SLQT - SelectQuote: Buy The Dip

• SelectQuote's shares dropped more than 20% after the company reported fiscal Q3 results.
• The company's 80% y/y revenue growth trounced expectations.
• However, at issue was the company's shrinkage in adjusted EBITDA margins, a surprise after a period in which SelectQuote had been able to consistently drive margins upward.
• The company is chasing growth: it has hired aggressively to market its senior policies, driving profit margins in its flagship division downward.
• I'd say that while the profit shrinkage is a disappointment, SelectQuote's cheaper valuation and its still-strong growth rates more than make up for it.

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