First things first – I’m not an advocate of focusing on short-term stock performance. I am an advocate of opportunism, though, and sometimes short-term wobbles can create windows of opportunity. Such could be the case today with Schneider Electric (OTCPK:SBGSY) – the shares have been a little sluggish since my last update and on a year-to-date basis relative to the wider industrial space and peers like ABB (ABB), Eaton (ETN), and Siemens (OTCPK:SIEGY).
I remain a big believer in both the macro opportunities in front of Schneider (automation, digitalization, electrification, et al) and the company’s ability to leverage those opportunities into above-average revenue growth, margin improvement, and free cash flow. I can’t say that I find the shares a screaming bargain today, but the long-term prospective return is still reasonable and a reasonable return from a good company that I believe has more leverage to outperformance isn’t a bad thing.
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Recent Sluggishness In Schneider Electric's Share Price Worth Watching
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