Introduction
This article is the 64th installment in a segment called "Buy on the Drop?" in which I choose a stock that recently experienced a large decrease in price and give a recommendation on whether investors should "buy on the drop" or not. The recommendations are Sell, Hold, Speculative Buy, Buy, and Strong Buy.
American Outdoor Brands Corp (AOBC) reported fourth quarter earnings Thursday after the close to poor reception. The market dropped AOBC 6% due to extremely lackluster guidance for fiscal year 2018, including revenue and earnings down big on a year-over-year ("YoY") basis and well below consensus estimates. While this issue poses risks, I think the stock offers substantial potential upside too should the company be able to turn things around.
