Goldman Sachs Likes These 2 Beaten-Down Stocks for Triple-Digit Upside

Stocks are down, that’s a given in almost any corner of the market, with – broadly speaking – only the energy sector and some outliers providing investors with any cheer in 2022.

When will the tide turn? That’s anyone’s guess, but until it does, investors will need to hang tight and hope the cloudy macro picture clears eventually.

However, that does not mean opportunities have completely dried up; the nice thing about the market-wide pullback is that some names have retreated to such an extent, they now offer exceptional value.

Accordingly, the stock analysts at leading investment bank Goldman Sachs have homed in on two names which are down, but far from out. In fact, the analysts see them both claiming triple-digit gains over the coming year. Using the TipRanks database, we can also find out how these names fare amongst other Street analysts. Let’s dive in.

Rent the Runway (RENT)

We’ll start off with a company that does exactly what it says on the tin. At Rent the Runway, you can basically get your hands on high-end fashion items for a short period, use them for whatever occasion and then hand them back. The company sees itself as a disruptor of the trillion-dollar fashion industry, offering its female clientele membership plans, with the platform boasting a huge selection of items from leading brands – who also stand to benefit from expanding their reach. The company also touts its Closet in the Cloud service as the world’s first and biggest shared designer closet.

The world might be beset by soaring inflation, war in Europe and a slowing global economy, but consumers still want to slip into some nice clothes whatever the macro conditions offer. That could be the conclusion following the company’s latest quarterly statement – for 1Q22.

RENT beat both the top-and bottom-line estimates. Revenue doubled year-over-year to reach $67.1 million while EPS came in at -$0.67. Wall Street analysts expected $64.1 million and -$0.73, respectively. At the same time, active subscribers increased by 82% from the same period last year while gross margins saw a 9%…


Read More

Recommended For You

Leave a Reply

Your email address will not be published. Required fields are marked *