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Rent the Runway (NASDAQ:RENT) Stock, Option Chain

Rent the Runway

Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories. It gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). The company also gives its subscribers and customers the ability to buy its products through its Resale offering. Its Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear and ski wear.

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Micro-cap stocks are typically categorized as companies with market capitalizations between $50 million and $300 million. However, it&#39;s not a hard-and-fast rule. Many small stocks can fluctuate massively in price over a short time. This can put their value inside or outside that range on a given day.

3 High-Risk, High-Reward Micro-Cap Stocks You Shouldn&#39;t Ignore

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URBN

Rent the Runway (NASDAQ: RENT) is a micro-cap stock whose price target was recently updated by Jefferies. This signals that the name could have nearly triple-bagger upside. According to MT Newswires, analysts at Jefferies updated their price target for the firm on Sept. 6.

Analysts See 180% Upside for Rent the Runway: Should You Buy?

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Micro-cap stocks are typically categorized as companies with market capitalizations between $50 million and $300 million. However, it’s not a hard-and-fast rule. Many small stocks can fluctuate massively in price

Rent the Runway, Inc. - Class A Common Stock

Rent the Runway Inc

RENTOKIL INITIAL 2005 ORD by Rentokil Initial Plc

Rentokil Initial PLC

Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares)

<h3>Gainers</h3>
<ul>
<li><strong>Revolve Gr</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RVLV#NYSE">RVLV</a>) stock increased by 24.8% to $32.46 during Wednesday's regular session. The company's market cap stands at $2.2 billion. The company's, Q3 earnings came out yesterday. </li>
<li><strong>MasterCraft Boat Hldgs</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCFT#NASDAQ">MCFT</a>) stock rose 23.59% to $21.79. The company's market cap stands at $361.9 million. As per the news, the Q1 earnings report came out today. </li>
<li><strong>Super Group (SGHC)</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGHC#NYSE">SGHC</a>) shares rose 16.34% to $4.88. The market value of their outstanding shares is at $2.4 billion. The company's, Q3 earnings came out today. </li>
</ul>
<h3>Losers</h3>
<ul>
<li><strong>iRobot</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRBT#NASDAQ">IRBT</a>) stock declined by 33.2% to $6.96 during Wednesday's regular session. The company's market cap stands at $200.0 million. As per the press release, Q3 earnings came out today. </li>
<li><strong>ODP</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODP#NASDAQ">ODP</a>) stock declined by 15.21% to $26.38. The market value of their outstanding shares is at $885.8 million. As per the press release, Q3 earnings came out today. </li>
<li><strong>Wayfair</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/W#NYSE">W</a>) stock decreased by 14.31% to $37.99. The company's market cap stands at $4.6 billion. As per the news, the Q3 earnings report came out 3 days ago. </li>
<li><strong>Rent the Runway</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) shares decreased by 13.54% to $9.58. The company's market cap stands at $35.6 million. </li>
<li><strong>Cricut</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRCT#NASDAQ">CRCT</a>) stock declined by 13.17% to $5.71. The company's market cap stands at $1.2 billion. As per the news, the Q3 earnings report came out yesterday. </li>
<li><strong>Jiade</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JDZG#NASDAQ">JDZG</a>) stock declined by 12.31% to $0.78. The company's market cap stands at $19.0 million.<br />
<strong>See Also:</strong> <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


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JDZG

MCFT

RVLV

SGHC

9 Consumer Discretionary Stocks Moving In Wednesday's Intraday Session

<p>Micro-cap stocks are typically categorized as companies with market capitalizations between $50 million and $300 million. However, it&#39;s not a hard-and-fast rule. Many small stocks can fluctuate massively in price over a short time. This can put their value inside or outside that range on a given day.</p>
<p>Picking micro-cap stocks can yield massive returns but can also be extremely risky.&nbsp; For example, when NVIDIA&nbsp;went public in 1999, the company had a market capitalization of $279 million. Holding that investment from then to now would have generated a total return of over 300,000%. In other words, a $10,000 investment in 1999 would have turned into over $31 million.</p>
<p>However, micro-caps can also result in shareholders losing all of their investments. <strong>SunPower</strong> (OTC: <a class="ticker" href="https://www.benzinga.com/stock/spwrq#OTC">SPWRQ</a>) is a recent example of this. The company traded in the micro-cap range for several weeks before the NASDAQ delisted it on Aug. 16. It filed for Chapter 11 bankruptcy and is now worth nothing.</p>
<p>Below are three micro-cap stocks with significant potential and significant risk. They sit within or just outside the $50 million to $300 million market capitalization range.</p>
<h2><strong>Can Rent the Runway Get Back on Its Feet?</strong></h2>
<p><strong>Rent the Runway</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rent#NASDAQ">RENT</a>) made a strong name for itself as one of the first entrants into the clothing rental space. The company allows customers to rent uber-expensive designer clothing, costing them much less than buying it outright.</p>
<p>It is improving its financial situation and expects to break even on cash flow this year. However, subscribers to its service are declining as competitors are seeing massive growth.</p>
<p>The rapid expansion in subscribers for competitor Nuuly shows that there is growth to be had in this market. Rent the Runway&#39;s valuation is extremely low, but reinvigorating growth is essential to its long-term success. In August, the company saw a 20% increase in orders in its &quot;reserve&quot; segment, which helped create a flywheel effect to attract more monthly subscribers.</p>
<p>Additionally, the company says the improvements in its website have &quot;almost doubled checkout completion rate compared to the first half of the year.&quot; This means customers are buying products more often rather than leaving them in their cart. Lastly, the company hired a new Chief Marketing Officer in March to reignite customer interest.</p>
<h2><strong>374Water&#39;s Hopes Lie in Central Florida</strong></h2>
<p><strong>374Water</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/scwo#NASDAQ">SCWO</a>) is a wastewater treatment company that is developing a new technology for this industry. It is currently at a crossroads as it tests its products with the City of Orlando.</p>
<p>If the tests are successful, the city said it intends to purchase multiple units from the company.</p>
<p>These purchases would mark the&nbsp;company&#39;s first significant revenue. The firm announced just last week that its&nbsp;systems are up and running in Orlando and should provide&nbsp;periodic updates about the project. The company will also use its Orlando operation to demonstrate the tech to potential federal and industrial customers. So, it may be able to parlay this into many more customers than just the city.</p>
<p>These updates will be key tests of the technology. They should greatly affect 374Water&#39;s chances of long-term commercial success.</p>
<h2><strong>Skye Bioscience: A Weight Loss Drug Boom or Bust?</strong></h2>
<p>Last on the list is <strong>Skye Bioscience</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/skye#NASDAQ">SKYE</a>). Skye is a clinical-stage pharmaceutical company that is developing a different type of weight loss drug. Recently, GLP-1 agonist drugs have seen massive commercial success. Skye&#39;s drug, nimacimab, is a CB1 inhibitor. It is intended to have similar weight loss effects as GLP-1 drugs like Ozempic and Zepbound but works through a different mechanism.</p>
<p>The hope is that the successful development of a CB1 drug could open up a new market of customers who respond better to its mechanism of action compared to GLP-1s. CB1s could also possibly be used together with GLP-1s to compound their effects. However, CB1s have a history of inducing negative psychological effects. <strong>Novo Nordisk</strong>&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvo#NYSE">NVO</a>) CB1 inhibitor was shown to have those same problems in recently released results, which caused the company&#39;s shares to fall 5% in one day. However, the drug did show adequate weight-loss effects.</p>
<p>Skye released a statement about Novo&#39;s results, stating that the weight loss results validate Skye&#39;s drug. At the same time, Skye laid out a case for why its drug could mitigate the negative psychological effects. Skye could have a blockbuster drug if nimacimab gets through all Food and Drug Administration trials. But it still has a long way to go, having entered Phase 2 trials in August.</p>
<p>The article &quot;<a href="https://www.marketbeat.com/stock-ideas/3-high-risk-high-reward-micro-cap-stocks-you-shouldnt-ignore/">3 High-Risk, High-Reward Micro-Cap Stocks You Shouldn&#39;t Ignore</a>&quot; first appeared on MarketBeat.</p>


