Guru Fundamental Report for OPEN

Validea's Benjamin Graham-based Value Investor model assigned OPENDOOR TECHNOLOGIES INC (OPEN) a 57% rating, the highest among the firm's 22 guru strategies, yet still below the 80% threshold for investor interest. The mid-cap real estate growth stock failed critical deep value criteria, specifically long-term EPS growth, P/E ratio, and price/book ratio, despite passing balance sheet health metrics, suggesting it does not currently align with a strict value investment profile.

Analysis

Below is Validea's guru fundamental report for OPENDOOR TECHNOLOGIES INC (OPEN). Of the 22 guru strategies we follow, OPEN rates highest using our Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth. OPENDOOR TECHNOLOGIES INC (OPEN) is a mid-cap growth stock in the Real Estate Operations industry. The rating using this strategy is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. | SECTOR: | PASS | | SALES: | PASS | | CURRENT RATIO: | PASS | | LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS | | LONG-TERM EPS GROWTH: | FAIL | | P/E RATIO: | FAIL | | PRICE/BOOK RATIO: | FAIL | Detailed Analysis of OPENDOOR TECHNOLOGIES INC More Information on Benjamin Graham About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time. Additional Research Links High Free Cash Flow Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. OPENDOOR TECHNOLOGIES INC (OPEN) received a 57% rating from Validea's Benjamin Graham-based Value Investor model, representing its highest score among 22 tracked guru strategies. However, this rating falls substantially below the 80% threshold typically indicating investor interest, suggesting the stock does not currently present as a compelling deep-value opportunity according to Graham's stringent criteria. A detailed analysis of OPEN's fundamentals reveals a split performance against the deep-value methodology. While the company demonstrated balance sheet strength by passing tests for sales, current ratio, and long-term debt in relation to net current assets, it critically failed key value investment metrics. Specifically, OPEN did not meet the criteria for long-term EPS growth, P/E ratio, and Price/Book ratio, which are foundational to Graham's approach for identifying undervalued securities. These valuation and growth shortcomings directly contribute to the moderately negative sentiment assigned to OPEN from a deep-value investment perspective. For professional investors prioritizing the principles of Benjamin Graham, OPEN's current profile, characterized as a mid-cap growth stock, significantly diverges from the low P/E, low P/B, and consistent long-term earnings growth typically sought.

Key Decisions for Investors

• Value-oriented investors should exercise caution, as OPENDOOR TECHNOLOGIES INC (OPEN) currently does not align with strict deep-value investment criteria due to its elevated P/E and P/B ratios and insufficient long-term EPS growth.
• Monitor OPEN for significant improvements in its valuation metrics or a sustained acceleration in long-term earnings per share growth before considering it for a value-centric portfolio.
• Growth investors may still find OPEN appealing given its mid-cap growth stock classification within real estate operations, but should conduct separate due diligence beyond a deep-value framework to assess its growth prospects and risks.