Latest news with #WLY
Yahoo
21-05-2025
- Business
- Yahoo
3 Services Stocks Walking a Fine Line
Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 6.3%. This drawdown was discouraging since the S&P 500 held steady. A cautious approach is imperative when dabbling in these companies as many are also sensitive to the ebbs and flows of the broader economy. With that said, here are three services stocks we're steering clear of. Market Cap: $2.33 billion With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. Why Should You Sell WLY? Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle Earnings per share were flat over the last two years and fell short of the peer group average 4.3 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $43.20 per share, Wiley trades at 17.9x forward EV-to-EBITDA. To fully understand why you should be careful with WLY, check out our full research report (it's free). Market Cap: $10.53 billion Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE:EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products. Why Does EPAM Worry Us? Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.3 percentage points Eroding returns on capital suggest its historical profit centers are aging EPAM's stock price of $185.89 implies a valuation ratio of 17.1x forward P/E. Read our free research report to see why you should think twice about including EPAM in your portfolio, it's free. Market Cap: $23.28 billion Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE:HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments. Why Does HPE Give Us Pause? Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.8% over the last five years was below our standards for the business services sector Revenue growth over the past two years was nullified by the company's new share issuances as its earnings per share fell by 3.1% annually ROIC of 2.9% reflects management's challenges in identifying attractive investment opportunities Hewlett Packard Enterprise is trading at $17.65 per share, or 8.2x forward P/E. If you're considering HPE for your portfolio, see our FREE research report to learn more. 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for 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
09-05-2025
- Business
- Yahoo
Wiley (WLY): Buy, Sell, or Hold Post Q4 Earnings?
Over the past six months, Wiley's shares (currently trading at $44.86) have posted a disappointing 15.6% loss while the S&P 500 was down 5.8%. This may have investors wondering how to approach the situation. Is now the time to buy Wiley, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Despite the more favorable entry price, we're sitting this one out for now. Here are three reasons why you should be careful with WLY and a stock we'd rather own. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Wiley's demand was weak and its revenue declined by 1.6% per year. This wasn't a great result and signals it's a low quality business. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Wiley's EPS grew at an unimpressive 5.6% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 1.6% annualized revenue declines and tells us management adapted its cost structure in response to a challenging demand environment. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, Wiley's margin dropped by 4.3 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Wiley's free cash flow margin for the trailing 12 months was 10.2%. Wiley doesn't pass our quality test. Following the recent decline, the stock trades at 18.6× forward EV-to-EBITDA (or $44.86 per share). This valuation tells us a lot of optimism is priced in - you can find better investment opportunities elsewhere. We'd recommend looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. 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 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 Sterling Infrastructure (+1,096% 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
22-04-2025
- Business
- Yahoo
1 Safe-and-Steady Stock to Own for Decades and 2 to Steer Clear Of
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not keep up. Rolling One-Year Beta: 0.22 Founded by Dave Thomas in 1969, Wendy's (NASDAQ:WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality. Why Is WEN Not Exciting? 5.6% annual revenue growth over the last five years was slower than its restaurant peers Demand is forecasted to shrink as its estimated sales for the next 12 months are flat High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens At $12.70 per share, Wendy's trades at 12.3x forward price-to-earnings. To fully understand why you should be careful with WEN, check out our full research report (it's free). Rolling One-Year Beta: 0.74 With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. Why Should You Sell WLY? Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle Flat earnings per share over the last two years underperformed the sector average Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points Wiley is trading at $41.65 per share, or 17.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WLY doesn't pass our bar. Rolling One-Year Beta: 0.86 Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands. Why Will BRBR Beat the Market? Products are selling at a rapid clip as its unit sales averaged an outstanding 21.2% growth rate over the past two years Earnings per share grew by 30.9% annually over the last three years, massively outpacing its peers Stellar returns on capital showcase management's ability to surface highly profitable business ventures BellRing Brands's stock price of $73.21 implies a valuation ratio of 32.2x forward price-to-earnings. 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 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.
Yahoo
16-04-2025
- Business
- Yahoo
3 Russell 2000 Stocks with Bad Fundamentals
Small-cap stocks in the Russell 2000 can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses. The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we're here to guide you toward the right ones. Keeping that in mind, here are three Russell 2000 stocks to avoid and better alternatives to consider. Market Cap: $2.30 billion With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. Why Should You Sell WLY? Sales tumbled by 1.6% annually over the last five years, showing market trends are working against its favor during this cycle Flat earnings per share over the last two years lagged its peers Free cash flow margin dropped by 4.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up At $42.70 per share, Wiley trades at 17.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WLY doesn't pass our bar. Market Cap: $1.12 billion With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states. Why Do We Pass on MD? Lagging comparable store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Projected sales decline of 7.2% for the next 12 months points to a tough demand environment ahead Earnings per share fell by 4.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Pediatrix Medical Group is trading at $13.59 per share, or 8.6x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than MD. Market Cap: $4.19 billion Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE:TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States. Why Do We Steer Clear of TDS? Sales tumbled by 1.3% annually over the last four years, showing market trends are working against its favor during this cycle Earnings per share have contracted by 30.7% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance High net-debt-to-EBITDA ratio of 23× increases the risk of forced asset sales or dilutive financing if operational performance weakens Telephone and Data Systems's stock price of $36.57 implies a valuation ratio of 3.1x forward EV-to-EBITDA. To fully understand why you should be careful with TDS, check out 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 Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Is It Too Late To Consider Buying John Wiley & Sons, Inc. (NYSE:WLY)?
John Wiley & Sons, Inc. (NYSE:WLY), might not be a large cap stock, but it saw a decent share price growth of 17% on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a US$2.4b market cap stock, it seems odd John Wiley & Sons is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today we will analyse the most recent data on John Wiley & Sons's outlook and valuation to see if the opportunity still exists. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Good news, investors! John Wiley & Sons is still a bargain right now. According to our valuation, the intrinsic value for the stock is $60.40, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that John Wiley & Sons's share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range again. See our latest analysis for John Wiley & Sons Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. John Wiley & Sons' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? Since WLY is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on WLY for a while, now might be the time to make a leap. Its prosperous future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy WLY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. If you'd like to know more about John Wiley & Sons as a business, it's important to be aware of any risks it's facing. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of John Wiley & Sons. If you are no longer interested in John Wiley & Sons, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