3 High-Risk, High-Reward Micro-Cap Stocks You Shouldn't Ignore

<p><strong>Rent the Runway</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rent#NASDAQ">RENT</a>) is a micro-cap stock whose price target was recently updated by Jefferies. This signals that the name could have nearly triple-bagger upside. According to MT Newswires, analysts at Jefferies updated their price target for the firm on Sept. 6. That target now sits at $26 per share, while the company trades at $9.31 per share. This implies that the analyst believes shares could rise 180% from their current level.</p>
<p>To understand this lofty target, I&#39;ll examine the&nbsp;consumer discretionary firm&#39;s operations, competitors, and financial situation.</p>
<h2><strong>Rent the Runway Aims to Offer Customers an &quot;Unlimited Closet&quot;</strong></h2>
<p>Rent the Runway (RTR) is a fashion company with a unique business model. The company is a platform where customers can rent pieces of clothing. It specifically caters to women, allowing them to rent high-priced designer garments. This allows its customers to access these garments for a much lower price than having to buy them.</p>
<p>This opens up the world of designer clothing to many more people, allowing many users to split the cost of those garments. RTR points out that its average customer wears clothes worth 25 times more than what they pay in subscription fees for the service annually. The company aims to provide its customers with an &quot;unlimited closet&quot; as they can swap out their garments for other ones whenever they like. It generates revenue mostly through subscriptions to this service, which cost between $94 and $235 per month.</p>
<h2><strong>RTR: Improving Profitability Big Time, But a Massive Competitor Is Stealing Growth</strong></h2>
<p>Looking at the financials of Rent the Runway, it is a mixed bag. On the positive side, the company is becoming more profitable. The company has increased its gross margin by nearly 600 basis points since fiscal year 2021. Last quarter, its adjusted EBITDA margin was over 17%. That&#39;s a 700+ basis point increase from last year.</p>
<p>Additionally, its free cash flow has increased massively. The number through the first six months of 2024 sits at -$6 million, compared to -$30 million in the same 2023 period. The company says it expects to break even on cash flow in 2024.</p>
<p>Looking at cash flow is particularly important for a firm like RTR over net income, as product depreciation expense equals 21% of its revenue. Depreciation is a non-cash expense; it is an accounting expense. So, this isn&#39;t cash that the company is spending. The company deducts it from its net income but not its cash flow.</p>
<p>The ultimate goal of a business is to generate positive cash rather than a positive accounting profit, i.e., net income. A company&#39;s cash flow paints a better picture of its financial situation.</p>
<p>However, a big problem for RTR is the fact that its active subscribers are declining. The figure fell 3% year over year last quarter. Meanwhile, competitors like Nuuly saw active subscribers grow by 55% last quarter. Nuuly&#39;s average active subscribers now sit at over 250,000, nearly double that of RTR. This is despite the fact that the company has only been active for around five years versus 15 years for RTR.</p>
<p>This difference signals growth in this industry, but it&#39;s not going to RTR. This means that RTR&#39;s offerings are likely viewed as inferior to Nuuly&#39;s and do not give customers the items they want.</p>
<p>Nuuly, owned by the massive firm <strong>Urban Outfitters</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/urbn#NASDAQ">URBN</a>), enjoys a big advantage in acquiring a variety of clothing to offer customers. This is very difficult for the small RTR to compete with. This difference in being able to offer a wider variety of options is a likely source of Nuuly&#39;s superior growth. Nuuly also has a lower price point, offering more casual clothing that can appeal to a wider audience.</p>
<h2><strong>RTR&#39;s Rock-Bottom Valuation Sparks Wall Street Interest</strong></h2>
<p>Despite its issues, it&#39;s hard to dismiss RTR&#39;s extremely low valuation. It is trading at nearly one-tenth of its projected sales over the next twelve months. This is assuredly a big reason why some Wall Street analysts place such large price targets on the firm.</p>
<p>Its increasing profitability is great to see, but it likely needs to see growth reaccelerate before the market will give it any credit. If it can&#39;t, this indicates that RTR&#39;s offerings to customers have fundamental issues, and the company can&#39;t expect to succeed long term. Still, its valuation makes it an interesting name to watch if it can find a way to start growing again.</p>
<p>The article &quot;<a href="https://www.marketbeat.com/stock-ideas/analysts-see-180-upside-for-rent-the-runway-should-you-buy/">Analysts See 180% Upside for Rent the Runway: Should You Buy?</a>&quot; first appeared on MarketBeat.</p>


<p>Jefferies  analyst Ashley Helgans   maintains Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) with a Buy and lowers the price target from $34 to $26.</p>


Jefferies Maintains Buy on Rent the Runway, Lowers Price Target to $26

WIIM

Rent The Runway shares are trading lower. The stock may be moving on continued weakness following the company's Q2 financial results yesterday.

<p><strong>Outlook</strong></p>
<p>For the fiscal third quarter of 2024, Rent the Runway expects:</p>
<ul>
<li>Revenue of between $75 million and $77 million</li>
<li>Adjusted EBITDA Margin of 13% to 15%</li>
</ul>
<p>For fiscal year 2024, Rent the Runway expects:</p>
<ul>
<li>Revenue growth of between 2% to 6% versus fiscal year 2023, an increase versus prior expectations based on stronger business momentum</li>
<li>Adjusted EBITDA Margin of 15% to 16%</li>
<li>Free Cash Flow Breakeven on a full year basis</li>
</ul>
<p>Please see our second quarter 2024 earnings presentation at <a href="https://investors.renttherunway.com/">https://investors.renttherunway.com/</a> under the "Presentations" section for supplemental guidance.</p>


Guidance

Rent the Runway Sees Q3 Revenue $75M-$77M Vs $75.57M Est.; FY24 Revenue Growth Of 2%-6% YoY, An Increase Versus Prior Expectations Based On Stronger Business Momentum

<p>Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) reported quarterly losses of $(4.17) per share which beat the analyst consensus estimate of $(5.47) by 23.77 percent. This is a 47.41 percent increase over losses of $(7.93) per share from the same period last year.  The company reported quarterly sales of $78.90 million which beat the analyst consensus estimate of $77.20 million by 2.20 percent.  This is a 4.23 percent increase over sales of $75.70 million the same period last year.</p>


Earnings

Earnings Beats

Rent the Runway Q2 EPS $(4.17) Beats $(5.47) Estimate, Sales $78.90M Beat $77.20M Estimate

Rent the Runway shares are trading following Q2 financial results.

