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CrowdStrike Holdings (CRWD): Everything You Should Know About This Hot Tech Stock 

By
Editorial Staff
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We all know that the tech sector is hot right now. From semiconductors to generative AI, the tech industry has a vast and varied group of players, each contributing unique advancements to technology’s evolution. 

Therefore, the tech market is very competitive right now. When investing, it’s important to look at the stock’s performance by knowing its financial metrics and the company’s strategic outlook. 

CrowdStrike Holdings is contributing highly to the digital security arena at a time when the internet’s vulnerability to corruption is a growing concern. CRWD’s stock has continued to thrive and grow, beating analysts’ earnings estimates for over a dozen consecutive fiscal quarters. 

Putting a spotlight on CrowdStrike (CRWD), we will see the pros and cons and discover its performance and potential. Analysts are strongly recommending this tech innovator… 

CrowdStrike Holdings Inc. (CRWD)

CrowdStrike distinguishes itself in the cybersecurity sector with its cloud-native approach, notably replacing on-site appliances with the “Falcon” endpoint security platform, which addresses common complaints of space, maintenance, and costliness. Since its IPO in 2019, CRWD’s revenue has grown at an impressive average annual rate of 67% until a recent slowdown. 

The recent slowdown has been attributed to headwinds impacting software spending. However, during a recent conference call, CEO George Kurtz expressed optimism and confidence in CRWD’s ability to generate double-digit revenue growth in the second half of 2023. CRWD’s CFO, Burt Podbere, echoed Kurtz’s sentiment and emphasized the potential for growth despite the challenging environment. 

CRWD actively encourages existing customers to adopt more cloud-based modules, with 41% of its subscribers now using at least six of them. CRWD’s revenue outlook for 2023’s latter two quarters suggests a slowdown from last year, but it would still exceed Wall Street analysts’ forecasts. 

CrowdStrike’s current price against its 52-week high/low:

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CRWD is up year-to-date by 53.15%, has a positive 20/200 day SMA (simple moving average), and carries a modestly healthy TTM (trailing twelve-month) free cash flow of just over $1 billion. On a GAAP (generally accepted accounting principles) basis, CRWD achieved a net profit of $8.5 million for Q2 2023, marking its second consecutive quarter of profitability. During its Q2 earnings call, CRWD surpassed analysts’ projections, reporting EPS of $0.74 per share vs. $0.56 per share as expected, winning by a 53.15% margin; it beat revenue slightly by 0.96%. CRWD currently holds a 0.96 beta score, which indicates that the stock doesn’t need to worry much about broader volatility in the market. 

CRWD also reported year-over-year growth in some crucial areas like revenue (+36.71%), net income (+117.19%), net profit margin (+112.60%), and operating income (+68.18%). CRWD is slated to report earnings again on November 29th, and analysts predict $774.5 million in sales with an EPS of $0.60 per share and a whopping expected 3-5 year EPS growth rate of 170.6%. 

CRWD’s stock only saw modest gains after its latest and remains around 50% below its all-time high. However, this shouldn’t be seen as a bad thing because it presents an opportunity for investors to consider accumulating shares in CRWD before the business experiences a potential resurgence.

It’s important to note that while CRWD’s sales growth isn’t as explosive, it’s still expanding its subscription margin (currently 80%) and its cost management capabilities. The disciplined approach to stock-based compensation expenses has contributed to back-to-back profitable quarters. 

Looking ahead, CRWD anticipates a significant rise in adjusted EPS (85% year-over-year growth in Q3 and 84% for the entire year), exceeding Wall Street’s expectations. CRWD’s valuation remains justified by its “first-to-the-party” advantage in the cybersecurity space. It has its share of bullish analysts; CRWD boasts 12 “strong buy” ratings, 28 “buy” ratings, and 6 “hold” ratings. With a 10-day trading average volume of 4.65 million shares, CRWD has an average price target of $180, with a high of $250 and a low of $150; this represents a potential increase of just over 55% from its current trading price. While it isn’t likely to skyrocket tomorrow morning, there is absolutely long-term potential to be found here, and analysts agree that CRWD does well in representing a promising long-term growth opportunity for investors. 

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Stock Hotlist: Top Picks to Watch Now

By
Editorial Staff
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0

Picking the wrong stocks can decimate your portfolio.

They’re pure portfolio poison.  

But the right stocks…

If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

With over 4000 tickers to choose from, finding the right stock at the right time can prove to be nearly impossible… 

Unless you’re spending hours each day combing the markets and researching companies.  

That’s why we’ve done the legwork for you.  

We sort through thousands of stock ideas and whittle them down to a few top choices that are primed for solid price action in the coming days, weeks and months.  

This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

Click here for the full story on the stocks we’re watching this week… 

Sprout Social (SPT)

Sprout Social is a web-based social media management platform that made its market debut in late 2019. The company tapped into the rising trend of businesses shifting their marketing strategies towards social media platforms. Boasting a customer base of over 30,000 globally, Sprout Social’s revenue continues to climb both sequentially and year-over-year. However, the company faces a challenge with its expanding losses despite revenue growth. 

