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Yahoo
4 days ago
- Business
- Yahoo
1 Safe-and-Steady Stock Worth Your Attention and 2 to Steer Clear Of
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need. Rolling One-Year Beta: 0.15 Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices. Why Does KDP Worry Us? Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.5% over the last three years was below our standards for the consumer staples sector Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 5.7 percentage points ROIC of 5.7% reflects management's challenges in identifying attractive investment opportunities Keurig Dr Pepper is trading at $32.63 per share, or 15.8x forward P/E. Check out our free in-depth research report to learn more about why KDP doesn't pass our bar. Rolling One-Year Beta: 0.39 Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies. Why Are We Hesitant About CRL? 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 Forecasted revenue decline of 2.6% for the upcoming 12 months implies demand will fall off a cliff Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Charles River Laboratories's stock price of $140 implies a valuation ratio of 14.8x forward P/E. Read our free research report to see why you should think twice about including CRL in your portfolio, it's free. Rolling One-Year Beta: 0.65 Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores. Why Could ROST Be a Winner? Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth Same-store sales growth averaged 3.5% over the past two years, showing it's bringing new and repeat shoppers into its stores Stellar returns on capital showcase management's ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities At $142.24 per share, Ross Stores trades at 21.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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 5 Growth Stocks for this month. 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.
Yahoo
05-05-2025
- Business
- Yahoo
3 Hated Stocks That Concern Us
Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap? At StockStory, we dig beneath the surface of price movements to uncover whether a company's fundamentals justify its current valuation or suggest hidden potential. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead. One-Month Return: +1.4% Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste. Why Do We Pass on REYN? Declining unit sales over the past two years show it's struggled to move its products and had to rely on price increases Projected sales decline of 1.4% for the next 12 months points to an even tougher demand environment ahead Free cash flow margin dropped by 6.1 percentage points over the last year, implying the company became more capital intensive as competition picked up Reynolds's stock price of $23.31 implies a valuation ratio of 14.2x forward P/E. Dive into our free research report to see why there are better opportunities than REYN. One-Month Return: -4.6% Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia. Why Do We Think ULH Will Underperform? Customers postponed purchases of its products and services this cycle as its revenue declined by 5.1% annually over the last two years Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Free cash flow margin shrank by 9.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Universal Logistics is trading at $23.41 per share, or 7.4x forward P/E. Check out our free in-depth research report to learn more about why ULH doesn't pass our bar. One-Month Return: -1.2% With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally. Why Are We Cautious About MMS? Demand will likely fall over the next 12 months as Wall Street expects flat revenue Underwhelming 12.3% return on capital reflects management's difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam Eroding returns on capital from an already low base indicate that management's recent investments are destroying value At $66.52 per share, Maximus trades at 10.7x forward P/E. If you're considering MMS for your portfolio, see our FREE research report to learn more. 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 Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
2 Cash-Heavy Stocks to Keep an Eye On and 1 to Brush Off
Companies with more cash than debt can be financially resilient, but that doesn't mean they're all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers. Not all businesses with cash are winners, and that's why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one that may struggle. Net Cash Position: $283.2 million (1.7% of Market Cap) Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE:GWRE) offers insurance companies a software-as-a-service platform to help sell their products and manage their workflows. Why Are We Wary of GWRE? Annual revenue growth of 12.4% over the last three years was below our standards for the software sector Gross margin of 61.4% is below its competitors, leaving less money to invest in areas like marketing and R&D Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue Guidewire is trading at $197.01 per share, or 13.2x forward price-to-sales. Check out our free in-depth research report to learn more about why GWRE doesn't pass our bar. Net Cash Position: $1.36 billion (6.5% of Market Cap) Founded by three MIT engineers at a local Cambridge bar, Toast (NYSE:TOST) provides integrated point-of-sale (POS) hardware, software, and payments solutions for restaurants. Why Do We Like TOST? ARR growth averaged 30.6% over the last year, showing customers are willing to take multi-year bets on its offerings Notable projected revenue growth of 22.6% for the next 12 months hints at market share gains Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale At $36.70 per share, Toast trades at 3.6x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Net Cash Position: $93.78 million (11.3% of Market Cap) Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ:NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems. Why Are We Backing NSSC? Impressive 11.8% annual revenue growth over the last five years indicates it's winning market share this cycle Robust free cash flow margin of 16.3% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety Returns on capital are growing as management capitalizes on its market opportunities Napco's stock price of $22.72 implies a valuation ratio of 14.8x forward price-to-earnings. 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 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.
