Stocks & Stones blog - August 6th Decisive uses a disciplined acquisition strategy to identify already profitable, well-established, high-quality manufacturing companies with a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and strong leadership.
Since 2023, the company has made several acquisitions and hiked its dividend, gaining the favour of institutional investors and brokers. The stock was a star performer in 2023, with a 58% increase and a slew of new analyst coverage.
However, Decisive didn't meet expectations in Q1 2024, citing a challenging macro environment and softer demand for some of its products. Management also mentioned they expect Q2 to be softer.
A quick look at the stock chart will tell you everything you need to know about the current consensus. Investors and analysts expect an underwhelming quarter. Perhaps that's already fully priced in, but I wouldn't rule out a negative earnings surprise or a softer outlook for the remainder of the year. Based on my experience, bad quarters tend to be followed by more bad quarters.
The company will report on August 8th after the market close.