It’s a long-term winner that’s trading at a highly unattractive valuation. Don’t buy it at current levels but consider it on weakness.
Although it’s up 70%-plus from it’s May IPO, with big unit expansion, big traffic growth, big ticket growth, and big margin improvements it will continue to run materially higher.
Its recent plunge offers an attractive entry point into this long-term winner, with sizable upside catalysts on the horizon.
Five positive catalysts will drive it higher.
It looks like the slowdown isn’t temporary.
They all look particularly attractive amid recent weakness and ahead of the holiday shopping season.
If growth stabilization persists- and it should- the past years selloff could turn into a rally.
On the heels of a 30% rally over the past year, it’s now battling valuation headwinds. So long as these valuation headwinds stick around, shares will likely be stuck in neutral.
The numbers and narrative have improved. Investors are realizing it shouldn’t be this cheap so they’re gobbling up shares in bulk, and the stock is flying higher.
A strong third-quarter earnings report confirmed that profitability concerns surrounding it are unnecessarily short-sighted.