Got $100? Buy the Dip on This Beaten-Down Growth Stock
Consumer discretionary stocks have been on a roller-coaster ride so far in 2022, in the wake of stubbornly high inflation, rising interest rates, and turbulence from the war in Ukraine. Year to date, the S&P 500 Consumer Discretionary index is down 18.8%, underperforming the broader S&P 500, which has dropped 12.3% in the same time frame. This is rather expected given the questionable economic backdrop, which has prompted consumers to rethink their spending habits of late.
That said, the fresh pullback has created many wonderful buying opportunities for patient, long-term investors. One under-the-radar stock that has caught my attention recently is The Lovesac Company (NASDAQ: LOVE). The up-and-coming furniture retailer is down 44% since the start of the year, and given its market capitalization of just $568 million today, the stock could reward investors with massive gains in the future.
On that note, let's explore Lovesac's current financial state to help decide whether it's a promising long-term bet.
Source Fool.com