We continue with more updates to Long Ideas that recently reported calendar 1Q21 earnings. This week, we’re reiterating three Long Ideas that have underperformed the S&P 500 since our original reports: Amgen, Inc (AMGN: $247 /share), McDonald’s Corporation (MCD: $234/share), and Colgate-Palmolive Company (CL: $81/share). More details in Figure 1.
Figure 1: Long Idea Performance: From Date of Publication Through 5/4/2021
Sources: New Constructs, LLC
*Measured from the date of publication of each respective original report. Dates can be seen in each company section below. Performance represents price performance and is not adjusted for dividends.
Amgen: Looks Cheap at Current Price with 66%+ Upside
Amgen’s expertise in developing human therapeutics enables it to diversify revenues across several products. For instance, the firm’s top eight products accounted for 71% of the firm’s revenues in 1Q21. Repatha, a product that treats cardiovascular disease, saw the largest year-over-year (YoY) growth, with revenue rising 25% in 1Q21. With its earliest patent not set to expire until 2028, Repatha has a long runway for future revenue growth.
This article originally published on May 5, 2021.
Disclosure: David Trainer owns SYY and H. David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, sector, style, or theme.
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Disclosure: New Constructs
Disclosure: David Trainer, Kyle Guske II, Sam McBride, Matt Shuler, Alex Sword, and Andrew Gallagher receive no compensation to write about any specific stock, style, or theme.
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