Strong cheap growth socks
10/6/2024 08:45pm
Given your interest in strong, cheap, and growing socks, we should focus on companies in the socks industry with the following characteristics:
1. **Low Valuation**
- P/E Ratio 10%
3. **Positive Cash Flow Growth**
- 3-Year Operating Cash Flow CAGR > 0
4. **Low Leverage**
- Debt-to-Equity Ratio < 0.5
However, no results were found that meet all these criteria. This could be because such companies either do not exist or are not listed on the stock exchanges with the data available. To find similar opportunities, we can look at companies that come close to meeting these criteria or consider the following alternative approach:
1. **Crocs (CROX)**
- Crocs has been growing faster than expected with an earnings multiple that is hard to believe.
- The company has been giving back gains lately, but this could present an opportunity for investors.
- Crocs is very profitable and can be bought for just 7 times its earnings guidance for 2023.
2. **On Holding (ONON)**
- On Holding has seen significant net sales growth compared to the other companies discussed.
- The company's guidance for the fourth quarter implies growth, although it is lower than Crocs' growth.
3. **Deckers Outdoor (DECK)**
- Deckers Outdoor, the parent company of UGG, has better profit margins than Nike and is growing faster than Nike.
These companies offer strong growth potential and are priced attractively, making them worthy of consideration for investment.