Alphanso’s AI Stock Research picked ANF as one of the top stocks of the year.
Alphanso rating: 8.9/10
Return potential: 20%
This pick stands out because even though it has returned 254% in the past 1Y, in the long term, the company still has a huge opportunity it can capitalise on while returning money to shareholders.
Fundamental Metrics:
- The free-cash-flow yield of 9.2% trading at 13 PE (fwd) vs sector median 15, indicates the company’s ability to generate cash flows making it a very sustainable business trading at a relatively low price.
- EBITDA growth (YoY) of 31% vs sector median of 0% indicates strong market positioning and increasing economies of scale
- Gross margin of 60% vs. sector median 35% and EBITDA margin of 11% vs. sector median of 9% suggests strong pricing power
- ROE of 15% vs sector median of 11% signifies effective management and shareholder focus
- $ANF has beaten earning expectations 66% 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 $72.1 – $74.4
