Join professional money manager Bill Gunderson as he navigates through the latest market trends, taking a deep dive into the performance of major stocks like Amazon, Meta, and Verizon. In this episode, Bill discusses the implications of recent earnings reports and the Federal Reserve’s role in market dynamics. He also challenges common perceptions about dividend investing with a critical look at Verizon’s stock performance.
00:37:17 Cloudflare’s Growth and Oil Stocks Analysis
SPEAKER 01 :
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 04 :
and welcome to this uh friday halloween 10 to 31 at 25 and it is not triple witching day we checked on that but we do have all three indexes to the upside so far and this rally is being brought to you by the folks over at amazon where they had a pretty good report after the close yesterday and it’s up 11% or 12% last time I looked. And that is leading the NASDAQ. By the way, this is Bill Gunderson, president of Gunderson Capital Management. And this is the best stocks now. Show the NASDAQ’s up 219 right now. Wow. That is very close to an all-time high. We’re at 23,800. Of course, a lot of that is Amazon. The Dow, which also has Amazon in it. Don’t forget, it replaced CVS. Long overdue. The Dow is up 26 to 47,548. The S&P closing in on an all-time high. It’s up 31 to 68.53. Small caps are up a little bit. The bond market is behaving itself today with the 10-year at 4.08. Gold is up a little today. Gold’s up about a half a percent. Oil’s up a little. And the Bitcoin market is improving today after a big sell-off yesterday. It’s up $2,200 today to $110,000. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And I’m here with Barry Kite, our chartered financial analyst and certified financial planner if you are in the market for a financial plan. We had kind of a mixed market yesterday with the Dow up and the NASDAQ down 377. Meta. Meta was the big loser yesterday. It was down about 12%, which was kind of a surprise. Google, on the other hand, Alphabet, had a very good report. And I see, Barry, that Meta is going to go to the bond market and raise $30 billion worth of bonds to pay for those capital expenditures that they need.
SPEAKER 03 :
And why not? I mean, it’s probably going to end up being a pretty cheap source of financing for them. I remember years ago, remember when Apple floated a bond issue out there, and I think they came in. I want to say the yields came in just right at treasuries, just below treasuries, remember?
SPEAKER 04 :
Yeah, I’m sure Meta won’t offer much of a premium over treasuries.
SPEAKER 03 :
You’re talking a several trillion dollar company. Yeah, but what, about $25 billion, wasn’t it? I mean, it was a pretty sizable raise. Yeah.
SPEAKER 04 :
So anyways, that was yesterday, and this is today, and we had earnings after the close last night. We pretty much had our friend Jerome Powell crush and the rally in the bond market. We were down under 4%. Now we’re back up around 4.10%. I think he also could have really cooled the market off between now and the end of the year because I think it’s pretty unlikely to get a rate cut unless we see some kind of monster inflation report between now and the December meeting. We had a couple big earnings after the close yesterday, which we’ll get to. Amazon and Apple. A couple of giants. We had an article published yesterday in Seeking Alpha. The title of the article is Verizon, A Classic Dividend Trap. Because after all, Verizon has a dividend yield of 7%, Barry. And when you look at the total return, however… so many investors just look at the lipstick on the pig which is the seven percent dividend yield you have to look at the total return and you know even after i put it in plain english black and white graphics showing the total returns of verizon over the years in the comments you still have people defending the stock and i hear all the usual arguments well i own it for the income Well, the income comes from two sources. If you owned a rental property, the income obviously does come from the rents that you collect, but it also comes from the capital appreciation in the property that you own. You want double barrel. You want income coming from both of those spigots. The stock market, I think, is even more important because you would expect… And here’s another argument that was interesting that I saw against my – pretty much I totally disced the stock, okay? And it is a widely held stock, so you’re going to have a lot of people taking umbrage to my conclusion. But another guy said, oh, as soon as I saw that you compared Verizon with the S&P 500, I stopped reading the article. Okay, well, you know what?
SPEAKER 03 :
What are you going to use then as a benchmark?
