The timing appears opportune to go long in shares of SiteOne Landscape Supply, Inc. as we anticipate another pick-up in the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● Historically, the company has been releasing figures that are above expectations.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The stock is in a well-established, long-term rising trend above the technical support level at 140.69 USD
Weaknesses
● With an expected P/E ratio at 50.88 and 49.4 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
SiteOne Landscape Supply, Inc. is a wholesale distributor of landscape supplies in the United States and has a growing presence in Canada. Its customers are primarily residential and commercial landscape professionals who specialize in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces. The Company offers a comprehensive selection of approximately 160,000 stock keeping units (SKUs) including irrigation supplies, fertilizer, and control products (herbicides), hardscapes (including pavers, natural stone, and blocks), landscape accessories, nursery goods, outdoor lighting, and ice melt products to green industry professionals. It also provides value-added consultative services, which include assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars.