Dear Reader,
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That's 7 times better than owning Apple itself.
A similar pattern played out with Nvidia …
While Nvidia soared 770%, a company called Vertiv — which keeps Nvidia's data centers from overheating — climbed 1,700%.
More than double Nvidia's return.
And right now, there's a little-known company that's shipped over five billion chips to SpaceX.
That figure is expected to top 10 billion by 2027.
SpaceX literally calls them "instrumental to Starlink's success."
Yet 999 out of 1,000 investors have probably never heard of them.
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Michael A. Robinson
Director of Tech Research, Weiss Ratings
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McDonald's Is the Cheapest It’s Been in Years—Does That Make It a Buy?
Authored by Sam Quirke. Published: 5/15/2026.
Key Points
- McDonald’s is trading at its lowest valuation and share price levels in nearly two years despite continuing to deliver impressive financial results.
- The stock’s RSI has fallen to deeply oversold territory, and to the same level that has marked major lows in the past.
- Analysts are overwhelmingly bullish on the company’s ability to navigate current headwinds and return the stock to its highs.
- Special Report: Elon Musk’s $1 Quadrillion AI IPO
After a rough couple of months, shares of fast-food giant McDonald’s Corporation (NYSE: MCD) are quietly becoming one of the market’s more interesting contrarian setups. On the surface, however, it may be hard to spot. The stock is back trading at the same levels it was in 2022, its price-to-earnings (P/E) ratio has compressed to its lowest level in nearly two years, and technically speaking, its shares are oversold.
That’s a remarkable position for a company that has been delivering record revenue and record earnings per share in recent quarters. Even more interestingly, McDonald’s relative strength index (RSI) fell to 25 in mid-May, an extreme reading that has historically coincided with lows in the stock.
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When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early - while everyone else waits on the sidelines.
But one small infrastructure supplier - a critical piece Musk can't scale the Colossus network without - is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost.
Get the SpaceX infrastructure stock name and ticker hereInvestors are clearly worried about slowing consumer spending, weaker traffic trends, and mounting pressure across the broader restaurant sector. The question now is whether the market has overreacted to McDonald’s specifically and, in doing so, created a compelling long-term buying opportunity.
Why McDonald’s Has Fallen So Hard
Although the stock was setting record highs as recently as February, several factors help explain why it has fallen as much as 20% since then. The broader consumer environment, for example, has become more difficult, particularly for lower-income families, a key target market for McDonald’s. As oil prices have risen since early March, consumers are feeling the pressure of some of the highest inflation readings in years and are spending less.
Fast-food companies across the board are aware of this shift, and investors are increasingly worried that restaurant traffic could remain under pressure through the rest of the year. That concern has weighed heavily on McDonald’s shares.
The market has also started questioning whether the company’s best growth years are already behind it, especially in a world where investors seem to care mostly about artificial intelligence (AI) or related tech stocks. McDonald’s is about as brick-and-mortar as they come, so perhaps it’s no surprise that the stock has been drifting lower while AI stocks have been surging.
The Fundamentals Still Look Surprisingly Strong
However, the selloff appears increasingly disconnected from the business’s underlying fundamentals. That is what makes the setup so interesting. Despite the weak price action on the chart, McDonald’s continues to perform like one of the strongest consumer businesses in the world.
The company generates substantial cash flow, maintains industry-leading operating margins, and benefits from one of the most powerful franchise models ever built. Its scale, pricing power, and global brand recognition remain almost impossible for competitors to match, let alone replicate.
Importantly, management is not acting like the company is preparing for a long-term dip. As part of last week’s earnings report, the company reaffirmed plans to expand to roughly 50,000 restaurants globally by the end of 2027. That is not the kind of behavior you would expect from a company anticipating structural weakness. If anything, it signals confidence in the company’s outlook and growth expectations.
That confidence is also showing up financially. Even with slowing consumer conditions, McDonald’s is, from a trailing 12-month perspective, delivering record revenue and earnings per share while comfortably beating analyst expectations.
Multiple Signals Suggest This Could Be the Bottom
That has not been enough to stop investors from selling the stock en masse in recent weeks, but it does mean the company’s valuation has been firmly reset.
