Reluctant as I was to get off the Schneider Electric (OTCPK:SBGSY) (SCHN.PA) a little while ago, I still have this crazy notion that valuation ought to matter. Since my last update, Schneider has modestly underperformed its industrial peer group, including Eaton (ETN), but the shares have still outperformed companies like ABB (ABB) and Rockwell (ROK), not to mention the S&P 500 as a whole.
I still love the secular growth stories at Schneider, and I still believe that management maybe still doesn’t get full credit for the improvements they’ve made – I say “maybe” because although the shares have done well, there still seems to be a stubborn “show me” attitude with more than a few analysts. In any case, I love Schneider’s leverage to automation (factory and elsewhere), greener buildings, data growth, and so on. A growth story in a growth market can still work, but I’d really prefer to buy in at a lower valuation than what’s available today.
Read more here:
Schneider Electric Leveraged To Multiple Secular Growth Drivers
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