Latest news with #LloydFrink
Yahoo
5 days ago
- Business
- Yahoo
Zillow (NASDAQ:ZG) Exceeds Q2 Expectations
Online real estate marketplace Zillow (NASDAQ:ZG) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 14.5% year on year to $655 million. The company expects next quarter's revenue to be around $668 million, close to analysts' estimates. Its GAAP profit of $0.01 per share was in line with analysts' consensus estimates. Is now the time to buy Zillow? Find out in our full research report. Zillow (ZG) Q2 CY2025 Highlights: Revenue: $655 million vs analyst estimates of $647.2 million (14.5% year-on-year growth, 1.2% beat) EPS (GAAP): $0.01 vs analyst estimates of $0.02 (in line) Adjusted EBITDA: $155 million vs analyst estimates of $152.4 million (23.7% margin, 1.7% beat) Revenue Guidance for Q3 CY2025 is $668 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q3 CY2025 is $155 million at the midpoint, below analyst estimates of $160.3 million Operating Margin: -1.7%, up from -6.6% in the same quarter last year Market Capitalization: $20.35 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. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Zillow struggled to consistently generate demand over the last five years as its sales dropped at a 7.8% annual rate. This was below our standards and suggests it's a low quality business. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Zillow's annualized revenue growth of 12.3% over the last two years is above its five-year trend, but we were still disappointed by the results. This quarter, Zillow reported year-on-year revenue growth of 14.5%, and its $655 million of revenue exceeded Wall Street's estimates by 1.2%. Company management is currently guiding for a 15% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 14.3% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and implies its newer products and services will catalyze better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Zillow's operating margin has risen over the last 12 months, but it still averaged negative 8.4% over the last two years. This is due to its large expense base and inefficient cost structure. This quarter, Zillow generated a negative 1.7% operating margin. The company's consistent lack of profits raise a flag. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Although Zillow's full-year earnings are still negative, it reduced its losses and improved its EPS by 34.5% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. In Q2, Zillow reported EPS at $0.01, up from negative $0.07 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Zillow's full-year EPS of negative $0.24 will reach break even. Key Takeaways from Zillow's Q2 Results It was good to see Zillow narrowly top analysts' revenue and EBITDA expectations this quarter. On the other hand, its EBITDA guidance for next quarter fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock remained flat at $81.98 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
07-07-2025
- Business
- Yahoo
1 Mid-Cap Stock on Our Buy List and 2 to Avoid
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations. However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one mid-cap stock with a long growth runway and two that could be down big. Market Cap: $17.38 billion 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 Pass on ZG? Products and services aren't resonating with the market as its revenue declined by 7.6% annually over the last five years Poor expense management has led to operating margin losses Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Zillow is trading at $69.85 per share, or 37.3x forward P/E. To fully understand why you should be careful with ZG, check out our full research report (it's free). Market Cap: $14.44 billion As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ:HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness. Why Are We Wary of HOLX? Constant currency revenue growth has disappointed over the past two years and shows demand was soft Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 23.2 percentage points Shrinking returns on capital suggest that increasing competition is eating into the company's profitability At $65.08 per share, Hologic trades at 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than HOLX. Market Cap: $11.1 billion Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE:KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid. Why Is KNSL a Good Business? Impressive 28.4% annual net premiums earned growth over the last two years indicates it's winning market share this cycle Incremental sales significantly boosted profitability as its annual earnings per share growth of 37.6% over the last two years outstripped its revenue performance Annual book value per share growth of 38.8% over the last two years was superb and indicates its capital strength increased during this cycle Kinsale Capital Group's stock price of $476.16 implies a valuation ratio of 5.9x forward P/B. Is now a good time to buy? 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 6 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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.
