Stocks were looking for a modest bounce this morning after last week’s losses. The big question on everyone’s mind is where to position themselves in regards to growth versus value. The iShares Russell 1K Growth ETF (IWF) is on a five week winning streak, it’s longest since last August. Meanwhile, the iShares Russel 1K value ETF (IWD) fell more than 4% last week, which was its worst weekly performance since last October.
The unwind of the value and cyclical stock outperformance seems to have been accelerated by the interpretation of the Fed’s message on inflation last week, but value is still outperforming growth year-to-date.
The markets are reflecting an economy that has seen some of the most rapid shifts in history. Which seem to support the case for value in 2021 with huge turning points for the economy on the horizon. But many analysts say that ultimately, we are heading back to a growth market eventually, when markets are pricing in a complete recovery.
Our team recommends considering promising choices from both sides of the tracks. So today we’re giving you 2-for-1!
In today’s trade alert we’re giving you two picks. One company we’re watching for its growth potential and one that’s currently trading at an extreme value. Read on to find out who we’re watching.
Our growth pick for today has carved a niche for itself in a highly competitive industry by offering unique services and solutions. Fiverr International (FVRR) is a bet on the burgeoning gig economy. The company operates an online freelancing platform that connects buyers and sellers. Fiverr’s platform allows freelancers to connect with buyers in a variety of verticals, such as graphic designing, digital marketing, translation, legal and more.
FVRR recently expanded its service to Latin American countries, including Brazil and Mexico. The company has also launched Fiverr Business, which is a subscription-based service that helps users manage and collaborate with teams of freelancers.
Fiverr share price gained almost 700% in 2020, but the stock has pulled back nearly 30% from it’s mid-February peak. Of nine analysts polled, 7 rate the stock a Buy and two call it a Hold. There are no Sell ratings for FVRR stock.
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Moving on to our value pick. Mid-cap Camping World Holdings (CWH) is America’s largest retailer of new and used RVs and related products and services. Its brands consist of Camping World and Good Sams. The company is committed to building long-term value for customers and shareholders through its offering of a unique and comprehensive array of RV products and services. CWH operates through a national network of dealerships, service centers and customer support centers along with the industry’s most extensive online presence.
The company has paid a total of $0.92 per share in the last 12 months. Due to conservative management, the trailing 2.4% yield has been well covered by both profits and cash flow. CWH has a low payout ratio of just 7.4%, which suggests a broad safety net against future cuts. In fact, the company paid out just 1.9% of its free cash flow last year, which means their payout has plenty of room for growth.
The current consensus among 9 polled analysts is to Buy CWH stock. The 8 analysts offering 12-month price forecasts have a median target of $58, which represents a 58.25% increase from its current price.
CWH earnings are forecast to grow 25.29% per year for the next 3 years. What’s more, the current price to earnings ratio for CWH is just 7.8x. When compared to the US Specialty Retail industry average of 13.3x, the stock looks like an extreme value at its current price.
Where to invest $1,000 right now...
Before you consider buying Fiverr, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Fiverr.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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