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I understand it’s too early, but wanted to know your thoughts on Honest. I personally use their products, and believe them to be better. Thinking of taking position, any financial pointers will be helpful

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Asked on May 11, 2021 7:15 am
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thanks Dan

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Posted by Ayon De
Answered on May 12, 2021 1:49 pm
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I'd have to see a few post IPO performances on a quarterly basis before I could have an opinion on how its performing in the public eye. The company on a price to sales basis looks to be trading at a bit of a premium to its competition and the beauty sector as a whole, but we can expect this from an IPO most of the time.

If you want my honest opinion, right now is a time to place stocks like this on your watchlist until the market selloff in stocks of this genre (growth) settle down. I still view the company as a bit overvalued when compared to its growth (28% revenue growth last year), and competition is cutthroat in the niche the company operates in.

I'd be prepared for extensive volatility as the markets remain rocky. Case in point, this one has lost 33% of its value just a week into its IPO.

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Posted by Dan Kent
Answered on May 12, 2021 10:42 am