Provide customers with value and they keep coming back…
How Inflation-Proof Hotdogs Made This Stock a Beacon of Value
Each year, there's a company that sells more hot dogs than all the Major League Baseball (MLB) stadiums combined… four times more, in fact.
Maybe that's because it's been offering the same value deal since 1985: a jumbo hot dog and 20-ounce soda (or pop as some may say) for just $1.50.
In today's dollars — factoring in inflation — that combo should cost $4.08.
But the price has never changed, which is remarkable considering that companies have been more than willing to pass on extra costs to customers during inflation… and keep those prices elevated.
Imagine you could ask an A.I. program what price Google stock is going to be next month...
Or how much the price of gold is going up or down...
And what if it could predict those outcomes with astonishing accuracy?
Well, believe it or not, one of the world's leading financial tech companies, a company called TradeSmith, launched a program recently that does exactly that...
Because when I plugged in the stock ticker into our tools, I found an investable opportunity.
This company triggered an Entry Signal in our system on July 7, and it's currently in our Green Zone. The Green Zone can be thought of like the green "Go" light on a traffic signal — it means this company is one to consider moving forward with.
It also has a superb Business Quality Score.
Our Business Quality Score rates every company based on a composite of four broad quality metrics:
Growth: This metric measures changes in a company's finances such as sales, profit, return on equity (ROE), return on assets (ROA), and cash flow over the past five years.
Profitability: This metric measures a company's current level of profitability relative to its assets, sales, and shareholder equity.
Safety: This metric measures a company's financial strength (debt burden, credit risk, etc.) and its stock's historical volatility versus the overall market.
Payout: This metric measures how much of what a company earns benefits shareholders via dividends, net share buybacks, and debt repayment.
Our algorithms first calculate the current quality score for each stock compared to its history and all other stocks in our database. They then average those scores for each stock and rate the stock on a quality scale from 0 (lowest quality) to 100 (highest quality).
No, it's NOT ChatGPT... (It's not Microsoft, Google, NVIDIA, or any of the other big players you've likely heard about either!) It's a tiny sub-$5 stock!
So far this year, the company's stock price is up 25%, and there are several bullish signals that indicate additional gains could be on the way by the end of 2023.
TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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