Johnson Outdoors: Encouraging Results Don't Justify An Upgrade

2026-01-01 21:58:43 ET

Back in August of this year, I made the decision to downgrade Johnson Outdoors ( JOUT ) from a ‘buy’ all the way to a ‘sell’. A double downgrade is rather rare in my book. But it does happen from time to time. This decision was in spite of the fact that the company had a strong net cash position. And it was driven by the fact that fundamentals had worsened, with sales declining and profitability taking a hit. Since then, the stock has risen by 3.9%. And at first glance, this might make you think that I have been wrong in my decision to downgrade the company at that time. However, whenever I rate a company a ‘sell’, I am not expecting the stock to fall. Rather, I just expect it to underperform the market for the foreseeable future. And with the S&P 500 up 6.8% since then, that is what happened....

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