This retailer is positioned well to grow its top and bottom lines over the long term, but the stock is priced as if profits will fall below pre-pandemic levels.
Retailers have been under attack in recent years but not by the online competitors that may first come to mind. Instead, retailers have been under attack from Wall Street analysts who can’t wait to bury the next traditional retail business.
Icahn might be able to engineer a sale to DG or someone else that will earn himself and other shareholders a quick profit, but unlocking long-term value will be a much more difficult task.