles point in the direction of short-term, intermediate, and long-term trends, looking for periods of alignment and, therefore, strong swings in price.
In terms of the Chart Analysis Score, another MarketClub proprietary tool, WMT scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend), indicating that the stock is in a strong uptrend that is likely to continue. Traders should protect gains and look for a change in score to suggest a slowdown in momentum.

The Chart Analysis Score measures trend strength and direction based on five different timing thresholds. This tool considers intraday price action; new daily, weekly, and monthly highs and lows; and moving averages.
Click here to see the latest Score and Signals for WMT.
Flowers Foods, Inc. (FLO)
FLO is involved in the production and marketing of packaged bakery foods. The company offers fresh bread, buns, rolls, snack cakes, tortillas, frozen bread, and rolls.
Its portfolio includes brands such as Nature’s Own, Dave’s Killer Bread (DKB), Wonder, Canyon Bakehouse, Tastykake, and Mrs. Freshley’s.
Over the last three years, FLO’s revenues have grown at a 4.8% CAGR, while its EBITDA has grown at 6.1% CAGR. During the same period, the company’s net income has grown at 6.2% CAGR.
For the fiscal 2022 third quarter ended October 8, 2022, FLO’s sales increased 12.7% year-over-year to a quarter-record $1.16 billion.
During the same period, the company’s adjusted EBITDA increased 1.6% year-over-year to $120.4 million, while the net income increased 4.3% to $40.5 million. Adjusted EPS for the quarter came in at $0.30.
Analysts expect FLO’s revenue for the fiscal year 2022 to increase 11.5% year-over-year to $4.83 billion, while its EPS for the ongoing year is expected to grow 3.2% year-over-year to $1.28.
In terms of forward P/E, FLO is currently trading at 23.05x compared to the industry average of 19.30x. Also, its forward EV/EBITDA multiple of 14.25 compares to the industry average of 12.03.
FLO’s stock is currently trading above its 50-day and 200-day moving averages of $26.94 and $26.77, respectively. It has gained 8% over the past month and 13.3% over the past six months to close the last trading session at $29.59.
MarketClub’s Trade Triangles show that FLO has been trending UP for all three-time horizons. The long-term trend for FLO has been UP since October 28, 2022. Its intermediate and short-term trends have been UP since October 13 and November 16, respectively.
Source: MarketClub
In terms of the Chart Analysis Score, FLO scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend), indicating that it is in a strong uptrend that is likely to continue. Traders should protect gains and look for a change in score to suggest a slowdown in momentum.

Click here to see the latest Score and Signals for FLO.
The Simply Good Foods Company (SMPL)
SMPL develops, markets, and sells nutritional foods and snacking products. The company’s product portfolio comprises nutrition bars, ready-to-drink (RTD) shakes, snacks, and confectionery products.
Over the last three years, SMPL’s revenue has grown at a 30.7% CAGR, while its EBITDA has grown at a 34.5% CAGR. During the same period, the company’s total assets have grown at 22.4% CAGR.
For the fourth quarter of the fiscal year, ended August 27, 2022, SMPL’s net sales increased 5.5% year-over-year to $247.2 million due to better-than-expected retail takeaway.
The company’s adjusted EBITDA increased 5.2% year-over-year to $51 million during the same period.
SMPL’s quarterly net income increased 65.4% year-over-year to $30.1 million. This translated to an adjusted EPS of $0.36, up 24.1% year-over-year.
Analysts expect SMPL’s revenue and EPS for the fiscal ending August 2023 to increase 6.8% and 1.5% year-over-year to $1.25 billion and $1.61, respectively. Moreover, the company has impressed by surpassing consensus EPS estimates in each of the trailing four quarters.

