However, as most seasoned investors know, some of the best buying opportunities can often be found among the worst-performing stocks. So has this recent downward volatility created a secret long-term buying opportunity? Let’s explore.

What’s going on with luxury watches?

At first glance, the downward trajectory of this FTSE 250 stock may not make a lot of sense. After all, revenue’s actually rising and has even reached a record £1.65bn in its 2025 fiscal year (ending in April). However, when digging deeper, several problems start to emerge.

Despite higher sales, profits are shrinking. The luxury watch sector’s experiencing inflation driven by higher gold prices as well as the strong Swiss franc. But most crucially in the group’s critical US market, tariffs have sent import costs soaring.

Even after hiking retail prices, not all of the cost increases have been successfully passed along, resulting in margins being squeezed. And this pressure may only get worse if higher tariffs are introduced. As such, management’s warned that further margin compression could materialise in its 2026 fiscal year, dampening investor sentiment even further.

With that in mind, seeing the stock price retreat isn’t entirely surprising. But have investors overreacted?

A potential opportunity?

Even with the lacklustre guidance, the drop in Watches of Switzerland Group’s share price has put the forward price-to-earnings ratio at just 8.5.

The fact that sales are still rising, especially in the US despite higher costs, points towards strong demand, particularly for brands including Rolex, Patek Philippe, and Omega. The company’s having little trouble maintaining long waiting lists for unique timepieces, supporting higher unit economics.

Combining this with ongoing efficiency initiatives and cost controls, management seems to have a firm grip on its finances. Pairing all this with the fact that even the company has started capitalising on its weakened share price with a £25m buyback scheme points to long-term confidence.

The bottom line

All things considered, this weakened FTSE 250 enterprise may present a compelling long-term investment opportunity. The valuation reset seemed to create an interesting entry point for investors seeking exposure to the luxury market. And as an industry leader with exclusive relationships, Watches of Switzerland appears to be a strong portfolio candidate.

However, there’s no denying the group carries notable risks. Discretionary spending on luxury items tends to plummet during periods of economic volatility. As such, even with its proven brand leverage, the stock could end up tumbling further if tariff-induced economic headwinds intensify in the US.

Personally, I’m waiting to see how the situation evolves before considering jumping in. But for investors with a high risk tolerance, this could be an opportunity worth exploring further.

The post Down almost 40%, is this FTSE 250 stock a screaming bargain? appeared first on The Motley Fool UK.

The FTSE 250 is a great place to find top-quality growth shares, some of which I own in my own portfolio. Yet the FTSE 100‘s little brother is also packed with potential traps that could cost investors a lot of cash.

Bearing this in mind, here is one index member I wouldn’t touch with a bargepole right now.

Watch out

Sellers of big-ticket items like luxury timepieces are vulnerable during uncertain economic times like these. With Watches of Switzerland Group (LSE:WOSG), the outlook is especially dangerous as the threat of ‘Trump Tariffs’ persists.

You see, the retailer’s the US is the company’s single-largest market following rapid expansion there. Around 45% of sales now come from Stateside customers, up from less than a quarter just six years ago.

What’s more, it specialises (as the name suggests) in premium and mid-tier watches from Switzerland like Rolex, Omega and Breitling. With the US threatening import duties of 31% on Swiss goods, the danger to the retailer’s sales could clearly be considerable.

Changing models

Crushing new trade taxes aren’t the only seismic danger to Watches of Switzerland’s revenues, with Rolex’s entry into the retail market in 2023 also posing a long-term threat. This particular brand accounts for around half of the company’s total sales.

What’s more, Rolex‘s move could be the first of a flurry of luxury watch manufacturers moving to sell their own products or ramping up their own direct-to-customer (DTC) channels. Benefits include higher margins, better inventory management, and the chance to control the brand experience more closely and build direct relationships with customers.

Shortly after Rolex’s strategic announcement two years ago, Watches of Switzerland declared plans to more than double annual sales to above £3bn by financial 2028. This incorporated its expectation that US revenues would grow at a compound annual growth rate (CAGR) of 20-25% in that time.

All things considered, these plans are looking extremely shaky in my opinion.

A FTSE 250 trap?

However, there’s an argument that this threat is now baked into Watches of Switzerland’s low valuation. Its recent price collapse means the business now trades on a price-to-earnings ratio of 8.7 times for the current financial year (to April 2026).

