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Investing Experts

Top AI stock picks and Foot Locker's disappearing dividend with quant pro Steven Cress

Aug 23, 2023
Steven Cress, head of Quantitative Strategy at Seeking Alpha, discusses the recent pullback in AI stocks, Nvidia's value metric, top buy-the-dip opportunities, and how Quant Ratings detected Foot Locker's problems.
17:53

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • NVIDIA, a leading AI stock, may be overvalued based on its valuation metrics, but its peg ratio suggests it could still be a hold or potentially an attractive buy.
  • Taking advantage of the recent pullback in the AI sector can provide attractive investment opportunities, especially in stocks like Meta and Google that have performed well in the sector.

Deep dives

Analysis of NVIDIA as an AI stock

NVIDIA, a leading AI stock, is not on the top three list due to its valuation grade, which is an F. Despite its strong growth, profitability, momentum, and EPS revisions, NVIDIA's valuation metrics, such as PE, PEG, and price-to-sales ratios, indicate that the stock may be overvalued. However, the peg ratio, which combines growth and value, shows that NVIDIA is slightly undervalued compared to the sector. While the overall valuation grade is an F, the peg ratio suggests that the stock could still be a hold or potentially an attractive buy.

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