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Stock impact report

3 Reasons to Sell TRNS and 1 Stock to Buy Instead [Yahoo! Finance]

Transcat, Inc. (TRNS) 
Last transcat, inc. earnings: 2/4 04:15 pm Check Earnings Report
US:NASDAQ Investor Relations: transcat.com/investor-relations
Company Research Source: Yahoo! Finance
This run-up might have investors contemplating their next move. Is now the time to buy Transcat, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free Why Is Transcat Not Exciting? Despite the momentum, we don't have much confidence in Transcat. Here are three reasons there are better opportunities than TRNS and a stock we'd rather own. 1. Shrinking Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Looking at the trend in its profitability, Transcat's operating margin decreased by 2.8 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Transcat's performance was Show less Read more
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