Buy, Sell, or Hold: ZAGG
The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.
In today's edition of "Buy, Sell, or Hold?" Austin looks at ZAGG. With mobile devices continuing to grow by leap and bounds, you may think the case maker is an easy buy rating, but Austin gives it a hold instead. Despite a lot of potential as smartphone and tablet sales continue to grow, there are no switching costs for ZAGG's products and its competitive advantage is nil. This is very much an "all ships rise with the tide" thesis. The growth rates in this industry are so nuts right now, it's likely that ZAGG will continue to grow in the near term. Looking beyond a year or year and a half, Austin has less conviction.
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At the time this article was published Austin Smithowns shares of Corning. The Motley Fool owns shares of Apple, Best Buy, Corning, and Skullcandy.Motley Fool newsletter services recommendApple and Corning. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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