Notably, the recent acquisition of Tagger media for $140 million aims to bolster its reach within the influencer community. SPT stock has faced a decline of more than 17% in 2023 and over 23% in the past year. Despite these setbacks, investors with a patient, long-term perspective might consider this as a strategic entry point.

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FARO Technologies, Inc. (FARO)

It’s not uncommon for small tech companies to lose money for years before finding success.  However, it is why investors have been hesitant about three-dimensional measurement solutions developer Faro Technologies since it boosted investment sharply in the last year, with cash burn ramping by 64%.  That does raise some red flags, and there’s no solace in the operating revenue growth of 2.4% in the same time frame.  Clearly, however, the crucial factor is whether the company will grow its business going forward.  

FARO’s latest offering is its cloud-based information platform, Sphere. With Sphere, users are able to leverage artificial intelligence and machine learning to automate time-consuming and repetitive tasks.  Sphere enables faster 3D data capture, processing and project management for engineering and construction projects.  We expect this technology to grow and develop along with AI and don’t see the company’s extra spending as a deterrent.   

Its cash burn of $42 million is about 8.7% of its $478 million market cap. That’s a low proportion and stands out as evidence that the company is well on top of its spending.  Considering the potential for advancement for this micro-cap, the pros on Wall Street are beginning to take notice.  The five analysts offering recommendations for the stock say to Buy FARO, with none recommending to Sell.  A median 12-month price target of $26 represents a 53% increase from the current price.  

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Rocket Lab (RKLB) 

Small-cap space company, Rocket Lab distinguishes itself with its robust financial standing, a rarity among smaller players in the space industry. Recent earnings reflected a noteworthy 12% year-over-year increase in revenue, while the addition of a $40 million contract backlog further underscores the company’s growth trajectory and financial resilience.

The launch services specialist has reached a significant milestone by successfully reusing an engine from a previous flight in its August 23rd rocket launch. This achievement marks a decisive stride toward Rocket Lab’s goal of achieving complete booster reusability across multiple launches. This advancement not only promises to accelerate Rocket Lab’s launch cadence but also stands to considerably curtail manufacturing expenses.Concurrently, the company is tantalizingly close to achieving its post-launch barge landing target, a strategic move that holds the potential to streamline operations and bolster cost efficiency. The recent acquisition of Virgin Orbit’s dormant facility has propelled Rocket Lab even closer to realizing these aspirations, firmly establishing it as a space stock to consider adding to your portfolio.

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Long-Term Wealth Builders: These Stocks Show The Absolute Best 30-Year Gains 

By
Editorial Staff
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I was looking at how the different stock sectors were doing earlier and noticed that while there are certainly some that are thriving, not as many seemed to particularly stick out. 

When that happens, I’ll typically seek out stocks with common characteristics rather than the industry they participate in. Dividend stocks are the easiest example of this. Sometimes, I like to think about undervalued stocks, stocks that are down year-to-date, and even stocks with low market volatility. 

Well, in today’s case, I’ve gravitated toward stocks that boast some of the highest 30-year gains. That shows us two things: They have longevity, and they’ve been extraordinarily profitable in that time period. 

Stocks with both long histories on Wall Street and excellent growth trajectories during said histories are usually pretty good to keep on our radar, at the very least… 

Pool Corp (POOL) 

Pool Corp. (POOL) has the distinction of being the world’s largest distributor of wholesale swimming pool supplies, equipment, and associated outdoor recreation products. Since POOL’s 1995 arrival, it has shown an astounding total return of 57,251%, showcasing an impressive average yearly gain of 25.7%. POOL’s performance and safety contrast with many stocks with some low momentum as of late, demonstrating its vitality. Over the past five years, POOL’s remarkable total return of 135.3% has significantly surpassed that of the S&P 500. A hypothetical $10,000 investment in POOL in 1995 would now command a value of around $5.7 million. For value-oriented investors, POOL’s consistent growth over time, its niche market leadership, and its handsome dividend are all reasons to give it a fair look. 

POOL’s stock is currently up by 20.98% year-to-date, is trading around the middle of its existing 52-week high-low, has a positive 20/200 day SMA (simple moving average), a 44.11% ROE (return on equity), a 0.98 beta score, and TTM (trailing twelve-month) momentum growth of 8.27%. For the current fiscal quarter, POOL is expected to report $1.6 billion in sales at $4.30 per share, with a projected 35% 3-5 year EPS growth rate; it’s penciled in to report said earnings on October 19th. POOL has an annual dividend yield of 1.20% and a quarterly rate of $1.10 ($4.40/year) per share. With a 10-day average trading volume of roughly 277 thousand shares, POOL has an average price target of $390, with a high of $432 and a low of $315; this suggests a potential price upside of over 18% from its current trading position. 

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Altria Group Inc (MO) 

Tobacco behemoth Altria Group Inc. (MO) might be an unexpected star in the market’s last 30 years, or you may not like tobacco. Regardless, MO began defying expectations after its debut in July of 1985 by accruing an impressive 60,589% since that time, a 23.8% average annual return. Despite enduring significant public relations and regulatory challenges impacting the sector, MO has maintained its upward trajectory. A theoretical $10,000 investment in MO’s stocks in 1993 would now stand at approximately $6.1 million. MO’s history of robust gains and dividend payments gives the stock proper intrigue. 

