Transcription
It is well known by now that members of Congress continue to outperform the market. Whether that's in 2024 or 2023, the data is there to really highlight the outperformance by every single member. And that is why in today's episode, we want to take a look at some of their latest buys to understand if we too, as investors, can outperform the market to the massive degree that each one of these, as well as others, have been able to do.
So what we've done is we've taken a look at not just Nancy Pelosi but many others to see some of their latest movements in their portfolios, specifically looking at buys because we want to see what are perhaps the opportunities that maybe we are missing and see whether we really should be adding.
Now, this is something we may not be able to do moving forwards as there are talks about a potential ban for Congress members buying and selling shares as they seem to have insider information or some advantage to the general public that does make them able to massively outperform. However, we would say this may not be something that will come into fruition. We've seen it in 2022 where there was some traction actually about a stock ban on Congress members. And this was something that actually was looking like it was going to move forward. But Nancy Pelosi, maybe no surprises, was accused of delaying this bill, one that actually never made its way forward.
Now, we're seeing this kick up back again in 2025, where the act has actually been called the Pelosi Act to ban Congress members from trading stocks. And Senator Hol, who has really been pushing for this to take place, says that members of Congress should be fighting for the people they were elected to serve and not day trading at the expense of their constitutions. He's gone as far as to say it is time that we ban all members of Congress from trading and holding stock to really restore Americans' trust in their nation's legislative body and that this act, if it was to come into fruition, would ban lawmakers and their spouses as we have seen not just Nancy Pelosi but also her husband, as well as many other spouses from members of Congress who also have been making some very, very large gains in the market from holding, purchasing, or even selling individual stocks for the duration of their time when they are in office.
Now, the main reason why we do in fact put Nancy Pelosi into the spotlight is because her gains have been very strong. She seems to be timing the market and in fact making some very good purchases as well as selling at the right time. If we look at over the last 10 years, whilst the S&P is up 219%, her own portfolio has returned a significantly high amount at 734%. And that is why in today's episode, we are going to uncover 14 of the most bought stocks by these Congress members in the most recent period.
Now, we're going to talk about their valuation as well to give you our own perspective of whether we believe they're undervalued and worth considering for your own portfolio. The first one is the farmer giant Eli Lilly company, which has actually struggled over the last year, down 8%. Year-to-date, they're pretty much flat. So, they have underperformed the S&P, but longer-term shareholders would see a massive, massive gain against the S&P, up 814%. Whilst we also note the company trading near the 52-week range, a bit of a pullback from their all-time highs at just under the $1,000 mark. And both Wall Street and Seeking Alpha do believe Eli Lilly is a buy right now.
Now, we're going to look at a few valuation methods before we jump into our own process, but their forward P/E of 30.7 is below the 5-year rolling average of 37.7. This, in one way, is an undervaluation signal. However, when we couple it with dividend yield theory, which tells us a company is undervalued when the current yield sits above the 5-year average, this in itself would be an overvaluation signal, offering shareholders 8% when historically it sat at 1.2%. The other method here is taking a look at the blue tunnel, and this signals the expected fair price of the company. Great to see it increase over time. This is ultimately what you want to see. And the other thing that's great to note is the stock price has been decreasing. So think of it this way: The worth of the company is going up over time, but the price you can buy is going down. Definitely a great combo to have. And we can see the trading price sits below even the bottom end of the blue tunnel. This signals to us, given the disparity, an undervaluation signal. We can also see the growth of the company gets an A+, the best score that it can obtain. Revenue year-on-year increasing 36%, anticipated 28% moving forwards, well above the sector around the mid-single-digit point, and actually they're growing faster than they have done over the last 5 years around the 13% level. And on top of that, anticipated earnings per share growth 33% over the next 3 to 5 years, well above the sector at 10.4%, but also above their historicals at 21%. So growing revenue and projected EPS at a much faster rate.