<h3>Gainers</h3>
<ul>
<li><strong>Singing Machine Co</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MICS#NASDAQ">MICS</a>) shares moved upwards by 27.0% to $0.75 during Monday's regular session. The market value of their outstanding shares is at $7.3 million. </li>
<li><strong>Leslies</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LESL#NASDAQ">LESL</a>) stock moved upwards by 20.39% to $3.01. The market value of their outstanding shares is at $556.5 million. </li>
<li><strong>Polestar Automotive</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSNY#NASDAQ">PSNY</a>) stock rose 13.55% to $1.22. The market value of their outstanding shares is at $2.5 billion. </li>
<li><strong>EZGO Technologies</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EZGO#NASDAQ">EZGO</a>) shares moved upwards by 13.28% to $1.45. The market value of their outstanding shares is at $3.7 million. </li>
<li><strong>VOXX International</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VOXX#NASDAQ">VOXX</a>) shares increased by 12.83% to $5.5. The company's market cap stands at $123.5 million. </li>
<li><strong>Rent the Runway</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) shares increased by 9.98% to $13.44. The market value of their outstanding shares is at $50.0 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li><strong>Sunlands Technology</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STG#NYSE">STG</a>) stock declined by 39.8% to $4.73 during Monday's regular session. The market value of their outstanding shares is at $64.8 million. </li>
<li><strong>LightInTheBox Holding</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LITB#NYSE">LITB</a>) shares declined by 20.59% to $0.52. The market value of their outstanding shares is at $57.3 million. </li>
<li><strong>Four Seasons Education</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FEDU#NYSE">FEDU</a>) stock fell 19.9% to $17.61. The company's market cap stands at $37.2 million. </li>
<li><strong>TH International</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/THCH#NASDAQ">THCH</a>) shares decreased by 11.04% to $0.6. The company's market cap stands at $94.8 million. The company's, Q2 earnings came out 2 days ago. </li>
<li><strong>Mullen Automotive</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MULN#NASDAQ">MULN</a>) shares fell 9.71% to $0.22. The market value of their outstanding shares is at $14.6 million. </li>
<li><strong>BARK</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BARK#NYSE">BARK</a>) stock declined by 9.02% to $1.67. The company's market cap stands at $288.9 million.<br />
<strong>See Also:</strong> <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


BARK

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FEDU

LESL

LITB

MICS

MULN

PSNY

THCH

VOXX

12 Consumer Discretionary Stocks Moving In Monday's Intraday Session

<h4><strong>Key Takeaways:</strong></h4>
<ul>
<li>ATRenew posted strong revenue growth in the second quarter and predicted similar trends in the third, as it banks on rising demand from value-conscious consumers</li>
<li>The recycling specialist is placing greater emphasis on its higher-margin businesses, which it is pursuing partly through growing ties with partners Apple and JD.com</li>
</ul>
<p>&nbsp;&nbsp;</p>
<p>By Doug Young</p>
<p>The&nbsp;<a href="https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-second-quarter-2024-financial-results-302226212.html"><strong>latest financial report</strong></a>&nbsp;from recycling specialist&nbsp;<strong>ATRenew Inc.</strong>&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rere#NYSE">RERE</a>) shows continued progress on several fronts, including improving margins as it emphasizes more profitable businesses and tweaks a major partnership with global smartphone giant&nbsp;<strong>Apple</strong>&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).</p>
<p>At the more macro level, the report&rsquo;s highlights include the company&rsquo;s significant deepening of ties with longtime e-commerce partner&nbsp;<strong>JD.com</strong>&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) through a major new multiyear agreement. That pairing, along with the Apple tie-up launched last year, are rapidly emerging as key partnerships for ATRenew as China aggressively rolls out new policies to achieve its twin goals of boosting consumption and promoting the circular economy.</p>
<p>While other Chinese companies have reported slowing revenue growth as China&rsquo;s economy slows, ATRenew has bucked that trend by maintaining strong double-digit gains by syncing with government priorities and catering to increasingly value-conscious consumers. It forecast that growth would continue into the third quarter as more Chinese cities roll out new programs aimed at boosting consumption through increasingly popular trade-in programs.</p>
<p>&ldquo;We have witnessed a significant shift in consumer behavior with trade-ins becoming a more mainstream choice for consumers seeking to upgrade their electronic products,&rdquo; said ATRenew founder and Chairman Kerry Chen on the company&rsquo;s earnings call last week. &ldquo;Looking ahead to the second half of the year, we anticipate that national policies promoting consumer product trade-ins will provide greater certainty for the industry.&rdquo;</p>
<p>ATRenew reported its revenue grew 27.4% in the second quarter to 3.78 billion yuan ($530 million), slightly topping the high end of its previous guidance range. It predicted the figure would continue growing at a similar rate of between 22% and 25% in the third quarter, potentially topping the 4 billion yuan mark just a year after passing 3 billion yuan.</p>
<p>The big majority of the company&rsquo;s revenue, about 90%, comes from product sales, which grew 29% during the quarter year-on-year, with the rest coming from services.</p>
<p>The company has been honing its operations in the last two years to focus on the most profitable businesses of product refurbishment and directly selling to consumers. Both of those offer higher margins than simpler trading in smartphones, electronics and other products with middlemen buyers and agents. It announced that revenue from its direct-selling business more than doubled in the second quarter, rising 125% year-on-year to 960 million yuan, accounting for about a quarter of its total.</p>
<p>The company also posted strong gains for its two-year-old non-electronics recycling business, which includes such categories as designer bags, gold and even vintage liquors. Transaction value for that part of the business reached 900 million yuan in the second quarter, ahead of 600 million yuan in the previous quarter and up by nearly 400% year-on-year.</p>
<p>The company&rsquo;s non-GAAP operating margin improved by 0.7 percentage points to 2.5%, helping to lift its adjusted net profit to a record 80.5 million yuan from 36.4 million yuan year-on-year. It lost money on a net basis, though the loss narrowed to 10.7 million yuan from 64.8 million yuan a year earlier.</p>
<h4><strong>Growing JD ties</strong></h4>
<p>Despite the broadly upbeat report, ATRenew&rsquo;s shares fell 11.3% the day it announced its results, though they pared some of those losses in the following days. The bigger story is a broader rally for the company&rsquo;s shares, which are up about 35% so far this year, outpacing a far smaller 4% gain for the broader iShares MSCI China ETF.</p>
<p>The stock trades at valuations levels comparable with its global recycling peers, though most of those stocks look relatively undervalued. Its price-to-sales (P/S) ratio currently stands at 0.31, which trails the 0.49 for&nbsp;<strong>The RealReal</strong>&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/real#NASDAQ">REAL</a>) but leads the 0.14 for&nbsp;<strong>Rent the Runway</strong>&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rent#NASDAQ">RENT</a>). All those numbers are well behind the 2.79 P/S for used car trader&nbsp;<strong>Carvana</strong>&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvna#NYSE">CVNA</a>), showing the kind of valuations the other companies could someday fetch.</p>
<p>Next, we&rsquo;ll turn to the new JD.com tie-up, and also look at some of the other developments mentioned earlier. ATRenew is a longtime partner of JD.com, and the latter is a major ATRenew stakeholder with 34% of its shares. ATRenew said the pair signed a new agreement in May running through the end of 2027 that will see them &ldquo;continue to cooperate in the second-hand business by integrating resources and leveraging their respective strengths.&rdquo;</p>
<p>That&rsquo;s quite significant, since JD.com is one of China&rsquo;s top online electronics sellers and has recently ramped up its drive to promote used electronics in sync with the government&rsquo;s latest priorities. As that happens, the value of ATRenew&rsquo;s products traded through JD.com&rsquo;s various platforms doubled in May from a year earlier, and also grew by a similar amount during the June 18 shopping festival, a major online event.</p>
<p>At the same time, ATRenew has been tweaking its other major partnership for iPhone recycling with Apple, which dates back to last year. The company said the partnership had the potential to add up to 1.5 billion yuan to its annual revenue, but it got off to a shaky start due to low margins. Over the past year, however, ATRenew has been tweaking the program and said it achieved the important milestone of a positive gross margin for the business in the second quarter.</p>
<p>More broadly, ATRenew said a growing number of Chinese cities are rolling out programs to encourage trade-ins of used electronics, following the central government&rsquo;s release of an action plan in March for such large-scale trade-ins of consumer goods. The southern metropolis of Shenzhen rolled out a program in July to encourage smartphone trade-ins, and Chen said other cities are now crafting their own phone-specific subsidies at the local level.</p>
<p>&ldquo;In the second half of the year, we expect more cities to introduce similar subsidies, further promoting the effective recycling of items, electronic products within the circular economy,&rdquo; he said.</p>
<p>As it continued to sharpen its focus on its most profitable business lines, and continued efforts to improve efficiency through more automation of its inspection processes and recycling at the city level, ATRenew&rsquo;s operating loss narrowed sharply 5.6 million yuan in the second quarter from 61 million yuan a year earlier. While the company operates profitably on a non-GAAP basis, it could soon also operate profitably on a GAAP basis as well if current trends continue, representing another symbolic milestone for its profitability metrics.</p>
<p class="contributor-disclaimer"><em>This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.</em></p>


Asia

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ATRenew Posts Market-Defying Growth As Partnerships With JD.com, Apple Advance

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Shares of companies within the broader consumer discretionary sector are trading higher following strong economic data that helps ease recession concerns.

