Adidas posts robust results but offers a more modest outlook than anticipated, creating a mixed picture for investors
Title: Still Holding Strong on adidas AG: Diving into Value Investing in Asia's Hidden Champions
Yo, folks! Here's the deal with adidas AG (OTCQX: ADDDF, OTCQX: ADDYY, ADS.GR). My hold rating for this bad boy remains unchanged, following my in-depth analysis of its 2Q24 financials and a thorough peer benchmarking exercise, as discussed in my July 18, 2024 write-up.
Now, if you're all about value investing in Asia-listed stocks, you'll want to check out Asia Value & Moat Stocks. This badass research service is perfect for value-seeking investors, aiming to snap up stocks with a substantial undervalued aspect, leaning toward deep-value balance sheet bargains and wide-moat stocks. Ready to dive in? Sign up right here!
So, what's the deal with this badass service? While I couldn't find an exact match for "Asia Value & Moat Stocks" in my research, I surfaced some killer insights into competing approaches and regional trends that align with such a strategy:
- Wide-Moat Focus: Prioritize companies with sustainable competitive advantages ("moats"). Check out Morningstar's undervalued Chinese picks (JD.com, Baidu, Tencent), and VanEck's Moat Index methodology that targets attractively priced moat companies across sectors.
- Value Metrics: Pair moat analysis with traditional value metrics (low P/E, P/B ratios). This approach is similar to GMO's $29bn quality strategy, which strike a balance between great companies and valuation discipline.
- Regional Tailwinds: Address APAC-specific dynamics, like the shift toward a client-centric culture in the wealth management sector, or tech opportunities that emerged during market volatility.
Now, let's snap into some strategic nuances from market trends:
- Tech Sector Opportunities: The recent focus on semiconductor and software firms suggests a focus on innovation-driven moats.
- Quality Valuation Balance: Avoid complex projections and favor straightforward assessments of hype versus fundamentals.
- ESG Integration: Conduct-related metrics seem to be gaining importance, hinted by the emphasis on a client-centric culture in wealth management.
Alright, so how does it stack up against existing models?
- GMO's Quality Strategy: Outperformed by avoiding hype-driven stocks and maintaining tech exposure during rebounds (2023-2024).
- VanEck's Moat Indexes: These methods target U.S. high-quality companies, but their valuation screens and sector rotation approach could apply to Asia-centric strategies.
For an Asia-specific service, expect a hybrid approach: moat durability + value pricing + regional growth sectors (tech, consumer, finance), tailored to local regulatory and cultural factors. Let's tear it up!
- In my hold rating for adidas AG, I did not change my position after analyzing its 2Q24 financials and conducting a benchmarking exercise, as discussed in my July 18, 2024 write-up, demonstrating a strong confidence in the stock.
- If you're interested in value investing in Asia-listed stocks, consider Asia Value & Moat Stocks, a research service tailored for value-seeking investors, aiming to identify undervalued stocks with strong competitive advantages and deep-value balance sheet bargains.
- To be successful with Asia Value & Moat Stocks, focus on companies with sustainable competitive advantages ("moats"), pair moat analysis with traditional value metrics (low P/E, P/B ratios), and consider regional dynamics, particularly the technology sector and shifts towards a client-centric culture in the wealth management sector.
- When evaluating the effectiveness of Asia Value & Moat Stocks, it outperforms GMO's Quality Strategy by avoiding hype-driven stocks and maintaining tech exposure during rebounds, while VanEck's Moat Indexes could potentially be adapted for Asia-centric strategies with their valuation screens and sector rotation approach.
