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Yahoo
24-06-2025
- Business
- Yahoo
1 Volatile Stock with Solid Fundamentals and 2 to Be Wary Of
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren't prepared. At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock with massive upside potential and two best left to the gamblers. Rolling One-Year Beta: 1.32 Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. Why Do We Pass on BIGC? ARR growth averaged a weak 4% over the last year, suggesting that competition is pulling some attention away from its software Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend Suboptimal cost structure is highlighted by its history of operating margin losses At $4.81 per share, BigCommerce trades at 1.1x forward price-to-sales. To fully understand why you should be careful with BIGC, check out our full research report (it's free). Rolling One-Year Beta: 1.12 Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE:GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children. Why Are We Wary of GAP? Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 1.3% Low returns on capital reflect management's struggle to allocate funds effectively Gap's stock price of $21.55 implies a valuation ratio of 9.1x forward P/E. Read our free research report to see why you should think twice about including GAP in your portfolio, it's free. Rolling One-Year Beta: 1.30 Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns. Why Are We Fans of BRZE? Ability to secure long-term commitments with customers is evident in its 23.1% ARR growth over the last year Forecasted revenue growth of 18.5% for the next 12 months indicates its momentum over the last three years is sustainable Operating margin improvement of 8.5 percentage points over the last year demonstrates its ability to scale efficiently Braze is trading at $26.02 per share, or 3.7x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive 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
05-06-2025
- Business
- Yahoo
Braze's (NASDAQ:BRZE) Q1: Beats On Revenue But Stock Drops
Customer engagement software provider Braze (NASDAQ:BRZE) announced better-than-expected revenue in Q1 CY2025, with sales up 19.6% year on year to $162.1 million. Guidance for next quarter's revenue was better than expected at $171.5 million at the midpoint, 1.6% above analysts' estimates. Its non-GAAP profit of $0.07 per share was 50.8% above analysts' consensus estimates. Is now the time to buy Braze? Find out in our full research report. Revenue: $162.1 million vs analyst estimates of $158.6 million (19.6% year-on-year growth, 2.2% beat) Adjusted EPS: $0.07 vs analyst estimates of $0.05 (50.8% beat) Adjusted Operating Income: $2.84 million vs analyst estimates of $781,170 (1.8% margin, significant beat) The company lifted its revenue guidance for the full year to $704 million at the midpoint from $688.5 million, a 2.3% increase Management lowered its full-year Adjusted EPS guidance to $0.16 at the midpoint, a 50% decrease Operating Margin: -24.8%, up from -29.6% in the same quarter last year Free Cash Flow Margin: 14.1%, up from 9.5% in the previous quarter Customers: 2,342, up from 2,296 in the previous quarter Net Revenue Retention Rate: 109%, down from 111% in the previous quarter Billings: $186.6 million at quarter end, up 16.3% year on year Market Capitalization: $3.84 billion 'We are off to a good start in fiscal year 2026, delivering strong revenue growth, profitability, and free cash flow in an ever-changing environment,' said Bill Magnuson, Cofounder and CEO of Braze. Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Braze's 32.3% annualized revenue growth over the last three years was excellent. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis. This quarter, Braze reported year-on-year revenue growth of 19.6%, and its $162.1 million of revenue exceeded Wall Street's estimates by 2.2%. Company management is currently guiding for a 17.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 15.5% over the next 12 months, a deceleration versus the last three years. Still, this projection is healthy and indicates the market is forecasting success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Braze's billings punched in at $186.6 million in Q1, and over the last four quarters, its growth was impressive as it averaged 18.8% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth. One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company's products and services over time. Braze's net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 112% in Q1. This means Braze would've grown its revenue by 11.7% even if it didn't win any new customers over the last 12 months. Despite falling over the last year, Braze still has a good net retention rate, proving that customers are satisfied with its software and getting more value from it over time, which is always great to see. It was encouraging to see Braze's full-year revenue guidance beat analysts' expectations. We were also glad its revenue guidance for next quarter exceeded Wall Street's estimates. On the other hand, its full-year EPS guidance missed and its EPS guidance for next quarter fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 8.7% to $33 immediately following the results. The latest quarter from Braze's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. 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. 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
