Is iRobot Stock a Buy?
Patent lawsuits, tariff costs, pressure on margins coming from fierce pricing competition. It's not been an easy year for iRobot (NASDAQ: IRBT). That said, the stock is now down more than 45% in 2019, and much of the bad news will already be priced in. Therefore, many investors will be looking at the stock as a potential value investment. Is there a good case for buying iRobot stock? Let's take a closer look.
Two major clues toward the growth stock's near-term prospects have been given recently. The first comes from what management outlined on the recent third-quarter earnings call. CEO Colin Angle discussed how the company attempted to raise prices in the U.S. on its robotic vacuum cleaners (RVCs) in order to offset the cost increases associated with the 25% tariff rate.
iRobot is hoping robotic vacuum cleaners can replace nonrobotic vacuum cleaners. Image source: Getty Images.
Source Fool.com
