• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is the tumbling Dr Martens share price a bargain?
Investing

Is the tumbling Dr Martens share price a bargain?

by November 28, 2022
by November 28, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Dr Martens (LON: DOCS) share price has been in a freefall in the past few days as concerns about the company’s growth remains. The shares crashed to a low of 196p, which was its lowest level since May 22. It has plunged by more than 33% from the highest point this month.

Bootmaker faces headwinds

Dr Martens is a popular bootmaker and retailer with over 60 years in the industry. The firm manufactures some of the most popular high-fashion boots. It makes about 51% of its revenue from its Originals segment followed by Fusion and Casual. A small portion of its revenue comes from kids and accessories. 

Dr Martens stock price has been in a freefall since last week when the company published mixed results. Its revenue jumped by 18% to £418.6 million in the six months to September. Its EBITDA remained unchanged at £88.8 million while the firm’s profit after tax slipped from £48.6 million to £44.7 million.

The company’s strong growth happened because of its direct-to-consumer business, which rose by 21%. It also increased the prices of most products as inflation continued rising. By region, the company’s EMEA business grew by 9% while America had 31% growth, helped by the strong US dollar. APAC revenue rose by 9%.

Dr Martens faces significant challenges in its key markets. As inflation rises, the volume of premium shoes the firm is selling has dropped. As we wrote in this article, UK inflation surged to 11.1% in October. As a result, the firm has seen its profits retreat. It also expects that its business will remain being under pressure for a while.

The stock also plunged after the firm warned of profits in the next few quarters. Still, there are positive signs for the company. It has diversified its sourcing, with the products manufactured in China falling to 5% from 60% eight years ago. Further, the company will benefit as inflation and supply chain challenges eases.

Dr Martens share price forecast

The four-hour chart shows that the DOCS stock price has been in a strong downward trend in the past few weeks. It has managed to move below the key support levels at 205p and 203p, the lowest points at October 13 and November 24. It has moved below all moving averages.

Notably, oscillators like the Relative Strength Index (RSI) and Stochastic Oscillator have moved below the oversold level. Therefore, I suspect that the oversold shares will rebound in the coming weeks as investors buy the dip.

The post Is the tumbling Dr Martens share price a bargain? appeared first on Invezz.

You Might Also Like
  • VIDEO: Forex markets – 2022 review and future predictions
  • European Central Bank is in a critical phase in the inflation fight with possible rate hikes
  • AMC shares opened 25% down on Thursday: find out more
  • Tech layoffs continue but don’t let that fool you, employment remains strong
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Shell share price analysis amid oil market woes
next post
3 reasons why Apple should buy Manchester United

You may also like

Options Volume vs Open Interest Explained

May 1, 2023

Apple stock claims a near 2-year low, and sellers still...

December 28, 2022

Helium One share price has a bullish catalyst in 2023

December 27, 2022

Stephanie Link just bought a homebuilder stock

December 16, 2022

HSBC share price: Winds of change are blowing

January 2, 2023

Is it safe to buy the Boohoo share price dip?

November 24, 2022

Elon Musk may soon step down as Twitter CEO: buy...

December 19, 2022

These two stocks could benefit from Southwest Airlines flight cancellations

December 28, 2022

Crypto.com teams up with Coca-Cola to launch World Cup NFTs

December 6, 2022

Opera launches new Web3 security tools for crypto users

December 15, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Star investor David Tepper is ‘leaning...

    December 22, 2022

    Sell to Open vs Sell to...

    April 18, 2023

    Duck Creek stock opened 50% up...

    January 9, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here