Momentum Stock Watch: Lightinthebox Holding Co. Ltd (LITB)

Company Profile:

LightInTheBox Holding Co., Ltd., through its subsidiaries, operates as an online retail company worldwide. It provides apparel products, including customized, special occasion, and fast fashion apparel products; and other general merchandise products, such as accessories and gadgets, home and garden products, electronics and communication devices, and other products. The company offers its products through lightinthebox.com, ezbuy.com miniinthebox.com, ouku.com, and other Websites, as well as through mobile applications; and sells its products through online marketplace platforms. It also provides mobile application software development and information technology support services. The company was founded in 2007 and is headquartered in Beijing, the People’s Republic of China.

Recent News:

On March 26, 2020, the company announced that it is making urgently needed medical supplies globally available to support the fight against the COVID-19 pandemic.

For the third quarter ended September 30, 2019, the company reported total revenues regained significant growth momentum increasing 34.6% year-over-year to $59.9 million. Net income was $10.0 million, compared with a net loss of $17.8 million in the same quarter of 2018.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

LITB’s strengths can be seen in its strong growth and better profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 40.08 with positive bias. We rate Lightinthebox Holding Co. Ltd (LITB) a STRONG BUY.