Barron’s mentions over the weekend:
Carvana’s (NYSE:CVNA) tower of problems is highlighted in the cover story. The auto retailer is in the spotlight, with some customers complaining about the registration and titling process. In Carvana’s home state, the Arizona Department of Transportation is noted to have received more than 80 complaints about the company over a four-year period.
The breakdown on Starbucks (NASDAQ:SBUX) in the issue was more positive, with the China business expected to finally turn around. Valuation makes sense to some analysts, with SBUX trading at just over 22X 12-month forward earnings vs. the five-year average of 27.3X. Of note, closing that gap to 25X 2024 earnings would put the stock at $98, up about 30% from the current level. Finally, the question of which are the cheapest stocks for investors to consider is tackled.
Home builders and steelmakers dominate the list of value plays, led by D.R Horton (DHI), Lennar (LEN), Toll Brothers (TOL), Cleveland-Cliffs (CLF), Nucor (NUE), Stelco Holdings (OTCPK:STZHF), Steel Dynamics (NASDAQ:STLD) and U.S. Steel (NYSE:X).