Disappointing short-term trends can mask long-term value creation and lead noise traders to sell off a quality company. These knee-jerk reactions create opportunity for sophisticated investors.
This firm has consistently grown profits for two decades, holds nearly 50% market share, recently expanded into Europe via acquisition, and has a history of successfully integrating acquired firms. Despite these positives, the market remains focused on a couple of recent disappointing quarters, and the stock is priced as if profits will permanently decline. Thor Industries (THO) is this week's Long Idea.