Generating total returns of over 200% over the last decade and 4,000% since the turn of the millennium, The Toro Company (NYSE: TTC) has historically shrugged off the "cyclical stock" moniker if one zooms out on its timeline.Toro has delivered remarkably stable sales and earnings growth through the decades as a leader in mowing, snow throwing, irrigation, landscaping, and underground construction equipment.

However, cyclicality appears to have finally caught up to the company, as Toro's stock has practically moved sideways over the last three years, despite a 20% to 30% price oscillation up and down in between. The important point is, an investor who bought the stock exactly three years ago would've been in the red by about 5%.

Worse yet, its stock has dropped by 25% in 2023 alone -- propelled by a surprising 7% drop in sales in its most recently reported quarter.

Continue reading

Source Fool.com