Despite recording impressive revenue growth in Q1, American Rebel Holdings, Inc. (NASDAQ: AREB) remains an overlooked play since the market may have not reacted correctly to its news. The reason for this may be due to AREB not issuing PR highlighting its impressive financial performance in Q1. With this in mind, AREB stock could be poised for a significant appreciation in its PPS as the company could continue reporting impressive revenue growth throughout this year considering the growing crime rate in the US.
AREB Fundamentals
With a market cap of only $2.9 million, AREB stock appears to be one of the most undervalued NASDAQ penny stocks as the company was able to realize $4.4 million in revenues in Q1 2023. While these revenues represented a 2757% YoY increase from $154 thousand, AREB stock is only up 31% since sharing its Q1 report – leaving the stock trading at a value less than its Q1 revenues.
That said, the reason investors may have not taken notice of AREB could be due to the company not issuing PR highlighting its impressive Q1 financial results. However, AREB has been catching investors’ attention lately which makes it prone to run in the near term. With this in mind, AREB has a low float of 16 million which could allow the stock to run quicker once more investors take notice of the stock.
One possible explanation for AREB’s drastic increase in revenues lies in a need for more guns perpetuated by an increasing crime rate in the US. Between Q1 2021, and Q1 2023 homicides have increased in the US by roughly 10%. Additionally, there have been more than 200 mass shootings in the US in 2023. Given the dire situation, gun purchases may increase this year, and with them gun accessories like those that AREB offers.
If homicides and mass shootings continue to rise at such a drastic rate, gun purchases may further increase as an attempt to obtain security. That said, AREB offers a litany of products that go hand in hand with guns such as gun safes, conceal carry jackets, and many other items. An increase in gun purchases due to the aforementioned reason may cause an increase in the purchase of gun-related items, which would boost AREB’s revenue in the coming quarters. In light of this, AREB stock could be an extremely undervalued play at current levels given its potential to continue growing its revenues in the future.
Despite its promise, investors should be wary that since AREB stock is trading below the $1 NASDAQ requirement, the company faces the risk of delisting from the NASDAQ. In this way, AREB may resort to effecting a reverse split to maintain its NASDAQ listing which would negatively impact shareholders’ value.
AREB Financials
In its Q1 report, AREB reported QoQ growth in assets from $16.5 million to $17.7 million. At the same time, cash on hand grew slightly from $356.7 thousand to $465.9 thousand. Meanwhile, liabilities increased QoQ to $6.6 million from $5.2 million driven by the company’s $1.7 million line of credit.
As for revenues, AREB reported impressive YoY growth from $154 thousand to $4.4 million and in turn, its gross profit increased from $57.3 thousand to $1.6 million. Although operating costs increased YoY to $1.8 million from $1 million, AREB’s net loss improved significantly from $2.6 million last year to $227 thousand.
Technical Analysis
AREB stock’s trend is neutral with the stock trading in a sideways channel between $.13 and $.17. Looking at the indicators, AREB is trading above the 200, 50, and 21 MAs which is a bullish sign. At the same time, the MACD is bullish to the upside, however, the RSI is approaching overbought at 67.
As for the fundamentals, AREB’s most recent catalyst was its impressive Q1 earnings where the company reported substantial revenue growth. With the company realizing revenues more than its entire market cap, AREB could be one of the most undervalued stocks at the moment – making it an intriguing opportunity for investors at current levels.
AREB Forecast
While AREB stock does not have a significant following, the stock could be poised to soar soon as more investors are starting to take notice of the stock following its impressive Q1 earnings. With the company realizing revenues more than its entire market cap, AREB could be undervalued at current levels. Considering the stock’s low float and potential to further grow revenues in the coming quarters due to the rise in crime rate in the US, AREB stock could be one to watch closely in anticipation of a breakout.
AREB Fundamentals
With a market cap of only $2.9 million, AREB stock appears to be one of the most undervalued NASDAQ penny stocks as the company was able to realize $4.4 million in revenues in Q1 2023. While these revenues represented a 2757% YoY increase from $154 thousand, AREB stock is only up 31% since sharing its Q1 report – leaving the stock trading at a value less than its Q1 revenues.
That said, the reason investors may have not taken notice of AREB could be due to the company not issuing PR highlighting its impressive Q1 financial results. However, AREB has been catching investors’ attention lately which makes it prone to run in the near term. With this in mind, AREB has a low float of 16 million which could allow the stock to run quicker once more investors take notice of the stock.
One possible explanation for AREB’s drastic increase in revenues lies in a need for more guns perpetuated by an increasing crime rate in the US. Between Q1 2021, and Q1 2023 homicides have increased in the US by roughly 10%. Additionally, there have been more than 200 mass shootings in the US in 2023. Given the dire situation, gun purchases may increase this year, and with them gun accessories like those that AREB offers.
If homicides and mass shootings continue to rise at such a drastic rate, gun purchases may further increase as an attempt to obtain security. That said, AREB offers a litany of products that go hand in hand with guns such as gun safes, conceal carry jackets, and many other items. An increase in gun purchases due to the aforementioned reason may cause an increase in the purchase of gun-related items, which would boost AREB’s revenue in the coming quarters. In light of this, AREB stock could be an extremely undervalued play at current levels given its potential to continue growing its revenues in the future.
Despite its promise, investors should be wary that since AREB stock is trading below the $1 NASDAQ requirement, the company faces the risk of delisting from the NASDAQ. In this way, AREB may resort to effecting a reverse split to maintain its NASDAQ listing which would negatively impact shareholders’ value.
AREB Financials
In its Q1 report, AREB reported QoQ growth in assets from $16.5 million to $17.7 million. At the same time, cash on hand grew slightly from $356.7 thousand to $465.9 thousand. Meanwhile, liabilities increased QoQ to $6.6 million from $5.2 million driven by the company’s $1.7 million line of credit.
As for revenues, AREB reported impressive YoY growth from $154 thousand to $4.4 million and in turn, its gross profit increased from $57.3 thousand to $1.6 million. Although operating costs increased YoY to $1.8 million from $1 million, AREB’s net loss improved significantly from $2.6 million last year to $227 thousand.
Technical Analysis
AREB stock’s trend is neutral with the stock trading in a sideways channel between $.13 and $.17. Looking at the indicators, AREB is trading above the 200, 50, and 21 MAs which is a bullish sign. At the same time, the MACD is bullish to the upside, however, the RSI is approaching overbought at 67.
As for the fundamentals, AREB’s most recent catalyst was its impressive Q1 earnings where the company reported substantial revenue growth. With the company realizing revenues more than its entire market cap, AREB could be one of the most undervalued stocks at the moment – making it an intriguing opportunity for investors at current levels.
AREB Forecast
While AREB stock does not have a significant following, the stock could be poised to soar soon as more investors are starting to take notice of the stock following its impressive Q1 earnings. With the company realizing revenues more than its entire market cap, AREB could be undervalued at current levels. Considering the stock’s low float and potential to further grow revenues in the coming quarters due to the rise in crime rate in the US, AREB stock could be one to watch closely in anticipation of a breakout.