Investing in stocks is riskier. But, such risks are definitely worth the reward for investors who own stocks that have the potential to report impressive growth and generate huge returns over a period of time.
Listed below are some of our stock picks that have turned into multibaggers in less than 200 trading days.
We profiled Caleres Inc. (CAL) on September 2, 2020 at an opening price of $9.08. The stock touched $27.72 in intraday on May 18, 2021, representing a gain of 205.3%. The stock further traded to a new 52-week high of $29.36 on June 25, 2021, and that represents an impressive gain of over 223% from our published price.
The company last reported its Q1 results on May 28, 2021. The footwear wholesaler and retailer reported a turnaround to profit for the first quarter, with 60.8% growth in net sales. The company generated $70.4 million in cash from operations and ended the first quarter with $98.2 million of cash on hand.
What’s In Store For Q2?
The company expects Q2 adjusted earnings in a range of $0.50 – $0.55 per share on net sales between $625 million and $650 million. Analysts polled by Thomson Reuters currently expect the company to report earnings of $0.52 per share on net sales of $638.85 million for the quarter. Analysts’ estimates typically exclude certain special items.
“We remain positive about our outlook and expect continued strength at Famous Footwear to be combined with an improving performance in our Brand Portfolio as we progress through the year,” said Diane Sullivan, Chairman and Chief Executive Officer.
Firearm maker Smith & Wesson Brands Inc. (SWBI) recorded a new 52-week high of $39.61 on July 1, 2021, before closing at $35.40. We alerted our ‘Short-Term Investor’ subscribers to SWBI in December 2020 when it was trading around $14. Since our alert, the stock gained 167.5%.
On June 18, the company reported Q4 net income of $89.2 million, or $1.70 per share, compared with $20.9 million, or $0.38 per share last year. On an adjusted basis, earnings of $1.71 per share beat the average estimate of analysts polled by Thomson Reuters at $1.02 per share. Net sales for the quarter increased 67.3% to $322.9 million from $193.0 million for the comparable quarter last year on strong product demand.
“Strong consumer preference for our products combined with our ability to rapidly react to the increased demand has placed us in a clear leadership position as we enter into our first full fiscal year as a standalone pure-play firearms company,” said Mark Smith, President and Chief Executive Officer.
Fiverr International Inc. (FVRR) has returned 138.8% since our alert on October 28, 2020. We published FVRR when it was trading around $140. The stock hit an all-time high of $336.00 on February 16, 2021.
In The Cards For Q2, FY21
For the second quarter, the Tel Aviv, Israel-based online marketplace operator projects revenue in the range of $73.0 million – $75.0 million, an year-over-year growth of 55% – 59%. Eight Wall Street analysts currently estimate revenue of $74.82 million, an year-over-year sales growth of 58.80% for the quarter.
Fiverr now sees fiscal 2021 revenue in the range of $302 million – $308 million, an year-over-year growth of 59% – 63%. Analysts currently look for revenue of $307.78 million an year-over-year sales growth of 62.40% for the fiscal year 2021. Previously, the company expected 2021 revenue between $277 million and $284 million, an year-over-year growth of 46% – 50%.
Cloud-based artificial intelligence lending platform provider Upstart Holdings Inc. (UPST) featured on our ‘Short-Term Investor’ on March 18, 2021 at an opening price of $83.54. The stock reached a 52-week high of $191.89 on June 4, 2021, and that represents a gain of 129.7% from our published price.
Q2, FY21 Guidance
For the second quarter of 2021, Upstart expects revenue of $150 million – $160 million, with net income of $8 million – $12 million, and adjusted net income of $21 million – $25 million. Four Wall Street analysts currently have a consensus revenue estimate of $157.47 million for the quarter.
For fiscal 2021, Upstart now expects revenue to be about $600 million, compared to the prior guidance of $500 million. Contribution Margin is now expected to be about 42% versus the prior guidance of 41%. Analysts currently estimate revenue of $601.31 million for fiscal 2021.
