Kura Sushi USA stock tumbled after solid earnings; it's now a great buy

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Market overreactions often create good trading opportunities as stocks tend to recover after an unjustified selloff or plunge following an unjustified rally. In the case of Kura Sushi USA ($KRUS), the stock plunged over 20% last week after the company reported solid earnings results that slightly missed analyst estimates. While earnings beat, revenue missed estimates by 1.25%, causing a 20% selloff. This is the definition of market overreaction that has created an exciting buying opportunity.

KRUS is one of the fastest-growing restaurant names on the market, and the company is also very profitable. The growth momentum remains strong, and the addressable market is still large. The recent selloff has just made the stock more attractive for long-term investors. Let’s take a deeper look.

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