While the big-name technology companies have fuelled the remarkable stock market recovery, there is little doubt of the disconnect between the market and the economy. Money is flowing back into equities as investors search for alternatives to the negligible returns offered by savings accounts.
As a result, company valuations are changing dramatically and traditional ideas of what is considered "expensive" are being challenged. Unfortunately for investors, for every phenomenal Afterpay rally, there's a Getswift... that ends in tears!
So how do you give yourself the best chance of finding companies that stack up?
Despite the common Facebook marketing, there is no silver bullet, no magic financial ratio, or trading system. The rather dull answer is: RESEARCH, and a lot of it. When deciding whether to commit to researching a company, look for the following:
Robust business model
Well defined outlook
Minimal industry and macroeconomic headwinds
Baby Bunting is just one Australian market leader, that has consistently delivered on its growth strategy, and is continuing to benefit from having a well-prepared digital platform in an otherwise difficult retail environment.