MO is down year-to-date by 3.28%, carries a beta of 0.62, has a 2.14x PEG (price/earnings to growth) ratio, has an operating free cash flow of $8.8 billion, and TTM asset and momentum growth rates of 1.10% and 5.25%, respectively. At its Q2 2023 earnings call, MO reported EPS of $1.31 per share, beating analysts’

projections by 1 cent, or 0.77%; during the same time, it posted year-over-year revenue growth (+4.21%), net income (+137.6%), EPS (+142.86%), and net profit margin (+127.49%). MO has an 8.86% annual dividend yield, a quarterly payout of 98 cents ($3.92/year) per share, and a generous 98.95% payout ratio. With a 10-day average volume of 6.72 million shares, MO has a median price target of $49, with a high of $70 and a low of $37, representing a potential price leap of more than 58% from its current spot. 

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Monster Beverage Corp (MNST) 

Seemingly unnoticed on Wall Street, Monster Beverage (MNST) has become a standout investment since its 1990 inception, bringing an impressive total return of 191,852% over three decades. A 2015 partnership with Coca-Cola, in which MNST acquired a 16.7% stake, boosted growth. With a notable average yearly return of 31%, a $10,000 investment in 1993 would now be valued at around $19.2 million. MNST may not pay dividends, but its enduring success and strategic collaborations make it an enticing option. 

Up currently year-to-date by 13.11%, MNST has a volatility-safe 0.83 beta score, a positive 20/200 day SMA, a positive ROE of 19.59%, a free cash flow of roughly $1 billion, and an incredibly low D/E (debt to equity) measure of 0.05%. For Q2 2023, MNST reported year-over-year growth in crucial areas such as revenue (+12.06%), net income (+51.4%), EPS (+50%), and net profit margin (+35.13%). For the current fiscal quarter, MNST is projected to report $1.9 billion in sales at $0.40 per share, with a 3-5 year EPS growth rate of 7.3%; it’s slated to report again on November 9th. With a 10-day average volume of 3.35 million shares, MNST has an average price target of $63, with a high of $72 and a low of $57; this indicates the possibility of a price jump of over 25% from where it currently trades. 

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Three Stocks to Sell ASAP

By
Editorial Staff
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0

The right stocks can make you rich and change your life.

The wrong stocks, though… They can do a whole lot more than “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.

They’re pure portfolio poison.

Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.

That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are, in fact, regularly in the headlines for other reasons, often in glowing terms.

I’m going to run down the list and give you a chance to learn the names of three companies I think everyone should own instead.

But first, if you own any or all of these “toxic stocks,” sell them today…

American Eagle (AEO) 

American Eagle was once the epitome of must-have style for the younger generation. However, since the tumultuous era of the Great Recession, AEO’s performance has been marked by pronounced ups and downs. In essence, if you eliminate the market’s peaks and troughs, what remains is a relatively flat trendline.

By closely monitoring insider transactions, you get a sense of what a company’s future might hold, as they can be indicative of insiders’ confidence in their own organization, reflected particularly through their stock purchases. However, in the case of American Eagle, this confidence seems conspicuously lacking. Data from Fintel reveals a stark contrast: Insider purchases have amounted to a mere 28 transactions, with the most recent buy recorded in late July of the preceding year. Conversely, a staggering 150 insider sales transactions have been executed, the most recent being in April of the current year. These statistics underscore a lack of faith among insiders, painting an uncertain picture of the company’s prospects.

Further complicating the matter, market analysts have assigned AEO a consensus “hold” rating. However, with a price target of $14.50, investors may potentially grapple with substantial losses. Consequently, it might be prudent to consider an exit strategy while viable options remain available.

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Kraft Heinz (KHC)

Kraft Heinz, known for its household brands like Kraft Dinner, Heinz Ketchup, and Jell-O, has been grappling with persistent challenges ever since its formation through a merger in 2015. Adding to the reasons why KHC might warrant consideration in your list of stocks to get rid of is its staggering five-year decline of 42%, including a substantial 17% dip in the year 2023. Even the prominent investor Warren Buffett, who holds KHC shares, has publicly expressed regret over his investment in the company. The latest setback for Kraft Heinz was the resignation of its CEO, Miguel Patricio, after a four-year tenure. Patricio, who joined the company in 2019 with the mission to rejuvenate its sales and market share, now plans to step down in early 2024. His successor, Carlos Abrams-Rivera, currently presides over Kraft Heinz’s North American operations. This leadership transition coincides with a waning demand for Kraft Heinz’s products, driven by rising prices that are steering consumers toward more affordable generic alternatives.

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Canadian Pacific Kansas City (CP)

The Canadian Pacific Kansas City railway, a product of a recent merger, is navigating through its initial phases of integration. Notably, this railway holds a unique distinction, spanning across all of North America boasting tracks that traverse Canada, the United States, and Mexico. However, the company operates under some stringent conditions imposed by regulators who greenlit the $31 billion merger, which was formally completed in April of the current year. These conditions encompass a distinctive seven-year period of oversight, during which the company is prohibited from workforce layoffs.

Additionally, Canadian Pacific Kansas City has raised concern about the potential adverse effects of the recent labor strike at British Columbia seaports, indicating an anticipated impact on its third-quarter performance. The strike by dockworkers has been estimated to result in a daily revenue loss of around $80 million for the company. In terms of financial performance, the railway posted promising results for the second quarter, marking its inaugural earnings report since the merger. Notably, net income witnessed a robust 74% surge, while revenues climbed by an impressive 44% compared to the prior year. Despite these encouraging signs, investors seem to be adopting a cautious stance, with CP stock reflecting only a marginal gain of 0.15% over the past 12 months.

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Rising Stars: These Tech Disruptors Could Make Millionaires Out of Everyday Investors

By
Editorial Staff
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0

Imagine being among the fortunate investors who had early access to the groundbreaking journey of Google, the search-engine startup, when its stock went public in 2004.

If you had invested $1,000 back in August 2004 when the company first went public, that initial investment would now be valued at a staggering $1,416,488.18.

Yes, you read that right – holding onto this explosive stock through its remarkable journey has led to an astounding gain of approximately 134,613% since its IPO.

Unfortunately, there is no way to rewrite the past. However, with the continuous advancements in technology, a fresh tide of trailblazers with the potential to create millionaires has emerged.

Investors who track the growth of these innovators into their IPOs stand the best chance for exponential returns. So ride the wave of opportunity with us, and watch these names explode…

Wiz

Founders: Assaf Rappaport (CEO), Ami Luttwak, Yinon Costica, Roy Reznik

Launched: 2020

Headquarters: New York City

Funding: $900 million

Valuation: $10 billion

Key technologies: Cloud computing

Industry: Enterprise technology

From the heart of Tel Aviv,  hyper-growth sensation Wiz is setting an ambitious course to achieve a remarkable $100 million in revenue within a mere 18-month span. Wiz stands at the forefront as a trailblazer in the realm of cybersecurity, introducing an innovative approach that swiftly identifies and addresses cyber risks, all while paving the way for a novel category of cloud-centric security solutions.

Wiz’s recent exponential growth surge can be attributed to a constellation of factors, including the strategic launch of new cutting-edge products, strategic partnerships with heavyweight names like BMW and Salesforce, and the privilege of serving a substantial segment of the Fortune 100 echelon.

This unfolding narrative coincides with the cloud’s transformation, transcending the confines of mere computing access and storage to profoundly influence the cybersecurity landscape. Consequently, the surge in demand for cloud-centric security is a testament to the evolving cyber landscape.

Spring Health

Founders: April Koh (CEO), Adam Chekroud

Launched: 2016

Headquarters: New York City

Funding: $300 million

Valuation: $2.5 billion

Key technologies: Artificial intelligence

Industry: Healthcare

In the ever-evolving landscape of workplace dynamics, the spotlight has shone resolutely on mental health and worker well-being, catalyzed by the pandemic’s transformative impact on remote work trends. With a keen eye on the tight labor market, where optimal employee productivity stands as a vital linchpin, employers are increasingly channeling their focus toward addressing stress, anxiety, depression, and the looming specter of burnout. Stepping into this narrative is Spring Health, a herald of the new generation of mental health providers poised to extend their support to employers and health plans.

Spring Health’s journey began as an academic research endeavor at Yale University. From there, it transformed into something truly remarkable. Armed with clinically validated data, Spring Health emerged as a force to reckon with. They’re tapping into the precision medicine trend, leveraging their platform to deliver exactly what each person needs. Whether it’s meditation, coaching, therapy, medication, or a mix of these, they’re all about personalized solutions.

April Koh, the co-founder, and CEO, has a powerful story behind this approach. After witnessing loved ones struggling with different providers, programs, and medications without success, she decided to take a bold, data-driven route. And you know what? She’s absolutely onto something. In her own words, “Every setback chips away at one’s courage and hope. In five to ten years, the landscape of mental health care will undergo a paradigm shift. It will evolve from the realm of uncertainty to one marked by precision, driven by data, tailored to each individual,” as she shared on the company’s website.

In the here and now, Spring Health has seamlessly woven its expertise into the fabric of over 800 companies spanning startups to global Fortune 500 stalwarts, counting General Mills, Bain, and Instacart among its beneficiaries. Notably, 2022 witnessed its portfolio welcoming the likes of Microsoft, JPMorgan Chase, and Trinity Health. The acquisition of the family wellness platform Weldon, unveiled in May, was a strategic stride to offer more holistic services, touching aspects such as sleep, behavior, conflicts, grief, developmental challenges, and neurodiversity within families. The canvas of its influence expanded across 40 countries and 20 languages, and the company raised $71 million in April, constituting a quarter of its overall capital raised.

