Spring 2026

Baker Hughes is transitioning from a cyclical oilfield services company to a higher-quality energy infrastructure and services platform. The market is undervaluing its durable infrastructure demand driven by LNG expansion and recurring high-margin services. With a 3-year target price of $108/share, this represents a 63% upside including dividends and a ~20% IRR.

Tony DeSpirito mentioned that he still owns Fortune Brands, indicating his confidence in the company's growth potential and market position.

Tony DeSpirito also shared that he owns Becton, Dickinson, suggesting he believes in its strong fundamentals and future performance.

Edgar Wachenheim III discussed General Motors as an example of contrarian thinking, implying he sees value in the company despite market skepticism.

Edgar Wachenheim III mentioned homebuilder companies like Lennar, suggesting he views them as undervalued opportunities in the current market.

Edgar Wachenheim III included Toll Brothers in his discussion of contrarian investments, indicating he believes in its potential for recovery and growth.

Jeff O’Donohue shared insights on Cuckoo Holdings, suggesting he sees potential in the company's international market strategy.

Jeff O’Donohue discussed Tsubakimoto Kogyo, indicating he believes in its growth prospects in the international markets.

Alec Henry and Adrian Meli mentioned SAP in their discussion, suggesting they see value in the company's technology and market position.

Alec Henry and Adrian Meli also discussed Danaher, indicating they believe in its strong fundamentals and growth trajectory.

Baker Hughes is well-positioned in the energy sector, particularly with the increasing demand for oil and gas services. The company's innovative technologies and strong client relationships provide a solid foundation for growth.

Celsius is gaining traction in the health and wellness beverage market, with a strong brand and growing consumer demand. The company's focus on innovation and marketing is expected to drive significant revenue growth.

MSA Safety is a leader in safety equipment and technology, benefiting from increasing regulatory requirements and safety awareness. The company's strong financials and market position make it a compelling investment.

Amadeus IT Group is a key player in the travel technology sector, poised to benefit from the recovery of the travel industry post-pandemic. The company's robust technology solutions and partnerships position it for future growth.

Humana is considered attractive due to its earnings power, which is viewed as strong relative to its current valuation. The investor believes that the market may not fully appreciate the durability of its earnings.

Capital One is mentioned as a current example of a stock that has a high earnings yield, but there may be some debate about the durability of that yield. This suggests a cautious optimism about its potential.

The London Stock Exchange Group is trading at a modest multiple for what is considered an excellent business. The investor believes that both its earnings power and business quality are significantly higher than the market currently perceives.

Amazon was perceived as the most expensive stock in the portfolio, but it was actually the cheapest due to market mispricing of its margins. This highlights the potential for value in what may seem like a growth stock.

SAP is positioned to benefit from its AI strategy, which is expected to enhance its growth narrative. The stock appears undervalued, priced for a low percentile outcome, while the potential for growth remains significant if it successfully integrates AI into its ecosystem.

Danaher has been a long-term interest for the investor, who has followed the company closely and appreciates its management and historical performance. The investor has built a large position in GE under the leadership of Larry Culp, indicating a favorable view of management effectiveness.

Danaher trades at a mid-single-digit free cash flow yield on still-depressed earnings near the trough of the cycle. The company has strong free cash flow conversion and a solid balance sheet, with the potential for EPS growth at an attractive rate for years to come as revenue growth and margins are expected to improve.

Gavin Baker believes Netflix is misunderstood by the market, as it has the potential to raise prices significantly while still growing its subscriber base. He argues that normalized margins could exceed 40% and that the company is focused on improving profitability, which could lead to substantial earnings growth in the long term.

Korea Ratings is the foreign-listed subsidiary of Fitch, and it represents an excellent asset selling at a deep discount to fair value. This investment provides a good opportunity to learn about the Korean market while investing in a business with straightforward corporate governance and capital allocation.

Cuckoo Holdings is a leading premium rice cooker manufacturer with a strong brand and durable economic franchise. The company has successfully displaced dominant competitors and has a significant market share in a category that is critical to many consumers. With healthy export growth and opportunities in Southeast Asia, the Americas, and China, Cuckoo is well-positioned for future expansion.

