Most analysts look at company-wide financials and industry trends when looking for value on the market, but unit economic analysis is a powerful tool for predicting a company’s growth potential, and Morgan Stanley’s latest North American Insight newsletter is a hands-on guide to doing unit economic analysis on your own.
High return unit economics
The report focuses on retail stores because they combine high return unit economics with the potential for rapid unit expansion. When both cylinders are firing overall growth can beat the market year after year. Looking back, Target Corporation (NYSE:TGT), Costco Wholesale Corporation (NASDAQ:COST), Starbucks Corporation (NASDAQ:SBUX) and others have managed to succeed on both fronts and their investors have been amply rewarded.
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
