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Pro Picks: Three Pandemic Stocks Poised for a Comeback

Jordan McNamee of the Optimist Funds gives his three best ideas with big upside

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Pro Picks from Jordan McNamee of the Optimist Fund

This week on In The Money with Amber Kanwar, I spoke with McNamee about three stocks he believes are pandemic “roadkill” poised for major comebacks. McNamee started his fund in 2022, one of the worst markets ever for his style of investing. But after notching a more than 50% decline in his rookie year, he has clawed his way all the way back and then some with the fund doubling over the past year as of the end of January. Here’s what he’s betting on now:

  1. Carvana (CVNA): The $1,000 Stock?

  • Carvana, the online used car retailer, has been one of the most volatile stocks in recent years. It soared during the pandemic, crashed in 2022 amid fears of bankruptcy, and has since rebounded 4,600% from its lows.

  • Why Jordan likes it:

    • A disruptive, online-first business model with only 1% market penetration.

    • The company survived 2022 with its founding team intact, showing strong commitment.

    • Carvana is now the fastest-growing, most profitable used car retailer in the U.S.

  • Potential upside: Jordan thinks Carvana could hit $1,000 per share within five years, comparing it to Amazon in its early days.

  1. HelloFresh (HFG.DE): A Profit Inflection Story

  • Meal kit giant HelloFresh boomed during the pandemic but lost momentum as people returned to restaurants. The stock, once trading at €90, now sits below €11.

  • Why Jordan likes it:

    • The company shifted focus from growth to profitability.

    • Its newer ready-to-eat meal business (Factor 75) is growing rapidly.

    • The CEO is so confident he personally borrowed €10M to buy more stock.

  • Potential upside: Revenue could grow 5% per year, but profit margins are set to double, making the company significantly more valuable.

  1. ThredUp (TDUP): The Hidden Gem in Secondhand Fashion

  • Unlike Poshmark or Depop, ThredUp owns and operates warehouses that process used clothing at scale, providing a unique moat. The stock has been left for dead, but Jordan sees a major turnaround ahead.

  • Why Jordan likes it:

    • A unique business model that taps into supply others miss.

    • It’s finally reaching profitability after years of losses.

    • The market isn’t pricing in its huge efficiency gains yet.

  • Potential upside: ThredUp is at a critical inflection point, and as it scales profitably, Jordan expects it to get on more investors’ radars in a big way.

Final Thoughts

Jordan sees opportunity in pandemic darlings that investors abandoned too soon. His bet? These businesses aren’t just surviving—they’re thriving.

Want more stock ideas like this? Stay tuned for next week’s edition. We’ve got Cole Smead of Smead Capital Management. He’s an American investor who loves his Canadian energy stocks. We will talk about whether he is still a buyer with crude prices below $70/barrel as well as other value opportunities amidst the big sell-off in stocks. Submit your questions and you could be featured on the show!

DISCLAIMERS: The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.

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