Cuckoo trades at a mid-single-digit earnings multiple despite having a meaningful net cash position. The company has shown strong growth in dividends and returns on capital, and its valuation is attractive compared to peers like Zojirushi, which trades at over twice Cuckoo's multiple. Given Cuckoo's better prospects in certain markets and new growth categories, the current valuation presents an appealing risk-reward scenario.

Tsubakimoto Kogyo operates as a value-added reseller in power transmission, facility and equipment, and industrial materials. The integration of these businesses allows them to provide valuable solutions to industrial problems, which can be a significant opportunity for stock picking in the Japanese market, especially given the positive TSE reforms.

Gavin Baker identified generative AI as a significant driver for a memory super-cycle, predicting that memory and storage stocks would rebound. He noted that Micron has already seen a substantial increase in its stock price, reflecting this trend.

Fortune Brands is attractively priced at around 12 times current earnings, which is unusual for a quality compounder. The company has strong brands and generates high returns on tangible capital, suggesting it can compound earnings faster than average. Even if the housing cycle does not recover, the stock should still perform well at this valuation, and if housing repair and remodel activity picks up, earnings could accelerate significantly.

Becton Dickinson is a medical device company trading at around 12.5 times next-twelve months earnings, which is cheap for a quality compounder. The company is poised for earnings growth due to an operational efficiency program and the sale of its biosciences business, which will enhance margins and allow for stock buybacks. The medical device industry is currently undervalued compared to the broader market, making it a rich hunting ground for investments.

We recommend a BUY for DoorDash, an on-demand delivery business that we believe is positioned to outperform expectations due to durable growth in US Restaurants, improving profitability in New Verticals and International, and underappreciated margin expansion potential from operating leverage. Our 3-year price target of $318 represents 80% upside and a 22% IRR, based on 10x EV/EBITDA on our 2030 EBITDA estimates.

DoorDash is expected to swing from an EBITDA loss of $1.7 billion in 2026 to a profit of $1.7 billion by 2030, driven by improvements in profitability across its New Verticals and International segments. Management's focus on profitability goals and a culture of accountability supports confidence in achieving these targets. The model predicts EBITDA margins will expand significantly, and the valuation suggests a strong upside potential with a target price of $318 per share.

Baker Hughes is positioned to benefit from its installed base economics, which create a recurring, high-margin services stream that the market underappreciates. The company’s growth in Gas Technology Services and the integration of Chart Industries will shift its earnings mix towards higher-quality, less cyclical revenue, with a projected price target of $108/share, implying 63% upside through 2028.

The market is mispricing the risks associated with Celsius Holdings, including fad risk, Costco private label competition, and integration uncertainty. These factors are not structural issues, and with strong customer retention, expansion into PepsiCo shelves, and margin improvements, the stock is expected to see significant upside.

Celsius is positioned for significant growth with an 18% sales CAGR driven by strong customer loyalty and expanding distribution through PepsiCo. The company is expected to achieve operating margin expansion through strategic acquisitions and scaling operations, while currently trading at a discount compared to industry peers. The base case models a price target of $65.7 by FY2028, representing a 94% upside.

EJ Karobath recommends buying MSA Safety with a target price of $356 by 2030, based on a projected EPS of $16.19 and a 22x forward P/E multiple, indicating an 18% IRR. The company has a strong market position and growth potential across its segments.

MSA is positioned to benefit from the connected worker revolution in gas detection, with a significant runway for growth as connectivity penetration is only at ~10%. The company is expected to gain market share and improve unit economics through its MSA+ subscription service, which generates recurring revenue. Additionally, MSA is set to capitalize on a dependable SCBA replacement cycle, further enhancing its market position and financial performance.

We recommend a long position in Amadeus IT Group with a target price of €78 by Dec-2028, representing a 68% upside and a 22% IRR including dividends. The investment thesis is supported by underappreciated growth opportunities in Air IT Solutions, margin normalization, and an AI narrative that is significantly overpriced. The risk-reward is exceptional at the current valuation, with a 5:1 Bull/Bear skew.

