Behind the video
5 Overlooked Stocks to Buy Now
Overall Thesis
The host highlights five growth companies he believes the market is overlooking: Toast, Oscar Health, On Holding, Intuit, and Zeta Global, each trading at what he considers a reasonable valuation relative to its growth rate. He already owns On Holding and Zeta Global in his portfolio and is adding to Zeta, while Toast, Oscar, and Intuit remain on his watch list as potential future buys.
Narratives
Oscar Health is a digital-first ACA insurer trading at just 20x forward earnings despite over 30% compound revenue growth, benefiting from the shift toward ICHRA-based individual insurance purchasing. The host views its long-term growth trends very favorably even though he has not yet bought shares.
Key Arguments
- Forward P/E of just 20 despite the stock nearly doubling since late March
- 31.4% compound annual revenue growth with gross and operating profit improving toward breakeven
- ICHRA tailwind resembles the pension-to-401(k) shift, moving employer health spending to individual choice, which favors Oscar's model
Risks acknowledged
- Company is not yet operating-profit positive on a full basis
Predictions (1)
Toast trades at roughly half the market's typical multiple despite strong revenue growth and improving operating leverage as it expands from payment processing into higher-margin subscription software. The host expects the current cheap valuation to disappear once the restaurant industry recovers.
Key Arguments
- Enterprise value of $12.8B vs. $14.6B market cap with only 16.6x forward earnings
- Revenue growing nearly 20% compound annually with swing from an operating loss to a $359M operating profit
- Shift toward higher-margin subscription products (payroll, scheduling, CRM, marketing) alongside payment processing
- Network-effect-like operating system dynamics as more restaurant staff become familiar with the platform
Risks acknowledged
- Revenue growth is slowing due to a larger base and a currently struggling restaurant industry with fewer new restaurant openings
Predictions (1)
ONONOn Holding AGOn Holding is a current Asymmetric Portfolio holding growing revenue over 20% annually with expanding gross margins driven by pricing power, trading at a discount to slower-growing peers like Nike. The host considers it vastly overlooked and a huge opportunity today.
Key Arguments
- Gross margins expanded from 53.6% to 63.9% due to pricing power even amid tariffs
- Guiding for over 23% constant-currency growth in 2026, with management typically beating guidance
- Enterprise value to sales of just 3.1 vs. 6+ for slower-growing Nike
- $403M in free cash flow over the past 12 months
Risks acknowledged
- Reported USD sales growth looks weaker than reality due to a weaker dollar against the Swiss franc
- Company is still prioritizing growth over profitability optimization
Predictions (1)
ZETAZeta Global HoldingsZeta Global is an owned Asymmetric Portfolio position growing revenue around 25% annually (accelerating to 50% in the most recent quarter) via an AI-powered marketing and business-intelligence platform. The host is actively adding to his position and sees a path to a much larger company over the next decade.
Key Arguments
- Revenue growth accelerated to 50% in the most recent quarter versus a 25% three/five-year CAGR
- Forward P/E of just 19 and EV/sales of 2.5 despite accelerating growth and operating leverage
- Expansion opportunities from moving down-market and into AI-driven business intelligence (Athena platform)
Risks acknowledged
- Thesis depends on sustaining the current elevated growth momentum
Intuit shares have fallen sharply on fears that AI will disintermediate tax and accounting software, but the host believes the underlying business (15% revenue growth, improving operating profit) remains intact and now trades at a much more reasonable 16x forward earnings, creating a buying opportunity.
Key Arguments
- 15% revenue growth over the past year with operating profit compounding 17% annually since 2017
- Stock down 55% YTD and 63% over the past year has compressed the multiple to 16-17x forward earnings/cash flow
- Host believes AI will augment rather than replace trusted platforms like QuickBooks for taxes and accounting
Risks acknowledged
- Market is pricing in a real disruption risk from AI tools potentially replacing tax/accounting software
- Host does not yet own the stock
Predictions (1)
Hedges & Caveats
- Toast, Oscar Health, and Intuit are not yet owned positions, only watch-list candidates
- Toast's growth depends on a restaurant industry recovery that has not yet occurred
- On Holding's reported growth is distorted by currency translation (Swiss francs vs. weaker US dollar)
- Intuit faces an open debate about AI disruption to its tax/accounting software business
- Zeta's long-term valuation thesis depends on sustaining its current growth momentum