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Stock impact report

3 Reasons to Avoid STKL and 1 Stock to Buy Instead [Yahoo! Finance]

SunOpta, Inc. (STKL) 
Last sunopta, inc. earnings: 2/27 07:30 am Check Earnings Report
US:NASDAQ Investor Relations: investor.sunopta.com/investor-relations
Company Research Source: Yahoo! Finance
Is there a buying opportunity in SunOpta, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free for active Edge members Despite the more favorable entry price, we're cautious about SunOpta. Here are three reasons we avoid STKL and a stock we'd rather own. A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, SunOpta's demand was weak and its revenue declined by 1.6% per year. This wasn't a great result and signals it's a low quality business. With $792.4 million in revenue over the past 12 months, SunOpta is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. All else equal, we prefer higher gross margins because they make it easier to generate more operating profits Show less Read more
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