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With an economic moat that is constantly being underestimated by Wall Street, this company sports high margins and a low valuation - a potent combination for patient investors.
Lead advisor Matthew Cochrane’s June recommendation sports a network effect that has consistently been underestimated by Wall Street. While earnings are falling now, this has given investors a chance to buy shares at a discount to the broader market while many signs point to a resurgence in growth by the second half of this year.
Transcript
My top stock pick this month enjoys what I believe to be one of the most powerful network effects in the public company universe, though it is constantly being underestimated by Wall Street.
Hi, I’m Matthew Cochrane, a lead advisor for 7investing. A network effect is the phenomenon where each additional user directly adds to the value of that product or service to its users. This makes for one of the most powerful types of economic moats. similar to how moats once protected castles from invading armies, economic moats protect companies from competitors attempting to invade their markets. They are the characteristics that allow companies to charge higher prices and generate greater profits. And the company I’m recommending this month sports some high margins.
The best part about my recommendation? By nearly any valuation metric you use, it’s selling at a discount to the broader stock market.
If you’re interested in my stock pick this month, visit 7investing.com. For a low annual price you will gain access to all 7 of our stock recommendations each and every month.
I’m Matthew Cochrane, we’re 7investing, and we’re here to empower you to invest in your future
