Canada Goose: Should You Bet on a Rebound? - InvestingChannel

Canada Goose: Should You Bet on a Rebound?

Canada Goose (TSX:GOOS)(NYSE:GOOS) stock was up 1.31% in mid-afternoon trading on June 4. Shares have now dropped 23% in 2019 so far.

The Toronto-based clothing manufacturer has posted impressive growth since its public listing, but its most recent quarterly report saw it miss analyst expectations.

Canada Goose released its fourth-quarter and full-year results for fiscal 2019 on May 29. Its reported revenue of $156.2 million fell below Bloomberg’s estimate of $158.9 million. The company’s revenue growth of 25% was the slowest it has posted since its initial public offering in March 2017.

However, Canada Goose’s global growth potential still looks bright. Its expansion into China seemed to face an obstacle in late 2018, but the store opening in Beijing went very well.

Now, Canada Goose stock is hovering around a 52-week low. The stock is down 16.8% year over year. Shares have experienced a lot of volatility since the late spring of 2018, and broader economic headwinds are unlikely to help matters.

Worsening trade tensions are expected to curb global growth, which could punish the retail sector in domestic and international markets.

Still, the correction for Canada Goose makes it an enticing target in the beginning of June. It has had early success in China and other international markets, and it is still very early in its global push. Shares had an RSI of 26 as of late afternoon trading on June 4. This puts Canada Goose stock in technically oversold territory.