In today's video I look at fundamentals and valuation metrics for One Stop Systems (OSS 0.68%), StoneCo (STNE 0.07%), DraftKings (DKNG -1.35%), and Skillz (SKLZ 2.67%). These four stocks have seen a correction in stock price, and below I share a few highlights from the video on why investors should add them to their watch lists. 

Two reasons to add One Stop Systems to your watch list

  1. One Stop Systems is a supplier of hardware solutions for the high-performance computing market. This market is continuously growing with the technological advancement of machine learning and artificial intelligence as well as with data center demands. However, investors need to note that One Stop Systems is a microcap company that can experience high volatility.
  2. One Stop Systems has exceptional fundamentals when you look at its trailing 12 months (TTM). The company has profitable earnings, positive cash flow from operations, and more cash and short-term investment than debt.

Two reasons to add StoneCo to your watch list

  1. On June 16, 2021, the Brazilian Antitrust Authority approved the business combination between Stone and Linx. Linx is a leading provider of retail management software in Brazil, which will provide Stone's solutions to Brazilian merchants. 
  2. StoneCo has strong fundamentals when you look at its TTM. The company has profitable earnings and more cash and short-term investment than debt. 

Two reasons to add DraftKings to your watch list

  1. DraftKings' stock price recently saw a downturn when one investment research firm revealed a short position. Allegations of ties to illegal gambling have not been proven and could be providing investors with a buying opportunity. 
  2. DraftKings' most recent earnings report showed a strong balance sheet of $2.8 billion in cash and short-term investment and $1.2 billion in debt, allowing the company to continue to fund its growth as its fundamentals improve.  

Two reasons to add Skillz to your watch list

  1. On June 2, 2021, Skillz announced it would be acquiring Aarki, a leading marketing platform. This acquisition can improve Skillz's fundamentals by allowing the company to be more aggressive in monetizing nonpaying users. 
  2. Skillz's most recent earnings report showed an exceptional balance sheet of $612 million in cash and short-term investment and no debt, allowing the company to continue to fund its growth as its fundamentals improve.  

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of June 17, 2021. The video was published on June 19, 2021.