NIA has created an exclusive must-see chart of enterprise value/revenue ratio comparisons for the companies: Sterling Infrastructure (STRL), Lifeway Foods (LWAY), Daktronics (DAKT), Paltalk (PALT), and Zedge (ZDGE).
For each company we included their current vs. 7-year median enterprise value/revenue ratios, and their current % from their 7-year median enterprise value/revenue ratios.
NIA has concluded the following based on this chart and many additional fundamental/technical factors:
STRL and PALT are both fairly valued at their respective current enterprise value/revenue ratios and are likely to trade sideways for the time being.
LWAY is the only stock of these five companies that is likely to make a short-term dip due to its 14-day relative strength index (RSI) of 84.21 indicating that it is technically overbought. Although it could possibly have one or two more up days, it is a bad idea to chase it here.
DAKT and ZDGE are the only two stocks of these five companies that are likely to make huge short-term gains.
DAKT is the fastest growing company of the five on this list with its revenue per share increasing by 55.11% over the last 24 months vs. the revenue per share of STRL increasing by 32.36% over the last 24 months.
DAKT deserves a premium enterprise value/revenue ratio over its 7-year median that is similar to STRL.
If you apply the same STRL premium of 162.04% to the 7-year median DAKT enterprise value/revenue ratio of 0.416, it will give DAKT a current enterprise value/revenue ratio of 1.09. This would value DAKT at $18.14 per share.
ZDGE is the second fastest growing company of the five on this list with its revenue per share increasing by 48.53% over the last 24 months vs. the revenue per share of PALT declining by 40.19% over the last 24 months. Incredibly, ZDGE has a current enterprise value/revenue ratio of 0.403, which is almost as low as the current PALT enterprise value/revenue ratio of 0.367. This means ZDGE has miniscule downside risk with massive short-term upside!
PALT is the only company of these five with negative operating cash flow. ZDGE deserves a MUCH higher enterprise value/revenue ratio than PALT.
ZDGE normally has the highest enterprise value/revenue ratio of these five companies because it has the highest gross profit margins.
ZDGE has a current enterprise value/revenue ratio that is at a discount of 80.11% below its 7-year median.
ZDGE by returning to its 7-year median enterprise value/revenue ratio of 2.026 would be worth $4.97 per share.
ZDGE is the most undervalued NYSE/AMEX/NASDAQ stock.
DAKT has the most bullish chart out of all NYSE/AMEX/NASDAQ stocks, but DAKT is only likely to rise to $18.14 per share.
ZDGE is likely to outperform DAKT!
ZDGE and DAKT are likely to both outperform 99% of all other NYSE/AMEX/NASDAQ stocks.
Only a very small number of NYSE/AMEX/NASDAQ listed gold explorers or other resource related stocks could potentially outperform ZDGE and DAKT, but most of the highest quality gold exploration stocks with the best assets and most experienced management in top jurisdictions like Nevada are listed in Canada on either the TSX or TSXV.
ZDGE and DAKT are likely to outperform nearly all NYSE/AMEX/NASDAQ stocks that are unrelated to gold, silver, platinum, etc.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.
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