Canada Goose (GOOS): Good Company, Expensive Stock

Miller Value Partners recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Miller Value Partners Opportunity Equity Fund posted a return of -38.4% for the quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Miller Value Partners top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Miller Value Partners highlighted a few stocks and Canada Goose Holdings Inc. (NYSE:GOOS) is one of them. Canada Goose is a clothing company. Year-to-date, Canada Goose Holdings Inc. (NYSE:GOOS) stock lost 36.6% and on June 10th it had a closing price of $24.49. Here is what Miller Value Partners said:

“Canada Goose is a premium luxury brand focused on outerwear. It was one of the first to announce problems from the pandemic because of its Asian presence. The stock was $55 a year ago, over $30 in February and $21 today. While this one looks more expensive on today’s numbers at 22x earnings, this unique kind of brand typically trades for a premium and we believe it still has nice growth potential. We think it has greater than 50% recovery potential plus the ability to compound capital over the long term.”

In Q1 2020, the number of bullish hedge fund positions on Canada Goose Holdings Inc. (NYSE:GOOS) stock increased by about 30% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Canada Goose’s growth potential. Our calculations showed that Canada Goose Holdings Inc. (NYSE:GOOS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.