2020 has brought a apparently unending string of twists and turns, and the uncertainty that is linked triggered an unparalleled duration of volatility for the stock market. There’s a good chance that more volatility is on the way you rich as we transfer to the year’s final quarter, but there are still investment opportunities on the table that could help make.
Glu Mobile (NASDAQ:GLUU) is a business that develops and publishes games for phones and tablets, and its stock could wind up being a winner that is big. The company’s share price has climbed roughly 26% across 2020’s trading, but shares trade down roughly 30% from their 52-week high.
Shares got hit with a sell-off that is steep the company published second-quarter results in August that brought an earnings miss and guidance for decelerating bookings growth. The report also arrived with disappointing news about the publisher’s upcoming release pipeline, with one title being delayed into next year and news that resources were being shifted away from another project that is in-development following underwhelming audience test numbers.
For the part that is many, the factors that spurred the recent sell-off seem like temporary setbacks. The business’s guidance for year-over-year bookings growth of 10% into the quarter that is current a big step down from the 79% enhance that the business posted in Q2, but it still indicates the business’s core franchises are keeping players engaged, and subsequent releases should spur a return to larger growth.
Glu has a market capitalization of $1.3 billion and trades at roughly 21 times this year’s anticipated earnings. The business has a stability that is strong to fund operations and pave the way for acquisitions in the near future, and just one brand new hit franchise could send sales and earnings soaring. With the gaming industry poised for long-term growth and some of the business’ strengths being underestimated, Glu stock is really a buy that is hot. 2020 has brought a apparently unending string of twists and turns.
Hanesbrands (NYSE:HBI) stock has posted performance that is solid 12 months thanks to continued momentum for its Champion brand clothing and an instant manufacturing pivot to produce face masks in response to the coronavirus. While the company might perhaps not immediately spring to mind when conversation turns to the topic of stocks that could make you rich, the business looks pretty solid and has underappreciated growth drivers that could deliver returns that are big shareholders.
Hanesbrands managed to help keep income flat in its June quarter despite widespread closures for brick-and-mortar operations which can be retail paid off consumer confidence, and profits per share actually climbed 12% 12 months over year in the period. The pivot to wear that is mask-and-protective in the time allowed the business to generate $752 million in sales for the category, and a 68% boost in online apparel sales helped offset some of the pressure from retail closures.
Hanesbrands stock has climbed roughly 4% across 2020’s trading despite unprecedented pressures, but it trades down roughly 37% over the past three years and looks cheap at present. The depressed valuation combined with a potential long-term development driver in the form of Champion provide the stock growth potential that is big. Champion has become a name that is hot athleisure fashion, and it looks to possess staying power thanks to continued popularity among millennial and Generation Z age demographics.
Eros STX Global
July india-based activity company Eros International merged with U.S.-based STX Entertainment to form Eros STX Group (NYSE:ESGC) at the end of. The organization seems pretty clear about moving ahead with streaming as its many important growth driver, and the merger has resulted in an improved library that is content. It should also put the business in better position to produce film and television programming that interests a audience that is global.
The stock has slid roughly 36% in 2020, due in part to pressures from the coronavirus pandemic and performance that is financial has fallen brief of expectations. Concerns about new share offerings and debt taken on to finance production that is content technology development have also pressured the business’s share price.
Eros STX now has market capitalization of roughly $380 million and is valued at about 0.6 times Eros and STX’s combined revenue of roughly $600 million year that is final. It is also valued at less than 0.4 times the $1 billion in sales that management expects to come up with in 2022.
The company features a catalog that is massive of and regional-language films (over 12,000 during the end of last quarter) that may help build its subscription video service in India and other territories. It’s already been expanding its distribution network and has recently created partnerships with companies Amazon that is including, and Dish Network. Eros STX will nevertheless have to prove that it can deliver hit content that is new drives subscriber and distribution growth, but the company’s low price-to-sales multiples and huge long-term growth potential in streaming suggest the stock could upload explosive gains if business makes progress on those fronts.
And in 2020… we could see an onslaught of new opportunities that are wealth-building would potentially dwarf any that came before them.
A business’s stock price is one of the many factors that go into determining its value — and a tiny price does not always mean a company that is small. Sometimes, big companies have actually little stock prices and vice versa, depending on just how many shares are trading in the market that is available.
But that doesn’t mean stock costs don’t matter. Many investors love small stocks because they generally have smaller market caps and more space to grow.
Here are three shares that are superb at under $10 a share. They were selected due to their small market caps, low top-line valuations, and the potential for massive growth that is long-term. The first pick is Celsius Holdings (NASDAQ:CELH), a fitness drink producer that is rapidly growing. One other two, Glu Cellphone (NASDAQ:GLUU) and DouYu Holdings (NASDAQ:DOYU), are bets on the video gaming industry that is coronavirus-resistant.
