A Household Name On The Clearance Shelf

This week’s Sunday Screener is inspired by the late Charlie Munger, Warren Buffett’s business partner, who once described a dead-simple strategy for beating the market:

If all you ever did was buy high-quality stocks on the 200-week moving average, you would beat the S&P 500 by a large margin over time. The problem is, few human beings have that kind of discipline.

In today's Sunday Selection, we report on the world's largest entertainment aggregator – right now, the market fears AI will flood this firm with infinite content, but the more content the world makes, the more its curation is worth.

As of Thursday’s close, the Munger screen produced the following 29 stocks:

To see the criteria applied to create our Modified Munger Screen, click here.

Questions about our Sunday Screener?... drop us an email at porterstansberrydirect@gmail.com.

Highs And Lows

Each week, we also monitor any stocks in the market making 52-week highs. We do this because any stock on its way to generating 2x, 3x, or 10x returns will spend a lot of time making 52-week highs along the way. Thus the 52-week-high list provides an opportunity to flag these potential high performers before they really break out, with a particular emphasis on lower-profile, less widely-followed stocks that might have otherwise gone unnoticed.

Notable stocks making new 52-week highs last week:

JPMorgan Chase (JPM)
Visa (V)
Bank of America (BAC)
RTX (RTX)
Charles Schwab (SCHW)
Eaton (ETN)
Parker-Hannifin (PH)
Bank of New York Mellon (BNY)
PNC Financial Services (PNC)
U.S. Bancorp (USB)
Johnson Controls International (JCI)
3M (MMM)
Illinois Tool Works (ITW)
Ross Stores (ROST)
United Rentals (URI)
Allstate (ALL)
Target (TGT)
MetLife (MET)
Nucor (NUE)
Delta Air Lines (DAL)
Garmin (GRMN)
Fastenal (FAST)
AMETEK (AME)
State Street (STT)

Presented By: Tuttle Capital Management

We also monitor stocks on the 52-week-low list. In many cases, the names on this list are there for good reason – the market is often correctly pricing in their weak fundamentals. However, once in a while, a great business with excellent long-term prospects finds itself on this list due to a temporary setback. This can create the rare opportunity to buy top-shelf merchandise at bargain-basement prices.

Notable stocks making new 52-week lows last week:

PepsiCo (PEP)
Public Service Enterprise Group (PEG)
Rollins (ROL)
Aptiv (APTV)
Pilgrim's Pride (PPC)
Celsius (CELH)
Group 1 Automotive (GPI)
Wingstop (WING)
LeMaitre Vascular (LMAT)
Capri Holdings (CPRI)
Collegium Pharmaceutical (COLL)
AdaptHealth (AHCO)
Papa John's International (PZZA)

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An Entertainment Leader Priced For Irrelevance

This week's Sunday Selection comes off the 3x Screen – a company that's grown into a household name. It runs one of the best business models in the world: costs are largely fixed, so as customers are added, the majority of each incremental sale flows straight through to cash flow. That's how it has consistently expanded margins for over a decade.

But slowing growth and fear of AI disruption have hammered the stock. It now trades roughly 45% off a high set just over a year ago. If it stays a household name – and we think it will – it's on track for full Lindy status, and today's discount should prove temporary.

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