1 Momentum Stock with Impressive Fundamentals and 2 to Approach with Caution
The stocks featured in this article are seeing some big returns. Over the past month, they've outpaced the market due to new product launches, positive news, or even a dedicated social media following.
While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two not so much.
One-Month Return: +7.4%
Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Are We Out on NWSA?
Products and services aren't resonating with the market as its revenue declined by 1.4% annually over the last five years
Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
Underwhelming 6.3% return on capital reflects management's difficulties in finding profitable growth opportunities
News Corp's stock price of $28.22 implies a valuation ratio of 31.6x forward P/E. Dive into our free research report to see why there are better opportunities than NWSA.
One-Month Return: +32.2%
With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Why Are We Hesitant About TEX?
Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
Earnings per share have dipped by 16.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
6.1 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position
At $46.65 per share, Terex trades at 9.6x forward P/E. Check out our free in-depth research report to learn more about why TEX doesn't pass our bar.
One-Month Return: +29.7%
Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.
Why Are We Backing NOW?
Sales pipeline is in good shape as its current remaining performance obligations (cRPO) averaged 22.3% growth over the last year
Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 12.9%, and its rise over the last year was fueled by some leverage on its fixed costs
NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
ServiceNow is trading at $1,037 per share, or 16x forward price-to-sales. Is now a good time to buy? See for yourself 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 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
UnitedHealth Seeks $1B Latin America Exit: Sources
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best Dow stocks to invest in. The company is considering several offers for its Latin American business, according to two insiders familiar with the situation, as it works to recover from a series of major setbacks, including the removal of its CEO and a reported criminal accounting investigation. The largest US health insurer has aimed to exit Latin America since 2022, but selling its Banmedica unit has become more urgent recently due to multiple challenges, one source said. A senior healthcare professional giving advice to a patient in a clinic. New CEO Steve Hemsley told shareholders last week that he is focused on regaining their confidence following a disappointing earnings report and a Wall Street Journal story about a criminal probe into alleged Medicare fraud. UnitedHealth Group Incorporated (NYSE:UNH) maintains it has not been notified by the Department of Justice and stands by its business integrity. UnitedHealth Group Incorporated (NYSE:UNH) has received four non-binding bids for Banmedica, which operates in Colombia and Chile, totaling around $1 billion, according to sources who requested anonymity due to the confidential nature of the negotiations. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
Yahoo
14 minutes ago
- Yahoo
Disney to Pay Comcast $438.7M for Full Hulu Ownership, Ending Valuation Dispute
The Walt Disney Company (NYSE:DIS) is one of the best Dow stocks to invest in. The company has agreed to pay Comcast $438.7 million to buy out its remaining stake in the streaming service Hulu, ending a lengthy appraisal process. In 2023, The Walt Disney Company (NYSE:DIS) announced its plan to acquire Comcast's 33% share of Hulu, paying $8.6 billion based on a minimum value of $27.5 billion that the companies had agreed on in 2019. This move wasn't unexpected, as reports had indicated Disney's intention to gain full control of Hulu. The Walt Disney Company (NYSE:DIS) had originally acquired a two-thirds stake in Hulu through its purchase of Fox Corp.'s entertainment assets. After the initial payment, Disney and Comcast entered an appraisal process initially set to finish in 2024. The deal is expected to be finalized by July 24. Disney CEO Bob Iger made the following statement: 'We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck.' Meanwhile, The Walt Disney Company (NYSE:DIS) has started merging Hulu with its other streaming services, which are also bundled with ESPN+, its sports streaming platform. While we acknowledge the potential of DIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Business Wire
17 minutes ago
- Business Wire
Hercules Capital Prices Upsized Institutional Notes Offering of $350.0 Million 6.000% Notes due 2030
SAN MATEO, Calif.--(BUSINESS WIRE)-- Hercules Capital, Inc. (NYSE: HTGC) ('Hercules' or the 'Company'), today announced that it has priced an upsized underwritten public offering of $350.0 million in aggregate principal amount of 6.000% notes due June 2030 (the 'Notes'). The closing of the transaction is subject to customary closing conditions and the Notes are expected to be delivered and paid for on June 16, 2025. The Notes are unsecured and bear interest at a rate of 6.000% per year, payable semiannually and will mature on June 16, 2030 and may be redeemed in whole or in part at any time or from time to time at the Company's option at par, plus a 'make whole' premium, if applicable. The Company expects to use the net proceeds from this offering to repay outstanding secured indebtedness under the Company's existing financing arrangements. Goldman Sachs & Co. LLC and SMBC Nikko Securities America, Inc. are acting as joint book-running managers of this offering. MUFG Securities Americas Inc., Zions Direct, Inc., RBC Capital Markets, LLC, Synovus Securities, Inc. and Keefe, Bruyette & Woods, A Stifel Company are acting as co-managers. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus. Copies of the preliminary prospectus supplement may be obtained from Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, New York 10282, or email: Prospectus-ny@ or telephone: 1-866-471-2526, or SMBC Nikko Securities America, Inc., 277 Park Avenue, New York, New York 10172, Attention: Debt Capital Markets – Transaction Management, or email: prospectus@ or telephone: 1-212-224-5135. Investors are advised to carefully consider the investment objectives, risks, charges and expenses of the Company before investing. The pricing term sheet dated June 11, 2025, the preliminary prospectus supplement dated June 11, 2025, and the accompanying prospectus dated December 11, 2024, each of which has been filed with the SEC, contain this and other information about the Company and should be read carefully before investing. The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release do not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. About Hercules Capital, Inc. Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology and life sciences industries. Since inception (December 2003), Hercules has committed more than $22 billion to over 680 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@ or call (650) 289-3060. Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (the 'Adviser Subsidiary'), also maintains an asset management business through which it manages investments for external parties ('Adviser Funds'). The Adviser Subsidiary is registered as an investment adviser under the Investment Advisers Act of 1940. Hercules' common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol 'HTGC.' In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY). Forward-Looking Statements This press release may contain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as 'anticipates,' 'believes,' 'expects,' 'intends,' 'will,' 'should,' 'may' and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future.
