Alan Brochstein, CFA
Contrarian, growth at reasonable price, management change, cannabis stocks

Apogee Enterprises: Long-Term Thesis Intact Despite Soft Quarter

After it reported its FY14-Q1 in late June, I recommended Apogee Enterprises (NASDAQ:APOG) as a high-quality company led by a new CEO, with significant margin expansion potential as well as a potential beneficiary of improved commercial construction, suggesting the stock could appreciate from $24 to $37.50-42 over the next 2-3 years. The company fell short of analyst consensus for both sales and earnings for its Q2, which it reported after the market close on 9/18. Despite the shortfall in sales, which grew only 1% from a year ago, earnings growth was still robust at + 17%, demonstrating the margin expansion that is central to my thesis. After it was hit with some profit-taking early the following morning, the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details