ABNB

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Shares of companies within the broader consumer discretionary sector are trading lower amid overall market weakness following weak US data.

<h3>Gainers</h3>
<ul>
<li><strong>JX Luxventure</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JXJT#NASDAQ">JXJT</a>) shares increased by 13.3% to $1.7 during Thursday's regular session. The market value of their outstanding shares is at $10.3 million. </li>
<li><strong>Koss</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KOSS#NASDAQ">KOSS</a>) shares increased by 9.59% to $11.65. The company's market cap stands at $107.8 million. </li>
<li><strong>Greenlane Hldgs</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GNLN#NASDAQ">GNLN</a>) stock rose 7.27% to $0.29. The company's market cap stands at $1.1 million. </li>
<li><strong>Kirkland's</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KIRK#NASDAQ">KIRK</a>) shares rose 4.99% to $1.68. The market value of their outstanding shares is at $21.9 million. </li>
<li><strong>Rent the Runway</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) stock increased by 4.95% to $15.46. The company's market cap stands at $57.5 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li><strong>ToughBuilt Industries</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TBLT#NASDAQ">TBLT</a>) stock fell 10.8% to $4.47 during Thursday's regular session. The market value of their outstanding shares is at $3.4 million. </li>
<li><strong>BurgerFi International</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BFI#NASDAQ">BFI</a>) shares declined by 9.16% to $0.17. The company's market cap stands at $4.7 million. </li>
<li><strong>Golden Heaven Group Hldgs</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GDHG#NASDAQ">GDHG</a>) stock fell 4.85% to $0.18. The company's market cap stands at $9.4 million. </li>
<li><strong>ContextLogic</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOGC#NASDAQ">LOGC</a>) shares decreased by 4.6% to $5.49. The company's market cap stands at $134.3 million. </li>
<li><strong>Lead Real Estate Co</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRE#NASDAQ">LRE</a>) shares decreased by 3.72% to $1.81. The company's market cap stands at $24.6 million. </li>
<li><strong>SRM Entertainment</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SRM#NASDAQ">SRM</a>) stock declined by 3.51% to $1.1. The company's market cap stands at $11.1 million.<br />
<strong>See Also:</strong> <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


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11 Consumer Discretionary Stocks Moving In Thursday's Intraday Session

<p>JMP Securities  analyst Andrew Boone   maintains Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) with a Market Outperform and raises the price target from $20 to $40.</p>


JMP Securities Maintains Market Outperform on Rent the Runway, Raises Price Target to $40

Rent The Runway Sees FY24 Revenue Growth 1%-6%

Rent The Runway Sees Q2 2024 Revenue $76M-$78M

Rent The Runway shares are trading higher following Q1 earnings.

Rent The Runway Q1 2024 EPS $(6.03) Up From $(9.14) YoY; Revenue $75M Up From $74.2M YoY

<h3>Gainers</h3>
<ul>
<li><strong>GameStop</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) stock increased by 78.0% to $41.2 during Monday's pre-market session. The company's market cap stands at $14.4 billion. </li>
<li><strong>MarineMax</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HZO#NYSE">HZO</a>) shares moved upwards by 19.76% to $34.11. The company's market cap stands at $760.7 million. </li>
<li><strong>Koss</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KOSS#NASDAQ">KOSS</a>) stock rose 19.14% to $5.6. The market value of their outstanding shares is at $51.8 million. </li>
<li><strong>Container Store Group</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TCS#NYSE">TCS</a>) stock rose 16.38% to $0.78. The market value of their outstanding shares is at $39.2 million. </li>
<li><strong>Faraday Future</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFIE#NASDAQ">FFIE</a>) stock increased by 15.63% to $0.67. The market value of their outstanding shares is at $296.7 million. As per the press release, Q4 earnings came out 4 days ago. </li>
<li><strong>Rent the Runway</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) shares moved upwards by 11.68% to $26.81. The market value of their outstanding shares is at $99.7 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li><strong>EpicQuest Education Group</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEIQ#NASDAQ">EEIQ</a>) stock declined by 10.4% to $0.75 during Monday's pre-market session. The market value of their outstanding shares is at $9.2 million. </li>
<li><strong>Yoshitsu Co</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TKLF#NASDAQ">TKLF</a>) stock fell 10.16% to $0.22. The company's market cap stands at $9.3 million. </li>
<li><strong>Hall Of Fame Resort</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOFV#NASDAQ">HOFV</a>) stock decreased by 8.63% to $2.33. The company's market cap stands at $15.2 million. </li>
<li><strong>Kirkland's</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KIRK#NASDAQ">KIRK</a>) shares fell 8.28% to $2.27. The company's market cap stands at $29.5 million. </li>
<li><strong>BT Brands</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BTBD#NASDAQ">BTBD</a>) shares fell 7.58% to $1.22. The market value of their outstanding shares is at $7.6 million. </li>
<li><strong>LightInTheBox Holding</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LITB#NYSE">LITB</a>) shares fell 6.62% to $0.55. The market value of their outstanding shares is at $61.2 million. As per the press release, Q1 earnings came out 4 days ago.<br />
<strong>See Also:</strong> <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


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12 Consumer Discretionary Stocks Moving In Monday's Pre-Market Session

<h3>Gainers</h3>
<ul>
<li><strong>Kidpik</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PIK#NASDAQ">PIK</a>) shares increased by 29.0% to $4.31 during Friday's regular session. The market value of their outstanding shares is at $8.4 million. </li>
<li><strong>Gap</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPS#NYSE">GPS</a>) shares moved upwards by 26.77% to $28.55. The market value of their outstanding shares is at $10.6 billion. The company's, Q1 earnings came out yesterday. </li>
<li><strong>Jeffs Brands</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JFBR#NASDAQ">JFBR</a>) shares moved upwards by 24.59% to $0.52. The market value of their outstanding shares is at $4.4 million. </li>
<li><strong>Golden Sun Health</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GSUN#NASDAQ">GSUN</a>) stock increased by 19.23% to $6.88. The company's market cap stands at $13.1 million. </li>
<li><strong>PENN Entertainment</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PENN#NASDAQ">PENN</a>) shares increased by 17.77% to $17.23. The company's market cap stands at $2.6 billion. </li>
<li><strong>LightInTheBox Holding</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LITB#NYSE">LITB</a>) stock rose 15.68% to $0.59. The company's market cap stands at $65.5 million. As per the press release, Q1 earnings came out 3 days ago. </li>
</ul>
<h3>Losers</h3>
<ul>
<li><strong>Lotus Technology</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOT#NASDAQ">LOT</a>) stock fell 20.2% to $10.41 during Friday's regular session. The market value of their outstanding shares is at $7.0 billion. As per the press release, Q1 earnings came out 2 days ago. </li>
<li><strong>Twin Vee PowerCats</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VEEE#NASDAQ">VEEE</a>) shares fell 19.4% to $0.54. The company's market cap stands at $5.1 million. </li>
<li><strong>Yatra Online</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YTRA#NASDAQ">YTRA</a>) shares fell 19.38% to $1.3. The market value of their outstanding shares is at $83.5 million. </li>
<li><strong>Interactive Strength</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRNR#NASDAQ">TRNR</a>) stock decreased by 16.22% to $0.15. The market value of their outstanding shares is at $3.9 million. </li>
<li><strong>Rent the Runway</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) stock declined by 12.34% to $24.8. The market value of their outstanding shares is at $92.2 million. </li>
<li><strong>MGO Global</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGOL#NASDAQ">MGOL</a>) stock decreased by 12.01% to $0.6. The company's market cap stands at $10.9 million.<br />
<strong>See Also:</strong> <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


