Alphanso’s AI Stock Research picked EXTR as one of the top stocks of the year.
Alphanso rating: 8.4/10
Return potential: 21%
This pick stands out because it demonstrates stellar financial performance and continues to invest heavily in innovation.
Fundamental Metrics:
- The free-cash-flow yield of 5.5% trading at 18 PE (fwd) vs sector median 24, indicates the company’s ability to generate cash flows making it a very sustainable business trading at a relatively low price.
- Revenue growth (fwd) of 15% vs sector median 9% and EBITDA growth (YoY) of 31% vs sector median of 0% indicates strong market positioning and increasing economies of scale
- Operating margin of 8.5% vs. sector median 5% and EBITDA margin of 11% vs. sector median of 9% suggests strong pricing power
- ROE of 75% vs sector median of 1% signifies effective management and shareholder focus
- $EXTR has beaten earning expectations 73% of the time in the last 15 years
Technical Metrics:
Based on the Alphanso model, the stock is trading below the expected channel (range) of $23.8 – $24.9