Relativity Space

Founder: Tim Ellis (CEO), Jordan Noone

Launched: 2015

Headquarters: Long Beach, California

Funding: $1.3 billion

Valuation: $4.2 billion

Key technologies: Artificial intelligence, machine learning, robotics, digital twins

Industry: Aerospace, transportation

Relativity Space has made its mark by launching a 3D-printed rocket from Cape Canaveral, Florida, this March. While the initial test flight didn’t quite reach orbit, this space startup isn’t slowing down. Their mission? To revolutionize rocket manufacturing, making it cheaper and faster for upcoming journeys to the moon and Mars.

Billionaire investor and entrepreneurial virtuoso Mark Cuban has backed Relativity since its initial funding in 2016, extending his patronage in successive funding rounds. This symphony of support harmonizes with the backing of Tiger Global, BOND, and Fidelity Research and Management, all conducted under the baton of Relativity Space’s magnetic allure. In a crescendo of investment, the startup resonated with a $650 million raise in its fifth funding cycle during June 2021, magnifying its valuation to the exalted echelons of $4.2 billion.

While Relativity Space’s spotlight spans from commercial pioneers to the resolute arm of the U.S. government, the apex of recognition comes courtesy of NASA. In 2022, this pioneering entity penned a twenty-year partnership with NASA’s Stennis Space Center in Mississippi, unfurling a new chapter in growth.

These BNPL Stocks are the Future of the Fintech Market

By
Editorial Staff
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0

The fintech (financial technology) industry started to make headway during the pandemic. There was economic stress, and the lockdowns influenced the need to manage our finances digitally (and remotely). 

BNPL (Buy Now, Pay Later) stocks represent companies that offer short-term loans; adding to the appeal is that they usually have fixed installment payments without interest or hidden charges. 

BNPL loans can be profitable for the fintech market but carry the risk of repayment default. Some companies utilize AI to evaluate the loans and lessen this risk, which is also a natural risk for any loan. That shouldn’t deter investors from considering a fintech stock as a portfolio addition. 

The best “Buy Now, Pay Later” stocks will only continue to grow as the demand for those types of loans increases as well. These stocks are in it to win and win big… 

Block Inc (SQ) 

Formerly known as Square, Block (SQ) is a global tech firm focusing on providing financial services. Its comprehensive platform comprises various individual services for business growth, including the popular “Cash App.” SQ acquired Afterpay in 2022 for $29 billion and integrated its BNPL platform into both Square and Cash App. This integration enables customers to make interest-free installment payments on SQ’s loans over a six-week period, driving a 40% increase in spending per transaction and a 50% increase in shopping frequency. This strategic acquisition has positioned SQ as a strong contender in the evolving “Buy Now, Pay Later” landscape, bolstering its potential as an investment. 

SQ is currently down year-to-date by 8.08%, is trading near the bottom of its existing 52-week range, has a 1.05x PEG (price/earnings to growth) ratio, and a TTM (trailing twelve-month) asset growth measure of 7.58%. At its Q2 2023 earnings call, SQ exceeded analysts’ projections on EPS and revenue by 5.09% and 8.49%, respectively. SQ also reported positive year-over-year growth in revenue (+25.67%), net income (+41.11%), EPS (+44.44%), and net profit margin (+53.18%). For the current fiscal quarter, SQ is expected to post $5.2 billion in sales at $0.46 per share, with a projected 3-5 year EPS growth rate of 26.3%. With a 10-day average volume of 9.10 million shares, SQ has a median price target of $88, with a high of $110 and a low of $34.98; this suggests the potential for a price upside of over 90% from its current price. 

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Affirm Holdings Inc (AFRM) 

Affirm Holdings Inc. (AFRM) excels at crafting financial products that boost business sales and encourage responsible consumer spending and saving. Renowned for its BNPL loans, AFRM offers clear, interest-free repayment options with no hidden fees. AFRM’s revenue streams encompass its merchant discount rates, interchange fees from its virtual credit card, simple interest on long-term loans, and gains from third-party loan sales. This robust financial model positions AFRM as an attractive stock choice. 

At Q2 2023’s earnings call, AFRM’s CFO Michael Linford stated, “Despite significant changes in interest rates and consumer demand, we still delivered good credit results, unit economics, and GMV (gross merchandise volume) growth. We also demonstrated that the business can continue to expand profitably even in a high interest-rate environment.” AFRM met analysts’ expectations on EPS and reported revenue of $445.82 million vs. $406.08 million as expected (a 9.79% win); it also reported year-over-year revenue

growth of 7.39%. AFRM is expected to report $429 million in sales for the current fiscal quarter. AFRM is currently up by 97.93% year-to-date but is trading near the middle of its 52-week range, leaving room for upside. With a 10-day average volume of 20.75 million shares, AFRM has an average price target of $16, with a high of $24 and a low of $6, suggesting a potential price jump of over 25% from its current position. 

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PayPal Holdings Inc (PYPL) 

PayPal Holdings Inc. (PYPL) has been a long-time prominent figure in the world of digital payments, offering fintech assets like Venmo and its PayPal “digital wallet.” PYPL’s BNPL service, launched in 2020, empowers consumers to make interest-free purchases up to $1,500, repayable in four installments, or extend larger purchases over 24 months with interest. With over 200 million loans issued to over 30 million customers across eight global markets by mid-2023 (after BNPL loans surged in 2022), PYPL has positioned itself as a market leader and a compelling investment choice; I’ll lend a spotlight to that. 

