Fintech stock Global-e Online has retaken the 50-day moving average as it forms a base with a buy point of 45.72, according to IBD MarketSmith. GLBE is Monday's selection for IBD 50 Stocks To Watch, which looks at the best stocks in that screen.
On Aug. 31, shares fell in the strongest volume since the base started forming; but they have risen since. That indicates a major shakeout took place.
The stock has a strong Composite Rating of 95. However the EPS Rating of 73 reflects multiple years of losses for the company. More concerning is the weak Relative Strength Rating, which stands at just 44.
Sales growth has ranged between 52% and 79% over the eight most recent quarters. The company posted losses during those periods, however.
Shares gapped below the 50-day line on Aug. 8 after second-quarter results came out. Revenue of $133.3 million increased 53%. The provider of e-commerce services for international businesses also saw gross profit increase 58% to $57.5 million. Losses narrowed to 22 cents per share from 31 cents in the same quarter a year earlier.
For the third quarter, a midpoint sales forecast of $139 million suggests a deceleration to 32% growth. For the full year, the company raised its previous midpoint revenue target to $583 million from $576 million. Analysts polled by FactSet expect sales of $140.4 million in Q3, in line with the company's outlook, with continuing losses of 24 cents per share.
GLBE Among Best Stocks In Cathie Wood ETF
The company went public in May 2021 at $25 per share and reached a high of 83.77 in September of that year. Shares fell to an all-time low of 15.63 in May 2022 and have more than doubled since. The stock has risen nearly 90% so far this year, solidly outperforming the S&P 500's 11% gain.
Global-e facilitates cross-border sales in the U.S., U.K., and other regions. It is a longtime partner of Shopify. GLBE stock belongs to the enterprise software group, which ranks 73rd among IBD's 197 industry groups.
Exchange traded funds that hold the stock include Cathie Wood's ARK Fintech Innovation ETF. GLBE is among the top 10 holdings in the ETF, with a market value of over $40 million as of Monday.
Mutual funds own 57% of shares outstanding. More funds have been buyers over the past three quarters.
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