Latest news with #LloydFrink
Yahoo
08-05-2025
- Business
- Yahoo
Zillow's (NASDAQ:ZG) Q1: Beats On Revenue But Stock Drops
Online real estate marketplace Zillow (NASDAQ:ZG) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 13% year on year to $598 million. Its GAAP profit of $0.03 per share was significantly above analysts' consensus estimates. Is now the time to buy Zillow? Find out in our full research report. Zillow (ZG) Q1 CY2025 Highlights: Revenue: $598 million vs analyst estimates of $589.9 million (13% year-on-year growth, 1.4% beat) EPS (GAAP): $0.03 vs analyst estimates of -$0.02 (significant beat) Adjusted EBITDA: $153 million vs analyst estimates of $138.5 million (25.6% margin, 10.5% beat) Operating Margin: -1.5%, up from -8.5% in the same quarter last year Free Cash Flow Margin: 11.4%, up from 7.8% in the same quarter last year Market Capitalization: $16.15 billion Company Overview Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace. Sales Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Zillow's demand was weak and its revenue declined by 7.6% per year. This was below our standards and suggests it's a lower quality business. Zillow Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Zillow's annualized revenue growth of 10.4% over the last two years is above its five-year trend, but we were still disappointed by the results. Zillow Year-On-Year Revenue Growth This quarter, Zillow reported year-on-year revenue growth of 13%, and its $598 million of revenue exceeded Wall Street's estimates by 1.4%. Looking ahead, sell-side analysts expect revenue to grow 14.4% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and suggests its newer products and services will spur better top-line performance. 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. Operating Margin Zillow's operating margin has been trending up over the last 12 months, but it still averaged negative 10% over the last two years. This is due to its large expense base and inefficient cost structure.
Yahoo
02-05-2025
- Business
- Yahoo
3 Unprofitable Stocks in the Doghouse
Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth. A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here are three unprofitable companiesto avoid and some better opportunities instead. Trailing 12-Month GAAP Operating Margin: -8.8% Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace. Why Are We Hesitant About ZG? Products and services have few die-hard fans as sales have declined by 4% annually over the last five years Persistent operating losses suggest the business manages its expenses poorly Negative returns on capital show that some of its growth strategies have backfired At $65.75 per share, Zillow trades at 34.2x forward P/E. Dive into our free research report to see why there are better opportunities than ZG. Trailing 12-Month GAAP Operating Margin: -14.1% Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls. Why Does SG Fall Short? Historical operating losses point to an inefficient cost structure Negative free cash flow raises questions about the return timeline for its investments Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Sweetgreen is trading at $19.41 per share, or 65.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SG doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: -2.3% Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats. Why Does MCFT Give Us Pause? Performance surrounding its boats sold has lagged its peers Estimated sales growth of 6.2% for the next 12 months is soft and implies weaker demand Sales were less profitable over the last five years as its earnings per share fell by 26.6% annually, worse than its revenue declines MasterCraft's stock price of $16.81 implies a valuation ratio of 14.4x forward P/E. To fully understand why you should be careful with MCFT, check out 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 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
27-04-2025
- Business
- Yahoo
3 Cash-Producing Stocks with Questionable Fundamentals
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. Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are three cash-producing companies to avoid and some better opportunities instead. Trailing 12-Month Free Cash Flow Margin: 1.3% Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE:FL) is a specialty retailer that sells athletic footwear, clothing, and accessories. Why Are We Out on FL? Ongoing store closures and lackluster same-store sales indicate sluggish demand and a focus on consolidation Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand 6× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly Foot Locker is trading at $11.80 per share, or 6.8x forward price-to-earnings. Read our free research report to see why you should think twice about including FL in your portfolio, it's free. Trailing 12-Month Free Cash Flow Margin: 12.7% Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace. Why Do We Think Twice About ZG? Products and services have few die-hard fans as sales have declined by 4% annually over the last five years Suboptimal cost structure is highlighted by its history of operating losses Negative returns on capital show management lost money while trying to expand the business Zillow's stock price of $64.87 implies a valuation ratio of 33.7x forward price-to-earnings. If you're considering ZG for your portfolio, see our FREE research report to learn more. Trailing 12-Month Free Cash Flow Margin: 11.9% Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE:OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines. Why Should You Sell OGN? Annual sales declines of 3.6% for the past five years show its products and services struggled to connect with the market during this cycle Adjusted operating margin declined by 17.3 percentage points over the last five years as its sales cratered Earnings per share have contracted by 19.8% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance At $12.20 per share, Organon trades at 3x forward price-to-earnings. Check out our free in-depth research report to learn more about why OGN doesn't pass our bar. 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 Growth Stocks for this month. 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.
