Is it Time to Sell Helen of Troy Near All-Time Highs?
Helen of Troy (NASDAQ: HELE) is a large-cap producer of household, kitchen, personal care, and beauty products. Shares are up 4.2% since the company reported earnings on Oct. 8. When a multi-billion dollar consumer staples company with a global footprint surges or falls that much in such a short period, it is valid to question the valuation either before or after the surge because fundamentals for a company of this scale are not that volatile.
The most recent quarter exceeded revenue and earnings forecasts, and management raised guidance for the remainder of the year -- so, it could be the case that shares were discounted previously, and the new price more accurately reflects the company's fundamentals.
Helen of Troy shares are approaching the all-time high were achieved last month, bouncing back from a brief slide leading up to earnings. Since the lowest point of the 2009 market downturn in March of that year, Helen of Troy shares have appreciated 1,046%, far exceeding the S&P's 277% growth and the 209% return provided by iShares U.S. Consumer Goods ETF.
Source Fool.com
