In an episode of CNBC’s “Power Lunch,” Scott Nations, the president of Nations Indexes, shared his insights on three stocks: Chubb, Warner Brothers Discovery, and Bumble.
Nations believes that Chubb is a great company to invest in despite disappointing Q4 earnings.
He mentioned that the company’s forward PE is just barely 10 and a half, making it a great buy below the industry average PE.
Meanwhile, Nations considers Warner Brothers Discovery a riskier buy, with the company expected to lose 47 cents this year.
However, the bullish thesis is that they will make it up on Synergy, de-risking, and content, particularly with their new streaming service.
Despite execution risks, there is lots of potential upside.
Lastly, Nations sees Bumble as a hold for him, as the company needs to continue investing a ton of money in the business.
However, he acknowledges that the fact that they’re profitable is impressive, and their unique hook of having women make the first move is intriguing.
Overall, it’s a risky buy, and Nations suggests that those who like that point of differentiation could consider buying the stock.