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An Unwarranted Sell-Off for Wide-Moat Compass Minerals

Adverse news has created an attractive entry point for this high-quality firm.

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Seth Goldstein: Wide-moat Compass Minerals shares have fallen roughly 10% since the company issued profit guidance below expectations as a part of its fourth-quarter earnings release. Investors are concerned that the operational issues facing Compass might represent a new normal for the company's earnings power.

We view a sell-off of this magnitude as unwarranted and believe the adverse news flow has created an attractive entry point for a high-quality, wide-moat stock. We continue to see near-term catalysts that will aid Compass' profits, which should drive share prices higher.

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Seth Goldstein does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.