PROSF - Prosus N.V.: Exceptionally Valued With High Return Prospects Rate Buy
2024-06-18 02:34:03 ET
Summary
- The consumer discretionary sector has low projected growth compared to its current S&P 500 weighting.
- Prosus N.V. presents with a strong retail market outlook and high returns on capital employed to create economic value for shareholders.
- Based on the facts pattern, PROSY appears undervalued where it trades today.
Investment Summary
We are nearing the midway point of 2024. At this point, my estimation is the consumer discretionary sector has some of the least attractive market characteristics when comparing projected growth versus current sector weighting of the S&P 500 Index (Figure 1, see 4th from right). The composite below compares the current weighting of each S&P 500 index sector versus its projected growth rates over the coming 12 months.
There are two lines of thinking based on this research: 1) search for names in sectors towards the left of the chart [materials, utilities, etc.] or 2) look for attractive plays towards the right of the chart [e.g. consumer discretionary], that are set apart from peers by their economic characteristics....
Prosus N.V.: Exceptionally Valued With High Return Prospects, Rate Buy