Why Vroom (VRM) Stock is a Compelling Investment Case




  • In Business
  • 2020-07-27 17:22:04Z
  • By Insider Monkey
Why Vroom (VRM) Stock is a Compelling Investment Case
Why Vroom (VRM) Stock is a Compelling Investment Case  

Miller Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 47.02% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.54% in the same quarter. You should check out Miller Value Partners' top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Miller Value Partners highlighted a few stocks and Vroom Inc. (NASDAQ:VRM) is one of them. Vroom Inc. (NASDAQ:VRM) is an online pre-owned car retailer. Vroom Inc. (NASDAQ:VRM) stock lost 9.8% in the trailing one month and on July 24th it had a closing price of $49.00. Here is what Miller Value Partners' said:

"We bought Vroom on the IPO, which is a name we are excited about. It's a direct online used auto platform entirely focused on a great user experience. The total addressable market (TAM) is huge ($840B) and the industry has one of the lowest online penetration rates of any. Carvana has demonstrated just how successful a company can be pursuing a similar opportunity. We think there's plenty of room for two players. Vroom has a great management team that formerly grew Bookings.com to be the leader in the travel industry competing head-to-head with Expedia. Even after huge gains from the IPO price, Vroom still trades at a discount to Carvana and we believe it will be a long-term winner."

Milosz_M / Shutterstock.com

Our calculations showed that Vroom Inc. (NASDAQ:VRM) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so we are checking out this under-the-radar lithium stock. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:


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

COMMENTS

More Related News

Why Constellation Brands (STZ) Stock is a Compelling Investment Case
Why Constellation Brands (STZ) Stock is a Compelling Investment Case

Blue Hawk Investment Group recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 14.06% for the quarter (net), underperforming its benchmark, the S&P 500 Index which returned 19.95% in the same quarter. You should check out Blue Hawk Investment Group's top 5 stock picks […]

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business