The only reason to buy a stock right now is if it has a good chance of delivering returns in excess of the market average.
One way investors can increase the likelihood of picking stocks of this ilk is by sussing out operational patterns the market isn’t cluing into, which any reasonable investor would expect to be reflected positively in the share price, all things being equal.
This week’s trio of market-moving stocks shows evidence of these patterns on the income statement level, which, when combined with high-conviction assets and management teams, makes them prime candidates to buy right now.
Nerds on Site
Nerds on Site, founded in 1995, is a cybersecurity and IT services provider to small and medium-sized enterprises across North America. The company serves over 12,000 clients per year and boasts a 96.7 per cent client satisfaction rate.
Despite reducing net losses by almost 80 per cent since 2020, marked by consistent annual improvements in gross profitability since 2022, Nerds on Site stock (CSE:NERD) has added only 10 per cent over the period. Such a contrast between market perception and gradually developing operational quality, in the hands of a founder-led management team, is the stuff of due diligence dreams.
Charlie Regan, Nerds on Site’s chief executive officer (CEO), joined Stockhouse’s Coreena Robertson to discuss the company’s Q1 results and plans for the rest of 2024. Watch the interview here.
Tribe Property Technologies
Our next candidate for a stock to buy right now is Tribe Property Technologies, the second-largest multi-family rental management company in Canada. Tribe is focused on growing the reach of its technology platform, whose ability to decrease customer acquisition costs, increase retention and enhance value through add-on products and services has led to increasing market share.
The company delivered on revenue growth every year since inception from C$15.83 million in 2021 to C$19.39 million in 2023, and recently completed an acquisition granting it a proforma revenue run-rate of over C$31 million. According to Tribe’s Q2 2024 results, management has guided this growth in line with shareholder value, forecasting positive adjusted EBITDA by the end of 2024 and positive cash flow in 2025.
Despite near-term profitability and a wealth of real estate experience to fall back on, Tribe Property Technologies stock (TSXV:TRBE) remains down by about 90 per cent since inception in March 2021.
Joseph Nakhla, Tribe’s CEO, spoke with Coreena Robertson about the efficiencies managers are benefitting from thanks to the company’s Tribe Home community management platform. Watch the interview here.
Mundoro Capital
Our final stock with a compelling case for buying right now is Mundoro Capital, whose portfolio of 10 base and precious metal properties generates cash flow through royalties and option agreements. The portfolio is predominantly focused on copper in the Western Tethyan belt in Eastern Europe and the Laramide belt in the southwest United States.
Mundoro’s mining-focused management team grew fees earned by 28x from 2016 to 2023, producing positive cash flow from operations in the latter year and positive net income in Q3 2023, Q4 2023 and Q1 2024.
The company expects positive momentum in 2024 with multiple self-funded and partner-funded exploration programs on the go – as detailed in its Q2 2024 report – recently yielding large-scale porphyry targets at its Timok properties in Serbia.
Despite operations on a clear path to profitable growth, Mundoro Capital stock (TSXV:MUN) has awarded investors with only an 8.82 per cent return since 2019.
Teo Dechev, Mundoro’s President and CEO, sat down with Lyndsay Malchuk to shed light on new targets at the company’s Trstenik project in Serbia in partnership with BHP Exploration. Watch the interview here.
Join the discussion: Find out what everybody’s saying about these stocks to buy right now on the Nerds on Site Inc., Tribe Property Technologies Inc. and Mundoro Capital Inc. Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Nerds on Site Inc., Tribe Property Technologies Inc. and Mundoro Capital Inc., please see full disclaimer here.
(Top image: Adobe Stock)