Based on a fresh P/E ratio of 23, McDonald’s is currently trading at one of its lowest valuation levels in nearly two years. Combined with the fact that the stock is back at 2022 levels, it is hard not to see an opportunity for investors to buy one of the world’s strongest consumer franchises at a serious discount.
This thesis is supported by the technical setup, with the depressed RSI suggesting the stock is in extremely oversold territory. What makes this all the more compelling is that the last time McDonald’s RSI was this low, it ultimately marked a long-term bottom for shares.
The final piece of the puzzle from the bulls’ perspective is the recent analyst commentary, which is overwhelmingly bullish. This week alone has seen JPMorgan Chase reiterate its Overweight rating and $305 price target, while last week Evercore and BTIG did the same, with price targets of $350 and $370, respectively.
Considering McDonald’s is currently trading at just $275, that implies roughly 35% upside—not bad for a stock that is back at 2022 levels, is technically extremely oversold, and is still executing well. Don’t be surprised if the market starts catching on to this opportunity fairly quickly.
Boarding Passes Now Being Issued for the Ultimate eVTOL Arbitrage
Authored by Jeffrey Neal Johnson. Published: 5/6/2026.
Key Points
- Vertical Aerospace's recent successful two-way piloted transition flight shows that the platform possesses superior aerodynamic stability and design maturity.
- Securing a massive new financing package ensures the company maintains a robust liquidity position to fund operations through the next critical milestones.
- Vertical demonstrates exceptional capital efficiency by achieving historic aviation goals while spending significantly less than its primary peers.
- Special Report: Elon Musk’s $1 Quadrillion AI IPO
The first-quarter 2026 earnings report from Vertical Aerospace (NYSE: EVTL) highlighted a significant pricing inefficiency within the electric vertical takeoff and landing (eVTOL) market.
By delivering a sharp earnings-per-share (EPS) beat and securing an $850 million financial fortress, Vertical effectively neutralized near-term insolvency risks.
The #1 stock to buy BEFORE the June S-1 filing (Ad)
When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early - while everyone else waits on the sidelines.
But one small infrastructure supplier - a critical piece Musk can't scale the Colossus network without - is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost.
Get the SpaceX infrastructure stock name and ticker hereOn top of that, Vertical has now completed a long-awaited, regulator-backed transition flight on a fraction of competitors' budgets, confirming rigorous operational discipline. With a heavily shorted float and a strengthened balance sheet, the equity presents an asymmetrical upside scenario for risk-tolerant capital. The data suggests that Vertical Aerospace's stock is among the most glaringly mispriced assets in the advanced air mobility sector, setting the stage for an aggressive rerating.
Flying First Class on an Economy Budget
Vertical Aerospace reported first-quarter 2026 EPS of negative 40 cents, outperforming the negative 52-cent consensus estimate by 12 cents. The underlying driver of this fundamental beat is Vertical Aerospace's extreme capital efficiency. Management data shows that the company is executing advanced commercialization milestones using roughly 25% to 30% of the capital expenditure profiles maintained by heavily capitalized rivals such as Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR).
Vertical's balance sheet ended the quarter with $96 million in cash and cash equivalents. Near-term liquidity gets an immediate boost from $23 million in anticipated research and development tax relief alongside $7 million in government grants and value-added tax returns. Projected net cash outflows for the trailing 12 months are expected to total between $180 million and $200 million. Operating at a fraction of the sector's typical cash burn rate allows Vertical Aerospace to reach deep regulatory validation without triggering the massive, dilutive equity raises currently pressuring the broader advanced air mobility market. This fiscal discipline preserves shareholder value while rapidly advancing the core technology toward commercialization.
Grounding Insolvency Fears With Hard Cash
Liquidity constraints previously formed the core of the bearish thesis against Vertical Aerospace's stock. The recent closure of an $850 million funding package completely neutralizes that near-term insolvency risk. Structured via a Standby Equity Purchase Agreement and a preferred equity facility executed with Mudrick Capital Management and Yorkville, this framework provides flexible capital access without requiring immediate, massive share dilution.
