1 Mooning Stock on Our Watchlist and 2 to Keep Off Your Radar
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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock we think lives up to the hype and two best left ignored.
One-Month Return: +21%
Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.
Why Does U Give Us Pause?
Products, pricing, or go-to-market strategy need some adjustments as its billings have averaged 10.2% declines over the last year
Competitive market dynamics make it difficult to retain customers, leading to a weak 95.8% net revenue retention rate
Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
Unity is trading at $21.97 per share, or 5x forward price-to-sales. If you're considering U for your portfolio, see our FREE research report to learn more.
One-Month Return: +24.9%
Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of trucks and heavy equipment.
Why Do We Avoid CTOS?
Sales trends were unexciting over the last two years as its 4.6% annual growth was below the typical industrials company
Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 29.2 percentage points
Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Custom Truck One Source's stock price of $4.56 implies a valuation ratio of 62.1x forward P/E. To fully understand why you should be careful with CTOS, check out our full research report (it's free).
One-Month Return: +35.7%
Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system.
Why Should RBLX Be on Your Watchlist?
Daily Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
Marketing spend is minimal, showing it doesn't need advertisements to acquire new users because of its well-known brand
Highly efficient business model is illustrated by its impressive 20.5% EBITDA margin
At $77.25 per share, Roblox trades at 45.6x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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.
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Miami Herald
20 minutes ago
- Miami Herald
Trump order seeks to boost U.S. drone industry
June 7 (UPI) -- President Donald Trump is taking aim at drone technology from two directions -- boost the U.S. industry and crack down on malicious activity. Trump on Friday signed executive orders on efforts to spur U.S. production relevant to drone technology, increase U.S. drone security and regulation efforts, and an unleated one to promote design and eventual use of commercial supersonic aircraft. "Unmanned aircraft systems, otherwise known as drones, offer the potential to enhance public safety as well as cement America's leadership in global innovation," an executive order titled Restoring American Airspace Sovereignty read. "But criminals, terrorists, and hostile foreign actors have intensified their weaponization of these technologies, creating new and serious threats to our homeland. Another order, titled Unleashing American Drone Dominance, declares that "building a strong and secure domestic drone sector is vital to reducing reliance on foreign sources, strengthening critical supply chains and ensuring that the benefits of this technology are delivered to the American people." There are more than a million registered drones in the United States, according to the FAA with more than 400,000 commercial drones and more than 350,000 for recreational use. In a press release, the Commercial Drone Alliance said it has "believed that innovation and security are two sides of the same coin. Outdated regulations have long impeded technological innovation and hindered transparency in our airspace." Lisa Ellman, chief executive of the Commercial Drone Alliance, also lauded the executive orders for aiming at both innovation and security simultaneously. "We fully support the long-overdue steps taken by the Trump administration in these Executive Orders -- establishing a framework to scale safe and secure drone operations while enhancing drone security and airspace transparency -- to modernize our domestic drone policy and assure American aviation leadership into the next century of flight," she said in the release. Drone dangers Trump has warned that drones have been used to smuggle drugs across borders, and could threaten large public gatherings, such as the 2026 World Cup and the 2028 Summer Olympics, both in the United States. "It is the policy of the United States to ensure control over our national airspace and to protect the public, critical infrastructure, mass gathering events, and military and sensitive government installations and operations from threats posed by the careless or unlawful use of UAS," the security related order reads. Chinese-made drones from companies like DJI or Autel are not outright banned, but the Federal Acquisition Security Council has been called on to "publish a Covered Foreign Entity List ... identifying companies that pose supply chain risks." In 2022, the U.S. Treasury added DJI and seven other companies to its Chinese Military-Industrial Complex list, which indicates some level of national security concern. The includes a ban on U.S.-based companies exporting technology to them. The majority of drones are estimated to be built in China, The New York Times reported. The Justice Department and FAA were told to enforce civil and criminal penalties for drone operators who violate laws or airspace restrictions. There will be grants for state and local law enforcement to access drone-detection and tracking equipment. The Federal Aviation Administration requires all drones weighing more than 0.55 of a pound to be registered, in addition to restricting how high they can be flown without authorization. The Justice Department and FAA were told to more robustly enforce civil and criminal penalties for drone operators who violate laws or airspace restrictions. Grant programs are planned for state and local law enforcement to access drone-detection and tracking equipment., the order also indicates Drone industry growth In his first term, Trump sought to increase the use of drones and Commerce Secretary Howard Lutnick has been directed to promote exports of U.S.-made drones, in addition to federal agencies being ordered to prioritize purchases of them. "The United States must accelerate the safe commercialization of drone technologies and fully integrate UAS into the National Airspace System," the order reads. "The time has come to accelerate testing and to enable routine drone operations, scale up domestic production, and expand the export of trusted, American-manufactured drone technologies to global markets." The order directs the FAA to allow commercial users and public safety officials not to fly drones beyond their range of sight, meaning that a user must be able to see the drone they are operating. "Building a strong and secure domestic drone sector is vital to reducing reliance on foreign sources, strengthening critical supply chains, and ensuring that the benefits of this technology are delivered to the American people," the order says. Secretary of Transportation Sean Duffy was directed to initiate artificial intelligence tools to assist in and expedite the review of a UAS waiver application, and the Transportation Department was told to develop an Electric Vertical Takeoff and Landing Pilot Program to accelerate the deployment of safe and lawful eVTOL operations in the United States. Supersonic flight An additional executive order titled "Leading the World in Supersonic Flight" seeks to promise planes that travel at supersonic speeds, which are greater than the speed of sound at approximately 768 mph at sea level, or Mach 1. "The United States stands at the threshold of a bold new chapter in aerospace innovation," the order reads. "For more than 50 years, outdated and overly restrictive regulations have grounded the promise of supersonic flight over land, stifling American ingenuity, weakening our global competitiveness, and ceding leadership to foreign adversaries." The order noted that "advances in aerospace engineering, materials science, and noise reduction now make supersonic flight not just possible, but safe, sustainable, and commercially viable." The order repeals regulations prohibiting cross-country supersonic flights, which for decades have precluded nonmilitary air travel over land at faster-than-sound speeds. The Concorde was manufactured from 1965 to 1979, but are no longer flown by airlines, however, Boom Supersonic and NASA are currently developing new supersonic passenger jets. Copyright 2025 UPI News Corporation. All Rights Reserved.
