What Happened:
Shares of outdoor recreational products company Johnson Outdoors (NASDAQ:JOUT) fell 6.8% in the morning session after the company reported first-quarter results that missed on operating profit by a meaningful amount. The company called out "challenging marketplace conditions" and added that it is "continuing to work hard to improve our cost structure and reduce inventory levels."
On the other hand, revenue beat by a wide margin, though sales declined in absolute terms with all four segments affected by macro challenges. Overall, this was a mediocre quarter for Johnson Outdoors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Johnson Outdoors? Access our full analysis report here, it's free.
What is the market telling us:
Johnson Outdoors's shares are not very volatile than the market average and over the last year have had only 7 moves greater than 5%.
Johnson Outdoors is down 21.5% since the beginning of the year, and at $40.37 per share it is trading 37.2% below its 52-week high of $64.24 from May 2023. Investors who bought $1,000 worth of Johnson Outdoors's shares 5 years ago would now be looking at an investment worth $466.67.
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