The market underestimates the growth opportunity in Air IT Solutions as airlines transition to modern retailing platforms like Amadeus's Nevio, which is expected to drive significant revenue uplift and has already gained traction with major carriers. Additionally, margins are expected to normalize higher as past heavy investments begin to pay off, and the current stock price presents a compelling entry point given overstated fears regarding AI disruption.

I recommend UBER as a long with an intrinsic value of $106 per share, translating to 41% upside, 29% margin of safety, and a 2.0x reward-to-risk ratio weighed against my downside case. UBER has sold off ~25% from October 2025 highs due to autonomous vehicle (AV) disruption fears, but I believe the market is overestimating the likelihood of negative AV outcomes and underappreciates Uber’s critical role in the AV ecosystem and the strength of its core business.

Uber is positioned to play a crucial role in the commercialization of autonomous vehicles (AVs) by providing AV companies with access to its extensive user base and rideshare expertise. This partnership model allows for faster market entry and improved unit economics, particularly for smaller AV players. Increased vehicle utilization rates through Uber's platform can significantly enhance the financial returns on AV investments, making it a compelling long-term opportunity.

Uber is well-positioned to capitalize on the growing demand for convenience in food delivery and ridesharing, with strong fundamentals supporting its core Mobility and Delivery businesses. The company is expected to generate significant free cash flow and improve operational efficiency, leading to expanding EBIT margins. Despite current market pressures, the intrinsic value of Uber is estimated at $106 per share, suggesting substantial upside potential.

General Motors is misperceived as just an automobile company, but it actually has a strong position in the body-on-frame truck market, which is an oligopoly with high profit margins. This segment accounts for a significant portion of GM's revenues and profits, making it a compelling investment despite the general negative sentiment towards the automobile industry.

Gavin Baker believes that General Motors is undervalued due to a misperception in the market regarding its cash flow and share repurchase strategy. With a low PE ratio and significant revenue growth per share, he sees potential for substantial shareholder benefits over the next few years as the market begins to recognize these fundamentals.

Baker mentions that despite projecting certain outcomes for FedEx that did not materialize, the investment still yielded a return of 7-8% per year over 7-8 years, indicating a long-term positive outlook even in the face of mistakes.

NVR has successfully implemented a land-light model, which has transformed homebuilding into a more profitable business by reducing debt and increasing share repurchases. This strategy allows them to focus on building homes rather than owning land, which typically appreciates at a lower rate.

Lennox has performed well in the HVAC sector, benefiting from strong demand and a solid business model.

Whirlpool has seen significant profits in the appliance sector, indicating a strong business performance.

NVR is a superb company that has averaged 16x earnings for the last decade. With other homebuilders becoming asset-light, NVR should trade at a similar multiple. The company is well-positioned and managed, but its regional focus limits its ability to replicate success elsewhere, unlike larger national competitors.

Atreides Management owns close to 6% of Toll Brothers, which is one of their two largest positions in the homebuilding sector, indicating strong confidence in the company's prospects.

D.R. Horton has significantly increased its market share in the housing industry, growing from 8.2% in 2018 to approximately 13% in 2025. The company benefits from efficiencies of scale in land acquisition, house design, and bulk purchasing, allowing it to build houses less expensively and compound revenue per share at a rate approaching that of growth stocks, despite trading at depressed multiples.

Lennar, like D.R. Horton, has gained market share in the housing sector due to its scale advantages and efficiencies. The company is expected to continue benefiting from the ongoing consolidation in the industry, which positions it well for future growth as demand for housing rebounds.

Schlumberger is included in the portfolio alongside housing exposure due to its potential recovery in the oilfield services sector as demand for capital equipment increases. The company is expected to benefit from the cycle of reordering as the oilfield services industry recovers from years of underinvestment.

Gavin Baker believes that National Oilwell Varco will benefit from increased capital expenditures in the oil service sector as the equipment is aging and needs replacement. Although the stock has risen significantly, he still sees potential for further growth as the demand for drilling services increases.

As AI labs increasingly compete to differentiate through long-form memory and richer multimodal context, the demand for cold storage is expected to rise significantly. The hard disk drive industry is characterized by a duopoly, with the top two players maintaining disciplined capacity additions, making it an attractive investment opportunity.