PYPL is down year-to-date by 12.24%, trading near the bottom of its existing 52-week range, which leaves plenty of room for a price upside. With a free cash flow of $3.35 billion, PYPL has a PEG ratio of 0.56x and a positive ROE (return on equity). For its Q2 2023 earnings call, PYPL reported EPS that met analysts’ expectations while beating revenue slightly by 0.20%; it also reported year-over-year growth in critical areas like revenue (+7.07%), net income (+401.76%), EPS (+417.24%), and net profit margin (+381.84%). For the current fiscal quarter, PYPL is projected to report $7.3 billion in sales at $1.22 per share, with an expected 3-5 year EPS growth rate of 13.7%. With a 10-day average volume of 14.67 million shares, PYPL has a median price target of $85, with a high of $126 and a low of $55; this indicates the potential for a more than 101% leap from its current trading price. 

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Secure Dependable Profits With These Consumer Retail Stocks

By
Editorial Staff
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0

Why Retail? Why the Consumer Goods industry? Well, there are a few things to consider: 

– Strong spending and purchasing power in the overall retail sector. 

– Inflation has decreased from its peak in 2022. 

– Consumer spending remained robust in July, with retail sales growing by 0.7%. – The consumer goods market is projected to reach $3 trillion by the end of 2023. – Analysts project a 3.2% rate in annual growth from 2023 to 2028. 

We like positive data, and we want sectors that are performing well. That’s absolutely the case here, and we have three stocks in particular that highlight these principles… 

Albertsons Companies Inc (ACI) 

Albertsons Companies (ACI) stands out as a formidable contender in the retail sector, capitalizing on its commitment to efficient in-store services and elevating digital and omnichannel capacities. ACI is also known for driving enhanced productivity. The ongoing initiatives undertaken by ACI to enrich its range of products consistently elevate the holistic customer journey. Notably, ACI presents a projected long-term earnings growth rate of 8%, further underscoring its potential for sustained growth. 

ACI, currently up year-to-date by 6.85%, has a positive 20/200 day SMA (simple moving average), positive year-over-year revenue and momentum growth, a PEG (price/earnings to growth) ratio of 1.63x, and a solid 0.37 beta score. ACI most recently beat analysts’ projections on EPS, reporting $0.93 per share vs. $0.85 as expected (a 9.8% win), and has exceeded estimates for 12 consecutive quarters. ACI has an annual dividend yield of 2.17% and a quarterly payout of 12 cents ($0.48/year) per share. For the current quarter, ACI is expected to post $18.2 billion in sales at $0.62 per share. With a 10-day average volume of 2.5 million shares, ACI has an average price target of $25, with a high of $27.25 and a low of $21, indicating the potential for a 23% jump from its current price. While up YTD, ACI is trading near the bottom of its 52-week range, leaving plenty of room to move in the right direction. 

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Unilever PLC (UL) 

Based in London, U.K., Unilevel PLC (UL) is a fast-moving consumer goods firm that markets items under renowned brands such as Ben and Jerry’s, Axe Bodyspray, LUX, Seventh Generation, and others. On April 3rd, UL achieved a substantial cloud transition project via partnerships with Microsoft Corp. (MSFT) and 

Accenture PLC (ACN). By adopting Azure’s cloud platform, UL has streamlined operations, improving new product introductions, customer support, and overall efficiency. UL also recently disclosed the sale of its Suave brand in North America to Yellow Wood Partners LLC. This divestiture underscores UL’s successful strategy of re-designing its portfolio towards targeted growth sectors. 

UL is up slightly year-to-date by 0.41% and is trading around the middle of its existing 52-week price range. With a positive SMA, $7.6 billion in free cash flow, and a 0.51 beta score. Regarding its last earnings call, UL beat analysts’ revenue forecasts by 2% while also reporting year-over-year growth in key areas like revenue (+2.72%), net income (+22.13%), EPS (+25%), and net profit margin (+18.86%). UL has a 3.46% annual dividend yield, a quarterly payout of 47 cents ($1.88/year) per share, and a 62.88% payout ratio.

With a 10-day average volume of 1.93 million shares, UL has a median price target of $58.15, with a high of $68.01 and a low of $41.18; this represents an almost 34% potential price upside. 

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Edgewell Personal Care Co (EPC) 

Oddly, the insider investment in Edgewood Personal Care Co. (EPC) was the first thing I noticed about it. It emphasizes EPC’s alignment with shareholders’ interests, boosting market confidence. With an insider holding valued at around $19 million overall, there’s a strong sense of conviction in the firm’s strategy; this holding, while significant, only represents about 1% of the EPC’s shares. Evaluating revenue growth and earnings margins provides insights into sustainable profit growth, and EPC maintained steady margins while achieving a 3.5% revenue increase to $2.3 billion over the past year. This is a promising combination. 

