Introduction
Previously, I posted an article discussing what current stocks are trending and why. However, this post will be focused on introducing undervalued stocks that are present in today’s market and their growing potential. As an investor the most common struggle is finding undervalued stocks that are projected to grow exponentially in the future. While these markets are often unheard of, they do exist. Some prime examples include: SRM Entertainment, PayPal, and Cybin.
SRM (+8.41%)
SRM entertainment: a product Market that produces innovative Toys and souvenirs for a vast amount of entertainment companies. Some of their most notable consumers include: Universal, Disney, Harry Potter the wizarding world, and Warner Bro’s. Not only does this stock already have a wide variety of consumers, but they believe themselves capable of further expanding their business in the coming year. This year the company is expecting to launch a variety of fresh, fashionable products in Orlando.
In the year of 2023, The company received an impressive revenue of $5,760,533 and while they did have a high net cost of $2,053,859 this was mostly due to the cost incurred by going public. A cost that will be absent in the next annual report. Hopefully, Bringing down the net cost to about $1,000,000. With this change, the revenue can potentially increase to nearly $7,000,000.
In Addition, SRM will be ameliorating their team by bringing in accomplished oriented specialist Mr Clarida. Mr Clarida should lead the product designing team to greatness. As the most accomplished member on the production team, this can only mean bigger, better, and more popular products.
Finally, SRM’s primary clients are amusement parks. As we know, amusement parks are more popular during the spring and summer months than the fall and winter months. Therefore, amusement parks will have to buy its products from entertainment industries in the winter and fall months in order to prepare for their eager customers. It’s best to buy your share of SRM entertainment now in order to get in on the action before fall is in full swing.
PayPal (+.47%)
SRM isn’t the only cheap stock that should skyrocket. The famous PayPal is worth about $58 per share at the moment, however, according to wall street, the price target of paypal is $74.50 a share. Moreover, Paypal had an outstanding revenue of about 8 billion dollars during the fourth quarter of 2023. Not only surpassing wall street expectations but also beating their 2022 earnings by 9%. The revenue is expected to grow even more at a similar pace. In addition, paypal has a significant Price to Earnings ratio of 15.5. In simpler terms, because the PE ratio is relatively low you are expected to make more money per share.
While many investors are concerned over the minimal decline in paypal accounts (2%), it’s important to recognize that minimal decreases in value are to be expected in any stock. In the long run, however, paypal has is protected from falling behind its competitive market due to its networking abilities.Unlike other providers that only grant access to one side of the transaction, Paypal has a unique set up that enables customers and merchants to receive information of both the occurring transactions. While it is possible for other companies to mimic this connection between buyer and seller, it will be costly and difficult to install. In conclusion, because paypal has already set up this relationship between customer and merchant, it has a much better chance of continuing its success in the long run.
Cybin (+10.42%)
Finally, Cybin is a biopharmaceutical company that is in the process of developing two drugs that will revolutionize the way we approach mental health. One of these drugs, the CYB003 proves to be promising. While the drug is still in its trial period it has so far delivered favorable results with a 79% success rate, a full 19% above the average success rate of today’s pharmacy drugs. The difference is that their drug is a psychedelic based drug which if taken in minimal dosage offers peace of mind.
The important thing to consider here is not only how promising this drug sounds to the common people, but how people are becoming more and more aware of mental health. With the attention the issue of mental health is receiving and mental health issues on the rise, a new and improved breakthrough drug is the exact thing that will get people buzzing and like all new trends that support the common person and their struggles, I have no doubt that this drug will be getting a lot of well warranted attention from the thousands of people surviving with chronic depression.
Finally, the company is undergoing dramatic advancements. The company is currently expanding its leading projects. The company believes that it will soon transition from a newly introduced company to a well accomplished pharmaceutical company with more opportunity to research and undergo trials for developmental drugs targeting mental health issues. While of course, Cybin cannot make any promises, it has already demonstrated its capability to expand this fiscal year with its impressive reports and I believe that given the time it will be able to grow to be the next Lilly.
Overall Market Outlook
In Conclusion, while cheap markets with growing potential are difficult to find, they do exist. Today’s blog post covered underappreciated stocks: SRM, Paypal, and Cybin that are well positioned to flourish in time due to their popularity and unique situations. It’s imperative to take advantage of their position and buy now while they are still cheap.
Bibliography
Administration. “SRM Entertainment Strengthens Product Design Team with Michael Clarida.” SRM Entertainment, 18 Mar. 2024, srmentertainment.com/srm-entertainment-strengthens-product-design-team-with-michael-clarida/.
Drury, Keithen. “PayPal Stock Is a No-Brainer Buy Right Now.” Yahoo! Finance, Yahoo!, 12 May 2024, finance.yahoo.com/news/paypal-stock-no-brainer-buy-183000496.html.
Fahel, Gabriel. “Cybin Reports Fiscal Year 2024 Financial Results and Recent Business Highlights.” Cybin.Com, 26 June 2024, ir.cybin.com/investors/news/news-details/2024/Cybin-Reports-Fiscal-Year-2024-Financial-Results-and-Recent-Business-Highlights/default.aspx.
Newsfile Corporations. “A Swell of Insider Purchases Follow Cybin Inc.’s Positive Year-End Update.” Yahoo! Finance, Yahoo!, 8 July 2024, finance.yahoo.com/news/swell-insider-purchases-cybin-inc-123800865.html.
Patel, Neil. “Here Are 3 Phenomenal Reasons to Buy PayPal Stock Right Now.” Yahoo! Finance, Yahoo!, 13 Feb. 2024, finance.yahoo.com/news/3-phenomenal-reasons-buy-paypal-124500546.html.
Patel, Neil. “Is PayPal Stock a Buy?” The Motley Fool, The Motley Fool, 7 Apr. 2024, www.fool.com/investing/2024/04/07/is-paypal-stock-a-buy/#:~:text=Key%20Points,position%20reduces%20risk%20for%20investors.
Zacks Equity Research. “What Makes Cybin Inc. (CYBN) a New Buy Stock.” Nasdaq, 27 June 2024, www.nasdaq.com/articles/what-makes-cybin-inc-cybn-new-buy-stock#:~:text=Investors%20might%20want%20to%20bet,a%20company’s%20changing%20earnings%20picture.