20-25% growth at 10–12x earnings: The stock this fundie is buying

The biggest opportunity right now is hiding in plain sight: a high-growth business growing revenues at 20–25% that the market is still pricing at just 10–12x earnings. That disconnect, between what’s being delivered and what’s being valued, is exactly where this fund manager is leaning in.

At the same time, markets are being pulled in another direction. The disruption in the Strait of Hormuz is rapidly tightening oil supply, accelerating a shift from near-term oversupply to a more constrained market, and forcing investors to reassess inflation, capex and growth expectations in real time. It’s a dynamic increasingly front of mind, with potential second-order impacts across sectors.

Sam Ruiz, portfolio specialist in the International Equity Division at T. Rowe Price, focuses on identifying moments where sentiment diverges from fundamentals. With close to two decades of experience across global equities and asset allocation, his approach centres on understanding what the market is pricing in today, and where it might be wrong.

In this Q&A, Ruiz explains how geopolitical shocks are reshaping expectations, why short-term noise can create long-term opportunity, and where he is finding value today. For investors, the message is clear: the best ideas often sit where the market isn’t looking.

What’s your most recent investment and why?

A recent investment was in Sea Limited (NYSE: SE), Southeast Asia’s equivalent to Amazon (NASDAQ: AMZN).

The opportunity emerged from a clear disconnect between market sentiment and the company’s underlying fundamentals. 

The market is currently focused on near-term uncertainty around e-commerce margins, particularly after management guided to a “flat EBITDA” guardrail as they reinvest for growth. That has led to estimated cuts and a meaningful derating.

However, at current levels, the stock is trading around ~10–12x forward EV/EBITDA and roughly 1.1–1.4x forward sales, effectively back to 2023 trough multiples, despite a much stronger business today. The company is now operating at ~12% EBITDA margins versus ~1% in 2023, with a more established logistics network, a scaling fintech arm, and a dominant e-commerce position across ASEAN.

Looking forward, the business is still expected to grow revenue in the 20–25% range, with GMV trends currently tracking ahead of expectations. 

While margins may be held flat in the near term due to reinvestment, I think the market is underappreciating the durability of earnings and the longer-term monetisation opportunity.

Which investment did you add to your watchlist this week?

Schlumberger (NYSE: SLB), which is the world’s largest oilfield services company, providing the technology, data and engineering that enable oil & gas companies to explore, drill and produce hydrocarbons.

We’ve added SLB to the watchlist in response to the current blockage of oil through the Strait of Hormuz. 

The oil market is quickly rebalancing away from an oversupplied near-term backdrop, where, coming into 2026, the oil market was effectively oversupplied by ~2–4 million barrels per day.

This was driven by strong non-OPEC supply growth (US, Brazil, Guyana) outpacing demand growth of roughly ~0.7–1.3mbpd. Much of this surplus was “hidden” in sanctioned barrels and inventories rather than visible OECD stocks, but the expectation was that it would eventually surface - pushing oil prices lower (potentially into the US$60 range), leading to downward revisions to E&P capex and, in turn, weaker earnings for oilfield services companies like SLB.

This near-term oversupply backdrop has masked our medium term view of oil productivity declines, higher cost curves and higher prices. 

Underlying well productivity has been declining since ~2017, meaning more capital is required to sustain output, while future supply increasingly depends on higher-cost sources like offshore and deepwater. 

This supports a higher marginal cost of supply and structurally higher oil prices, which ultimately drives stronger upstream capex—the key revenue driver for SLB.

What has changed more recently is the disruption in the Strait of Hormuz, which is temporarily blocking ~17–20mbpd of oil flows, effectively accelerating the absorption of that oversupply. 

Instead of excess barrels pressuring prices, the market is tightening in real time, with scenarios pointing to oil stabilising closer to ~US$70–80 (or higher with prolonged disruption) rather than falling. 

This reduces downside risk to capex and brings forward the expected inflection in international/offshore spending. As a result, the setup for SLB improves materially: the near-term macro headwind (oversupply) is being neutralised, while the longer-term structural drivers of higher oil prices and rising capex remain intact.