We'll also quickly look at their earnings before jumping into our valuation where over the next four quarters they're anticipating growth each one at a bare minimum double-digit. However, they have a 50% historical track record, two out of four beats, the most recent one being a miss at 12 cents. And based on 2026 projected earnings per share, the company, on those numbers, is trading at a forward P/E of bang on 26.
Now, as we said, we're going to show you our own valuation for each one. And for Eli Lilly, we get to $691 derived from the DCF model. Now, we have the free cash flow year-on-year average growth very rapid at 44% over the last 10. Moving forwards we've gone for 35%, as you can see low, medium, and high; 30%, 35%, 40% respectively. Remember, numbers here are subjective. You can grab a copy of this model by clicking the pinned comment below. Running through your own numbers, whether it's for Eli Lilly or any others, but at 35% and incorporating the discount rate, we get the present value of future free cash flows; add together with the cash, subtract total debt, get to the equity value, divide by the shares outstanding: $691, indicating downside of 10%. So this highlights to us if you are buying the company now at a bare minimum you need to see more than 35% growth to the future free cash flow moving forwards, and in terms of transparency we will show you at the 40% rate: $958, upside of 25%; for those that believe we should be a lot more conservative at 30%: $491, indicating downside of 36%. What we typically like to do though on the channel is take through the medium rate which today sits at 35% and typically apply a margin of safety. But given the intrinsic price sits below the current value, we believe right now Eli Lilly, even though members of Congress are buying, we see it trading at a premium; it does look to be overvalued. We will, however, show you using a margin of safety of 10%, which we typically execute on if it meets our three golden criteria—wide mode, strong financial metrics, good forward-looking data—would be a buy at $622. $622. We'll also show you at 15%: a buy at $587; at 20%: $553; and at 25%: around $519. Conclusion remains: We see it trading at a premium. Wall Street, however, disagree. They see this at $1,000 in the next 12 months. That in turn translates to 31% upside. As always, give us your thoughts with these stocks as we do go along, whether you like members of Congress are buying or in fact you see them as a hold or sell.
Now, before we jump into the next stock, just to let you know, we have released our latest free weekly article. We draw one every single Monday morning to your inbox completely for free where we cover severely undervalued stocks as well as what's gone in the market over the last few days. So click below, you can sign up and read straight away where you'll also be able to grab a copy of severely undervalued stocks for the month of June, lots of information for each one, the upside that Wall Street themselves see over the next year. And on top of that, you can grab a recently released copy of 19 stocks that Wall Street themselves believe have the most upside in the S&P right now. So, click below, you can sign up and read straight away.
The next stock we're moving on to that they've been buying is the United Health Group. Now, this one battered down 40% over the last year. If you want to understand the reason for this drop and the year-to-date significant movement of 40%, do check out our in-depth dive. But we can see over the last 10 years, it still has, even with the drop, marginally outperformed the S&P, up 158%. It also trades near the 52-week low with a double buy from both Seeking Alpha as well as Wall Street. And we get a severe, severe undervaluation signal: forward P/E 3, well below the historical average of 20.2. And on top of that, unlike what we didn't see with the previous company, dividend yield theory also signaling undervaluation: yield of 2.92% above the historical average at 1.4%. And that's also confirmed when we take a look at this model. Although worth to see here, the intrinsic price has been decreasing, but still a massive disparity between the two points. Another severe undervaluation signal. Now, growth does get an F, but we do see revenue year-on-year and forward-looking around the 8% to 9% region, which is slightly above the sector median at the 6% to 7% level, but they're also growing a tad slower than their historicals around the 10% point. One thing that does drag the rating overall is the EPS projected 7% when the sector as well as their historicals sit higher at 10% and 13% respectively. Earnings not looking the greatest with only one expected growth into the next four quarters with a 75% track record. However, the most recent one was a 9-cent miss, trading on 2026 numbers at a forward P/E of 11.5. In terms of our intrinsic price, we get to $440, which is purely the average of the four models you see on screen. Given the current price at $333, we are seeing quite a significant margin of safety, although it will depend on what amount you are looking for: at 25%, a buy at $330; at 30%, around $308; not quite at 35% just yet, but you're getting at least a 30% up to $388. Wall Street, Members of Congress, all with the buy signal; they have their price target at $385, which in turn translates to 27%. Give us your thoughts, though. UNH, 30% margin of safety, 27% upside. Have you been buying or is this one that you aren't considering?
