The past year has been marked by a skyrocketing rally in high-growth technology stocks that followed a pandemic-led market correction last March. Investors parked their money in technology-based growth stocks as a bet against market uncertainty. This is evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 72.3% gain over the past year.
However, over the past month these growth stocks have experienced a sell-off as investors moved to take profits and rotate into stocks that will thrive with an economic recovery. In the current market scenario, a new class of post-pandemic growth stocks is attracting investors’ attention.
Cango, Inc. (CANG), Smith & Wesson Brands, Inc. (SWBI), The Container Store (TCS), Fossil Group, Inc. (FOSL) are four such companies. They are expected to benefit as Americans return to “analog lifestyles” with mass vaccinations and an economic recovery.
Cango, Inc. (CANG)
CANG operates an online platform for vehicles that connects dealers with buyers and other industry participants. The company has operations in China primarily. CANG has gained 70.3% over the past year to close yesterday’s trading session at $10.22.
For the quarter ended December 31, the company’s revenue outperformed its guidance by 46.3%. Its financing facilitation revenues increased 51.8% compared to the same period in 2019.
CANG’s trailing-12-month revenue grew at a CAGR of 24.9% over the past three years. The company’s revenue is estimated to grow 226% in 2021. Its EPS is expected to rise at a rate of 11.1% per annum over the next five years.
CANG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
It has a B grade for Growth, Sentiment, Quality and Momentum. In the China industry, it is ranked #4 of 86 stocks.
In total, we rate CANG on eight different levels. Beyond what we’ve stated above we have also given CANG grades for Value and Stability. Get all the CANG ratings here.
Smith & Wesson Brands, Inc. (SWBI)
SWBI is designs , manufactures, and markets firearms. The company operates in the Firearms and Accessories segments primarily. SWBI has returned 198% over the past year to close yesterday’s trading session at $19.01.
The company recently expanded its portfolio of M&P M2.0 compact pistols to include an optics-ready variant, which is called M&P9 M2.0 Compact 4” OR. It has also recently launched its new Performance Center M&P9 Shield EZ.
SWBI’s trailing-12-month revenue has grown at a CAGR of 9.6% over the past five years. Its trailing-12-month EBITDA has grown at a CAGR of 40.1% over the past three years.
SWBI is expected to see 11.2% revenue growth for the quarter ended April 30, and 46.5% in 2021. Its EPS is estimated to grow 382.9% in 2021 and 15% per annum over the next five years.
It’s no surprise that SWBI has an overall B rating, which equates to Buy in our POWR Ratings system. SWBI has an A grade for both Value and Quality and B for Growth. In the A-rated Athletics & Recreation industry, it is ranked #14 of 33 stocks.
Click here to see the additional POWR Ratings for SWBI (Sentiment, Momentum, and Stability).
The Container Store (TCS)
TCS is involved in retail sales of storage and organizational products. The company offers various types of containers, closets, hooks, etc. It has operations primarily in the United States. TCS has gained 732.5% over the past year to close yesterday’s trading session at $17.4.
TCS recently appointed a new CEO, Satish Malhotra. It is also collaborating with Marie Kondo to launch an exclusive line of products.
Its trailing-12-month revenue has grown at a CAGR of 2.7% over the past three years. And its trailing-12-month EBITDA has grown at a CAGR of 16.4% over the same period.
TCS is expected to see 45.8% revenue growth for the quarter ended June 2021, and 6% in 2021. Its EPS is estimated to grow 263.3% in 2021 and 15.3% per annum over the next five years.
The POWR Ratings are also high on TCS. It has an Overall Rating of A, which translates to a Strong Buy. TCS has an A grade for Growth and Momentum and B for Value and Quality. In the 38-stock Specialty Retailers industry, it is ranked #3.
Beyond what we’ve stated above we have also given TCS grades for Sentiment and Stability. Get all the TCS ratings here.
Fossil Group, Inc. (FOSL)
FOSL designs manufactures and markets lifestyle and fashion accessories. The company is primarily known for its portfolio of men and women’s watches. It has international operations. FOSL’s stock has gained 291% over the past year to close yesterday’s trading session at $13.88.
FOSL recently launched its Hybrid HR, which is the company’s most advanced hybrid technology smartwatch yet. It has also launched a new line of smartwatches built on the Google Wear OS.
The company’s EPS is expected to grow at a rate of 14.9% per annum over the next five years.
It’s no surprise that FOSL has an overall B rating, which equates to Buy in our POWR Ratings system. FOSL has a B grade for both Quality and Value. In the B-rated Fashion & Luxury industry, it is ranked #21 of 67 stocks.
Click here to see the additional POWR Ratings for FOSL (Growth, Momentum, Stability, and Sentiment).
The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
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CANG shares were trading at $9.90 per share on Wednesday morning, down $0.32 (-3.13%). Year-to-date, CANG has gained 41.43%, versus a 5.26% rise in the benchmark S&P 500 index during the same period.
About the Author: Aaryaman Aashind
Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
CANG | Get Rating | Get Rating | Get Rating |
SWBI | Get Rating | Get Rating | Get Rating |
TCS | Get Rating | Get Rating | Get Rating |
FOSL | Get Rating | Get Rating | Get Rating |