Oddity Tech Ltd. (NASDAQ:ODD) is one of the stocks Jim Cramer recently shed light on. Cramer said that the company’s “fundamentals remain incredible,” as he said:
“Earlier this week, a beaten-down direct-to-consumer cosmetic stock, Oddity Tech, reported a great quarter, and the stock shot up 21% in its highs yesterday before the entire market, of course, rolled over and gave back those gains. It only finished up just 6.5%. Today, it got hit for another 4.7% and at this point, I think you’re almost getting that terrific quarter for free. I think this is one of those babies that got thrown out with the proverbial bathwater, and right now, it’s a compelling buying opportunity. Of course, to be fair, I don’t have the best track record in this stock…
To me, this seems like the real opportunity here. This spring, I told you that I really liked the Oddity story, but I told you not to chase it. Right now, the story is the same. In fact, I’d argue it’s much better with a series of beat and raise quarters coupled with this new telehealth brand on the way that really I found very intriguing. And this time, you’re doing the opposite of chasing; you’re buying into weakness. In May, I said the stock was expensive around 30 times earnings. Well, it’s now selling for less than 18 times this year, or just 17 times, really… 17 times next year’s numbers.
I regard that as cheap. In fact, I’d even go so far as to say that next year’s estimates look pretty low to me, implying just 4% year-over-year earnings growth. Here’s the bottom line:… Now I have liked this Oddity Tech for a long time. I haven’t gotten it right, but the stock’s big rally earlier this year turned out to be a false start. The good news, though, the fundamentals remain incredible, and the stock’s a heck of a lot cheaper than it was six or seven months ago. At these levels, I think it represents a very compelling value.”
Photo by Adam Nowakowski on Unsplash
Oddity Tech Ltd. (NASDAQ:ODD) develops digital-first beauty and wellness brands using AI-driven technology to create personalized products.
While we acknowledge the risk and potential of ODD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ODD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center