On December 16, 2020, Upstart Holdings announced the pricing of its initial public offering of its common stock at a price to the public of $20.00 per share, which included 9,000,000 shares offered and sold by Upstart, 3,015,690 shares offered and sold by the selling stockholders and the full exercise of the underwriters’ option to purchase 1,802,353 shares from certain selling stockholders.
The shares began trading on the Nasdaq Global Select Market on December 16, 2020. On December 19, 2020, the company announced the closing of the offering.
Another stock pick worth mentioning is Stitch Fix Inc. (SFIX). It has returned over 125% in just 32 trading days. We alerted this stock to our subscribers on December 8, 2020 at a price of $50.40. The stock touched a 52-week high of $113.76 on January 27, 2021, representing a gain of 125.7% from our published price.
Q4, FY21 Guidance
The company sees Q4 net revenue between $540 million and $550 million, an year-over-year growth of 21.8% – 24.0%, with adjusted EBITDA in the range of $15 million – $20 million. Fifteen Wall Street analysts currently have a consensus revenue estimate of $547.89 million for the quarter.
Stitch Fix hiked its fiscal 2021 revenue guidance range to $2.07 billion – $2.08 billion, an year-over-year growth of 20.9% – 21.5%, from the previously communicated range of $2.02 billion – $2.05 billion, representing a growth of 18% – 20% year-over-year. The consensus estimate is for $2.08 billion for 2021.
Global materials company Trinseo S.A. (TSE) was trading around $33.97 when we alerted our premium subscribers on October 20, 2020. The stock reached a 52-week high of $76.49 on March 18, 2021, representing a gain of 125.2% from our published price.
What’s In Store?
For fiscal 2021, the company sees net income of $303 million – $343 million, and adjusted EBITDA of $625 million – $675 million, excluding any impact from the acquisition of Arkema’s PMMA business and the potential divestiture of the Synthetic Rubber segment.
Frank Bozich, President and Chief Executive Officer of Trinseo, said, “…we have increased our full-year guidance, which reflects a lower but still very strong second half of the year primarily due to more normalized supply conditions.”
Last month, the company announced a definitive agreement to sell its synthetic rubber business based in Schkopau, Germany to Synthos S.A. and its affiliates for an enterprise value of about $491 million, comprised of $449.4 million of cash and the assumption of about $41.6 million of pension liabilities. The expected net cash proceeds are about $400 million after transaction-related costs and taxes.
Our alert on Foot Locker Inc. (FL) was published on August 21, 2020 when the stock was trading around $28.86. The stock touched an intra-day high of $64.82 on May 10, 2021, representing a gain of 124.6% from our published price. FL further rose and reached a new 52-week high of $66.71 on May 18, 2021, and that represents a gain of 131.15% from our published price.
As recently as on May 21, the athletic footwear retailer reported Q1 net income of $202 million, or $1.93 per share, versus a loss of $110 million, or $1.06 per share, last year. Adjusted earnings were $1.96 per share compared to a loss of $0.67 per share last year. Total sales surged 83.1% to $2.153 billion from $1.176 billion generated a year ago. Analysts estimated earnings of $1.09 per share on revenue of $1.88 billion. Q1 comparable-store sales increased 80.3%.
Foot Locker said it has decided to convert about one third of its Footaction stores into other existing banner concepts this year, and will close most of the remaining footaction stores as leases expire over the next two years.
Hancock Whitney Corp. (HWC) featured on our ‘Short-Term Investor’ on October 21, 2020 at an opening price of $23.00. The stock touched a 52-week high of $50.69 on May 18, 2021, representing a gain of 120.4% from our published price.
The financial services company is slated to release its Q2 results on Tuesday, July 20, 2021 after the market closes. Wall Street analysts look for earnings of $1.11 per share and revenue of $318.49 million for the quarter.
September 10, 2020, we identified Lakeland Industries Inc. (LAKE), when the industrial protective clothing maker reported stellar Q2 results, buoyed by the increased demand for its products relating to COVID-19.
