Investors are on the hunt for undervalued, underfollowed and emerging stocks to spot opportunities. 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 are of interest and whether they broach an area for the investor and casual reader to watch.
Here is a look at the Benzinga Stock Whisper Index for the week of Feb. 16, 2023.
Nu Holdings Ltd NU: Latin American digital bank Nu Holdings reported fourth-quarter results this week that had revenue hit $1.45 billion. The company posted a net income of $58 million in the fourth quarter, which was its second consecutive quarter of profit. The company’s full-year revenue of $4.8 billion was a company record.
Investors could be drawn into the company’s customer growth and market share gains. Nu Holdings added 4.2 million customers in the fourth quarter, taking its total to 74.6 million globally. Higher revenue per customer was seen in the quarter with cross-selling and new product launches.
Nu operates in Brazil, Mexico and Colombia and might not be as familiar to investors looking at U.S. companies. The company added 20.7 million new customers in fiscal 2022. The company’s NuCripto cryptocurrency product has 1.3 million active customers since rolling out in July 2022.
Investors might be starting to catch on to the company with search interest increasing for Benzinga. One of the investors who is a believer in the story of Nu Holdings is Warren Buffett with Berkshire Hathaway Inc BRKABRKB investing in the company before it went public and around the time of its IPO.
Related Link: Exclusive: Why Roblox Is A Key Portfolio Holdings For Ark Invest And How Its Similar To YouTube, MrBeast
Devon Energy Corp DVN: Oil company Devon had shares fall after reporting fourth-quarter financial results. The company reported earnings per share that missed analyst estimates.
Winter weather impacted the company’s production by 2% in the fourth quarter. Guidance for the first quarter might have spooked investors as its in line with the fourth quarter totals.
Oil stocks were big winners in 2022 on the heels of a war in Ukraine and major macroeconomic issues. Devon shares lost 11% in the last five days and are now up only 11% in the last year at $56.01 after hitting a 52-week high of $78.82 in June 2022.
Tenon Medical Inc TNON: Medical device Tenon saw shares surge this week after announcing it was withdrawing a registration statement for conducting a public offering. The stock had huge trading volume and was halted multiple times on the news of the share offering being withdrawn. Shares are up 31% year-to-date even after falling after the huge day and some profit-taking by investors.
Palantir Technologies Inc PLTR: Software company Palantir reported quarterly earnings that came in ahead of analyst estimates. The company also guided for continued profitability after posting its first-ever profitable quarter in company history.
The stock may be drawing increased interest from investors after comments from the company on its earnings call suggested Palantir’s role in the growing artificial intelligence space. The company’s AI advantage was cited as a driver for strong demand.
“We anticipate that this new source of demand will contribute to our growth moving forward, above and beyond what we would have anticipated even late last year,” Palantir CEO Alex Karp said.
Karp suggested Palantir could be four or five years ahead of the competition in the AI space when asked about ChatGPT.
Roblox Corp RBLX: Gaming company Roblox reported fourth-quarter bookings of $899.4 million, up 17% year-over-year and ahead of a Street estimate of $881.4 million.
Metrics such as average daily active users and hours engaged grew on a year-over-year basis, showing the company saw growth in the quarter. The company also said its growth was strong in all geographies and age groups and said usage by people aged 17 or older was strong, suggesting it might have found more ways to keep older kids on the platform.
Roblox partnered with the National Football League ahead of Super Bowl LVII. Two media companies are teaming up to create a series based on a Roblox game, which could bring more attention to the gaming platform in the future.
That’s it for this edition of the Benzinga Stock Whisper Index.
Click on the latest in the Benzinga Stock Whisper Index stocks to watch here:
Stay tuned for next week’s report and follow along with Benzinga Pro for all the latest headlines and top market-moving stories here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
