Jim Cramer on Oddity: "I Think It Represents a Very Compelling Value"

Oddity Tech Ltd. (NASDAQ:ODD) is one of the stocks Jim Cramer recently shed light on. Cramer said that the company’s “fundamentals remain incredible,” as he said:

“Earlier this week, a beaten-down direct-to-consumer cosmetic stock, Oddity Tech, reported a great quarter, and the stock shot up 21% in its highs yesterday before the entire market, of course, rolled over and gave back those gains. It only finished up just 6.5%. Today, it got hit for another 4.7% and at this point, I think you’re almost getting that terrific quarter for free. I think this is one of those babies that got thrown out with the proverbial bathwater, and right now, it’s a compelling buying opportunity. Of course, to be fair, I don’t have the best track record in this stock…

To me, this seems like the real opportunity here. This spring, I told you that I really liked the Oddity story, but I told you not to chase it. Right now, the story is the same. In fact, I’d argue it’s much better with a series of beat and raise quarters coupled with this new telehealth brand on the way that really I found very intriguing. And this time, you’re doing the opposite of chasing; you’re buying into weakness. In May, I said the stock was expensive around 30 times earnings. Well, it’s now selling for less than 18 times this year, or just 17 times, really… 17 times next year’s numbers.

I regard that as cheap. In fact, I’d even go so far as to say that next year’s estimates look pretty low to me, implying just 4% year-over-year earnings growth. Here’s the bottom line:… Now I have liked this Oddity Tech for a long time. I haven’t gotten it right, but the stock’s big rally earlier this year turned out to be a false start. The good news, though, the fundamentals remain incredible, and the stock’s a heck of a lot cheaper than it was six or seven months ago. At these levels, I think it represents a very compelling value.”

Oddity Tech Ltd. (NASDAQ:ODD) develops digital-first beauty and wellness brands using AI-driven technology to create personalized products.

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Disclosure: None. This article is originally published at Insider Monkey.