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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.

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