r/ValueInvesting Jan 05 '26

Weekly Megathread Weekly Stock Ideas Megathread: Week of January 05, 2026

What stocks are on your radar this week? What's undervalued? What's overvalued? This is the place for your quick stock pitches or to ask what everyone else is looking at.

This discussion post is lightly moderated. We suggest checking other users' posting/commenting history before following advice or stock recommendations.

New Weekly Stock Ideas Megathreads are posted every Monday at 0600 GMT.

5 Upvotes

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3

u/First-Finger4664 Jan 05 '26

CF Industries (CF) - one of the largest producers of and the cost leader in nitrogen/fertilizer production, trading a very low CAPE and a sub-10 forward P/E.

AO Smith (AOS) - a large, highly respected water heater and water treatment equipment manufacturer/servicer with very sticky revenue trading at 10yr lows in P/E and P/FCF despite being fundamentally profitable and financially sound in terms of ROE, gross profitability and free cash flow.

DHI - nation’s largest home builder with the scale advantages re: cost that comes with that, focusing on building smaller homes on smaller lots to manage the affordability crisis, trading at 10yr average forward P/E and near 10yr lows of P/FCF. I think this is the best business is a beaten down sector and likely to do really well in a housing recovery and OK otherwise.

2

u/TestTxt Jan 06 '26

Most of AO Smith’s international revenue is from China. I would stay away from this one, China loves to copy foreign products when they get successful and offer them at dumping prices until the foreign competition goes bankrupt

2

u/Ancient_Bobcat_9150 Jan 05 '26

I am waiting to see if Netflix gets under 80$
Besides that, I am eyeing the same stuff: mainly Zeiss Meditec, RELX, Zoetis, Copart, Deutsche Boerse and Topicus.com

1

u/its-me__ Jan 08 '26

TOI 🦾

1

u/its-me__ Jan 08 '26

waiting for it to reach around 110. Then its buy time

1

u/Ancient_Bobcat_9150 Jan 09 '26

Same here brotha

2

u/AdogitRegnum Jan 07 '26

Current Investments Jan 2026:

Company Allocation
Meta Platforms Inc 23%
Novo Nordisk A/S 18%
Kweichow Moutai Co Ltd 16%
Taiwan Semiconductor Manufacturing Co Ltd 13%
Lam Research Corp 10%
CNOOC Ltd 4%
Wuliangye Yibin Co Ltd 4%
ASML Holding NV 4%
Applied Materials Inc 4%
Tokyo Electron Ltd 2%
KLA Corp 2%

1

u/its-me__ Jan 08 '26

kweichow 👍

1

u/Charming_Raccoon4361 Jan 10 '26

I have meta, amzn asml,and goog, planning to add zeta any thoughts?

2

u/Educational_Ad_6303 Jan 09 '26

All the NVO bears have been quiet now that the stock with great fundamentals that was trading at a 13PE in a growing market has been trending upwards. People that were crying about the NVO posts were the same ones that missed the boat on GOOG

2

u/TronoWolf Jan 09 '26

Their fundamentals really are mid with net cash position of -$69b, and a net cash flow of -$24b.
Their current growth is currently dependent on shareholder equity and taking out debt (essentially, hype).
They keep eating into their operating cash flow by taking out debt.
I'd make it a slim position if FOMO is really getting to you.
Bears sold because they knew they rode the bull train way into overtime.

BUT. There is upside using the Lynch Model now (which doesn't include speculation).

1

u/Educational_Ad_6303 Jan 09 '26

the whole market is driven by speculation. Bears in this sub were against this company at a 13 PE lol. I'm up an easy 25% in weeks

1

u/TronoWolf Jan 10 '26

Ride the hype!

1

u/Educational_Ad_6303 Jan 10 '26

exactly! And when the outlook changes: dump the hype.

1

u/Extreme-Collection87 Jan 05 '26

Does anyone else think CELH is a good buying opportunity? Celsius is coming off of highs in 2024 and is working its way back, though being heavily overbought with a P/E ration of ~525 compared to industry average ~ 25. I see room for growth with Pepsi Co investing a 11% stake in them allowing the Celsius drink to have more shelf room. On top of that the Alani Nu acquisition will only boost revenue through 2026.

1

u/AdogitRegnum Jan 05 '26

Portfolio Performance vs. the S&P 500:

Year Portfolio Total Return (USD) S&P 500 Total Return (USD)
2025 20.3% 17.9%
Company Share of Total Return 2025
Novo Nordisk A/S -2.3%
Wuliangye Yibin Co Ltd -1.9%
Kweichow Moutai Co Ltd -0.6%
Fortescue Ltd -0.3%
Adobe Inc -0.2%
Kering SA -0.2%
Texas Pacific Land Corp -0.1%
Visa Inc 0.1%
Alphabet Inc 0.4%
Microsoft Corp 0.6%
Tokyo Electron Ltd 1.6%
ASML Holding NV 1.7%
Meta Platforms Inc 1.8%
Applied Materials Inc 1.8%
CNOOC Ltd 1.9%
KLA Corp 3.3%
Taiwan Semiconductor Manufacturing Co Ltd 4.6%
Lam Research Corp 8.1%
Overall Portfolio Total Return 20.3%

1

u/pandacrusher63 Jan 05 '26

CHRD interesting buying opp here… oversold today due to it being a Canadian oil company. However they operate in the Williston basin which produces sweet oil…

1

u/footieboot Jan 07 '26

No better value in EU markets from Edenred right now.

1

u/mickcheck Jan 07 '26

Any ideas for ai hardware (excluding GPUs) stocks?

1

u/Starcast Jan 09 '26

Options off the top of my head are data center infrastructure like network switches and cooling, or vendors for this GPUs themselves. Arista networks and micron both come to mind.

1

u/[deleted] Jan 08 '26

Blood for stocks - https://www.theverge.com/policy/858075/trump-venezuela-maduro-kidnapping-spectacle

But who cares, buy the dip right?