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Yahoo
2 days ago
- Business
- Yahoo
1 Safe-and-Steady Stock on Our Watchlist and 2 to Question
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies. Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need. Rolling One-Year Beta: 0.22 Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods. Why Should You Dump MED? Products aren't resonating with the market as its revenue declined by 30.3% annually over the last three years Operating margin declined by 10.2 percentage points over the last year as its sales cratered Earnings per share have contracted by 27% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance Medifast's stock price of $13.16 implies a valuation ratio of 0.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MED. Rolling One-Year Beta: 0.77 Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions. Why Are We Out on TILE? Sales stagnated over the last five years and signal the need for new growth strategies Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 3.5% annually Below-average returns on capital indicate management struggled to find compelling investment opportunities At $20.97 per share, Interface trades at 7.6x forward EV-to-EBITDA. If you're considering TILE for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.74 Often located in suburban or semi-rural shopping centers, Ollie's Bargain Outlet (NASDAQ:OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts. Why Is OLLI on Our Radar? Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth Same-store sales growth averaged 4.1% over the past two years, showing it's bringing new and repeat shoppers into its stores Market share is on track to rise over the next 12 months as its 14.1% projected revenue growth implies demand will accelerate from its six-year trend Ollie's is trading at $112.16 per share, or 29.7x forward P/E. 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-micro-cap company Tecnoglass (+1,754% 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. 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
02-06-2025
- Business
- Yahoo
4 Discretionary Stocks to Buy as Inflation Continues to Cool
Inflation is finally showing signs of cooling, and consumer spending is increasing. The Commerce Department reported on Friday that inflation rose only slightly in April, a positive sign for the economy after it contracted in the first quarter of 2025. President Donald Trump's tariffs, which were announced in early April, have been put on hold as trade negotiations with several countries are ongoing. Also, consumer confidence rebounded in May, indicating that people now have more faith in the economy's prospects. Given the positive sentiment, it would be prudent to invest in consumer discretionary stocks such as Interface, Inc. TILE, Kontoor Brands, Inc. KTB, GDEV Inc. GDEV and Netflix, Inc. NFLX. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Commerce Department reported that in April, the personal consumption expenditure (PCE) index, the Federal Reserve's key inflation gauge, rose 0.1% sequentially and 2.1% from year-ago levels, after increasing 2.3% in March. Core PCE, which strips out the volatile food and energy components, rose 0.1% month over month in April and 2.5% from the year-ago levels, the smallest advance since March 2021. The Federal Reserve tracks PCE for its 2% inflation target. April's reading suggests inflation is on track to meet the Fed's target. Consumer spending slowed in April but still increased 0.2% month over month. Personal income also rose 0.8% sequentially in April. Inflation has been showing signs of cooling over the past few months. However, sweeping tariffs announced by Trump in early April rattled Wall Street as concerns grew that higher import duties could trigger inflation and push the economy into a recession. However, those fears have subsided over the past month after the tariffs were temporarily paused and the United States initiated trade talks with several countries, including China. The White House also announced a trade deal with the UK last month. Slowing inflation and fading trade war fears have raised hopes that the Federal Reserve could soon resume its rate cuts. Also, higher personal income and consumer spending signal a resilient economy. Given the positive sentiment, it would be ideal to invest in consumer discretionary stocks. Interface, Inc. is the world's largest manufacturer of modular carpets, which it markets under the Interface and FLOR brands. TILE is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value. Interface's expected earnings growth rate for the current year is 8.2%. The Zacks Consensus Estimate for current-year earnings has improved by 2.6% over the past 60 days. TILE presently has a Zacks Rank #2. Kontoor Brands, Inc. is an apparel company. KTB designs, manufactures and distributes products. KTB's brand consists of Wrangler, Lee and Rock & Republic. Kontoor Brands Inc. is based in Greensboro. Kontoor Brands' expected earnings growth rate for the current year is 9.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 60 days. KTB currently carries a Zacks Rank #2. GDEV Inc. is a gaming and entertainment powerhouse, focused on growing and enhancing its portfolio of studios. GDEV's diverse range of subsidiaries, including Nexters, Cubic Games, Dragon Machines and more. GDEV's expected earnings growth rate for the current year is 58%. The Zacks Consensus Estimate for current-year earnings has improved 21.8% over the past 60 days. GDEV currently carries a Zacks Rank #2. Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. Netflix's expected earnings growth rate for the current year is 27.7%. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. NFLX currently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Interface, Inc. (TILE) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report GDEV Inc. (GDEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
16-05-2025
- Business
- Yahoo
TILE Q1 Earnings Call: Strategic Diversification and Order Growth Offset Macro Headwinds
Modular flooring manufacturer Interface (NASDAQ:TILE) met Wall Street's revenue expectations in Q1 CY2025, with sales up 2.6% year on year to $297.4 million. The company expects next quarter's revenue to be around $360 million, close to analysts' estimates. Its non-GAAP profit of $0.25 per share was 17.5% above analysts' consensus estimates. Is now the time to buy TILE? Find out in our full research report (it's free). Revenue: $297.4 million vs analyst estimates of $296.5 million (2.6% year-on-year growth, in line) Adjusted EPS: $0.25 vs analyst estimates of $0.21 (17.5% beat) Adjusted EBITDA: $37 million vs analyst estimates of $34.95 million (12.4% margin, 5.9% beat) The company slightly lifted its revenue guidance for the full year to $1.35 billion at the midpoint from $1.34 billion Operating Margin: 7.8%, in line with the same quarter last year Free Cash Flow Margin: 1.4%, down from 3% in the same quarter last year Market Capitalization: $1.22 billion Interface's first quarter results reflected continued momentum in the company's core Americas market, with management crediting the One Interface strategy and diversified product portfolio for steady demand. CEO Laurel Hurd emphasized growth in education and healthcare segments, noting that both categories posted double-digit gains. She also cited the expansion of the