On the plus side too, the timepieces Watches of Switzerland sells have obvious brand power that could support sales regardless of broader economic conditions and extra taxes.

The business also has a considerable foothold in second-hand luxury watches, of which its participation in the Rolex Certified Pre-Owned (CPO) programme is a key cornerstone. This could help limit the blow if consumers begin switching down to cheaper, pre-owned products.

Yet despite these factors and the company’s undemanding valuation, I’m keen to avoid this FTSE 250 share.

The post Here’s a cheap FTSE 250 share I’m avoiding like the plague right now appeared first on The Motley Fool UK.

Tariffs, tariffs, tariffs

I feel like a broken record, but Trump’s tariffs are a big issue for companies around the world. Watches of Switzerland, with operations spanning the UK, US, and parts of Europe, is no exception. The company relies on importing luxury watches from Switzerland and other European countries, making it vulnerable to changes in trade agreements or tariff regimes. 

So, let’s take a closer look at the tariff issue. The US has imposed a 31% tariff on Swiss imports, targeting one of the company’s most critical supply chains. The US is not just a major market for Swiss watches — it’s the largest export destination for Swiss timepieces, accounting for 16.8% of Swiss watch exports in 2024 (around CHF4.4bn).

For a retailer like Watches of Switzerland, which specialises in high-end Swiss brands such as Rolex, Patek Philippe, and Omega, this tariff represents a direct hit to its core operations.

According to research I’ve come across, the tariffs will be applied to the import value of the goods. Based on several calculations, this means the cost of a Rolex Land-Dweller from $16,100 to about $17,900. It’s not a massive increase, but it certainly will be noticeable.

While high-net-worth individuals may still purchase luxury watches despite price increases, mid-tier buyers are more likely to balk at paying 15%-30% more. This could lead to a slowdown in sales for entry-level luxury brands like Longines or Tissot.

Cross-border arbitrage

Building on the above, I suggest that the higher end of Watches of Switzerland’s range is fairly price inelastic. In other words, if you want to spend £12,000 on a Rolex, you probably will regardless of the tariffs. I’ve been wondering if the tariffs will encourage cross-border arbitrage — travelling abroad to take advantage of lower prices — with US buyers shopping overseas. Only time will tell.

Valuation improves on paper

Watches of Switzerland’s forward valuation reflects a mixed outlook. The company’s forward price-to-earnings (P/E) ratio is estimated at 9.2 times, significantly lower than historical averages, indicating market skepticism about its growth potential. This figure is expected to fall to 7.2 times by 2027.

However, the issue is that these figures are based on earnings projections made before Trump’s tariffs. It’s almost certain now that we will see analysts revise their projections downwards. I’d also add to this that the company has a modest net debt position of £120m. This obviously needs to be taken into account when considering the P/E.

Personally, I’m going to keep my powder dry on this one. The stock could be attractive, but there’s so much uncertainty. It’ll certainly pay to keep my eye on the tariff news. Perhaps if the Swiss can negotiate a ‘better deal’, the fallout may be more controllable.

The post £10,000 invested in Watches of Switzerland shares 1 year ago is now worth… appeared first on The Motley Fool UK.

Watches of Switzerland Group (LSE:WOSG) is no different. Towards the end of 2021, its shares were changing hands for around £15. Today, an investor could buy one for approximately £4.50. The group’s share price is now 25% below its 52-week high.

A large and growing market

Luxury watches are big business. The global market is estimated to be worth close to $50bn. The most expensive timepiece on its website has a price tag of £565,900. In fact, it has 1,155 of them with a retail price in excess of £10,000.

During the year ended 28 April 2024 (FY24), its revenue was over £1.5bn. And its adjusted earnings before interest and tax (EBIT) was £134.7m.

For FY25, analysts are expecting an 8.6% increase in the group’s top line and a 11.3% improvement in EBIT. If their forecast for earnings per share of 41.4p proves to be correct, it means the stock’s currently (10 March) trading on a very reasonable forward price-to-earnings ratio of just under 11.

In December 2021, it was over 35.

Time to look further ahead

The company has ambitious growth plans. It wants to double its revenue and adjusted EBIT by the end of FY28.

It hopes that some of this expansion will come from its decision to move into the pre-owned market, which is forecast to grow by 10% a year up until 2028. Further investment in its network of shops should also help boost sales. In keeping with its status as a premium retailer, Watches of Switzerland prefers to use the term ‘showroom’ and has 217 of them in the UK, United States and Europe.

