We're Shaking Up the Bullpen with an Eye Toward 2025
These eight companies have made the cut from our first round of screening.
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In today’s Daily Rundown video, we shared our intention to start overhauling the Portfolio’s Bullpen with an eye toward 2025 and the ensuing quarters. Since then we’ve been collecting information so we can begin that process, which starts with screening the top 500 companies by market cap and applying the following EPS screens to reported and consensus expectations:
- Double-digit EPS growth 2023/2022
- Double-digit EPS growth 2024/2023
- > 25% EPS Growth 2025/2024
The top 10 companies from that process are:
- Seagate Technology STX
- NVIDIA Corporation NVDA
- Flutter Entertainment Plc (FLUT)
- Block SQ
- MercadoLibre, Inc. MELI
- Barrick Gold Corporation GOLD
- Vertiv Holdings Co. Class A VRT
- Vistra Corp. VST
- Broadcom Inc. AVGO
- Atlassian Corp TEAM
We already have NVDA in the Portfolio and AVGO shares already reside in the Bullpen, which means we’ll be focusing on the other eight identified companies as we dig into their businesses, prospective tailwinds and valuations. We do not expect all eight will make the rounds of the screening process, but that is to be expected. We are looking to remove those that don’t fit our multi-pronged investment criteria which centers on well-positioned companies benefitting from multi-year tailwinds poised to deliver superior earnings growth whose shares are trading at a favorable (or better) risk-to-reward entry point.
Knowing that forward consensus EPS expectations will be reset during the December quarter earnings season, we’ll look to refresh this list as that reporting season winds down in February. We’ll also keep our eyes open for other Bullpen opportunities. As we get further down the road in our screening process, we’ll likely make some room in the Bullpen by removing a few existing residents.
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At the time of publication, TheStreet Pro Portfolio was long NVDA.