The next one they've been buying is Google, which is down 2% over the last year. Year-to-date, down 8%, still outperforming the S&P, up 534%. Now trading around the midpoint of the 52-week range with a double buy from Seeking Alpha and Wall Street. In fact, Wall Street 4.41, near the 4.5 to flip this into a strong buy. And we get that undervaluation signal: forward P/E 18.8; their 5-year average sits at 22.1. And again, we also notice disparity between the trading price and the lower end of the blue tunnel. But you could argue over the next few days or weeks, if the price continues to rise, we may see this transition from undervaluation to a reasonable signal. Growth comes in at a B-, where we see year-on-year revenue and forward-looking around the 12% to 13% when the sector sits significantly lower. In fact, the low single digit, but over the last 5 years, the company has been growing at a faster rate. And in terms of EPS, projected 15%, again similar to revenue, higher than what we see from the sector, but slightly below their own 5-year average. Earnings not looking too bad with three of the next four quarters growth, 100% historical track record, trading on 2026 numbers at a forward P/E of 17. Now, our intrinsic value gets to $200 where you can in fact see we've used a growth rate of 10% moving forwards. If we just highlight here, if you were to use 8%, given the price is pretty much in line, this means already baked into the numbers now is growth of 8% to the future free cash flows. So you need to believe it is higher to really consider this in undervalued territory. And we have gone for that 10% at the $200 mark which does still give an MOS as in fact we keep going nearly 15%, not quite there yet, but we see a 15% margin of safety at the $170, the $170 space with Wall Street themselves seeing upside of 16%, their target $210. Let us know: Alphabet, is this one you have been buying or in fact you were buying a few weeks ago when it was sitting near its 52-week low?
We then move into the semiconductor space with Advanced Micro Devices, down 30% over the last year. Year-to-date down 4%, but over the last 10 years up nearly 5,000%, massive, massive outperformance of the S&P. We notice it trading near the 52-week low. A double buy from both Seeking Alpha as well as Wall Street. Fairly strong ratings as well in the 4.2, 4.17 region. Now, they do get a D+ on the grading. As we can in fact see the sector does sit a lot lower; you are paying a 29% premium, but in relation to their 5-year average, they're actually trading at a discount of 28%. So, this would be one undervaluation signal. And this conclusion pretty much we do know no matter what valuation metric you look at, AMD trading at a premium to the sector, but at quite a large discount to their historicals. Growth looking strong as well at an A-, 22% year-on-year, 18% moving forwards, well above the sector in the mid-single digit. However, we do see, similar to Google, they are increasing their revenue at a slightly slower rate. In terms of EPS, that also applies: 26% moving forwards. Sector a lot lower at 14%, but their 5-year average higher at 33%. They are anticipating out of the next four quarters, three of them to be growth with a 100% track record at a bare minimum being in line, trading on December 2026 numbers at a forward P/E of 20.3. Now, our intrinsic price gets to $137. $137. As you can see, we've used a growth rate of 25%. But if you are someone that believes that is way too high, well at 20% intrinsically $98 would mean right now it sits in overvalued territory. If we take a look at the 30% level, $190, upside of 64%, but as we said, we do use the medium rate which today at 25% will give you a margin of safety as in fact we keep on going bang on 15% at the $116 mark. Wall Street themselves: $130. Whilst they do have a fairly healthy buy signal, upside does sit around the 12%. Let us know. Some people love it, some people prefer Nvidia, but that one does look like it has been on a very strong run in just the last few weeks.
