PSMT - PriceSmart: Valuation Improving After The Drop
- PriceSmart is one of the worst-performing names in the Retail Sector this year, down more than 20% vs. a 45% gain for XRT.
- While the company posted decent results in its fiscal Q4 and FY2021 report in October, supply chain headwinds continue to persist, and the Caribbean business has struggled.
- With PriceSmart down 33% from its year-to-date highs, the valuation has improved, but the technical picture is less rosy, with no meaningful support level nearby.
- Given the poor relative strength performance vs. its benchmark, I believe there are much better opportunities elsewhere in the sector.
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PriceSmart: Valuation Improving After The Drop