Remaining faithful to a value-oriented philosophy sometimes leaves you
feeling like you're rooting for certain companies to stumble. Take the
case of Middleby (Nasdaq:MIDD). While acquisitions
have clearly played a major role in building the company, management
has done pretty well in sustaining that growth on an organic basis and
developing new equipment to improve the efficiency and profitability of
restaurants. Unfortunately, as a very good growth stock, these shares
seldom get to a valuation where value or GARP investors can feel comfortable loading up.
With another quarter in the books, Middleby continues to grow at a rate
well above its peers and the industry as a whole. What's more, with the
restaurant industry apparently feeling more comfortable about near-term
trends, it doesn't sound like a stumble in demand is coming.
Nevertheless, Middleby is a good stock to keep on watchlists just in
case, and more growth-oriented (and less valuation-sensitive) investors
may find there's nothing wrong with buying in today.
Please read more here:
http://www.investopedia.com/stock-analysis/051013/middleby-keeps-sticking-successful-recipe-midd-eat-mtw-itw-dov.aspx
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