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12 Consumer Discretionary Stocks Moving In Friday's Intraday Session

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p><strong>Rent the Runway</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/rent-stock-quote/"><strong>RENT</strong></a></span>) has an interesting business model that I believe can be quite effective, especially with economic growth slowing and many consumers looking to reduce their spending.</p>



<p>The company has steadily grown and is becoming more profitable, while the firm appears to utilize effective marketing techniques and the valuation of Rent the Runway stock is quite low. Moreover, I believe that the firm could eventually become a takeover target for a larger company.</p>



<p>On the negative side, the retailer does have a relatively low barrier to entry and a rather high debt load. Therefore, I recommend that risk-tolerant investors looking for a name that can both thrive during a recession and potentially get acquired buy a small amount of the shares.</p>



<h2>An Intriguing Business Model and Improving Metrics</h2>



<p>Rent the Runway <a href="https://seekingalpha.com/article/4695617-rent-the-runway-theres-salvage-value-here?source=content_type%3Areact%7Csection%3Asummary%7Csection_asset%3Aanalysis_analysis%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1">allows consumers to rent</a> designer clothing for a subscription fee of as little as $89 per month. For $89 per month, the company&rsquo;s users can rent five items at a time. </p>



<p>Due to the current high inflation levels, many consumers do not have a great deal of disposable income and consequently are unable to purchase a significant amount of designer clothes. That&rsquo;s because these clothes <a href="https://www.moneycrashers.com/designer-label-fashion-clothing-worth-cost/">can be extremely costly</a>. But conversely, a high proportion of consumers can afford to pay $89 per month to satisfy their craving for designer clothing and their desire to impress their peers and colleagues.</p>



<p>Meanwhile, many of the company&rsquo;s <a href="https://seekingalpha.com/symbol/RENT/income-statement">financial metrics improved</a> last quarter. For example, its operating loss sank to $15.2 million compared to $20.4 million during the same period a year earlier. Rent the Runway&rsquo;s EBITDA loss also shrank to just $60,000 from $7 million in Q1 2023. And importantly, the firm <a href="https://investors.renttherunway.com/static-files/914e6e21-87f5-4944-8af9-19816ed2d115">believes it can break even</a> on a free cash flow basis this year thanks to cost cutting and &ldquo;a wide range of revenue growth strategies.&rdquo;</p>



<p>Moreover, the size of Rent&rsquo;s <a href="https://investors.renttherunway.com/static-files/914e6e21-87f5-4944-8af9-19816ed2d115">active user base has</a> generally steadily increased over the last few years, climbing from 107,000 in Q3 of 2021 to 136,000 last quarter. </p>



<h2>A Potential Takeover Target</h2>



<p>Rent notes it uses many different types of marketing techniques, including &ldquo;<a href="https://blog.hubspot.com/marketing/what-is-earned-media-faqs">earned media</a>,&rdquo; &ldquo;influencer marketing&rdquo; and &ldquo;visual storytelling.&rdquo; The company also noted it utilizes multiple types of emails and text messages. I was impressed by the attractiveness of the company&rsquo;s eye-catching marketing photos. Moreover, the steady increases of Rent&rsquo;s user base indicates its marketing techniques have indeed been quite effective.</p>



<p>On the valuation front, Rent the Runway stock has an extraordinarily <a href="https://finance.yahoo.com/quote/RENT/key-statistics/">low price-to-sales </a>valuation of just 0.3 times. </p>



<p>That valuation is especially tiny because Rent could very well become a takeover target. After all, many brick-and-mortar retailers are struggling to build up their e-commerce businesses. As a result, I believe a large number of them would love the idea of obtaining Rent&rsquo;s list of consumers who are obviously willing to pay significant amounts of money for apparel that they select online.</p>



<p> What&rsquo;s more, with the synergies that Rent would have with a sizeable retailer, Rent&rsquo;s business would probably immediately generate significant, positive cash flow for an acquirer.</p>



<h2>The Negative Aspects</h2>



<p>Rent has relatively low barriers to entry as any apparel retailer could immediately start allowing its customer base to rent clothes online. Consequently, Rent could quickly be hit with very detrimental competition.</p>



<p>Another negative factor is the retailer&rsquo;s <a href="https://finance.yahoo.com/quote/RENT/key-statistics/">high debt load</a>. Specifically, the firm had net debt of about $280 million as of the end of Q1. On the other hand, its <a href="https://www.investopedia.com/terms/c/currentratio.asp">current ratio </a>of 1.6 indicates that it shouldn&rsquo;t have trouble staying afloat for the near-to-medium term. Still, its high debt does create some risk for longer-term investors. </p>



<p><em>On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a></em></p>
<div><p>Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel&rsquo;s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.</p></div><h3>More From InvestorPlace</h3>
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	<p>The post <a href="https://investorplace.com/2024/06/rent-the-runway-stock-the-recession-proof-fashion-play-for-bold-investors/">Rent the Runway Stock: The Recession-Proof Fashion Play for Bold Investors</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Rent the Runway Stock: The Recession-Proof Fashion Play for Bold Investors

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p><a href="https://investorplace.com/stock-types/penny-stocks/">Penny stocks</a> to buy: professionals within the financial advisory industry constantly warn retail investors to stay away from this sector. They&rsquo;re enticing, yes, because they feature a relatively low share price tied to a diminutive enterprise value. Of course, the idea here is that a solid news item can send the underlying security flying. However, the opposite is also true. Speculative entities can quickly flounder.</p>



<p>It&rsquo;s difficult to come across hard statistics that demonstrate the probability of failure. But it&rsquo;s safe to say that you&rsquo;re not going to find any reputable resource telling you that putting significant risk capital in penny stocks is a good idea. Quite the contrary, virtually all organizations <a href="https://www.kiplinger.com/investing/603303/penny-stocks-always-stay-away">tell you to stay away</a>. The ones that don&rsquo;t warn you straight up that you&rsquo;re taking matters into your own hands.</p>



<p>With all that said, not every speculative business will fail. A rare few may end up succeeding. And it&rsquo;s also true that not all Wall Street analysts avoid this subsector. You may be surprised to learn that some experts are willing to put their reputations on the line to spotlight certain compelling ideas.</p>



<p>So, if you can handle the heat, here are penny stocks that can end up buying you a new kitchen and then some.</p>



<h2>Natural Gas Services (NGS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/07/naturalgasstocks1600-300x169.png" alt="Natural Gas Combined Cycle Power Plant with sunset and light orange. Best natural gas stocks to buy."><div>Source: Rangsarit Chaiyakun / Shutterstock.com</div></div><p>Based in Midland, Texas, <strong>Natural Gas Services</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/ngs-stock-quote/"><strong>NGS</strong></a>) falls under the broad energy space, specifically the hydrocarbon equipment and services industry. Financially, it&rsquo;s a decent enterprise, generating net income of $9.47 million over the trialing 12 months (TTM). During this time, revenue reached $131.45 million. What&rsquo;s more, the present quarterly revenue growth rate (year-over-year) clocks in at 38.6%.</p>



