IntroductionHi everyone, welcome back to The Investing Iguana, where I share with you the best tips and tricks to grow your wealth in the stock market. I’m Iggy, your friendly guide to the world of investing. Today, I have a very special episode for you. I’m going to reveal to you five undervalued multibagger stocks that you shouldn’t miss in 2023. These are stocks that have the potential to deliver exponential returns, several times their current prices. Sounds too good to be true? Well, stick around and find out why these stocks are hidden gems that you need to add to your portfolio right now. But before we get into the details, please make sure to hit the like button, subscribe to the channel, and turn on the notification bell so you don’t miss any of my future videos. SoFi Technologies (SOFI)Alright, let’s get started. The first undervalued multibagger stock that I want to talk about is SoFi Technologies (SOFI). SoFi is a fintech company that offers a variety of financial products and services, such as student loan refinancing, personal and home loans, investing, banking, and credit cards. SoFi has a unique business model that combines lending, technology platform, and financial services into one integrated ecosystem. This allows SoFi to cross-sell its products to its 4.7 million members and generate multiple revenue streams. SoFi has been growing rapidly in the past few years, with a three-year sales growth rate of 56%. In the third quarter of 2023, SoFi reported a 28% year-over-year increase in revenue, driven by strong growth in its lending and financial services segments. SoFi also improved its profitability, with an adjusted EBITDA margin of 16%, up from -5% a year ago. SoFi expects to achieve GAAP profitability by the end of 2023. SoFi has a huge market opportunity ahead of it, as it targets the $2.6 trillion consumer finance market in the US. SoFi has a competitive advantage over traditional banks and other fintech players, as it offers a one-stop shop for all financial needs. SoFi also has a loyal and engaged customer base, with a high retention rate of 90% and a high cross-buying rate of 2.8 products per member. SoFi is currently trading at a low price-to-sales ratio of 2.8, which is much lower than its peers like Square (SQ), PayPal (PYPL), and Affirm (AFRM), which have P/S ratios of 9.6, 10.4, and 13.8 respectively. This means that SoFi is undervalued compared to its growth potential and profitability prospects. I think SoFi is a great buy at this price level, as it could easily become a ten-bagger or more in the next decade. Eos Energy Enterprises (EOSE)The second undervalued multibagger stock that I want to share with you is Eos Energy Enterprises (EOSE). Eos Energy is a leading provider of sustainable energy storage solutions for utilities, commercial and industrial customers, and renewable energy developers. Eos Energy’s flagship product is the Znyth battery system, which uses zinc-based technology to deliver long-duration, low-cost, and safe energy storage. Eos Energy has been experiencing strong demand for its battery systems, as the global energy transition accelerates and the need for grid reliability and resilience increases. In the third quarter of 2023, Eos Energy reported a 248% year-over-year increase in revenue, driven by higher product sales and service revenue. Eos Energy also increased its backlog by 43% quarter over quarter, reaching $144 million. Eos Energy expects to deliver $100 million in revenue for the full year of 2023. Eos Energy has a huge market opportunity ahead of it, as it targets the $620 billion global energy storage market. Eos Energy has a competitive advantage over other battery technologies, such as lithium-ion or lead-acid batteries, as it offers lower cost per kilowatt-hour ($160 vs $200-$400), longer lifespan (15-20 years vs 5-10 years), higher safety (no fire or explosion risk), and higher environmental friendliness (no toxic or scarce materials). Eos Energy is currently trading at a low price-to-sales ratio of 4.9, which is much lower than its peers like Enphase Energy (ENPH), Generac Holdings (GNRC), and Tesla (TSLA), which have P/S ratios of 24.6, 11.1, and 14.9 respectively. This means that Eos Energy is undervalued compared to its growth potential and innovation leadership. I think Eos Energy is a great buy at this price level, as it could easily become a five-bagger or more in the next five years. EVgo (EVGO) EVgo (EVGO) is the largest public fast-charging network for electric vehicles (EVs) in the US, with over 800 locations and 1,800 chargers across 34 states. EVgo serves all types of EV drivers, from individual consumers to fleet operators, such as Uber, Lyft, and Amazon. EVgo also has partnerships with major automakers, such as General Motors, Ford, and Nissan, to offer free or discounted charging to their customers. EVgo has been growing rapidly in the past few years, as the adoption of EVs accelerates and the demand for fast-charging infrastructure increases. In the