We then move on to MercadoLibre, ticker symbol MELI. Now, this one is up 53% over the last year. Year-to-date, up 46%; over the last 10 years, similar to AMD, although less to the extent they've outperformed the S&P, up 1,628%. Up 1,628%, trading towards the upper end of the 52-week range with a double buy from Seeking Alpha and Wall Street. Very high ratings near the 4.5 for both of them to flip into the strong buy. Now, they do get a D- on the valuation grading. They're trading at a forward P/E around the 50 mark; the sector is sitting a lot lower, meaning you are paying a 201% premium. But we can see based on this data, their 5-year average was significantly higher. Regardless, no matter what metric you look at, it does trade at such a high premium to the overall sector. Growth looks very good at an A: year-on-year 38%, forward-looking 33%; the sector sitting in the low single digit. But over the last 5 years, like many companies today, revenue was growing at a much faster rate. EPS looking very impressive with 30% growth anticipated, well above the sector at 10%, and we can see over the last 5 years they were growing much higher at 47%. Earnings looking incredible over the next four quarters with double-digit anticipated to each one; 75% track record. The most recent earnings was a very sizable beat, and we do see trading on 2026 numbers at a forward P/E of 37. Now, intrinsic value gets to $2,853. And you can see we, we've used the lower growth rate of 4% to be a little bit more conservative. But if you do want to use the higher rate at 6% or 8%, you can see the upside does become a little bit more sizable. Nonetheless, even with this conservative estimate, you are still getting a margin of safety that sits not too far off the $2,426 level, meaning for me today a near 15% MOS. Wall Street themselves with their buy rating: $2,900 into 2026, upside of 17%. Again, let us know: buy, hold, or sell.
We then move on to Apple, which is up 5% over last year. Year-to-date, down 19%, one of the worst performing MAGA 7 bar Tesla over the last 10 years. Still outperformance though, up 541%, trading near the lower end of the 52-week range with just one buy rating, fairly weak as well from Wall Street. And we can see based on the forward P/E and in fact the dividend yield given they're not too dissimilar from the 5-year average. These are two reasonable valuation signals, and this is also what we get when we take a look at this model, pretty much sitting bang in the middle. Now growth does look very poor at a D, but no surprises as we haven't seen many growth catalysts from this company in the more recent period: year-on-year and forward-looking around the 4% to 5% level, which is below both the sector and their own 5-year average which have both in fact sat around the mid to upper single digit. And in terms of earnings per share, anticipated 10% to 11%, again below both the sector and their own historicals. However, earnings are expected to be growth over the next four quarters, but each one in the low single digit, and they've outperformed four out of four beats, trading on September 2026 numbers at a forward P/E of 26. And our intrinsic value of $200 moving forwards. As you can in fact see we've used a growth rate of 8%. The average has been 7%, but likewise we've got a medium and high similar to what we've done for Lilly. We wanted to be a bit more on the conservative side. $200, as you can note, isn't that far off the market price as of today. So we see this pretty much trading around its fair price, similar to what we saw earlier. All reasonable signals for those that did want to see a margin of safety: at 10%, buy at $180; at 20%, around $160; and at 25%, $150. So trading pretty much at fair price. Wall Street, however, even with their weak buy signals, see this at $230 over the next year, 13% upside. Let us know, maybe you disagree and you believe Apple will grow at a much faster rate and you have been buying this.
