The 3 Stocks on the MFM Team's Radar This Week
In this segment from the Motley Fool Money podcast, host Chris Hill asks senior Motley Fool analysts Jason Moser, Matt Argersinger, and Ron Gross to give us the lowdown on some companies that caught their attention recently. Their picks this week: leading data center operator Equinix (NASDAQ: EQIX), distance medicine leader Teledoc (NYSE: TDOC), and South America's leading online travel agency, Despegar (NYSE: DESP).
A full transcript follows the video.
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This video was recorded on Aug. 3, 2018.
Chris Hill: Let's get to the stocks on our radar. Our man behind the glass, Steve Broido, is going to hit you with a question. Ron Gross, you're up first. What are you looking at this week?
Ron Gross: I have Equinix, EQIX. It's a real estate investment trust that's the largest operator of data centers in the world. Strong competitive advantage because of that installed base. Obviously capitalizing on the growth in data consumption and cloud outsourcing. Strong management team. 61 consecutive quarters of revenue growth. Again, it's a real estate investment trust, so you have a nice dividend that I think will grow over time.
Hill: 61 consecutive quarters?
Gross: You got it!
Hill: [laughs] That's a nice little streak there.
Gross: I probably just jinxed it.
Hill: Steve Broido, question about Equinix?
Steve Broido: Where is real estate going in the next ten years? We look like we have prices that are very high, homes are very expensive. Commercial real estate, going up or down?
Gross: I think it's an interest rate play here. If I had to guess, I would say there'll be some tough times, but the trend over our lifetime, for the next 20, 50, 100 years, will be up. But, there will be some blips as we get some interest rate hurt on the way.
Hill: Jason Moser, what are you looking at this week?
Jason Moser: I feel like I'd be letting Mac down if I didn't bring up Teladoc, so I'm going to go ahead and bring up Teladoc, actually Teladoc Health now, ticker TDOC. Teladoc released earnings this week and they chalked up another very strong, if not predictable, quarter. One of the nice things about the business is, when you have a membership model like that, it can be fairly predictable.
They are adopting a new corporate brand, as I mentioned, Teladoc Health. It's a subtle difference, but it speaks to their ultimate strategy, the goal of being a comprehensive provider in the telehealth space. It's going to utilize the acquisitions they've made recently like Best Doctors and Advanced Medical, trying to become more than just that one app on your phone that you use if you have a sore throat or something.
Hill: Steve, question about Teladoc Health?
Broido: What's the first field of medicine that Teladoc will displace entirely?
Moser: The first field of medicine. That's a good question. We always hear them talk about flu season and how it's having such a great impact on keeping a lot of sick people out of emergency rooms. If we can keep all of the flu sufferers out of hospitals and send them prescriptions and get them cured that way -- let's disrupt the flu!
Gross: I'm in!
Moser: Why not? They're disrupting the flu!
Hill: Matt Argersinger, what are you looking at this week?
Matt Argersinger: I'm looking at despegar.com, ticker DESP --
Gross: You made that up.
Argersinger: No! I have to give credit to one of our young analysts at The Fool, Emily Flippen. She came up with this idea. It's the leading online travel agency in Latin America. It came public last year. It's down about 40% from its IPO. It's had some changes in the executive ranks, the CFO recently left. But, revenue is growing 20% and Expedia owns a 13% stake with an option to take a majority stake in the company. So, I'm starting to get interested in this one.
Hill: Despegar.com, Steve.
Broido: What are some hot travel spots in Latin America, if you live in Latin America?
Argersinger: If you live in Latin America, oh my gosh.
Broido: Are you making a trip to the U.S.?
Argersinger: No, I think you're staying in the region. There are some beautiful beaches in Mexico and Brazil, and some great hiking you can do in Argentina. I have no idea what I'm talking about.
Gross: Cabo, baby!
Argersinger: Yeah, Cabo. Go to Cabo!
Hill: Three stocks. Steve, do you have one you want to add to your watchlist?
Broido: I recently bought Teladoc, so I therefore will be watching Teladoc.
Moser: Hey, now!
Chris Hill has no position in any of the stocks mentioned. Jason Moser owns shares of Teladoc. Matthew Argersinger owns shares of Teladoc. Ron Gross has no position in any of the stocks mentioned. Steve Broido owns shares of Teladoc. The Motley Fool recommends Equinix and Teladoc. The Motley Fool has a disclosure policy.