23-05-2025
- Business
- Yahoo
3 Growth Stocks to Add to Your Roster
Growth boosts valuation multiples, but it doesn't always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022. Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here are three growth stocks with significant upside potential. One-Year Revenue Growth: +25.8% Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns. Why Does BRZE Stand Out? ARR growth averaged 26.8% over the last year, showing customers are willing to take multi-year bets on its offerings Net revenue retention rate of 114% demonstrates its ability to expand within existing accounts through upsells and cross-sells Operating margin improvement of 10.1 percentage points over the last year demonstrates its ability to scale efficiently At $34.86 per share, Braze trades at 5.2x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it's free. One-Year Revenue Growth: +37.7% Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America. Why Is MELI a Good Business? Unique Active Buyers have grown by 19.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features Platform's growing usage and its ability to increase user spending by 16.9% annually showcases its high switching costs Strong free cash flow margin of 30.2% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety MercadoLibre's stock price of $2,520 implies a valuation ratio of 30.3x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it's free. One-Year Revenue Growth: +69.9% Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers. Why Do We Love IONQ? Annual revenue growth of 78.8% over the past two years was outstanding, reflecting market share gains this cycle Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability IonQ is trading at $44.40 per share, or 102.5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
1 Stock Under $50 with Solid Fundamentals and 2 to Keep Off Your Radar
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market. This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with huge potential and two best left ignored. Share Price: $21.63 Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems. Why Should You Dump ALNT? Annual revenue growth of 2.6% over the last two years was below our standards for the industrials sector Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew Allient is trading at $21.63 per share, or 11.9x forward P/E. Check out our free in-depth research report to learn more about why ALNT doesn't pass our bar. Share Price: $49.60 With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases. Why Are We Cautious About BMY? Sizable revenue base leads to growth challenges as its 1.9% annual revenue increases over the last two years fell short of other healthcare companies Sales are projected to tank by 4.4% over the next 12 months as demand evaporates Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Bristol-Myers Squibb's stock price of $49.60 implies a valuation ratio of 7.5x forward P/E. Dive into our free research report to see why there are better opportunities than BMY. Share Price: $31.93 Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns. Why Do We Like BRZE? Customers view its software as mission-critical to their operations as its ARR has averaged 26.8% growth over the last year High switching costs and customer loyalty are evident in its net revenue retention rate of 114% Operating margin improvement of 10.1 percentage points over the last year demonstrates its ability to scale efficiently At $31.93 per share, Braze trades at 4.7x forward price-to-sales. 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 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. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
Braze (BRZE): Buy, Sell, or Hold Post Q4 Earnings?
Since October 2024, Braze has been in a holding pattern, floating around $30.70. Is now the time to buy BRZE? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it's free. Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. Braze's ARR punched in at $615.6 million in Q4, and over the last four quarters, its year-on-year growth averaged 26.8%. This performance was fantastic and shows that customers are willing to take multi-year bets on the company's technology. Its growth also makes Braze a more predictable business, a tailwind for its valuation as investors typically prefer businesses with recurring revenue. While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This metric shows how much revenue remains after accounting for all core expenses – everything from the cost of goods sold to sales and R&D. Over the last year, Braze's expanding sales gave it operating leverage as its margin rose by 10.1 percentage points. Although its operating margin for the trailing 12 months was negative 20.6%, we're confident it can one day reach sustainable profitability. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Braze has shown weak cash profitability over the last year, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 3.3%, subpar for a software business. Braze's positive characteristics outweigh the negatives, but at $30.70 per share (or 4.7× forward price-to-sales), is now the right time to buy the stock? 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 6 Stocks for this week. 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