Given its impressive prospects, SMPL is trading at a premium compared to its peers. In terms of the forward P/E, the stock is currently trading at 23.96x, compared to the industry average of 19.30x.
Also, its forward EV/EBITDA multiple of 17.14 compares to the industry average of 12.03.
SMPL’s stock is trading above its 50-day and 200-day moving averages of $34.78 and $36.39, respectively, indicating a bullish trend. The stock has gained 4.7% over the past month to close the last trading session at $38.68.
MarketClub’s Trade Triangles show that SMPL has been trending UP for all three-time horizons. The long-term trend for SMPL has been UP since October 26, 2022. Its intermediate and short-term trends have been UP since September 21 and November 15, 2022, respectively.
Source: MarketClub
In terms of the Chart Analysis Score, SMPL scored +90 on a scale from -100 (strong downtrend) to +100 (strong uptrend), indicating that the uptrend is likely to continue. While SMPL shows intraday weakness, it remains in the confines of a bullish trend.

Click here to see the latest Score and Signals for SMPL.
What’s Next for These Stocks?
Remember, the markets move fast and things may quickly change for these stocks. Our MarketClub members have access to entry and exit signals so they’ll know when the trend starts to reverse.
Join MarketClub now to see the latest signals and scores, get alerts, and read member-exclusive analysis for over 350K stocks, futures, ETFs, forex pairs and mutual funds.
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Best,The MarketClub Team[email protected]

The latest data shows signs of inflation cooling down. The food index increased 0.6% sequentially in October after a 0.8% increase in September. The food-at-home index rose 0.4% in October, registering the smallest monthly increase since December 2021.
Source: Trading Economics

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Over the recent past, packaged foods have grown in significance due to their easy-to-handle characteristics and hygienic properties. The global packaged food market is expected to reach $4.11 trillion by 2028, growing at a 4.5% CAGR. The market is also concurrently witnessing increased consumption of dairy products.
Packaged food company Lifeway Foods, Inc. (LWAY) produces and markets probiotic-based products internationally. Its primary product is drinkable kefir, a cultured dairy product. The company sells its products under the Lifeway and Fresh Made brand names and private labels.

The stock has gained 34.9% over the past year and 54.6% year-to-date to close its last trading session at $7.11. It is up 29.5% over the past month.
Source: TradingView
Here are the factors that could influence LWAY’s performance in the upcoming months:
Probiotics Market Growth
Probiotics are microbial species that support intestinal health in humans and animals. As consumers become more and more health conscious, the probiotics market is expected to expand. The global probiotics market is projected to reach $74 billion by 2030, expanding at 8.5% CAGR.
Solid Financials
For the fiscal third quarter that ended September 30, LWAY’s net sales increased 29.1% year-over-year to $38.14 million. Julie Smolyansky, LWAY’s President and Chief Executive Officer, attributed this quarter’s results to its core Lifeway Kefir business.
Its gross profit rose 8.5% from the prior-year quarter to $7.59 million. Its net income improved 104.8% year-over-year to $983 thousand. Its earnings per common share came in at $0.06, up 100% from the prior-year period.
Mixed Valuation
Regarding its forward P/E, LWAY is trading at 88.88x, 317% higher than the industry average of 21.31x. The stock’s forward EV/EBIT multiple of 61.61 is 281.9% higher than the industry average of 16.13.
On the other hand, in terms of forward EV/Sales, it is trading at 0.75x, 55.4% lower than the industry average of 1.67x. Its forward Price/Sales multiple of 0.76 is 36.5% lower than the industry average of 1.20.
Favorable Analyst Estimates for Next Year
The consensus EPS estimate of $0.38 for the next year (fiscal 2023) indicates a 375% year-over-year improvement. Likewise, the consensus revenue estimate for the same year of $152 million reflects an increase of 5% from the prior year. Analysts expect LWAY’s EPS to grow 10% per annum over the next five years.
Technical Indicators Look Promising
MarketClub’s Trade Triangles show that LWAY has been trending UP for two of three periods. The long-term trend has been UP since August 12, 2022, and the intermediate-term trend has been UP since November 7, 2022. However, the short-term trend has been DOWN since November 23, 2022.
Source: MarketClub
The Trade Triangles are our proprietary indicators, comprised of weighted factors that include (but are not necessarily limited to) price change, percentage change, moving averages, and new highs/lows. The Trade Triangles point in the direction of short-term, intermediate, and long-term trends, looking for periods of alignment and, therefore, strong swings in price.

