Even though SYF’s valuation remains cheap, its declining fundamentals and the risk of further contract losses make the risk too high to remain in the stock.
Greater emphasis on ROIC among executives should increase the efficiency of the capital markets and create opportunities for investors to benefit from improved corporate governance.
There is one company that is capitalizing on this growing market and making a lot of money while doing so. Meanwhile, most investors do not understand its potential and have left the stock significantly undervalued.
This week, we’re highlighting another cheap retailer that was recently confirmed as a buyout target. This firm also has a high and sustainable dividend yield and upside potential even without an acquisition.
This company is uniquely well-positioned to capitalize on the growth in this overlooked, niche market. However, the expectations baked into the stock price remain too low.
A decline in fundamentals, along with an increasingly competitive industry, lead us to close this position and remove it from our Focus List – Long Model Portfolio.
Leveraging our Robo-Analyst technology, which analyzes the holdings of all 7,908 ETFs and mutual funds under coverage, we found this ETF with high quality holdings that should appeal to sophisticated value investors.
It can be scary to buy a stock that’s just dropped 30%, but if the long-term trend in fundamentals remains intact, an unwarranted drop in valuation can lead to a great buying opportunity.
A decline in fundamentals, along with a weakening competitive position (KNL no longer earns the highest ROIC among competitors) lead us to close this position.
David Trainer sat down with Alyona Minkovski of Real Vision TV to talk about our recent Long Idea “Rising from the Ashes to Lead a New Retail Paradigm.”