Latest news with #GuidewireSoftware
Yahoo
13 hours ago
- Business
- Yahoo
1 High-Flying Stock with Exciting Potential and 2 We Find Risky
Expensive stocks often command premium valuations because the market thinks their business models are exceptional. However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly. Determining whether a company's quality justifies its price causes headaches for nearly all investors, which is why we started StockStory - to help you separate the real opportunities from the speculative ones. Keeping that in mind, here is one high-flying stock with strong fundamentals and two climbing an uphill battle. Two High-Flying Stocks to Sell: Guidewire Software (GWRE) Forward P/S Ratio: 14.2x With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE:GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics. Why Are We Hesitant About GWRE? Sales trends were unexciting over the last three years as its 12.6% annual growth was below the typical software company Gross margin of 61.9% reflects its relatively high servicing costs Guidewire Software's stock price of $216.15 implies a valuation ratio of 14.2x forward price-to-sales. To fully understand why you should be careful with GWRE, check out our full research report (it's free). NN (NNBR) Forward P/E Ratio: 65.7x Formerly known as Nuturn, NN (NASDAQ:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors. Why Do We Pass on NNBR? Customers postponed purchases of its products and services this cycle as its revenue declined by 6.6% annually over the last two years Negative free cash flow raises questions about the return timeline for its investments Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results NN is trading at $2.30 per share, or 65.7x forward P/E. If you're considering NNBR for your portfolio, see our FREE research report to learn more. One High-Flying Stock to Watch: Apple (AAPL) Forward P/E Ratio: 30.3x Creator of the iPhone and App Store, Apple (NASDAQ:AAPL) is a legendary developer of consumer electronics and software. Why Is AAPL Interesting? 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 $225.64 per share, Apple trades at 30.3x forward price-to-earnings. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Stocks We Like Even 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today 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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
13-08-2025
- Business
- Yahoo
Guidewire Rises 23% YTD: Where Will the Stock Head From Here?
Guidewire Software GWRE stock has appreciated 23.3% year to date compared with the Zacks Internet Software industry's growth of 23.7%. The broader Computer and Technology sector and the S&P 500 composite have returned 14.6% and 9.5%, respectively, over the same time frame. San Mateo, CA-based Guidewire is a provider of software solutions for property and casualty insurers. GWRE closed last session at $207.87. The stock is trading 21% down from its 52-week high of $263.20. Does the pullback indicate a buying opportunity? Price Performance Image Source: Zacks Investment Research Let us dive into GWRE's pros and cons and determine the best course of action for your portfolio. Factors Driving Growth for GWRE Guidewire is benefiting from strong momentum in its cloud business, fueled by rising demand from insurers moving away from legacy systems toward cloud-based solutions. The company has strategically expanded its cloud ecosystem, now encompassing 26,000 Guidewire-specialized practitioners across 38 system integrators. Its focus on enhancing the Guidewire Cloud platform with new capabilities, including digital frameworks, automation, tooling and other cloud services, is expected to boost sales of subscription-based solutions in the long haul. Also, the company announced its first sale of Guidewire Industry Intelligence, a pre-built predictive model embedded into ClaimCenter workflow in the last reported quarter. This solution is trained and validated using anonymized data available on Guidewire's cloud deployments. This not only represents a new revenue opportunity but is a value addition for insurers looking to make data-driven claims decisions. In the fiscal third quarter of 2025, Guidewire secured 17 new deals, 14 for various InsuranceSuite Cloud applications and three for InsuranceNow. These included seven core system wins with Tier 1 insurers and three with Tier 2 insurers. Guidewire Software, Inc. Price, Consensus and EPS Surprise Guidewire Software, Inc. price-consensus-eps-surprise-chart | Guidewire Software, Inc. QuoteManagement's efforts to drive cloud operations efficiency to boost cloud margins remain an additional tailwind. Non-GAAP gross margin expanded to 65.5% from 62.6% on a year-over-year basis. The subscription and support segment's gross margin increased to 70.6% from 65.6% on a year-over-year basis, attributed to higher-than-expected revenues and increases in cloud infrastructure platform efficiency, along with $4 million in credits received from its cloud service provider. Services' non-GAAP gross margin was 12.9% against negative 10.3% in the year-ago quarter. For the fiscal fourth quarter, non-GAAP operating income is estimated in the range of $52-$60 million. Non-GAAP operating income for fiscal 2025 is estimated between $187 million and $195 million compared with $175-$185 million expected by strong collections, Guidewire