In terms of the Chart Analysis Score, another MarketClub proprietary tool, LWAY scored +85 on a scale from -100 (strong downtrend) to +100 (strong uptrend). This indicates short-term weakness, but traders could look for the longer-term bullish trend to resume. Traders should continue to monitor the trend score and utilize a stop order.

Click here to see the latest Score and Signals for LWAY.
What’s Next for Lifeway Foods, Inc. (LWAY)?
Remember, the markets move fast and things may quickly change for this stock. Our MarketClub members have access to entry and exit signals so they’ll know when the trend starts to reverse.
Join MarketClub now to see the latest signals and scores, get alerts, and read member-exclusive analysis for over 350K stocks, futures, ETFs, forex pairs and mutual funds.
Start Your MarketClub Trial
Best,The MarketClub Team[email protected]

The market rally during the shortened holiday trading week of November 21st-25th should not be trusted just yet.
The Dow Jones Industrial Average rose 1.78% during the week, the S&P 500 increased by 1.53%, and the technology-heavy NASDAQ grew by 0.72%.
The move higher came for several reasons, but none materially changed the economy’s outlook over the coming six to twelve months.
The biggest news was from the Federal Reserve. The Fed’s meeting minutes from their November 1st and 2nd meeting pushed prices higher after several Fed members expressed interest in slowing the pace of rate hikes during future meetings.

Just the fact that the Fed is talking about reducing the amount of their rate increases is significant, and many economists applaud this move. Economists are happy with this because the Feds policy changes have a lag, meaning it takes time for rate increases to show in economic data reports.
The concern has been the Fed is raising rates too quickly, and by the time the lag sets in, the economy will be in the dumps. So, slowing the pace today is a possible way the Fed can avoid running the economy into the ground. Not running the economy into the ground is the “soft landing” we often hear about when people refer to the Fed and its current policies.
Another catalyst for the recent move higher was the Consumer Price Index in October, which was up 7.7% from a year ago. This was the lowest CPI reading increase since January of this year. But, let’s be honest, a 7.7% increase year-over-year is still ridiculously high inflation.
However, many economists are actually saying they are seeing inflation leveling out. We aren’t yet seeing that happen with the CPI numbers because we are still looking at year-over-year comparables before inflation got out of control.
The true sign that inflation has slowed, or is still climbing, will be in 2023 when we see year-over-year comps comparing current inflation measures with the elevated inflation we began seeing in early 2022.
Despite all the optimistic news investors got over the last few weeks, when reality sets in, it is easy to see that neither the US economy nor the world economy is very healthy.
Central bankers of every developed country in the world are raising interest rates.
The US dollar is way stronger year-over-year when compared to nearly every major currency, which is not great for the world economy.
GDP growth rates are missing expectations and slowing from where they were a year ago.
And let’s not forget Russia and Ukraine are still at war, causing major concerns to the energy markets and the possibility that parts of Europe will run out of natural gas during the coming winter months.
The possible energy crisis and the fact that Ukraine is a major world exporter of grains and other crops is not something that bodes well for lowering inflation in the short term.
Furthermore, we also are seeing Covid-19 cases in China, which is causing factories and even whole cities to go into lockdown.
Many economists believe that a large portion of the inflation we are currently experiencing is due to the supply chain issues we saw happening during the beginning of the pandemic. Therefore factories shutting down again all across China is not likely something that will help slow inflation.
Finally, let’s not forget. The Federal Reserve members were talking about “slowing” rate hikes, not yet actually slowing them. And they aren’t even starting to talk about stopping them. Let alone reverse interest rates and move them lower. While slowing rate increases is the first sign that inflation may be slowing, we still have a long ways to go until any potential recession or major economic slowdown is in the rearview mirror.
Correct me if I am wrong, but that still doesn’t sound very good. It does sound better than before, but not what I would call a good, healthy economy.
I know it sounds like a broken record to say, “there are a lot of negative market headwinds, and therefore you should wait until the dust settles to buy.” But I don’t understand why people are in such a hurry to buy the dip and call this the bottom.

