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.”
The market has failed to recognize the resilience and strength of this business, and the stock’s valuation implies a permanent decline in profits based on a misunderstanding of the trajectory of the business.
The decline in fundamentals along with what appears to be a weakening competitive position versus Walmart (WMT) and Amazon (AMZN) lead us to close this position.
The market has recognized some of the turnaround (shares are up 40% in the past year), but investors are missing the critical role the firm could play in the next chapter of retail as well as the balance sheet story.
Our approach to fund research led us to a fund that backs up its past outperformance by allocating to better stocks than its benchmark while charging below-average fees.
Investments in artificial intelligence are already improving profitability and efficiency, which when combined with a cheap valuation make this bank this week’s Long Idea.