Here’s What It’ll Take to Make This Stock Zoom 84% – and More

Shah Gilani|July 11, 2023

One of my favorite things to do when market conditions are trending bullish is to find good companies with solid financials whose stock has gotten beaten up for one reason or another, so I can buy them at a deep discount and enjoy the ride back up.

And in a stock market where all the most famous names are tech companies that are so diversified and research-driven that it’s basically impossible to summarize what they do, it’s important to remember that there are a ton of great companies out there quietly checking off all the Econ 101 boxes.

What I mean by that is, they provide products and concrete solutions that fulfill a straightforward market need, they make consistent profits and have an overall trend of earnings growth, and they continue to grow their market cap year-over-year.

Well, one of these companies is on my radar today, a California firm that’s grown to an almost $2.7 billion market cap by being a leader in a rather niche field – selling boutique hair care products online.

I know what you’re probably thinking. But the numbers don’t lie. Back in 2019, they did $148 million in sales. By the end of last year, they grew that to $704 million. Their profit margin is an astonishing 32%. The bottom line is, it’s a solid company that makes solid money in a business that is always going to be in demand.

Growth has slowed somewhat, thanks to overall trends in retail spending, and it’s definitely true that the proverbial bloom is off the rose when it comes to e-commerce. That’s why it’s currently sitting at around -84% from its all-time high and has mostly traded sideways in 2023.

But all it’ll take is one good tailwind to send the stock soaring, and when it does, you can expect it to more than make up for its prior losses.

Check out the video for the ticker:

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Check back with me later in the week for a full review of what stocks are likely to thrive after the CPI and PPI announcement tomorrow… and which ones will probably sink like a stone. Take care until then.