Latest news with #BALY
Yahoo
4 days ago
- Business
- Yahoo
1 Consumer Stock on Our Watchlist and 2 to Ignore
Consumer discretionary businesses are levered to the highs and lows of economic cycles. Over the past six months, it seems like demand trends are working against their favor as the industry has tumbled by 11.9%. This performance was seriously disappointing since the S&P 500 held steady. Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one consumer stock poised to generate sustainable market-beating returns and two we're steering clear of. Market Cap: $477.9 million Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms. Why Should You Sell BALY? Annual revenue growth of 2.9% over the last two years was below our standards for the consumer discretionary sector Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Bally's is trading at $9.75 per share, or 1.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BALY. Market Cap: $150.7 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? Muted 3% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers Poor expense management has led to operating margin losses Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions American Outdoor Brands's stock price of $11.83 implies a valuation ratio of 23.9x forward P/E. To fully understand why you should be careful with AOUT, check out our full research report (it's free). Market Cap: $3.05 trillion Creator of the iPhone and App Store, Apple (NASDAQ:AAPL) is a legendary developer of consumer electronics and software. Why Does AAPL Stand Out? Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently. Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk. The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn't need over-the-top marketing campaigns to convince people to buy its products. At $204.49 per share, Apple trades at 27.2x forward price-to-earnings. Is now the right 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 9 Market-Beating Stocks. 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. Sign in to access your portfolio
Yahoo
06-05-2025
- Business
- Yahoo
3 Cash-Burning Stocks Showing Warning Signs
Rapid spending isn't always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable. Negative cash flow can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here are three cash-burning companies that don't make the cut and some better opportunities instead. Trailing 12-Month Free Cash Flow Margin: -2.9% Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance. Why Should You Dump UAA? 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 Sales are projected to tank by 3.5% over the next 12 months as its demand continues evaporating Low returns on capital reflect management's struggle to allocate funds effectively Under Armour is trading at $5.93 per share, or 18.4x forward P/E. Check out our free in-depth research report to learn more about why UAA doesn't pass our bar. Trailing 12-Month Free Cash Flow Margin: -3.5% Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms. Why Do We Steer Clear of BALY? Annual revenue growth of 4.2% over the last two years was below our standards for the consumer discretionary sector Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $12.62 per share, Bally's trades at 1x forward EV-to-EBITDA. To fully understand why you should be careful with BALY, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: -8.2% Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States. Why Do We Think LGIH Will Underperform? Average backlog growth of 4.9% over the past two years was mediocre and suggests fewer customers signed long-term contracts Diminishing returns on capital suggest its earlier profit pools are drying up Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution LGI Homes's stock price of $55.93 implies a valuation ratio of 7.2x forward P/E. Read our free research report to see why you should think twice about including LGIH in your portfolio, it's free. 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 9 Market-Beating Stocks. 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. 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
15-04-2025
- Business
- Yahoo
3 of Wall Street's Favorite Stocks with Red Flags
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's estimates seem disconnected from reality and some better opportunities to consider. Consensus Price Target: $31.22 (18.7% implied return) Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste. Why Should You Sell REYN? Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth Demand will likely fall over the next 12 months as Wall Street expects flat revenue Capital intensity has ramped up over the last year as its free cash flow margin decreased by 4.4 percentage points At $23.97 per share, Reynolds trades at 13.7x forward price-to-earnings. Read our free research report to see why you should think twice about including REYN in your portfolio, it's free. Consensus Price Target: $18.06 (3.1% implied return) Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms. Why Should You Dump BALY? Lackluster 4.2% annual revenue growth over the last two years indicates the company is losing ground to competitors Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Bally's stock price of $15.09 implies a valuation ratio of 1.2x forward EV-to-EBITDA. If you're considering BALY for your portfolio, see our FREE research report to learn more. Consensus Price Target: $45.63 (47.6% implied return) Founded in California in 1982, Malibu Boats (NASDAQ:MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts. Why Do We Think MBUU Will Underperform? Performance surrounding its boats sold has lagged its peers Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 29% annually Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Malibu Boats is trading at $26.91 per share, or 8.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than MBUU. 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 Strong Momentum 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.