i2 carpet tile portfolio and new product launches as key enablers of this quarter's performance. Looking ahead, management's guidance is anchored by a healthy backlog and robust order trends entering the second quarter. Hurd expressed confidence in offsetting recently announced tariffs through pricing adjustments and productivity improvements, stating these factors have been incorporated into current forecasts. The company remains focused on strategic investments in global product management and supply chain capabilities to sustain long-term growth, even as macroeconomic uncertainty persists. Management attributed Q1 performance to targeted growth in high-potential segments and ongoing operational improvements. Key points from the call underscore the impact of specific initiatives and market trends: Diversification delivers growth: The company's expansion into education and healthcare segments resulted in double-digit billing increases, driven by modernization initiatives and demand for durable, sustainable flooring solutions in these markets. Product innovation pipeline: Appointment of a VP of Global Product Category Management aims to accelerate product innovation and align offerings more closely with customer needs, supporting longer-term growth. Regional performance mixed: Americas posted 6% currency-neutral sales growth, with particularly strong order momentum, while Europe, Australia, and Asia-Pacific saw softer results, except for double-digit growth in Asia. Localized manufacturing limited exposure to currency swings and tariffs. Tariff mitigation plans: Management addressed exposure to new U.S. tariffs on select imported products (nora rubber from Germany and LVT from South Korea), noting that these impact less than 15% of global product costs. Plans to offset costs through pricing and productivity are already reflected in guidance. Supply chain optimization: Investments in global procurement, automation, and robotics—especially in U.S. carpet tile manufacturing—are delivering productivity gains, with plans to extend these improvements to Europe and Australia to support future margin expansion. Management's outlook for the coming quarters is shaped by expectations of continued end-market diversification, proactive tariff mitigation, and productivity enhancements, while acknowledging ongoing global macroeconomic uncertainty. Sustained segment momentum: Growth in education and healthcare markets is expected to continue, underpinned by modernization trends and demographic shifts, providing a buffer against softness in other segments like corporate office. Tariff impact managed: Management anticipates minimal disruption from new tariffs, with incremental pricing and productivity initiatives offsetting higher input costs, though timing of these offsets will be closely monitored. Strategic investments continue: Ongoing investment in product management, innovation, and global supply chain capabilities is expected to drive operational efficiencies and support margin stability, even as the economic environment remains unpredictable. Brian Biros (Thompson Research Group): Asked how the One Interface strategy contributed to margin and SG&A outperformance. Management cited strong Americas growth and double-digit gains in healthcare and education, with combined selling teams driving success in all product categories. Alex Paris (Barrington Research): Requested details on geographic growth, particularly in EMEA and Asia-Pacific. Management reported double-digit sales growth in Asia, with Europe and Australia described as softer. Alex Paris (Barrington Research): Inquired about potential risks and opportunities in government-related business amid return-to-office mandates. Management noted the segment is small but saw growth in Q1, driven by both public building churn and return-to-work activity. David MacGregor (Longbow Research): Pressed for clarification on the timing of tariff cost pass-through versus pricing actions. Management stated that commission-based selling and existing inventory should help align timing of cost recovery. David MacGregor (Longbow Research): Asked about benefits and timing from new global product management and procurement roles. Management expects these roles to drive incremental long-term growth and productivity, with early signs already visible in supply chain efficiencies. In the quarters ahead, our analysts will be watching (1) whether education and healthcare segments maintain double-digit growth amid broader macro uncertainty, (2) the effectiveness and timing of tariff cost recovery through pricing and productivity, and (3) progress on global supply chain and product management initiatives. Execution in offsetting input cost inflation and sustaining backlog momentum will also be key markers for ongoing performance. Interface currently trades at a forward EV-to-EBITDA ratio of 7.6×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. 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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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
02-05-2025
- Business
- Yahoo
Interface: Q1 Earnings Snapshot
ATLANTA (AP) — ATLANTA (AP) — Interface Inc. (TILE) on Friday reported profit of $13 million in its first quarter. The Atlanta-based company said it had net income of 22 cents per share. Earnings, adjusted for amortization costs and asset impairment costs, came to 25 cents per share. The carpet tile company posted revenue of $297.4 million in the period. For the current quarter ending in June, Interface said it expects revenue in the range of $355 million to $365 million. The company expects full-year revenue in the range of $1.34 billion to $1.37 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on TILE at
Yahoo
22-04-2025
- Business
- Yahoo
3 Reasons to Avoid TILE and 1 Stock to Buy Instead
Since October 2024, Interface has been in a holding pattern, posting a small loss of 3.3% while floating around $17.94. However, the stock is beating the S&P 500's 11% decline during that period. Is there a buying opportunity in Interface, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Even with the strong relative performance, we're cautious about Interface. Here are three reasons why we avoid TILE and a stock we'd rather own. Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions. 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. Unfortunately, Interface struggled to consistently increase demand as its $1.32 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn't a great result and signals it's a low quality business. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Sadly for Interface, its EPS declined by 16% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? A company's ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). Interface historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 7.4%, somewhat low compared to the best business services companies that consistently pump out 25%+. Interface doesn't pass our quality test. Following its recent outperformance in a weaker market environment, the stock trades at 12× forward price-to-earnings (or $17.94 per share). At this valuation, there's a lot of good news priced in - we think there are better opportunities elsewhere. We'd recommend looking at an all-weather company that owns household favorite Taco Bell. 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.