Then takes us on to Amgen, which is down 5% over the last year. Year-to-date, however, up 11%; over the last 10 years, it has underperformed slightly the S&P, up 86%, trading in the mid to low end of the 52-week range with a double buy rating, but both fairly weak from Seeking Alpha and Wall Street. And we see similar to Apple on both accounts of the forward valuation and the yield, not too dissimilar from the 5-year average. Another reasonable signal, something that is also confirmed when we take a look at this model, pretty much bang in the middle. Now, the growth grade does come to an F, although revenue year-on-year was fairly strong at 16%. Forward-looking, slightly lower at 8.5%, yet they are both above the sector median around the mid-single digit, as well as being above their own historicals. In terms of earnings per share, that is probably where the company gets let down at only 5% projected growth when the sector sits above 10% and their own 5-year average sitting a little bit above at 6.1%. Now they only anticipate two of the next four quarters to be growth, but they do have a 75% track record. The most recent quarter a fairly sizable beat, and we can see trading at a forward P/E of 13.5 on December 2026 numbers. Now our intrinsic value gets to $336. Remember, if you leave the average of these four models, which you can grab a copy of by clicking on the pinned comment below, running through your own numbers, whether it's for Amgen or any others, the margin of safety at 10% at $306; at 15%, $286. Not quite there yet. Then for this company, we see around 10% to 15% MOS. Wall Street, even with their weak buy rating, similar to Apple, see upside around 12%. They see this trading at $377, $377 into 2026.
The next company members of Congress have been buying is Lockheed Martin. We can see up 3% over the last year. Year-to-date pretty much flat. Over the last 10 years, it has slightly...
Outperformed the S&P up 152%, trading towards the 52-week low with a double buy from Seek Alpha and Wall Street. And we actually get a slight overvaluation signal as the Forward P does sit marginally above their 5-year average of 16.5. Yet the yield is pretty much dissimilar from their 5-year average at 2.7. And we get another reasonable signal here as we see it towards the mid to upper end of the blue tunnel. Although it is only a little bit away from being outside. So again, possible overvaluation. Growth doesn't look great at a D+ year-on-year and forward-looking around 3 to 4%, which is pretty much in line with what we can see for the sector as well as their own 5-year historical.
In terms of EPS though, looking good at around 13% growth, which is above both their sector median as well as significantly higher than the 5-year at 6%. But earnings do look pretty terrible over the next four quarters, each one expected to be a decrease. But over the last four, 100% track record, trading on 26 numbers at a forward P 16.1. Now, our valuation gets to $512, which will give you a margin of safety, but not that much, not even at 10%. That would be a buy at 461; you are pretty much looking around 5%, that is fairly minimal. Wall Street themselves, 521 over the next year, 8% upside. Do you agree? Maybe disagree, but this is one members of Congress have in fact been buying.
We then move on to one that we have talked about not that long ago: Merck and Co., down 40% over the last year. Year to date, down 21%; over the last 10, very, very minimal growth at 36%. Massive underperformance of the S&P, trading near their 52-week low with a double buy from Seek Alpha and Wall Street. And whilst we won't cover it today, we can see valuation, growth, and profitability all looking fairly strong in terms of the ratings. We also get a double severe, severe undervaluation signal. Forward P 8.7, well below the 5-year average; yield at 4.1, well above the 5-year 3. And this is also confirmed when we take a look at this model. Although the disparity has only been increasing from November last year, getting wider and wider, just making that undervaluation even more severe.
Now their growth does come in at an A year-on-year revenue and forward-looking four to 5%, slightly below the sector that does come around the 7% level, but also, as we can note, growing revenue slower than their 5-year. In terms of EPS projected growth, 11%, a little bit higher than the sector, but actually quite some way below their own 5-year 17. Over the next four quarters, three of them expected growth; we see a 100% historical track record, trading on December 26 numbers at a forward P of 8.1. Now, our intrinsic value gets to $111. Again, the average of those models that you see, but you are getting quite a nice margin of safety at 20%, abide $89 at 30%, pretty much where we see this now around the $78 mark. Wall Street, as we saw, buy rating $103 price target, upside of 30%, also a fairly attractive starting yield as well. So, maybe one to consider, but as always, let us know below.
