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.