This Footwear Stock is Back on Sale

Added to our Focus List – Long Model Portfolio on May 16, 2018.

Earnings season can provide opportunities to investors who are willing to buck the market trend. It can be scary to buy a stock that’s just dropped 30%, but sometimes the drop is simply an overreaction to one bad quarter. If the long-term trend in fundamentals remains intact, an unwarranted drop in valuation can lead to a great buying opportunity.

We recommended this stock to investors in April 2016, and we doubled down on the call after it dropped 25% on an earnings miss a few months later. The stock rebounded and ended up outperforming the market over a two-year holding period, after which we closed the position this March. 

Not a Member Yet?

You need a Gold Membership or higher to view the content on this page.
Start Your Gold Membership Today | New Constructs Member Login

Photo Credit: Rainmain Lin (Flickr)

Leave A Response

* Denotes Required Field