Yahoo
10-04-2025
- Business
- Yahoo
Real Estate Services Stocks Q4 Highlights: eXp World (NASDAQ:EXPI)
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the real estate services industry, including eXp World (NASDAQ:EXPI) and its peers. Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage. The 13 real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 5.5% while next quarter's revenue guidance was 1.2% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.9% since the latest earnings results. Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage. eXp World reported revenues of $1.10 billion, up 11.9% year on year. This print exceeded analysts' expectations by 6.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts' EBITDA estimates. 'At eXp, we redefine what's possible in real estate, with our agent-centric platform offering unlimited growth opportunities for agents,' said Glenn Sanford, eXp World Holdings Founder, Chairman and CEO. The stock is down 18% since reporting and currently trades at $9.32. Is now the time to buy eXp World? Access our full analysis of the earnings results here, it's free. Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy. The Real Brokerage reported revenues of $350.6 million, up 93.4% year on year, outperforming analysts' expectations by 16.8%. The business had an incredible quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The Real Brokerage delivered the fastest revenue growth among its peers. The stock is down 11.6% since reporting. It currently trades at $4.38. Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it's free. Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions. Offerpad reported revenues of $174.3 million, down 27.5% year on year, in line with analysts' expectations. It was a softer quarter as it posted a significant miss of analysts' adjusted operating income estimates. Offerpad delivered the slowest revenue growth in the group. As expected, the stock is down 28.1% since the results and currently trades at $1.56. Read our full analysis of Offerpad's results here. Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace. Zillow reported revenues of $554 million, up 16.9% year on year. This number topped analysts' expectations by 1.1%. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts' adjusted operating income estimates. The stock is down 24.7% since reporting and currently trades at $63.10. Read our full, actionable report on Zillow here, it's free. Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world. CBRE reported revenues of $10.4 billion, up 16.2% year on year. This result surpassed analysts' expectations by 1.2%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts' adjusted operating income estimates but a miss of analysts' Advisory Services revenue estimates. The stock is down 15.8% since reporting and currently trades at $118.50. Read our full, actionable report on CBRE here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
09-04-2025
- Business
- Yahoo
Q4 Earnings Highs And Lows: Zillow (NASDAQ:ZG) Vs The Rest Of The Real Estate Services Stocks
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the real estate services industry, including Zillow (NASDAQ:ZG) and its peers. Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage. The 13 real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 5.5% while next quarter's revenue guidance was 1.2% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22.5% since the latest earnings results. Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace. Zillow reported revenues of $554 million, up 16.9% year on year. This print exceeded analysts' expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts' adjusted operating income estimates. The stock is down 27.8% since reporting and currently trades at $60.54. Read our full report on Zillow here, it's free. Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy. The Real Brokerage reported revenues of $350.6 million, up 93.4% year on year, outperforming analysts' expectations by 16.8%. The business had an incredible quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The Real Brokerage delivered the fastest revenue growth among its peers. The stock is down 13.2% since reporting. It currently trades at $4.30. Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it's free. Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions. Offerpad reported revenues of $174.3 million, down 27.5% year on year, in line with analysts' expectations. It was a softer quarter as it posted a significant miss of analysts' adjusted operating income estimates. Offerpad delivered the slowest revenue growth in the group. As expected, the stock is down 35% since the results and currently trades at $1.41. Read our full analysis of Offerpad's results here. Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform. Redfin reported revenues of $244.3 million, up 12% year on year. This number surpassed analysts' expectations by 0.7%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts' EPS estimates but a significant miss of analysts' EBITDA estimates. The stock is up 14.1% since reporting and currently trades at $8.72. Read our full, actionable report on Redfin here, it's free. Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services. JLL reported revenues of $6.81 billion, up 15.8% year on year. This print topped analysts' expectations by 1.4%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts' EPS estimates but a miss of analysts' Capital Markets revenue estimates. The stock is down 25.6% since reporting and currently trades at $209.50. Read our full, actionable report on JLL here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