We then move on to ServiceNow. Another one members of Congress have been adding; up 47% over the last year. Year to date, down around 3%; over the last 10, massive outperformance of the S&P, trading towards the upper end of the 52-week range. Just one buy rating from Wall Street, but 4.48, not far from 4.5 to flip this into a strong buy. And we can see the valuation grading of a D minus, highlighting their forward P of 62, well above the sector at 22, meaning you're paying a 175% premium. But against their own 5-year, they're actually trading at a 17% discount. Now, growth does look good at an A minus. Year-on-year revenue and forward-looking in the 20% region. Well above the sector at 6 and 7% respectively, but a little bit slower than what we have seen from them over the last 5 years. Earnings per share 30%, well above the sector at 13, only a little bit in fact below their historical at 33. And love to see, perhaps the first one we've noted today, green right across the board as well as double-digit growth anticipated over the next four quarters. Still high valuation, trading on 26 numbers at a forward P of 52. Now our intrinsic value gets to $1,100, $1,100, and we have used a growth rate of 20%. If you believe it should be lower than this company looks to be severely overvalued. If we use 25%, 1535, indicating upside of 48%. So at the 20% level, you aren't really getting much of a margin of safety. At 5% is pretty much where we see this. Now, Wall Street themselves, even with the near strong buy rating, $1,100, the same as our intrinsic price, that is minimal 6% upside. Members of Congress have been buying, though. Let us know below.
We then move on to Netflix, which is up 91% over the last year, up 39% year to date. And over the last 10 years, massive, massive outperformance, up 1,215%. Up 1,215%. Trading at the upper end of the 52-week range. A buy rating, but solely from Wall Street at 4.14. A valuation grade of an F, probably no surprises given their forward P sits at 48. Sector a lot lower at 13. You're paying a 265% premium. In fact, you're also paying a 13% premium to their own historicals. Conclusion again remains to be the same no matter what valuation metric you look at today. Growth though at an A minus, 15% year-on-year, forward-looking 14%; sector as a whole low single-digit, pretty much growing though in line with their own 5-year as we can note. In terms of EPS projected 22%, no surprises that it's above the sector 11, but it is actually quite some way below the 5-year 28.2. Another green ride across the board, including double-digit growth over the next four quarters, trading on 2026 numbers at a forward P of 40.1. And our intrinsic value of $1,032 is in fact derived using a growth rate of 20%. But no matter which one you select today, low, medium, and high, all of them are in fact highlighting here downside. So we believe this company is trading at a very large premium. If you want a 10% MOS, about 929; at 15, around 877; at 20, around 826; and at 25, 774. So the company is trading at a premium; Wall Street in fact really see downside of 1%; they see this into 2026 at $1,230. Let us know; maybe this is one you do have on your watch list.
We then move on to Elevance Health, which is down 27% over the last year. Year to date, it is up around 7%; over the last 10, marginally outperforming the S&P, sitting towards the lower end of the 52-week range with a double buy from Seeking Alpha and Wall Street. A near strong buy in fact from Wall Street themselves, and we do get that double severe undervaluation signal, similar to what we saw for UNH; for P 11, 5-year at 14; yield 1.74, historically 1.23, 23. And again we get that severe undervaluation signal as we do in fact notice disparity between the two points. Now their growth is a little bit lacking at a D minus year-on-year and forward around the 7% region, which in all honesty is pretty much in line with the sector, but this company has been growing at a faster rate over the last 5 years. EPS again does let them down; only 8.6, 6 projected growth when the sector sits higher at 10 as well as their 5-year at 12, and they anticipate three of the next four quarters to be growth, but they have a 50% track record. Most recent quarter was a beat, trading on 26 numbers at a forward P of 10. Now our intrinsic value gets to $497, which, similar to UNH, will be a fairly sizable MOS as we keep on going today. You're not getting 25% just yet; it's sitting somewhere around 20 to 25. Wall Street themselves see this at just under $500 over the next year. That is 29% upside. Definitely one to consider if you want to look at what is perhaps one of the most undervalued sectors in the market.