SPEAKER 04 :
Why would I own a single stock and have single stock risk when I can own all 500 stocks and spread my risk around 100? and get a return that’s about eight-fold better over the last 10 years than Verizon. But you know what? It’s as hard to convert a diehard dividend hog investor – As it is to convert a Republican to being a Democrat. You know, that’s just the way it is. Their feet are set in stone and they’re not going to move. And another guy argued in another five years, Verizon will be a dividend aristocrat as if we’re going to give it a crown or something. Look at the total return. And by the way, look at the returns over the years of these so-called dividend aristocrat ETFs. They have sorely, sorely underperformed the market. To me, a company that is increasing its dividend every year, they’re doing that because they have nowhere better to put their money. Their growth days are over. So anyways, as you can tell, I like Verizon at this level. No, I don’t think so. You can also make a value case for it. It’s trading at huge discounts to the S&P 500, which it should be, okay? It’s got a P.E. ratio of 8%. Another comment argued, well, they got a brand new CEO. And my thoughts are like the Who song, meet the new boss, same as the old boss. What are you going to do to turn around a 2% grower? Pull a rabbit out of your hat? Well, maybe he’s got one. We’ll see. Anyways, Verizon is, in my book, a classic dividend trap. And, of course, that upsets the apple cart over at Seeking Alpha where, you know, their main theme is dividend. It was. I see people are starting to back off of that, though, big time. because they found out that it doesn’t really work buying 12% and 13% dividend payers because the total return is way less than that, meaning that the stock is going down along with those big dividends. Vance, J.D. Vance and Transportation Secretary Sean Duffy warning, that it could be a disaster if the government shutdown extends into the Thanksgiving holiday season. These guys aren’t getting paychecks right now. They’re in their second week, third week, going into a very heavy stress environment as an air traffic controller. Right. and not walking out with the paycheck. And they’re saying, you know, they’re going to stop showing up to work here pretty soon. And as far as I can tell, the sticking point really seems to be the continuation of the COVID related subsidies to help people during that difficult time pay their health insurance. And it looks to me like the Democrats want to extend that despite COVID leaving our lands for the most part. and the Republicans are sitting over our dead body, and that seems to be the real hang-up right there. Trump and Putin canceled their summit after Moscow sends a memo to Washington.
SPEAKER 03 :
I was waiting for that to be included in your World War III update. Well, yes, we’ve got it.
SPEAKER 04 :
You know, Putin is a bad actor. He doesn’t care what the world thinks, and he’s… He’s going full speed ahead with nuclear warheads and testing them. And, of course, Trump posted yesterday that we’re going to resume our nuclear test after 33 years. So there is no progress being made whatsoever. on that front. China’s economic slowdown deepens as factory activity hits six-month low to 49. That’s contraction. Anything under 50 is contraction. So they’re definitely being hurt by the tariffs, and I’m sure that helped them cave a little bit. There’s a year reprieve on the rare earths. They’re to convert into soy sauce and whatever else they use those soybeans for. And we’re not giving them the Blackwell chips. And I saw that Jensen Wang said, you know, it’s no big deal. Hopefully someday we’ll be able to sell Blackwell chips to China.
SPEAKER 03 :
But for now, no. It was interesting how of all those press releases involving the meeting between the two leaders, nothing about chips ever came up.
SPEAKER 04 :
No, but it definitely didn’t come up at all. And Wang took the message. Their market share in China has gone to zero, but it’s still a great stock. All right, we’ll be right back.
SPEAKER 05 :
Thank you.
SPEAKER 04 :
And welcome back here to the second quarter of today’s Best Stocks Now show, the Halloween edition, Trick or Treat. We did get a trick on Wednesday, big time, from our friendly Fed Chairman, Jerome Powell. But you know what? Look, they do take market valuation into consideration. And that’s all you’ve got to do is look at the forward PE of the S&P 500, the PE, the price to cash flow, the price to book value, the price to sales, and realize that we’re back where we were with a lot of those valuation measures in the year 2000. And I was managing money back then. That was the dot-com bubble year. And when that bubble burst, it was ugly. It was really, really ugly. And one of their jobs, I guess they consider it their job. is to kind of keep the market under control a little bit, to tamp down the animal spirits. They certainly did that in 2022. Actually, they began in 2021. The animal spirits were really robust at that time with all of that COVID money floating around. Speculative stocks were flying and hitting new highs, companies with no earnings whatsoever, very reminiscent of the 2000 dot-com bubble. And then they cooled that off big time with four 75-point rate hikes in a row along with several other small ones. Put a couple banks out of business, crushed the bond market. It also tells you that they were way behind the curve. And, you know, they had to frantically raise rates to get back ahead of the curve. So they didn’t do a very good job of managing it that time around. I don’t personally think that Powell’s done a very good job. Euro inflation eases to 2.1% in October, so that’s good. I mean, that’s an indication that things have really cooled off around the world. Including here, we’re running still around 3%, which is a little bit too hot for the Fed. Canada’s monthly GDP rises 0.1% in September. Those are Verizon-like numbers, Barry. Now, I realize, I mean, Canada is not known for a fast-growing economy. But you think they could do a little bit better. I’m sure the tariffs are hurting them also. There still continues to be a kind of a standoff there between our friends to the north. China pauses those rare earth curves, but brokerage says, who’s saying this? This is, I don’t know, one of the big brokerage firms out there says, you know, the relief is not here yet. We do have a one-year reprieve. It’s Fitch, BMI said in a note on Friday. They suspended the export controls, introduced on October 9 for one year. The stocks have been on a roller coaster ride. I still think, even though, you know, I mean, this is speculative. This is out there on the speculative limb of the tree. where sometimes that thing snaps and you can get hurt pretty badly. But I still think that there are some rare earth stocks. We still own Mountain Pass MP. I think it was validated to some extent when Apple made a huge investment in MP materials. and also when the U.S. government made a huge investment in MP materials. And then we have another one that we recently bought that is getting some good news today, Ramico Resources, which is headquartered in Lexington, Kentucky. Were most of the horses running in the Breeders’ Cup today and tomorrow? You’ve got to watch that on TV. My wife’s there, Barry. I couldn’t go this year.
