Strategic Shift Position XPEL For Long-Term Profitability
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Sander Heio164 FollowersFollow5ShareSavePlay(9min)CommentsSummaryXPEL shares are up 44% in three months, fueled by strong Q3 results and optimism around its margin-focused strategy. Revenue grew 11% YoY in Q3, but higher SG&A and inventory issues temporarily pressured margins. XPEL plans $75–$150M investments to boost manufacturing, supply chain, and distribution efficiency. Risks include slower top-line growth and car sales volatility, but zero debt and strong cash flow mitigate concerns. Valuation models suggest upside potential, with best-case scenario pricing XPEL at $67 per share. Alones Creative/iStock via Getty Images Introduction XPEL is up 25% YTD, and up more than 44% the last three months. The boom came after their Q3 numbers in early November. The market seems opportunistic about XPEL's future potential due to strong sales growth, new productThis article was written bySander Heio164 FollowersFollowHi, my name is Sander Pettersen Heio, and I’m based in Norway. My investment focus spans small-cap to mid-cap companies and foreign equities, with a particular emphasis on the Nordic market. I analyze businesses across diverse industries, identifying both established players and emerging growth leaders. Beyond Nordic stocks, I also cover U.S. growth companies, delivering in-depth research on firms with strong potential for long-term expansion.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.