Consumer Discretionary
At 3.1x P/E ratio, the stock is too cheap to ignore - poor results recently were due to supply chain issues and not a structural decline in the business. QRTEA boasts an attractive business model (including a misunderstood customer base) that generates high levels of profit (11% operating margin vs. median retail comp of ~7%) and strong levels of FCF (FCF yield of 26%). Jonathan Boyar forecasts QRTEA will retire 22% of shares outstanding by the end of 2023 and believes the firm is ripe for a takeover / going private. TP $18.81 (120% upside).
Edition: 125
- 10 December, 2021