Smart Money Ratings For 20 Most Undervalued Stocks

Page 9 of 18

10. Clarus Corporation (NASDAQ:CLAR)

Insider Transaction: 0.57%

Upside Potential: 43.38%

Forward P/E: 12.62

Clarus Corporation (NASDAQ:CLAR) is a leading outdoor and lifestyle consumer product manufacturer in Utah, including brands like Black Diamond and Sierra. The company targets premium and performance-oriented segments, focusing on climbing, skiing, and mountain sports. Brand authenticity and product innovation give the company a competitive edge over players like CF Corporation. Clarus Corporation (NASDAQ:CLAR) pursues strategic acquisitions and international expansion to expand its business while facing challenges like seasonal demand and raw material cost fluctuations.

Clarus Corporation (NASDAQ:CLAR) has recovered from its 52-week low but remains only 6.92% above it. As per the fourth quarter report for 2024, the company failed to meet its top-line objectives by a difference of $10 million. Particularly, the adventure segment did not perform well, facing a 23% decline because of lower OEM and Australian wholesale revenue in Q4. On the other hand, the company saw improvements in its outdoor segment due to Stock Keeping Units (SKU) rationalization efforts and product simplification. Clarus Corporation (NASDAQ:CLAR) also reported success in restructuring efforts and a strong cash position to support its 2025 endeavor.

At 12.62, the forward P/E ratio points to a valuation that may not truly reflect the company’s earnings potential. Managerial interest in the stock is low, with insider transactions over the past six months at 0.57%. Comparatively, institutional interest is modest, with 13 hedge funds holding positions in the company at the end of Q4 2024. However, analysts forecast a compelling 43.38% upside, which may attract risk-tolerant investors.

Page 9 of 18