This Struggling Auto Company Looks Like A Short
Investors betting on a turnaround are likely to be disappointed
MNRO stock looks overvalued. But there is a bull case based on free cash flow and weakening inflation.
But looking closer, both pillars of the bull case fall apart.
More broadly, Monro as a business has disappointed for years now.
Multiple compression alone can drive nearly 20% downside in the stock. Profit declines and a changing narrative suggest an even larger pullback.