Which stocks have captured the Motley Fool Money team's interest? The list may surprise you as it contains some names you'll recognize and one you may be less familiar with.
In this clip from the Motley Fool Money radio show, Matt Argersinger, Jason Moser, and Simon Erickson share the stocks on their radar for the week -- TripAdvisor (NASDAQ:TRIP), Wayfair (NYSE:W), and Verisk Analytics (NASDAQ:VRSK), respectively -- and then respond to a question from our man behind the glass, Steve Broido, about their picks. Listen in to find out what's got the hosts so excited about these three companies, and which one gets the stamp of Steve's approval.
A transcript follows the video.
This podcast was recorded on June 24, 2016.
Chris Hill: Time to get to the stocks on our radar. We'll bring in our man, Steve Broido, on the other side of the glass, to hit you with a question. Matt Argersinger, you're up first.
Matt Argersinger: I'm going with TripAdvisor, TRIP. It's a company we own a small piece of in Million Dollar Portfolio. I noticed that travel stocks are just getting crushed after Brexit, but look, it's not as if the U.K. leaving the EU is going to prevent people from traveling to Europe or getting visas to travel. I just think that's a little unfair. The closer that TripAdvisor gets to $60 a share, the more we like it in MDP.
Hill: Steve Broido, question about TripAdvisor?
Steve Broido: What does TripAdvisor look like 25 years from now?
Jason Moser: Wow!
Argersinger: They are the only place -- the only place! -- that people go for all their trip and hotel needs. I have no idea, Steve, but I think it's going to be a massively bigger company by then.
Hill: Jason Moser, what are you looking at?
Moser: I'm trying to figure out what I'm going to look like in 25 years. Listeners probably feel like I maybe took something away from them with Bed Bath & Beyond, so I'm going to give them something here with Wayfair. Wayfair is the reason why Bed Bath & Beyond is facing so much trouble. Their ticker is W. Again, Wayfair is the online retailer for home furnishings. We've talked about it before, I like the business model, they don't carry a lot of inventory. Very much a logistics and customer service company focused on building that same type of business that Amazon is building, investing more in the last mile to control that service experience themselves.
A big opportunity in the U.S. with around 67 million households. They're expanding internationally, particularly Western Europe, which really more or less doubles that market opportunity. And in August, I think this is actually kind of encouraging, they're starting up a wedding registry, which, if you are like me, Chris, and you remember those days, that's pretty cool, you go in there and tell people to buy you stuff, and they buy it. That could be a big money maker for Wayfair down the line. So let's take a look at it.
Hill: Steve, question about Wayfair?
Broido: How did Wayfair sell something that's almost impossible to sell online, and do it well? Furniture is the worst possible thing you can sell, except maybe farm equipment.
Moser: I think that's interesting, Steve, because I think most people look at Wayfair is just furniture. But it's really home furnishings. Only about 25% of the sales are those bulk furniture items. A lot of it boils down to towels, dishes, comforters, blankets, yadda, yadda, yadda. It's more than just furniture. It's furniture and beyond.
Simon Erickson: I was just going to say, that's the & beyond!
Hill: Simon Erickson, what are you looking at?
Erickson: Chris, I'm going with Verisk Analytics, VRSK. First of all, thanks to Emily Flippen, she's been interning with MDP this summer, did some great work on this pick. Thank you, Emily, for that! Verisk is a data analytics provider that's very good at predicting things. Initially, this business was helpful for insurance, who are making actuarial models to predict losses and risks. But there's a lot more things being predicted these days, including fraud detection for e-commerce, safety operations for the energy industry, and even healthcare in predicting upcoming conditions. So I think there's a really good future for Verisk coming up.
Broido: Can they predict the next president of the United States?
Erickson: I'm going to have to ask them about that one, Steve. I cannot answer that question today.
Moser: That would be huge.
Hill: Steve, you got a stock you want to add to your watch list?
Broido: I got a catalog from Wayfair recently, and it piqued my interest.
Moser: Yay, now!
Chris Hill owns shares of AMZN. Jason Moser owns shares of TRIP. Matthew Argersinger owns shares of AMZN. Simon Erickson owns shares of AMZN. Simon Erickson has the following options: short January 2017 $62.5 puts on TRIP. Steve Broido owns shares of AMZN. The Motley Fool owns shares of and recommends AMZN and TRIP. The Motley Fool owns shares of VRSK. The Motley Fool recommends BBBY and W.
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