EPC is down year-to-date by 2.85%, has a 0.87 beta, almost $200 million in free cash flow, a P/S (price to sales) ratio of 0.86x, and a P/B (price to book) ratio of 1.23x. At its last earnings call, EPC surpassed analysts’ expectations, reporting EPS of $0.98 per share vs. $0.81 per share as expected (a 20.70% surprise) and winning by a margin of 0.89% on revenue. EPC also reported year-over-year revenue growth (+4.20%), net income (+72.13%), EPS (+77.19%), and net profit margin (+65.24%). EPC has an annual dividend yield of 1.60% and a quarterly payout of 15 cents ($0.60/year) per share. With a modest 10-day average volume of roughly 303 thousand shares, EPC has an average price target of $47, with a high of $53 and a low of $37; this range suggests a more than 40% jump in pricing from where it currently sits. 

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Three Under-the-Radar Small-Cap Stocks with Huge Potential

By
Editorial Staff
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0

Although the broad market continues to be driven by macro uncertainties, small-cap stocks have performed well thus far in 2023. The small-cap Russell 2000 Index has beaten the broader market this year, with a gain of 5%, outperforming the Dow’s 3% YTD gain. 

Stocks with small market capitalizations are generally less correlated to the performance of larger companies and can provide an additional layer of diversification for investors. Considering the implosion in some mega-cap tech names, now is a particularly good time to consider adding to your small-cap position.

Even if you missed out on the first half’s run-up in small-cap stocks,  you’ve far from missed the boat when it comes to undervalued, under-the-radar opportunities in this space. This list will cover three promising small-caps with ample room to run in 2023 and beyond.  

I-80 Gold (IAUX)

The junior miner is moving into the production stage just as gold prices are soaring. I-80’s latest mining discoveries may enable it to, within a few years, increase its annual gold production to between 250,000 and 400,000 ounces.   Considering the gold miner’s strong long-term growth potential,  the stock appears undervalued. At current prices, shares trade for less than seven times earnings. 

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Sachem Capital (SACH)

This mortgage REIT focuses on making short-term, so-called “hard money” loans backed by good collateral. For this reason, it could prove to be much more resilient than other mortgage REITs this year. Currently trading at a 30% discount to book, the small-cap seems to have plenty of runway ahead in 2023. Aside from its potential for solid capital gains, SACH investors enjoy a hearty 13.6% dividend yield backed by a sustainable rate of payout.  

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VAALCO Energy (EGY)

The oil exploration and production company is among the most undervalued small-cap names. Trading at just 4.2 times forward earnings, it’s cheap even for an energy stock. Even if crude oil prices fail to return to their 2022 highs, cost savings from its merger with TransGlobe Energy could result in earnings growth.  

Aside from its ample upside potential, EGY offers investors steady returns with a sizeable payout. Management recently announced that it is raising Vaalco’s quarterly dividend by 92%, from 3.25 cents per share to 6.25 cents per share. This increase gives EGY a forward yield of 5.23%.

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Secure Massive Gains With These AI Software Stocks Today 

By
Editorial Staff
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0

The global AI software market, made up mostly of cloud computing, is on the brink of massive expansion, and this results from the escalating demand for software-focused solutions and services. 

Software firms will soon be utilizing the following areas of groundbreaking AI tech, to name a few: 

– Machine Learning (ML) 

– Augmented Reality (AR) 

– Virtual Reality (VR) 

– Internet of Things (IoT) 

Also noteworthy: The global software industry is projected to reach a market size of $4.91 trillion by 2027. 

Various areas of AI will undoubtedly bolster the software sector’s growth trajectory, and some particular software stocks will greatly benefit from it… 

GoDaddy Inc (GDDY) 

GoDaddy Inc. (GDDY) is a cloud-based innovator that offers products to other businesses such as marketing, mobile optimization, and e-commerce creation. Notably, GDDY introduced “Instant Video,” an AI-powered feature in GDDY’s Studio app, aiding small businesses in making films for video-centric marketing without added costs. GDDY has launched generative AI products to aid small enterprises in tasks like product descriptions and customer service messages. In collaboration with Microsoft (MSFT), they’ve introduced seamless payment solutions in Microsoft “Teams” meetings. The fact that the software giant chose GDDY only highlights its strong position in the US payments sector. 

GDDY is down year-to-date by 5.65% and trading near the bottom of its existing 52-week range. GDDY has a volatility-safe beta score of 0.96, a PEG (price/earnings to growth) ratio of 0.76x, almost $1 billion in operating free cash flow, and positive year-over-year revenue growth. For the current fiscal quarter, GDDY is projected to report $1.1 billion in sales at $0.77 per share, with a forecasted 3-5 year EPS growth rate of 50.7%; the firm is scheduled to report on November 8th. With a 10-day average trading volume of 1.41 million shares, GDDY has a median price target of $89.50, with a high of $102 and a low of $77; this suggests the potential for an almost 45% price upside. GDDY has 10 buy ratings and 5 hold ratings. 

