1 Value Stock to Own for Decades and 2 to Brush Off
This distinction between true value and value traps can challenge even the most skilled investors. Luckily for you, we started StockStory to help you uncover exceptional companies. Keeping that in mind, here is one value stock offering a compelling risk-reward profile and two best left ignored.
Forward P/E Ratio: 2.8x
Known for sponsoring extreme athletes, GoPro (NASDAQ:GPRO) is a camera company known for its POV videos and editing software.
Why Should You Dump GPRO?
Performance surrounding its cameras sold has lagged its peers
Eroding returns on capital from an already low base indicate that management's recent investments are destroying value
Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
GoPro is trading at $0.51 per share, or 2.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why GPRO doesn't pass our bar.
Forward P/E Ratio: 11.2x
Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.
Why Should You Sell SANM?
Sales were flat over the last five years, indicating it's failed to expand this cycle
Gross margin of 8.1% reflects its high production costs
Earnings per share have dipped by 1.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $73.58 per share, Sanmina trades at 11.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than SANM.
Forward P/E Ratio: 6.2x
Headquartered in Arizona, First Solar (NASDAQ:FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
Why Will FSLR Beat the Market?
Annual revenue growth of 26.7% over the last two years was superb and indicates its market share increased during this cycle
Additional sales over the last two years increased its profitability as the annual growth in its earnings per share outpaced its revenue
Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
First Solar's stock price of $131.60 implies a valuation ratio of 6.2x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it's free.
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
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Forbes
a few seconds ago
- Forbes
Intel Stock To $60?
Intel stock (NASDAQ: INTC) surged nearly 7% on Tuesday after reports that the Trump administration could take a 10% stake in the company by converting CHIPS Act grants into equity. Moreover, Japan's SoftBank also revealed a $2 billion investment it had made betting on Intel's revival. So could this finally be the catalyst Intel stock needs to drive a rally? In this analysis, we outline the key trends and numbers, namely revenues, margins, and valuation multiples that could line up to take Intel stock toward $60 per share. A potential 2x plus move might sound far-fetched, but remember the stock traded around these levels just about three years ago. Granted, Intel isn't TSMC when it comes to manufacturing tech, and it isn't a scratch on Nvidia when it comes to high performance chip design. But it is the largest U.S. fab - and in an era where Washington is prioritizing self-sufficiency in semiconductors, that has real value. Yes, Intel has been weighed down by PC market weakness, share losses to AMD, repeated manufacturing stumbles, and the AI shift toward GPUs. Yet with government backing, a domestic manufacturing edge, and a turnaround plan in motion, Intel stock has real levers that could drive a rebound. That said, if you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception. Intel Revenue Recovery Intel's sales have faltered of late. Intel revenues declined from $79 billion in 2021 to $53 billion in 2024 as Intel's CPU sales declined due to the cooling off of the PC market post-Covid-19, and also due to market share gains by rival AMD. The rise in mobile devices and increasing demand for AI chips - areas where Intel has a limited presence - have also hurt. While the PC market is recovering with sales projected to grow by low single-digits this year, consensus estimates project a 2% dip in sales for Intel this year to about $52 billion. That said, there are a couple of trends that could drive a reversal. Foundry business upside: There are increasing signs that Intel's foundry bet isn't taking off the way the company had expected. The foundry business lost nearly $13 billion last year. However, the market for foundry services is actually booming. Taiwan's TSMC - the world's largest foundry player - sees its AI-related chip revenue doubling in 2025 and rising at a mid-40% levels over the next five years. Intel, meanwhile, has captured little of this surge. But unlike rivals that rely heavily on Asian fabs, Intel still operates substantial U.S. manufacturing capacity, making it the only realistic domestic player to drive Washington's push to re-shore semiconductor production as a national security priority. Trump wants domestic semiconductor production, and Intel already has it in spades. Building this capacity from scratch takes years. With the right policy tweaks, Trump could tilt the playing field toward Intel. See How Intel's 2nm node compares with TSMC It's not like Intel hasn't been innovating either. Intel says that its new 18A process will offer higher performance and lower power consumption compared to TSMC's competing node. Still, TSMC's chips are expected to lead in terms of density and cost, and TSMC has been much more efficient at manufacturing its chips. Currently, most of Intel's publicly announced foundry wins have come from non-traditional semiconductor players such as Amazon, Microsoft, and MediaTek. As Intel's tech continues to get better, companies like Apple and Nvidia might even feel obligated to use Intel's services to stay in the administration's good graces. More competitive chips: Intel's latest CPUs are also seeing better reviews. Preliminary benchmarks from PassMark show that