Should you buy or sell Leslie’s stock after plunging more than 10%?
On Monday, Leslie’s Inc. (NASDAQ:LESL) shares plummeted by more than 3%, extending Friday’s post-earnings declines to over 10%. The company announced its most recent quarterly results Thursday after the close, beating the consensus for analyst expectations on revenue and earnings. Leslie’s also announced a $300 million share repurchase authorization.
The company posted FQ3 non-GAAP earnings per share of $0.26, beating the consensus analyst estimates of $0.25. On the other hand, its GAAP earnings of $0.23 per share missed the average analyst estimate of $0.25, while revenue for the quarter increased by 7.2% from the same quarter a year ago to $408.92 million, beating expectations by $20.88 million.
Leslie’s now expects to post a full-year revenue in the range of $1.475 billion to $1.5 billion, ahead of the consensus Street forecast of $1.42 billion. In addition, the company is also forecasting an EPS of $0.94-$1.00 for the year, topping the average analyst expectation of $0.90.
Leslie’s looks like a good bet
From an investment perspective, the US swimming pool supplier trades at reasonable trailing 12-month and forward P/E ratios of 33.43 and 21.21, respectively. Therefore, the stock could gain the interest of value investors.
Moreover, analysts expect its EPS to rocket by 100% this year, before rising at an average annual rate of 32.80% over the next five years, thus attracting long-term growth investors.
Technically, Leslie’s shares seem to have recently pulled back to find the trendline support of the triangle formation.
Therefore, investors could target potential technical rebounds at about $22.06, or higher at $24.05, while $18.04 and $16.05, are crucial support zones.
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