Home News Is This the Perfect eCommerce Stock Pick?

Is This the Perfect eCommerce Stock Pick?

12
0


The market is starting to show signs of a more sustainable bottom.

First, we had a massive washout in tech stocks.

Then more recently, we saw back-to-back “breadth” signals with a strong upside bias.

Certainly, many stocks are at deeply discounted levels relative to 2021. 

But here’s the thing: You can’t just blindly go and buy the dip.

Instead, you can start to focus on the Price to Sales ratio (P/S), a great metric to find stocks trading at a discount.

And speaking of that, we are now starting to see some deals.

When a company is in a massive growth phase, investors are willing to pay for a higher sales multiple because they expect sales to expand.Yet when everything not nailed down gets sold off, you can see a serious contraction in this reading.

Stock Chart

Stock Chart

We discovered a company now trading at a sales multiple of nearly 1. That means that, based on the current value of the company, they should expect to earn that money back in a single year.

This is a recent IPO play that’s a victim of unfortunate timing — they listed right before the market took a dive, and stock owners have been liquidating into every pop.

The company has several e-commerce brands in its portfolio, and I’ve been a loyal customer of one of these brandes for over a decade. 

Of course, what I think about the valuation doesn’t matter…

We want to see what the insiders are doing.

That’s how we found this name — the CFO made his first purchase of the stock just a few days ago. 

This is the guy that knows the numbers, like the expected revenue over the next few years, and is willing to put down six-figures of his own cash to acquire shares.

Based on my analysis and this insider buy, this name has some serious upside…

Which is why we recently added it to our portfolio at Insiders Exposed. 

To learn our insider trading strategy and get access to our full portfolio:

Go here now.

Previous articleA Grand Super Cycle Opportunity – Forex Market Analysis – ForexCycle.com
Next articleExness May trading volumes fall almost 5% but stay above $2 trillion LeapRate