Dear Investor,
Our Retail research team led by Brian McGough along with Hedgeye CEO Keith McCullough have identified this stock as a high-conviction pick. It perfectly aligns with our triple-tested stock picking process that combines fundamental, quantitative, and macro analysis.
If a stock checks all three boxes, it has the highest probability of massive gains. Here’s how our process works:
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FUNDAMENTALLY APPROVED
The RealReal (REAL) is the world's largest online marketplace for authenticated, consigned luxury goods. By curating a pre-owned luxury supply exclusive to its platform, The RealReal has created a unique niche in the luxury resale market, emphasizing sustainability and boasting a loyal customer base.The retail team got in on this stock at $1. Now, they are projecting growth in many fundamental categories such as Earnings Before Interest, Taxes, Depreciation, & Amortization (EBITDA), Revenue, and margins over the next 3 years. With strong fundamentals and potential for future growth, REAL remains a BUY even after double-digit gains.
Our Retail sector head Brian McGough currently has REAL ranked in his TOP 2 long ideas.
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SIGNAL APPROVED
On top of fundamental analysis from our research team, our quantitative signaling process plays the most important role. Since Hedgeye CEO Keith McCullough’s “signal” turned bullish and it was added to our Signal Strength Stocks product, REAL has gone up 43%.Our signals incorporate fractal-based calculations to get ahead of big stock moves and generate returns.The best part? It’s not too late to get in on this winning stock pick, as our signal remains bullish, predicting further gains for this stock.
However, this relies on a strong overall economy to promote growth. That’s where our extensive Macroeconomic analysis plays a role.
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MACRO APPROVED
Our Macro team utilizes our proprietary Growth, Inflation, Policy (GIP) model to segment the economy into four “Quads.” Currently, as the economy experiences growth acceleration and inflation acceleration in Quad 2, the consumer discretionary sector is expected to outperform.
REAL checks all the boxes in Hedgeye’s risk management process – macroeconomic data, Keith’s market signal, and our research team’s fundamental analysis. By integrating these comprehensive insights, we ensure that our stock picks are robust and well-founded.
Get More High-Conviction Stock Ideas
You can explore our entire list of 50+ high-conviction stock ideas backed by our reliable risk management process through our product, Signal Strength Stocks.
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Best,
The Hedgeye Team
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Price movements above were calculated based on the closing price on the date the stock idea was added to Hedgeye's top Signal Strength Stocks list and the closing price on June 5, 2024. Other stocks have been added that are not mentioned above. Results vary. |
