Hey there,
So long as DOO remains on our Bull List we'd be comfortable adding. The debt load has been increasing in recent years, however, their leverage ratios have remained consistent. That means that despite a higher 'debt load' it is still in the same financial position. This has allowed the company to grow the way it has.
We are currently in the process of updating the report from this past quarter. At first glance, it wasnt' a great quarter. It is now seeing some weakness in demand which has led to a lowering in guidance. We fully expected this day would come considering the macroeconomic environment. It is a cyclical stock after all.
That said, it is still performing well and is expected to growth. The growth just won't be as pronounced - at least in the short term. If interest rates do start to move lower, we may see yet see demand return in the softer markets.
All in all, the cyclical stock is going to be bumpy, but long-term it continues to be one of the best in the industry.
Mat