Intel's new Arrow Lake-based Core Ultra 9 chip outperforms AMD's competing Ryzen 9 processor by about 7% in CPU benchmarks. Additionally, it is 34% faster than the previous generation i9-14900HX, with single-thread performance improving by 9%. Unlike Intel's AI-focused Lunar Lake chips, these new processors prioritize raw performance for demanding productivity and creative workloads. Over the past two years or so, companies have likely under-invested in traditional CPU-based computing while aggressively securing GPUs, driven by FOMO, or the "fear of missing out" on securing the compute capacity needed for AI deployment. As CPU-related spending potentially rebounds, Intel might be better-positioned to benefit after years of market share losses in both the client and server markets. The broader recovery of the PC market, coupled with stronger products, is likely to help Intel boost its revenue. Intel is also doubling down on the AI processor space with its Gaudi 2 and upcoming Gaudi 3 AI accelerators and this could also provide the company with some incremental upside. If Intel can see a revenue rebound, with sales growing by about 7% annually between 2025 and 2028, revenues could grow from $52 billion in 2025 to about $64 billion. Intel's Margins Have Room For Expansion Intel's adjusted net margins (net income, or profits after expenses and taxes, calculated as a percent of revenues) have been on a declining trajectory - they fell from levels of around 29% in 2021 (and the years before that) to just about 8.5% in 2023 due to sales declines and considerable losses in the foundry business. The metric fell to negative levels in 2024 as Intel posted losses. That being said, multiple trends point to a recovery. Firstly, Intel has been looking to cut costs considerably. Intel's 2024-2025 cost-cutting plan includes reducing $1.5 billion in operating expenses while laying off roughly 25,000 employees (approximately 23% of its workforce). Moreover, as Intel's next-generation manufacturing technology matures, utilization rates of its production facilities could improve, via more in-house manufacturing of Intel's latest chips and fabrication for third parties. Separately, more competitive CPU products might also drive up Intel's pricing power and margins. It's not hard to imagine margins recovering to about 20% by 2028. How Does This Impact Intel's Valuation? Now at the current market price of close to $25 per share, Intel trades at about 200x estimated 2025 earnings and about 37x consensus 2026 earnings. If we combine the scenario we detailed above - which assumes revenue growth of roughly 1.23x between 2025 and 2028 to about $64 billion, with margins growing from negative levels in 2024 to about 20% in 2028, this would mean that adjusted net income could grow to almost $13 billion. Good times make it easier to imagine even better times - and when that happens, investors could begin to see Intel in a more favorable light, re-assessing Intel's recovery path. For example, if Intel's investors assign it an earnings multiple of 20x following its stronger growth trajectory, this could translate into a stock price approaching $60 per share by the end of 2028, assuming earnings of $13 billion or about $2.95 per share. What about the time horizon for this positive-return scenario? While our example illustrates this for a 2028 timeline, in practice, it won't make much difference whether it takes three years or four. If the turnaround takes hold, with Intel improving its key metrics, we could see meaningful gains in the stock. This is a storied company with a glorious past and valuable know-how in a growing market. Our analysis suggests that a win could be at hand - it just may not be very quick, and may require patience. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 - S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Yahoo
28 minutes ago
- Yahoo
Why Is Wall Street So Bearish on Plug Power? There's 1 Key Reason.
Key Points One analyst gives the stock a price target of $0.75. Profitability concerns create ongoing risks for investors. 10 stocks we like better than Plug Power › Plug Power (NASDAQ: PLUG) has captivated growth investors for decades. The company specializes in producing hydrogen fuel systems, a segment of the market that could see massive growth rates throughout the rest of this century. There should be plenty of near-term growth, too. According to research published in 2024 by Bloomberg, clean hydrogen fuel demand is expected to "skyrocket 30-fold to 16.4 million metric tons per year by 2030." But investors aren't all on board: Some Wall Street analysts remain bearish on the stock. Morgan Stanley analysts, for example, rate PLUG stock as a sell with a price target of just $0.75 -- roughly 50% below the current share price. This is the No. 1 problem with Plug Power stock today While industry forecasts call for major hydrogen fuel demand growth, the technology is still largely uncompetitive versus traditional fossil fuels, and even versus renewable sources like wind and solar. As Bloomberg's research highlights, demand growth forecasts will be very sensitive to changes in government regulations and subsidies -- two components that are critical in making hydrogen fuel economically viable. A lack of economic viability has consistently reduced demand for Plug Power's products over the decades. The company itself has often been reliant on large government subsidies to remain financially afloat. This is exactly what Wall Street analysts are worried about. Morgan Stanley's analysts have been sounding the alarm since 2023. "We see significant risk around PLUG's business model," they wrote then. "On paper, PLUG's strategy makes sense to us, but we have reduced confidence in the company's ability to execute on that strategy barring a potential dilutive capital raise." Morgan Stanley's concerns were prescient. Since that time, Plug Power has nearly doubled its share count, massively diluting shareholders in an attempt to stay financially viable. Today, the company continues to post negative net incomes quarter after quarter. The future is bright for hydrogen fuel. But Plug Power's lack of profitability continues to concern analysts, and is something investors have to watch. Should you buy stock in Plug Power right now? Before you buy stock in Plug Power, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plug Power wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,633!