1 Underrated Company Worth Investors' Time

1 Underrated Company Worth Investors’ Time

Plus a former Nintendo executive talks about the gaming industry.

In this podcast, Motley Fool analyst Asit Sharma discusses: The key Sonos metric to watch.

Why taking the long view in stock investing is so important.

Motley Fool contributors Jon Quast and Ryan Henderson talk with Reggie Fils-Aime, former president of Nintendo ( NTDOY 1.20%) of America, about finding great business leaders and the future of consolidation in gaming.

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center . To get started investing, check out our quick-start guide to investing in stocks . A full transcript follows the video. Video Player is loading. Play Video



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Captions captions settings, opens captions settings dialog captions off, selected Audio TrackFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteTransparencyOpaqueBackgroundColorBlackTransparencyOpaqueWindowColorBlackTransparencyTransparentFont Size100%Text Edge StyleNoneFont FamilyProportional Sans-SerifReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button. Should you invest $1,000 in Sonos right now? Before you consider Sonos, you’ll want to hear this.Our award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now… and Sonos wasn’t one of them.The online investing service they’ve run for two decades, Motley Fool Stock Advisor , has beaten the stock market by 3X.* And right now, they think there are 10 stocks that are better buys. *Stock Advisor returns as of April 27, 2022 This video was recorded on May 12, 2022. Chris Hill: [MUSIC] We’ve got an inside look at the gaming industry and why more consolidation is on the way. Motley Fool Money starts now. I’m Chris Hill. Joining me today, Motley Fool Senior Analyst, Asit Sharma. Thanks for being here. Asit Sharma: Chris, thank you for having me. Chris Hill: Sonos like most companies, is talking about the impact of supply chain problems, but Sonos’, second-quarter revenue was higher-than-expected. The demand for high-end audio products seemingly is there. This morning you and I were going back and forth. You said this is a company that you think is underrated. How so? Asit Sharma: I think that investors have been trained to look for companies that are really really capital-light over the last few years. If you can avoid investing in a manufacturer, do it. Find the equivalent software-as-a-service model, invest in that. It’s going to have higher margins. It’s a company you will be able to ride for long-term growth. That always great in a lower interest rate environment but as interest rates have ticked up, investors are starting to second guess some of the thesis around only owning those fast growers. Just like in real life, if you go to a basketball game, a pro game or college basketball game, and the best player on the opposing team has a bad night. Everyone is chanting, overrated. [laughs] But there’s is no underrated chant. It’s not like the best player on your team, who is the role player and is having a great night. It’s not like everyone jumps up and starts shouting underrated. But sometimes I want to get out my seat, out of my chair for companies like Sonos and just chant underrated. Chris Hill: We’re seeing the stock move up today and have been saying this a lot lately, off of what was a 52-week low earlier in the week. Let me ask you the question I’ve asked to others. Do you look at movement like this as enough investors saying, OK we get it. Maybe it was overvalued before. Maybe it was overrated before but this is a business making things that some not insignificant number of people want. So we’re going to build this one up. Asit Sharma: I see that, I mean, this is a company that would’ve increased its top-line even more as you mentioned if not for constraints, the demand is there. They’re just trying to supply as much product as they can. They’ve run into supply issues in China as almost every other manufacturer has but it’s also a company that has a phenomenal brand. If you look at charts of home installers, professional equipment installers, favorite choice for audio equipment for new homes. It’s Sonos by a mile and that beats […]

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