Nike is a strong sell due to an impending dividend cut, severe EPS decline, loss of market dominance, and poor management, despite its historical success.
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These 10 Fallen Angel Stocks Are Crashing — Here’s What We’re Buying
The Wide Moat Show discusses "fallen angel" stocks, which are once-market leaders that have fallen out of favor. The hosts, Brad Thomas and Nicholas Ward, aim to identify whether these companies are temporarily discounted, cyclical losers, or potential value traps. They will each present five stocks from various sectors, including REITs, big tech, consumer brands, financials, industrials, and utilities.
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Tickers discussed in this post
Intuit is presented as an interesting deep value pick, having experienced a significant sell-off recently.
Accenture is a high-quality IT consulting firm with a history of consistent earnings growth, now trading at a significant discount to its historical multiples.
Ball Corporation (BALL) is a buy at 15 times earnings, with potential for multiple expansion if trade war uncertainty resolves, supported by share buybacks and tailwinds from sustainability trends.
Hasbro is a turnaround play with strong brands but faces near-term execution risks and macro uncertainty, prompting a wait-and-see approach.
Dollar Tree (DLTR) is a turnaround candidate with a powerful discount retail model, facing execution issues but poised for margin recovery and strong performance in tougher economic times.
Mid-America (MAA) is a strong REIT in the Sunbelt market with a clean balance sheet, poised for recovery and potential 10-15% returns despite short-term supply pressures.
VICI Properties is identified as a fallen angel with a strong bull case due to its long-duration leases, high-quality tenants, and resilient experiential real estate, despite concerns about growth durability and tenant concentration.
American Tower (AMT) is presented as a high-quality REIT that is temporarily discounted due to rising interest rates, offering an opportunity for investors.