NASDAQ:TBLT   ToughBuilt Industries, Inc.
Focused on the building industry, ToughBuilt Industries, Inc. (NASDAQ: TBLT) designs, manufactures, and distributes home improvement and construction products. TBLT stock has been trending lately among Reddit and Fintwit investors after soaring 300% over the past weeks thanks to speculations regarding a short squeeze. With the company actively pursuing deals to expand its offerings across the US and Europe, TBLT stock could be one to watch closely this year for significant financial growth.

TBLT Fundamentals

With a vast portfolio of impressive products, TBLT is well-known for its high-quality soft goods, metal goods, and electronic goods. Through these product lines, TBLT has been able to show consistent financial growth over the past years. Considering the popularity of the company’s products in the building industry, TBLT has been constantly looking for opportunities to expand its offerings across the US and Europe to meet the high demand for its products.

On that note, TBLT recently entered into an agreement with Ace Hardware USA and International to sell 35 products of the company’s most popular items. According to this agreement, Ace will utilize its 15 regional service centers to distribute TBLT’s products to more than 5500 individual Ace stores across the US. Following this agreement, TBLT stock surged 36% thanks to investors bullish on the agreement’s potential. With this in mind, TBLT stock could be one to watch for additional deals since the company has been actively seeking partnerships to further grow financially.

Meanwhile, TBLT is also working on expanding its footprint in Europe as the company launched 93 of its products on Amazon Italy and Amazon Germany. Through its expansion strategy in Europe, TBLT intends to familiarize customers with its products to grow awareness of its brand at a much faster pace.

With this in mind, TBLT has been doing a tremendous job in increasing its Amazon sales this year. In Q2, TBLT realized $3.5 million in revenues from Amazon sales only. These revenues represent a significant 20% increase from a year ago. Moreover, sales for the first half of this year increased by 24% from the same period last year to $7 million. Since Amazon sales are considered by the company as a main drive for revenue growth, the company’s recent offering on Amazon Italy and Germany could position TBLT to realize major revenues this year.

These plans in Italy and Germany come after the company previously expanded its offerings through 500 stores across France. These stores included well-known national and multinational chain brands including Toolstation, Setin Group and Gedimat. In the meantime, Toolstation offers 50 TBLT products and Setin offers 26 best-selling TBLT products. Meanwhile, Gedimat offers TBLT’s entire product portfolio. In light of these expansions in Europe, TBLT could be poised to generate record revenues this year. In this way, TBLT stock could be one of the best stocks to hold this year.

In addition to its current product lines, TBLT has been planning and designing a new line of mobile devices and accessories to be used in the construction industry since 2013. This new product line is expected to launch into the market in late 2024 and TBLT intends to market these new products to its current customer base throughout the world. These devices were designed in accordance with IP-68 and have a military standard level of durability. Moreover, these devices will include customized technology and a wide variety of data to benefit building professionals and enthusiasts. Based on this, TBLT could be a leader in the building industry since its products cover all the aspects of the industry.

Given that the company requires significant funds to operate its business, TBLT has been actively securing these funds through offerings. Most recently, TBLT closed a private offering with institutional investors for the issuance and sale of 4 million shares and options to purchase up to 8 million shares at $5 per share. Through this offering, TBLT raised $20 million in gross proceeds and intends to use these proceeds to fund its operations. While these offerings could impact shareholders’ value, the funds raised could help TBLT explore further growth opportunities and develop new products.

In the meantime, TBLT stock is gaining momentum among Reddit and Fintwit investors thanks to its short squeeze potential. With a short interest rate of 133.1% and a 364.9% cost to borrow, TBLT stock could be a prime short squeeze candidate. As the company has been sharing positive news lately, many investors are bullish more updates could send TBLT stock past $10.

TBLT Financials

In its Q1 report, TBLT’s assets slightly declined to $77.4 million from $78.9 million in the previous quarter. In addition, liabilities increased from $21 million to $29.7 million mainly due to the increase in accounts payable to $21.9 million compared to $14.4 million. Meanwhile, TBLT’s revenues grew $17.2 million compared to $12.2 million a year ago. However, operating costs increased from $9.3 million in Q1 2021 to $18.4 million. Based on this, the company reported a net loss of $12.1 million despite reporting $6 million in the same year-ago period.

Technical Analysis

TBLT stock is currently trading at $8.56 and has supports at 8.22, 6.92, 4.13, and 3.24. The stock also shows resistances near 8.98 and 10. After the company launched 93 products on Amazon Italy and Amazon Germany, TBLT climbed by as much as 33%. With the stock witnessing an extremely high short selling activity, TBLT could continue surging and break through $10 if the company continues sharing positive news.

With TBLT retesting its resistance twice and failing to break through it, the stock could be poised to retest its support in the near future. With this in mind, there are 2 gaps on the chart near $6.2 and $4.6 that have to be filled. If the stock fills these gaps in the near term, these price levels could be good entry points for investors bullish on TBLT’s short squeeze potential.

Accumulation is currently stable after a recent downtick thanks to investors taking profits. Meanwhile, the MACD is bullish to the upside. The RSI cooled off slightly from 72 to 67 indicating that TBLT is slightly overbought. Based on this, bullish investors could wait for the RSI to regulate before entering a new position for the opportunity to realize more gains in case TBLT stock’s short squeeze continues gaining traction.

TBLT Forecast

As the company is looking to grow awareness of its brand globally, TBLT appears to be well-positioned to achieve this target following its products’ launch on Amazon Italy and Amazon Germany. At the same time, the company previously expanded in France with its products currently offered across 500 stores. Meanwhile, TBLT’s recent agreement with Ace to offer its products across 5500 Ace stores across the US could help the company witness substantial financial growth in the coming quarters. In light of these expansions, TBLT appears to be well-positioned to report record revenues this year.

Meanwhile, TBLT stock could be an intriguing investment in the short-term thanks to its short squeeze potential. With the company witnessing an extremely high short interest rate of 133.1% and a high cost to borrow of 364.9%, many investors are bullish TBLT stock’s short squeeze could continue over the coming weeks. With the company sharing a series of positive news lately, TBLT could continue its run if the company releases more updates.