Opinions
Jim Huang
Sleep Country Canada
ZZZ-T
BUY
Jan 30, 2019
He's recommended it before. There's been a malaise in the North American mattress space (i.e. Sears going under). They continue to do well online and will continue to grow their market share.
$20.930
Stock price when the opinion was issued
household goods
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He has liked this stock for some time. They disappointed analysts last year and that is now behind them. You should start to see very good year over year comparisons. The multiple got traded down into 12 times earnings. As the comparisons improve he expects the multiple to improve taking the stock back to the mid-$30s share price. It may be by the end of next year. Yield 3.6%
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A great one to buy at the height of Covid. This has come back with a vengeance. Amazing Q4 report and the housing market is on fire. Factors lined up for ZZZ. They've managed debt well. It's a one-product business, though, so keep that in mind and don't pay a big PE. Their growth will follow wider economic growth rates. Also, competition has heated up a lot.
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