Latest news with #NASDAQGS
Yahoo
10 hours ago
- Business
- Yahoo
1 Bank Stock to Research Further and 2 to Avoid
Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. But concerns about loan losses and tightening regulations have tempered enthusiasm, and over the past six months, the banking industry has pulled back by 10.6%. This performance was particularly disheartening since the S&P 500 held its ground. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here is one bank stock poised to generate sustainable market-beating returns and two we're steering clear of. Market Cap: $3.47 billion Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE:RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast. Why Do We Think Twice About RNST? Sales were flat over the last two years, indicating it's failed to expand this cycle Net interest income trends were unexciting over the last four years as its 5% annual growth was below the typical bank company Forecasted tangible book value per share decline of 9.9% for the upcoming 12 months implies profitability will deteriorate significantly Renasant's stock price of $36.51 implies a valuation ratio of 0.9x forward P/B. Check out our free in-depth research report to learn more about why RNST doesn't pass our bar. Market Cap: $1.60 billion Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ:NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services. Why Should You Dump NWBI? Annual net interest income growth of 3.2% over the last four years was below our standards for the bank sector Capital trends were unexciting over the last five years as its 1.4% annual tangible book value per share growth was below the typical bank company Estimated tangible book value per share decline of 7.1% for the next 12 months implies a challenging profitability environment At $12.60 per share, Northwest Bancshares trades at 1x forward P/B. Read our free research report to see why you should think twice about including NWBI in your portfolio, it's free. Market Cap: $8.24 billion Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management. Why Are We Positive On WTFC? Market share has increased this cycle as its 18.1% annual net interest income growth over the last four years was exceptional Earnings per share grew by 7.6% annually over the last two years and trumped its peers Balance sheet strength has increased this cycle as its 9.5% annual tangible book value per share growth over the last five years was exceptional Wintrust Financial is trading at $122.64 per share, or 1.2x forward P/B. Is now a good time to buy? 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 Exlservice (+354% 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
11 hours ago
- Business
- Yahoo
CDW Q1 Earnings Call: Client Device Demand and Services Growth Shape Results Amid Tariff Uncertainty
IT solutions provider CDW (NASDAQGS:CDW) announced better-than-expected revenue in Q1 CY2025, with sales up 6.7% year on year to $5.2 billion. Its non-GAAP profit of $2.15 per share was 9.5% above analysts' consensus estimates. Is now the time to buy CDW? Find out in our full research report (it's free). Revenue: $5.2 billion vs analyst estimates of $4.94 billion (6.7% year-on-year growth, 5.3% beat) Adjusted EPS: $2.15 vs analyst estimates of $1.96 (9.5% beat) Operating Margin: 7%, in line with the same quarter last year Market Capitalization: $23.54 billion CDW's first quarter results were shaped by a notable surge in client device sales and continued strength across its services and software segments. CEO Christine Leahy emphasized that customers remained focused on mission-critical projects, with particular attention to operating efficiency and expense management. The company saw broad-based growth across all customer end-markets, including commercial, healthcare, education, and international operations. Healthcare emerged as a standout, benefiting from CDW's investments in industry expertise and transformation centers. While hardware—especially client devices—drove much of the quarter's top-line growth, Leahy highlighted a balanced performance across hardware, software, and services, underpinned by the company's full-stack solutions approach. Looking ahead, CDW management maintains a cautious outlook for the remainder of 2025, citing ongoing economic uncertainty and the potential impact of tariff-related price increases. Leahy stated, 'We are maintaining our 2025 outlook, which calls for US IT market growth to be in the low-single-digits on a customer spend basis with a CDW growth premium of 200 to 300 basis points.' While the company anticipates continued healthy commercial demand, it expects some moderation as customers may have pulled forward purchases to get ahead of tariffs. CFO Albert Miralles noted that government and education channels could face friction as they adjust to new policy priorities and efficiency initiatives. CDW's guidance incorporates these factors, along with a measured approach to hiring and expense management, as the company balances growth opportunities with a prudent view of the macro environment. CDW's management attributed first quarter momentum to client device refresh cycles, ongoing investments in cloud and security, and a flexible approach to pricing amid tariff uncertainty. Client device refresh demand: Management pointed to a significant uptick in client device sales, attributed to the need for hardware refreshes, the upcoming Windows 10 expiration, and efforts by customers to purchase ahead of possible tariff-driven price increases. This trend was especially strong in the education and commercial segments, with education customers pulling forward spending to mitigate anticipated cost increases. Services and software growth: CDW reported high-single-digit or better growth across hardware, software, and services. Services revenue, which includes managed and professional offerings, rose by 14%, reflecting customer demand for help with cost optimization and mission-critical IT projects. Management highlighted that investments in areas like cloud adoption and cybersecurity were paying off across verticals. Healthcare market outperformance: The healthcare channel delivered 20% sales growth, benefiting from CDW's targeted investments in industry expertise and go-to-market strategies. Management cited accelerated cloud adoption, increased security needs, and improved engagement with transformation centers as key drivers. Tariff and pricing dynamics: The prospect of new tariffs led to some customers expediting purchases, contributing approximately two percentage points to quarterly sales growth. Management reported an orderly pricing environment, with confidence in the company's ability to pass on cost increases to customers due