Plus: 🤖 SAP’s AI transition may already be priced in
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Hey Investor, This week’s picks cover: - ☁️ Occidental’s 10 year vision to become an energy powerhouse.
- 📈 Why Argan’s success will come from its tailwinds and management team.
- 🤔 Why SAP’s price today may not be the best entry point.
|
|
|
Occidental Petroleum is set to achieve a 16% profit margin improvement |
Permian Basin efficiency and CrownRock acquisition support steady upstream cash flows, while CCS investments like STRATOS could diversify revenue and lift long-term multiples. Additionally, debt reduction and early CCS traction may drive higher shareholder returns and re-rating. | |
|
| | | Revenue growth for 5 years |
|
|
💡 Why we like it: It’s a long-term thesis on a legacy energy company evolving into a dual-engine powerhouse. The commentary of Permian strength, improving financials, and the bold Carbon capture and storage strategy provides great context. The 3, 5, and 10 year outlooks help visualise how the transition could unfold. |
|
| Argan's Revenue Set to Soar with a 13.31% Growth in the Coming Decade |
The record $1.9B backlog drives strong revenue visibility and future growth thanks to demand from AI, EVs, and reshoring fuelling infrastructure project wins. Rising material and labor costs may pressure margins on fixed-price contracts though. | |
|
| | | Revenue growth for 5 years |
| |
💡 Why we like it: The author balances optimism with real risk flags (input costs, fixed-price contract pressure) while highlighting the pristine balance sheet and management excellence. It’s a solid commentary on a mid-cap growth story built on execution, backlog, earnings growth, margin expansion tied to secular megatrends like AI data centers and energy infrastructure. |
|
|
EU#1 - From German Startup to EU’s Biggest Company |
AI integration and cloud transition position SAP for long-term enterprise dominance. It’s strong economic moat from ERP depth offsets CRM competition from Salesforce. Efficiency gains and margin recovery expected, but valuation limits near-term upside. |
| |
| | | Revenue growth for 5 years |
|
|
💡 Why we like it: It’s a long-view breakdown of SAP that blends rich historical context with forward-looking insight. The author’s layered timeline makes the evolution toward AI and cloud easy to follow, while the valuation math grounds the story in real expectations. |
|
|
What's next? 1. 🔔 Know when to act: Set the narrative valuations as your own fair value to know when to buy, hold or sell the stock.
2. 🤔 Get answers: Ask the author any questions in the comments section. Feel free to like as well to support their work.
3. ✨ Discover more Narratives: There are hundreds of other insightful stock narratives on our Community page.
4. ✍️ Build an audience: Have your narrative seen by millions of investors, simply meet our Featuring criteria to go into the running! |
|
|
| This email is from Simply Wall Street Pty Ltd
Level 5, 320 Pitt St Sydney 2000, NSW, Australia. Simply Wall St has no position in the company(s) mentioned. These narratives are general in nature and explore scenarios and estimates created by the authors. These narrative do not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company’s future performance and are exploratory in the ideas they cover. The fair value estimate’s are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author’s analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this email/website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us. Privacy Policy Terms and Conditions
Don’t want to hear about Weekly Pick emails? Click here to stop receiving it.
Want to stop receiving emails or want to check which email you are subscribed on? Click here to manage your email subscriptions. | | |
|
|
|
