Opendoor is closing in on positive adjusted earnings, and that's a solid foundation.
Grab's revenue is growing even faster than its 16% in monthly transacting users. Its bottom line is growing ever faster.
Peloton just posted its strongest revenue growth since late 2021, and it's now profitable. Stop laughing. Start paying attention.
Low price points typically indicate high risks, but also, sometimes, great potential. I want to dive into a few stocks with single-digit prices that I think can move higher this year.
I think Opendoor Technologies (NASDAQ: OPEN), Grab Holdings (NASDAQ: GRAB), and Peloton Interactive (NASDAQ: PTON) can beat the market in 2026.
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Flipping homes has been more likely to flip you over in recent years. Opendoor's prospects are feeling the pinch from the lack of inventory on the market, high mortgage rates that are keeping homeowners locked into their existing digs at lower financing costs, and younger Americans who are turning to rentals as annual home sales hover near 30-year lows.
Revenue is declining sharply for the fourth consecutive year. How bad have things been? Trailing revenue of $3.8 billion is 75% below the 2022 peak. And it's not just the top line getting slammed by a wrecking ball: Opendoor stock has plummeted 89% since peaking five years ago. This may not seem like much of a housewarming party for potential investors, but bear with me -- if you want to bull with me.
The shakeout was brutal. The country's two largest real estate portals backed out of the e-buying market entirely a couple of years ago, but that's actually good news. Opendoor will have fewer rivals with deep pockets to bid against when the inevitable turnaround happens.
Opendoor has also been ramping up its property acquisitions. It expects revenue to rise 25% sequentially in the current quarter, which ends later this month. Just 10% of its inventory at the end of March had been on the market for more than 120 days, compared with a third of the total homes on the market.
Perhaps even more importantly, losses -- even on an adjusted basis -- have been par for the course since Opendoor went public in 2020. Operating improvements and the first whiffs of a recovery find Opendoor modeling positive adjusted forward earnings by the end of this year. This is what opportunity knocking sounds like.
Singapore's Grab Holdings is not a name stateside consumers know, but the regional superapp developer is a force in several Southeast Asian markets. The platform, which initially started as a ride-hailing service, has evolved over time to offer deliveries and financial services, including digital payments and loans.
Grab serves 51.6 million monthly transacting users, 16% more than its sticky audience a year earlier. Revenue rose by a better-than-expected 24% in the first quarter, which it reported last month (or 21% on a currency-adjusted basis). That's Grab's strongest top-line gain in two years. Its bottom line rose even faster.
Despite its improving fundamentals, Grab's stock has been cut nearly in half since peaking in the fall. Even if fuel surcharges eat into demand, what's the alternative in this global environment of rising costs? The stock is trading for 24 times next year's analyst profit target, a fair price to pay for a company growing revenue north of 20%, with earnings growing even faster.
It might seem odd to close out this list with Peloton Interactive (NASDAQ: PTON), but maybe it's just its stationary bikes that aren't going anywhere. Yes, Peloton peaked in the early months of the pandemic. Gyms were closed, and Peloton offered a safe home-based proxy for those with the means to spring for its bikes and treadmills. Revenue has declined in the past four fiscal years, and that streak will probably stretch to five after fiscal 2026 wraps up at the end of this month.
An interesting financial footnote is that revenue rose 1% in the fiscal third quarter that ended in March. That might sound sad, but it's Peloton's strongest growth since late 2021.
Peloton is no longer a punchline. The shares are up 58% since bottoming out three months ago. It's still not too late to take a chance on this potential turnaround play. Its market cap is essentially the $2.4 billion it generated in trailing revenue. Peloton turned profitable in fiscal 2025, and now it's building on that. It's trading for 21 times what Wall Street pros expect it to earn in the new fiscal year that starts next month. Turns out there's nothing stationary about this bike.
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Grab and Peloton Interactive. The Motley Fool has a disclosure policy.