Fed Expands Main Street Loan Program with Lower Minimum Amount and Extended Duration
COVID is receding and markets are rising; these are the two trends that are most worrying investors right now. It is quite reasonable that they go together. As the economy reopens, money will start to flow faster – and find its way into the stock market. With improving economic conditions, investors are looking for the best returns in an expansionary environment. A natural place for them: the small cap market. While the big names grab the headlines, small cap stocks offer the highest returns. With that in mind, we used the TipRanks database to research three stocks that meet a growth profile under current conditions. We found three Strong Buy small-cap stocks – valued at less than $ 700 million – that trade below $ 10. Not to mention a substantial upside potential on the table. Shift Technologies (SFT) Some of the changes we have seen during the pandemic year include the strong shift to online business and e-commerce. Shift Technologies introduced e-commerce to the used car market, with a hassle-free, end-to-end sales model designed to streamline the customer experience. Shift provides digital solutions that connect car owners and buyers, making it easy to find a car, test it, and buy it. Currently, Shift operates in California, Oregon, Washington State, and Texas, primarily in urban centers. Like many small tech-focused companies, Shift went public last year through a PSPC merger. In this case, the special acquisition company (SPAC) was Insurance Acquisition Corporation. The merger was completed in October, in a transaction valued between $ 340 million and $ 380 million. The symbol SFT started trading on the NASDAQ on October 15th. Since then, the stock has slipped 35%, leaving the company with a market cap of $ 602 million. Despite the decline in the share’s value following the completion of the merger, Shift still had some $ 300 million of newly available capital to conduct its operations. The company has a lot of leeway, as the used car market is worth more than $ 840 billion a year. In the company’s fourth quarter report, Shift is the first as a publicly traded entity, it reported strong year-over-year growth in revenue and units sold. For the quarter, revenue reached $ 73.4 million, a company record and 168% higher than the previous year. Shift sold 4,666 units in the quarter, an increase of 147% year-over-year. For the full year, revenue of $ 195.7 million represented an 18% year-over-year gain, while total units sold reached 13,135, also up 18% . Sales figures shifted strongly to e-commerce, which accounted for 9,497 units of total sales for the year. Shift caught the attention of 5-star analyst Michael Ward of Benchmark, who sees a higher level of conviction for growth in 2021 and 2022. “[In] In our opinion, the positive trends in revenue per unit and cost performance in early 2021 put the company on a positive path … and given the recent decline in inventory, consider it a favorable time to buy. The US used vehicle market is a $ 1 trillion revenue opportunity, prices have increased double digits since mid-2020 and given price / inventory trends in the new vehicle market, we expect the positive pricing environment to continue in the second. half of 2021, ”Ward said. In keeping with his bullish outlook, Ward is giving Shift a buy price, and his price target of $ 13 suggests a year-over-year increase of ~ 74%. (To see Ward’s track record, click here) Wall Street tends to agree with Ward’s reliance on the auto e-commerce company, given TipRanks analysis shows SFT to be a strong buy. SFT shares are selling for $ 7.45 each, and the average target of $ 13.50 indicates a possible rise of ~ 81% by the end of the year. (See SFT Market Analysis on TipRanks) Casper Sleep (CSPR) The next stock we’re looking at, Casper Sleep, is a $ 290 million bedding business. Specifically, the company sells mattresses, pillows, bed frames and bedding – household items that everyone needs. Casper operates primarily online, but also has showrooms. The New York-based company saw profits rise in 2H20, with fourth quarter revenue reaching the highest level the company has seen since its IPO in February 2020. That revenue stood at $ 150.3 million, up more than 18% year-over-year. . Annual revenue reached $ 497 million, a 13% year-over-year gain. Importantly, these gains came after the company announced in the third quarter of agreements with four major retailers to market Casper products. Ashley HomeStore, Denver Mattress, Mathis Brothers, and Sam’s Club all began marketing Casper Sleep bedding, helping the company to establish itself among the nation’s largest mattress retailers. Covering Casper for Piper Sandler, analyst Robert Friedner set an overweight (i.e. buy) rating and a price target of $ 12 which indicates a 70% margin of appreciation from the current price. of $ 7.04. (To see Friedner’s track record, click here) “CSPR rebounded from the contested Q3 which saw supply chain delays negatively impact sales. The company appears to be operating at a higher level by 2021 as it has diversified its supplier base and shows steady progress to post positive EBITDA in 2H 2021. With sales growth rebounding, new product rollouts in 2021 and easy comparisons to come, we think the sales multiple for CSPR… will continue to increase, “Friedner noted. In general, the rest of the street has an optimistic view of CSPR. The strong buy status of the share comes from 3 buys and 1 expectation issued in the previous three months. Upside potential lands at 63%, slightly below Friedner’s forecast. (See CSPR stock market analysis on TipRanks) Intellicheck Mobilisia (IDN) La proliferation of e-commerce – and the general increase in virtual interactions via the web – has spurred demand for technological security. Intellicheck operates in this area, offering a suite of SaaS products based on a platform of val idation of owner identity. Intellicheck has a high profile client base including 5 leading financial institutes and over 50 law enforcement agencies. Intellicheck also has a strong presence in the retail industry, where its ID validation is used to authenticate customers’ photo ID documents. The pandemic – which has slammed physical retail – has been difficult for the company, but the economic reopening has seen its business expand. The company saw its record revenue – $ 3.12 million – in the first quarter of 2020, just before taking a heavy hit at the start of the coronavirus crisis. However, sales and revenues rebounded, and Intellicheck’s fourth-quarter revenue of $ 3.08 million was only 1.2% below that high – and up 6%. compared to 4Q19. The company’s SaaS revenue grew 18% year-over-year and 23% sequentially. More importantly, the company posted positive EPS in the fourth quarter, with earnings of 7 cents per share. This compares favorably to the breakeven result in the third quarter and the loss of 5 cents per share in the second quarter. These facts are the source of the optimistic view of the company by 5-star analyst Scott Buck. In his coverage for HC Wainwright, Buck sees Intellicheck in a strong position for long-term growth. “[As] several large states have started to ease COVID-19 restrictions and younger ones have been or can be vaccinated right now, we expect same-store analyzes to show improvement through the end of 2021 …. New implementations are expected to include additional retailers as well as more traditional financial service providers and potential new markets such as healthcare, real estate and standardized testing. While new customers are unlikely to have a significant impact on quarterly results, they will generate additional revenue over the next 12 months, ”Buck wrote. The analyst summed up, “With additional recruitments in sales, we believe the company will again be positioned to complete between 30 and 40 software implementations in 2021, generating significant revenue growth through 2022.” To that end Buck gives IDN a buy rating, and his price target of $ 18 implies a potential upside of 113% for the coming year. (To see Buck’s track record, click here) Overall, Intellicheck’s Strong Buy consensus rating is unanimous, based on 3 recent positive reviews. The stock has an average price target of $ 14.83, which suggests a 75% year-over-year increase to the current price of $ 8.45. (See IDN Stock Analysis on TipRanks) To find great ideas for small cap stocks at attractive valuations, visit the Best Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about TipRanks stocks. . Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.