Latest news with #LancasterColony
Yahoo
3 days ago
- Business
- Yahoo
1 Safe-and-Steady Stock for Long-Term Investors and 2 to Ignore
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Finding the right balance between safety and returns isn't easy, which is why StockStory is here to help. 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: 0.05 Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels. Why Does LANC Worry Us? Annual revenue growth of 5.4% over the last three years was below our standards for the consumer staples sector Modest revenue base of $1.89 billion gives it less fixed cost leverage and fewer distribution channels than larger companies Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its three-year trend Lancaster Colony's stock price of $167.07 implies a valuation ratio of 23.6x forward P/E. If you're considering LANC for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.86 Founded by a former game parlor and bar operator, Dave & Buster's (NASDAQ:PLAY) operates a chain of arcades providing immersive entertainment experiences. Why Do We Think PLAY Will Underperform? Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $23.73 per share, Dave & Buster's trades at 8.7x forward P/E. Check out our free in-depth research report to learn more about why PLAY doesn't pass our bar. Rolling One-Year Beta: 0.54 Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer. Why Could TSCO Be a Winner? Rapidly increasing store base reflects a desire to sell in new markets and scale quickly Sales outlook for the upcoming 12 months implies the business will stay on its desirable six-year growth trajectory Industry-leading 35.2% return on capital demonstrates management's skill in finding high-return investments Tractor Supply is trading at $49.58 per share, or 22.4x forward P/E. Is now the time to initiate a position? Find out in 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 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.
Yahoo
26-05-2025
- Business
- Yahoo
3 Out-of-Favor Stocks Facing Headwinds
Hitting a new 52-week low can be a pivotal moment for any stock. These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds. Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider. One-Month Return: -12.3% Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes. Why Do We Steer Clear of OPEN? Number of homes purchased has disappointed over the past two years, indicating weak demand for its offerings Cash-burning history makes us doubt the long-term viability of its business model Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $0.68 per share, Opendoor trades at 0.1x forward price-to-sales. To fully understand why you should be careful with OPEN, check out our full research report (it's free). One-Month Return: -13.6% Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels. Why Does LANC Fall Short? Muted 5.4% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers Smaller revenue base of $1.89 billion means it hasn't achieved the economies of scale that some industry juggernauts enjoy Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its three-year trend Lancaster Colony's stock price of $164 implies a valuation ratio of 23.2x forward P/E. Check out our free in-depth research report to learn more about why LANC doesn't pass our bar. One-Month Return: -1.4% Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ:ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets. Why Should You Sell ZD? Sales stagnated over the last five years and signal the need for new growth strategies Sales over the last five years were less profitable as its earnings per share fell by 1.6% annually while its revenue was flat Free cash flow margin dropped by 17.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up Ziff Davis is trading at $30.41 per share, or 4.3x forward P/E. Read our free research report to see why you should think twice about including ZD in your portfolio, 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 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 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. 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
2 Russell 2000 Stocks for Long-Term Investors and 1 to Think Twice About
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Picking the right small caps isn't easy, and that's exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here are two Russell 2000 stocks that could be the next big thing and one that may face some trouble. Market Cap: $4.56 billion Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels. Why Are We Hesitant About LANC? 5.4% annual revenue growth over the last three years was slower than its consumer staples peers Revenue base of $1.89 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its three-year trend Lancaster Colony is trading at $165.48 per share, or 23.4x forward P/E. Read our free research report to see why you should think twice about including LANC in your portfolio, it's free. Market Cap: $7.89 billion Installing the first bulk Co2 tank for McDonalds's sodas, Chart (NYSE:GTLS) provides equipment to store and transport gasses. Why Are We Bullish on GTLS? Sales pipeline is in good shape as its backlog averaged 41.6% growth over the past two years Operating margin improvement of 7.3 percentage points over the last five years demonstrates its ability to scale efficiently Earnings per share grew by 35% annually over the last two years and trumped its peers At $172.71 per share, Chart trades at 13.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Market Cap: $4.70 billion Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation. Why Are We Backing BE? Annual revenue growth of 14.5% over the last five years was superb and indicates its market share increased during this cycle Additional sales over the last two years increased its profitability as the 74.2% annual growth in its earnings per share outpaced its revenue Free cash flow turned positive over the last five years, showing the company has crossed a key inflection point Bloom Energy's stock price of $20.28 implies a valuation ratio of 45.3x forward P/E. 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 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 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
14-05-2025
- Business
- Yahoo
LANC Q1 Earnings Call: Supply Chain Actions Offset Weak Sales, New Retail Initiatives Highlighted