<p>The performance has been consistent in the past four quarters since the first quarter of 2024. During this cycle, NGS&rsquo; average earnings per share hit 19.25 cents. This translated to an average earnings surprise of 171.4%. Looking out to the end of fiscal 2024, experts believe that EPS may jump to $1.39. If so, that would translate to expansion of 266%.</p>



<p>On the top line, sales may rise to $150.3 million, implying YOY growth of 24%. In fiscal 2025, EPS may reach $1.44 on sales of $166.25 million. Another factor weighing in on NGS as one of the top penny stocks to buy is the relevance of the underlying business.</p>



<p>Lastly, analysts rate NGS a <a href="https://www.tipranks.com/stocks/ngs/forecast">unanimous strong buy</a> with a $27 price target.</p>



<h2>PHX Minerals (PHX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/naturalgas1600c-300x169.jpg" alt="a gas pipe with the sun going down in the background, natural"><div>Source: Shutterstock</div></div><p>Headquartered in Forth Worth, Texas, <strong>PHX Minerals</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/phx-stock-quote/"><strong>PHX</strong></a>) is also another example of penny stocks to buy within the energy sector. Here, the company operates in the exploration and production (upstream) component of the hydrocarbon value chain. Financially, it appears a relatively solid enterprise, delivering net income of $4.18 million during the TTM period. Also, revenue reached $30.95 million during this cycle.</p>



<p>It must be said that the present quarterly revenue growth rate sits at 41% below parity. That&rsquo;s not great. Also, the bottom-line performance has been shaky in the past four quarters. The average EPS reached 2.75 cents. This translated to a negative earnings surprise of nearly 19%.</p>



<p>For fiscal 2024, analysts don&rsquo;t seem to have much confidence in PHX stock. EPS may land at 9 cents, which would imply a YOY erosion of 77%. Also, sales may slip to $35.45 million, down 20.3% from the prior year&rsquo;s print of $44.46 million.</p>



<p>However, experts rate shares a <a href="https://www.tipranks.com/stocks/phx/forecast">consensus moderate buy</a> with a $5.03 price target. In large part, they anticipate fiscal 2025 sales to rise 34.1% to $47.55 million.</p>



<h2>Gold Royalty (GROY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/12/gold-300x169.jpg" alt="A pile of shining gold bars. Gold stocks"><div>Source: Shutterstock</div></div><p>Hailing from Vancouver, B.C. (Canada), <strong>Gold Royalty</strong> (NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/groy-stock-quote/"><strong>GROY</strong></a>) falls under the basic materials sector. Based on its name, you can figure that it&rsquo;s one of the penny stocks to buy tied to the gold industry. That could be fundamentally intriguing because of the inflation narrative. Rising consumer prices have been sticky and that could cynically bolster the precious metals business.</p>



<p>Royalty firms offer better pricing predictability than pure-play miners because rather than mining the metals directly, they provide upfront capital to pure-play miners. In exchange for that capital, royalty firms receive all or a portion of the sales generated. Streaming is similar expect that the exchange is all or a portion of the metals extracted.</p>



<p>In the TTM period, Gold Royalty lost $25.08 million. However, it generated revenue of $5.17 million. Further, experts believe that by the end of fiscal 2024, sales may rise to $13.38 million. That&rsquo;s up 339%. In fiscal 2025, the top line could soar to $22.07 million, up 64.9%.</p>



<p>Analysts rate GROY stock a <a href="https://www.tipranks.com/stocks/groy/forecast">unanimous strong buy</a> with an average price target of $3.63. That&rsquo;s a very tempting proposition given the fundamentals.</p>



<h2>Rent the Runway (RENT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/12/rent1600-300x169.png" alt="Person holding cellphone with logo of US e-commerce company Rent the Runway Inc on screen in front of business webpage Focus on phone display"><div>Source: Wirestock Creators / Shutterstock.com</div></div><p>Based in Brooklyn, New York, <strong>Rent the Runway</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/rent-stock-quote/"><strong>RENT</strong></a>) falls under the consumer cyclical space. Specifically, it operates under apparel retail. <a href="https://stockanalysis.com/stocks/rent/company/">Per its public profile</a>, the company features 938 full-time employees. Its main business is a subscription model that offers various fashion items and accessories for rent (or resale). Fundamentally, the narrative could be intriguing due to pressures in the consumer economy.</p>



<p>While the broader economy is on a recovery track, it&rsquo;s also evident that we&rsquo;re facing a K-shaped recovery. Some segments of society are doing well while others are falling behind; hence the K-shape reference. Either way, households generally may not want to have their money tied down, especially for cyclical luxury items. In that sense, a subscription or rental business model may make sense.</p>



<p>During the TTM period, Rent lost $105.1 million. However, revenue reached $299 million. For the current fiscal year (2025), experts believe that sales may rise to $307.2 million. If so, that would be up 3% from the prior year. In fiscal 2026, sales could march to $324.4 million, up 5.6%.</p>



<p>RENT isn&rsquo;t profitable yet, which is a concern for many penny stocks. However, RENT also enjoys a <a href="https://www.tipranks.com/stocks/rent/forecast">unanimous strong buy rating</a>.</p>



<h2>Gambling.com (GAMB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/11/dice-chance-gamble-1600-300x169.jpg" alt="A photo of 2 red dice rolling on a black mirrored background."><div>Source: 7th Sun / Shutterstock.com</div></div><p>When you linger in the arena of penny stocks to buy long enough, you&rsquo;re going to come across controversial or &ldquo;questionable&rdquo; ideas. One of those ideas is <strong>Gambling.com</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/gamb-stock-quote/"><strong>GAMB</strong></a>). I&rsquo;m not saying that the business itself is scandalous or anything like that. However, I&rsquo;d be lying if I said that the gambling scene didn&rsquo;t have some reputational concerns.</p>



<p>That said, if you&rsquo;re an ideologically agnostic investor, GAMB stock seems very compelling. First, a memorable name means so much in this hyper-competitive consumer world. What better label is out there than Gambling.com? In my opinion, it&rsquo;s perfect. Plus, you have rising interest in online sports betting and speculation in general. If it were not so, <a href="https://investorplace.com/stock-types/meme-stocks/">meme stocks</a> would not be a thing.</p>



<p>Enticingly, Gambling.com showed net income of $18.96 million during the TTM period. Also, during this time, revenue hit $111.17 million. The current quarterly revenue growth rate stands at 9.5%. For fiscal 2024, analysts anticipate EPS to rise 57.4% to 74 cents. Revenue may gain 11% YOY to hit $120.55 million.</p>



<p>Here&rsquo;s the kicker &ndash; analysts rate GAMB a <a href="https://www.tipranks.com/stocks/gamb/forecast">unanimous strong buy</a> with a $13 average price target.</p>



<h2>Stem (STEM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/01/energy-storage-300x169.jpg" alt="A concept photo of different energy storage systems."><div>Source: Shutterstock</div></div><p>Headquartered in San Francisco, California, <strong>Stem</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/stem-stock-quote/"><strong>STEM</strong></a>) falls under the wide technology ecosystem. Specifically, it operates under the infrastructure software industry. Per its corporate profile, Stem provides intelligent and renewable energy storage network provisions worldwide. With its advanced data analytics and real-time operational controls, it aims to maximize efficiencies of power grids and systems.</p>



<p>Fundamentally, this business could become enormously relevant. While investors are going gaga over artificial intelligence, the reality is that <a href="https://www.tipranks.com/news/article/dont-ignore-cameco-stock-nyseccj-during-the-ai-arms-race">AI isn&rsquo;t free</a>. Because of the explosive demand for digital intelligence and other innovations, the U.S. power grid has become strained. And with these technologies only rising in consumptive force, we may soon have a severe crisis on our hands.</p>



