4 Incredible Stocks I Love Today
Overall Thesis
Four undervalued growth stocks with strong long-term revenue compounding potential and margin expansion opportunities are positioned to outperform as the market rotates away from AI-focused trades.
Narratives
Travis views Hims & Hers as his biggest portfolio position, citing reaccelerating revenue growth after the GLP-1 compounding loophole closed, a new Novo Nordisk partnership, and an expanding 'healthcare aggregator' business model. He believes the company has significant room for margin expansion and multiple re-rating given its low EV/sales.
Key Arguments
- Revenue growth reaccelerated to 38% in Q2 2026 after slowing to 3.8% when the GLP-1 compounding loophole closed
- New agreement to sell Eli Lilly and Novo Nordisk branded GLP-1s repositions the weight-loss business
- Subscriber count jumped to 2.9 million, partly from the Eucalyptus acquisition, with spend per subscriber also rising
- Positioning as a healthcare 'aggregator' that captures user data and cross-sells more solutions
- Trading at just 2.8x EV/sales trailing and under 2x forward, with margins near breakeven and upside to expand
Predictions (1)
Travis is bullish on Zeta Global for its consistent high-30% revenue growth and expansion into new markets and business intelligence services. He sees the stock as reasonably valued relative to its growth rate, with a partnership with Palantir supporting the business intelligence pivot.
Key Arguments
- Compound annual revenue growth rate of about 38% since Q1 2024, with 36% growth over the past year
- Expanding total addressable market by moving down-market to smaller advertisers and agencies
- Pivoting into business intelligence, supported by a partnership with Palantir
- Reasonable valuation at 4.4x EV/sales trailing, 3.6x forward, and about 25x forward price-to-free-cash-flow
Travis calls Lyft 'the real value play in ride sharing today,' pointing to a very low valuation, net cash balance sheet, growing bookings and free cash flow, and optionality from its Waymo autonomous vehicle partnership. He also floats the idea that Lyft could eventually be an acquisition target given its scale of active riders.
Key Arguments
- Enterprise value of just $5.8 billion versus $6.4 billion market cap due to net cash position
- Extremely low valuation: 0.9x EV/sales, under 6x trailing price-to-free-cash-flow
- Bookings grew at a 16% CAGR since 2022, riders up 12% to over 30 million active riders
- Free cash flow turned positive, now $1.1 billion after being negative in 2024
- Partnership with Waymo and FlexDrive depots provide autonomous vehicle optionality
Travis calls Owlet the most speculative of his four picks but sees long-term tailwinds from its FDA-cleared baby monitoring products, growing Owlet 360 subscription base, and a competitive moat reinforced by Amazon's removal of non-FDA-cleared competitor products. He expects continued revenue growth and eventual margin improvement despite current negative free cash flow.
Key Arguments
- Only FDA-cleared vital-sign baby monitor, creating a moat as Amazon delisted non-cleared competitor products
- Owlet 360 subscribers grew from about 48,000 to 130,000 in about a year
- Revenue growth near 30% over the past three years with improving operating margins
- Very low valuation at about 1.5x EV/sales with under $200 million market cap
- Potential to add telehealth features to the subscription bundle, increasing value
Hedges & Caveats
- Stocks are volatile and subject to market fluctuations
- Portfolio performance is historical and not guaranteed to continue
- Video creator owns these stocks (potential conflict of interest)
- Regulatory changes can impact business models (e.g., FDA closure of GLP-1 loophole)
- Reliance on future revenue growth and margin expansion assumptions