SPEAKER 03 :
Oh, did she get to make it? Okay, I wasn’t sure. I heard you were talking about going, but I wasn’t sure.
SPEAKER 04 :
Too many irons in the fire right now here. Somebody’s got to hold down the fort, right? Right, yeah.
SPEAKER 03 :
But she’ll be at the Breeders’ Cup. That’ll be fun for her.
SPEAKER 04 :
That’s great. Yeah, she loves getting all dolled up and dressed up. She looks great, fantastic. I really wanted to go, but… I watch it on TV and maybe put a few bets down through her.
SPEAKER 03 :
Maybe she can get a couple of wagers in for you.
SPEAKER 04 :
You know what she’s really good at? She goes to the paddock where they saddle up and parade them and everything, and I go there, too, between every race with her. She has a good eye for either a horse that doesn’t look like he wants to run today.
SPEAKER 01 :
You know how that is.
SPEAKER 04 :
Sometimes when I get out of bed, I look like that, right? You know, I don’t want to run today. And other times she sees them with that, oh, you can’t. They prance. Their coat is shiny and bristling. They’re dappled. Their head is curved. Fire coming out of their nostrils.
SPEAKER 03 :
So she’s the Best Docs Now app when it comes to the horses. She’s got a good eye. You can weed them out or rank them high.
SPEAKER 04 :
So I’ve got at least somebody there on the rail at the track as I watch on TV reporting back to me who has the flared nostrils. Anyways, Ramico. Maybe there’s Rare Earth in Pennsylvania and Virginia. I don’t know, but they’re a coal miner. And we saw similar activity out of Peabody Energy where all of a sudden that stock took off. But the government, U.S. government, the energy department is partnering. With Ramico, that symbol is M-E-T-C. It is like the worst roller coaster at Dollywood or at Disneyland or whatever you want to compare it to. That’s how that stock trades.
SPEAKER 03 :
That’s a rough one.
SPEAKER 04 :
Yes, but you know what? Look, I mean, over the next year, I’ve got to believe we’re going to put the pedal to the metal.
SPEAKER 03 :
Literally the pedal to the metal. You mentioned that yesterday. I mean, I think you’re right. I mean, it’s one of these things where we have to, and there’s not a bunch of investment options out there. That’s why you’ve seen so much activity in these small names getting –
SPEAKER 04 :
big investment and have gone you know gone gone to them yes and i did get my little cube of antimony here on my desk i saw that picture it’s in a glass case a plastic case and i just had to take it out and feel it and everything and one of our listeners sent me an email said that stuff is really toxic be sure you don’t touch it oh great now i’ve got cancer you know i put it right back in the plastic box it’s not coming out it is it didn’t give you a warning on the outside no warning at all she says oh it’s highly toxic you don’t want to handle that thing okay i’m not glowing or anything Nvidia to send over 260,000 GPUs to South Korea. And, of course, our president just got back from South Korea where he met face-to-face with Xi. And, you know, when I turned on the TV last night to watch the evening news, there he was at the White House handing out trick-or-treats.
SPEAKER 03 :
Dude, he’s all over the place.
SPEAKER 04 :
Is this from last year? No. After he gets home from a five-day Asian trip, you wouldn’t see me for a week.
