Latest news with #RyanVanzo
Yahoo
03-05-2025
- Business
- Yahoo
Think Nvidia Is Expensive? These 3 Charts Might Change Your Mind.
Nvidia is now one of the most valuable companies in the world. But its stock remains cheap according to earnings. Over the past five years, Nvidia (NASDAQ: NVDA) stock has risen in value by nearly 1,500%, making it one of the most valuable companies in the world. Think it's too late to benefit as an investor? Think again. According to the charts below, shares remain very attractive for long-term investors. On a price-to-sales basis, Nvidia shares look outrageously expensive. Shares trade at 21 times sales despite a market cap of around $3 trillion. Few companies in history this large have traded at such a high premium. But because Nvidia is a profitable business, we can also look at shares on a price-to-earnings basis. From this perspective, shares don't look nearly as expensive. And when it comes to shareholder returns, profits matter a lot more than sales. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Right now, the S&P 500 as a whole trades at 28 times earnings. Nvidia stock trades at a 35% premium to the market overall -- not bad for a highly profitable business at the center of one of the biggest growth markets in history: artificial intelligence (AI). But because its sales are still growing at 50% or more per year, Nvidia stock trades at just 25 times forward earnings -- that is, based on what analysts expect the company to earn over the next 12 months. The S&P 500's forward price-to-earnings ratio, meanwhile, is around 20, meaning Nvidia trades at just a 25% premium to the market on a forward basis. As you can see, Nvidia's fast growth should significantly reduce the stock's valuation premium over the next 12 months. And given the growth in AI demand, this premium should shrink for many years to come. Eventually, Nvidia shares could trade at a discount to the market based on today's prices. That will require patience to play out, but one thing is clear: From an earnings perspective, Nvidia is hardly overvalued. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $296,928!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,933!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $623,685!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of April 28, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Think Nvidia Is Expensive? These 3 Charts Might Change Your Mind. was originally published by The Motley Fool
Yahoo
03-05-2025
- Business
- Yahoo
Think SoundHound AI Is Expensive? These 3 Charts Might Change Your Mind.
SoundHound AI is growing rapidly. This high growth could make shares cheap long-term. Expectations for growth this year are soaring for SoundHound AI (NASDAQ: SOUN). Last year, analysts were anticipating just 30% revenue growth. This year, analysts believe sales could nearly double. Some investors think shares are overly expensive at 36 times sales. But the charts below paint a different picture. As a pure-play company betting on voice-driven artificial intelligence (AI) applications, SoundHound AI should benefit from a rising tide in AI spending. By 2032, analysts estimate the voice AI market in general could be worth more than $40 billion. For comparison, SoundHound AI's revenue last year totaled just $85 million. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Of course, even high-growth companies can be overvalued. That certainly might be the case with SoundHound AI given shares trade at 36.5 times trailing sales. But this year, analysts believe sales should just by around 96%. Next year's estimates are much lower, but sales are still expected to grow by nearly 20%. SoundHound AI's end markets, meanwhile, are expected to grow by roughly 30% annually. For the next five to 10 years, SoundHound AI has an opportunity to grow sales at a double-digit pace. At times, annual sales growth might reach the triple digits. When looking ahead, the initial 36.5 times sales ratio doesn't look nearly as expensive. Even just factoring in the next 12 months of expected growth, SoundHound AI trades at just 21.9 times forward sales. Add in a few more years of 20% to 30% top-line growth and SoundHound AI's valuation starts to look fairly reasonable. There are a lot of risks to this story. SoundHound AI's relatively small research and development budget might hinder it long-term versus better-financed big tech competitors. And over the short term, fluctuating expectations for growth could have huge effects on the stock price. But if you're willing to look many years down the road and remain patient, SoundHound AI shares aren't as expensive as they seem. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoundHound AI wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Think SoundHound AI Is Expensive? These 3 Charts Might Change Your Mind. was originally published by The Motley Fool
Yahoo
28-04-2025
- Automotive
- Yahoo
Prediction: Lucid Group Will Soar in 2026. Here's 1 Reason Why.