generated $32.4 million in cash from operations in the quarter under discussion, while free cash flow was nearly $27.8 million. As of April 30, 2025, cash and cash equivalents and short-term investments were $1,243.7 million, with $673.7 million of long-term debt. The company's ability to generate positive cash flow while continuing to invest in growth initiatives provides a solid foundation for by strong revenue performance in the fiscal third quarter, Guidewire expects total revenues for fiscal 2025 to be between $1.178 billion and $1.186 billion compared with earlier guidance of $1.164 billion to $1.174 billion. Subscription revenues are now forecasted to be $660 million, while subscription and support revenues are expected to be $724 million. Services revenues are expected to be approximately $215 million. Image Source: Zacks Investment ResearchIn the past 60 days, analysts have marginally revised estimates upwards for the current year. GWRE Faces Headwinds Higher costs remain a concern for Guidewire, especially amid prevailing weakness in global macroeconomic conditions. In the fiscal third quarter, total operating expenses increased 12.1% year over year to $178.2 million. Increasing costs can put downward pressure on the company's profitability, especially if the revenue performance weakens. Guidewire increasing global footprint, with new customers primarily coming from diverse markets such as Japan, Brazil, Belgium and other international regions, presents foreign exchange as well as integration risks. Strengthening the U.S. dollar could further exacerbate these challenges. Also, these initiatives involve execution risk, especially in regions with different regulatory requirements. If integration delays arise, these could weigh on operating margins or delay expected revenue contributions. GWRE stock is also not so cheap, as its Value Style Score of F indicates a stretched valuation at this moment. The stock is trading at a premium with a forward 12-month price/sales of 12.95X compared with the industry's 5.84X. Retain GWRE Stock With a Zacks Rank #3 (Hold), GWRE appears to be treading in the middle of the road and new investors could be better off if they trade with caution. The stock is also trading at a premium valuation. New investors could wait for a better entry point to capitalize on its long-term fundamentals, while investors owning the stock can stay put. Stocks to Consider Some better-ranked stocks worth consideration with the same industry space are Arista Networks (ANET), Astera Labs ALAB and F5, Inc. FFIV. All stocks sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for ANET's 2025 earnings is pegged at $2.81 per share. ANET's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 12.8%. Its shares have gained 62.1% in the past year. The Zacks Consensus Estimate for ALAB's 2025 EPS is pegged at $1.35, unchanged in the past 60 days. Astera Labs' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 32.2%. Its shares have surged 394.1% in the past year. The Zacks Consensus Estimate for FFIV's fiscal 2025 EPS is pegged at $15.26, unchanged in the past seven days. FFIV's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 12.46%. Its shares have gained 70.6% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report F5, Inc. (FFIV) : Free Stock Analysis Report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
28-07-2025
- Business
- Yahoo
Guidewire Software (GWRE) Rose on Quarterly Results
Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start, but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Smid Cap Composite underperformed the Russell 2500 Growth Index in the quarter and returned 5.00% net-of-fees vs 11.31% for the index. Sector allocation effects were positive, while sector allocation effects were negative. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025. In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Guidewire Software, Inc. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) offers a platform for property and casualty (P&C) insurance companies. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was -5.11%, and its shares gained 50.92% of their value over the last 52 weeks. On July 25, 2025, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $223.38 per share, with a market capitalization of $18.808 billion. Conestoga Capital Advisors stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its second quarter 2025 investor letter: "We believe Guidewire Software, Inc. (NYSE:GWRE) is a best-in-class provider of core software solutions for property and casualty insurers. During the 2Q, GWRE reported quarterly results that featured subscription revenue growth coupled with stronger profit margins and bookings. We were particularly pleased to see GWRE report 17 cloud-based deals (which are more profitable) versus 8 in the year ago period." An insurance adjuster reviewing images and paperwork to process a claim. Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the first quarter, which was 60 in the previous quarter. While we acknowledge the potential of Guidewire Software, Inc. (NYSE:GWRE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Guidewire Software, Inc. (NYSE:GWRE) and shared the list of unstoppable tech stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
10-07-2025
- Business
- Yahoo
GWRE Stock Rises 36% in 6 Months: Stay Invested or Book Profits?
