Shares of Consumer Acquisition Platform System 1 (SST) have gained enviable momentum since their debut on the stock market in January. However, considering the weak profitability of the company, should it now add stock to one’s portfolio? To read. Find out.
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Omnichannel Customer Acquisition Platform System1 Inc. (SST) Inside Los Angeles, California, Debuted in the stock market on January 28, 2022. The company uses technology and data science to drive a responsive acquisition marketing platform. In addition, the company operates a real-time discount code search engine and directory that provides coupon destinations for Internet customers.
Its share price rose 145.5% year-to-date to close at $ 24.45 in yesterday’s trading session.
However, the negative profit margin of SST may raise investor concerns about the near-term prospects. Also, analysts’ price targets indicate a possible fall in the stock, leaving its prospects in the dark.
Here’s how to shape SST performance in the near term:
Poor profitability
The 14.6% follow-up 12-month gross profit margin of SST is 50.3%, 71.3% lower than the industry average. Cash from its $ 60.71 million trailing-12-month operation 79 292.88 million is 79.3% lower than the industry average. Also, its lag-12-months Net income margin And leveraged FCF margins are 7.9% and 47.2% lower than their respective industry averages.
Price targets indicate potential downsides
12 20.50 indicates a price target between the 12 months একটি 16.2% potential upward. Price targets range from a low of $ 15.00 to a high of $ 26.00.
POWR ratings reflect uncertainty
SST has an overall D rating, which is equivalent to selling under our ownership POWR rating Method. POWR ratings are calculated based on 118 individual factors, each factor being weighed to an optimal degree.
Our proprietary rating system evaluates each stock based on eight distinct categories. There is D grade for SST standard. The company’s weak profits are consistent with quality grades.
Out of 89 A-rated stocks Industry – Services Industry, SST is at number 81.
Beyond what I said above, anyone can see the SST rating for quality, stability, speed, growth and feel. Here.
The last row
While the company could potentially capitalize on its multiple strategic acquisitions in the long run, we believe that the potential for SST growth is currently limited due to weak profitability and analysts’ price targets. So we think the stock is gone now.
How System1 Inc. (SST) stacks up against his colleagues?
Although SST has an overall D rating, one might want to consider its industry counterparts, PT United Tractors Tbk (Putki), Coke Holding AS (KHOLY) And DLH Holdings Corporation (DLHC), Which has an overall A (strong buy) rating.
SST shares fell 4 0.42 (-1.72%) in premarket trading on Thursday. Year-to-date, the SST rose 145.48%, compared to a -6.37% increase in the benchmark S&P 500 index over the same period.
About the Author: Pragya Pandey
Pragya is an equity research analyst and financial journalist with a passion for investing. In college he did a major in finance and is currently pursuing a CFA program and is a second tier candidate.
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