Specialty food company Lancaster Colony (NASDAQ:LANC) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.9% year on year to $457.8 million. Its non-GAAP profit of $1.54 per share was 2.3% below analysts' consensus estimates. Is now the time to buy LANC? Find out in our full research report (it's free). Revenue: $457.8 million vs analyst estimates of $483.3 million (2.9% year-on-year decline, 5.3% miss) Adjusted EPS: $1.54 vs analyst expectations of $1.58 (2.3% miss) Adjusted EBITDA: $65.53 million vs analyst estimates of $69.24 million (14.3% margin, 5.4% miss) Operating Margin: 10.9%, up from 7.5% in the same quarter last year Free Cash Flow Margin: 6.7%, down from 13% in the same quarter last year Sales Volumes were flat year on year (1.5% in the same quarter last year) Market Capitalization: $4.62 billion Lancaster Colony's first quarter results were shaped by soft consumer demand and industry-wide pressures in both retail and foodservice channels. Management identified weather disruptions, the timing of major holidays, and lower restaurant traffic as key factors weighing on sales. CEO Dave Ciesinski pointed to growth in licensed products and margin expansion through cost-saving initiatives as areas of progress, despite the overall sales decline. Looking ahead, the company's forward guidance is driven by ongoing efforts to expand distribution of newer licensed brands and optimize its supply chain. Ciesinski emphasized, 'We project that our Retail segment sales will benefit from our licensing program including expanding distribution for the recently introduced Texas Roadhouse dinner rolls and the extension of Chick-fil-A sauce into the club channel.' Lancaster Colony is also monitoring external headwinds, such as the cautious consumer environment and industry shifts toward value offerings, while focusing on margin improvement through manufacturing network changes. Lancaster Colony's management attributed the first quarter's financial results to a combination of external market challenges and internal operational improvements. The company discussed actions taken to boost core brand performance, manage costs, and expand its network for future growth. Retail Licensing Expansion: The launch of Chick-fil-A sauce in club channels and the ongoing success of Texas Roadhouse dinner rolls were cited as primary drivers of retail segment momentum. Management expects these initiatives to support volume growth next year as distribution widens. Foodservice Volume Pressures: Foodservice sales were pressured by weather-related restaurant closures and softer industry traffic, with management noting that several large customers experienced extended downtime. The broader trend of restaurant chains shifting to value-focused menus also weighed on volumes. Operational Efficiencies: Gross margin improvements were attributed to supply chain productivity, value engineering, and stable commodity costs. CFO Tom Pigott highlighted that cost-saving measures and favorable pricing versus input costs offset the impact of lower sales. Manufacturing Network Changes: The acquisition of an Atlanta-based sauce and dressing facility and the planned closure of a California plant were described as key steps to streamline operations and reduce costs. These moves are expected to enhance the company's ability to serve key customers efficiently. Retail Market Share Gains: Despite the challenging environment, core brands such as New York Bakery and Sister Schubert's increased market share in frozen bread categories. The company's licensing program also contributed to share gains in sauces and dressings. Management expects Lancaster Colony's near-term performance to be shaped by expansion of licensed products, continued supply chain optimization, and persistent industry headwinds in both retail and foodservice. Licensed Product Distribution: Broader rollout of Chick-fil-A sauces in club stores and Texas Roadhouse dinner rolls in mass retail channels are expected to drive incremental sales, with management describing these as meaningful contributors in upcoming quarters. Supply Chain Restructuring: The integration of the Atlanta facility and closure of the Milpitas, California plant are central to margin improvement goals, with management aiming to streamline production and reduce operating costs. Consumer and Industry Risks: Ongoing softness in consumer demand and restaurant traffic, as well as potential shifts in promotional activity, remain risks that could impact both revenue and volume trends. Jim Salera (Stephens): Asked about collaborating with foodservice customers to offset weak industry traffic; management responded that menu innovation and select price increases could help, but they expect low single-digit declines unless traffic recovers. Scott Marks (Jefferies): Inquired about refrigerated dressings' underperformance; CEO Ciesinski explained it was largely due to Easter timing, and noted some broader consumer softness in that category. Andrew Wolf (C.L. King): Sought clarity on promotional strategy and competitive dynamics; management reiterated a cautious approach to trade spending, preferring targeted promotions and end-cap placement over broad price cuts. Alton Stump (Loop Capital): Questioned the potential impact of Chick-fil-A sauce in club channels; management characterized it as a significant growth opportunity and noted strong early performance at Sam's and Costco. Andrew Wolf (C.L. King): Asked for quantification of the Easter holiday impact; management estimated at least a one percentage point effect on adjusted volume. The StockStory team will be monitoring (1) the pace and impact of new licensed product rollouts, especially the expansion of Chick-fil-A sauces and Texas Roadhouse dinner rolls; (2) progress on supply chain initiatives, including the Atlanta facility integration and Milpitas plant closure; and (3) stabilization or improvement in both retail and foodservice volumes. Any shifts in consumer demand or competitive pricing will also be key drivers in the quarters ahead. Lancaster Colony currently trades at a forward P/E ratio of 23.7×. Should you double down or take your chips? The answer lies in our free research report. 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 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.
Yahoo
05-05-2025
- Business
- Yahoo
Are Lancaster Colony Corporation's (NASDAQ:LANC) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Lancaster Colony (NASDAQ:LANC) has had a rough week with its share price down 14%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. In this article, we decided to focus on Lancaster Colony's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. We've discovered 1 warning sign about Lancaster Colony. View them for free. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Lancaster Colony is: 17% = US$170m ÷ US$996m (Based on the trailing twelve months to March 2025). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.17. View our latest analysis for Lancaster Colony So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To start with, Lancaster Colony's ROE looks acceptable. On comparing with the average industry ROE of 9.4% the company's ROE looks pretty remarkable. However, for some reason, the higher returns aren't reflected in Lancaster Colony's meagre five year net income growth average of 2.8%. That's a bit unexpected from a company which has such a high rate of return. We reckon that a low growth, when returns are quite high could be the result of certain circumstances like low earnings retention or poor allocation of capital. We then compared Lancaster Colony's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 11% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Lancaster Colony's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. The high three-year median payout ratio of 74% (that is, the company retains only 26% of its income) over the past three years for Lancaster Colony suggests that the company's earnings growth was lower as a result of paying out a majority of its earnings. In addition, Lancaster Colony has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 57% over the next three years. Overall, we feel that Lancaster Colony certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return. Investors could have benefitted from the high ROE, had the company been reinvesting more of its earnings. As discussed earlier, the company is retaining a small portion of its profits. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