Guidewire Software GWRE stock has appreciated 36.4% in the past six months, significantly outperforming the Zacks Internet Software industry's growth of 17.3%. San Mateo, CA-based Guidewire is a provider of software solutions for property and casualty insurers. Image Source: Zacks Investment Research GWRE closed last session at $231.25. The stock is trading 12.1% down from its 52-week high of $263.20. The recent rally has sparked a familiar dilemma, is it time to stay invested for further upside, or book profits after a strong run? Let us dive into GWRE's pros and cons and determine the best course of action for your portfolio. Momentum in Guidewire Cloud is a tailwind. GWRE is experiencing increasing demand for its cloud platform as insurers transition from legacy systems to cloud-based solutions. The company has strategically built out its cloud ecosystem. This now consists of 26,000 Guidewire-focused practitioners across 38 system integrators. The company reported 17 deal wins in the fiscal third quarter of 2025. Out of these deals, 14 were for various InsuranceSuite Cloud applications and three InsuranceNow deals. It closed seven core system deals with Tier 1 insurers and three with Tier 2 company's focus on enhancing the Guidewire Cloud platform with new capabilities, including digital frameworks, automation, tooling and other cloud services, is expected to boost sales of subscription-based solutions in the long haul. In the last reported quarter, the company announced its first sale of Guidewire Industry Intelligence, a pre-built predictive model embedded into ClaimCenter workflow. This solution is trained and validated using anonymized data available on Guidewire's cloud deployments. This not only represents a new revenue opportunity but is a value addition for insurers looking to make data-driven claims decisions. Management's efforts to drive cloud operations efficiency to boost cloud margins remain an additional tailwind. Non-GAAP gross margin expanded to 65.5% from 62.6% on a year-over-year basis. The subscription and support segment's gross margin increased to 70.6% from 65.6% on a year-over-year basis, attributed to higher-than-expected revenues and increases in cloud infrastructure platform efficiency, along with $4 million in credits received from its cloud service provider. Services' non-GAAP gross margin was 12.9% against negative 10.3% in the year-ago quarter. For the fiscal fourth quarter, non-GAAP operating income is estimated in the range of $52-$60 million. Non-GAAP operating income for fiscal 2025 is estimated between $187 million and $195 million compared with $175-$185 million expected previously. Guidewire Software, Inc. price-consensus-eps-surprise-chart | Guidewire Software, Inc. Quote Driven by strong collections, Guidewire generated $32.4 million in cash from operations in the quarter under discussion while free cash flow was nearly $27.8 million. As of April 30, 2025, cash and cash equivalents and short-term investments were $1,243.7 million, with $673.7 million of long-term debt. The company's ability to generate positive cash flow while continuing to invest in growth initiatives provides a solid foundation for by strong revenue performance in the fiscal third quarter, Guidewire expects total revenues for fiscal 2025 to be between $1.178 billion and $1.186 billion compared with earlier guidance of $1.164 billion to $1.174 billion. Subscription revenues are now forecasted to be $660 million, while subscription and support revenues are expected to be $724 million. Services revenues are expected to be approximately $215 million. In the past 60 days, analysts have revised significantly upwards estimates for the current year. Image Source: Zacks Investment Research Higher costs remain a concern for Guidewire, especially amid weakness prevailing over global macroeconomic conditions. In the fiscal third quarter, total operating expenses increased 12.1% year over year to $178.2 million. Increasing costs can put downward pressure on the company's profitability, especially if the revenue performance weakens. Guidewire increasing global footprint, with new customers primarily coming from diverse markets such as Japan, Brazil, Belgium and other international regions, presents