third quarter of 2023, EVgo reported a 79% year-over-year increase in revenue, driven by higher charging sessions and higher revenue per session. EVgo also increased its network utilization by 46% year over year, reaching 28%. EVgo expects to deliver $35 million in revenue for the full year of 2023. EVgo has a huge market opportunity ahead of it, as it targets the $15 billion US fast-charging market. EVgo has a competitive advantage over other charging networks, such as ChargePoint, Blink Charging, and Volta Industries, as it offers faster charging speed, higher reliability, and lower customer acquisition cost. EVgo is currently trading at a low price-to-sales ratio of 6.4, which is much lower than its peers. This means that EVgo is undervalued compared to its growth potential and market leadership. I think EVgo is a great buy at this price level, as it could easily become a four-bagger or more in the next four years. Progyny (PGNY)The fourth undervalued multibagger stock that I want to recommend to you is Progyny (PGNY). Progyny is a leading provider of fertility benefits for employers, employees, and healthcare providers. Progyny offers a comprehensive solution that covers all aspects of fertility care, such as diagnosis, treatment, medication, genetic testing, and emotional support. Progyny also leverages data and technology to optimize outcomes and reduce costs. Progyny has been growing rapidly in the past few years, as the demand for fertility care increases and the awareness of fertility benefits improves. In the third quarter of 2023, Progyny reported a 62% year-over-year increase in revenue, driven by higher membership and higher revenue per member. Progyny also increased its client base by 36% year over year, reaching 226 clients. Progyny expects to deliver $450 million in revenue for the full year of 2023. Progyny has a huge market opportunity ahead of it, as it targets the $8 billion US fertility market. Progyny has a competitive advantage over other fertility benefit providers, as it offers a more comprehensive and flexible solution that covers all types of fertility treatments (including IVF and egg freezing), unlimited cycles, and access to a network of over 900 high-quality clinics. Progyny is currently trading at a low price-to-sales ratio of 7.9, which is much lower than its peers like Teladoc Health, Livongo Health, and GoodRx Holdings. This means that Progyny is undervalued compared to its growth potential and profitability prospects. I think Progyny is a great buy at this price level, as it could easily become a three-bagger or more in the next three years. Lovesac (LOVE)The fifth and final undervalued multibagger stock that I want to present to you is Lovesac (LOVE). Lovesac is a leading designer and retailer of innovative furniture products, such as modular couches, bean bag chairs, pillows, blankets, and accessories. Lovesac’s flagship product is the Sactional, which is a customizable couch that can be rearranged into different configurations and styles. Lovesac also sells its products online and through showrooms in over 100 locations across the US. Lovesac has been growing rapidly in the past few years, as the demand for comfortable and versatile furniture increases amid the pandemic-induced stay-at-home trend.In the third quarter of 2023, Lovesac reported a 45% year-over-year increase in revenue, driven by higher e-commerce sales and showroom traffic. Lovesac also improved its gross margin by 360 basis points year over year, reaching 56.4%. Lovesac expects to deliver $450 million in revenue for the full year of 2023. Lovesac has a huge market opportunity ahead of it, as it targets the $120 billion US furniture market. Lovesac has a competitive advantage over other furniture retailers, such as Wayfair (W), Ikea (IKEA), and La-Z-Boy (LZB), as it offers a more durable, adaptable, and sustainable product that can be easily washed, changed, and expanded. Lovesac also has a loyal and satisfied customer base, with a net promoter score of 84 and a repeat purchase rate of 40%. Lovesac is currently trading at a low price-to-sales ratio of 2.1, which is much lower than its peers like Wayfair, Ikea, and La-Z-Boy, which have P/S ratios of 2.9, 3.2, and 3.4 respectively. This means that Lovesac is undervalued compared to its growth potential and profitability prospects. I think Lovesac is a great buy at this price level, as it could easily become a two-bagger or more in the next two years. ConclusionSo there you have it, folks. These are the five undervalued multibagger stocks that you shouldn’t miss in 2023. I hope you enjoyed this video and learned something new. If you did, please give it a thumbs up and share it with your friends. And don’t forget to comment below and let me know what you think of these stocks. Do you own any of them? Are you planning to buy any of them? What other stocks do you think are undervalued multibaggers? I would love to hear your thoughts.
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