We then move on to ConocoPhillips, down 22% over the last year. Year to date, down 12%. Over the last 10, it is up marginally 37%. Remember though, this is if you had bought 10 years ago today. For example, if you bought the COVID lows around the $26 mark, you would be up fairly significantly, trading near the lower end of the 52-week range. Double buy from both Seek Alpha and Wall Street. However, based on the forward P, we do get a slight overvaluation signal, 14.8, 5-year 11.8. But on the yield, we get an undervaluation one. And when we look at this model, we can in fact see the opposite to what we like where it's trading above the upper end of the blue tunnel. Again, possible overvaluation. Growth does sit at a C minus. Bear in mind this industry is cyclical, year-on-year, forward-looking too. Not that far off the sector. However, we do see over the last 5 years they've grown their revenue at a much, much faster rate. EPS 7% projected, below the sector at 10. However, slightly above their own 5-year at 5 1/2. And over the next four quarters, each one of them they're anticipating a decrease. Not really a great sign, but again, it is a cyclical industry. Over the last four though, they do have a 100% track record. Trading on 26 numbers at a forward P of 12.2. And our intrinsic value gets to $121. You are in fact getting a sizable margin of safety. As we keep on going, you can see 25% up to $91. At 30%, not quite there yet. ConocoPhillips 25 to 30% MOS. Wall Street very bullish, $117 price target, 34% upside. Maybe one to consider if you are lacking in the industry.
We then move on to Adobe, which is down around 9% over the last year. Year to date, down six. Over the last 10 though, it has massively outperformed the S&P, up 422%, trading towards the lower end of the 52-week range with a double buy from Seek Alpha as well as Wall Street. Now the grading does get to a C minus where we can in fact see the forward P does sit below the sector, although marginally getting a 10% discount, but actually quite significantly against the 5-year. So you're getting a 40% discount to their own historicals, and that again is pretty much confirmed no matter which metric you look at. Adobe trades a lot lower than it has done on average. Now their growth comes in at a C plus, pretty much 10% year-on-year and forward-looking, which is above the sector median in the 6 to 7% rate. But like most companies today, they are growing their revenue at a slower rate than their own historicals, with EPS projected 15%, above the sector at 13, but slightly below their 5-year at 16. And great to see again, green ride across the board. Always a good sign to see for shareholders and prospective ones. November 2026 numbers, trading at a forward P of 18.3. Now our intrinsic value gets to $587. And you can see we use a growth rate of 10% moving forwards. We also have a low of eight. So we can actually look at the margin of safety on both accounts. Using the medium rate though, we can see you are getting a fairly sizable one at 30%, near in fact a buy at $411. Wall Street themselves see this at 520 over the next year. That is 25% upside. Definitely one to consider if you believe in the longevity of the company, whilst others do believe AI will really harm this company's prospects moving forward.
Now, for those that believe we should use a lower growth rate, say at the 8% level where we have noted 22% upside, you are getting a margin of safety. It won't be as large as the 30% we just saw, but you're getting near 20% at $47, $48. Give us your thoughts: one, whether you like the company; if you believe they can grow at the 8 or 10% level, or in fact, there may be some that believe 12% to be more appropriate. Wall Street, as we know, definitely one they like, as well as members of Congress who have in fact been adding. Now there were some other companies that they were adding. However, we have covered these not too long ago. So we will just highlight them. The first one is Amazon, where members of Congress continue to add even at these very high prices. This is also true of Nvidia, one that continues to climb over the last few weeks, as well as Meta Platforms, trading near their 52-week highs, and Microsoft, which in fact made new 52-week and all-time highs just last week. As always, don't forget to sign up to the free weekly newsletter, grab those spreadsheets, come and join us in Patreon where we cover our buys and sells. And as always, have a great day. We'll see you all on the next one.