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Finimize Research

Independent in-depth research from Finimize

Finimize

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Thematic (Sector/Industry)

<ul>
<li>The US economy’s resilience hasn’t come from the many – it’s come from the top 10% as the “wealth effect” from rising asset prices has boosted spending.</li>
<li>But it works in reverse too.  Since the richest make up nearly half of America’s consumer spending, that could lead to a serious economic fallout.</li>
<li>It’s worth considering protecting your portfolio. I’ve pulled together one list of companies that should do well and another that could suffer from the change in climate.</li>
</ul>


The US economy’s resilience hasn’t come from the many – it’s come from the top 10% as the “wealth effect” from rising asset prices has boosted spending.
But it works in reverse too.  Since the richest make up nearly half of America’s consumer spending, that could lead to a serious economic fallout.
It’s worth considering protecting your portfolio. I’ve pulled together one list of companies that should do well and another that could suffer from the change in climate.


A Defensive Portfolio Prepared For The Wealth Effect’s Reversal

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>AutoZone, Inc. delivered a robust performance in the fourth quarter of the fiscal year 2024, led by significant sales increases and growth strategies in both its domestic and international operations.</li><li>The company's total sales surged by 9% in the fourth quarter, while earnings per share (EPS) increased by 11%.</li><li>Underpinning these results was a consistent focus on customer service excellence and strategic expansion, particularly in commercial sales and international operations.</li></ul>

AutoZone, Inc. delivered a robust performance in the fourth quarter of the fiscal year 2024, led by significant sales increases and growth strategies in both its domestic and international operations.The company's total sales surged by 9% in the fourth quarter, while earnings per share (EPS) increased by 11%.Underpinning these results was a consistent focus on customer service excellence and strategic expansion, particularly in commercial sales and international operations.

AutoZone Inc.: Tackling The International Market Dynamics & FX Impact! - Major Drivers

Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tuhu-car-inc" target="_blank" data-smartkarma-citation="entities:36012:1" rel="noopener">Tuhu Car (9690 HK)</a> is poised to capture the lion share of China's automotive aftersales service industry that is forecasted to grow at 7.3% CAGR from 2023:30. </li>
<li>Tuhu is on an inflection of high earnings growth (+30% CAGR) as it has reached scalability, cost efficiency, and its younger shops are maturing profitably.    </li>
<li>Our fair value of HKD24 implies 25x FY25 PE - average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.</li>
</ul>



Tuhu Car (9690 HK) is poised to capture the lion share of China's automotive aftersales service industry that is forecasted to grow at 7.3% CAGR from 2023:30. 
Tuhu is on an inflection of high earnings growth (+30% CAGR) as it has reached scalability, cost efficiency, and its younger shops are maturing profitably.    
Our fair value of HKD24 implies 25x FY25 PE - average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.


Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

<ul><li>AutoZone's 2024 Q3 Earnings indicated a steady, albeit slightly slowed, growth, triggered by unique weather conditions, stricter tax refund season, and less than expected sales.</li><li>Before analyzing the specifics, it is crucial to acknowledge AutoZone's adherence to its pledge for WOW!</li><li>Customer service although operating in a volatile business environment.</li></ul>

AutoZone's 2024 Q3 Earnings indicated a steady, albeit slightly slowed, growth, triggered by unique weather conditions, stricter tax refund season, and less than expected sales.Before analyzing the specifics, it is crucial to acknowledge AutoZone's adherence to its pledge for WOW!Customer service although operating in a volatile business environment.

AutoZone Inc.: How Will The Increasing Number Of Mega-Hubs Impact The Top-Line? - Major Drivers

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>Autozone is an underappreciated franchise with compelling risk-adjusted return potential</li><li>Largest auto parts retailer by revenue with over 6,300 stores in the U.S. and international presence</li><li>Strong growth through focus on higher margin private label sales and automotive diagnostic software, resilient business model, and impressive track record of shareholder value creation</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Autozone is an underappreciated franchise with compelling risk-adjusted return potentialLargest auto parts retailer by revenue with over 6,300 stores in the U.S. and international presenceStrong growth through focus on higher margin private label sales and automotive diagnostic software, resilient business model, and impressive track record of shareholder value creationThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

United States

AutoZone, Inc. is a specialty retailer of automotive replacement parts and accessories. The Company offers an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products.  Autozone operates in United States and Puerto Rico, and Mexico.

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Autozone Inc (AZO US)

A Defensive Portfolio Prepared For The Wealth Effect’s Reversal

The top 10% account for around 50% of consumer spending in the US. This insight looks at the sectors and companies that could win and lose from the...

Finimize Research

AutoZone Inc.: Tackling The International Market Dynamics & FX Impact! - Major Drivers

AutoZone, Inc. delivered a robust performance in the fourth quarter of the fiscal year 2024, led by significant sales increases and growth...

Baptista Research

Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.

Mohshin Aziz

AutoZone Inc.: How Will The Increasing Number Of Mega-Hubs Impact The Top-Line? - Major Drivers

AutoZone's 2024 Q3 Earnings indicated a steady, albeit slightly slowed, growth, triggered by unique weather conditions, stricter tax refund...

Baptista Research

Autozone Inc (AZO) - Friday, Feb 2, 2024

Autozone is an underappreciated franchise with compelling risk-adjusted return potential. Largest auto parts retailer by revenue with over 6,300...

Value Investors Club (VIC)

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A Defensive Portfolio Prepared For The Wealth Effect’s Reversal

The top 10% account for around 50% of consumer spending in the US. This insight looks at the sectors and companies that could win and lose from the...

Finimize Research

AutoZone Inc.: Tackling The International Market Dynamics & FX Impact! - Major Drivers

AutoZone, Inc. delivered a robust performance in the fourth quarter of the fiscal year 2024, led by significant sales increases and growth...

Baptista Research

Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

​Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.

Mohshin Aziz

AutoZone Inc.: How Will The Increasing Number Of Mega-Hubs Impact The Top-Line? - Major Drivers

AutoZone's 2024 Q3 Earnings indicated a steady, albeit slightly slowed, growth, triggered by unique weather conditions, stricter tax refund...

Baptista Research

Autozone Inc (AZO) - Friday, Feb 2, 2024

Autozone is an underappreciated franchise with compelling risk-adjusted return potential. Largest auto parts retailer by revenue with over 6,300...

Value Investors Club (VIC)

Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.