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Best 4 Growth Stocks Valuation and Technicals To Buy?

4 Growth Stocks Valuation and Technicals

If you're looking for a few stocks with a relatively low valuation a reasonable technical analysis and the potential for 100% gains? You might like the stocks we're going to talk about in this article.

4 Growth Stocks Valuation and Technicals

Today I'm going to give you a snapshot of four different stocks from four different categories as well. Keep in mind this is just very brief information. Always do your own research and also keep in mind that these are some stocks that I have on my watch list for a potential swing trade. But as of right now I do not have any positions in these four stocks.

We're just going to jump right into it. And we're just going to start with the very first stock which is going to be the Beachbody which is currently trading under the ticker symbol BODY which was a  SPAC actually.

The SPAC was actually FRX, but right now Beachbody is trading under ticker symbol BODY.  So Beachbody currently could be seen as the Netflix of the fitness world. What they have is a subscription model, so that means they have recurring revenue and this company is. of course, very focused on health, and yeah especially in these times I believe a lot of people are focusing on their health.

Now we did definitely see a massive jump in users because of COVID. Because of the lockdowns a lot of people were sitting at home and they weren't able to go to the gym. So they were using Beachbody instead. Right now of course we are seeing the reopening happening. So a lot of people are going back to the gym and might not continue to use Beachbody in the end and simply will go back to these gyms but in my personal opinion. I do believe that a significant amount of people is going to continue using Beachbody instead.

Now if you've ever wanted a three-way, then this is definitely your chance. Because this is a three-way merger between not only  FRX and Beachbody but also between MYX Fitness.  MYX fitness has a beautiful bike, over which looks a little bit like the Peloton bike. You could say so it's definitely a competitor to  Peloton in that case. What I personally find very interesting is their model of their influencer model. Because they have live and on-demand content from fitness celebrities. And a few of these people are for example Shay Mitchell who has 32 million followers, Arnold Schwarzenegger who we all know has 21 million followers and Lebron James with 73 million followers. 

If we briefly check out the valuation of Beachbody, we can see that the current market cap of Beachbody. According to Yahoo Finance is about three billion dollars. So a market cap of three billion dollars and if we go back to the investor presentation of Beachbody we can see that in 2021 they expect to have 1.1 billion dollars in revenue more or less.

This is of course expected revenue, so we don't know for sure if this is going to happen. But let's say that they are going to have  1.1 billion dollars in revenue for this year 2021 so that means with a market cap of 3 billion and with a revenue of 1.1 billion. Then the price to sales ratio is around 3x which is definitely on the low end if you look at other companies out there and also if you look at the cash position of Beachbody they have a pretty solid cash position of around 500 million at this moment.  

If you look at Peloton which could be considered to be a competitor of Beachbody. If you look at the valuation of peloton we can see that the current market cap is a little bit more than 36  billion dollars. And revenue if you annualize their revenue from Q1 of this year, from the first quarter of this year then the total revenue for this year for 2021 would be more or less 5 billion. So that means that the price to sales ratio would be a little bit higher than seven about 7.2,  7.3 so that means that Peloton is almost 2.5 times as expensive compared to Beachbody. Also keep in mind that the market cap of the Beachbody is definitely lower compared to Peloton so I believe that the Peloton or sorry that the Beachbody, of course, has more room to grow in my opinion and a while ago I also did a video about FRX merging with the Beachbody.

This was back in March 2021  of course. I was talking a little bit about the fair price per share based on the valuation of Beachbody. and well if you want a little bit more information check out the article that I published back then. But I said that the fair price per share for the Beachbody was between $23 on the low end and $31 on the high end. Then let's look at the chart for Beachbody.

Now we can't do a lot of technical analysis on a chart that looks like this but does keep in mind something very important is that the redemption value is gone for now. The net asset value is gone. Usually, for SPACs, the net asset value is ten dollars per share because when it trades below ten dollars you can actually redeem your shares for ten dollars per share. Now since the merger has already been completed between FRX and Beachbody that means that this floor has been gone so the floor of ten dollars per share is basically gone and right now it can definitely go below that ten dollars per share so again as I've said we can really do that much technical analysis but based on the one hour chart I do think that if we close one-hour candlestick above $10 and 80 cents more or less then I do believe we're going to target a move to the upside.

The second company we're going to talk about today in this article is Redwirewhich is going to hopefully merge with a SPACthat's currently trading under the ticker symbolGNPK. Now keep in mind of course since that this is a SPAC. We don't know for sure if the merger is going to happen. For example, right now we see some issues with TPGY potentially merging with the EV box. We don't know for sure if that merger is going to happen so we also don't know for sure if GNPKis going to merge with Redwire but I do think so. In any case, Redwire is a combination of companies as we can see in this sheet so definitely keep that in mind.

Redwire is a company that develops and manufactures all kinds of stuff for space and they also do that for all kinds of different companies at the same time so in short, you could almost say that it almost looks a little bit like an ETF for space stocks and something that is very awesome about this company and something that is very difficult to find as well is that this company is already profitable.

We can see that in2020 they had 16 million dollars in free cash flow and in 2021 they also have to or they expect to have positive free cash flow well with a revenue of 163 million dollars they expect to have about 17 million in free cash flow this year and also the revenue is already pretty solid as I've mentioned 163 million is expected to be the revenue for 2021. That is going to scale up very likely in the next couple of years all the way up to potentially 1.4 billion dollars in revenue in 2025. According to the investor presentation, they're going to have a pro forma market cap of 675 million dollars based on $10 per share.

