Investideas

Truist Financial is a major regional player. The volume of assets on the bank's balance sheet exceeds $555 billion, which makes it the country's 7th largest bank by assets. Amid growing uncertainty, depositors are likely to seek shifting some of their savings to the country's largest financial institutions. At the beginning of the banking panic, the thesis could only apply to financial giants such as JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. However, today the list of the most trustworthy companies can also include some regional banks, including Truist Financial.

What's the idea? The rapid collapse of Silicon Valley Bank and Signature Bank once again proved the destructive power of the bank panic run. The financial system’s stability has become a major concern for many investors. A high degree of uncertainty instantly affected the market value of bank stocks. Amid the increased risks of confidence runs and liquidity shortage, the SPDR S&P Regional Banking exchange-traded fund, which holds the stocks of 140 US regional banks, lost more than 26% of its market value. The Invesco KBW Bank's exchange-traded fund, focused primarily on the large-cap financial stocks, such as JPMorgan Chase, Citigroup, Wells Fargo and Bank of America, lost more than 23% of its market capitalization.

What's the idea? Arhaus is focused on a wealthy audience, which is less susceptible to adverse macroeconomic conditions. By focusing on the premium segment, Arhaus has greater pricing power and the ability to pass on price increases to its customers. In the long term, Arhaus has room to more than triple its number of stores. Despite strong growth, the share of online sales in the revenue structure remains low, suggesting significant potential for e-commerce growth. Given that Arhaus still has a weak geographic footprint, there is still potential to benefit from economies of scale and improve operating leverage. The company trades at a discount to the industry average. According to the Wall Street consensus, the upside potential is over 70%.

What's the idea? The tourism industry recovery, supported by the low base effect, pent-up demand and China’s removal of COVID restrictions, will help the company to accelerate growth. The promising Viator segment will support the company's results. High level of financial stability will allow the company to invest in growth in 2023.

What's the idea? The global semiconductor wafer cleaning equipment market is expected to show a high growth rate in the coming years. Analysts believe that the highest growth rate will be observed in the Asian region — the key market for ACM Research. ACM Research announced the launch of two new product categories expected to allow the company to double its target market. Over the years, ACM Research has shown impressive growth rates. The company is expected to double its revenue in the next two years. The stock trades at a discount to the industry average. According to the Wall Street consensus, there is more than 63.79% upside potential.

What's the idea? Increasing interest in golf will attract new customers. Stable high growth rates can boost investors confidence and support stock prices. Increasing EBITDA will reduce the company's level of debt burden. Topgolf Callaway Brands Corp. is a tech-enabled modern golf and active lifestyle company. It provides variety of golfing experiences, designs and manufactures premium golf equipment, sells clothing and other accessories for golf and active lifestyle.

What's the idea? Chegg operates in a large and growing educational technology market. Digital spending is expected to exceed 5% of total education spending. The focus on academic programs allows Chegg to significantly expand the LTV (Lifetime value) of its subscriber base. Prudent strategic management and targeted acquisitions have allowed the company to expand its range of services and significantly deepen its competitive moat. Chegg is able to increase the stock value by almost a quarter through the current share buyback program. Chegg is one of the few companies in the education technology industry with a steady and growing cash flow. According to the Wall Street consensus, the stock has an upside potential of 58.17%.

What's the idea? The past decade has been relatively difficult for investors in small-cap stocks as globalization, moderate inflation and low-interest rates have pushed the values of large corporations to new heights. However, it seems that the economic winds have changed their direction. As businesses reorient on domestic production and capital expenditures grow, the US-focused small-cap companies can show impressive results.

What's the idea? The past decade has been relatively difficult for investors in small-cap stocks as globalization, moderate inflation and low-interest rates have pushed the values of large corporations to new heights. However, it seems that the economic winds have changed their direction. As businesses reorient on domestic production and capital expenditures grow, the US-focused small-cap companies can show impressive results.