Q: Hello,
VNP has pulled back from its high of $36. Results are expected on May 6th after the close. Given the solid fundamentals, the critical minerals theme, and the tailwinds from AI and defence, for an investor with a 3 to 5 year horizon, would you initiate a full position today ahead of results, or would you wait for post-earnings confirmation?
Thanks
VNP has pulled back from its high of $36. Results are expected on May 6th after the close. Given the solid fundamentals, the critical minerals theme, and the tailwinds from AI and defence, for an investor with a 3 to 5 year horizon, would you initiate a full position today ahead of results, or would you wait for post-earnings confirmation?
Thanks
5i Research Answer:
We continue to like VNP here, and it has a good track record of beating earnings estimates, but it trades at a premium valuation of 38X forward earnings. We think investors who do not have a position already can add some before earnings, and reassess after earnings if a larger position is warranted. In general, we prefer waiting until earnings results to assess if there are any surprises.