Bill Miller IV Isn't Chasing Nvidia In Its $1-Trillion Days: 2 Stock Ideas From The Money Manager
Portfolio Pulse from Ryan Glosier
Bill Miller IV, now 80% owner of Miller Value Partners, discussed the firm's transition and stock views on CNBC. He expressed skepticism about chasing big-cap tech stocks like Nvidia at a $1-trillion valuation and suggested looking for value in out-of-favor sectors. Miller IV mentioned Stellantis and Verizon as undervalued stocks.
May 31, 2023 | 11:12 pm
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POSITIVE IMPACT
Bill Miller IV called Stellantis cheap, with shares trading at 1x operating income and an EBITDA/market cap yield of above 55%. He also mentioned the automaker's attractive revenue growth trends and a safe 9.42% dividend yield.
Miller IV's positive comments on Stellantis' valuation, revenue growth trends, and dividend yield suggest that the stock may have upside potential in the short term. His focus on finding value in out-of-favor sectors could attract investors to undervalued stocks like Stellantis.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Bill Miller IV called Verizon undervalued on a historical basis and a safe bet if the economy is going into a recession. He described it as a strong name for investors to park money in the equity market, with a yield above 7%.
Miller IV's positive comments on Verizon's valuation and safety in a potential recession suggest that the stock may have upside potential in the short term. His focus on finding value in out-of-favor sectors could attract investors to undervalued stocks like Verizon.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Bill Miller IV is skeptical about chasing Nvidia at a $1-trillion valuation, suggesting that outperformance in the coming years may not be driven by big-cap tech at current valuations.
Miller IV's skepticism about Nvidia's valuation and the potential for big-cap tech to drive outperformance in the coming years suggests that the stock may face headwinds in the short term. His focus on finding value in out-of-favor sectors implies that investors may shift their attention away from big-cap tech stocks like Nvidia.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80