Latest news with #AMRC
Yahoo
27-05-2025
- Business
- Yahoo
2 Growth Stocks with Explosive Upside and 1 to Think Twice About
Growth boosts valuation multiples, but it doesn't always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022. Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. That said, here are two growth stocks with significant upside potential and one that could be down big. One-Year Revenue Growth: +30.1% Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors. Why Do We Think AMRC Will Underperform? Muted 6.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers Cash burn makes us question whether it can achieve sustainable long-term growth Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders At $13.65 per share, Ameresco trades at 13x forward P/E. Dive into our free research report to see why there are better opportunities than AMRC. One-Year Revenue Growth: +16.1% Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances. Why Are We Fans of QCOM? Annual revenue growth of 11.3% over the last five years beat the sector average and underscores the unique value of its offerings Strong free cash flow margin of 30.4% enables it to reinvest or return capital consistently Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures Qualcomm's stock price of $145.17 implies a valuation ratio of 12.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. One-Year Revenue Growth: +15.1% With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks. Why Is TXRH a Good Business? Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance Same-store sales growth over the past two years shows it's successfully drawing diners into its restaurants Stellar returns on capital showcase management's ability to surface highly profitable business ventures, and its rising returns show it's making even more lucrative bets Texas Roadhouse is trading at $190 per share, or 26.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
28-04-2025
- Business
- Yahoo
3 Reasons to Avoid AMRC and 1 Stock to Buy Instead
Shareholders of Ameresco would probably like to forget the past six months even happened. The stock dropped 66.9% and now trades at $10.51. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Ameresco, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Despite the more favorable entry price, we're swiping left on Ameresco for now. Here are three reasons why there are better opportunities than AMRC and a stock we'd rather own. Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors. Long-term growth is the most important, but within industrials, a stretched historical view may miss new industry trends or demand cycles. Ameresco's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 1.5% over the last two years. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Ameresco's demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 30.6%, meaning it lit $30.61 of cash on fire for every $100 in revenue. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Ameresco burned through $303.7 million of cash over the last year, and its $1.70 billion of debt exceeds the $108.5 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble. Unless the Ameresco's fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns. We remain cautious of Ameresco until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet. Ameresco isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 7× forward price-to-earnings (or $10.51 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're pretty confident there are more exciting stocks to buy at the moment. We'd suggest looking at one of our top digital advertising picks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. 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. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
3 of Wall Street's Favorite Stocks Facing Headwinds
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it's worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover. Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals. Consensus Price Target: $83.17 (41.5% implied return) Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE:DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses. Why Is DAY Not Exciting? Sales trends were unexciting over the last three years as its 19.8% annual growth was below the typical software company Gross margin of 50.7% is way below its competitors, leaving less money to invest in areas like marketing and R&D Efficiency has decreased over the last year as its operating margin fell by 2.9 percentage points Dayforce is trading at $53.33 per share, or 4.6x forward price-to-sales. If you're considering DAY for your portfolio, see our FREE research report to learn more. Consensus Price Target: $246.15 (40.5% implied return) Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style. Why Does RL Worry Us? Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track Estimated sales growth of 3.7% for the next 12 months is soft and implies weaker demand Projected 2.6 percentage point decline in its free cash flow margin next year reflects the company's plans to increase its investments to defend its market position Ralph Lauren's stock price of $200.13 implies a valuation ratio of 15.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than RL. Consensus Price Target: $35.90 (134% implied return) Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors. Why Are We Wary of AMRC? Annual sales declines of 1.5% for the past two years show its products and services struggled to connect with the market during this cycle Negative free cash flow raises questions about the return timeline for its investments Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $10.04 per share, Ameresco trades at 6.5x forward price-to-earnings. Check out our free in-depth research report to learn more about why AMRC doesn't pass our bar. 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 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. Sign in to access your portfolio
Yahoo
30-03-2025
- Business
- Yahoo
Why Ameresco (AMRC) Is Plunging in 2025?
We recently published a list of . In this article, we are going to take a look at where Ameresco, Inc. (NYSE:AMRC) stands against other construction stocks that are plunging in 2025. 2025 is shaping up to be a pivotal moment for the construction industry. Not long ago, the sector was booming. Infrastructure construction stocks soared as government contracts poured in and a broader economic expansion fueled optimism. There were massive infrastructure and energy projects with endless growth potential, and companies tied to these projects thrived. However, the pendulum has swung hard in the opposite direction. Today, the industry faces a stark slowdown, and those once-high-flying construction stocks are plunging. The U.S. GDP is expected to contract in Q1 2025, and residential and commercial projects are stalling as financing costs rise and demand weakens. Looking ahead, the outlook is murky at best. Some experts predict a modest rebound in late 2025 if interest rates ease and loan activity picks up. But considering tariffs are only getting higher, this could drive up inflation again and cause interest rates to stay up. These stocks have borne the brunt of the downturn. It's worth looking into if you want a front-row seat to the industry's ups and downs. For this article, I screened the worst-performing construction stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A man in a suit shaking hands with an engineer in front of a modern building with energy-saving windows. Number of Hedge Fund Holders In Q4 2024: 19 Ameresco, Inc. (NYSE:AMRC) is an energy solutions provider. The stock is down significantly so far in 2025 as Ameresco (NYSE:AMRC) reported disappointing fourth-quarter 2024 results, with full-year EBITDA and revenue guidance falling short of Wall Street expectations. The company exceeded EPS and EBITDA estimates, but unexpected cost overruns on two large-scale legacy projects negatively impacted gross margins by $20 million. Plus, UBS Group downgraded Ameresco (NYSE:AMRC) from a 'buy' to a 'sell' rating and slashed its price target from $37.00 to $8.00. Other firms, including Robert W. Baird and Canaccord Genuity Group, also lowered their price targets significantly. The consensus price target of $27.63 implies 124.1% upside. AMRC stock is down 47.61% year-to-date. Overall, AMRC ranks 1st on our list of construction stocks that are plunging in 2025. While we acknowledge the potential of AMRC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMRC but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