It’s also selling jewellery, which in FY24, accounted for only 7% of revenue. But I think there’s huge potential here.

However, the Bloomberg X Subdial Index, which tracks the price of the 50 most traded luxury watches, has been falling for some time now. It’s a similar story with the WatchCharts Overall Market Index. It follows the secondhand prices of 300 watches from the top 10 luxury brands. It’s currently a third below its peak, achieved in April 2022.

Although both of these indexes monitor pre-owned prices, they’re a good indicator of the overall health of the luxury watch market. That’s why, in my opinion, the Watches of Switzerland stock price tends to move in tandem.

However, there’s no immediate sign of a recovery, which I think explains why the group’s shares currently attract a relatively low valuation. And inflation in the UK, which has significantly impacted earnings in recent years, hasn’t been tamed yet.

But in my opinion, with a still healthy margin, exposure to a market that should recover if global economic conditions improve as expected — and because of a sensible decision to expand in other luxury products — Watches of Switzerland Group is a stock worth considering.

The post With a historically low P/E ratio of 10.9, is it time to buy this FTSE 250 stock? appeared first on The Motley Fool UK.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

easyJet

What it does: A no-frills budget airline offering short-haul flights between the UK and many European destinations.

By Mark David Hartley. Four years later the UK’s longest-running budget airline, easyJet (LSE: EZJ), has finally reinstated dividends. At 4.5p per each £5.17 share, it’s not much (0.9%) — but it’s indicative of a recovery. With the devastating losses of the pandemic now behind it, it’s on track for growth in 2025.

Cost-cutting exercises combined with a strategic overhaul of operations helped it become profitable again this year. Earnings are forecast to enjoy steady growth in the coming year and the average 12-month price target is between 20% to 30% above current levels.

But the risk of further travel disruption is not entirely off the table, as viral outbreaks remain an ever-present threat. Besides, it faces tough competition from rival budget airlines like Ryanair, Wizz Air and Jet2. With high debt and a low profit margin, there’s much work to be done but it’s on the right track for now.

Mark David Hartley owns shares in easyJet.

Fresnillo

What it does: Fresnillo is the largest primary silver producer in the world, and Mexico’s largest gold producer.

By Andrew Mackie. In the last 60 years there have only been two gold cycles: during the inflationary decade of the 1970s and in the decade following the dot.com crash in 2000. I am of the firm believe that we are in the early innings of a third gold cycle.

In 2024, gold prices are up 35%. Despite significant margin improvements, the Fresnillo (LSE: FRES) share price is only up 10% over the same time frame. This disparity between stock prices and underlying metal prices is symptomatic of general investor sentiment toward precious metals miners.

In order to reduce risk, I am only interested in investing in miners with established cash-generating mines in neutral jurisdictions. With a 500-year history of mining to draw on, together with over 2bn ounces of silver resources and 39m ounces of gold resources, Fresnillo is one of the best UK-listed miners.

I could give a dozen reasons why investors should consider owning gold mining stocks today. At a fundamental level, though, spiralling government deficits means that investors need to own a neutral asset with no counterparty risk. Gold and silver have played this role for millennia.

However, miners constantly face challenges and Fresnillo is no different. Soaring costs, labour strikes and operational challenges have beset the company recently. But I believe gold is heading to $3,000 and beyond in the coming years, and I want to get into the sector whilst share prices are so depressed.

Andrew Mackie owns shares in Fresnillo.

Games Workshop

What it does: Games Workshop designs and manufactures miniature figures for its various board games set in the Warhammer universes.

By Zaven Boyrazian. The Games Workshop (LSE:GAW) share price surged more than 15% on the back of its latest trading update. With pre-orders for its most popular upcoming Christmas Battleforce box sets sold out within less than five minutes, the firm’s earnings jumped well ahead of expectations. And subsequently, management hiked its full-year guidance.

However, this growth doesn’t appear to be over. There’s a large pipeline of new Warhammer miniatures lined up throughout 2025. And its most recent reveals of the Astra Militarum and Aeldari factions (expected to be released in Q1 2025) appear to have been met with similar levels of enthusiasm.

Games Workshop shares aren’t cheap, with a forward price-to-earnings ratio of 28.7. As such, investor growth expectations are high. And if the new upcoming models fail to generate appeal from customers, the group’s expansion may fall short, sparking share price volatility.