<p>In other words, improving efficiency would be absolutely critical. That should benefit STEM stock. Now, before you get too excited, you should note that shares have cratered 70% year-to-date.</p>



<p>Now, to counter that negative point, analyst do believe that in fiscal 2024, revenue may rise to just under $600 million. That would be up nearly 30%. And the following year, sales could hit $772.59 million, up almost 29%.</p>



<p>Will that be enough? I don&rsquo;t know. But STEM features a <a href="https://www.tipranks.com/stocks/stem/forecast">moderate buy consensus view</a> with a $2.80 price target.</p>



<h2>Red Cat (RCAT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/drone-war-300x169.png" alt="A drone being used by soldiers."><div>Source: Gorodenkoff / Shutterstock.com</div></div><p>Based in San Juan, Puerto Rico, <strong>Red Cat</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/rcat-stock-quote/"><strong>RCAT</strong></a>) falls under the broader technology sphere, specifically computer hardware. <a href="https://stockanalysis.com/stocks/rcat/company/">According to its corporate profile</a>, Red Cat provides products, services and solutions to the drone industry. It specializes in navigation in interior spaces along with dangerous military environments. Based on the present geopolitical backdrop, RCAT might rise on cynical catalysts.</p>



<p>To be sure, Red Cat is wildly speculative, with shares trading hands at only $1.02 a pop. Over the trailing one-year period, RCAT stumbled more than 18%. At the same time, Glenn G. Mattson from Ladenburg Thalmann pegged RCAT a &ldquo;buy&rdquo; with a $4 price target. That implies upside potential of over 292%.</p>



<p>During the TTM period, Red Cat incurred a net loss of $27.17 million. However, during this cycle, it posted revenue of $17.9 million. What&rsquo;s more, its current quarterly sales growth rate stands at 250.7%. For fiscal 2024, it&rsquo;s possible that sales may rise to $18.14 million. If so, that would translate to a growth rate of 83%.</p>



<p>The following year, the top line could expand to $32.6 million, up almost 80%. If you can handle the risk, RCAT ranks among the penny stocks to buy.</p>



<p><strong><em>On Penny Stocks and Low-Volume Stocks:&#8239;</em></strong><em>With only the rarest exceptions,&nbsp;InvestorPlace&nbsp;does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That&rsquo;s because these &ldquo;penny stocks&rdquo; are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that&#8239;InvestorPlace.com&rsquo;s&nbsp;writers disclose this fact and warn readers of the risks.</em></p>



<p><strong><em>Read More:&#8239;</em></strong><a href="https://investorplace.com/2014/05/fraud-penny-stocks-scams/" target="_blank"><em>Penny Stocks &mdash;&nbsp;How to Profit Without Getting Scammed</em></a></p>



<p><em>On the date of publication, Josh Enomoto</em><em> did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;</em><em>The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank"><em>Publishing Guidelines</em></a><em>.</em><em></em></p>
<div><p>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</p></div><h3>More From InvestorPlace</h3>
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<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Undoubtedly, tech is ruling 2024. <a href="https://investorplace.com/industries/technology/">Tech stocks</a> have always been an important driver in a portfolio because of their innovative nature. But if the last two weeks reminded us, you never want to have all your eggs in one basket. Diversification is key, and one way you can diversify a winning portfolio in 2024 is to look at <a href="https://investorplace.com/industries/consumer-discretionary/retail/">retail stocks</a>.</p>



<p>Because when it comes down to it, this is a buy-and-sell economy. Consumers will consume, whether they are looking for staples or discretionary items. Whether the economy is doing well or poorly, whether interest rates are up or down, people will spend money at retailers.</p>



<p>And fortunately for retail stocks, inflation is cooling off. The annual rate of inflation in June was 3%, down from 3.3% in the previous month. Currently, inflation is at its lowest rate since March 2021.</p>



<p>The best retailers also embrace technology, as well. Many retail companies have changed how they do business in response to consumer behavior and desires, and adapted technology to meet those needs. </p>



<p>Retailers are using technology to power e-commerce efforts, improve their online presence, streamline operations and improve the customer experience.</p>



<p>Today we&rsquo;re using the Portfolio Grader to pick some of the best retail stocks on the market. The Portfolio Grader evaluates stocks based on factors such as earnings performance, growth and analyst sentiment to come up with an &ldquo;A&rdquo; through &ldquo;F&rdquo; grade.</p>



<p>If this were a school, each of the names on this list would make the honor roll with good grades. They&rsquo;re worth considering for anyone looking to round out their portfolios in 2024.</p>



<h2>Costco Wholesale Corporation (COST)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/cost1600-300x169.jpg" alt="A Costco Wholesale (COST) warehouse in Auburn Hills, Michigan."><div>Source: ilzesgimene / Shutterstock.com</div></div><p><strong>Costco Wholesale Corporation</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/cost-stock-quote/"><strong>COST</strong></a>) is one of the most innovative retail stocks you can buy. The company operates nearly 900 warehouse stores where customers can buy groceries, appliances, clothing and luggage.</p>



<p>However, what makes Costco special is its membership program. Costco customers pay the company $60 a year just for the right to walk through the front door. That guaranteed revenue stream is a difference-maker for investors. </p>



<p>In the <a href="https://investor.costco.com/news/news-details/2024/Costco-Wholesale-Corporation-Reports-Third-Quarter-and-Year-to-Date-Operating-Results-for-Fiscal-2024/default.aspx">third quarter of fiscal 2024</a>, membership fees accounted for $1.12 billion. Considering the company&rsquo;s net income was $1.68 billion, or $3.78 per share, you can argue that it&rsquo;s the membership fee that is driving much of the profit for COST stock.</p>



<p>And Costco is now making a good decision by <a href="https://investorplace.com/2024/07/cost-stock-alert-costco-is-hiking-its-membership-fee-for-the-first-time-in-7-years/">increasing the fee for basic membership to $65 annually</a>. That $5 won&rsquo;t be missed by members, but those dollars will add up for Costco. (Executive memberships, the higher membership tier, will increase $10 from $120 to $130 per year.)</p>



<p>Costco is up 25% this year and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<h2>Walmart (WMT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/wmt-stock-9-300x169.jpg" alt="A photo of the Walmart (WMT) logo on the side of a truck."><div>Source: Sundry Photography / Shutterstock.com</div></div><p><strong>Walmart</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/wmt-stock-quote/"><strong>WMT</strong></a>) is a direct competitor to Costco &ndash; its Sam&rsquo;s Club&rsquo;s warehouses operate much the same way. But Walmart also has a much bigger footprint because it operates Walmart stores that have groceries, home electronics, clothing, health products, toys, games and anything else you can think of.</p>



<p>With more than 10,800 locations that includes every state and two dozen countries, Walmart is the biggest retailer on the planet. And it uses that size to its advantage by negotiating with suppliers to give it ultralow prices that it can pass on to customers. </p>



<p>Suppliers don&rsquo;t mind because it&rsquo;s a feather in any manufacturer&rsquo;s cap to be on Walmart shelves and get that kind of exposure.</p>



<p>Walmart&rsquo;s e-commerce business is becoming more powerful, growing 22% from last year, according to the company&rsquo;s <a href="https://s201.q4cdn.com/262069030/files/doc_financials/2025/q1/Earnings-Release-FY25-Q1-5-16-24.pdf">fiscal Q1 2025 earnings report</a>. Overall, Walmart reported revenue of $161.5 billion, up 6% from last year.&rsquo;</p>



<p>WMT stock is up 33% this year and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<h2>Macy&rsquo;s (M)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/10/macys-stock-300x169.jpg" alt="macy's mall department store storefront. M stock"><div>Source: digitalreflections / Shutterstock.com</div></div><p><strong>Macy&rsquo;s</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/m-stock-quote/"><strong>M</strong></a>) is a New York-based department store chain that sells home goods, cosmetics, clothing, shoes and accessories. </p>