a forex as well as integration risks. Strengthening the U.S. dollar could further exacerbate these challenges. Also, these initiatives involve execution risk, especially in regions with different regulatory requirements. If integration delays arise, these could weigh on operating margins or delay expected revenue contributions. GWRE stock is also not so cheap, as its Value Style Score of F indicates a stretched valuation at this moment. The stock is trading at a premium with a forward 12-month price/sales of 14.58X compared with the industry's 5.88X. Image Source: Zacks Investment Research Guidewire's strong cloud momentum, expanding margins and solid cash position make it a fundamentally sound company with long-term growth potential. With shares still below their 52-week high, there may be room for moderate gains. However, with a Zacks Rank #3 (Hold), GWRE appears to be treading in the middle of the road and new investors could be better off if they trade with caution. The stock is also trading at premium valuation metrics and investors could wait for a better entry point to capitalize on its long-term fundamentals. Consequently, it might not be prudent to bet on the stock at the moment. Some better-ranked stocks worth consideration with the same industry space are Freshworks Inc. FRSH, Automatic Data Processing, Inc. ADP and F5, Inc. FFIV. While FRSH sports a Zacks Rank #1 (Strong Buy), ADP and FFIV presently hold a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for FRSH's 2025 earnings is pegged at 57 cents per share. FRSH earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 37.3%. Its shares have gained 20.4% in the past year. The Zacks Consensus Estimate for ADP's fiscal 2026 EPS is pegged at $10.92, unchanged in the past seven days. ADP's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.45%. Its shares have surged 30.9% in the past year. The Zacks Consensus Estimate for FFIV's fiscal 2025 EPS is pegged at $14.58, up 3 cents in the past seven days. FFIV's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.95%. Its shares have gained 74% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report F5, Inc. (FFIV) : Free Stock Analysis Report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report Freshworks Inc. (FRSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
26-06-2025
- Business
- Yahoo
Here's Why Guidewire Software (GWRE) Rose in Q1
Wasatch Global Investors, an asset management company, released its 'Wasatch U.S. Select Strategy' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities declined in the first quarter due to potential tariffs and government funding cuts. Against this backdrop, the strategy was down but exceeded the Russell Midcap® Growth Index, which lost -7.12%. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Wasatch U.S. Select Strategy highlighted stocks such as Guidewire Software, Inc. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) offers a platform for property and casualty (P&C) insurance companies. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was 11.68%, and its shares gained 72.02% of their value over the last 52 weeks. On June 25, 2025, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $236.01 per share, with a market capitalization of $19.871 billion. Wasatch U.S. Select Strategy stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its Q1 2025 investor letter: "Another top contributor was Guidewire Software, Inc. (NYSE:GWRE), a software provider whose solutions target the insurance industry. We believe Guidewire remains a clear leader in replacing legacy technology solutions for property and casualty insurers. This is a large industry to serve, and acquisitions Guidewire made have bolstered its offerings to the market." An insurance adjuster reviewing images and paperwork to process a claim. Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the first quarter, which was 60 in the previous quarter. While we acknowledge the potential of Guidewire Software, Inc. (NYSE:GWRE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Guidewire Software, Inc. (NYSE:GWRE) and shared The BBH Select Series – Mid Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of GWRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
