Latest news with #AlanTrefler
Yahoo
28-07-2025
- Business
- Yahoo
3 Small-Cap Stocks We Approach with Caution
Investors looking for hidden gems should keep an eye on small-cap stocks because they're frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three small-cap stocks to avoid and some other investments you should consider instead. Pegasystems (PEGA) Market Cap: $10.06 billion Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement. Why Does PEGA Worry Us? Sales trends were unexciting over the last three years as its 11.1% annual growth was below the typical software company Estimated sales growth of 3.3% for the next 12 months implies demand will slow from its three-year trend Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment Pegasystems's stock price of $58.50 implies a valuation ratio of 6.2x forward price-to-sales. Read our free research report to see why you should think twice about including PEGA in your portfolio, it's free. Stratasys (SSYS) Market Cap: $913.5 million Born from the Founder's idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries. Why Should You Dump SSYS? Customers postponed purchases of its products and services this cycle as its revenue declined by 1.7% annually over the last five years Performance over the past five years was negatively impacted by new share issuances as its earnings per share dropped by 13.6% annually, worse than its revenue Cash burn makes us question whether it can achieve sustainable long-term growth At $11.00 per share, Stratasys trades at 34.5x forward P/E. To fully understand why you should be careful with SSYS, check out our full research report (it's free). American Outdoor Brands (AOUT) Market Cap: $123.5 million Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves. Why Is AOUT Risky? Sales trends were unexciting over the last five years as its 5.8% annual growth was below the typical consumer discretionary company Earnings per share have dipped by 23.9% annually over the past four years, which is concerning because stock prices follow EPS over the long term Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions American Outdoor Brands is trading at $9.49 per share, or 16.5x forward P/E. Check out our free in-depth research report to learn more about why AOUT doesn't pass our bar. Stocks We Like More Trump's April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound 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 183% over the last five years (as of March 31st 2025). 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
23-07-2025
- Business
- Yahoo
Pegasystems (NASDAQ:PEGA) Reports Upbeat Q2 But Stock Drops 11%
Enterprise workflow software provider Pegasystems (NASDAQ:PEGA) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 9.5% year on year to $384.5 million. Its non-GAAP profit of $0.28 per share was 18.2% above analysts' consensus estimates. Is now the time to buy Pegasystems? Find out in our full research report. Pegasystems (PEGA) Q2 CY2025 Highlights: Pega Cloud ACV and total ACV beat Pega Cloud Backlog and total Backlog beat Subscription revenue (services + licenses) beat but growth decelerated meaningfully from last quarter Revenue: $384.5 million vs analyst estimates of $363.1 million (9.5% year-on-year growth, 5.9% beat) Adjusted EPS: $0.28 vs analyst estimates of $0.24 (18.2% beat) Operating Margin: 4.5%, in line with the same quarter last year Free Cash Flow Margin: 21.9%, down from 42.5% in the previous quarter Market Capitalization: $8.79 billion 'Our unique approach to AI was a key driver of our strong first half results,' said Alan Trefler, Pega founder and CEO. Company Overview Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Pegasystems grew its sales at a 11.1% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, Pegasystems reported year-on-year revenue growth of 9.5%, and its $384.5 million of revenue exceeded Wall Street's estimates by 5.9%. Looking ahead, sell-side analysts expect revenue to grow 2% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products and services will face some demand challenges. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. Pegasystems's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Pegasystems's products and its peers. Key Takeaways from Pegasystems's Q2 Results We enjoyed seeing Pegasystems beat analysts' revenue and EPS expectations this quarter. Zooming out, we think this quarter featured some important positives. Investors were likely hoping for more, and shares traded down 11% to $45.35 immediately following the results. So should you invest in Pegasystems right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Business Insider
15-07-2025
- Business
- Business Insider
Pegasystems CEO sells $2.33M in common stock
In a regulatory filing, Pegasystems (PEGA) disclosed that its CEO Alan Trefler sold 45K shares of common stock on July 10th in a total transaction size of $2.33M. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yahoo
23-06-2025
- Business
- Yahoo
Unpacking Q1 Earnings: Monday.com (NASDAQ:MNDY) In The Context Of Other Productivity Software Stocks
Let's dig into the relative performance of (NASDAQ:MNDY) and its peers as we unravel the now-completed Q1 productivity software earnings season. Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks. The 17 productivity software stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 3% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Founded in 2014 and named after the dreaded first day of the work week, (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently. reported revenues of $282.3 million, up 30.1% year on year. This print exceeded analysts' expectations by 2.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' billings estimates. 'Our strong financial performance and disciplined execution position us well to navigate uncertainties ahead ,' said Eliran Glazer, CFO. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $280.46. Read why we think that is one of the best productivity software stocks, our full report is free. Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement. Pegasystems reported revenues of $475.6 million, up 44.1% year on year, outperforming analysts' expectations by 33.1%. The business had an incredible quarter with a solid beat of analysts' billings estimates and an impressive beat of analysts' EBITDA estimates. Pegasystems scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 44.2% since reporting. It currently trades at $99.20. Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it's free. Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers. SoundHound AI reported revenues of $29.13 million, up 151% year on year, falling short of analysts' expectations by 4.4%. It was a softer quarter as it posted a significant miss of analysts' EBITDA estimates. SoundHound AI delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 2.1% since the results and currently trades at $9.53. Read our full analysis of SoundHound AI's results here. Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically. DocuSign reported revenues of $763.7 million, up 7.6% year on year. This print beat analysts' expectations by 2.1%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts' EBITDA estimates but a slight miss of analysts' billings estimates. The stock is down 19.3% since reporting and currently trades at $75.05. Read our full, actionable report on DocuSign here, it's free. Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud. Box reported revenues of $276.3 million, up 4.4% year on year. This number surpassed analysts' expectations by 0.6%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts' billings estimates and EPS guidance for next quarter exceeding analysts' expectations. The stock is up 8.9% since reporting and currently trades at $34.25. Read our full, actionable report on Box here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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
Business Insider
19-06-2025
- Business
- Business Insider
Pegasystems CEO sells $3.18M in common stock
In a regulatory filing, Pegasystems (PEGA) disclosed that its CEO Alan Trefler sold 31.5K shares of common stock on June 17th in a total transaction size of $3.18M. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
