3 Low-Key Stocks With High-Key Potential

Core Insights - The article highlights investment opportunities in lesser-known stocks that have shown strong growth potential, particularly in the fintech and cosmetics sectors [2][10]. Group 1: Sezzle (SEZL) - Sezzle is a fintech company specializing in "Buy Now, Pay Later" solutions, with a market cap of $470 million and a P/E ratio of 37 [3]. - The stock has nearly quadrupled year-to-date, driven by an increase in user accounts [3]. - Sezzle's fiscal 2024 guidance for GAAP net income has been raised from $20 million to $30 million, indicating a 50% increase in a single quarter [4]. - Revenue guidance has also been increased to project 25% year-over-year growth, up from a previous estimate of 20% [4]. - In Q1 2024, Sezzle reported a 35.5% year-over-year revenue increase and a 364.3% year-over-year rise in net income, achieving a net profit margin of 17% [11]. Group 2: E.l.f. Beauty (ELF) - E.l.f. Beauty reported a 71% year-over-year revenue growth in Q4 FY24, attributing this success to retailer and e-commerce channels [6]. - The company has gained market share for five consecutive years and has seen 21 consecutive quarters of net sales and market share growth [6]. - E.l.f. Beauty's shares have increased by 51% year-to-date and over 1,500% in the past five years, showcasing impressive revenue growth [13]. - The company generated $88 million in GAAP net income in Q1 2024, a significant turnaround from a $34.4 million net loss in the same quarter last year [15]. - E.l.f. Beauty is expected to continue its growth trajectory into fiscal 2025, particularly as it captures market share from slower-growing competitors [14]. Group 3: SoFi (SOFI) - SoFi is a fintech firm offering a range of financial services, including bank accounts and loans, but has faced a 34% drop in share price year-to-date [8]. - The company reported $645 million in revenue for Q1 2024, reflecting a 37% year-over-year improvement [15]. - Memberships have grown to 8.1 million, a 44% increase compared to the same quarter last year, with the lending segment contributing significantly to revenue [16]. - Despite recent challenges, SoFi is positioned to diversify its offerings and potentially recover quickly once momentum builds [17].