DTC Index: Relative valuations at multi-decade lows
Douglas Lane’s DTC Index trades at a 45% discount to the S&P 500, which is the lowest prospective relative P/E ratio for the Index since the tech bubble 20+ years ago - Douglas argues value-oriented investors may want to start to move into some of the names in this group given their financial strength, above average gross margins, strong FCF generation and pricing power in what tends to be more defensive product categories. Buy-rated stocks include Herbalife, Nu Skin and Medifast.