Value investors buy cheap, unpopular shares and wait. Growth investors buy market darlings and get fast results or move on. Below are listed three companies that might appeal to the frugality of the first group of investors and the impatience of the second.
Some of these companies are with a low price/sales ratio compared with its industry average, suggesting investors aren’t especially impressed with them. However, each of these stocks also recently began to shine, sharply beating the S&P 500 index over the past four weeks. That could be a sign that financial prospects for these companies are turning brighter and that investors have started to notice.
Studies show that stocks with low price/sales ratios tend to beat the market over the long term and that ones with recent price momentum tend to do so over the short term. Search through companies with both attributes and you might find something even better than a company with turnaround potential: a company whose turnaround has already begun.
LANDCADIA HOLDI/SH CL A (NASDAQ: LCA) stock
LCA stock is at the point where you can say that it is a no-brainer investment. With a merger date approaching you will probably never see below $13.00 price tag on LCA shares. LCA will shake hands with Golden Nugget Online betting in a reverse merger that is about to take place in less than a month. And recently we saw a massive increase in August WINS for Golden Nugget. So, you are basically investing in a company that is already having strong numbers.
Xpeng Inc (XPEV) stock
You have good and bad companies no matter where the company originated from. Xpeng comes from China, and even though post-IPO share price numbers are not great there is less drama compared to…lets say Nikola.
I hope we will have many players in the ZEV market, the point is not to compete for 5% of automotive market, but to cover 100% of it.— Franco Mossotto (@FMossotto) September 15, 2020
For this reason, I do not invest only in $TSLA, but also in $NIO, $XPEV, and, now that it looks it's taking EV seriously, a little also on $VW.
China EV sales are expected to grow by 35% over next 5 years. Xpeng should grow faster than that. Funding is not a constraint. While Tesla is the undisputed EV market leader, Xpeng P7 is very impressive. P7 EPA range is 255 miles (base model) to 310 miles (long range). Compares to Tesla MIC 3: 200 miles (base) to 300 miles (long range).
And Xpeng is not a company such as Nikola where you are hoping that the company will have deliveries. Xpeng already delivered more than 20K vehicles.
Xiaomi Corp (1810) shares
To buy this stock you would need to go to Hong Kong (or open account with capital.com and trade online), but this stock is probably the best Chinese stocks out there. Xiaomi stock doubled in value this year and I am sure we will see another doubling before the year ends.
Xiaomi stock price will be put to the test in the coming days.This could mean a maximum upward breakout for Xiaomi. An earlier target price is getting very close again. This week is going to be crucial but have in mind this is also a long term investment, as Xiaomi is known as Apple of China.