10 Oversold Small Cap Stocks to Buy Right Now

7) Helen of Troy Limited (NASDAQ:HELE)

Market Cap (As of October 23): $1.48 billion

Forward P/E (As of October 23): 8.53x

% Decline on a YTD Basis: ~47%

Number of Hedge Fund Holders: 21

Helen of Troy Limited (NASDAQ:HELE) provides various consumer products in the US, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

Wall Street analysts believe that Helen of Troy Limited (NASDAQ:HELE)’s strategic initiatives, like Project Pegasus, should continue to contribute to its strong performance over the near term. The company is focused on long-term growth and efficiency improvements and continues to emphasize innovation and marketing investments. Helen of Troy Limited (NASDAQ:HELE)’s Project Pegasus initiative remains on track, which has been enhancing its brand marketing and execution.

Helen of Troy Limited (NASDAQ:HELE) highlighted that its distribution network has been successful and it plans to reduce tariff exposure by diversifying production outside of China. Over the long term, the company remains focused on revitalizing its business via increased brand and innovation investments. Helen of Troy Limited (NASDAQ:HELE) remains committed to using FCF for capital deployment, such as debt reduction and share repurchases.

Analysts believe that enhanced data analytics are being used by Helen of Troy Limited (NASDAQ: HELE) to optimize marketing strategies and improve ROl. It remains focused on value-driven offerings. The company expects gross margin to normalize in H2 of the fiscal year, with levels aligning or slightly outpacing prior year levels.

Analysts at Canaccord Genuity Group reiterated a “Buy” rating on the shares of Helen of Troy Limited (NASDAQ:HELE), giving a $84.00 price target on 7^th October. Palm Valley Capital Management, an investment management firm, released a third quarter 2024 investor letter. Here is what the fund said:

“Helen of Troy Limited (NASDAQ:HELE) was the only new purchase made during Q3. It is a diversified consumer products roll-up. The company’s top brands include OXO, Hydro Flask, Osprey, PUR, Hot Tools, and Dry Bar. Helen also has leading market positions through the licensed brands Braun, Vicks, Honeywell, and Revlon. The company’s operating performance peaked during the pandemic, but sales have contracted in the last two years as consumer demand for Helen’s products has normalized post-stimulus. The firm’s stock is heavily shorted, with short sellers arguing that Helen is an overleveraged and broken roll-up with second tier brands and meager cash flow. We believe this is wrong. Most of the company’s brands command leading shares in their markets.”