It's been a mixed year for Lucid Group (NASDAQ: LCID). Shares of this electric vehicle (EV) stock have fallen alongside competitors including Tesla and Rivian Automotive, yet analyst expectations for Lucid's sales growth have surged. Right now, Wall Street experts expect the company to nearly double sales in 2025. This could be your opportunity to buy into a high-growth stock at a discount. But if you're really looking for big growth potential, pay attention to Lucid's growth prospects starting in 2026. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Lucid stock is down 17% so far in 2025, and shares are trading at just 7.4 times trailing sales. That's a discount to competitors like Tesla, but a premium to other EV makers like Rivian. Lucid's relative premium to Rivian makes a lot of sense. The recent introduction of Lucid's Gravity SUV platform is expected to help sales nearly double this year. Rivian, meanwhile, isn't expected to release any new models this year. Thanks to this expected sales growth, Lucid stock trades at just 5 times forward sales. But looking even further ahead, there's reason to believe that Lucid will hit another sales inflection point in 2026 due to one major event. Last year, it was revealed that Lucid expects to begin production on three new more affordable models, all of which should cost under $50,000. At the time, this timeline seemed aggressive, especially considering its Gravity SUV had yet to be released. Last week, however, Derek Jenkins, a senior vice president at Lucid, confirmed that the company is currently "on track" to begin production of an affordable SUV model in 2026, though he noted that there are "a lot of crazy things going on in the world that can affect that [timeline]." This new Lucid model is expected to compete with Tesla's existing Model Y and Rivian's anticipated R2 midsize SUV. If the company's timeline remains intact, it could see another huge spike in sales growth next year. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Prediction: Lucid Group Will Soar in 2026. Here's 1 Reason Why. was originally published by The Motley Fool
Yahoo
28-04-2025
- Automotive
- Yahoo
Every Rivian Investor Should Keep an Eye on These 2 Numbers
Rivian Automotive (NASDAQ: RIVN) shares trade at a significant discount to peers such as Lucid Group and Tesla. Yet the electric vehicle (EV) maker's sales have huge growth potential, with a sales inflection point likely occurring within the next 12 months. But before you jump into this promising EV stock, make sure you understand the two numbers discussed below. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » As you can see in the charts below, Rivian shares now trade at just 2.2 times sales -- a considerable discount to competitors like Tesla and Lucid Group. Yet, the company is expecting to release three new mass market vehicles next year, with production slated for early 2026. These vehicles are expected to be priced under $50,000, crossing a critical price threshold that will make Rivian's vehicles more affordable to millions of new buyers. Right now, its two existing models are priced at $70,000 and above. When Tesla released its mass market vehicles -- the Model 3 and the Model Y -- its sales doubled or tripled in the years that followed. The same could prove true for Rivian. But why, then, are Rivian's shares priced at such a discount? Looking 12 months down the road, Rivian's sales base is actually expected to remain roughly flat, with shares trading at a similar 2.5 times forward sales. So even based on future growth rates, shares are deservedly cheap. But these estimates only include the next 12 months. Rivian's new models are expected to debut just before that time horizon ends, with at least another few quarters needed to see sales reach their full potential. Right now, the market isn't pricing in much growth for Rivian stock because this growth is expected to occur beyond most analysts' forecasts. That's why investors should keep an eye on both Rivian's price-to-sales ratio and its full-year growth estimates. Once those estimates start to include sales from Rivian's mass market vehicles, we should see the stock's valuation pick up relative to Lucid's and Tesla's valuations. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Every Rivian Investor Should Keep an Eye on These 2 Numbers was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
27-04-2025
- Automotive
- Yahoo
Every Lucid Group Investor Should Keep an Eye on These 3 Numbers
Lucid Group (NASDAQ: LCID) is expected to have a terrific year when it comes to sales growth. Analysts expect revenue to nearly double in 2025. And with several new mass market models on the way, we could see this growth trajectory persist for years to come. It will be critical to track Lucid's actual revenue. But that's not the only number I'm keeping an eye on. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Due to the recent introduction of its Gravity SUV platform, as well as the future launch of more affordable electric vehicles, Lucid is experiencing a phase of heavy top-line growth. That's great news for investors. But as a company yet to reach profitability, this growth comes at a cost. Lucid's cash balance is far below that of peers like Tesla and Rivian. Its gross margins, meanwhile, remain deeply negative, meaning that it loses money on every car it sells. Its total number of shares outstanding has also ticked up in recent quarters, suggesting that the company is turning to dilution in order to remain solvent. There's no doubt that Lucid is a promising company when it comes to sales growth. But it's running out of time when it comes to liquidity and access to capital. The company generated negative free cash flow of $3 billion last year, with that cash burn accelerating toward the end of the year. Expect Lucid to tap markets again this year for additional funding, diluting shareholders in the process. If investors don't see gross margins pick up considerably -- something both Rivian and Tesla have been able to do over the years -- they may see Lucid dilute shareholders to fund its aggressive revenue growth. The end result may be a poor performance for the stock price, even if sales do grow immensely in the years to come. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Every Lucid Group Investor Should Keep an Eye on These 3 Numbers was originally published by The Motley Fool Sign in to access your portfolio