What is the most recent investment you have trimmed or sold and what drove this decision?

We can’t comment on recent quarterly trades, but to remain current, I’ll comment anecdotally that we have been trimming higher beta, early cycle positions in the US, which we believe may be vulnerable to the war’s impact on economic growth, company capex plans and changes in interest rate expectations. 

Earlier in 2026, the US economy had seen a resurgence in industrial demand with the PMIs reaccelerating above 50 following a prolonged period of contraction. For context, US manufacturing PMIs were below 50 for the longest period since the surveys began in the 1940s (and this includes periods of recession). Anticipated rate cuts, economic momentum and more US policy certainty was supporting momentum in areas such as freight, but this momentum is called into question now with the unknown impacts from the war.

What’s your favourite chart or data point from this week?

All eyes are on the potential US withdrawal from Iran, with big question marks surrounding how much economic pain/disruption has already been set in motion. The chart below demonstrates why every week counts and why the inflationary impacts (and rate impacts) are growing worse by the day.

What was your weekly high – a standout market moment or highlight?

Seeing the market’s response overnight to Trump hinting at the upcoming withdrawal from Iran. You can feel the market’s energy and willingness to get back to the pre-war environment which was ultimately a very supportive backdrop for equities (broadening growth, accelerating earnings growth, continued economic growth momentum, continued AI capex expansion etc). 

That glass half full sentiment still appears to be there buried beneath the war pessimism.

What was your weekly low – a market disappointment or challenge?

It’s hard to get away from the war. With so much depending on a US exit strategy, it was very hard to process the mixed messaging surrounding negotiations. 

We’re already seeing cost pressures build into pricing across the economy and the longer the uncertainty holds, the higher the risk the inflation becomes sticky. Consumer surveys are turning and it feels as though it’s touching the economy.

What first drew you to markets and what continues to keep you inspired today?

I stumbled into markets. Being from Adelaide, there wasn’t much opportunity for an investing career but my first job at Macquarie exposed me to HNW portfolios and asset allocation. This was as the GFC was kicking off so it was a quick induction into the financial system and how everything was connected. 

I quickly learned that everyone is figuring it out as they go; no-one knows everything. That’s what is still so exciting about markets today – we’re all being humbled by what we don’t know and trying our best to predict the future. 

It’s so intellectually fascinating thinking through scenarios of what a sector, economy or global construct looks like 5 years from now and how those changes will filter through all asset classes.

What’s one piece of advice you’d give to new investors?

I’ve got two. 

Be humble about what you don’t know and hope is not a strategy. 

The market is very good at pricing in information quickly - be aware of what a stock is pricing in and what would change your mind tomorrow.

How do you unwind when you’re not thinking about the market?

I’ve got three young boys which are a healthy distraction but surfing is one of the only things that truly distracts the mind. 

No phones in the water might have something to do with it…

Rapid fire! 🔥

Favourite investing book?

It’s not an investing book per se but the Elon Musk biography by Walter Isaacson. The pace of change in technology today is mind blowing and this is a fascinating insight into the tech ecosystem and urgency of top tech leaders to drive incomprehensible change.

Favourite investing or finance/markets-related podcast?

Am I allowed to say “The Angle” by T Rowe Price? 

Otherwise, the Acquired or Howard Marks memo podcasts.

The first thing you read each morning?

Bloomberg. Being in Australia, there is so much to catch up on from overnight trading. It's a good summary of ex-Australia price moves and key market-moving events. 

Favourite restaurant?

This changes. One of my favourite restaurants is one of the least fancy from my time working in Hong Kong - Tim Ho Wan at the bottom of the IFC building. It's one of the cheapest Michelin Star restaurants where you get very good Cantonese dim sum for A$20-30.

Something people are surprised to learn about you?

I was in a rock band as a teenager

Think there’s a better pick? Prove it. Share your rapid-fire book, podcast, and daily read in the comments.