Q: Why did ATD stock prices drop dramatically twice in past year: 1)Feb 23, 2024 from $82.55 down to April 4 2024 at $74.18, and then again 2) July 31, 2024 at $85.11 to Aug 7 2024 at $78.39, please?
5i Research Answer:
The two drops were largely attributed to the slight misses in earnings of the company’s Q3 and Q4 FY2024. In addition, the two mild drawdowns also coincided with the two quick drawdowns of the overall market (one in April and the most recent one in early August). We think volatility is the price of admission in holding equities and achieving above-average returns, this may offer opportunities for investors to add to the position at discounted valuations, what matters is the company’s fundamentals over the long term.