Latest news with #ARCB
Yahoo
08-05-2025
- Automotive
- Yahoo
3 Profitable Stocks That Concern Us
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are three profitable companies to avoid and some better opportunities instead. Trailing 12-Month GAAP Operating Margin: 21.9% Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices. Why Are We Cautious About TER? Annual revenue growth of 3% over the last five years was below our standards for the semiconductor sector Anticipated sales growth of 2.3% for the next year implies demand will be shaky Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 7.9 percentage points Teradyne's stock price of $75 implies a valuation ratio of 20.8x forward P/E. Dive into our free research report to see why there are better opportunities than TER. Trailing 12-Month GAAP Operating Margin: 5.9% With a strong presence in the Southern and Central US, America's Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers. Why Do We Steer Clear of CRMT? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Gross margin of 20.2% is below its competitors, leaving less money for marketing and promotions Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution America's Car-Mart is trading at $46.71 per share, or 14.7x forward P/E. To fully understand why you should be careful with CRMT, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 5.6% Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight. Why Should You Dump ARCB? Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth Earnings per share have dipped by 32.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term Diminishing returns on capital suggest its earlier profit pools are drying up At $58.93 per share, ArcBest trades at 9.2x forward P/E. If you're considering ARCB for your portfolio, see our FREE research report to learn more. 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 United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
Yahoo
02-05-2025
- Business
- Yahoo
3 Hated Stocks Showing Warning Signs
The past year hasn't been kind to the stocks featured in this article. Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives. While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead. One-Month Return: -18.1% A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ:BYND) is a food company specializing in alternatives to traditional meat products. Why Do We Steer Clear of BYND? Declining unit sales over the past two years show it's struggled to move its products and had to rely on price increases Cash-burning history makes us doubt the long-term viability of its business model Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $2.53 per share, Beyond Meat trades at 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BYND. One-Month Return: -11.7% Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE:THS) produces a wide range of private-label foods for grocery and food service customers. Why Should You Dump THS? Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth Gross margin of 16.8% is an output of its commoditized products Low returns on capital reflect management's struggle to allocate funds effectively TreeHouse Foods is trading at $23.13 per share, or 9.7x forward P/E. If you're considering THS for your portfolio, see our FREE research report to learn more. One-Month Return: -16.6% Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight. Why Are We Out on ARCB? Declining unit sales over the past two years show it's struggled to increase its sales volumes and had to rely on price increases Earnings per share have dipped by 32.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term Waning returns on capital imply its previous profit engines are losing steam ArcBest's stock price of $60.71 implies a valuation ratio of 9.1x forward P/E. Dive into our free research report to see why there are better opportunities than ARCB. 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 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 Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
3 Industrials Stocks Showing Warning Signs
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 12.1% over the past six months. This performance was worse than the S&P 500's 5.2% decline. Investors should tread carefully as timing cyclical companies is a challenging task, and any misstep can have you catching a falling knife. With that said, here are three industrials stocks we're passing on. Market Cap: $1.35 billion Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight. Why Do We Pass on ARCB? Flat unit sales over the past two years imply it may need to invest in improvements to get back on track Earnings per share have dipped by 32.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term Waning returns on capital imply its previous profit engines are losing steam At $58.50 per share, ArcBest trades at 7.7x forward price-to-earnings. If you're considering ARCB for your portfolio, see our FREE research report to learn more. Market Cap: $290.3 million Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE:VPG) operates as a global provider of precision measurement and sensing technologies. Why Are We Out on VPG? Customers postponed purchases of its products and services this cycle as its revenue declined by 8.1% annually over the last two years Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 3.9 percentage points Incremental sales over the last five years were much less profitable as its earnings per share fell by 13.4% annually while its revenue grew Vishay Precision is trading at $22.15 per share, or 20.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than VPG. Market Cap: $6.25 billion With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology. Why Do We Steer Clear of AGCO? 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 Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 7.6 percentage points Incremental sales over the last five years were much less profitable as its earnings per share fell by 40.8% annually while its revenue grew AGCO's stock price of $84.36 implies a valuation ratio of 19.9x forward price-to-earnings. Read our free research report to see why you should think twice about including AGCO in your portfolio, 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 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 Axon (+711% 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
Will Weakness in ArcBest Corporation's (NASDAQ:ARCB) Stock Prove Temporary Given Strong Fundamentals?
It is hard to get excited after looking at ArcBest's (NASDAQ:ARCB) recent performance, when its stock has declined 38% over the past three months. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to ArcBest's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for ArcBest is: 13% = US$173m ÷ US$1.3b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.13 in profit. Check out our latest analysis for ArcBest We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To start with, ArcBest's ROE looks acceptable. Even when compared to the industry average of 14% the company's ROE looks quite decent. This probably goes some way in explaining ArcBest's moderate 18% growth over the past five years amongst other factors. Next, on comparing with the industry net income growth, we found that ArcBest's growth is quite high when compared to the industry average growth of 6.0% in the same period, which is great to see. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. What is ARCB worth today? The intrinsic value infographic in our free research report helps visualize whether ARCB is currently mispriced by the market. ArcBest's three-year median payout ratio to shareholders is 5.9% (implying that it retains 94% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business. Moreover, ArcBest is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 4.7%. As a result, ArcBest's ROE is not expected to change by much either, which we inferred from the analyst estimate of 16% for future ROE. In total, we are pretty happy with ArcBest's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
