Despite many warning signs to the contrary, the S&P 500 continues to climb to fresh record high levels. The latest earnings season showed remarkably resilient performance for many standout companies, but not every quality growth name has gotten the message so far. Some firms have indeed been left behind despite having solid fundamentals and posting healthy revenue improvement, strong margins, and other favorable metrics.
The disconnect here presents an opportunity for investors willing to be patient. Several former favorites in the market are currently trading below their recent high levels, although their underlying businesses remain healthy. Three names fitting that description are On Holding AG (NYSE: ONON), Grocery Outlet Holding Corp. (NASDAQ: GO), and Birkenstock Group AG (NYSE: BIRK). Each has stumbled for factors either internal or related to the macro environment, but fundamentals are still strong, and investors who are able to wait may eventually see a positive repricing.
