Q: Hi, Why the Propel stock keeps dropping, despite excellent results ? Now, seems like, it has broken below the $25 support level ( recent gap up after earnings ) and is down $6 or, 20%, from the post earning bounce. Is it worth accumulating around $23 ? Thanks
5i Research Answer:
PRL seems to be finding a bit of support today, and we would like to see this area hold.
It trades at 10.5X forward earnings and since the latest earnings results, nothing has changed. We continue to like the name and feel that its recent pullback has been profit-taking as the stock has increased 10% over the past month, 43% over the past three months, and 88% on a year-to-date basis. We would be comfortable accumulating at current levels.