Latest news with #AtlanticusHoldingsCorporation
Yahoo
30-03-2025
- Business
- Yahoo
Atlanticus Holdings (ATLC): Among Top High-Risk, High-Reward Growth Stocks To Buy Now
We recently curated a list of . Here, we take a detailed look at Atlanticus Holdings Corporation (NASDAQ:ATLC) and its ranking among the top picks. The stock market has an ever-changing environment, leaving investors constantly looking for opportunities that promise substantial returns for their investments. Gaining a consistent placement in the portfolio of such investors is a growth stock. These growth stocks have historically been highly valued among investors seeking high investment returns. However, another essential characteristic of a growth stock is the risk proportional to its level of return. In other words, growth stocks may deliver significant capital appreciation but have heightened volatility. Changes often influence the volatility of growth stocks in market conditions. In this regard, the U.S. market conditions underwent many changes soon after the new U.S. president entered the Oval Office. The new tariffs brought into practice have created tension between the U.S. and its neighboring countries, including Mexico and Canada. CNBC has reported that owing to the change in tariffs, the price of many commodities, including cars, has risen. It heavily impacted the U.S. stock market. Even the tech industry, which garnered high expectations, saw a decline since the beginning of 2025, though investors still regard many companies in the industry as worthy investments. READ ALSO: While investors fear a potential rise in inflation and recession in the following months, some growth stocks are performing better while accumulating a high risk level. Compared to other stocks, their performance must be considered before deciding to welcome these stocks into the portfolio. During the past decade, growth stocks have significantly outperformed their value counterparts. A report by Vanguard stated that during the last 10 years, the U.S. growth stocks have performed better than the U.S. value stocks by an average of 7.8% per year. The upward trend increases the attractiveness of growth stocks for those seeking high returns. On the other hand, stock markets can be cyclical, with growth and value stocks shifting their leadership roles in the market. The cyclical nature suggests that growth stocks may enjoy periods of dominance, but they are not to be mistaken as immune to market rotations, which may favor value stocks. A proper approach is necessary when investing in high-risk, high-reward growth stocks. The growth stocks may either belong to companies in emerging industries or be in possession of innovative products or services that could quickly attract the market. Though investors may be attracted to the stocks' potential for substantial gains, they also need to be cautious of the associated risks, and hence, the approach should involve thorough research and a well-considered investment strategy. The list we have created here could offer some assistance in an informed decision-making process for investors with respect to growth stocks. We applied a screening approach when curating our list of 11 high-risk, high-reward growth stocks to buy now. The selection criteria primarily focused on companies with strong earnings and sales growth. Since we wanted our list to be comprised of stocks with high historical performance and future potential, we considered only those with an EPS growth rate of 20% in the past five years and as the next five years' projection. Also, only the companies with a sales growth of more than 20% in the last five years were incorporated into the list. We considered the stocks' volatility and set the beta threshold at 1.5. Finally, market capitalization was restricted to small-cap and more extensive ($300 million+). Additionally, we looked into the number of hedge funds backing the stocks to understand the institutional interest in the stock. For this purpose, we used the Insider Monkey database of Q4 2024. The stocks are ranked according to analysts' upside potential. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An aerial view of a large auto finance facility, the cars inside the facility reflecting the company's growth. Engaged in business under the financial services sector, Georgia-based company Atlanticus Holdings Corporation (NASDAQ:ATLC) specializes in consumer credit and lending solutions. Underbanked customers are the segment targeted by the company. They attract these customers through tailored credit programs. The business strategy of data-driven risk assessment and a diverse lending portfolio allows the company to create a strong customer base in the U.S. Fourth quarter earnings results showed a 14.4% increase in revenue to $353.2 million in 2024. Additionally, Atlanticus Holdings Corporation (NASDAQ:ATLC) has recorded serving over 3.7 million total accounts, with 368,000 new accounts served during the quarter. In 2025, the revenue growth is expected to surpass portfolio expansion, assuming the favorable interest rates and regulatory changes. Sporting a beta of 2.19, Atlanticus Holdings Corporation (NASDAQ:ATLC) is subject to substantial risk proportionate to its return potential. The company has maintained a steady 24.13% sales growth over five years, while EPS has increased by 23.59% during the same period. The future earnings outlook appears stronger, with a forecasted 44.07% growth. Atlanticus Holdings Corporation (NASDAQ:ATLC) has attracted 10 hedge fund investors, listed in Insider Monkey's Q4 2024 database. Analysts estimate a one-year potential appreciation of 32.60%, indicating a strong confidence in the company's ability to sustain profit. Overall, ATLC ranks 6th on our list of high-risk high-reward growth stocks to buy now. While we acknowledge the potential for ATLC as an investment, our conviction lies in the belief that some AI stocks hold more significant promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATLC but that trades at less than 5 times its earnings check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-03-2025
- Business
- Yahoo
One Atlanticus Holdings Insider Raised Their Stake In The Previous Year
Viewing insider transactions for Atlanticus Holdings Corporation's (NASDAQ:ATLC ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold. Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether. View our latest analysis for Atlanticus Holdings Over the last year, we can see that the biggest insider purchase was by insider Frank Hanna for US$7.4m worth of shares, at about US$28.21 per share. We do like to see buying, but this purchase was made at well below the current price of US$48.64. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Atlanticus Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Atlanticus Holdings insiders own 63% of the company, worth about US$419m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. It doesn't really mean much that no insider has traded Atlanticus Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Atlanticus Holdings insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Atlanticus Holdings you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
