2024-07-13 13:01:53 ET
Summary
- OPEN had naturally underperformed the wider market once the inflation rose and the Fed hiked interest rates in early 2022.
- With those headwinds behind us, OPEN now offers a compelling investment thesis for opportunistic investors looking to ride the great upside.
- The management has continued to report robust inventory metrics and expanding spreads, as observed in the promising FQ2'24 margin guidance.
- While OPEN remains highly shorted despite being a penny stock, we believe that the cooling inflation and the potential Fed pivot in September 2024 may bring forth great tailwinds.
- With 2025 likely to bring forth higher home transactions and improved top/ bottom-line performances, we believe that the stock remains a Buy for value and growth oriented investors.
We previously covered Opendoor Technologies (NASDAQ: OPEN ) in March 2024, discussing why we had maintained our Buy rating, thanks to its improving profit margins, healthier inventory levels, and promising FQ1'24 guidance....
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For further details see:
Opendoor: The Fed Pivot May Jumpstart Its Prospects