On February 28, RealReal (REAL) reports earnings.

This company, which resells authenticated high-end items, is a serial disappointer.

But that may be changing soon.

The company has brought in new management, and based on its reporting, the value of its merchandise is increasing.

That’s great news. But there may be even more reason to take a speculative grubstake in REAL.

Its biggest competitor, Poshmark, was recently taken private at a $1.2 billion valuation, which is about six times REAL’s market cap. And get this… Poshmark had lower sales and metrics than REAL!

On top of that, REAL’s market capitalization is lower than its enterprise value – another sign shares may be undervalued.

Those are two reasons that Trade of the Day Plus and War Room members are already in the shares (and already very profitable).

But there may be more room to run if the company doesn’t disappoint this time. Take a look at the chart – there’s a huge gap to fill here!

As you can see above, REAL has the potential to be a multi-bagger if it can get back on track and report a profitable quarter.

That may be asking too much, but that’s where the speculation comes in!

And keep in mind, REAL’s products see especially high demand during recessions or slowdowns.

People still want to buy their beautiful watch or bracelet… and spending 30% to 50% less for that authenticated Louis Vuitton bag might look a little more attractive than paying full price!

Companies like REAL can be tightly wound springs, as they are in the public eye in commercials all the time.

And the low entry price makes them less of a risk as long as you position size. After all, the shares cost less than a latte at Starbucks – and could be sweeter and last longer!

YOUR ACTION PLAN

In The War Room, we speculate with options… sometimes on small cap and microcap stocks like REAL. Being able to track them in REAL time can be the difference between winning big and losing big. So far this year, we’ve been knocking it out of the park with an 87% win rate, and right now we’re guaranteeing members will receive 252 winning trades in their first 12 months.

Click here to join us and start trading in real time today.