SPEAKER 03 :
I’d be just like, I don’t want to talk to anybody. I heard a news commentator say, if you were coming back home from that trip… Do you think you would have had passing out candy on your agenda for the evening? I’d be eating candy to try to recover.
SPEAKER 04 :
I mean, the guy has more energy at, what, 78 years old? Obviously more energy than our former President Biden. It’s how you use that energy, obviously. But, you know, what can I say? God bless him. Okay, when we come back, we’ve got some big news on the earnings front with Amazon. Absolute blowout earnings. We’ll be right back.
SPEAKER 05 :
I’ve been on the right trail, but I must have used the wrong call.
SPEAKER 04 :
Hit it in a bad way, and I wonder what it’s good for. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 05 :
And welcome back here to the second half of today’s Best Docs Now show.
SPEAKER 04 :
The symbol on the, what do you call it, the periodical charts? What do you call those in the chemistry? Elements, you know, the charts.
SPEAKER 03 :
Periodic. Yeah. Periodical. Chart of periodic elements. I mean, I’ve got to go back. Periodic table. 12th grade. Periodic table. Yeah. Periodic table.
SPEAKER 04 :
Capital S and little b. is antimony and we now know the uses of antimony and we also know it’s highly toxic so if you order some on amazon make sure you wear gloves and a mask keep it in the keep it in a suit you know wow okay amazon well how about amazon you know really amazon’s been a pretty spotty performance stock over the last decade. It had a year where they lost money, actually. That was the year when their earnings hit minus 27 cents. That was the year after COVID, minus 0.27 cents in earnings. But their earnings have really been growing since then. Over the last five years, it’s done a lot better. But if you look over the last 10 years, and I’m looking at the bestdocsnowapp.com here, their 10-year return has been, let’s see, 10-year return. I got the valuation up here. Now we’ve got to put the performance. And those are the two big things. That’s what I did with the Verizon article. Amazon has pretty much matched the S&P 500 over the last 10 years. In fact, underperformed it by a little bit. Amazon’s delivered 21.7% per year. They do pay a really tiny dividend. And the S&Ps delivered 22.7. But if you look at the last five years, you had one really bad year in there. The stock was down. I’ve got to check that. That might be… I’ll have to look. I think I got maybe a number wrong in there that’s not split adjusted. But still, it has not been that good. I mean, if you look at it year to date, year to date, Amazon has really not participated in this move in the market. It’s up 1.6% so far this year. That was as of yesterday. And, of course, it’s up 11% today. And when I look at a valuation of Amazon, which I’m going to do, I have it with 83% upside potential over the next five years. It does qualify from a valuation point of view. And that’s why we actually own it in our relative value. Because it got down to a P.E. ratio that on a relative basis was much lower than where it has traded historically. So I had a little bit of a twist to value investing. I also look at relative value. where sometimes for one reason or another it’s trading way below its norm, even if the norm has been 40.
SPEAKER 03 :
Or below its peer group. Yes. That’s how you came across, that’s how you hit it with AMD.
SPEAKER 01 :
Yes.
SPEAKER 03 :
AMD, it wasn’t because you knew that they had some… you know, wild AI news on the horizon. It was because the, you know, stocks and earnings-wise and it had been beaten down and, you know, it kind of, you know, it made itself available.
SPEAKER 04 :
Yeah, I want to say Amazon has historically traded at about 45 times and it dipped down to about 30. And that’s when we went in and bought it in the relative value portfolio. So anyways, a good report from Amazon. It is a member of the Dow. I believe we’ve had 11 Dow stocks report earnings, many of them quite soggy, to say the least, the horizons of the world. But Amazon did have a good report today. Okay, now Apple. Oh, and I want to say on Amazon’s report, their earnings were up. Let me take a look. For the quarter, their earnings were up 36%. That’s pretty good for a $2.6 trillion company. And a lot of that is AWS and the membership fee that they charge. Their profit margin on the stuff they sell is pretty thin. The overhead is high when they’re delivering a sack of grapes to your door or whatever.
SPEAKER 03 :
And they continue to invest in capital expenditure, CapEx. Big time.
