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Yahoo
28-05-2025
- Business
- Yahoo
1 Safe-and-Steady Stock to Research Further and 2 to Be Wary Of
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up. Rolling One-Year Beta: 0.85 Started in 1998 as a platform to broadcast press conferences, ON24's (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers. Why Are We Out on ONTF? Offerings couldn't generate interest over the last year as its billings have averaged 3.3% declines Forecasted revenue decline of 6% for the upcoming 12 months implies demand will fall even further Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue At $5.71 per share, ON24 trades at 1.7x forward price-to-sales. If you're considering ONTF for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.36 Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE:LMT) specializes in defense, space, homeland security, and information technology products. Why Do We Think LMT Will Underperform? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.3% for the last five years Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew Waning returns on capital imply its previous profit engines are losing steam Lockheed Martin's stock price of $476.75 implies a valuation ratio of 16.9x forward P/E. Dive into our free research report to see why there are better opportunities than LMT. Rolling One-Year Beta: 0.23 Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts. Why Does CACI Stand Out? Demand is greater than supply as the company's 13% average backlog growth over the past two years shows it's securing new contracts and accumulating more orders than it can fulfill Projected revenue growth of 9.2% for the next 12 months suggests its momentum from the last two years will persist Share repurchases over the last two years enabled its annual earnings per share growth of 16.9% to outpace its revenue gains CACI is trading at $467.27 per share, or 17.6x forward P/E. Is now the right time to buy? See for yourself 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 5 Growth Stocks for this month. 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 for free.
Yahoo
23-05-2025
- Business
- Yahoo
1 Unpopular Stock that Deserves a Second Chance and 2 to Be Wary Of
When Wall Street turns bearish on a stock, it's worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory. Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company's long-term prospects. That said, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed. Consensus Price Target: $5.33 (-2.3% implied return) Started in 1998 as a platform to broadcast press conferences, ON24's (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers. Why Do We Pass on ONTF? Offerings couldn't generate interest over the last year as its billings have averaged 3.3% declines Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment Extended payback periods on sales investments suggest the company's platform isn't resonating enough to drive efficient sales conversions ON24's stock price of $5.46 implies a valuation ratio of 1.7x forward price-to-sales. To fully understand why you should be careful with ONTF, check out our full research report (it's free). Consensus Price Target: $1,245 (9.6% implied return) With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE:MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail. Why Are We Cautious About MTD? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Anticipated sales growth of 3.4% for the next year implies demand will be shaky Static adjusted operating margin over the last two years shows it couldn't become more efficient At $1,136 per share, Mettler-Toledo trades at 26.1x forward P/E. Dive into our free research report to see why there are better opportunities than MTD. Consensus Price Target: $1,054 (3.4% implied return) Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities. Why Is COST a Top Pick? Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.4% growth over the past two years Enormous revenue base of $264.1 billion compensates for its low gross margin and provides significant leverage in supplier negotiations ROIC punches in at 33.5%, illustrating management's expertise in identifying profitable investments Costco is trading at $1,020 per share, or 53.5x forward P/E. Is now a good time to buy? See for yourself in 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
28-04-2025
- Business
- Yahoo
1 Cash-Producing Stock Worth Your Attention and 2 to Think Twice About
A company that generates cash isn't automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand. Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 1.7% Started in 1998 as a platform to broadcast press conferences, ON24's (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers. Why Should You Sell ONTF? Products, pricing, or go-to-market strategy need some adjustments as its billings have averaged 8.1% declines over the last year Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 91% net revenue retention rate Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue ON24's stock price of $5 implies a valuation ratio of 1.4x forward price-to-sales. To fully understand why you should be careful with ONTF, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: 16.7% With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE:TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide. Why Does TFX Fall Short? Weak constant currency growth over the past two years indicates challenges in maintaining its market share Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Eroding returns on capital from an already low base indicate that management's recent investments are destroying value At $135.49 per share, Teleflex trades at 8.9x forward price-to-earnings. Check out our free in-depth research report to learn more about why TFX doesn't pass our bar. Trailing 12-Month Free Cash Flow Margin: 17.4% Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE:CL) is a consumer products company that focuses on personal, household, and pet products. Why Do We Watch CL? Large revenue base of $19.95 billion and strong customer awareness make retailers more likely to stock its products Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it's making even more lucrative bets Colgate-Palmolive is trading at $94.08 per share, or 25x forward price-to-earnings. Is now the right time to buy? Find out in 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 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
ON24 (ONTF): Buy, Sell, or Hold Post Q4 Earnings?
ON24 trades at $4.99 per share and has moved almost in lockstep with the market over the last six months. The stock has lost 17.9% while the S&P 500 is down 13.5%. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in ON24, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even though the stock has become cheaper, we're swiping left on ON24 for now. Here are three reasons why we avoid ONTF and a stock we'd rather own. Started in 1998 as a platform to broadcast press conferences, ON24's (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers. 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. ON24's billings came in at $39.74 million in Q4, and it averaged 8.1% year-on-year declines over the last four quarters. This performance was underwhelming and shows the company faced challenges in acquiring and retaining customers. It also suggests there may be increasing competition or market saturation. 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. ON24's net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 91% in Q4. This means ON24's revenue would've decreased by 9% over the last 12 months if it didn't win any new customers. ON24 has a poor net retention rate, warning us that its customers are churning and that its products might not live up to expectations. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. ON24's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a highly competitive environment where there is little differentiation between ON24's products and its peers. We see the value of companies addressing major business pain points, but in the case of ON24, we're out. Following the recent decline, the stock trades at 1.4× forward price-to-sales (or $4.99 per share). While this valuation is reasonable, we don't see a big opportunity at the moment. There are better stocks to buy right now. Let us point you toward the most dominant software business in the world. 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 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. Sign in to access your portfolio
