MarketWise (MKTW) Stock Analysis: Undervalued Amid Market Concerns

MarketWise (MKTW) is considered undervalued by Ragnarok Research, citing exaggerated market fears and a disconnect between the company's potential and market perception. The average analyst target price is $19.00, with a high estimate of $19.00 and a low estimate of $19.00. The brokerage recommendation is 3.0, indicating "Hold" status. The estimated GF Value for Marketwise Inc in one year is $13.48, suggesting a downside of 32.33% from the current price of $19.92.

World Acceptance Corporation (WRLD, Financial) has announced its financial results for the second quarter of 2025, revealing a strong performance in revenue. The company reported $132.45 million in revenue, which surpassed the market consensus of $122.38 million [1]. However, the company's net income faced pressure due to an increase in the provision for credit losses.

Wall Street analysts forecast an average target price of $138.00 for World Acceptance Corp (WRLD, Financial), with a high estimate of $146.00 and a low estimate of $130.00. This implies a potential downside of 19.44% from the current price of $171.30 [1]. The average brokerage recommendation is 3.0, indicating a "Hold" status [1]. GuruFocus estimates the GF Value for WRLD in one year to be $131.96, suggesting a downside of 22.97% from the current price of $171.30 [1].

Key business developments include a 3.5% increase in the customer base, marking the first year of year-over-year growth since fiscal year 2022. Gross yields improved by over 100 basis points, indicating better profitability from lending activities. Non-refinance loan volume increased by 12.6% year over year, while tax return revenue increased by 25%, contributing nearly $7 million to the fourth quarter results [1].

Positive points include a 36% increase in new customer growth and a 12.6% year-over-year increase in non-refinance loan volume. The company also saw a 25% increase in tax return revenue and is piloting its first World Finance credit card to expand product offerings and market reach [1].

However, the outstanding ledger decreased by 4% year over year, indicating a reduction in the total loan portfolio. Annual charge-off rates remained high at 17.5%, with delinquency rates appearing stubborn to return to normal levels. The average balance per customer decreased by 7.3%, which could affect overall revenue generation [1]. Refinance loan volume dipped in the fourth quarter, particularly in March, although it rebounded in April [1].

References:
[1] https://www.gurufocus.com/news/3001291/wrld-reports-strong-q2-revenue-above-expectations-wrld-stock-news