In today’s video I look at fundamentals and valuation metrics for the following stocks: Vuzix (NASDAQ:VUZI), Etsy (NASDAQ:ETSY), and Zillow Group (NASDAQ:ZG). The prices for these three stocks are below $200 each, and below I share a few reasons to add them to your watch list.
Two reasons to add Vuzix to your watch list
- Vuzix is in the early innings of its business. Still, in the most recent earnings, management stated that it sees strong demand for its smart glasses product as customers continue to place larger and more frequent orders.
- Vuzix has a substantial amount of cash and short-term investments and no debt. The strength of its balance sheet allows Vuzix to continue to fund project growth and product development.
Two reasons to add Etsy to your watch list
- Etsy reported 141% year-over-year (YOY) revenue growth and over 60% YOY growth of active sellers and buyers for the first quarter of 2021.
- Etsy has solid fundamentals for its trailing 12 months. It has positive cash flow from operations, positive earnings, and more cash and short-term investments than debt.
Two reasons to add Zillow to your watch list
- Even though the pandemic has slowed down Zillow’s growth, the company reported YOY increase in traffic to its mobile application and website and 8% YOY revenue growth for the first quarter of 2021.
- Zillow has exceptional fundamentals for its trailing 12 months. It has positive cash flow from operations, positive earnings, and substantially more cash and short-term investments than debt.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of June 4, 2021. The video was published on June 5, 2021.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.