With the S&P 500 hitting new highs every week, it seems the case for growth or value investing at the other end of market is a fool's errand. Why not just ride the Nvidia [NASDAQ:NVDA] wave to its next high?
I'm on a tour this month of growth and value opportunities in global stock markets, and this week I'm looking at US equities. It is part of an experiment I'm carrying out to see whether my stock screens are fit for purpose in identifying small cap opportunities. In my last report, I looked at Asia stocks.
1. Hanesbrands
Multi-national clothing making Hanesbrands [NYSE:HBI] has seen a recent rally in the its stock price, which brought it to my attention. The stock popped from $4.25 to hit a recent high around $5.5. The company announced results on 15 February, and said it exceeded year end goals with respect to its four key 2023 performance metrics. It has been working to unlock tied-up working capital, ending the year with inventory below $1.4bn. It realised $562m from operations, exceeding expectations. Management says it remains cautious about the retail climate in its core North American markets and overseas. Wall Street, however, seems pleased with the numbers.
- Baillie Gifford US Growth: A rising star in North America
- US stock tip: The ultimate gold mining bet
- Albion Development: Investing in innovative UK companies
2. WK Kellogg Co
In October 2023 WK Kellogg Co [NYSE:KLG] spun out of the original Kellogg Company, which has rebranded as Kellanova. WK Kellogg was listed on the NYSE last autumn. It owns all the usual cereal brands you know and love and see in supermarket aisles in Europe and the US. After the IPO WK Kellogg stock did what most IPOs in 2023 did, and cratered. It dropped from $17 to hit $9.80 by Halloween. However, the stock has since recovered somewhat. Although still off by 14% since the IPO, it has clawed back a lot since Christmas. Investors should focus particularly on the jump in the stock in February which rose from $12.45 to currently trade at $14.53. I smell hedge fund action.
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