Why WD-40 Stock Soared in July
Shares of WD-40 (NASDAQ: WDFC) rose 14.2% in July, according to data provided by S&P Global Market Intelligence. There can be little doubt about why, with the third-quarter earnings acting as a prompt for a high-single-digit gain on the day following their release.
The results need to be put in the context of the previous quarter's earnings, when the company's flat sales raised concerns that it would fail to hit its guidance for 2019. Given that the stock has traded in a range representing 35 to 40 times the midpoint of its forecast EPS in 2019, it's hard to make the case that the stock is cheap, and any failure to meet guidance is likely to hit the company hard.
WD-40 helps to clean greasy machinery, among other uses. Image source: Getty Images.
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