OPEN Technologies Fundamental Analysis: Benjamin Graham Strategy

OPENDOOR TECHNOLOGIES INC (OPEN) is a mid-cap growth stock in the Real Estate Operations industry that rates highest using the Value Investor model based on Benjamin Graham's published strategy. The stock passes tests for current ratio, long-term debt, and long-term EPS growth, but fails tests for P/E ratio and price/book ratio. The overall rating is 57%, indicating some interest in the stock.

Opendoor Technologies Inc. (OPEN), a mid-cap growth stock in the Real Estate Operations industry, has garnered attention recently due to its performance and valuation. According to the Value Investor model based on Benjamin Graham's strategy, OPEN rates highest among its peers in the industry. The stock passes several key tests, including the current ratio, long-term debt, and long-term EPS growth, but it fails the P/E ratio and price/book ratio tests. Overall, the stock receives a 57% rating, indicating some interest among investors.

As of July 2, 2025, Opendoor Technologies Inc.'s stock price was $3.620, up 14.2% from its previous closing price of $3.170 [1]. The stock has shown significant momentum, with a weighted four-quarter relative price strength of 95.13%, translating to a Momentum Score of 99, which is considered very strong [1]. This strong momentum is supported by recent market developments, such as the company meeting Nasdaq’s minimum bid price requirement and securing its listing on the Nasdaq Global Select Market [2].

Opendoor Technologies Inc. operates a digital platform for residential real estate transactions in the United States. It offers a range of products and services, including sell-to-Opendoor, list-with-Opendoor, and Opendoor marketplace products, as well as real estate brokerage, title insurance, and escrow services [1]. Despite its financial challenges, such as weak profitability ratios and declining revenue trends, the company reported significant revenue growth in Q2 2025, surpassing consensus expectations [2].

The stock's valuation, based on AAII's Value Grade, is a C, indicating an average valuation [1]. This suggests that investors should consider other financial metrics to evaluate the stock's overall valuation. For instance, the stock's current ratio of 4.4 exemplifies financial resilience, while its low price-to-sales ratio of 0.35 highlights market skepticism concerning its ability to convert business operations into profitability [2].

In conclusion, Opendoor Technologies Inc. (OPEN) is a mid-cap growth stock in the Real Estate Operations industry with a mixed rating according to the Value Investor model. While the stock has shown strong momentum and significant financial numbers, it also faces challenges such as weak profitability ratios and declining revenue trends. Investors should consider a variety of metrics, fundamentals, and analytics to evaluate the stock and make informed investment decisions.

References:
[1] https://www.aaii.com/investingideas/article/330947-why-opendoor-technologies-inc8217s-open-stock-is-up-1234
[2] https://stockstotrade.com/news/opendoortechnologiesinc-open-news-2025_08_16/