As we enter into the 4th Industrial Revolution, we see the world’s economy emerge from the depths the pandemic. It is now digitalized with an ambition like never before.
Social gatherings/events are back in business, and attendees are looking for a way to emerge from their lockdowns with a unique fashionable impression that Rent The Runway’s RENT niche digital offering could deliver. This subscription-based platform gives women access to a wide variety of the hottest trends. designerFashions that can be “rented”For upcoming events.
RENT is poised for explosive growth as society moves into a digitally-inclined future.
Rent The Runway’s (RENT), immediately plunged from its IPO pricing last month and continues its slump (now trading 30% lower than its $23 IPO value). This presents us with an excellent opportunity to get in on the emerging digital retail niche of tomorrow before it takes flight. Many leading analysts issued very bullish initiation coverage. reportsThe price targets for RENT range from $20 to $28 (representing an upside 25% to 75%). All covering analysts consider the stock a buy today.
This signal of confidence from the most trusted sell-side analyst should give this stock the green light needed for deep-pocket cash managers to begin buying small-cap equity.
This budding trend in feminine finance was not understood by most fund managers at first. fashionCOVID-related subscription drops from a growth-oriented tech firm is a red alert to those who don’t recognize the value proposition offered by this next-generation retailer platform.
RENT will be releasing its first earnings report as a public company after the bell on Wednesday December 8th, which should generate a nice slingshot price action if RENT reveals the continued margin enhancing subscription growth narrative that its exhibited in the wake of the pandemic’s lockdown trough.
Rent The Runway is emerging from this pandemic with margin-expanding operational improvements and customer loyalty it has never been able to achieve before. While active subscribers almost doubled in 2021’s first half to 97.614 by July’s end, it still falls short of the 133.576 it had prior to the pandemic, With operating margins nearing profitability and growth acceleration evident, RENT is a steal at the 5x forward-price-to-sales level it’s trading at.
It is time to invest in the new normal. RENT is well-positioned to capitalize on society’s digitally-inclined revival. This growth-oriented stock is a great value play today.
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The views and opinions expressed in this article are those of the author and not necessarily those of Nasdaq, Inc.