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...

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