3 Under the Radar Stocks Wall Street Loves

: CZOO | Cazoo Group Ltd. News, Ratings, and Charts

CZOO – Rising inflationary pressure, a weak job market, and the Fed’s potential tapering could prolong stock market instability in the near term. However, the market is expected to generate some momentum later this month as the earnings season kicks off. As such, Wall Street analysts expect lesser-known stocks Cazoo Group (CZOO), 23andMe (ME), and Sharecare (SHCR) to deliver decent upside. Read on.

Weaker-than-expected labor market data, uncertainty surrounding the Fed’s potential tapering, and rising inflation have caused the benchmark indices to edge lower of late. However, with the third-quarter earnings season kicking off this week, investors are hopeful. Also, according to veteran chart analyst Larry Williams, the stock market is expected to move higher in late October.

Given this, we think investing in stocks that are overlooked by many investors but have the potential to deliver solid returns in the near term could be ideal bets now.

Underscoring this point, Wall Street analysts are optimistic about the upside potential of under-the-radar stocks Cazoo Group Ltd (CZOO), 23andMe Holding Co. (ME), and Sharecare, Inc. (SHCR) because of their sound fundamentals.

Cazoo Group Ltd (CZOO)

Headquartered in London, U.K., CZOO is an online car retailer company. The company offers a range of sport utility vehicles (SUVs) and hatchbacks, including various electric and hybrid vehicles. It also provides car care services, such as extended warranty and paint and fabric protection. Audi, BMW, Ford, Land Rover, Mercedes-Benz, Nissan, Volkswagen, Skoda, and Fiat are the brands sold by CZOO.

Last month, CZOO acquired U.K. vehicle preparation, logistics, and storage business, SMH Fleet Solutions (SMH). The acquisition should allow CZOO to solve reconditioning, storing, and delivery problems. Also, it would help to de-risk the company’s future growth by doubling the number of vehicle preparation sites and significantly enhancing its team of vehicle preparation and logistics staff.

For six months ended June 30, 2021, ZDGE’s revenue increased 529% year-over-year to £248 million ($286.94 million). The company’s gross profit came in at £11 million ($12.73 million), compared to a gross loss of £1 million ($1.16 million) in the prior-year quarter. Its cash and cash equivalents amounted to £60 million ($69.42 million) during this period. Also, the company’s revenue under its retail segment grew 462.2% from the year-ago value to £208 million ($240.66 million).

The only Wall Street providing a rating for the stock has rated it Buy. The price target represents a 68.3% potential gain.

23andMe Holding Co. (ME)

ME is a consumer genetics and research company that offers direct-to-consumer genetic testing and personalized information about genetic health risks, ancestry, and traits. Consumer & Research Services; and Therapeutics are the segments under which the Mountain View, Calif., company operates. In addition, the company provides personal genome services and solutions, including oncology, immunology, neurology, metabolic and cardiovascular diseases.

In June, ME and a special purpose acquisition company sponsored by Virgin Group, VG Acquisition Corp. (VGAC), completed a business combination. The capital from this transaction should be used to invest in the company’s unique genetic and phenotypic database to help accelerate personalized healthcare at scale. 

During its fiscal first quarter, ended June 30, 2021, ME’s revenue increased 23.3% year-over-year to $59.24 million. The company’s gross profit grew 36.5% from its year-ago value to $30.7 million. Its interest income came in at $44,000 during this period. Also, the company’s cash rose 172.6% from $282.49 million as of March 31, 2021, to $769.94 million as of June 30, 2021

A $315.47 million consensus revenue estimate for its fiscal period ending March 2023 represents an increase of 22.6% year-over-year. Also, the company’s EPS is estimated to grow 25.3% for the fiscal period ending March 2023.

The two Wall Street analysts that have provided ratings for the stock rated it Buy. The average analyst price target represents a 66% potential gain.

Click here to checkout our Healthcare Sector Report for 2021

Sharecare, Inc. (SHCR)

Founded in 2009, SHCR in Atlanta, Ga., is a digital healthcare platform company. The company’s Sharecare data-driven virtual health platform consists of doctors, health plans, employers, health management tools, information, and communities. It also develops and tests programs, such as diabetes, smoking, financial stress, and COVID-19.

This month, SHCR launched Unwinding by Sharecare, which is an evidence-based mental well-being app. This app has been designed to help users better understand how their minds work, reduce stress, and build healthier habits. The app consists of masterclasses, stress reduction tools, and other materials that teach people practical ways to use mindful awareness.

SHCR’s revenue increased 25.9% year-over-year to $98.46 million for the second quarter, ended June 30, 2021. The company’s loss from operations decreased 20.1% from its year-ago value to $4.4 million. Its interest income rose 31.3% from the prior-year quarter to $21,000. Also, the company’s cash and cash equivalents grew 89.5% from $22.6 million as of December 31, 2020, to $42.84 million as of June 30, 2021.

For its fiscal year 2022, SHCR’s revenue is estimated to be $553.21 million, representing 33.9% year-over-year growth. Analysts expect SHCR’s EPS to increase 100% next year. Its stock surged 9.9% in price over the past month.

The two Wall Street analysts that have provided ratings for the stock have rated it Buy. The average analyst price target represents a 73.2% potential upside.

Click here to checkout our Healthcare Sector Report for 2021


CZOO shares were trading at $7.17 per share on Thursday afternoon, up $0.02 (+0.28%). Year-to-date, CZOO has declined -39.24%, versus a 19.37% rise in the benchmark S&P 500 index during the same period.


About the Author: Priyanka Mandal


Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CZOOGet RatingGet RatingGet Rating
MEGet RatingGet RatingGet Rating
SHCRGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

10 Best POWR Ratings Stocks

Investors love using our POWR Ratings to track down stocks likely to outperform the S&P 500 (SPY). However, on any given day there are over 1,300 that are Buy rated. This leads customers to reach out to us to discover which are the BEST of these stocks. Today I share the answer including details on the current 10 best POWR Ratings stocks. Get the rest below...

:  |  News, Ratings, and Charts

Are Stocks Ready to Break to New Highs?

The stock market (SPY) is on a 5 day winning streak and now less than 1% away from the all time highs. This quickly shakes off weeks of painful pullbacks and volatility. Is the market truly ready to ascend to new heights or is this another fake out before the next leg lower? Find out the rest below...

:  |  News, Ratings, and Charts

TTSH is this Week’s Featured Stock 

The Tile Shop Holdings (TTSH) is a leading specialty retailer of manufactured and natural stone tiles. The company has staged an impressive earnings turnaround. Read more to find out why the stock is a good buy into year-end.

:  |  News, Ratings, and Charts

Buy These 3 Tech Stocks Before They Soar Further

Tech stocks, which were underperformers at the start of the year, have made their way back as investors have been buying on the dip. Many of these stocks, which include Applied Materials Inc. (AMAT), KLA Corporation (KLAC), and Amdocs Limited (DOX) are currently in an uptrend and are expected to continue this momentum.

:  |  News, Ratings, and Charts

TTSH is this Week’s Featured Stock 

The Tile Shop Holdings (TTSH) is a leading specialty retailer of manufactured and natural stone tiles. The company has staged an impressive earnings turnaround. Read more to find out why the stock is a good buy into year-end.

Read More Stories

More Cazoo Group Ltd. (CZOO) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CZOO News