Investideas

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.

What's the idea? Origin Materials operates in a large and growing market that is actively supported by the government. Over the past decade, Origin Materials has created significant barriers to market entry by competitors thanks to the company’s extensive patent portfolio. Despite its early stage of development, Origin Materials is already facing huge demand for its products. The company is expected to start generating revenue in 2023 and then grow at a compound annual rate of 84.24% through 2030. According to the Wall Street consensus, the stock has an upside potential of 112.5%. According to our estimate, ORGN's fair value is $16.6, which implies an upside potential of 111.7%

What's the idea? Despite the headwinds that the digital advertising market is facing, the industry can provide Digital Turbine with significant room for growth in the long term. SingleTap licenses have great potential as the solution increases app downloads and improves the return on investment (ROI) of advertising campaigns. Partnerships with major technology companies can ensure SingleTap's widespread adoption, which will lead to a significant increase in Digital Turbine's revenue. The company actively attracts foreign clients. Overseas, revenue per app user is lower than in the US, providing room for catch-up growth. The company has the potential for further profitability increase through revenue growth and improved operating leverage. Digital Turbine trades at a discount to the industry average. According to the Wall Street consensus, the stock’s upside potential is 62.45%.