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Yahoo
14 hours ago
- Business
- Yahoo
3 Unpopular Stocks Facing Headwinds
Wall Street's bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth. Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company's long-term prospects. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals. Consensus Price Target: $24.13 (8.1% implied return) Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions. Why Do We Think Twice About LAUR? Demand for its offerings was relatively low as its number of enrolled students has underwhelmed Flat earnings per share over the last five years underperformed the sector average Underwhelming 7.6% return on capital reflects management's difficulties in finding profitable growth opportunities Laureate Education's stock price of $22.31 implies a valuation ratio of 14.9x forward P/E. To fully understand why you should be careful with LAUR, check out our full research report (it's free). Consensus Price Target: $49.32 (7.2% implied return) With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials. Why Is TEX Not Exciting? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Earnings per share have contracted by 16.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance Free cash flow margin dropped by 6.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up Terex is trading at $46.01 per share, or 9.5x forward P/E. Read our free research report to see why you should think twice about including TEX in your portfolio, it's free. Consensus Price Target: $209.89 (4.2% implied return) Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries. Why Are We Wary of LECO? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Projected sales growth of 2.1% for the next 12 months suggests sluggish demand Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.4% annually At $201.44 per share, Lincoln Electric trades at 21.4x forward P/E. If you're considering LECO 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 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
7 days ago
- Business
- Yahoo
1 Surging Stock to Target This Week and 2 to Question
The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds. However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with the fundamentals to back up its performance and two best left ignored. One-Month Return: +1.1% Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions. Why Does LAUR Fall Short? Performance surrounding its enrolled students has lagged its peers Earnings per share were flat over the last five years and fell short of the peer group average ROIC of 7.6% reflects management's challenges in identifying attractive investment opportunities Laureate Education is trading at $22.90 per share, or 15.2x forward P/E. If you're considering LAUR for your portfolio, see our FREE research report to learn more. One-Month Return: +12.5% With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing. Why Do We Think Twice About JBL? Sales tumbled by 11.6% annually over the last two years, showing market trends are working against its favor during this cycle Earnings per share were flat over the last two years and fell short of the peer group average Low free cash flow margin of 3.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders At $169 per share, Jabil trades at 17.5x forward P/E. Dive into our free research report to see why there are better opportunities than JBL. One-Month Return: +18.3% One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare. Why Are We Bullish on GE? Market share has increased this cycle as its 20.1% annual revenue growth over the last two years was exceptional Robust free cash flow margin of 16.2% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety Improving returns on capital reflect management's ability to monetize investments GE Aerospace's stock price of $247.25 implies a valuation ratio of 44.1x forward P/E. Is now the right time to buy? 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 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 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 Comfort Systems (+782% 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
15-05-2025
- Business
- Yahoo
LAUR Q1 Earnings Call: Digital Enrollment and Operational Resilience Offset Macroeconomic Uncertainty
Higher education company Laureate Education (NASDAQ:LAUR) reported Q1 CY2025 results beating Wall Street's revenue expectations , but sales fell by 14.2% year on year to $236.2 million. The company expects the full year's revenue to be around $1.57 billion, close to analysts' estimates. Its non-GAAP loss of $0.13 per share was 31.6% above analysts' consensus estimates. Is now the time to buy LAUR? Find out in our full research report (it's free). Revenue: $236.2 million vs analyst estimates of $225.2 million (14.2% year-on-year decline, 4.9% beat) Adjusted EPS: -$0.13 vs analyst estimates of -$0.19 (31.6% beat) Adjusted EBITDA: $5.4 million vs analyst estimates of -$5 million (2.3% margin, significant beat) The company slightly lifted its revenue guidance for the full year to $1.57 billion at the midpoint from $1.56 billion EBITDA guidance for the full year is $476.5 million at the midpoint, in line with analyst expectations Operating Margin: -5.6%, down from 4% in the same quarter last year Free Cash Flow Margin: 22.6%, up from 6.3% in the same quarter last year Enrolled Students: 477,000, up 17,600 year on year Market Capitalization: $3.35 billion Laureate Education's first quarter results reflected the impact of seasonality and shifting enrollment cycles, with revenue and adjusted EBITDA outperforming Wall Street expectations despite a double-digit year-over-year decline in reported sales. Management attributed these results to strong enrollment growth in both Mexico and Peru, particularly in fully online programs targeting working adults. CEO Eilif Serck-Hanssen emphasized that the company's performance demonstrates the resilience of its business model, noting that new enrollment growth was 8% in Mexico and 6% in Peru for the intake cycles completed by mid-April. Looking ahead, Laureate Education's forward guidance is shaped by increased visibility following the completion of recent intake cycles. Management slightly raised full-year revenue and EBITDA guidance, citing continued demand for affordable, quality higher education, even as macroeconomic uncertainty persists. CFO Rick Buskirk highlighted that ongoing campus consolidations in Mexico should drive margin improvements, while the growing contribution of digital learning programs is expected to further support enrollment and operational efficiency. The company remains cautious about foreign exchange volatility but believes its locally matched revenues and expenses insulate core