ODDITY Tech

ODD

Market cap $2.03B

The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.

Investors interested in stocks from the Internet - Software sector have probably already heard of Oddity Tech (ODD) and BlackLine (BL). But which of these two stocks presents investors with the better value opportunity right now?

Oddity Tech (ODD) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

Oddity has already proven the viability of its business model through two strong consumer brands. Additional brands are on the horizon, and they could accelerate growth in different niche areas.

Oddity Tech had its IPO in 2023, having generated extremely strong growth as a privately held company. Growth rates have naturally slowed as it has gotten larger, but the business is still expanding rapidly.

Many companies that have sought to adopt AI are understandably in the most tech-focused areas of the economy. However, finding ways to bring more consumer-facing applications for artificial intelligence holds great promise.

The mean of analysts' price targets for Oddity Tech (ODD) points to a 57.6% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.

Oddity Tech is recommended as a buy, with the platform thesis now materially de-risked by MethodIQ's launch and international scaling. MethodIQ and ODDITY Labs transform ODD into a defensible technology platform, offering proprietary molecules and higher efficacy in the $27B acne and dermatology market. International revenue is growing ~40% year-to-date, validating ODD's scalable, language-agnostic tech stack and reducing US concentration risk.

Oddity Tech (ODD) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

The consensus price target hints at a 57.6% upside potential for Oddity Tech (ODD). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.