Montrose Environmental Benefits from Lower Borrowing Costs
-7.95%current return
"Small-cap names do better in a rate cut environment, and I'm watching Montrose Environmental, ticker MEG. With roughly a billion-dollar market cap and a balance sheet showing 330 million in debt versus 11 million in cash, if borrowing rates come down, their consolidator strategy in a fragmented environmental services sector could pay off."
— Lou Whiteman
Lou Whiteman highlights Montrose Environmental (MEG) as a potential buy in a scenario of lower interest rates. The company, active in a fragmented environmental services market and pursuing a roll-up strategy, is vulnerable due to high debt but stands to benefit if financing costs ease. This scenario could lead to operational improvements and upward stock movement over the medium term.
Medium ConvictionScore: 7.3
Stock Idea •Motley Fool Money • about 2 months ago