SPWH - Sportsman's Warehouse Seems Cheap But The Risk Is Too High
2024-02-07 15:17:38 ET
Summary
- SPWH is a leading hunting equipment retailer in the US western regions.
- The company has an interesting competitive position for the long-term, but has suffered from a lack of efficiencies.
- In this context, the company does not have a lot of cushion or protection against a potential recession, and its equity is at significant risk.
- On the other hand, even a moderate scenario could prove positive for the company's stock.
- Because I prefer to lean into risk-aversion, I do not recommend SPWH.
Sportsman's Warehouse ( SPWH ) is a leading American hunting equipment retailer, especially in the country's west.
Since I first covered SPWH in September 2022, with a hold rating recommending against a purchase, the company's stock price has decreased by nearly 60%....
Sportsman's Warehouse Seems Cheap But The Risk Is Too High