* Now, it's worth noting Stock Advisor's total average return is 1,077% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Is Wall Street So Bearish on Plug Power? There's 1 Key Reason. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28 minutes ago
- Yahoo
3 Serious Tesla Problems Investors Aren't Talking Enough About
Key Points Lawsuits continue to mount for Tesla and Elon Musk. There has been a flurry of executive departures from the company. Losing revenue from zero-emission credit sales is a big blow to EV makers. These 10 stocks could mint the next wave of millionaires › It's been a bumpy ride for Tesla (NASDAQ: TSLA) investors in 2025. The EV maker is feeling the heat from all angles: media, consumers, analysts, you name it. But for all the consumers leaving the brand, and the media frustrated with Elon Musk's political antics, there are a few problems that have gone unnoticed. Let's take a look at recent lawsuits, the talent exodus, and the loss of valuable zero-emissions credit sales. 1. Lawsuits keep mounting Just earlier this month, Elon Musk and Tesla were sued by shareholders who accused them of securities fraud for hiding the serious risk its self-driving vehicles posed. The proposed class action lawsuit was filed earlier this month and was a black eye after the automaker's first public test of its robotaxis in late June in Austin, Texas. These lawsuits have a wide range of driving forces, many seemingly from the actions of Musk himself. In fact, as of August 2023, Tesla was already party to over 1,750 lawsuits, a big chunk of them in China, where the company is already struggling to protect market share and profits amid a brutal price war and increased competition from domestic Chinese automakers. Also earlier this month, a federal jury found Tesla partly liable in a 2019 car crash that killed a pedestrian and left another badly injured while the automobile was on Autopilot. The jury awarded the plaintiffs $43 million in compensatory damages for pain and suffering, plus another $200 million in punitive damages. These lawsuits are certainly difficult to keep track of, but investors would be wise to remember that these lawsuits are adding up, and some can be very costly in brand image or directly through damages. 2. A concerning talent exodus Amid the flurry of negative news facing Tesla, many investors brushed off the peppering of executive departures throughout the year. But this is a talent exodus that has become, and should be, concerning to investors. Here's a look at key departures, to name a few: Omead Afshar (VP/Head of Sales and Manufacturing, North America/Europe) Milan Kovac (Head of Optimus Humanoid Robot Team) Vineet Mehta (Head of Battery Architecture) Troy Jones (VP of Sales, Service, and Delivery, North America) Pete Bannon (VP of Hardware Engineering, Chip Tech, and Dojo Supercomputer) Piero Landolfi (Director of Service, North America) Those were just a handful of high-profile executives and key personnel departing, and its leaders in key areas such as service, sales, engineering, and even the robotics team. The departures raise concerns about Tesla's leadership, operational challenges, and its current ability to remain competitive. 3. Companies in this space are losing valuable revenue To say that Tesla and some of its EV competitors are about to lose a significant revenue source is putting it lightly. That's right: Tesla, Lucid, and Rivian, among others, are about to see billions of dollars in revenue disappear seemingly overnight as U.S. policy essentially ends the zero-emission credit market. Essentially, the government formerly penalized automakers with lower average fuel economy, or those that produced more gasoline-guzzling vehicles and fewer EVs, but that is no longer. Without penalties being enforced, those companies failing to meet emissions standards are no longer incentivized to purchase zero-emission credits from EV makers to meet standards. And as the market for those zero-emission credits dried up, so too did a significant chunk of revenue for EV makers with a surplus of such credits. The National Highway Traffic Safety Administration (NHTSA) has already stopped issuing compliance letters to automakers that violate the fuel economy standards. What it all means When it rains, it pours -- at least that's how it seemed for most of Tesla's developments this year. But savvy investors would be wise to keep abreast of developments with Tesla lawsuits and its massive talent exodus, in addition to losing valuable revenue from zero-emission credits. These haven't been covered enough and raise uncertainty surrounding the EV maker. Long-term investors should try and weather the storm and stay focused on the company's business long term. But it's also fair to say Tesla is at a crossroads with its future strategy, and investors will have to revisit their investment thesis to see if they are still aligned. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. 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