WTC has bounced more than 10% over the last 5 days, even after yesterday’s weakness in the stock and sector. The sell-off in WTC hasn’t entirely been down to the “AI Disruption” and valuation compression but they have been the main contributors. We liked WTC’s recent proactive actions around AI (huge layoffs) and CEO Zubin Appo’s purchase of ~$1mn worth of stock, both of which appear to have steadied the ship as opposed to turning it around. However, with the logistics goliath trading at around half of its 5-year average valuation, we believe the stock is looking attractive for those who believe the sell-off across the sector is overdone.
- We wouldn’t be surprised to see WTC dip under $40 in the short term, but it’s “looking for a low” – MM owns WTC in its Active Growth Portfolio.
MM is long and bullish WTC
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