However, Games Workshop has a habit of defying expectations. That’s why I’ve already bought more for my portfolio, even at the current premium valuation.

Zaven Boyrazian owns shares in Games Workshop.

Watches of Switzerland

What it does: Watches of Switzerland is a multi-channel retailer of watches and jewellery with 221 showrooms across the UK, US, and Europe.

By Paul Summers. Shares in timepiece seller Watches of Switzerland (LSE: WOSG) have been under the cosh for the last three years as high inflation and a cost of living crisis have played merry hell with sales. There’s a chance things might go from bad to worse if the recent bounce in inflation proves more than temporary and aspirational shoppers continue to steer clear. 

However, I think a lot of this is already accounted for in the below-average valuation. Recent updates have been reassuring with management stating that it has seen “continued stabilisation of the UK market in both luxury watches and jewellery”. The recent acquisition of the North American division of designer brand Roberto Coin should also boost profit in time.

I reckon the UK’s biggest seller of Rolex and Omega should be well placed to recover strongly if (and that’s a big ‘if’) discretionary spending rebounds in 2025. 

Paul Summers has no position in Watches of Switzerland

The post Best British growth stocks to consider buying in 2025 appeared first on The Motley Fool UK.

The recovery is on!

Luxury timepiece seller Watches of Switzerland (LSE: WOSG) is one example of a stock that appears poised to rebound strongly. In fact, one could say that recovery has already started. Having endured a tricky few years thanks to a cost-of-living crisis, the shares are up 34% in the last month alone!

This momentum was no doubt helped by some reassuring half-year results in early December. Back then, management reported 4% revenue growth thanks to an “encouraging improvement in trading in Q2“, partly attributed to better demand in the UK and US.

There’s still time to consider buying

I think there could be even more potential ahead, especially as the stock still trades at a price-to-earnings (P/E) ratio of 14. That’s not a low as it was a few months back but it’s below the company’s average P/E of 19 over the last five years. Nor does it feel particularly excessive if (and here’s the mighty ‘if’) the UK economy holds its own next year.

Whether the latter will happen is open to debate. If inflation bounces higher, the Watches of Switzerland share price will probably move sideways at best. There’s also no dividend stream to compensate investors for staying put.

If, however, inflation comes back in line with the Bank of England’s target of 2%, we could see more cuts to interest rates. This should then feed down to improved consumer confidence, possibly leading to earnings upgrades from the Leicester-based business.

Dirt cheap

FTSE 100 member JD Sports Fashion (LSE: JD) is another company that I think offers great value. Its forecast P/E ratio for FY26 (beginning in February) stands at a staggeringly-cheap seven. Again, that looks very attractive considering the company’s five-year average is no less than 20!

This is not to say that the £5bn cap doesn’t face a number of challenges right now. For example, one of the main brands it sells — US giant Nike — is having a nightmare year as smaller, innovative rivals like On and Hoka have taken market share.

Overseas growth

Can the above be considered a long-term issue, though? I’m sceptical, especially if Nike’s new(ish) CEO Elliott Hill delivers on his promise to revitalise the business. More generally, the future of the global sportswear market looks robust.

In fact, JD Sports looks particularly well-equipped to ride out any storm thanks to its multi-brand, multi-channel offering and rapid overseas growth. Earlier this year, it acquired US rival Hibbett as part of a strategy to expand its footprint across the pond.

I also think it’s quite comforting that there appears to be very little interest in the company from short sellers. In other words, not many traders seem willing to gamble that the share price has further to fall.

Buying a stock when no one else will has the potential to be lucrative in the long term. Although there’s a chance things could get off to a bad start if January’s Q4 trading update fails to impress, that could prove to be the case here.

The post 2 value stocks for investors to consider buying before they explode in 2025 appeared first on The Motley Fool UK.

Problems abroad

One I’ve spotted is PZ Cussons (LSE:PZC). I feel this has stayed under the radar for several months, but strayed onto my screen earlier this week following the sharp 15% drop on Wednesday (18 September). This was due to the release of disappointing full-year financial results.

However, the main factor within the results that caused 29.7% fall in adjusted profit before tax was the situation in Africa. PZ Cussons has an active presence there and gets paid in local currency. Yet if it gets devalued, it can cause a hit to results when converted back to British pounds. This was the case with the 57% fall in the value of the Nigerian naira during the reporting period.

