Q: Any idea what is causing the volatility in WSP. Do you think I should be buying more at the current price $266
5i Research Answer:
WSPs recent decline seems fairly orderly and part of natural consolidation. It has had a nice runup since the April lows, and this looks to be a fairly standard pullback. Analyst earnings estimate trends are rising, it trades at an OK valuation of 26X forward earnings. We would be comfortable buying once the negative momentum has slowed down a bit.