Growth Stock Thoughts
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
Taiwan Semiconductor Dominates Leading Edge
• Semiconductor market is expected to double in size by 2030. TSM (Taiwan Semiconductor Manufacturing) accounts for 26% of the world’s semiconductor output.
• Largest pure play fabricator, strength comes from long-term relationships.
• Scale and leading-edge technology as one of the only sub 7nm wafer technology manufacturers in the world.
• International expansion slotted in Japanese and American markets driven by a $100 billion CapEx (Capital Expenditure) expansion.
• Western governments want to distance domestic technology products from China and bring manufacturing back to their countries or local allies.
• The US CHIPS and Science Act provides roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States.
SuperVision Provides Future Vision for Mobileye
• Strong growth in advanced driver assistance systems, despite making up under 1% of volume, SuperVision makes up 33% of revenue growth.
• $17 billion in contracted sales cumulatively through 2030, with an average system price of $105 expected compared to the current $56.2.
• Robust real-world implementation of SuperVision, with 96,000 units deployed in FY22. Expecting >100% growth in units shipped for FY23.
• Backed by strong consumer demand for more safety features and more fatigue-reducing driver features.
Video: Global Payments (GPN) Unloved and Undervalued. Strong Growth and Low Valuation. Best of Both Worlds
• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.
3.25% Yield and Healthcare Repositioning for CVS Health
• 3.25% dividend yield, strong free cash generation.
• Oak Street acquisition projected to add $2 billion in EBITDA by 2026.
• Expects significant volume growth at pharmacies with the introduction of several biosimilar and generic drugs in FY23.
• Modest FY23 guidance targeting 7% EPS growth despite some sustained headwinds in retail.
EnerSys Growth Is Electrified By IRA
EnerSys (NYSE:ENS) is an industrial solutions firm focusing heavily on stored energy. ENS has 22% of global stored energy for industrial applications.
![SPR Oil[39]](https://buildingbenjamins.com/wp-content/uploads/2023/03/SPR-Oil39-1024x640.png "SPR Oil[39]")
Video: 8 Compelling Energy Stocks. SPR (Strategic Petroleum Reserve) Reversing Soon. Russian Oil Sales. LNG.
PR (Strategic Petroleum Reserve) depletion is ending. The US is draining this reserve by about 700,000 barrels per day. Eventually, this will need to be replaced and could increase demand by 700,000 to 1,000,000 barrels a day as the SPR is refilled. A possible swing in the supply-demand balance of 1.4 to 1.7 million barrels per day. This is significant for commodity pricing when one looks at the US demand of 19-20 million barrels per day.
Video: Centrus Growth Enriched by Domestic HALEU Deal
• The first domestic enriching capacity contract was granted to Centrus since US capacity fell to 0 in 2013.
• Significant money in next-generation nuclear technology utilizing HALEU fuels. Centrus has first mover advantage, being granted $150 million from the DoE for commercialization.
• Centrus expects a 40% growth in nuclear energy by 2050 without climate incentive policies. 105% with those policies included.
• Every US reactor imports 100% of its fuel, including 30% from Russia. Estimated 15 million SWU gap if Russia is cut off from uranium exports
Centrus Growth Enriched by Domestic HALEU Deal
• The first domestic enriching capacity contract was granted to Centrus since US capacity fell to 0 in 2013.
• Significant money in next-generation nuclear technology utilizing HALEU fuels. Centrus has first mover advantage, being granted $150 million from the DoE for commercialization.
• Centrus expects a 40% growth in nuclear energy by 2050 without climate incentive policies. 105% with those policies included.
• Every US reactor imports 100% of its fuel, including 30% from Russia. Estimated 15 million SWU gap if Russia is cut off from uranium exports
Global Payments Unloved and Undervalued
• Movement toward B2B payments, a historically under-penetrated sector for payment processors.
• Strong background for growth in megatrends, 15% 5-year-CAGR expected for eCommerce.
• #1 player in card issuance, top 5 in payment processing globally.
• Expecting 6% company-wide revenue growth in 2023, and 15% growth in merchant solutions.
AKAM: Trusted in Security Moves into IAAS Sector
• Shifting mix toward security solutions and Infrastructure as a Service (IaaS).
• Moving away from mature products like CDNs (Content Delivery Networks) toward more edge offerings.
• Countering employee stock-based dilution with $1.4 billion in authorized buybacks.
• Strong 3–5-year growth rates on computing and security segments more than offsetting modest declines in CDN.
• Increasing deal size and increasing add-on services.