This technology company’s stock has almost recovered from the March market rout and is closing in on its 52-week high.
ChannelAdvisor Corporation (ECOM)
From Upside
ChannelAdvisor operates behind the scenes in the massive e-commerce market. Its software, which tracks inventory, pricing, and order fulfilment, connects retailers to third-party marketplaces run by Amazon, eBay, and Google. The company’s marketing software helps retailers build brand awareness on social media sites like Facebook and Instagram.
ChannelAdvisor is benefiting from a growing footprint that spans some 2,800 clients in more than 75 countries.
The microcap stock is an aggressive holding, partly reflecting a challenging retail environment. Still, ChannelAdvisor looks attractive from several angles. In Quadrix®, it earns an Overall score of 90, reflecting strong ranks for Momentum (97) and Financial Strength (80). The balance sheet has no long-term debt and cash of $52 million, putting net cash at nearly $1.30 per share.
March quarter results should be announced on May 7. Per-share earnings are expected to more than double to $0.09. Per-share profits are projected to advance 13% this year and 35% in 2021.
The stock is being started as a Buy.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, May 2020