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RingCentral Inc (RNG) 

RingCentral Inc. (RNG) stands out as a global leader in providing enterprise cloud communications, video conferencing, and SaaS (Software as a Service) communication services. On May 18th of this year, we witnessed a strategic partnership between Vodafone Portugal and RNG, which seamlessly integrates RingCentral’s messaging and video capabilities with Vodafone’s voice functionalities, making for a robust communication solution. As remote work increases, RNG’s new solution is poised to become a staple for Portuguese companies seeking heightened productivity and flexibility. Anticipating vast adoption, the integration will also expand RNG‘s influence on the global marketplace. 

Down year-to-date by 19.41% and trading at the bottom of its existing price range, RNG’s stock has a 0.91 beta, a 0.44x PEG ratio, a P/S (price to sales) ratio of 1.29x, and a positive 20/200 SMA (simple moving

average). During its Q2 earnings call, RNG reported EPS of $0.83 per share vs. $0.75 per share as expected by analysts, a 10.70% win, while it beat revenue projections by 0.55%. RNG also reported year-over-year growth in critical areas like revenue (+10.76%), net income (+86.53%), net profit margin (+87.85%), and operating income (+60.76%). With a 10-day average volume of 2.34 million shares, RNG has an average price target of $43.50, with a high of $65 and a low of $34; this represents the potential for a price leap of more than 127% from its current spot. RNG has 18 buy ratings and 11 hold ratings. 

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ServiceNow Inc (NOW) 

ServiceNow Inc. (NOW) is a key player in enterprise cloud computing solutions, offering services that streamline processes for global enterprises. NOW’s platform encompasses workflow automation, AI, ML, and more. NOW‘s dedication to innovation is evident in its generative AI advancements, including case summarization and text-to-code capabilities. NOW has collaborations through the AI Lighthouse program with Accenture (ACN) and a transformative partnership with NVIDIA Corp. (NVDA) for enterprise-focused generative AI capabilities. NOW‘s commitment to technological advancements makes it a software company worth taking seriously. 

Unlike its peers on this list, NOW’s stock is trading near the high of its existing range and is up by 42.91% year-to-date. With a positive SMA, a 1.02 beta, and positive TTM (trailing twelve-month) growth in assets and momentum, NOW has a low D/E (debt to equity) measure of 21.47% and an operating free cash flow of $2.91 billion. For Q2, NOW beat analysts’ projections, reporting EPS of $2.37 per share vs. $2.05 per share as expected (a 15.81% surprise), and it reported revenue that won by a 0.98% margin. NOW also reported whopping year-over-year growth in key areas such as revenue (+22.72%), net income (+5,120%), EPS (+4,980%), and net profit margin (+4,159%). With an under-the-radar 10-day average volume of 960 thousand shares, NOW has a median price target of $648, with a high of $734 and a low of $575, which implies a potential for a 32.3% price upside. NOW has 36 buy ratings and 4 hold ratings. 

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Is SOFI’s Recent Pullback Really a Buying Opportunity?

By
Editorial Staff
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0

Amidst a recent pullback that has seen SoFi Technologies (SOFI) stock retracing a substantial portion of its earlier gains, a crucial question emerges – Is this dip a potential goldmine for savvy investors? This financial technology firm has encountered a drop of approximately 28% month-to-date following a robust rally. Analyst sentiment sits in neutral territory, neither overly bullish nor bearish. With these factors in mind, let’s delve into the dynamics surrounding SOFI stock.

The Factors at Play

SoFi has been riding the wave of personal loan originations and solid revenue growth, propelling its stock forward. The company’s Q2 performance exceeded expectations, prompting a positive adjustment to its revenue and EBITDA outlook for the entire year. Of note, the expansion of SoFi’s high-quality deposit base remains noteworthy. With $12.7 billion in deposits at the end of the quarter, reflecting a substantial increase, and over 90% of consumer deposits coming from reliable direct deposit members, the firm’s foundation seems robust. Moreover, a notable 98% of its deposits are insured.

Amid this strong foundation, the trajectory of personal loans could further fuel SoFi’s growth. A 51% rise in personal loan originations is an encouraging sign. Additionally, home loan originations almost tripling in the second quarter implies potential recovery in the upcoming periods.

Assuredly, SoFi stands to benefit from several growth drivers, including loan originations, a dependable deposit base, and tech platform fees. However, despite the recent correction, the stock’s noteworthy appreciation year-to-date implies that many of these strengths may already be reflected in the valuation. Furthermore, the expectation of a growth slowdown due to challenging year-over-year comparisons could limit potential upside.

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Analyst Insights and Conclusion

As per TipRanks, a consensus of Hold ratings prevails for SOFI stock, encompassing seven Buys, seven Holds, and four Sells. Yet, despite this cautious outlook, the average target price of $9.74 presents a promising 17.49% upside potential from its current standing.

In summation, SoFi’s growth potential, supported by its personal loan business and technology platform fees, remains intact. Factors such as recovering home loan originations, an expanding high-quality deposit base, and a robust balance sheet contribute to its bullish case. However, the stock’s valuation has surged significantly this year, warranting prudence. With analysts advocating for a Hold stance, investors might do well to await a more opportune entry point.

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