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Altria stock has been soaring lately due to positive catalysts such as solid Q4 results and a major share buyback plan. That being said, there are a few major reasons why we remain unimpressed by the MO investment thesis. We share three high-yielding stocks with much better prospects than MO stock right now.
Brookfield Corporation's listed partnerships have declined in value the last few years, but there are other positive factors to consider. The company has an impressive long-term track record, outperforming the S&P 500 and treasuries. Brookfield's asset management business and insurance business are performing well, contributing to overall value.
Brookfield Corporation (BN) Q4 2023 Earnings Call Transcript
Brookfield stock appeals to both value and growth investors due to its low multiples and high revenue growth. Rising interest rates pose a significant risk to Brookfield, as it has a large amount of debt, which incurs interest expenses. S&P Global has put Brookfield Property Partners under credit review, and threatened to downgrade its debt to 'junk.'
BROOKFIELD, NEWS, Oct. 16, 2023 (GLOBE NEWSWIRE) -- Brookfield Corporation (TSX: BN, NYSE: BN) will host its third quarter 2023 conference call and webcast on Thursday, November 9, 2023 at 10:00am (ET).
Brookfield stock has historically delivered strong returns, with a 3,000% gain since 2000. The perceived complexity of Brookfield's structure is sometimes overstated. The company looks confusing at first glance, but some of the complexity disappears when you read up on it further. BN's hard-to-follow accounting comes from GAAP accounting requirements, not management's own choices.
Formerly focused on hydroelectric, Brookfield Renewable's strategic shift to wind and solar has massively increased its scale. Despite this rapid growth, Brookfield Renewable is likely to continue growing for many years to come.
Brookfield Corporation trades at a 50% NAV discount, even after a few careful adjustments. The following article offers investors a back-of-the-envelope framework to value BN on an ongoing basis themselves by stripping away some aggressive assumptions of Brookfield's management. A combination of modest return assumptions from underlying NAV returns, share buyback accretion and valuation rerating allows for an 18% CAGR.
Brookfield Corporation is undervalued according to my thesis. The valuation considerations for Brookfield include figures for interest in BAM, target carried interest, and the value of Brookfield Property Group. I believe the stock is undervalued and provide a valuation range of $49.50 to $74.18.
Brookfield Corporation stock trades at a significant discount relative to the sum of its individual holdings. At the same time, I see potential catalysts that could help the stock close the gap. I present an updated thesis for what is my largest position.