operations from major currency risks. Laureate Education's Q1 performance was influenced by timing shifts in academic cycles, robust digital program adoption, and continued focus on operational efficiency. These factors helped offset persistent macroeconomic uncertainty and temporary headwinds in Mexico and Peru. Enrollment Growth in Digital Programs: Management reported that fully online courses experienced double-digit growth in both Mexico and Peru, outpacing traditional face-to-face programs by a factor of three to four. CEO Eilif Serck-Hanssen described digital education as the main channel for accessing working adult students, and noted that about 20% of total enrollment is now fully online. Academic Calendar Shift Impact: CFO Rick Buskirk explained that later semester starts, especially in Peru, shifted approximately $26 million in revenue and $23 million in adjusted EBITDA from Q1 to later quarters. This timing effect was a key reason for the year-over-year revenue decline, despite underlying enrollment strength. Campus Consolidations in Mexico: The company is streamlining its physical campus footprint in Mexico, expecting a one-time revenue loss but improved margins going forward. Management anticipates that these consolidations will drive efficiency and support margin expansion throughout 2025. Resilience Amid Macroeconomic Headwinds: Serck-Hanssen stressed that demand for higher education remains steady, even in uncertain economic environments, as families prioritize education. Both Mexico and Peru are experiencing stable or improving macro backdrops, though management is monitoring trade and currency risks. Capital Return Priorities: Laureate continued to repurchase shares during the quarter and plans to return excess cash to shareholders. Management reaffirmed its commitment to a capital return policy tied to free cash flow generation, with the current buyback program nearly halfway complete at quarter-end. Management's outlook for 2025 centers on the continued expansion of digital enrollment, operational streamlining, and careful navigation of external volatility, with a focus on margin improvement and cash flow conversion. Digital Program Expansion: The company sees fully online programs as a core growth engine, particularly among working adults. Management expects this segment to drive further enrollment gains and operational leverage. Operational Efficiency Initiatives: Campus consolidations and cost control measures, especially in Mexico, are expected to support margin expansion throughout the year, counterbalancing isolated revenue losses from footprint reduction. Macroeconomic and FX Uncertainty: Management highlighted ongoing risks from foreign exchange volatility and trade developments, especially in Mexico. The company's locally matched revenue and expense structures help mitigate transaction exposure, but reported results remain sensitive to translation effects. Jeffrey Silber (BMO Capital Markets): Asked about potential student hesitancy given the uncertain economic environment in Mexico. CEO Eilif Serck-Hanssen explained that working adult enrollments remain robust and expects the main fall intake to reflect last year's trends. Mauricio Cepeda (Morgan Stanley): Sought clarity on the timing and normalization of intake cycles, noting the impact of the later start in Peru. CFO Rick Buskirk confirmed that only a two-week academic delay in Peru required normalization, with no other adjustments. Mauricio Cepeda (Morgan Stanley): Also questioned the choice to maintain a conservative foreign exchange rate in guidance despite recent peso strength. Buskirk cited high FX volatility as the reason for using the previously guided rate. Yan Banco (BTG Pactual): Inquired about the breakdown and momentum of fully digital courses. CEO Serck-Hanssen detailed strong double-digit growth in digital programs and market leadership in Mexico and Peru. Yan Banco (BTG Pactual): Asked about capital allocation and share buybacks. Serck-Hanssen reiterated the commitment to return excess cash to shareholders, with the current buyback program ongoing and future actions pending board review. In the upcoming quarters, the StockStory team will monitor (1) whether digital program enrollment continues to accelerate, particularly among working adults in Mexico and Peru; (2) the effectiveness of campus consolidations in driving margin improvements and operational efficiency; and (3) the company's ability to navigate macroeconomic and foreign exchange headwinds without disrupting enrollment or resource allocation. Continued execution on capital return plans and digital platform expansion will also be key signposts for sustained performance. Laureate Education currently trades at a forward P/E ratio of 15×. In the wake of earnings, is it a buy or sell? Find out in our free research report. 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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
01-05-2025
- Business
- Yahoo
Laureate Education: Q1 Earnings Snapshot
MIAMI (AP) — MIAMI (AP) — Laureate Education Inc. (LAUR) on Thursday reported a loss of $19.5 million in its first quarter. The Miami-based company said it had a loss of 13 cents per share. Losses, adjusted for one-time gains and costs, were 11 cents per share. The for-profit higher education purveyor posted revenue of $236.2 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on LAUR at
Yahoo
22-04-2025
- Business
- Yahoo
Adtalem (ATGE) Surges 7.8%: Is This an Indication of Further Gains?
Adtalem Global Education ATGE shares ended the last trading session 7.8% higher at $106.48. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.5% gain over the past four weeks. Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Adtalem shares soared, reflecting renewed investor optimism. This for-profit education company is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of +8.7%. Revenues are expected to be $443.49 million, up 7.5% from the year-ago quarter. While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For Adtalem, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ATGE going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Adtalem is part of the Zacks Schools industry. Laureate Education (LAUR), another stock in the same industry, closed the last trading session 6.7% higher at $19.56. LAUR has returned -3.9% in the past month. Laureate Education's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. Compared to the company's year-ago EPS, this represents a change of -14.3%. Laureate Education currently boasts a Zacks Rank of #1 (Strong Buy). 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 Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report Laureate Education (LAUR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