Vertical Aerospace has raised $50 million in equity, drawing $30 million to date. This targeted capital deployment directly aligns with forthcoming technical milestones. Current short-term liquidity, combined with immediate facility draws, is expected to secure a 12-month operational runway.
The financial backstop provides the capital needed to navigate the impending Critical Design Review (CDR), scheduled for mid-2026, shifting the institutional market narrative from balance-sheet survival to execution velocity. The capital injection also allows management to optimize supplier alignment with partners like Honeywell (NASDAQ: HON) and Aciturri without the looming threat of cash depletion or sudden margin compression.
Breaking the Sound Barrier of Regulatory Approval
The primary catalyst driving the current valuation recovery is the successful completion of the full envelope expansion prototype flight test. Vertical Aerospace is now the second company globally to achieve a two-way piloted transition flight in a full-scale tiltrotor eVTOL, seamlessly shifting from thrustborne vertical lift to wing-borne forward flight and back. Vertical Aerospace is the first to achieve this complex aerodynamic milestone under direct regulatory oversight from the UK Civil Aviation Authority for a Design Organization Approval.
Gaining deep regulatory validation early in the testing phase significantly de-risks the long-term certification pathway. Vertical Aerospace is now shifting engineering momentum toward the CDR. Reaching this gating milestone will lock the certifiable design baseline, formalize the supply chain configuration, and initiate assembly of the first of seven planned pre-production certification aircraft.
A mild deceleration in the schedule remains a macroeconomic headwind. The piloted transition flight arrived three months behind internal expectations. Management acknowledged this delay modestly increases the risk of achieving commercial certification by the stated late-2028 target. Still, this minor setback is more than offset by Vertical Aerospace's structural capital efficiency. Progressing toward the final design baseline without triggering catastrophic cash burn provides a wide margin of safety against shifting Federal Aviation Administration and UK Civil Aviation Authority certification timelines.
A Multibillion-Dollar Valuation Gap Ready to Close
The valuation gap between Vertical Aerospace and its pre-revenue peers highlights a severe market inefficiency. Joby Aviation has a market capitalization of $8.5-$10 billion, while Archer Aviation has a valuation of approximately $4.5 billion. At just $330 million, Vertical Aerospace trades at a staggering discount despite locking in a backlog of roughly 1,500 pre-orders from tier-one global operators, including American Airlines (NASDAQ: AAL), GOL, and Japan Airlines (OTCMKTS: JAPSY).
This pricing disconnect attracted aggressive bearish positioning during previous quarters. As a result, Vertical Aerospace's short interest stands at 7.11 million shares, representing 22% of the public float. The short interest ratio is 1.9 days to cover, and the total short position increased 2.39% over the previous reporting period.
Institutional investors betting against the stock relied heavily on a thesis of rapid capital depletion and impending insolvency. The $850 million financing package shatters that premise. By securing a capitalized balance sheet and delivering tangible, regulator-backed flight milestones, Vertical Aerospace has positioned its heavily shorted float for a sharp rerating.
Institutional bears are now trapped against a fundamentally de-risked commercialization trajectory, setting the stage for aggressive short-covering pressure if upcoming technical milestones are achieved on schedule. Institutional ownership sits at an exceptionally high 81%, with $53.57 million in trailing 12-month institutional inflows dwarfing the $3.28 million in outflows. Smart money operators are actively maintaining large equity positions to capture a valuation correction.
Final Boarding Call for a Vertical Opportunity
The data points to a highly mispriced asset navigating a capital-intensive sector with unmatched efficiency. Vertical Aerospace has fundamentally de-risked its commercialization trajectory, combining rigorous engineering execution with robust financial backing to outmaneuver heavily funded competitors.
Investors may want to add Vertical Aerospace to their watchlists as the mid-2026 Critical Design Review approaches. Those with a higher risk tolerance might consider accumulating a position to capitalize on the wide valuation gap between Vertical Aerospace and its multibillion-dollar competitors before short-covering pressure accelerates. While schedule compression ahead of the 2028 certification target warrants close monitoring, the secured liquidity and proven regulatory execution provide a compelling floor for the equity moving forward.
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