Investors are on the hunt for undervalued, underfollowed and emerging stocks, and retail traders have countless methods at their disposal to uncover new information.
For some, this may be overwhelming.
Benzinga’s Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks each week that are just under the surface and warrant attention.
The index layers editorial commentary to help make sense of why these stocks should be of interest and whether investors and casual readers should watch them.
Here is a look at the Benzinga Stock Whisper Index for the week of Aug. 18, 2023.
Nu Holdings NU: The Latin American digital banking company reported second quarter financial results on Tuesday. In the second quarter, Nu added 4.6 million customers to reach a total of 83.7 million. The company is one of the largest digital banks in the world and the fifth-largest bank in Latin America based on the number of customers. Revenue in the second quarter of $1.9 billion was up 60% year-over-year and hit a company record. Along with a strong presence in Brazil, Nu highlighted its growth in Mexico and Colombia, which saw customer bases grow 33% and 133% year-over-year respectively.
Benzinga previously reported that Warren Buffett and Berkshire Hathaway Inc (NYSE: BRK-A)(NYSE: BRK-B) are investors in Nu. Through their investment in Nu, Berkshire Hathaway leaders Buffett and Charlie Munger, who are notorious Bitcoin BTC/USD critics, have exposure to cryptocurrency trading and holdings.
Related Link: 10 Short Squeeze Stocks To Watch
Advanced Health Intelligence AHI: The biometric healthcare company saw increased interest from investors this week after the company announced eligibility for a partial reimbursement from the Australian government. The reimbursement relates to research and development costs, and the company will get around 43.5% of reimbursements back.
Shares of the company are up over 160% year-to-date, with several license agreements announced in recent months.
DLocal Limited DLO: The online payments company saw shares soar Wednesday after reporting second quarter financial results. The company’s revenue and earnings per share results beat estimates from analysts. Revenue in the second quarter of $161.1 million was up 59% year-over-year. DLocal said it saw “strong traction” with its platform solution. Full-year revenue guidance of $620 million to $640 million was maintained by the company.
The company also announced that Pedro Arnt was appointed co-CEO. Arnt recently stepped down from Latin American e-commerce company Mercado Libre MELI after 24 years.
Strong quarterly results, guidance and the new CEO appointment led to a price target upgrade from Susquehanna analyst James E. Friedman, who reiterated a Positive rating and raised the price target from $18 to $24.
Kenvue Inc KVUE: The owner of brands like Tylenol, Listerine, Johnson’s, Aveeno and Neutrogena, Kenvue was spun-out from Johnson & Johnson JNJ earlier this year. Johnson & Johnson announced a proposed offering to exchange shares of the company it owns, which could see it get rid of up to 80.1% of the 89.6% of the company it owns. Johnson & Johnson shareholders have the opportunity to exchange JNJ shares for KVUE shares.
Analysts have been out with mostly positive ratings since the spinoff occurred, and some have pointed to the exchange offer as another positive step for the company. Increased attention to the company by investors could signal the name getting attention due to its strong library of well-known brands and positive analyst commentary.
Hawaiian Electric Industries HE: The utility company has seen its share of negative headlines related to the wildfires across the island state. Hawaiian Electric has drawn criticism for its potential role in the wildfires in Maui. A Wall Street Journal report points to potential lawsuits from customers over the wildfires. The firm's ratings were downgraded to junk status by S&P Global Ratings. Additionally, there are circulating reports of the company seeking financial assistance and considering a potential restructuring.
Shares of Hawaiian Electric are down 70% year-to-date in 2023 and have hit levels not seen in decades.
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