Trade Call: Buy Portillo\"s ($PTLO) on Undervalued Price-to-Sales and Strong Insider Buying
about 1 month ago
Stephen Farrington
"I was going to talk about two stocks today, Crocs and Portillo\"s... In Portillo\"s you had big inside buys by the CFO and the general counsel at the same time. For this one, I\"d focus on price to sales... it’s trading at 0.68 right now and if the market starts believing, I think that\"s going to go from 0.68 to three pretty quick. You\"re buying it now for half the price with twice as many locations."
The guest recommends buying Portillo\"s ($PTLO) based on substantial insider buying (by CFO and general counsel) and an extremely low price-to-sales ratio of 0.68. The thesis is that with market acceptance, the multiple could expand to around 3, driven by strong same-store performance and robust net promoter scores.
Scores
Alpha Potential
8.5/10
Novelty
8.0/10
Credibility
8.0/10
Timeliness
8.0/10
Overall
8.3/10
Sentiment
Bullish
Conviction
High
Tier
Trade Call
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Episode Information
Episode:
Unemployed Value Degen Stephen Farrington on small cap stocks $PTLO and $CROX | S07 E31
Source:The Acquirers Podcast
Published:
September 13, 2025
Idea Type:
Stock Idea