to its "cost plus" pricing model, though they acknowledged that higher prices could lead to customers buying fewer units. Balanced hiring and expense discipline: While maintaining investments in strategic hires for technology and sales roles, the company is exercising prudence in overall hiring and expenses. CFO Albert Miralles noted that operating leverage in Q1 was partly due to the pull forward in demand, and future quarters are expected to see more modest leverage as growth normalizes. CDW's outlook for 2025 is shaped by customer spending patterns, channel-specific headwinds, and the potential impact of tariffs on purchasing behavior. Tariff-related demand shifts: Management expects that the pull forward of device purchases in response to tariff uncertainty will temper growth in subsequent quarters, particularly in education and commercial channels. CFO Albert Miralles noted that this dynamic is incorporated into the seasonal outlook, and the company does not expect a repeat of Q1's elevated demand in these segments for the rest of the year. Channel-specific challenges: The company anticipates friction in the government and education segments due to evolving policy priorities and budget uncertainties. Management's outlook assumes that these headwinds will persist for several quarters, potentially muting overall growth even as other channels remain healthy. Expense and margin management: CDW plans to maintain stable gross margins and exercise disciplined expense management. While operating leverage was strong in Q1, management expects it to moderate as sales growth slows. They also plan to continue investing in strategic hires and technology, while closely monitoring wage inflation and macroeconomic risks. In upcoming quarters, the StockStory team will be closely monitoring (1) the extent to which commercial and education demand normalizes following Q1's pull forward, (2) the impact of tariffs on purchasing behavior and margin stability, and (3) the pace of recovery in government and international segments facing policy and economic headwinds. Execution on strategic investments in services and cloud will also be key to sustaining growth. CDW currently trades at a forward P/E ratio of 18.3×. Should you double down or take your chips? 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
02-06-2025
- Business
- Yahoo
At US$242, Is It Time To Put Broadcom Inc. (NASDAQ:AVGO) On Your Watch List?
Broadcom Inc. (NASDAQ:AVGO) saw a significant share price rise of 65% in the past couple of months on the NASDAQGS. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Let's take a look at Broadcom's outlook and value based on the most recent financial data to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. According to our valuation model, the stock is currently overvalued by about 34%, trading at US$242 compared to our intrinsic value of $180.82. Not the best news for investors looking to buy! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Broadcom's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. View our latest analysis for Broadcom Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Broadcom's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? AVGO's optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe AVGO should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping tabs on AVGO for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the optimistic prospect is encouraging for AVGO, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Case in point: We've spotted 3 warning signs for Broadcom you should be aware of. If you are no longer interested in Broadcom, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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
Yahoo
02-06-2025
- Business
- Yahoo
Is There Now An Opportunity In Woodward, Inc. (NASDAQ:WWD)?
Today we're going to take a look at the well-established Woodward, Inc. (NASDAQ:WWD). The company's stock received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Today we will analyse the most recent data on Woodward's outlook and valuation to see if the opportunity still exists. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The stock seems fairly valued at the moment according to our valuation model. It's trading around 8.27% above our intrinsic value, which means if you buy Woodward today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $199.80, then there isn't really any room for the share price grow beyond what it's currently trading. So, is there another chance to buy low in the future? Given that Woodward's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Woodward Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Woodward's earnings over the next few years are expected to increase by 35%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? WWD's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping an eye on WWD, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Diving deeper into the forecasts for Woodward mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Woodward, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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
Yahoo
02-06-2025
- Business
- Yahoo
What Is AAON, Inc.'s (NASDAQ:AAON) Share Price Doing?
AAON, Inc. (NASDAQ:AAON), is not the largest company out there, but it saw a significant share price rise of 32% in the past couple of months on the NASDAQGS. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Let's take a look at AAON's outlook and value based on the most recent financial data to see if the opportunity still exists. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. AAON appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that AAON's ratio of 49.33x is above its peer average of 21.35x, which suggests the stock is trading at a higher price compared to the Building industry. But, is there another opportunity to buy low in the future? Given that AAON's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for AAON Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. In the upcoming year, AAON's earnings are expected to increase by 22%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? AAON's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe AAON should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on AAON for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for AAON, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. If you'd like to know more about AAON as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 2 warning signs for AAON you should be mindful of and 1 of these makes us a bit uncomfortable. If you are no longer interested in AAON, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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