Right now the stock is trading at $10 and 50 cents per share so it's about five percent higher than that ten dollars per share so that also means that the pro forma market cap is five percent higher instead of 675 million it's about 705, 710 million more or less so if the market cap is 710 million and the revenue of 2021 is 163 million that means that the price to sales ratio for 2021 would be4.4 x.

I also did an article about this company a while ago back in April this year of the course and compared this a little bit with the other space companies out there and I was giving a valuation a fair price per share for GNPK for Redwire between somewhere of 30 dollars and 40 dollars per share. Some very brief technical analysis for GNPKright now.

Again keep in mind it is still a SPACso we do have that redemption value of ten dollars per share I was talking about earlier on in this article and that also means that that is a pretty significant support line.

As we can also see over here right now we are also creating higher highs so we have . We are creating a higher high compared to this high which is always good to see and if we take a look at there for example this is still moving to the upside and also the MACD had a fresh cross to the upside and is still increasingly going to the upside as well. Company number three is Opendoor. Opendoor course working in the real estate sector and here is a platform where you can buy, sell, trade, or finance your house.

Now Opendooris of course operating in a massive market. The real estate sector is of course massive. They say they have a superior consumer experience and they are also the market leader in what they do and are experiencing rapid growth at the same time. We can also see that with their current strategy their current playbook they are likely going to have a pretty solid growth ahead in the next couple of years next couple of decades potentially even.

With a four percent market share and 100 markets, they could have about 50 billion dollars in revenue at some point in the future. According to Yahoo Finance, Opendoor currently has a market cap of about 9.7 billion dollars and if we go to their shareholder letter of Q1 of this year first quarter of this year we can see that they have set747 million dollars in revenue in one quarter. So if you annualize that if you multiply that times four then you're going to arrive at revenue for the entire year of three billion dollars but do keep in mind there are huge differences between the quarters so we don't really know exactly what the revenue is going to be for 2021 and also keep in mind by the way that the current revenue inQ1 of 2021 is 40% lower than Q1 of last year. In any way, if you have a market cap of 9.7 billion dollars and you have revenue, an annualized revenue of 3 billion dollars then the price to sales ratio would be around 3.3 and also keep in mind that they have a pretty significant amount of cash on the side right now to stimulate a little bit more growth in their company.

Currently, they're sitting on 2.1 billion dollars in cash. If we then check out the charts for Opendoor we can see that we had been trading on top of a diagonal support line. Since basically the 13th of May we were above this diagonal trendline over here but it does look like last Friday we did close below that trendline.

We didn't have a lot of volumes though so I'm not entirely sure if this is a breakout to the downside or just a fake-out that is something we're going to find out of this week and if you look at the55 exponential moving average of this white line over here that has been used as resistance all the way through this downside.

We saw it being used as resistance over here, over here as well, over here too and over here too so it is very important a very important level. If we break above the 55 EMA then i would target a move to the upside. Let's also quickly look at the RSIand the MACD so the RSI shows some hidden bearish divergence, the RSI going below the EMA on the RSIand the EMA on the RSI is also trending a little bit downwards and if you then look at the MACD we can see that the MACD is still above the signal line but it could definitely go below that signal line in the next couple of trading days and then the last stock we're going to talk about today spermatic. This is trading under the ticker symbol IBM and Pubmatic are trading is operating in the world of digital advertising and they as we can see in the investor presentation have data centers all around the world and according to the investor presentation, we can also see that they are working for a lot of ad publishers which are companies like Microsoft, Quora the New York Times and WordPress.

Do keep in mind however that we have a very high amount of short interest for Pubmaticright now but also keep in mind that the price targets for Pubmatic are still above the current price of Pubmatic which is trading around $35 per share and according to this article over here the price targets range from like forty dollars per share all the way up to sixty-four dollars per share. Pubmatic currently has a market cap according to Yahoo Finance of 1.76 billion dollars and according to the investor presentation, we can see that in Q1 they had 43.6 million dollars in revenue. If you annualize that, if you do that times four then you're going to arrive at about174 a million dollars in revenue for the entire year so with a market cap again of about a 1.76billion dollars and an annualized revenue of 174million then the price to sales ratio becomes about 10.

Also, keep in mind by the way thatPubmatic currently has a positive net income this company is already profitable. In Q1 of2021 they had 4.9 million dollars in net income and if we look at the technical analysis forPubmatic trading under the ticker symbol PUBMwe can see that currently, we seem to be working on a reversal. We were definitely in a downtrend right over here all the way down to about like$27 per share but right now we are creating higher lows and higher highs at the same time so this was a higher low compared to this low and we are now hopefully working on a higher low compared to this low but we were also making a higher high compared to this high over here and this highway already higher compared to this high over here so that looks pretty solid so far.

We did run into some resistance over here. Some pretty strong resistance which was created by all these bottoms over here, all these supports over here. We can see support over here, over here. So that is definitely a significant level between $44-46 more or less. We were definitely rejected at that level and let's then also take a look at the indicators. The RSI is right now trading below the EMAand the EMA is curling back to the downside and if you look at the MACD right now the MACD is still above the signal line but it could definitely come down below that signal line in the next couple of trading days.

So there you go four stocks that could potentially be interesting for a swing trade or a longer term play. Now I'd love to know your opinion as well: which of these four is your personal favorite?

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