Overstock.com Inc's Meteoric Rise: Unpacking the 42% Surge in Just 3 Months
Overstock.com Inc (NASDAQ:OSTK), a prominent player in the cyclical retail industry, has been making waves in the stock market with its impressive performance. The company's market cap stands at $1.24 billion, with its stock price currently at $27.36. Over the past week, the stock has seen a gain of 3.41%, and over the past three months, it has surged by a remarkable 42.38%. This article aims to delve into the factors behind this surge and provide a comprehensive analysis of the company's performance.
Stock Performance and Valuation
Overstock.com's stock performance has been quite impressive, especially in the past three months. The company's GF Value, a measure of its intrinsic value, currently stands at $30.1. This is a decrease from its past GF Value of $35.07 three months ago. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. According to the GF Valuation, the stock is fairly valued currently, but was a possible value trap three months ago, suggesting investors should have thought twice before investing.
Company Overview
Overstock.com Inc operates as an online retailer, providing a broad range of products and services through its websites. The company's offerings include furniture, decor, area rugs, bedding and bath, home improvement, outdoor, and kitchen and dining items, among others. Overstock.com operates through a direct business that makes sales from the company's own inventory, and a partner business that sells merchandise from manufacturers, distributors, and other suppliers through the company's websites. The majority of its total revenue comes from its partner business and the U.S. market.
Profitability Analysis
Overstock.com's Profitability Rank stands at 4/10, indicating its profitability relative to other companies. The company's Operating Margin is -0.58%, which is better than 26.81% of the companies in the industry. Its ROE is -21.00%, better than 13.05% of the companies, and its ROA is -15.03%, better than 9.8% of the companies. The company's ROIC is -1.64%, better than 24.16% of the companies. Over the past 10 years, the company has been profitable for 6 years, which is better than 39.9% of the companies in the industry.
Growth Prospects
Overstock.com's Growth Rank is 2/10, indicating its growth relative to other companies. The company's 3-Year Revenue Growth Rate per Share is 1.90%, better than 44.68% of the companies, and its 5-Year Revenue Growth Rate per Share is -5.10%, better than 29.23% of the companies. Its 3-Year EPS without NRI Growth Rate is 22.90%, better than 64.64% of the companies.
Major Stock Holders
The top three holders of Overstock.com Inc's stock are Jim Simons (Trades, Portfolio), who holds 755,800 shares (1.67%), Chuck Royce (Trades, Portfolio), who holds 355,250 shares (0.79%), and Paul Tudor Jones (Trades, Portfolio), who holds 51,453 shares (0.11%).
Competitive Landscape
Overstock.com Inc operates in a competitive industry, with major competitors including Farfetch Ltd ($1.14 billion market cap), Revolve Group Inc ($1.08 billion market cap), and Dada Nexus Ltd ($1.47 billion market cap).
Conclusion
In conclusion, Overstock.com Inc's stock has seen a significant surge over the past three months, driven by its impressive performance and growth prospects. Despite some challenges in profitability, the company has managed to maintain a strong position in the market. With its robust business model and competitive edge, Overstock.com Inc is well-positioned for future growth.
This article first appeared on GuruFocus.
