Q: Do you like this stock? Would you buy it today? (It tends to yoyo a lot and has dropped or not seen a lot of momentum in the past few years.)
5i Research Answer:
The stock is 'bouncy' certainly. We think it is a decent company but we did not like the decline in sales in the last quarter, especially in a period where inflation is still present. Yes, some of its weakness was clearly related to the weather. But at 22X earnings, we think the valuation could be adjusted to reflect the current lack of growth. Thus, we would fairly reluctant to start an aggressive buy program on the stock today.