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2019 IPOs: Are They Buying Opportunities?

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  • (0:30) - 2019 IPOs: Are There Buying Opportunities?
  • (5:15) - Tracey’s Top Picks
  • (18:25) - Episode Roundup: FSLY, SDC, PING, IMND, PINS

Welcome to Episode #199 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going solo to take a look at the 2019 IPO market.

IPOs: Not Always the Hottest Ticket

Year-to-date, according to Renaissance Capital, there have been 136 IPOs which is down 22.3% from this time a year ago.

In 2018, there were a total of 190 IPOs.

The cycle high appears to be 2014, when there were 275 IPOs.

But even though the number has declined this year, many highly-anticipated unicorn companies managed to go public this year, including Lyft and Uber.

However, some of the IPOs have had trouble taking off. Some are even trading below their IPO price.

That could mean there are some IPOs which have suddenly gone on sale.

2019 IPOs: Are They Buying Opportunities?

1.       Fastly, Inc. (FSLY - Free Report) has an edge cloud platform that handles hundreds of billions of Internet requests a day. It went public in May 2019. Shares are down 13.9% year-to-date. It missed in its first earnings report but reports its second one on Nov 7. Is it a deal?

2.       SmileDirectClub SDC sells clear orthodontic aligners direct to consumers. With a market cap of $4.5 billion, it went IPO in Sep 2019. Shares are already down 29.6%. It’s expected to report its first earnings report on Nov 12.

3.       Ping Identity PING offers the Ping Intelligent Identity Platform to customers. It’s got a leg up on some of the other IPOs in that it is expected to see positive earnings in both 2019 and 2020. The shares have fallen 16.9% year-to-date however and now trades with a forward P/E of 48.5.

4.       InMode Ltd. INMD develops RF based devices for use in plastic surgery and dermatology. Basically, you can look good without undergoing the knife. It, too, already has positive earnings with analysts expecting $1.38 in 2019 on 47.3% sales growth. Shares are up 133% year-to-date but still trade with a reasonable growth P/E of 22.6.

5.       Pinterest PINS is one of the unicorn IPOs with a market cap of $14 billion. While shares have been volatile since its April 2019 IPO, they’re up only 4.3% year-to-date. Earnings are out on Oct 31. Is this a buying opportunity?

What else do you need to know about 2019 IPOs?

Find out on this week’s podcast.

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