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Yahoo
11 hours ago
- Business
- Yahoo
2 Industrials Stocks with Exciting Potential and 1 to Brush Off
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 1.4% over the past six months. This performance was disappointing since the S&P 500 climbed 1.9%. 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 are two industrials stocks we think can generate sustainable market-beating returns and one best left ignored. Market Cap: $129.6 million Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products. Why Do We Steer Clear of RELL? Products and services are facing significant end-market challenges during this cycle as sales have declined by 12.3% annually over the last two years Earnings per share have dipped by 74.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital Richardson Electronics's stock price of $8.99 implies a valuation ratio of 12.9x forward P/E. Check out our free in-depth research report to learn more about why RELL doesn't pass our bar. Market Cap: $833.3 million Primarily serving the oil and gas industry, Aris Water (NYSE:ARIS) is a provider of water handling and recycling solutions. Why Will ARIS Beat the Market? Market share has increased this cycle as its 15.1% annual revenue growth over the last two years was exceptional Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 35% outpaced its revenue gains Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability Aris Water is trading at $25.53 per share, or 17.3x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Market Cap: $5.84 billion Backed by two million square feet of lab testing space, AAON (NASDAQ:AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings. Why Should You Buy AAON? Annual revenue growth of 20.7% over the past five years was outstanding, reflecting market share gains this cycle Earnings growth has trumped its peers over the last five years as its EPS has compounded at 18.2% annually ROIC punches in at 20.7%, illustrating management's expertise in identifying profitable investments At $71.48 per share, AAON trades at 29.7x 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 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
07-05-2025
- Business
- Yahoo
1 Russell 2000 Stock to Target This Week and 2 to Think Twice About
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Picking the right small caps isn't easy, and that's exactly why StockStory exists - to help you focus on the best opportunities. That said, here is one Russell 2000 stock that could deliver strong gains and two best left off your watchlist. Two Industrials Stocks to Sell: Richardson Electronics (RELL) Market Cap: $126 million Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products. Why Do We Avoid RELL? Customers postponed purchases of its products and services this cycle as its revenue declined by 12.3% annually over the last two years Earnings per share have contracted by 74.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.4% for the last five years Richardson Electronics is trading at $9.23 per share, or 12.4x forward P/E. Read our free research report to see why you should think twice about including RELL in your portfolio, it's free. Champion Homes (SKY) Market Cap: $4.95 billion Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America. Why Are We Hesitant About SKY? Flat unit sales over the past two years imply it may need to invest in improvements to get back on track Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 31.5% annually, worse than its revenue Diminishing returns on capital suggest its earlier profit pools are drying up At $84.42 per share, Champion Homes trades at 23.1x forward P/E. Check out our free in-depth research report to learn more about why SKY doesn't pass our bar. One Industrials Stock to Buy: Graham Corporation (GHM) Market Cap: $361.2 million Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors. Why Are We Backing GHM?
Yahoo
09-04-2025
- Business
- Yahoo
Richardson Electronics: Fiscal Q3 Earnings Snapshot
LAFOX, Ill. (AP) — LAFOX, Ill. (AP) — Richardson Electronics Ltd. (RELL) on Wednesday reported a loss of $2.1 million in its fiscal third quarter. On a per-share basis, the Lafox, Illinois-based company said it had a loss of 15 cents. Earnings, adjusted for non-recurring costs, were 11 cents per share. The electronic components and communication products company posted revenue of $53.8 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on RELL at Sign in to access your portfolio