The extent of the fall means that the stock has almost halved in value over the past year. I think this is excessive, primarily because I believe the issues in Africa can be resolved. PZ Cussons is already in discussions about potentially selling its Africa operations. Further, it’s taking measures to try and deal more in US dollars in the countries, reducing its currency volatility.

Of course, a risk is that it can’t sell the division quickly and we get further devaluation over the next year. This would negatively impact financial results again. Yet at the core, PZ Cussons is a profitable business that has a long track record of being so.

Now’s the time

The other company is the Watches Of Switzerland Group (LSE:WOSG). I’ll admit that earlier this year I wrote about how I’d steer well clear of it after it lost 37% in a day back in January. The stock is still down 33% over the past year, but I feel the situation has now changed.

The drop came after the business issued a profit warning for the full-year following a disappointing festive trading season. At the time, I was rather pessimistic about the UK economy in general, with high inflation and non-existent economic growth. Therefore, why would a luxury watchmaker do well?

Fast forward to today and the UK is in much better shape. Interest rates have started to fall, inflation is close to the 2% target level and consumer sentiment is a bit stronger. The business has felt this, with an update earlier this month stating that “we have seen continued stabilisation of the UK market in both luxury watches and jewellery”.

Yet the share price is only up a modest 4% in the past six months. I feel it’s good value here. It offers me a way to make a play on the UK economy outperforming in the next year. My main risk is if we get some kind of spike in inflation or economic shock that causes consumer spending to slow down.

I like both stocks and have them on my watchlist to purchase when I have free money.

The post 2 below-the-radar value stocks that haven’t escaped my detection appeared first on The Motley Fool UK.

As one of the largest sellers of brands such as Rolex, Audemars Piguet and Breitling, the company was able to sell all the luxury watches it could get hold of.

The shares hit an all-time high of over 1,500p in January 2022, before going sharply into reverse as the watch market slowed.

As I write, Watches of Switzerland’s share price is 390p. That’s 73% lower than the record highs seen two-and-a-half years ago. Is this a buying opportunity? Here’s what I think.

A golden opportunity?

In my time as an investor, I’ve often seen share prices overshoot as investor sentiment swings out of control. First the shares go too high, and then they go too low. I think this could be one of those situations.

While market conditions have certainly got tougher for Watches of Switzerland since 2022, the company hasn’t been standing still. It has continued to open new shops and remodel existing stores to improve sales.

Management have also made a big ($130m) acquisition of jewellery retailer Roberto Coin’s American oos, which is expected to boost profits.

It’s too soon to say if this deal will be successful. But what we do know is that Watches of Switzerland’s trading so far this year (May-August) is in line with broker forecasts.

Luxury watch and jewellery sales in the UK are said to be stabilising after a difficult period last year, when the company’s earnings fell by 28%.

“Demand for our key luxury brands” in the UK and US is still said to be “outstripping supply”.

The company is also continuing its expansion into the luxury jewellery market, which could help to expand its customer base.

What I’d do

The acquisition of Roberto Coin has left Watches of Switzerland with some debt. It’s also made the business more complicated, at least for a while. This could add to the risk of financial problems, if the integration of Roberto Coin doesn’t go as smoothly as planned.

Demand for luxury goods in other sectors of the market has also slowed, notably fashion. I guess there’s a risk that watches could see further weakness too.

However, on balance I think these risks are already priced into Watches of Switzerland’s £960m market cap.

I’m also excited by the growth potential the business has in the US. This is a much larger market than the UK.

At current levels the shares trade on a 2024/25 forecast price-to-earnings (P/E) ratio of nine.

Profits are expected to continue rising next year too. Broker forecasts suggest the stock could be trading on just eight times 2025/26 forecast earnings.

That looks too cheap to me for a market-leading specialist retailer. If Watches of Switzerland can continue to deliver on forecasts, I reckon the shares could perform well from here and are worth considering.

The post Down 73%, is this FTSE 250 growth stock a golden opportunity? appeared first on The Motley Fool UK.

Bargain recovery stock

One example I’d consider buying now if I had the cash is JD Sports Fashion (LSE: JD).

Now, it’s fair to say that this retailer has seen better times. A cost-of-living crisis has hammered sales and pushed the share price down almost 15% in 2024. It’s also about 40% below the record high hit in November 2021.

There’s a risk of this negative momentum carrying on if the company’s costly expansion into North America doesn’t go according to plan. As part of its strategy to diversify earnings, it recently shelled out $1.1bn to acquire US rival Hibbett.

