Latest news with #WilliamC.Durant
Yahoo
29-05-2025
- Business
- Yahoo
2 Profitable Stocks with Competitive Advantages and 1 to Steer Clear Of
A company with profits isn't always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up. Trailing 12-Month GAAP Operating Margin: 6.6% Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac. Why Does GM Give Us Pause? Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth Forecasted revenue decline of 5.6% for the upcoming 12 months implies demand will fall off a cliff High input costs result in an inferior gross margin of 12.5% that must be offset through higher volumes At $49.07 per share, General Motors trades at 4.4x forward P/E. Read our free research report to see why you should think twice about including GM in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 11.8% Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. Why Are We Fans of MTSI? Annual revenue growth of 9.9% over the past two years was outstanding, reflecting market share gains this cycle Projected revenue growth of 21.6% for the next 12 months is above its two-year trend, pointing to accelerating demand Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 81.7% annually MACOM's stock price of $123.42 implies a valuation ratio of 32.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Trailing 12-Month GAAP Operating Margin: 22.1% Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services. Why Are We Positive On TH? Healthy operating margin of 32.8% shows it's a well-run company with efficient processes Strong free cash flow margin of 24.5% enables it to reinvest or return capital consistently Returns on capital are growing as management capitalizes on its market opportunities Target Hospitality is trading at $7.49 per share, or 21.9x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
16-05-2025
- Automotive
- Yahoo
3 Low-Volatility Stocks in Hot Water
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. Keeping that in mind, here are three low-volatility stocks that don't make the cut and some better opportunities instead. Rolling One-Year Beta: 0.38 Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions. Why Do We Avoid BFAM? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew Below-average returns on capital indicate management struggled to find compelling investment opportunities Bright Horizons is trading at $122.32 per share, or 29.4x forward P/E. To fully understand why you should be careful with BFAM, check out our full research report (it's free). Rolling One-Year Beta: 0.78 Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac. Why Is GM Not Exciting? Disappointing unit sales over the past two years suggest it might have to lower prices to accelerate growth Estimated sales decline of 6.2% for the next 12 months implies a challenging demand environment Gross margin of 12.5% is below its competitors, leaving less money to invest in areas like marketing and R&D General Motors's stock price of $49.68 implies a valuation ratio of 4.6x forward P/E. If you're considering GM for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.64 With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE:SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States. Why Is SEM Risky? Declining admissions over the past two years indicate demand is soft and that the company may need to revise its strategy Projected sales decline of 11.6% over the next 12 months indicates demand will continue deteriorating Free cash flow margin dropped by 13.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up At $15.23 per share, Select Medical trades at 13x forward P/E. Check out our free in-depth research report to learn more about why SEM doesn't pass our bar. 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 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. 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
14-05-2025
- Automotive
- Yahoo
Automobile Manufacturing Stocks Q1 Teardown: General Motors (NYSE:GM) Vs The Rest
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how automobile manufacturing stocks fared in Q1, starting with General Motors (NYSE:GM). Much capital investment and technical know-how are needed to manufacture functional, safe, and aesthetically pleasing automobiles for the mass market. Barriers to entry are therefore high, and auto manufacturers with economies of scale can boast strong economic moats. However, this doesn't insulate them from new entrants, as electric vehicles (EVs) have entered the market and are upending it. This has forced established manufacturers to not only contend with emerging EV-first competitors but also decide how much they want to invest in these disruptive technologies, which will likely cannibalize their legacy offerings. The 6 automobile manufacturing stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 3.8%. Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results. Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac. General Motors reported revenues of $44.02 billion, up 2.3% year on year. This print exceeded analysts' expectations by 2.7%. It was a decent quarter for the company with a narrow beat of analysts' adjusted operating income estimates. Interestingly, the stock is up 1.2% since reporting and currently trades at $47.78. Is now the time to buy General Motors? Access our full analysis of the earnings results here, it's free. The manufacturer of Amazon's delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans. Rivian reported revenues of $1.24 billion, up 3% year on year, outperforming analysts' expectations by 24.3%. The business had an incredible quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Rivian pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $14.22. Is now the time to buy Rivian? Access our full analysis of the earnings results here, it's free. Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ:TSLA) is an electric vehicle company accelerating the world's transition to sustainable energy. Tesla reported revenues of $19.34 billion, down 9.2% year on year, falling short of analysts' expectations by 8.1%. It was a disappointing quarter. Tesla delivered fewer vehicles than forecasted, its revenue in all three segments (Services, Automotive, and Energy) missed, and its EPS fell short of Wall Street's estimates. Tesla delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 25.7% since the results and currently trades at $299.30. Read our full analysis of Tesla's results here. Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities. Lucid reported revenues of $235 million, up 36.1% year on year. This number came in 0.9% below analysts' expectations. In spite of that, it was a strong quarter as it put up a solid beat of analysts' sales volume estimates and an impressive beat of analysts' adjusted operating income estimates. Lucid achieved the fastest revenue growth among its peers. The stock is up 8.2% since reporting and currently trades at $2.51. Read our full, actionable report on Lucid here, it's free. Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles. Winnebago reported revenues of $620.2 million, down 11.9% year on year. This result beat analysts' expectations by 0.6%. It was a strong quarter as it also recorded an impressive beat of analysts' adjusted operating income estimates and a solid beat of analysts' EPS estimates. Winnebago had the slowest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $34.02. Read our full, actionable report on Winnebago here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
05-05-2025
- Automotive
- Yahoo
1 Industrials Stock to Target This Week and 2 to Turn Down
Whether you see them or not, industrials businesses play a crucial part in our daily activities. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and investors seem to be forecasting a downturn - over the past six months, the industry has pulled back by 10%. This drop was worse than the S&P 500's 1.7% loss. 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 is one industrials stock boasting a durable advantage and two best left ignored. Market Cap: $43.55 billion Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac. Why Is GM Not Exciting? Weak unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy Estimated sales decline of 6.7% for the next 12 months implies a challenging demand environment Gross margin of 12.5% reflects its high production costs General Motors is trading at $45.31 per share, or 4.2x forward P/E. Check out our free in-depth research report to learn more about why GM doesn't pass our bar. Market Cap: $110.8 billion Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE:LMT) specializes in defense, space, homeland security, and information technology products. Why Are We Out on LMT? Annual sales growth of 3.3% over the last five years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand 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 At $472.70 per share, Lockheed Martin trades at 16.8x forward P/E. To fully understand why you should be careful with LMT, check out our full research report (it's free). Market Cap: $3.55 billion Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects. Why Could GVA Be a Winner? Annual revenue growth of 12.2% over the last two years was superb and indicates its market share increased during this cycle Earnings per share grew by 48.5% annually over the last two years, massively outpacing its peers Rising returns on capital show the company is starting to reap the benefits of its past investments Granite Construction's stock price of $81.70 implies a valuation ratio of 7.6x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full 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 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
Yahoo
29-04-2025
- Automotive
- Yahoo
General Motors (NYSE:GM) Surprises With Q1 Sales
Automotive manufacturer General Motors (NYSE:GM) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 2.3% year on year to $44.02 billion. Its non-GAAP profit of $2.78 per share was 4.3% above analysts' consensus estimates. Is now the time to buy General Motors? Find out in our full research report. Revenue: $44.02 billion vs analyst estimates of $42.85 billion (2.3% year-on-year growth, 2.7% beat) Adjusted EPS: $2.78 vs analyst estimates of $2.66 (4.3% beat) Reassessing its 2025 financial guidance and suspending additional buybacks due to cost increases and uncertainty regarding tariffs Operating Margin: 7.6%, down from 8.7% in the same quarter last year Free Cash Flow Margin: 9.6%, up from 0.9% in the same quarter last year Market Capitalization: $45.65 billion Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, General Motors's 6.9% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. General Motors's annualized revenue growth of 8.3% over the last two years is above its five-year trend, suggesting some bright spots. This quarter, General Motors reported modest year-on-year revenue growth of 2.3% but beat Wall Street's estimates by 2.7%. Looking ahead, sell-side analysts expect revenue to decline by 5.6% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. General Motors was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.6% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Looking at the trend in its profitability, General Motors's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, General Motors generated an operating profit margin of 7.6%, down 1.1 percentage points year on year. The reduction is quite minuscule and shareholders shouldn't weigh the results too heavily. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. General Motors's EPS grew at an astounding 22.2% compounded annual growth rate over the last five years, higher than its 6.9% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. We can take a deeper look into General Motors's earnings quality to better understand the drivers of its performance. A five-year view shows that General Motors has repurchased its stock, shrinking its share count by 30.4%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For General Motors, its two-year annual EPS growth of 18.1% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q1, General Motors reported EPS at $2.78, up from $2.61 in the same quarter last year. This print beat analysts' estimates by 4.3%. Over the next 12 months, Wall Street expects General Motors's full-year EPS of $10.69 to grow 2.2%. We enjoyed seeing General Motors beat analysts' revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, uncertainty remains. The company is reassessing its 2025 financial guidance and suspending additional buybacks due to cost increases and uncertainty regarding tariffs. The stock traded down 2.3% to $46.12 immediately after reporting. Big picture, is General Motors a buy here and now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
