LiveRamp (RAMP)
Overview LiveRamp, ticker symbol RAMP, is featured as a top stock pick by Brian Bolan, the aggressive growth stock strategist at Zach’s. The company specializes in programmatic advertising and is set to report earnings on May 22.
Key Highlights
- Zach’s Rank: Currently ranked number three.
- Growth and Value Scores: Rated A for growth and D for value, indicating strong growth potential.
- Earnings Consistency: Historically, LiveRamp has consistently beaten earnings estimates, although the margins of the beats have been shrinking.
- Earnings Estimates: Estimates have remained stable over the last 60 days, with the company expected to report 23 cents per share.
- Valuation Metrics: Trading at 19 times forward earnings, with a price-to-book ratio of 2.3 and price-to-sales ratio of 3.14.
- Growth Projections: Expected to grow sales from $600 million last year to $680 million next year.
- Technical Analysis: The stock has been in an uptrend, with potential to reach $40 if earnings are strong.
Coinbase (COIN)
Overview Coinbase, ticker symbol COIN, is highlighted by Andrew Rocco, a stock strategist at Zach’s and manager of the Tech Innovators portfolio. Coinbase is the largest personal position for Rocco and a significant holding in the Tech Innovators portfolio.
Key Highlights
- Zach’s Rank: Ranked number one, indicating a strong buy.
- Business Model: Leading cryptocurrency exchange platform in the U.S., facilitating the trading and storage of various digital currencies.
- Financial Strength: Coinbase has over $7 billion in cash and minimal debt, positioning it as a fundamentally strong company.
- Valuation Metrics: Trading at 14 times price-to-sales, considered reasonable for its growth prospects.
- Earnings Performance: Reported EPS of $4.40 against estimates of $1.17, with an average EPS surprise of 364.5% over the past five quarters.
- Regulatory Advances: Actively pushing for regulatory clarity in the crypto industry, with recent approvals for Bitcoin ETFs expected to benefit Coinbase.
- Institutional Interest: Increasing institutional investment in Bitcoin and crypto ETFs, with significant positions disclosed by major financial institutions.
- Technical Analysis: The stock shows strong technical patterns, with potential bullish catalysts from regulatory advancements and institutional adoption of Bitcoin.
Conclusion
For the week of May 20, 2024, Zach’s strategists recommend LiveRamp (RAMP) and Coinbase (COIN) as top stock picks. LiveRamp is highlighted for its growth potential in programmatic advertising, while Coinbase is recognized for its leading position in the cryptocurrency market and strong financial performance. Both stocks are positioned for potential positive returns based on their earnings reports and market trends.