SPEAKER 04 :
And R&D. Their overhead is not cheap. And the cost of a product is not cheap to get it to your door. They’ve had tariff overhang, obviously, this year. And their sales were up 13%. Now, Apple, on the other hand, Their sales were up 8%. And see, there’s my main argument. That’s why you won’t find Apple in any of the four portfolios that I manage, because they’ve become a single-digit grower. And single-digit growers, all things being equal, are going to give you single-digit returns on investment as stocks follow earnings. Apple pays a tiny little dividend, like a third of a percent. And once again, they reported sales that were up 8%, single digits. Their new phone is doing a bit better than the old, the last few. 17 has been more of a hit for them. Their earnings were up 13%. But, you know, I mean, at 36 times earnings in a high single-digit grower, you know, it’s hard to make a case. And I can then back that up when I look at my five-year valuation on Apple. And I went through my whole valuation formula yesterday in the article I wrote on Seeking Alpha. if you go to seeking alpha and follow me you just go to my article and say follow this author you’ll get an email every time i write an article i’m looking to write more articles uh… going forward it’s been a busy year we’ve been on the road a lot But I believe those articles are very valuable.
SPEAKER 03 :
And the markets move quickly. So you could be pinning an article in your head and it all changes overnight.
SPEAKER 04 :
But Apple does not fit my valuation criteria. In fact, it doesn’t even come close. Right now, my five-year target price, I want to say I have about 56% upside potential. And we just said Amazon is… is much higher than that, 83%. Right now I’ve got Apple at, yeah, 55.7% upside potential over the next five years, which if you grade on the curve, that’s a D-. a D minus as it relates to a five-year target price. And that five-year target price is basically taking next year’s earnings estimates, extrapolating them out over the next five years. That’s just logic. And we use the five-year consensus growth rate on that. Both those numbers are readily available on the Internet. And then I apply a multiple that I think is appropriate. And that multiple is based on where it’s traded historically. where its peers are trading. It has something to do with the current interest rate environment. Obviously, in a falling interest rate environment, multiples expand. In a rising interest rate environment, as we found in 2022, multiples contract. drastically because the Fed was raising rates drastically. So when I apply that, I get 55% upside potential as my five-year target price of $417 on Apple. And I just don’t think they’ve had anything that has been really, wow, man, that’s really good. Everybody’s going to want one of those. I just haven’t seen that out of Tim Cook. But I’m not going to argue with people that continue to own Apple. You know, most of the people that I see owning Apple today, Barry, they have legacy positions that they made a ton of money on, right?
SPEAKER 03 :
They own it because they have to because they still have a huge… They’ll have a $600,000 capital gain. We may not own the stock, but we don’t hate it that much.
SPEAKER 04 :
No, to where it’s going to get cut in half in the next year or so. But to put it into a fresh growth portfolio in today’s environment, it really is pretty much a sluggish grower where Apple is in their… They’ll start increasing their dividend yield, and pretty soon they’ll be a dividend aristocrat. And by the time they reach that, then they’ve reached like Procter & Gamble status or Merck. There were so many soggy stocks. Probably the worst one I saw is just a disgrace. Bristol-Myers is a disgrace. Verizon, to me, is a disgrace. But, you know, what are you going to do? I mean, Verizon has a limited market to sell into, nothing really new, competing with others in that same space, and they’re a 2% grower. And Bristol-Myers has not come up with anything, anything, over the last 10 years, hardly at all. Okay, a couple more stocks to talk about when we come back. This is the Best Stocks Now show.
SPEAKER 05 :
On a winter’s day.
SPEAKER 04 :
And welcome back here to the final segment of today’s Best Docs Now show. The biggest question on this Friday, October 31st, Barry, is can Yamamoto stop those Toronto Blue Jays in Toronto tonight? The Dodgers are going to have to win two games in Toronto.
SPEAKER 03 :
On the brink. That turned around pretty quickly, didn’t it?
SPEAKER 04 :
Yamamoto’s been pretty impressive lately. Anyways, another way of looking at a stock, and some firms out there use this, they’ll call a stock a market perform. That means they think it will do whatever the market does, just kind of track the S&P 500. Or they’ll say outperform, you know, or they’ll say underperform. That’s another way of looking at it, which is kind of a relative thing. Wall Street doesn’t do too many underperforms.
SPEAKER 03 :
Yeah, there’s a few.
SPEAKER 04 :
And if they do, they’re usually wrong. It’s like on one of the best stocks out there. But, you know, I mean, that’s kind of an okay way of looking at it. I mean, I look at it the same way, but I was thinking of that in context of Apple. I look at Apple. It’s up 8.8% so far this year. The S&P is up 15 or something like that. I would say, at best, Apple is a market performer these days. And I would not be surprised even if it continues to underperform the S&P 500, unless they can get something going that’s a little bit new and innovative and that people really want to have. It seems to be like AI. They’re missing out there, and they just… really come up with anything. It’s really been a big hit lately.
