Why Adobe Could Be One of the Cheapest Quality Stocks Today

During their recent episode of the Value Options Letter and Acquirers Podcast, Travis and Carlisle discussed Why Adobe Could Be One of the Cheapest Quality Stocks Today. Here’s an excerpt from the episode:

I mean, Adobe, for example, Toby. I mean, on some estimates, it’s shooting at nine times forward earnings, right?

That’s super cheap for a business of that high of quality as far as margins and free cash flows and that sort of thing. So we’ve been able to put trades on. And so you get two things.

You get two pillars of protection in this case. You get one is that they’re trading at the cheapest levels that they’ve traded at sometimes in history on a fundamental basis. And then on a second note, because the stocks have caved quite a bit from over the last year on fears of AI, the volatility in the options has been really high, Toby.

So we’ve been able to capture really attractive premiums, often in the 20 or 30% range on an annualised basis. And so, yes, I mean, with some of those names rallying strongly, it’s been very beneficial for subscribers.