Q: Propel stock had, lately been doing well, hitting a high of $42, late January, after an analyst upgrade. Today, a month later, it has done full circle, back to $34.50, where, it was trading since October, 2024.
Is this just profit taking or a shadow of the big brother GSY ( just reported ), in your view, or something has changed ( Trump jitters ) ?
Do you still continue to expect excellent growth ( UK acquisition etc ) and would be comfortable adding after this pullback ?
Thank You
Is this just profit taking or a shadow of the big brother GSY ( just reported ), in your view, or something has changed ( Trump jitters ) ?
Do you still continue to expect excellent growth ( UK acquisition etc ) and would be comfortable adding after this pullback ?
Thank You
5i Research Answer:
It is down 8% year-to-date, but up 98% over the past year, and this could be a combination of investors taking profit, fears and uncertainty around its upcoming earnings following GSY's results, and economic slowdown fears.
Its growth profile is great, its market expansion is booming, it trades at a cheap valuation of 10.6X forward earnings, but we would like to see it find some support around the $34 range. If it breaks below $34, it could invalidate its uptrend from late 2023, and while its fundamentals look great, we would prefer to see its price find a floor/support before adding to this name. Its upcoming earnings could be a catalyst for the name finding a support, and we would look to see how it trades until then.