Shares of Ollie's Bargain Outlet Holdings (OLLI) have been under heavy selling pressure lately. The stock is down by more than 45% from its highs of the year, mostly due to industry-wide pessimism and declining same-store sales from the company. However, the business remains solid from a fundamental perspective, with both total revenue and earnings growing nicely. At current prices, the risk and reward trade-off in Ollie's looks favorable to the bulls over the middle term.
The Reasons For The Decline
First and foremost, it is important to understand the broad market context