With impressive profitability and a significantly undervalued share price, this firm earns a spot in January’s Most Attractive Stocks Model Portfolio and is this week’s Long Idea.
The disconnect between fundamentals and valuation, coupled with a weak competitive position, and misaligned executive incentives land this firm in the Danger Zone.
Our Most Attractive Stocks (+0.0%) underperformed the S&P 500 (+2.1%) last month and our Most Dangerous Stocks (-0.7%) outperformed the S&P 500 (+2.1%) as a short portfolio last month. See two of the additions to this month’s model portfolio.