Vietnamese EV Maker Is Worth More Than GM And Ford Combined

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, Vietnamese EV Maker Is Worth More Than GM And Ford Combined Ever heard of Vinfast? It is a new electric vehicle company based in Vietnam, and you wouldn’t believe its current market value. In fact, the company is worth more than General Motors and Ford Motor combined – thanks to its 280% surge from an Aug. 15 debut through SPAC. The company posted a $598 million loss in the first quarter and sold about 7,400 vehicles in 2022. There are just 1.3 million shares available for trading, so its low-float status will likely lead to volatile trading ahead. (Source: Bloomberg) S&P Global’s downgrades: Several banking stocks fell after S&P Global cut credit ratings and revised its outlook for some banks. Why? “Tough” operating conditions. KeyCorp and Comerica were among the worst performers with about 4% drop each. Banks are back in the spotlight, as any further rate hike could put extra pressure on their profits. A tough day for retailers: Wall Street punished Dick’s Sporting Goods with a 24% plunge after issuing downbeat guidance for the year. Its EPS came in at $2.82 versus the estimate of $3.81. The retailer blamed the increase in store theft. Its revenue did much better with $3.22 billion versus the $3.24 billion expected. Macy’s also fell by 13% due to a gloomy outlook, with comparable store sales declining between 6% and 7.5% for the year. However, Lowe’s withstand the economic slowdown for now. The home improvement retailer beat earnings expectations and kept its full-year guidance, leading the stock to rise by 4%.  Top Insurance Stock to Own Right Now (It’s Not Buffett’s) Today’s Pick: Arch Capital Group Ltd. ([ACGL]() What’s the top benefit of owning a top insurance stock? The best insurance companies offer a double-dip of revenue streams: - They earn premiums for insurance that they underwrite, or collect premiums for policies they acquire in the case of reinsurance. - Premiums become a “float” where an insurance company can invest to earn income over the lifetime of a contract. As long as their underwriting practices avoid excess risk, these two income streams make insurance one of the best American businesses. But of course, it’s all about managing risk. If you take on high-risk contracts, you’re going to go broke paying for all these accidents. In the case of Arch Capital, the company managed risk well by reducing volatility while maintaining industry-leading returns: (Source: Arch Capital) The result? A book of business that grew all but two years from 2001 to today! Over that time period, the book value of the company’s insurance contracts and their assets has averaged 14.5% annual growth. (Source: Arch Capital) And Arch Capital is priced wonderfully because their price to book is solid at 2.02. Let me put this differently. At its closing price yesterday -- minus its 18% debt-to-capital – about half of the share price goes toward just the book value of Arch Capital’s assets. That’s before you even factor in future earnings. Beyond book value, Arch Capital grew its revenue very, very steadily since 2012, and Wall Street expects revenue growth at 38% this year and 11.5% next year. That’s a good value. Right now, Arch Capital’s P/E trailing twelve months checks in at a bargain of 13. (Source: MacroTrends) Reinsurance is driving sales growth. The company’s insurance net written premiums have accelerated the past three years. But reinsurance NWP has been on a tear since 2017. Reinsurance has grown more than 17% per year since 2018, including 53% in 2020: (Source: Arch Capital Presentation) But are they taking on more risk? Arch Capital’s track record says “no”. Assuming the company continues using the same practices that it had used for the past two decades, it’ll continue to outperform the industry. - Here’s why. Arch Capital has produced higher returns than its peers while still maintaining low volatility. Just look at how its returns and volatility compares to peers like Progressive since 2002: (Source: Arch Capital) As an added bonus, the current inflationary environment means Arch Capital can raise their prices: - “I think there's a recognition that the prices need to go up,” said CEO Francois Morin on a recent earnings call. - He added, “I think there's going to be quite a bit more runway to this pricing improvement.” We don’t know how long inflation will last, but Arch holds the pricing power that will keep up with it. That’s a key characteristic if we end up going into stagflation (low growth, high inflation). Bottom line: Arch Capital looks like a steal at a 14 forward P/E when it’s growing as quickly as they are, especially when its insurance and reinsurance divisions are both growing quickly. So, this stock offers you timeless protection against inflation and volatile markets. With its low P/E, you can comfortably expect an annual double-digit percentage return from this stock.   [CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS](     © All Rights Reserved, Trade Alliance If you no longer want to receive these messages, you may [click here]( to unsubscribe.