- Celsius Holdings
Celsius Holdings is a customer that is small-cap company that focuses on thermogenic calorie-burning beverages. The drink that is functional, which includes energy and enhanced drinks, is projected to cultivate at a compound yearly growth rate (CAGR) of 8.66% until 2024, which shows that Celsius is poised for long-lasting growth, together with company’s soaring sales reflect massive consumer interest in its products.
Celsius reported earnings that are first-quarter May 12, and the outcome were a slam dunk. Total revenue soared 94% from $14.49 million to $28.18 million while operating earnings went from a $502,047 loss to a $1.25 million gain. The organization’s European operations saw the most development that is impressive with product sales surging 183% from $3 million to $8.5 million into the quarter. 2020 has brought a apparently unending string of twists and turns.
Celsius’ rapid growth that is european due, in part, to your recent purchase of Func Food Group, a Finnish wellness company it bought in late 2019. The Func acquisition cost Celsius $15.1 million in cash and the assumption of $9.5 million in Func’s outstanding financial obligation, and it should assist the company penetrate the lucrative market that is european.
With a price-to-sales multiple of simply 6.8, Celsius Holdings trades at a valuation that is relatively low to other players in the industry like Monster Beverage, which trades at 8.7 times sales despite significantly slower revenue growth. Celsius looks undervalued at these rates, particularly when it can maintain its breakneck product sales growth in Europe. Investors shouldn’t let the business’s $8.6 million in bond-related liability scare them off because its $19 million in money gives it a balance sheet that is strong.
- Glu Mobile
The coronavirus pandemic has sent the economy as a tailspin, but gaming that is mobile like Glu Mobile are relatively unscathed. That’s because gaming is a way that is great people to keep themselves entertained amid lockdowns and shelter-in-place orders around the world. Glu Mobile has dramatically outperformed the market during these times that are difficult with shares rising 56.9% year up to now compared up to a 6.6% drop in the S&P 500, and it appears such as the rally is far from over.
Glu Mobile’s current market cap sits at around $1.43 billion in comparison to 2019 sales of $411.38 million. This gives it a price-to-sales multiple of 3.48, which screams undervaluation when considering the business’s steady, coronavirus-resistant growth.
Glu Mobile’s sales grew 12% from $366.56 million to $411.38 million from 2018 to 2019. Additionally the company didn’t miss a beat within the quarter that is first sales growing 12%, from $95.89 million to $107.27 million in spite of the coronavirus pandemic.
In the term that is near Glu Mobile faces challenges from slowing bookings growth in its Covet Fashion and Cooking Dash intellectual properties, that are beginning to see revenue flatline and decline. Nonetheless, over the term that is very long the business’s fast-growing assets like Design Home, Tap Sports Baseball, and Kim Kardashian Hollywood are set to create up for those declines. Glu Mobile also released two games that are new Disney Sorcerer’s Arena and Diner DASH Adventures, which already represent around 8% of first-quarter bookings and are growing rapidly.
- DouYu Holdings
The Chinese esports market is projected to grow at a CAGR of over 16% until 2025, and DouYu is a player that is dominant the industry with massive growth potential as the market expands. DouYu focuses on live game streaming and can be understood as a version that is Chinese of, an Amazon.com-owned company with a company model that is similar.
The business leverages a network that is big of who build relationships viewers and drive monetization through donations and subscriptions. It is a continuing business that depends on the standard of its streamers, which DouYu acknowledges. That’s why the ongoing company makes use of talent agencies to recruit streamers with favorable monetization traits and steers users toward newer games. The strategy seems to be paying off, aided by the platform’s average revenue per user (ARPU) increasing 23.7% percent year over year to 280 RMB ($39.14) in the quarter that is first.
DouYu reported revenue that is first-quarter of 53% from 1.49 billion RMB to 2.28 billion RMB ($321.1 million). And the company reports net earnings of 254.5 million RMB ($35.9 million) compared to 18.2 million RMB in the period that is prior-year.
With a market cap of just 2.5 times 2019 product sales, DouYu looks extremely undervalued. This may be because of suspicion toward Chinese equities — feelings that have become exacerbated by the Luckin Coffee accounting investigation, U.S. federal government threats to delist certain stocks that are Chinese and the geopolitical issues surrounding the coronavirus pandemic. But for investors who have the belly for Chinese equities, DouYu is a good high-risk/high-reward investment because of its low valuation and compelling growth that is top-line. 2020 has brought a apparently unending string of twists and turns.