Yahoo
21 minutes ago
- Yahoo
Newsmax Stock Is Set to Join the U.S. Small-Cap Russell 2000 Index in Less Than a Month. Time to Buy?
Newsmax stock has steadily declined since a brief surge after its IPO. The stock trades at a premium valuation. It's delivering solid growth, but traditional media has been a challenging industry for investors. 10 stocks we like better than Newsmax › Newsmax (NYSE: NMAX) has only been a publicly traded company for a couple of months, but it's stuffed a lot of excitement into a short period of time. After pricing its shares at $10 on March 31, the stock skyrocketed to $233 over a two-day trading frenzy before plunging back down to earth. A limited float, high demand, interest in a conservative media brand, and the meme stock effect all combined to send the stock briefly soaring. Since then, Newsmax has gradually declined, closing at $18.09 a share on June 4, though that's still up more than 80% from its IPO price. However, Newsmax shareholders did get some good news recently. The stock is set to join the small-cap Russell 2000 index at the end of the month, meaning that exchange-traded funds (ETFs) that track the index will have to buy shares of Newsmax, which should help boost the stock price. With Newsmax getting some recognition from the best-known small-cap index, it's a good time to ask if the stock is worth buying. Here's what you need to know about Newsmax. IPOs for traditional media companies aren't particularly common in the current era, but Newsmax seemed to see an opportunity to capitalize on interest in conservative media brands in the wake of President Donald Trump's election, and it has so far paid off. In addition to the core broadcasting business, which includes two linear cable channels and a streaming channel, Newsmax also has a digital business, Humanix Publishing, that includes a print and e-book publishing house; Medix Health, which sells 22 nutraceutical products aimed at Newsmax's demographic; an advertising and media strategy business; and an insurance agency, Crown Atlantic Insurance, that primarily sells life insurance and retirement solutions like annuities. As a business, Newsmax's growth has been surprisingly strong; total revenue rose 26% last year to $171 million. Advertising revenue, which makes up the majority of its revenue, was essentially flat, but revenue from affiliate fees surged due to new contractual relationships that began in late 2023. On an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis, it flipped a $10.4 million loss in 2023 to a $10.3 million profit in 2024, due to strong performance in the broadcasting division. Newsmax is now the fourth-highest-rated cable news channel in the U.S., and had 33.6 million viewers in the first quarter. Revenue rose 12% in the first quarter to $45.3 million. Newsmax aims to grow in a number of ways, including expanding the Newsmax audience, growing its premium content to build its subscription business, and expanding its television and digital offerings. Even with some impressive audience growth numbers, including a 50% jump in viewers in the first quarter, traditional television media is a tough sell in this day and age, and Newsmax seems destined to fight an uphill battle even if the political climate remains favorable. For example, viewership could have jumped in the first quarter due to the inauguration or interest in Trump. Investors shouldn't assume that that growth rate is sustainable over the long term. The company's lack of a generally accepted accounting principles (GAAP) profit is also concerning; it lost $72.2 million last year, though that was due in part to a one-time net costs increase of $53 million related to legal fees for the settlement of the Smartmatic lawsuit. In the first quarter, it lost $17.2 million. Additionally, the timing of the IPO, when there was considerable interest in Trump and related businesses, won't help the business over the long term. Overall, Newsmax could be successful despite the larger media industry headwinds, but the stock isn't even an attractive value right now, trading at a price-to-sales ratio of 14. At a better valuation and with a GAAP profit, Newsmax might be worth taking a small position in. While gaining admission into the Russell 2000 is a step in the right direction, it's not enough to make the stock a buy. Before you buy stock in Newsmax, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Newsmax 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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Jeremy Bowman 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. Newsmax Stock Is Set to Join the U.S. Small-Cap Russell 2000 Index in Less Than a Month. Time to Buy? was originally published by The Motley Fool
Yahoo
an hour ago
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Michael Cohen: Musk expects too much from Trump in return for election support
President Trump today said he has no intentions to speak with billionaire Elon Musk again soon. Saying he 'assumes' the relationship is over. Former personal attorney to President Donald Trump, Michael Cohen, shares his insights with Alex Witt on the public falling out between Musk and Trump and more.
