Investment Analyst Kyle Guske II sat down with Chuck Jaffe of Money Life to talk about our Danger Zone picks this week: Allbirds Is Already Overvalued at Expected IPO Valuation.
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.
The fundamentals no longer look strong enough for us to continue recommending the stock as one of our top long ideas, so we are closing this position with respectable gains and outperformance.
The Small Cap Growth style ranks eleventh out of the twelve fund styles as detailed in our 4Q16 Style Ratings for ETFs and Mutual Funds report. Last quarter, the Small Cap Growth style ranked eleventh as well. It gets our Dangerous rating.
Shares of Skechers (SKX) plummeted over 20% last week. We think the markets are overreacting to a limited data set. Not only do quarterly results tend to be volatile, one three-month reporting period is rarely enough to establish a clear trend.
Our Most Attractive Stocks (+1.7%) outperformed the S&P 500 (+0.7%) last month. Our Most Dangerous Stocks (+2.3%) underperformed the S&P 500 (+0.7%) last month.
Investors should be excited about a new addition to our Most Attractive Stocks list: Skechers (SKX). This stock offers a unique combination of growth potential, strong profitability, and a valuation with low market expectations.