Latest news with #MTSI
Yahoo
29-05-2025
- Business
- Yahoo
2 Profitable Stocks with Competitive Advantages and 1 to Steer Clear Of
A company with profits isn't always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up. Trailing 12-Month GAAP Operating Margin: 6.6% Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac. Why Does GM Give Us Pause? Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth Forecasted revenue decline of 5.6% for the upcoming 12 months implies demand will fall off a cliff High input costs result in an inferior gross margin of 12.5% that must be offset through higher volumes At $49.07 per share, General Motors trades at 4.4x forward P/E. Read our free research report to see why you should think twice about including GM in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 11.8% Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. Why Are We Fans of MTSI? Annual revenue growth of 9.9% over the past two years was outstanding, reflecting market share gains this cycle Projected revenue growth of 21.6% for the next 12 months is above its two-year trend, pointing to accelerating demand Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 81.7% annually MACOM's stock price of $123.42 implies a valuation ratio of 32.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Trailing 12-Month GAAP Operating Margin: 22.1% Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services. Why Are We Positive On TH? Healthy operating margin of 32.8% shows it's a well-run company with efficient processes Strong free cash flow margin of 24.5% enables it to reinvest or return capital consistently Returns on capital are growing as management capitalizes on its market opportunities Target Hospitality is trading at $7.49 per share, or 21.9x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
28-05-2025
- Business
- Yahoo
Why M/A-Com (MTSI) is a Top Growth Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time. MACOM Technology Solutions Holdings, Inc. is a provider of power analog semiconductor solutions to varied markets. The company develops and produces analog radio frequency (RF), microwave and millimeter wave semiconductor devices, and components for applications in optical, wireless and satellite networks. MTSI is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 35.2% year-over-year for the current fiscal year, with sales growth of 30.7%. Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.05 to $3.46 per share. MTSI also boasts an average earnings surprise of 0.6%. Looking at cash flow, M/A-Com is expected to report cash flow growth of 3.5% this year; MTSI has generated cash flow growth of 23.9% over the past three to five years. With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, MTSI should be on investors' short lists. 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 MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
17-05-2025
- Business
- Yahoo
Should You Hold MACOM Technology Solutions (MTSI)?
Aristotle Capital Boston, LLC, an investment advisor, released its 'Small Cap Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The volatility observed in 2024 continued into the first quarter of 2025. The Russell 2000 Index experienced volatility in Q1 2025, losing -9.48% after a strong 2024. Due to uncertainty, geopolitical tensions, and a longer rate environment, February and March were challenging. In the first quarter, the strategy delivered a return of -7.34% net of fees (-7.20% gross of fees), outperforming the Russell 2000 Index's -9.48% total return. For more information on the fund's best picks in 2025, please check its top five holdings. In its first-quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) manufactures analog semiconductor solutions for wireless and wireline applications. The one-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 25.94%, and its shares gained 21.50% of their value over the last 52 weeks. On May 15, 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $122.53 per share with a market capitalization of $9.115 billion. Aristotle Capital Small Cap Equity Strategy stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2025 investor letter: "MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), a designer and manufacturer of high-performance semiconductor products, declined along with the broader semiconductor industry during the quarter. We maintain our position, as we believe the company's meaningful exposure to growing demand from Data Center and 5G end market applications along with the integration of recent acquisitions should drive additional shareholder value in periods to come." An aerial view of a semiconductor factory, with its intricate machinery and equipment. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the fourth quarter which was 23 in the previous quarter. In the second quarter of 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported record revenue of $235.9 million, up 8.1% sequentially. While we acknowledge the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) 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 MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and shared Artisan Global Discovery Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. 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
13-05-2025
- Business
- Yahoo
2 Volatile Stocks with Competitive Advantages and 1 to Keep Off Your Radar
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy. These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are two volatile stocks that could reward patient investors and one that might not be worth the risk. Rolling One-Year Beta: 2.99 Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming. Why Is WOOF Not Exciting? Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations Suboptimal cost structure is highlighted by its history of operating losses High net-debt-to-EBITDA ratio of 8× could force the company to raise capital at unfavorable terms if market conditions deteriorate Petco is trading at $3.20 per share, or 52.2x forward P/E. Dive into our free research report to see why there are better opportunities than WOOF. Rolling One-Year Beta: 1.84 Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. Why Are We Fans of MTSI? Market share has increased this cycle as its 9.9% annual revenue growth over the last two years was exceptional Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 21.6% Earnings per share grew by 83.6% annually over the last five years, massively outpacing its peers At $123.69 per share, MACOM trades at 32.7x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Rolling One-Year Beta: 1.22 With low-pressure heating systems as the first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers. Why Is TT a Top Pick? Impressive 11.6% annual revenue growth over the last two years indicates it's winning market share this cycle Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue ROIC punches in at 22.9%, illustrating management's expertise in identifying profitable investments, and its rising returns show it's making even more lucrative bets Trane Technologies's stock price of $417 implies a valuation ratio of 31.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
MACOM (NASDAQ:MTSI) Beats Q1 Sales Targets, Stock Soars
Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 30.2% year on year to $235.9 million. On top of that, next quarter's revenue guidance ($250 million at the midpoint) was surprisingly good and 5.7% above what analysts were expecting. Its non-GAAP profit of $0.85 per share was in line with analysts' consensus estimates. Is now the time to buy MACOM? Find out in our full research report. Revenue: $235.9 million vs analyst estimates of $230 million (30.2% year-on-year growth, 2.6% beat) Adjusted EPS: $0.85 vs analyst estimates of $0.84 (in line) Adjusted EBITDA: $66.61 million vs analyst estimates of $67.8 million (28.2% margin, 1.8% miss) Revenue Guidance for Q2 CY2025 is $250 million at the midpoint, above analyst estimates of $236.6 million Adjusted EPS guidance for Q2 CY2025 is $0.89 at the midpoint, above analyst estimates of $0.87 Operating Margin: 14.8%, up from 8.5% in the same quarter last year Free Cash Flow Margin: 12.9%, up from 7.2% in the same quarter last year Inventory Days Outstanding: 180, up from 179 in the previous quarter Market Capitalization: $8.43 billion Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, MACOM's sales grew at an impressive 12.6% compounded annual growth rate over the last five years. Its growth beat the average semiconductor company and shows its offerings resonate with customers, a helpful starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. MACOM's annualized revenue growth of 9.9% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. This quarter, MACOM reported wonderful year-on-year revenue growth of 30.2%, and its $235.9 million of revenue exceeded Wall Street's estimates by 2.6%. Beyond the beat, this marks 5 straight quarters of growth, implying that MACOM is in the middle of its cycle - a typical upcycle generally lasts 8-10 quarters. Company management is currently guiding for a 31.2% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 16.3% over the next 12 months, an improvement versus the last two years. This projection is commendable and indicates its newer products and services will fuel 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. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, MACOM's DIO came in at 180, which is 23 days above its five-year average, suggesting that the company's inventory has grown to higher levels than we've seen in the past. It was great to see MACOM's revenue guidance for next quarter top analysts' expectations. We were also happy its revenue outperformed Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 7.1% to $121.50 immediately following the results. Sure, MACOM had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
