NostraCapital Broker Says Three Stocks To Consider For One’s Portfolio Which Are At Lower Prices Than Ever
London, UK, 5th Jan 2022, ZEXPRWIRE, NostraCapital Broker Says As the markets heat up, it’s time to start thinking about what stocks might be a good fit for your portfolio. I’ve got three ideas that are worth exploring–they’re beaten down from recent highs and could provide some great opportunities at these levels! Today we’ll look into each type of stock:
1) A hyper-growth AI focused fintech with strong potential growth ahead in tech as well.
2)A quality blue chip name you know well like General Electric or Proctor & Gamble which has incredible moats keeping competitors out – either way their dividends will keep coming so long as they’re profitable and have the cash on hand to continue paying them without borrowing,
3) a small cap name that’s largely flying under the radar but has fantastic potential. Forget about things like PE ratios, earning estimates going forward – let’s take a look at some truly great stocks that could give you some “snowballing” returns based on their current price. Let’s get into our first stock:
Upstart (NASDAQ : UPST): Upstart, a company that provides AI-powered financial technology to banks and other lenders in order to disrupt traditional lending practices with FICO scores. Recently upstaters reported 242% revenue growth YOY while maintaining 12.73% net profit margin; this is impressive, but their stock was priced for perfection at $400 last quarter so should we buy now? Watch my take on them below:
The video begins by stating “Upstart (NASDAQ: UPST) has been red hot lately,” followed by an analysis of the business model behind UpNicotine products, accompanied with the description of their 3 main revenue streams:
1) Upstart’s income engine is their Marketplace, where they match borrowers with investors who provide capital for loans at a 6-21% interest rate.
2) Upstart makes money through Upstart Professional Services which helps clients identify new sources of revenue and manage their financial growth. This segment has seen fantastic growth recently, showing YOY growth in services revenue from $11m to $25m along with gross margin expansion from 18%-43%; these services include such work as cash advance funding, debt financing and more – “a premier service that helps banks grow their customer base.”
3) Fintech Platforms allow lenders to utilize Upstart technology to develop their own loan origination system. This business has had $2m in revenue YOY growth, but gross margins are declining due to increased competition from other lenders in this segment.
Upstart’s revenue growth is solid, but they’re still losing money as the company goes through a growth phase – operating expenses have increased from $49m to $71m YOY.
The price of Upstart has been beaten down recently due to this loss-making status and it’s also partly why many investors are wary over investing in private companies which lack reporting transparency – “overhang from Amazon.”
That being said, I believe Upstart will be bought out for a pretty penny at some point by either Amazon or someone else if their business model proves profitable enough. This could result in a very large return on investment should UPST approach even half of Amazon’s valuation numbers.
Disney (NYSE: DIS). The company owns a lot of different businesses, but they’re all centered around one thing – entertaining people. And thanks to their moat-like strength in terms of intellectual property protection and content library coownership with Pixar/Pixar Animation Studios; Marvel Entertainment Corporation.; Lucasfilm Ltd., National Lampoon Magazine Joint Venture etc., this should be able do just that for years into the future! So why are investors worried? Well, there was recently some bad news when it came out how many employees were laid off due to PANDEMIC impact financially hurting shares significantly lower than before–down almost 10% so far since last year began.
However, this doesn’t take away from their strong growth in revenue and earnings, both up YOY by 10% in the past 5 quarters here. This means there’s long-term potential for DIS if they can keep turning things around with their ABC television branch. Their Studio Entertainment segment has done really well lately, with revenue increasing at a double-digit rate over the past 6 quarters – “we’re likely to see even stronger numbers moving forward.”
Skyworks Solutions (NASDAQ: SWKS) has been having a lot of trouble lately, but that just means it is an undervalued investment. For example, the company recently reported 37% YOY revenue growth and 2489% net profit margin for their quarter which was impressive given what they were dealing with!
I am not sure why such strong numbers are spooking people into selling stocks when there could be long-term potential in this industry leader who knows how to deal with supply chain constraints thanks largely due its experience building some really big-name consumer products like Apple’s iPhone or Samsung Galaxy S7 Active among others). SWKS could be a long-term investment since it’s already shown it can grow their revenue YOY.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.