There are numerous speculations about the recent expressive rise in MGLU3 In the purse. After all, his shares fell about 30% between February and July of this year, but they resurrected and rose almost 60% between August 1st and 24th. Until the closing of this Wednesday, 24, it was already hitting a high of 8%, but that may just be a chicken flight.
This is because the macroeconomic scenario is still uncertain, affecting retailers that demand high credit and with products that have become very expensive in recent times, such as home appliances. What compromises the banks of the Magalu.
Proof of this is that Luiza Trajano’s empire announced a bad quarterly result, with an 8% drop in same store sales (total revenue from sales in stores) and a loss of R$ 112 million. In this sense, the company’s valuation is not justified, especially given the current challenging scenario. That doesn’t mean it’s an action for you to discard. That’s not the point.
‘It is one of the cheapest in the retail sector today’
This is the opinion ofthe equity analyst and head of research at Vitreo, Sergio Obawhich suggests investing in a apparel retailer with high upside potential (release a free report on it here).
This retailer is extremely cheap on the exchange, with attractive numbers and off the radar of investors, but which has everything to become a phenomenon in the post-crisis period. That is, when inflation and interest rates stabilize.
The projection of Oba’s team is that it can reach R$ 7 given its operational potential. This equates to a rise of over 170% from Monday’s close (22).
In fact, this has already started to happen: in the last 30 days alone, it has gone up 20%. And her recent Q2 2022 data indicates that this is just the tip of the iceberg. While the same store sales of Magalu fell 8%, for example, that of this off-the-radar retailer rose 21.3% compared to the same period in 2021.
In addition, Ebitda (earnings before taxes, depreciation and amortization) rose by more than 100% in the same period of time. And it doesn’t stop there: sales of the digital platform grew 86% compared to the second quarter of two years ago.
One of the reasons cited for this expressive potential, according to Sergio Oba, are:
- Series of improvements and structural adjustments implemented;
- Directing effort to position itself strategically, which tends to take the retailer to another level;
- Strong presence in digital sales channels;
- Differentiated logistics optimization;
- Gross margin above 50% in the latest figures reported by the company.
It is worth noting that throughout its history, it was one of the first fashion networks to create a virtual store, today it is still present in several regions of the country, through its physical stores, not to mention its presence in e-commerce.
In addition to having everything to value herself, she still has a huge discount compared to her peers, at the same time that it presents a high level management and an increasingly structured operation.
One of the indicators that show this is the firm’s value over Ebitda. The smaller it is, the more attractive the action. Check out:
Relative analysis FV/Ebitda: Share vs Ebitda of peers.
In fact, the company has everything it takes to become the biggest phenomenon in retail and be a golden gem for those who want to multiply their wealth.
That’s why we invite you not to waste any more time looking only at famous retailers and getting to know them in depth. andthis other one that is off the radar. In fact, when I say “off the radar”, it’s not bullshit.
In the last 12 months alone, while investors were researching famous stocks on the stock market, such as Magazine Luiza and Via Varejo (owner of Casas Bahia and Ponto Frio), this opportunity remained completely forgotten by the market, according to data from Google Trends. Check out:
Now, if you want to give at least a chance to get to know this action in depth, just release your access to the free report that we release for you in the link below.