The stock price was $21.76 on September 10, 2020 – the time of publication. LAKE rose to a 52-week high of $47.95 on February 9, 2021, marking a gain of 120.4%.
Last month, the company reported Q1 net income of $4.6 million or $0.57 per share compared to $8.6 million or $1.07 per share last year. Net sales totaled $34.1 million versus $45.6 million a year ago. As of April 30, 2021, Lakeland had cash and cash equivalents of about $60.3 million, up from $52.6 million at January 31, 2021. The company’s $12.5 million revolving credit facility with an upsizing feature for an additional $5 million had no borrowings as of April 30, 2021, as the company continues to have no debt.
Our alert on Mohawk Industries Inc. (MHK) was published on October 30, 2020 when it was trading around $105.92. The stock touched a new 52-week high of $231.80 on May 10, 2021, representing a gain of about 118.8% from our published price.
The company last reported its Q1 results on April 29, with net income of $$236.8 million or $3.36 per share, up from $110.5 million or $1.54 per share last year. Adjusted earnings were $3.49 per share, up from $1.66 per share last year. Sales for the quarter were $2.67 billion, up from $2.29 billion last year. Analysts polled by Thomson Reuters estimated earnings of $2.81 per share on revenues of $2.61 billion.
We profiled American Outdoor Brands Inc. (AOUT) on September 4, 2020 at a price of $15.50. The stock touched $33.50 in intraday on May 27, 2021, marking a gain of 116.1%. The stock further traded to a new 52-week high of $36.62 on July 1, 2021, and that represents a gain of over 136% from our published price.
The company is due to release its Q4 financial results on Thursday, July 15, 2021, after the close of the market. Five Wall Street analysts currently estimate earnings of $0.23 per share and revenue of $65.03 million for the quarter.
For fiscal 2021, the company now expects GAAP earnings of $1.07 – $1.14 per share, and non-GAAP earnings in the range of $2.08 – $2.15 per share on net sales of $268 million – $272 million. Five Wall Street analysts currently estimate the company to report earnings of $2.19 per share on revenue of $277.24 million for the year 2021.
Previously, the company expected GAAP earnings of $0.52 – $0.70 per share, non-GAAP earnings of $1.49 – $1.67 per share, with net sales of $235 million – $245 million.
Lam Research Corp. (LRCX) featured on our ‘Short-Term Investor’ on September 23, 2020 when it was trading around $326.04. The stock touched a 52-week high of $673.80 on June 1, 2021, representing a gain of 106.7% from our published price.
As recently as on July 1, the company said it anticipates operating 100% on renewable energy by 2030 and becoming carbon net zero by 2050 to contribute to a more sustainable world.
3D Systems Corp. (DDD) has returned over 104% in just 31 trading days. We published DDD on May 11, 2021 when it was trading around $20.28. The stock rose to $41.48 in intraday on June 25, 2021 marking a gain of 104.5% from our published price.
Most recently, 3D Systems joined hands with CollPlant Biotechnologies (CLGN) to develop a 3D bioprinted regenerative soft tissue that will mimic the patient’s anatomy to help the body heal better. The company also said that since this procedure doesn’t require any animal and human resources, it will be safer and more sustainable.
The company, on May 11, reported Q1 net income of $45.2 million or $0.36 per share compared to a loss of $18.9 million or $0.17 per share last year. Non-GAAP net income amounted to $20.9 million or $0.17 per share versus a loss of $4.5 million or $0.04 per share incurred a year ago.
Revenue for the quarter increased 7.7% to $146.1 million from $135.6 million generated in the same period of last year, reflecting strong performance in Healthcare and a continued stabilization of Industrial as economies around the world reopen from pandemic-related shutdowns.
On average, 9 analysts polled by Thomson Reuters expected earnings of $0.02 per share on revenue of $136.63 million for the quarter. Analysts’ estimate typically exclude certain special items.
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