In this segment from the Motley Fool Money podcast, host Chris Hill asks Million Dollar Portfolio's Jason Moser and Matt Argersinger, and Motley Fool Pro and Options' Jeff Fischer to tell us about the companies they have their eyes on this week, and why: cancer-focused biotech Celgene (NASDAQ: CELG), sportswear power-player Under Armour (NYSE: UA) (NYSE: UAA), and Chinese internet giant Baidu (NASDAQ: BIDU).
A full transcript follows the video.
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This video was recorded on Oct. 27, 2017.
Chris Hill: Time to get to the stocks on our radar this week. And for that, of course, we bring out our man behind the glass, Steve Broido to hit you with a question. Jeff Fischer, you're up first. What are you looking at this week?
Jeff Fischer: If you're a biotech investor, you have to take a look at Celgene now. The formerly $100 billion biotech leader is now about $75 billion. It's actually lost 33% over the past month. It's a cancer inflammatory disease treating tech giant. One of its leading drugs saw light sales, one of its pipeline candidates had a giant setback, but the company still foresees 20% earnings-per-share growth annualized through 2020, and the stock trades at 7.8X that estimate. Now, that said, Chris, a year or two ago, they gave guidance out to 2020, and when they did that, I got a little nervous. IBM has tried that. eBay tried it years ago. And when you're wrong, the stock gets clocked, and that's what's happened, because they had to lower that guidance a lot.
Hill: And the ticker symbol?
Hill: Steve, question about Celgene?
Steve Broido: How involved are they in the genomics space? With all this genome stuff going on you hear about all the time?
Fischer: I think it's become an integral part of almost any very large biotech company, but they don't talk about it that much, Steve.
Hill: Jason Moser, what are you looking at?
Jason Moser: Under Armour, ticker UA. Earnings are up here on Halloween. Here's hoping for a treat not trick. Now that founder Kevin Plank has a full executive team with Patrik Frisk as COO and David Bergman is the new CFO, I'd like to see if it doesn't benefit in that he has this full team helping lead this company forward. It could be argued that he made some bad decisions, decisions that maybe haven't paid off like he'd hoped previously. And there's a lot of value in having a team with diverse and respected opinions. Frisk particularly, he has a lot of experience with retail and apparel with V.F. Corp and ALDO. Maybe some improvement there with Curry 4 lineup coming out. Easier comps coming down the road for the coming year here in 2018. So, I'm just interested to see how they're looking at 2018 and beyond with this new executive team.
Broido: When do they get beyond just sportswear? I know they claim to be a little bit, but when does that happen?
Moser: Steve, let me tell you. About a month ago, I went on the app and I ordered three new pairs of Under Armour slacks. And I'm going to tell you, man, I love the stock, and you know that. But these are by far and away the best pants I have ever bought.
Hill: Matt Argersinger, we have less than a minute, what are you looking at?
Matt Argersinger: I'm sticking with Baidu, BIDU. I just think the sell off on Friday was a little overdone. You have a strong balance sheet, strong, improving, accelerating core business, you have iQiyi and you have optionality around AI and driverless cars.
Broido: Would you like to visit China if you could?
Argersinger: I would. I would, Steve. I'd take you with me, too.
Hill: Three stocks and an offer to go to China, what are you going with, Steve?
Broido: I think I may be going with Jeff Fischer.
Argersinger: Oh, no China trip?! I thought I had him!
Hill: I thought the trip --
Broido: The pants, too, the pants sounded good.
Moser: They're good pants.
Chris Hill owns shares of eBay and Under Armour (C Shares). Jason Moser owns shares of Under Armour (C Shares). Jean Fischer has no position in any of the stocks mentioned. Matthew Argersinger owns shares of Baidu and Under Armour (C Shares). Steve Broido has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Baidu, Celgene, eBay, and Under Armour (C Shares). The Motley Fool has a disclosure policy.