Is iRhythm Stock a Buy at Today’s Prices?

For quality tech stocks that have traction, the original thesis doesn’t change much over time. Sometimes, a good company will have a bad quarter, and the stock price will drop -30%, presenting a possible buying opportunity. That’s how we ended up holding shares of Alteryx and Splunk, two purchases that were quite hypocritical considering how much we point out the futility of trying to time the market. When shareholders punished these two companies for letting The Rona slap them around a bit, we stepped in with strong hands, assured that these setbacks were only temporary. But what if a more fundamental problem affects a thesis?

One of the life sciences stocks on our “like” list, iRhythm (IRTC), recently had a Medicare pricing decision which made their stock price hit the skids. It’s now down over -60% year-to-date.