2. Clarivate Plc (NYSE:CLVT)
Number of Hedge Fund Holders: 27
Share Price as of October 18, 2024: $6.70
Forward P/E as of October 18, 2024: 9.06
Clarivate Plc (NYSE:CLVT) ranks second on our list of the most affordable stocks under $10 to buy. Clarivate is an analytics company that is focused on transformative intelligence. Some of its solutions include enriched data, insights and analytics, workflow solutions, and expert services to several segments including academia, the government, intellectual property, life sciences, and healthcare.
Clarivate Plc (NYSE:CLVT) is expanding its footprint across borders and in AI. Previously in September, the company partnered with TerraSky to help customers in Japan enhance and improve their strategic IP assets. During the same month, the company forged a partnership with Relatable Healthcare, a health tech company that makes Product Relationship Management (PRM) software for medtech companies to manage workflows. The partnership ensures that Relatable’s customers can access competitive intelligence from Clarivate.
In an incredible feat to leverage AI, the company launched a generative AI-powered research assistant, Primo, on September 18. Primo facilitates seamless research for students and researchers alike by providing immediate answers to queries with sources and references.
During the second quarter of 2024, Clarivate Plc (NYSE:CLVT) logged revenue worth $650.3 million. The company is happy with its progress on the innovation front and expects these strategic changes to help it grow. Customers are also immensely satisfied with its product improvement, resulting in higher customer renewals and new customers, which is expected to drive organic growth in the second half of 2024.
Cove Street Capital Small Cap Value Fund stated the following regarding Clarivate Plc (NYSE:CLVT) in its Q2 2024 investor letter:
“We also added a position in Clarivate Plc (NYSE:CLVT), a data services provider that operates across academic research, intellectual property, and life sciences. We came to the investment from cross-work in another holding, Research Solutions (ticker: RSSS). Ultimately this company sucks in data from participants in the industry, aggregates it, and provides value added services and tools back to those industry participants. The power is in providing customers access to the aggregate. This was a private equity roll-up of a bunch of different data assets that paid too little attention to product innovation, leading to a period of stagnating growth and repeatedly missing guidance. The business of selling many tools and services on a pile of fixed cost assets (data) remains tremendous as can be seen by Clarivate’s mid-to-high 30% EBITDA margins and strong returns on invested capital. With new management and board members in place and 18 months of an “investment cycle” under their belt, we view the risk/reward of CLVT to be favorable at these levels, with a strong upside case if they can reinvigorate growth to their target levels.”
