Stansberry Investor Hour

Gold Royalty Stocks Demonstrate Resilient Bullish Momentum

-2.35%current return

"We have had a great run so far on Royal Gold in extreme value because we love royalty companies. It’s a wonderful, just cash gushing model business model. And then when we type RGLD into our discovery engine, we see other gold names with bullish ratings."

The discussion showcases gold royalty stocks with Royal Gold (ticker RGLD) serving as a prime example. The commentary points to several gold equities, noting that these stocks are benefiting from strong fundamentals and robust cash flows. This highlights an alternative way for investors to gain exposure in a market where central banks continue adding to gold reserves.

Comfort Systems (FIX) Poised to Benefit from AI-Driven Construction

+2.72%current return

"For instance, this company called Comfort Systems, the symbol is FIX. They're in the air conditioning business, basically. But they're using AI to be more sophisticated about dispersing cooling."

Mark Chaykin underscores Comfort Systems (ticker FIX) as a noteworthy play in the AI infrastructure build-out. The company, traditionally in air conditioning, is leveraging AI technology for improved cooling dispersion. The commentary also highlights its strong dividend history and robust fundamentals, making it an attractive stock for long-term exposure to AI-related construction and engineering trends.

Technical Spike in Oracle Triggers Profit-Taking Call

-0.21%current return

"Oracle shares are up 40% in one day, intraday right now. And the power gauge gave what we call a relative strength buy signal on Oracle two days ago. ... in our trading-oriented newsletter we’re recommending that people take some profits because the spike has dragged along a lot of tech stocks."

The hosts highlight that Oracle (assumed ticker ORCL) recently experienced a dramatic intraday spike and, despite a relative strength buy signal from the power gauge two days earlier, technicals now suggest it may be time to take profits. This trade call is aimed at short-term traders looking to lock in gains.

AI Disruption to Call Centers and BPO Companies

+15.42%current return

"I would not want to be long any call center, business process outsourcing companies. Teleperformance is a big one in France, and Concentric in the United States is also likely to suffer as AI automates call centers."

Edwin Dorsey highlights the significant threat of AI to the call center and business process outsourcing sectors. As AI begins to automate customer service functions, companies like Teleperformance and Concentric are expected to experience declining profitability, making them unattractive long-term investments.

Avoid Natural Diamonds Amid Lab-Grown Disruption

-2.32%current return

"Don't buy natural diamonds. They're going to lose all their value."

Edwin Dorsey warns investors against purchasing natural diamonds as the market is increasingly shifting towards lab-grown alternatives. The disruptive effects of lab-grown diamonds are set to push down prices and margins for traditional retailers like Signet, undermining the long-term value of natural diamonds.

Buy UPS for Value/Durable Shipping Exposure

+2.58%current return

"I look at a name like UPS right now, which trades at 12 times earnings, pays a dividend. It's a company that I am certain is going to be around in 20 years. Shipping is not going away. UPS and FedEx basically have a duopoly right now. So I would much prefer to look at a name like that than to speculate at 50 times sales on NVIDIA or whatever."

The speaker explicitly favors buying UPS due to its low valuation (12x earnings) and dividends, arguing that its durable shipping business provides long‐term value and stability relative to overvalued tech names. This acts as a defensive, long-term portfolio holding in a sector with structural demand.

Buy Builders First Source (Ticker BLDR) on Insider Confidence

-9.74%current return

"The chairman, Paul Levy, made an open market purchase, writing a check for 55 million dollars at 111 a share, buying in when the stock was down from over 200."

Joe Boscovich presents an actionable trade idea for Builders First Source (ticker BLDR). With chairman Paul Levy’s significant insider purchase at $111 per share, contrasted to previous levels above $200, and a robust free cash flow yield near 9%, the company is positioned as a contrarian opportunity in the building supplies sector.

Devon Energy as a Value Opportunity in the Energy Sector

-8.67%current return

"Im happy to see among the top names on my Bloomberg screen that Devon Energy is performing well. I recommend it and hold it as one of my favorite positions because it is a superbly well-run energy company, and the oil price right now is as cheap as it has been in the last 25 years, comparable only to 2000 and 2020."

Devon Energy (ticker: DVN) is highlighted as a strong, well-managed energy company. The actionable part of the thesis is derived from the fact that oil prices are at 25-year lows, suggesting a reversal opportunity in the energy sector. This creates a buy signal on DVN with a value orientation in a historically undersold segment.

Bath & Body Works Buyback as an Undervaluation Signal

-7.60%current return

"I like Bath and Body Works because... they have a $5 billion market cap, generate about $750 million in free cash flow, and are executing a $500 million buyback right now, which is roughly 10% of their outstanding shares. Management is clearly signaling that they view the stock as undervalued."

The recommendation for Bath & Body Works (ticker: BBWI) is based on strong free cash flow and an aggressive buyback program. The quantitative details of a $500 million buyback on a $5 billion market cap with $750 million free cash flow support the thesis that the stock is trading at an attractive valuation. This creates a buy signal with a contrarian value angle and limited downside due to management support.