It’s tanking on earnings, but short-term hiccups are to be expected while management continues to execute on long-term plans.
Fundamentally, it’s a solid company. Technically, there’s an opportunity to profit in the midterm.
In my opinion the sellers are wrong and the market is overreacting.
For a decade it’s continued to rise relentlessly proving all doubters wrong.
There are experts on Wall Street who suggest it’s a value trap. While that is a possibility, I can profit off of what others fear without any out of pocket expenses.
The uncertainties that exist today won’t last forever. Once they pass, the underlying company still has the benefit of lower taxes, favorable interest rates, strong consumer spending and excellent innovation.
The naysayers are wrong– it’s still healthy and has better days ahead.
Wall Street didn’t like Tuesday’s earnings report. The stock though, is up 68% this year and one down day is not the end of its upside.
In addition to sporting a lean price to earning ratio of 8, it’s entering a well-consolidated area that should help it stabilize.
A small miss on profitability guidance is nothing to fret. As long as growth is on tap, I don’t mind a few setbacks on the bottom line.