7 Best Debt Free Stocks To Buy

3. Udemy, Inc. (NASDAQ:UDMY)

Market Cap as of 16/08/2024: $1.13 Billion

Enterprise Value: $721.38 Million

Upside Potential: 82.84%

Udemy, Inc. (NASDAQ:UDMY) is one of the best debt-free stocks in the consumer defensive sector. The company operates a marketplace, a platform for learning skills. It offers skill acquisition development and validation courses for people through direct-to-consumer. Udemy, Inc. (NASDAQ:UDMY) also boasts of a low debt portfolio of about $6.9 million as of the end of last year.

The company benefits from a shift to online education after the COVID-19 pandemic, which affirms its growth metrics and long-term prospects. Udemy, Inc. (NASDAQ:UDMY) ‘s two-sided marketplace and flywheel also give it a competitive edge against its peers in the online education segment.

In Q2 2024, the company delivered a 9% year-over-year increase in revenue to $194.4 million, driven by a 17% increase in annual recurring revenue to $492.6 million. To seize significant market opportunity, Udemy, Inc. (NASDAQ:UDMY) is boldly directing its strategy and resources towards the most promising large enterprise market, aiming for rapid profitability.

Udemy anticipates achieving at least $25 million in yearly cost reductions by improving operational efficiency and projecting Adjusted EBITDA between $130 and $150 million for 2026.

While Udemy, Inc. (NASDAQ:UDMY) is currently down by about 40% with an enterprise value of $643 million and a $1.05 billion market, it is rated as a Buy with a $13 price target, implying an 82.84% upside potential from current levels. As of the end of the first quarter, 16 out of 920 hedge funds tracked by the Insider Monkey database held stakes in the company from 22 as of the end of 2023.