<p>While you may not have been in a Macy&rsquo;s store, you&rsquo;re probably familiar with the name, as the company puts on the famous Thanksgiving Day parade that&rsquo;s televised every Turkey Day.</p>



<p>The company&rsquo;s had an interesting year, to say the least. The company is pretty much breaking even, first-quarter revenue was down nearly 3% and same-store sales saw a 1% drop. The company is retrenching by closing 50 stores this year and 150 in the next three years.</p>



<p>But the biggest news about Macy&rsquo;s these days is the buyout offer that fizzled. Investment firms <strong>Arkhouse Management&nbsp;</strong>and<strong>&nbsp;Brigade Capital Management </strong>were working on a deal to take Macy&rsquo;s private, offering $21 per share ($5.8 billion) and then raising the bid to $24. But <a href="https://investorplace.com/2024/07/m-stock-plunges-13-as-macys-calls-off-take-private-talks/">Macy&rsquo;s called the deal off earlier this month</a> and shares dropped by $16.</p>



<p>Macy&rsquo;s says it&rsquo;s going to focus on its &ldquo;Bold New Chapter&rdquo; campaign to reinvigorate the stores. But if you think that another bidder could come calling, Macy&rsquo;s is a dark-horse play.</p>



<p>The stock is currently on sale, down 18% on the year, and gets a &ldquo;B&rdquo; rating in the Portfolio Grader.</p>



<h2>Datasea (DTTS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/retail1600c-300x169.jpg" alt="a person carrying several shopping bags"><div>Source: Shutterstock</div></div><p><strong>Datasea </strong>(NASDAQ:<a href="https://investorplace.com/stock-quotes/dtss-stock-quote/"><strong>DTSS</strong></a>) is a retail stock unlike others on this list. The Chinese company provides audio products that focus on ultrasonic, infrasound and directional sound technology to 48 million retail and enterprise customers.</p>



<p>It provides smart city solutions and 5G messaging applications in China, including smart security solutions for schools, public areas and tourist attractions. </p>



<p>It also uses its 5G communications platform, operating on a cloud service and powered by artificial intelligence, to use ultrasonic sterilization to prevent viruses and prevent infection.</p>



<p>And it is using AI to grow, having completed an upgrade of its core 5G communication business with AI technology. It&rsquo;s expecting full-year revenue of <a href="https://www.dataseainc.com/static/upload/file/20240628/1719539698694589.pdf">$86 million this year</a>, which would be a 1,128% increase from 2023.</p>



<p>Currently valued at less than $3 a share and down 22% this year, DTSS stock looks like an appealing option for investors looking for overseas diversification. It gets a &ldquo;B&rdquo; rating in the Portfolio Grader.</p>



<h2>Rent the Runway (RENT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/12/rent1600-300x169.png" alt="Person holding cellphone with logo of US e-commerce company Rent the Runway Inc on screen in front of business webpage Focus on phone display"><div>Source: Wirestock Creators / Shutterstock.com</div></div><p><strong>Rent the Runway</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/rent-stock-quote/"><strong>RENT</strong></a>) is a unique business. The company is a clothing rental subscription service &ndash; kind of like how you would rent a car at the airport for vacation or a business function.</p>



<p>Customers can rent clothes for a one-time occasion and have their outfits shipped to them a few days before the event. </p>



<p>Or they can get a membership and pay a monthly membership fee to have five, 10 or 20 items at a time and hold on to them as long as you want &ndash; and swap them out when you&rsquo;re done and want to try something else.</p>



<p>If you like clothes and like to change your look, it&rsquo;s an appealing option because your closet isn&rsquo;t going to get stuffed, and you don&rsquo;t have to worry about selling or giving away the stuff that you don&rsquo;t like any longer.</p>



<p>The company has worked with roughly 3 million customers &ndash; 80% of them acquired organically, meaning they were brought in by word-of-mouth rather than advertising. Currently, it has a subscriber base of 145,000.</p>



<p><a href="https://investors.renttherunway.com/news-releases/news-release-details/rent-runway-inc-announces-first-quarter-2024-results">Revenue in the first quarter</a> was $75 million, up $800,000 from a year ago. The growing company posted a net loss of $22 million and $6.03 per share, a massive improvement from a year ago when the loss was $30.1 million and $9.14 per share.</p>



<p>I&rsquo;ll be keeping an eye on RENT stock, which is up 48% this year. It gets a &ldquo;B&rdquo; rating in the Portfolio Grader.</p>



<h2>TJX Companies (TJX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/tjx1600-300x169.jpg" alt="An outside shot of a T.J. Maxx (TJX) store in Romeoville, Illinois."><div>Source: Joe Hendrickson / Shutterstock.com</div></div><p><strong>TXJ Companies</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/tjx-stock-quote/"><strong>TJX</strong></a>) is a solid brick-and-mortar stock, if you&rsquo;ll pardon the pun. While some companies are struggling in the age of e-commerce, TJX is actually doing well because its business model is designed to drive people into stores rather than shop online.</p>



<p>The company has 4,900 locations with low-cost department stores such as Marshall&rsquo;s HomeGoods, Sierra and T.J. Maxx. It sells clothing, home goods and furnishings at greatly discounted prices.</p>



<p>Because it&rsquo;s a discount retailer, TJX doesn&rsquo;t have a steady supply of the same goods coming in every week. Instead, its offerings are based on what it can snap up from its suppliers. </p>



<p>When a manufacturer overproduces or competing stores overbuy, TXJ makes an offer and bring the goods into its own stores.</p>



<p>That creates a &ldquo;treasure hunt&rdquo; mentality among shoppers &ndash; goods at a T.J. Maxx are different every week, and no store has the same inventory as another, so e-commerce takes a back seat.</p>



<p>Discount stores like T.J. Maxx are more appealing when people are stretching their paychecks because of inflation or interest rates. So not surprisingly, TJX reported <a href="https://www.tjx.com/docs/default-source/investor-docs/quarterly-results/tjx-first-quarter-fiscal-year-2025-earnings-press-release.pdf?sfvrsn=f6c4ded1_1">revenue</a> in the first quarter of fiscal 2025 of $12.5 billion, up 6% from a year ago.</p>



<p>TJX stock is up 20% this year and gets a &ldquo;B&rdquo; rating in the Portfolio Grader.</p>



<h2>BJ&rsquo;s Wholesale Club (BJ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/11/bj-stock-1-300x169.jpg" alt="BJ Wholesale (BJ) storefront with red BJ logo on front"><div>Source: Helen89 / Shutterstock.com</div></div><p><strong>BJ&rsquo;s Wholesale Club</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/bj-stock-quote/"><strong>BJ</strong></a>) is another warehouse-style retailer. But the business model is working, just like it is for Walmart&rsquo;s Sam&rsquo;s Club and Costco.</p>



<p>BJ&rsquo;s sells food, home goods, furniture, outdoor products, electronics and toys. Unlike Costco, BJs also accepts manufacturer&rsquo;s coupons. The Massachusetts-based company has nearly 250 warehouse stores, as well as nearly 200 gas stations in 20 states.</p>



<p>Revenue in the first quarter was $4.9 billion, up 4.1% from a year ago. Of that, membership fees brought in $111 million, up 8.6% from the first quarter of 2023.</p>



<p>BJ stock is up 33% this year and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<p><em>On the date of publication, Louis Navellier had long positions in COST and BJ.&nbsp; Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.</em></p>



<p><em>InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://url.us.m.mimecastprotect.com/s/AAadCPNlWWs3yKYns0yRM6?domain=investorplace.com/">Publishing Guidelines</a>.</em></p>



<p><em>On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.</em></p>
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