Investing in the current economic climate can be daunting, especially with talks of a possible recession on the horizon. However, amidst all the negative news, there are hidden gems in the stock market that are bucking the trend and showing strong potential for growth.
One such under-the-radar consumer stock that is worth keeping an eye on is Sharkninja (SN). This household durable company has been making waves in the consumer discretionary sector and is positioning itself as a top contender for investors looking for growth opportunities.
Why Sharkninja? Well, for starters, the company operates under two main segments – ‘Shark’ and ‘Ninja’ – and provides innovative consumer products such as vacuums, cooking appliances, blenders, and more. With a focus on high-margin products and aggressive revenue growth, Sharkninja has been able to expand its market share and improve its bottom line.
Recent earnings report
In August, Sharkninja reported earnings of $0.71, beating expectations by 19% and growing an impressive 51% compared to the same quarter last year. Revenues also saw a substantial increase of 31% to $1.25 billion, surpassing consensus estimates by 14%. Following this stellar performance, the stock witnessed a breakout in its price action, breaking above the $92.50 resistance level on above-average volume.
What’s next for Sharkninja?
With the stock consolidating around $90.00 and breaking out above key resistance levels, the future looks bright for Sharkninja. Analysts at Bank of America and Goldman Sachs have set price targets of $102 and $110, respectively, indicating further upside potential for the stock.
Inside Edge Capital’s take
Todd Gordon, the Founder of Inside Edge Capital, recently added Sharkninja to the firm’s growth portfolio with a 1% allocation. If the stock continues to hold above the breakout level, Gordon is considering increasing the allocation in anticipation of reaching the price targets set by major analysts.
In conclusion
While the market may be volatile and uncertain, it’s essential to keep an eye out for opportunities like Sharkninja that are showing resilience and growth potential. By focusing on innovative companies with strong fundamentals and breakout potential, investors can navigate the market challenges and position themselves for success.
Disclaimer: It’s important to note that all opinions expressed in this article are for informational purposes only and do not constitute financial advice. Before making any investment decisions, it’s advisable to consult with a financial advisor to assess your individual circumstances and risk tolerance.