SPEAKER 03 :
Yeah, the innovation piece. I mean, remember for a while you heard about they’re going to do the Apple car, right? Well, that went by the wayside. You’ve heard about these different VAR headsets and glasses, right? And that’s kind of sputtered around. They certainly have the normal ecosystem of all of our iPhones and everything else that they’ve got already built, but Like you said, where do you see that next leg of growth coming from?
SPEAKER 04 :
Yes, if you’re a growth investor. I mean, I want something that I think is going to outperform. Obviously, right? That’s why we’re in the market. Okay, now, is that somebody… Exxon Mobil, well, okay, the oil stocks, they had one good year in recent years, and that was in 2022 when oil spiked. And prices at the gas pump spiked. And we drained our strategic oil reserves to bring oil prices down. And there was really no reason for oil prices to spike. It’s not like there’s not enough oil out there. But there was a combination of factors that combined. And Exxon had an 80% year, up 80% in 2022. However, over the last 10 years, it’s a big underperform. It’s averaged 8% per year. And I want to say the dividend yield is 3% or 4%. So that means there’s very little capital appreciation in the stock. Over the last three years, it’s averaged 4.7% a year, which is about where treasuries have been. And so far this year, Exxon is up 9.6%. But, you know, I say if you’re looking at that underperform out, to me it’s going to continue to underperform the market by a wide margin over the next five years. Now, the one that – here’s a good one. We’ve got to throw a good one in there, and then we’ll end with another clunker. Cloudflare. Cloudflare, CrowdStrike, Palo Alto Networks, and Palantir, in my book, are the four best software stocks out there. You know, there was a time when Adobe, and I mean, you could still make an argument for Microsoft, but if you’re looking for extreme growth, Cloudflare has delivered 178% per year growth on average. over the last five years and they come up with blowout earnings in the silicon valley uh… based company cloud flare which is an eighty six billion dollar it’s a large mid cap will call it is breaking out to new all-time highs today despite a two hundred and sixty eight p e ratio two hundred and sixty eight You know, software stocks, because they have obscene profit margins, trade at very rich multiples, especially if they’re growing like Cloudflare has been growing. Cloudflare had a couple of bad quarters in a row, but they finally put together a blockbuster. It’s up 11.6% today. And it’s hitting a new all-time high. They develop software for firewall, routing, traffic optimization, load balancing, and other network services. And in my book, one of the top five software stocks. out there in the market today. Now, back to a clunker. You say, well, you know, okay, Bill, Exxon’s not that good. What about Chevron? I used to have a guy, he was a client, he used to tell me all the time, Chevron’s been really good to me over the years. Yeah, what years? Because it hasn’t done much lately. Maybe you owned it during its heyday. It’s okay. I mean, it’s done half of what the S&P has done, 10.1% over the last decade. It’s definitely outperformed Exxon by a little bit. It’s up a year to date. It’s up 9.7%. And then I look at evaluation on the shares. I mean, what kind of growth is there for a stock like Chevron and a stock like Exxon? They’re obviously single-digit growers in today’s world. So the evaluation doesn’t add up either. So I just think I see it as an underperform, a solid underperform, right, of the market. Okay, well, we’re out of time. It’s a busy Friday as usual. I’m writing the newsletter, doing my internal research while I’m looking. Still got some trades here to make maybe to finish out the week. And we’ll be updating the earnings picture. We had a lot of earnings this past week. We’re going to really know where those earnings are at for this quarter.
SPEAKER 03 :
That’ll be the first place I go in the newsletter.
SPEAKER 04 :
Yes, we’re going to get a big update for next year, 2026. And believe it or not, the market’s trading on 2027 estimates right now. And that’s what it’s taking its cue from. I’ll have an updated five-year target price on the S&P 500. A recap of a lot of these stocks that we talked about this past week. and technical analysis on all of the major asset classes along with what we currently own in our portfolios. That’s in the live trading slash client newsletter, which you can get four weeks of at GundersenCapital.com. I think our website’s having an issue. I know it is. It’s going to be back up real soon. There was an issue with plug-ins or something like this. You know, it’s always something, and they’re getting it fixed. Those plug-ins can be toxic like antimony. If you’d like to make an appointment with us, 855-611-BEST. 855-611-BEST. Have a great day.
SPEAKER 02 :
We show another solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
