2024-04-06 01:18:55 ET
Summary
- Shares of Patterson Companies have seen unjustified downside despite solid revenue growth and management's investments in the future of the firm.
- The company's profitability metrics have worsened, but management says it is due to investments being made.
- Patterson Companies' stock is cheap on an absolute basis and relative to similar firms, and management is taking advantage by initiating a share buyback program.
One of the most difficult aspects of investing is the fact that the market can be rather inefficient from time to time. It might seem efficient, for instance, to push shares of a business down when that business is seeing mixed or even worsening financial performance. But when the shares of the company in question are already trading at really low levels, further downside becomes irrational unless you are planning for a steep decline in revenue or profits moving forward. One company that has seen an unjustified bit of downside, even in light of profitability issues, is Patterson Companies ( PDCO ), a firm that's focused on distributing dental and animal health products throughout the US and Canada....
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Patterson Companies: Smiling Through The Pain