Institute of Advanced Investment Management
Undergraduate Student Investment Fund
Presented by: Chloe Shewell, Jack McCormick, Jack Pollock, Noelle Kieffers
Date Presented: 10/28/2024
Type: Fundamental Analysis
Investment decision: Invested
Summary: The analysis evaluates Delta Air Lines as a strong investment opportunity. Delta’s robust business model, extensive flight network, and customer-focused incentives like the SkyMiles program and premium services ensure consistent revenue growth. The recommendation proposes investing $7,098 in Delta stocks, with a target price of $83.04 by October 2027, reflecting a 53.44% upside. While Delta faces risks like high competition, oil price sensitivity, and reliance on the U.S. economy, its strong governance, commitment to sustainable travel, and plans to modernize its fleet position it well for long-term growth in the evolving airline industry.
Presented by: Harrison Calder and Gabi Miller (The Three Musketeers)
Date Presented: 10/28/2024
Type: Fundamental Analysis
Investment decision: Did Not Invest
Summary:The analysis of Spotify concludes with a recommendation to not buy the stock at its current valuation. While Spotify has strengths such as a leading market share (36%), a rapidly growing user base, and innovative offerings like AI integration and audiobooks, it faces significant challenges. The company struggles with profitability due to high royalty costs and difficulty monetizing free users. Additionally, its high valuation (PE Ratio of 140.89) and reliance on third-party licensing present considerable risks. The implied stock price of $351.11 is 7.4% below the current price of $379.16, suggesting limited upside in the near term. The recommendation is to monitor the stock for future opportunities.
Presented by: Harrison Calder and Gabi Miller (The Three Musketeers)
Date Presented: 11/04/2024
Type: Fundamental Analysis
Investment decision: Did Not Invest
Summary: The analysis of Packaging Corporation of America (PKG) concludes with a recommendation to buy 100 shares for $23,000, given its strong market position, steady growth, and favorable valuation. PKG operates in a mature, capital-intensive industry and focuses on high-quality, customer-centric packaging solutions, with vertical integration and innovation driving efficiency. Despite declining paper demand in North America, PKG is well-positioned due to its emphasis on sustainability and custom orders. The stock’s target price of $314.96 represents a 36.9% upside from the current price of $229.99, making it a solid investment opportunity with reduced volatility (beta of 0.76) compared to the broader market.
Presented by: Andrew Rosen, Cole Wall Robert Nathson, & Austin Glenn
Date Presented: 11/04/2024
Type: Fundamental Analysis
Investment decision: Invested
Summary: Progressive Corporation is a leading insurance company specializing in auto, commercial, and property insurance, known for its innovative use of technology like telematics and personalized pricing. The analysis recommends investing $20,000 in the company, supported by a target price of $261.40, reflecting a 7.7% undervaluation and 12.39% potential gain. While the company faces risks such as over-reliance on auto insurance and regulatory challenges, its strong governance, financial stability, and focus on innovation position it for continued growth in a competitive industry.
Presented by: Aaron DelGrande, Maddie Osborn, Isaac Lee, Noah
White
Date Presented: 11/11/2024
Type: Fundamental Analysis
Investment decision: Invested
Summary: The analysis of GE Vernova (GEV) concludes with a recommendation not to buy the stock due to overvaluation. Despite its leadership in renewable energy and electric power, and its diversified portfolio in power, wind, and electrification, GEV’s current price of $341.18 exceeds its implied valuation of $293.17 by 14.07%. While GEV benefits from strong management, global energy trends, and significant market presence, it faces challenges such as competitive pressures, supply chain vulnerabilities, and setbacks like turbine failures. The company remains a strong candidate for monitoring, with potential for growth in decarbonization and renewable energy but requires a more favorable entry price.
Presented by: Jack Perry, Elias Stewart, Tim Odjav, & Kyler Zarate
Date Presented: 11/11/2024
Type: Fundamental Analysis
Investment decision: Invested
Summary: The analysis of Caterpillar Inc. (CAT) concludes with a recommendation to buy $5,000 worth of stock at a target price of $355.44, representing a 9.64% discount from the current price of $393.37. As the industry leader in construction and mining equipment, Caterpillar benefits from a diverse product portfolio, strong global brand recognition, and innovation-driven growth. Despite being overvalued at present, the company is well-positioned to capitalize on growing infrastructure demand and technological advancements in automated machinery. The recommendation suggests purchasing shares if the price decreases by 10%, with a target sell date of December 31, 2027.
Presented by: Harrison Calder and Gabi Miller (The Three Musketeers)
Date Presented: 04/03/2024
Type: Fundamental Analysis
Investment decision: Did Not Invest
Summary: XYZ
Presented by: Harrison Calder and Gabi Miller (The Three Musketeers)
Date Presented: 04/03/2024
Type: Fundamental Analysis
Investment decision: Did Not Invest
Summary: XYZ
Presented by: Harrison Calder and Gabi Miller (The Three Musketeers)
Date Presented: 04/03/2024
Type: Fundamental Analysis
Investment decision: Did Not Invest
Summary: XYZ
Presented by: Harrison Calder and Gabi Miller (The Three Musketeers)
Date Presented: 04/03/2024
Type: Fundamental Analysis
Investment decision: Did Not Invest
Summary: XYZ