TWO GROWTH STOCK TO WATCH (FUNDAMENTALS) $CRSR $PS
Welcome to another idea by Jose Najarro Stocks, don't forget to check the signature to learn more about me.
Make sure to follow for more content! Today I am looking at two stocks one in the gaming industry the other is in online education, seeing insane revenue growth or expecting strong growth shortly. This thread will be a quick read with some information on their fundamentals.
The first stock is $CRSR
The second stock is $PS
Market Cap ~$2.62B
YTD ~6%
Currently ~20% Down from ATH
Business: Pluralsight, Inc. is an American publicly held online education company that offers a variety of video training courses for software developers, IT administrators, and creative professionals through its website... Online Education is something I believe will continue to boom.
Recent Earnings Q3 Non-GAAP EPS of $0.00; GAAP EPS of -$0.24 (Not Profitable yet)
Revenue: Revenue of $99.47M (+20.4% Y/Y)
Currently just hit +CFO but not expected to be profitable in GAAP Earnings anytime soon.
Revenue growth is expected to be 15.7.0% annually on average for the next 3-5 years. I consider anything with an annual average growth of 15% to be high growth.
Decent Balance sheet, almost a 1 to 1 ratio of Debt to Cash. I would have wished for a strong balance sheet, but looking at the change in cash in the most recent TTM it's only 30m of cash burned, they have over 400m in cash so they are able to survive for many years.
I am more of a long-term investor, so technicals aren't much of a focus. Two things I check 1) The stock price is not over-extended from its moving averages 2) Currently at levels with strong volume with the stock price after the huge pull-down.
Disclaimer: All content provided in any of my Social channels/videos/posts/podcasts and any other communications are only for entertainment/educational purposes. Talk to a financial adviser before making any decision
Make sure to follow for more content! Today I am looking at two stocks one in the gaming industry the other is in online education, seeing insane revenue growth or expecting strong growth shortly. This thread will be a quick read with some information on their fundamentals.
The first stock is $CRSR
- Market Cap ~$3.28B
- YTD ~107% from the first closing day (Recent IPO)
- Currently ~30% Down from ATH
- Business: Corsair Gaming, Inc., doing business as CORSAIR, is an American computer peripheral and hardware company. They are doing strong with streaming and content creation tools as well. They own Scufgaming and Elgato
- Recent Earnings Q3 Non-Gaap EPS $0.54 | Gaap EPS $0.40 (Profitable)!
- Revenue: 457.1M Up 60.7% Y/Y Game and creator peripherals revenue was up 129% to $161.6M ~33% of total revenue. Gaming components and systems increased by 38% to $295.5M.
- Currently positive CFO and positive Earnings with analyst expectations to continue to grow as the years progress.
- Revenue growth is expected to be 8.5% annually on average for the next 3-5 years by analysts. I believe this is an error or underlook statement due to such little amount of analysts looking at the company. We saw strong growth in recent Q! (2019 Grew 17% compared to 2018)
- Decent Balance Sheet (370m Debt and 116m Quick Cash). They are positive Earnings and CFO, so I do not worry too much about those debt levels
- I am more of a long-term investor, so technicals aren't much of a focus. Two things I check 1) The stock price is not over-extended from its moving averages 2) Currently at levels with strong volume with the stock price.
The second stock is $PS
Market Cap ~$2.62B
YTD ~6%
Currently ~20% Down from ATH
Business: Pluralsight, Inc. is an American publicly held online education company that offers a variety of video training courses for software developers, IT administrators, and creative professionals through its website... Online Education is something I believe will continue to boom.
Recent Earnings Q3 Non-GAAP EPS of $0.00; GAAP EPS of -$0.24 (Not Profitable yet)
Revenue: Revenue of $99.47M (+20.4% Y/Y)
Currently just hit +CFO but not expected to be profitable in GAAP Earnings anytime soon.
Revenue growth is expected to be 15.7.0% annually on average for the next 3-5 years. I consider anything with an annual average growth of 15% to be high growth.
Decent Balance sheet, almost a 1 to 1 ratio of Debt to Cash. I would have wished for a strong balance sheet, but looking at the change in cash in the most recent TTM it's only 30m of cash burned, they have over 400m in cash so they are able to survive for many years.
I am more of a long-term investor, so technicals aren't much of a focus. Two things I check 1) The stock price is not over-extended from its moving averages 2) Currently at levels with strong volume with the stock price after the huge pull-down.
Disclaimer: All content provided in any of my Social channels/videos/posts/podcasts and any other communications are only for entertainment/educational purposes. Talk to a financial adviser before making any decision