Mogo (MOGO - Free Report) is a Zacks Rank #2 (Buy) that has a great growth divergence. I see a strong an A for the Zacks Style Score for Growth and an F for the Zacks Style Score for Value. Value investors and growth investors are looking for different things, so when I see a big divergence in the style scores I know I am on the right path. Let’s take a deeper look at this stock as it is the Bull of the Day.
Description
Mogo Inc. operates as a financial technology company in Canada. The company provides finance app that empowers consumers with solutions to help them get in control of their financial wellness. It offers users a free MogoAccount and provides access to various products, including free credit score monitoring, identity fraud protection, digital spending account with Platinum Prepaid Visa Card, digital mortgage experience, the MogoCrypto account, a product within MogoWealth that enables the buying and selling of bitcoin, and access to smart consumer credit products through. The company's platform delivers digital experience with various products all through one account. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
Monster Valuation
Over the weekend another player in the space (Stripe) raised $600M at a $95B valuation, and that will probably serve as a long term driver for this stock. MOGO has a $350M valuation… but that should be moving higher here as the stocks looks like it is about to break out.
Earnings History
I always look at the earnings history as it tells me if management can effectively communicate with Wall Street. In the case of MOGO, I see three beats in the last four quarters and the one time there wasn’t a beat it was an earnings meet.
These beats have been getting bigger and bigger, with the first one coming in 33% ahead of the Zacks Consensus Estimate. The next was 71% and then 109%.
Bigger and bigger beats are just what we like to see.
Earnings Estimates
I see estimates for this quarter are holding still, but there was a 1 cent improvement in the estimates for next quarter.
The full year is also holding still right now at a loss of 35 cents.
Next year is seeing some positive earnings estimate revisions. I see that number moving from a loss of 34 cents to a loss of 30 cents.
This is the main reason this stock is a Zacks Rank #2 (Buy)
Valuation
Since there are no earnings, the PE is not there for us to lean on. I don’t even see a price to book for this stock. I see an 8x price to sales, which is a lot… but margins are moving in the right direction and should really move when the company becomes profitable.
Chart
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Mogo (MOGO - Free Report) is a Zacks Rank #2 (Buy) that has a great growth divergence. I see a strong an A for the Zacks Style Score for Growth and an F for the Zacks Style Score for Value. Value investors and growth investors are looking for different things, so when I see a big divergence in the style scores I know I am on the right path. Let’s take a deeper look at this stock as it is the Bull of the Day.
Description
Mogo Inc. operates as a financial technology company in Canada. The company provides finance app that empowers consumers with solutions to help them get in control of their financial wellness. It offers users a free MogoAccount and provides access to various products, including free credit score monitoring, identity fraud protection, digital spending account with Platinum Prepaid Visa Card, digital mortgage experience, the MogoCrypto account, a product within MogoWealth that enables the buying and selling of bitcoin, and access to smart consumer credit products through. The company's platform delivers digital experience with various products all through one account. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
Monster Valuation
Over the weekend another player in the space (Stripe) raised $600M at a $95B valuation, and that will probably serve as a long term driver for this stock. MOGO has a $350M valuation… but that should be moving higher here as the stocks looks like it is about to break out.
Earnings History
I always look at the earnings history as it tells me if management can effectively communicate with Wall Street. In the case of MOGO, I see three beats in the last four quarters and the one time there wasn’t a beat it was an earnings meet.
These beats have been getting bigger and bigger, with the first one coming in 33% ahead of the Zacks Consensus Estimate. The next was 71% and then 109%.
Bigger and bigger beats are just what we like to see.
Earnings Estimates
I see estimates for this quarter are holding still, but there was a 1 cent improvement in the estimates for next quarter.
The full year is also holding still right now at a loss of 35 cents.
Next year is seeing some positive earnings estimate revisions. I see that number moving from a loss of 34 cents to a loss of 30 cents.
This is the main reason this stock is a Zacks Rank #2 (Buy)
Valuation
Since there are no earnings, the PE is not there for us to lean on. I don’t even see a price to book for this stock. I see an 8x price to sales, which is a lot… but margins are moving in the right direction and should really move when the company becomes profitable.
Chart
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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