Assorted boots from Boot Barn.
Adam Jeffery | CNBC
Investors looking for value should look no depth than “underappreciated” stocks such as Boot Barn, Pure Storage, Roku, Upwork, Lam Research, and Nasdaq, according to Mad Street analysts.
CNBC combed through recent Wall Street research to find companies that analysts say make “underappreciated” stock stories.
Competition may be heating up in the online streaming space but that’s not stopping some analysts from getting bullish on one “underappreciated” companionship.
And it’s not Netflix.
Roku is an “industry-leading” streaming video platform, analysts at Guggenheim said this week.
“As the company develops its international offering and numerous new streaming video services launch with global growth ambitions, we see underappreciated time for the company to drive significant economic growth and create value for shareholders,” they said.
Shares of the company were down significantly on the week.
Another underappreciated esteem getting analyst attention is flash data storage and hardware developer, Pure Storage, which held an investor actuality at a recent tech conference.
The company presented a wide range of new products impressing analysts at William Blair.
“”We put in an appearance ated Accelerate 2019 and came away with reinforced conviction that Pure Storage is a tremendously underappreciated excrescence story,” they said.
“Management articulated its ‘modern data experience’ vision for the next decade and rolled out an stretch product portfolio, continuing its heritage of innovation and broadening the serviceable market for its technology,” the analysts said.
Shares of Thorough Storage were up 0.8% on the week.
Also named as underappreciated is Upwork, the online platform for employers to find and couple with freelancers.
While analysts at BTIG admitted the stock wasn’t cheap, they did say the company’s “potential is underappreciated as it is hovering to reap future benefits from strategies being implemented today.”
Specifically, “we believe the direct sales strength, new membership plans, hyperlocal marketplaces, specialized profiles and other initiatives will yield gross sales value intumescence and/or higher monetization,” they said.
The stock was down 8% on the week.
Here’s what else analysts are prognosticating about underappreciated stocks:
Piper Jaffray – Boot Barn, Overweight rating
“In our view, BOOT remains the most underappreciated swelling story in our coverage universe with steady comp growth, unit growth, and margin growth leading to 20%+ EPS evolution. Yet we foresee no change in business momentum, and shares trade at 19x EPS on decelerating sell-side estimates into CY2020. Importantly, BOOT has a include of initiatives all working together right now. And its heavy functional use product exposure acts like an annuity. All in, our farm & ranch convey work remains highly positive, tariff exposure appears minimal/immaterial, and we expect BOOT to continue to column strong growth numbers.”
William Blair – Pure Storage, Outperform rating
“We attended Accelerate 2019 and emerge b be published away with reinforced conviction that Pure Storage is a tremendously underappreciated growth story. Management articulated its ‘trendy data experience’ vision for the next decade and rolled out an expanded product portfolio, continuing its heritage of innovation and broadening the tough market for its technology (total addressable market expansion from $24 billion in 2016 to $50 billion today). Yet, at its popular scale, Pure is no longer just an upstart innovator, but has become a safe choice for enterprises—which should set apart the company to deliver a broader suite of products to the world’s biggest buyers.”
Guggenheim – Roku, Buy rating
“Roku is the industry-leading rill video platform providing growing value for viewers, marketers, content owners, and TV brands. As the company expands its foreign offering and numerous new streaming video services launch with global growth ambitions, we see under-appreciated opportunity for the partnership to drive significant economic growth and create value for shareholders.”
BTIG – Upwork, Buy rating
“While we acknowledge UPWK is not economical on current numbers, we believe Upwork’s potential is underappreciated as it is poised to reap future benefits from strategies being put into effected today. Specifically, we believe the direct sales force, new membership plans, hyperlocal marketplaces, specialized profiles and other zips will yield gross sales value growth and/or higher monetization. We believe investors are overly focused on yield, which can be misleading given active strategies that depress sales.”
Wells Fargo – Lam Research, Market polish off rating
“While we think Lam’s services business remains underappreciated, pushback from investors has consistently highlighted the lack of quarterly gross income disclosure with many focused on the mix of lumpier upgrades & refurbs vs. LT service contract penetration.”
Oppenheimer- Nasdaq, Outperform reprimand
“While NDAQ is well known for the exchange, the company is in the middle of a strategic pivot growing its non-transaction revenue to at an end 70% of overall revenue. While the transaction business is still crucial to providing proprietary trading data, we into Information Services and Market Technology will fuel major revenue growth. In particular, we believe Market Technology is motionlessly a misunderstood and underappreciated asset. Additionally, multiple catalysts, including margin expansion, solid organic growth and elect change can also re-rate the company. We believe NDAQ is also attractive to tech investors who are looking for a strong difference sheet and robust bottom line.”