But I would argue that a lot of fear is now baked in. A price-to-earnings (P/E) ratio of a little under 11 is cheaper than the UK stock market average. It’s also significantly below JD Sports Fashion’s five-year average P/E of 20.

On another positive note, the last update (in August) showed some encouraging signs. Management revealed a 2.4% rise in Q2 underlying sales and made no change to full-year guidance on adjusted profit.

Are those green shoots I see?

Market leader going ‘cheap’

Another FTSE stock that could prove to be a bargain in time is property platform provider Rightmove (LSE: RMV).

That might seem an odd thing to say considering the shares already trade at a P/E of 22. But Rightmove is a special company, in my view. In addition to being the clear leader at what it does, the firm’s asset-light business model means it can achieve staggeringly high margins.

Like JD Sports Fashion, the valuation is also far below the firm’s five-year average P/E of 31.

Of course, the near-term trajectory of Rightmove’s share price going forward is likely to depend greatly on how quickly UK interest rates fall from here.

A series of cuts in (fairly) quick succession could see this growth stock recapture its former glory as investors bet that earnings will rise as housing market activity picks up. But a longer-than-expected pause after the initial reduction could do the opposite.

As AI continues to be adopted, there could also be more challengers for its crown too.

Time for this fallen star to rise?

A third UK growth stock that’s looking interesting from a valuation perspective is Watches of Switzerland (LSE: WOSG).

This is another retailer that’s been battered by economic headwinds. But, again, an awful lot of awfulness now looks priced in. I can pick up the stock on a P/E of just nine right now. If trading is truly showing signs of stabilising, as management implied in June, there could be a solid recovery ahead.

On the flip side, the shares could be dragged lower by association if other businesses in the luxury space continue to trade poorly. Or the sort of watches it sells could lose their popularity to more tech-focused timepieces.

Perhaps it may be best to hold on for the next update before making a move here. Fortunately, we only have to wait until next Tuesday (3 September) for this.

The post Cheap FTSE growth stocks to consider buying in September appeared first on The Motley Fool UK.

Is it one of the best value stocks in the index today after this enormous decline? Let’s discuss.

The watch market is struggling

I follow the luxury watch market pretty closely as I have an interest in timepieces. And I can tell you that right now, the market isn’t doing very well.

During the coronavirus pandemic – when people had a lot of disposable income – everyone wanted to buy a luxury watch. Today however, it’s a very different story.

With interest rates at higher levels and pandemic savings long gone, far fewer people have the money for luxury goods. And many of those who do would rather spend their cash on ‘experiences’ instead.

The weakness in the market can be seen in the Watch Market Index – an index of 60 watches from top luxury watch brands (a good indicator of secondary watch market price trends). Currently, this index is locked in a nasty downtrend.

Source: WatchCharts

Very low valuation

The thing is, the current weakness in its market appears to be priced into Watches of Switzerland shares already.

Currently, the stock has a price-to-earnings (P/E) ratio of just nine as the earnings per share forecast for this financial year is 42.8p. That’s an incredibly low valuation.

For reference, the median P/E ratio across the FTSE 250 is about 13.3. So the stock’s trading at a massive discount to the index.

One broker that clearly believes the stock’s undervalued right now is Barclays. Back in June, it raised its price target for Watches of Switzerland shares to 595p from 580p. That’s about 54% higher than the current share price.

Uncertainty in the near term

Of course, conditions in the luxury watch market could deteriorate further, putting pressure on the group’s revenues and profits.

Last financial year, the company’s adjusted earnings per share fell 28% year on year. If they were to fall by another 20-30% this financial year, the stock’s not going to look as cheap as it does currently (right now, analysts expect earnings growth of 13%).

The company’s said it’s cautiously optimistic in relation to the outlook for this financial year however, there are no guarantees the outlook will improve.

A top value stock today?

Personally, I’m not expecting a rebound in the luxury watch market in the near term. I think it’s going to take a while for consumer confidence to rebound to the extent that a lot more people are willing to go out and drop thousands of pounds on luxury watches.

That said, I do envisage a rebound in the market at some stage (when interest rates are a fair bit lower and people have more disposable income). So for patient long-term investors, I think there could be an opportunity to consider here.

The post Down 75%, is Watches of Switzerland one of the FTSE 250’s best value stocks? appeared first on The Motley Fool UK.