If you are in such a rush, can’t control your FOMO, and must buy into this market, buy small amounts and cost average over the next 12 months. Paying a few dollars more for something in a few months, if this is the bottom, is not going to destroy your investment return. But it could keep you from losing money because this is a fake rally, and the market rolls over again in 2023.
A few personal favorites if you want to start buying today are the Vanguard S&P 500 ETF (VOO), the iShares Core S&P 500 ETF (IVV), or the Invesco QQQ Trust (QQQ) over the next 12 months and don’t try to time the market bottom.
Remember, you are investing for decades, so in the long run, the difference between buying today and six months from now won’t make that much of a difference to your portfolio two decades from now.
Matt ThalmanINO.com ContributorFollow me on Twitter @mthalman5513
Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

It is time to update the crypto charts as I spotted one strong alert in a major coin for you.
Let me start with the charts showing the balance of power in the crypto-sphere. The two majors will be first.
Source: TradingView
In spite of the so-called “crypto-winter” in the market, these two mastodons have kept their stranglehold on both individual and combined market share.
Bitcoin’s market share (orange bars) remains stable at 40% of the market no matter what. However, it is located on the downside of the range as other coins have taken their place in the sun. The all-time low was recorded at 35% in distant 2018.   

Ethereum’s dominance (black bars) is also solid at 18%. It saw a high market share of 31% at the beginning of its life. Currently, it is exactly in the middle of the range. It’s worth noting that moving to a new proof-of-stake (PoS) mechanism didn’t add power to the second largest coin so far.          
The combined market dominance is solid, hovering around 60%.
Let us move on to the rest of the top ten list excluding stable coins.
Source: TradingView
Binance’s native cryptocurrency (BNB, green line) hit the charts as it rose to #4 spot despite not being a crypto-coin in a traditional sense since it is used as a “fuel” for exchange transactions. Its market dominance of 6.3% stands at the highest close reading ever. The rise of Binance’s exchange and the activity of its traders are driving the demand for this coin, which is beyond the reach of the remaining cohort.
Ripple (XRP, black line) had its best year ever with a market share of 18% in 2018. Since this coin is backed by banks, its fame evaporated quickly. Its dominance dropped like a rock to the valley of 1% at the end of 2020. The current rise to 2.6% looks like a dead-cat bounce.    
Last month, Dogecoin (DOGE, orange line), the meme-currency, was ranked #8 captivating the news radar after scoring more than one hundred percent in less than a week amid Twitter’s (TWTR) takeover. The coin was pumped and then dumped back down to 7 cents from a peak of 15 cents. However, the recent tweet of David Gokhshtein, “I feel that we’ll all see Vitalik and Elon working together to somehow upgrade $DOGE” has turned the tables again as the new pump of Dogecoin is underway with price soaring above 10 cents. The market share is at 1.7%.
Cardano (ADA, blue line) had a promising future, however, the high of 4.5% last summer was the best market share level ever and the current dominance of 1.4% shows the fading popularity.
Polygon (MATIC, purple line) takes the share of “falling angels” and prominent Ethereum killers that turned to zombies now. Its market share reached the all-time high of 1.2% this month.

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Now, let’s get down to the alert spotted on the Bitcoin weekly chart below.
Source: TradingView
You were ultra-bearish on the main coin all the way down since I called for the “Crypto Apocalypse” this May. Your latest largest bet was to see Bitcoin collapsing to $10k, the next volume profile support on the chart. The lowest valley was recorded this month around $15.5k.
However, our trusted assistant the RSI indicator didn’t update the valley. On the contrary, it has established a higher valley, which is clearly visible on the sub-chart. This could pump the Bitcoin price anytime soon.

How high could it jump? I mapped possible scenarios on the chart above to answer this question.
At $30k, the price would almost double to reach the triple barrier (blue dotted line). It is composed of the purple moving average, the valleys of Y2021, and the consolidation area prior to the further drop to $20k (red circle). The bounce could extend further upside to hit the blue box a 38.2% Fibonacci retracement level at $36k.
It is still too early to consider a total reversal to the upside, so we could assume that the price could drop again after this projected bounce.
Assuming an optimistic scenario, at least $69K will be retested. We may be able to determine the premises in future updates since it won’t happen in one day.

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Intelligent trades!
Aibek BurabayevINO.com Contributor
Disclosure: This contributor has no positions in any stocks mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.