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Why the A2 Milk Company Ltd (ASX:A2M) share price is falling

baby, milk, formula, bellamy's, bubs

The A2 Milk Company Ltd (ASX: A2M) share price is down 3.6% to $9.43 at the time of writing after a day of declines yesterday.

Considered a sought-after growth stock, any dip in the A2 Milk share price has punters scrambling for buy-ins and if its latest trading update is anything to go by its core businesses of fresh milk and Chinese infant formula are growing strongly.

Volatility in the A2 Milk share price is likely down to concerns about increased competition in China, but overall the company has pretty solid fundamentals and there doesn’t look to be too many headwinds on the horizon.

Baby formula peer Bellamy’s Australia Ltd’s (ASX: BAL) share price has also been stuck in reverse of late.

The Bellamy’s share price is down 3.7% to $7.78 at the time of writing after spending the second half of the 2018 calendar year in decline.

A lesser-known contender in the sector is Wattle Health Australia Ltd (ASX: WHA) but its share price is also struggling.

The Wattle Health share price has dropped 1.8% today to $1.05 after a period of decline since April.

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Returns as of 6th October 2020

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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