Latest news with #BeautyHealth
Yahoo
22-05-2025
- Business
- Yahoo
1 Cash-Producing Stock for Long-Term Investors and 2 to Brush Off
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 9.3% Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin. Why Should You Dump SKIN? Annual revenue growth of 3.8% over the last three years was below our standards for the consumer staples sector Historical operating losses point to an inefficient cost structure High net-debt-to-EBITDA ratio of 10× could force the company to raise capital at unfavorable terms if market conditions deteriorate BeautyHealth's stock price of $1.54 implies a valuation ratio of 12.2x forward EV-to-EBITDA. To fully understand why you should be careful with SKIN, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: 6.8% Creator of the famous M1 Abrahms tank, General Dynamics (NYSE:GD) develops aerospace, marine systems, combat systems, and information technology products. Why Does GD Give Us Pause? Backlog failed to grow over the past two years, suggesting the company may need to tweak its product roadmap and go-to-market strategy Estimated sales growth of 3.1% for the next 12 months implies demand will slow from its two-year trend Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.6 percentage points At $279 per share, General Dynamics trades at 18.5x forward P/E. If you're considering GD for your portfolio, see our FREE research report to learn more. Trailing 12-Month Free Cash Flow Margin: 38.8% Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world's largest online marketplace for lodging, primarily homestays. Why Is ABNB a Top Pick? Nights and Experiences Booked are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features Earnings per share have massively outperformed its peers over the last three years, increasing by 49.4% annually Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends Airbnb is trading at $127.44 per share, or 18.9x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full 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 9 Market-Beating Stocks. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
09-05-2025
- Business
- Yahoo
BeautyHealth (SKIN) Stock Trades Up, Here Is Why
Shares of skincare company BeautyHealth (NASDAQ:SKIN) jumped 42.7% in the afternoon session after the company reported strong first quarter 2025 results which included significant beats on sales, gross margin and EBITDA. BeautyHealth planned to manage some of its tariff risk by moving its production to the U.S. and changing how it sells in China, which could help over time. Overall, we think this was still a decent quarter with some key metrics above expectations. Is now the time to buy BeautyHealth? Access our full analysis report here, it's free. BeautyHealth's shares are extremely volatile and have had 70 moves greater than 5% over the last year. But moves this big are rare even for BeautyHealth and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 17 days ago when the stock gained 10% as investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets. BeautyHealth is up 13.4% since the beginning of the year, but at $1.83 per share, it is still trading 49.2% below its 52-week high of $3.59 from May 2024. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. 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
08-05-2025
- Business
- Yahoo
BeautyHealth (NASDAQ:SKIN) Reports Bullish Q1
Skincare company BeautyHealth (NASDAQ:SKIN) announced better-than-expected revenue in Q1 CY2025, but sales fell by 14.5% year on year to $69.6 million. On the other hand, next quarter's revenue guidance of $73.5 million was less impressive, coming in 2.9% below analysts' estimates. Its GAAP loss of $0.08 per share was 37.6% above analysts' consensus estimates. Is now the time to buy BeautyHealth? Find out in our full research report. Revenue: $69.6 million vs analyst estimates of $63.34 million (14.5% year-on-year decline, 9.9% beat) EPS (GAAP): -$0.08 vs analyst estimates of -$0.13 (37.6% beat) Adjusted EBITDA: $7.3 million vs analyst estimates of -$5.54 million (10.5% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $285 million at the midpoint EBITDA guidance for the full year is $20 million at the midpoint, above analyst estimates of $11.98 million Operating Margin: -17.2%, up from -20.9% in the same quarter last year Free Cash Flow was $3 million, up from -$18.66 million in the same quarter last year Market Capitalization: $178.9 million 'Our first quarter results reflect strong execution and continued momentum in our transformation strategy,' said CEO Marla Beck. Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin. A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $322.5 million in revenue over the past 12 months, BeautyHealth is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, BeautyHealth's 3.8% annualized revenue growth over the last three years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. This quarter, BeautyHealth's revenue fell by 14.5% year on year to $69.6 million but beat Wall Street's estimates by 9.9%. Company management is currently guiding for a 18.9% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 9.1% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and suggests its products will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. BeautyHealth has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company's free cash flow margin averaged 5.4% over the last two years, slightly better than the broader consumer staples sector. Taking a step back, we can see that BeautyHealth's margin expanded by 7.6 percentage points over the last year. This is encouraging because it gives the company more optionality. BeautyHealth's free cash flow clocked in at $3 million in Q1, equivalent to a 4.3% margin. Its cash flow turned positive after being negative in the same quarter last year, building on its favorable historical trend. We were impressed by how significantly BeautyHealth blew past analysts' gross margin expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide margin. On the other hand, its EBITDA guidance for next quarter missed significantly and its revenue guidance for next quarter fell short of Wall Street's estimates. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 2.4% to $1.26 immediately after reporting. BeautyHealth may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's 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
05-05-2025
- Business
- Yahoo
3 Volatile Stocks Walking a Fine Line
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors. Navigating these stocks isn't easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead. Rolling One-Year Beta: 2.76 Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin. Why Do We Avoid SKIN? Subscale operations are evident in its revenue base of $334.3 million, meaning it has fewer distribution channels than its larger rivals Historical operating losses point to an inefficient cost structure High net-debt-to-EBITDA ratio of 15× could force the company to raise capital at unfavorable terms if market conditions deteriorate BeautyHealth is trading at $1.18 per share, or 8.8x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SKIN in your portfolio, it's free. Rolling One-Year Beta: 1.54 One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems. Why Are We Out on BA? Declining unit sales over the past two years show it's struggled to increase its sales volumes and had to rely on price increases Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $185.10 per share, Boeing trades at 26.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BA doesn't pass our bar. Rolling One-Year Beta: 1.20 Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide. Why Are We Wary of GEHC? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 3.8% Performance over the past three years shows its incremental sales were less profitable as its earnings per share were flat GE HealthCare's stock price of $71.23 implies a valuation ratio of 14.6x forward P/E. To fully understand why you should be careful with GEHC, check out our full research report (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 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
22-04-2025
- Business
- Yahoo
RH, SunOpta, BeautyHealth, Funko, and Vertiv Shares Are Soaring, What You Need To Know
A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, following stocks were impacted: Home Furniture Retailer company RH (NYSE:RH) jumped 11.1%. Is now the time to buy RH? Access our full analysis report here, it's free. Shelf-Stable Food company SunOpta (NASDAQ:STKL) jumped 10.8%. Is now the time to buy SunOpta? Access our full analysis report here, it's free. Personal Care company BeautyHealth (NASDAQ:SKIN) jumped 10%. Is now the time to buy BeautyHealth? Access our full analysis report here, it's free. Toys and Electronics company Funko (NASDAQ:FNKO) jumped 5.6%. Is now the time to buy Funko? Access our full analysis report here, it's free. Electrical Systems company Vertiv (NYSE:VRT) jumped 6.2%. Is now the time to buy Vertiv? Access our full analysis report here, it's free. RH's shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for RH and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 1 day ago when the stock dropped 6.1% on the news that President Trump criticized the Federal Reserve's approach to interest rate cuts, warning that the pace was slow and could hinder economic growth. Trump's comments added pressure to an already sensitive market, raising concerns about political interference in monetary policy. Meanwhile, Fed Chair Jerome Powell maintained a cautious stance the previous week, highlighting the difficulty of balancing the dual mandate of steady employment and price stability amid the escalating trade tension. Investor sentiment was further dampened by the absence of constructive progress in trade negotiations, especially US-China relations which took a turn for the worse in the previous week. Overall, the outlook seemed more unclear heading into the first quarter 2025 earnings season, as a combination of hard to predict monetary policy and unresolved trade tensions weighed on business confidence. RH is down 56.7% since the beginning of the year, and at $170.97 per share, it is trading 62.4% below its 52-week high of $454.52 from January 2025. Investors who bought $1,000 worth of RH's shares 5 years ago would now be looking at an investment worth $1,342. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
