“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” – Warren Buffet
With the current economy being so uncertain, there is no doubt that some high-potential stocks are trading at values way below their true value. The good thing for you? We have taken the time to put together a list of our favorite stocks trading at a discounted price.
We provide the fundamental and technical analysis for you, entering option contracts or buying into the stock is STRICTLY up to you.
This is not professional advice from a financial broker – Please keep this in mind…
Block – $SQ
Company Overview:
Along with its subsidiaries, Block/Square is endlessly creating tools that enable sellers to accept more forms of payments and provides reporting and analytics that helps businesses and individuals track the financial progress of their company.
Hardware products are also a major aspect of the company allowing for contactless and chip reading technologies that accept Europay, MasterCard, and Visa.
Outside of the physical hardware, Block/Square also provides CashApp, which enables users to send, spend, and store money which has gained major traction with the implementation of cryptocurrency usage within the app.
The Opportunity?
- In 2021, SQ’s revenue was $17.661 Billion. This represents an 85.95% YOY increase from 2020’s total revenue.
- Block has created many new revenue streams relentlessly since going public, and its TAM continues to expand with new products and services such as Tidal and Spiral.
- The average 1-year stock price forecast for Block is set at $150.04, which indicates a possible increase from current levels of 108.77%. The lowest target is $70.7 target and the highest is set at $325.50.
- Block’s latest 1-year P/E ratio is -543.6x. Block’s P/E ratio for fiscal years ending December 2017 to 2021 averaged -254.2x.
- 5-Year Average Revenue Growth: 58.5%
CrowdStrike – $CRWD
Company Overview
Cloud protection is the technology of the future and CrowdStrike provides cloud-delivered protection across endpoints and cloud workloads, data, and identity.
CrowdStrike also offers threat intelligence, IT operations management, threat hunting, managed security services, log management, and Zero Trust identity protection.
In the world of ever-growing technology, it would be impossible to see CrowdStrike fade away anytime soon.
The Opportunity?
- Total revenue was $874.4 Million, an 82% increase compared to $481.4 Million in 2020.
- The company has a highly scalable business model despite posting losses recently. CrowdStrike is forgoing profits in the short term by spending much of its revenue on sales and marketing.
- The average 1-year stock price forecast for CrowdStrike is $244.14, which predicts an increase of nearly 45%. The lowest target is $202 and the highest target is set at $367.50.
- As the P/E ratio has risen, CrowdStrike still boasts an impressive P/E ratio of -213.43 compared to -319.82 during the same time period last year.
- 5-Year Average Revenue Growth: 100.4%
Sea Group – $SE
Company Overview
Sea Limited is still a $68 billion dollar company and its mission statement is to better the lives of consumers and small businesses with technology.
All three of the companies within Sea Limited are expanding rapidly. The company’s financials top-line growth story has shown growth and has been good over the last three years. The company’s top line has grown at over a 100% per year at the same time gross margins haven’t been what we’d hoped for currently. They sit at 39% but that’s because right now shopee and sea money aren’t money-making ventures. The top line has looked great the bottom line has not so much.
Also, analysts expect Sea’s revenue to grow about 37% in both 2022 and 2023. Those are impressive growth rates for a stock that trades at five times this year’s sales.
The Opportunity?
- Total GAAP revenue for 2021 was $10 Billion which is up 127.5% YOY.
- Sea Limited owns Shopee and Garena. It is currently one of the top e-commerce platforms in Southeast Asia and is now gaining traction in Latin America as well.
- The average 1-year stock price forecast for Sea Limited is $174.41, which indicates a possible 128.64% growth. The lowest target is $86.86 and the highest is set at $420.
- Sea Holdings’ P/E tells us that market participants think the company will perform better than its industry peers, going forward. Shareholders are clearly optimistic. Sea’s latest 1-year P/E ratio is 47.6x. Sea’s P/E ratio for fiscal years ending December 2017 to 2021 averaged 13.5x.
- 5-Year Average Revenue Growth: 88.7%
Shopify – $SHOP
Company Overview
Shopify has nearly shed 80% from the ATH set in November. It has been a painful six-month span for investors.
However, the most interesting feat is that Shopify is continuing to improve its business with each passing week. In April, Shopify announced a partnership with Strike that would allow merchants to accept Bitcoin payments using the Lightning Network.
Shopify has also given hints as to its interest in acquiring Deliverr in a $2 Billion deal. The acquisition would propel Shopify to use machine learning in an attempt to optimize its fulfillment services to the absolute max.
The Opportunity?
- Total revenue for the full year of 2021 was $4.61 Billion which is an increase of over 57% compared to 2020.
- The company has a vision for the future and makes targeted investments in core products as well as in fulfillment center networks that allow merchants to offer customers speedy shipping times.
- The average 1-year stock price forecast for Shopify stock is currently $609.98, which indicates a possible increase of 75.07%. The lowest target is $378.75 and the highest is $2,090.
- Shopify’s latest 1-year P/E ratio is 241.7x. Shopify’s P/E ratio for fiscal years ending December 2017 to 2021 averaged -11.2x.
- 5-Year Average Revenue Growth: 69.6%
