Abbott Laboratories, a defensive healthcare company, has seen its stock decline significantly, presenting a rare opportunity with a lower earnings multiple and higher yield than its historical average.
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Everyone Is Chasing AI… But These 7 Stocks Look Cheap
Jun 3, 2026
The creator discusses the current market sentiment, noting that while AI and semiconductor stocks are attracting significant attention and capital, many high-quality businesses are being overlooked. This concentration in a few hot sectors creates selective opportunities in other areas of the market, driven by greed rather than fear.
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Tickers discussed in this post
S&P Global, a high-quality data and infrastructure provider, is trading at a compressed valuation, offering a 24% margin of safety and a reliable compounding opportunity.
Mastercard (MA) is identified as a rare opportunity to buy a world-class compounder at a discount, with strong growth prospects and high profitability.
Accenture is a contrarian opportunity, down 31% YTD, with concerns about AI disruption and slowing growth potentially already priced in.
Amazon is a high-quality business with strong growth and margin expansion, but its current valuation offers a smaller margin of safety (16%).
Netflix (NFLX) is considered a buy as it's trading at a significant discount to its historical valuation multiples despite continued strong business growth and profitability.
Meta Platforms is presented as a compelling buy due to its strong revenue and earnings growth, significant AI investments, and a valuation that is below its historical average, despite market concerns about AI CAPEX.
Micron is mentioned as a semiconductor stock that has seen strong momentum and is part of the AI trade.
Broadcom is mentioned as a semiconductor stock that has seen strong momentum and is part of the AI trade.
Nvidia is mentioned as a semiconductor stock that has seen strong momentum and is part of the AI trade, but is not the focus for overlooked opportunities.