Overstock Jumps as Piper Calls Stock Undervalued, Despite Massive Rally

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Investing.com — Overstock.com (NASDAQ:OSTK) soared more than 22% after Piper Sandler (NYSE:PIPR) said it is undervalued, even after multiplying from $10 in April to more than $111 on Monday.

“There are seismic forces at work that have dramatically improved the sales and profitability outlook for OSTK well into the future,” Seeking Alpha reported Piper analyst Peter Keith as saying. He initiated the online retailer at a buy-equivalent.  

Home furnishing sales have increased as Americans hunkered down, and Keith sees a favorable backdrop for another five years, according to Seeking Alpha. 

In late July, Overstock.com reported earnings per share of 84 cents on sales of $782.5 million, compared to the estimate loss per share of 7 cents on expected revenue of $597.6 million, according to analysts tracked by Investing.com.

Second quarter sales jumped more than 100%, the company said in its earnings presentation.