By Sithembile Bopela, Chantal Marx, Pritu Makan, Zimele Mbanjwa, Motheo Tlhagale, Khumbulani Kunene
UBER (UBER US)
Uber Technologies, Inc. is a global technology platform company that connects consumers, drivers, merchants, shippers and carriers through digital mobility, delivery and logistics services. Operating in more than 70 countries, Uber leverages its proprietary technology, large network and marketplace data to facilitate ridesharing, car rentals, micromobility and public transport services through its Mobility segment; food, grocery, alcohol and retail delivery through its Delivery segment (including Uber Eats and Uber Direct); and digital freight brokerage, transportation management and logistics solutions through its Freight segment.
Over the last five years, the growth numbers have been astronomical. Between FY21 and FY25, Uber more than doubled platform activity, with trips increasing from 6.4 billion to 13.6 billion (+21% compounded annual growth rate [CAGR]), while gross bookings grew at a similar pace and revenue expanded at an even faster 31.4% CAGR. This scale has translated into a dramatic improvement in profitability and cash generation, with adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) increasing from a loss of $774 million to $8.7 billion and the margin expanding from -4.4% to 16.8%. At the same time, free cash flow swung from an outflow of $743 million in FY21 to an inflow of $9.8 billion in FY25. Further to this, management has demonstrated confidence in the sustainability of cash generation through its $20 billion share repurchase authorisation, with buybacks expected to remain a meaningful driver of per-share earnings growth.
Despite its stronger fundamentals, Uber continues to trade at a meaningful valuation discount to many platform peers (forward PE: 18 times vs peer average: 27 times) as well as its historical average. The company's expanding retail ecosystem, aggressive M&A activity and unmatched autonomous vehicle partner network is substantially increasing its addressable market while creating opportunities for higher-margin revenue streams over the next decade. Analyst forecasts have a 12-month upside price target ~47.5% above current prices.
On Holdings AG (ONON)
On Holding is a premium Swiss athletic sportswear company famous for its cushioned running shoes and high-performance gear. The brand was founded in 2010 by former professional athlete, Olivier Bernhard, and his friends, David Allemann and Caspar Coppetti. It is best known for its patented "CloudTec" sole technology, which are hollow rubber pods (clouds) on the bottom of the shoe. They compress when the runner lands to absorb impact, then lock firm to give runners a strong, springy push-off.
Recent 1Q26 results were strong (with a 37% earnings beat). Sales were strong in Europe, the Middle East and Africa (EMEA) and Asia Pacific regionally as well as better-than-anticipated growth in Apparel and Accessories. This is testament to execution on the business' geographic and product line diversification strategies. The market was disappointed by slower-than-anticipated growth in the United States (US) as well as slightly lower than expected DTC revenue growth. Additionally, the business announced certain management changes that spooked the market.
We think the market reaction was overblown and view the current price as a compelling entry point into a longer-term growth story that will counter the cyclicality inherent to the industry.
On Holding is trading on a forward PE of 19.7 times - a discount to peers, despite having a far superior medium- to long-term growth trajectory.
BYD (1211 HK)
BYD (Build Your Dreams) is a multinational high-tech company based in Shenzhen, China. Originally a battery manufacturer founded in 1995, it has grown into one of the world's largest producers of electric and plug-in hybrid vehicles, and a global leader in battery technology and renewable energy solutions. BYD is a major player in the transition to clean energy and has expanded into over 100 countries and regions worldwide, selling millions of new energy vehicles (NEVs). In South Africa, BYD has firmly established a passenger vehicle market, offering models like the BYD Atto 3 electric SUV, the Dolphin hatchback, and the Seal sports sedan.
The stock is down ~11.5% year-to-date and ~30% over the past year, reflecting the 1Q26 earnings miss, domestic demand headwinds, and broader China EV sector de-rating. However, the bull case for the company rests on the overseas volume ramp-up, margin recovery as the export mix improves, and technology leadership which is expected to offset sustained domestic weakness amid heightened competition and geopolitical uncertainty. Margins faced pressure from ramp-up costs for new battery lines and inventory clear-outs of older models, but these headwinds should fade in the later part of the year while higher volumes drive operating leverage.
BYD is trading on a 12-month blended forward PE ratio of 16.2 times, which looks quite attractive compared to its historical average. The company trades at a premium to other automakers, but the premium has narrowed substantially in recent times. It also trades at a substantial discount to its closest rival in the global EV market, Tesla.
Netflix (NFLX US, NFETNC, NFETNQ)
Netflix is the world's leading subscription video-on-demand streaming platform, providing films, TV series, documentaries, live events and mobile gaming content to more than 325 million paying members across over 190 countries. Founded in 1997 as a DVD-by-mail rental business, the company pioneered the shift toward direct-to-consumer digital entertainment and has evolved into a vertically-integrated content platform that develops, produces, licenses and distributes content globally. Its scale, global reach and growing ecosystem of content, advertising and gaming offerings have established Netflix as one of the dominant players in the global media industry.
Netflix reports across four geographic operating segments: United States and Canada (UCAN), Europe, Middle East and Africa (EMEA), Latin America (LATAM) and Asia-Pacific (APAC). UCAN remains the group's highest average revenue per user market and largest contributor to profitability, while EMEA, LATAM and APAC provide the greatest long-term subscriber growth opportunity. The company's revenue model is increasingly diversified between traditional ad-free subscriptions, advertising-supported subscriptions, paid membership sharing, live event content, consumer product licensing and mobile gaming.
Netflix represents a high-quality growth business that has successfully evolved beyond a pure subscription model into a diversified digital entertainment platform. The combination of global scale, expanding margins, strong cash generation, advertising growth, disciplined capital allocation and increasing monetisation opportunities provides a compelling long-term investment case. While near-term concerns remain around slowing revenue growth and content investment requirements, Netflix's competitive position, strong engagement levels and ability to leverage technology, including artificial intelligence (AI), support its ability to sustain attractive earnings growth over time.
On a forward PE multiple of 19.8 times, materially below its five-year historical average of 32 times, the valuation appears increasingly attractive relative to the quality of the franchise and its long-term growth prospects.
Constellation Energy (CEG)
Constellation Energy is the largest producer of carbon-free energy in the US, operating the largest nuclear fleet in the US, as well as hydroelectric, wind and solar generation assets. The company supplies electricity and energy solutions to utilities, commercial and industrial customers, government entities and large technology companies through long-term power purchase agreements (PPAs). Constellation has become one of the primary beneficiaries of rising AI and data centre power demand, with hyperscalers increasingly seeking reliable, 24-hour, carbon-free baseload power to support expanding computing needs.
Constellation represents a differentiated way to gain exposure to the infrastructure buildout required by AI and data centres. AI requires enormous amounts of reliable electricity, and Constellation's nuclear fleet provides one of the few scalable sources of carbon-free baseload power available today, creating a compelling long-term demand backdrop. Although regulatory uncertainty may create periods of volatility, the combination of stable contracted cash flows, favourable industry dynamics and growing power demand from hyperscalers supports a constructive medium- to long-term investment case.
The stock trades on a forward PE multiple of 19.9 times (five-year average: 23.6 times) and an EV/EBITDA multiple of 13 times (average: 13.7 times), which remains undemanding given the quality of the contracted earnings stream and the secular tailwind from AI-driven power demand.
