CDXC - ChromaDex: Growth At A Reasonable Price
2024-01-23 19:28:50 ET
Summary
- Nutraceuticals and supplements industry is gaining traction due to increasing demand for products that promote well-being.
- ChromaDex Corporation offers an interesting technology and product, Niagen, which boosts NAD+ levels in the body.
- ChromaDex's Q3 performance showed substantial sales growth and improvement in gross margin, making it an attractive investment opportunity.
In the volatile arena of healthcare investments, investors are constantly seeking opportunities that not only offer lucrative returns but also align with the developing trends in the sector. One such promising industry that has been gaining traction is the nutraceuticals and supplement industry. As the global population becomes increasingly health-conscious, there is a surge in demand for products that promote well-being. Nutraceuticals and supplements, which include vitamins, minerals, herbal extracts, and other bioactive compounds, play a pivotal role in meeting this demand. Despite these growing trends, I have decided to avoid these investments due to some of these supplement trends being short-lived. However, I have discovered ChromaDex Corporation ( CDXC ), whose proprietary platform technology, Niagen, is centered on nicotinamide riboside ((NR)) to boost NAD+ levels in the body. Not only does ChromaDex have an interesting technology and product, but they have attractive earnings with Q3 total net sales of $19.5M, representing a substantial 14% increase from the prior year. Considering CDXC’s market cap is only $108M , the ticker is trading around 1.3x price-to-sales and is rapidly approaching breakeven. I believe CDXC is flying under the radar, yet, it offers growth at a reasonable valuation. As a result, I am looking to add CDXC to Compounding Healthcare's “Bio Boom” portfolio watchlist for 2024....
ChromaDex: Growth At A Reasonable Price