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Smile Direct: Growth Stock Trading At Value Multiples

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Smile Direct (SDC - Free Report) shares have been getting torn apart since its IPO in mid-September, with the stock declining roughly 50% since. The stock has been on a downward trajectory since with every drop appearing to be another buying opportunity. Analysts are calling this a buy across the board with an average price target of $21.50. This would represent an over 150% gain from what the stock is trading at today.

This company is a driving force in the next era of medical treatment, where ease and convenience are the underlying stimulus. Millennials and Gen Z’s value appearance with social media making all your images are worth a thousand words. SDC offers consumers a more convenient and cheaper option to straighten out your smile compared to traditional orthodontists.

The most recent Q3 earnings beat both top and bottom-line estimates, but investors still traded this down due to soft management guidance. The short-sellers are still in the market, but I don’t think they will last much longer. I believe that once the shorts exit the market, a strong rally will begin.

SDC has fallen below the overall market P/S, which is astounding considering its massive growth outlook. I am looking for a volume-driven reversal to put on a large position in this revolutionary company.

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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

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