Latest news with #ZachHalmstad
Yahoo
4 days ago
- Business
- Yahoo
3 of Wall Street's Favorite Stocks That Fall Short
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it's worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover. Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals. Jamf (JAMF) Consensus Price Target: $17.45 (112% implied return) Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones. Why Do We Think Twice About JAMF? Revenue increased by 17.7% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds Average billings growth of 8.9% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand Suboptimal cost structure is highlighted by its history of operating margin losses Jamf is trading at $8.22 per share, or 1.6x forward price-to-sales. Read our free research report to see why you should think twice about including JAMF in your portfolio, it's free. Moderna (MRNA) Consensus Price Target: $47.59 (47.1% implied return) Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases. Why Do We Steer Clear of MRNA? Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 309.9 percentage points Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Moderna's stock price of $32.36 implies a valuation ratio of 6x forward price-to-sales. Check out our free in-depth research report to learn more about why MRNA doesn't pass our bar. Kemper (KMPR) Consensus Price Target: $82.20 (37% implied return) Originally known as Unitrin until rebranding in 2011, Kemper (NYSE:KMPR) is an insurance holding company that provides automobile, homeowners, life, and other insurance products to individuals and businesses across the United States. Why Do We Pass on KMPR? Net premiums earned tumbled by 2.4% annually over the last four years, showing market trends are working against its favor during this cycle Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 2.8% annually, worse than its revenue Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 4.5% annually over the last five years At $60 per share, Kemper trades at 1.3x forward P/B. If you're considering KMPR for your portfolio, see our FREE research report to learn more. High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 6 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 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 StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
07-05-2025
- Business
- Yahoo
Jamf (NASDAQ:JAMF) Posts Better-Than-Expected Sales In Q1, Full-Year Outlook Exceeds Expectations
Apple device management company, Jamf (NASDAQ:JAMF) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 10.2% year on year to $167.6 million. Guidance for next quarter's revenue was better than expected at $168.5 million at the midpoint, 1.5% above analysts' estimates. Its non-GAAP profit of $0.22 per share was in line with analysts' consensus estimates. Is now the time to buy Jamf? Find out in our full research report. Jamf (JAMF) Q1 CY2025 Highlights: Revenue: $167.6 million vs analyst estimates of $166.3 million (10.2% year-on-year growth, 0.8% beat) Adjusted EPS: $0.22 vs analyst estimates of $0.21 (in line) Adjusted Operating Income: $37.64 million vs analyst estimates of $36.37 million (22.5% margin, 3.5% beat) The company lifted its revenue guidance for the full year to $693 million at the midpoint from $678 million, a 2.2% increase Operating Margin: -2.5%, up from -13.9% in the same quarter last year Free Cash Flow Margin: 0.6%, down from 4.5% in the previous quarter Billings: $161.3 million at quarter end, up 12.7% year on year Market Capitalization: $1.48 billion Company Overview Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones. Sales Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Jamf grew its sales at a 17.7% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. Jamf Quarterly Revenue This quarter, Jamf reported year-on-year revenue growth of 10.2%, and its $167.6 million of revenue exceeded Wall Street's estimates by 0.8%. Company management is currently guiding for a 10.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 7.3% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and implies its products and services will face some demand challenges. 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.
Yahoo
15-04-2025
- Business
- Yahoo
Jamf (JAMF): Buy, Sell, or Hold Post Q4 Earnings?
Jamf's stock price has taken a beating over the past six months, shedding 31.9% of its value and falling to $11.55 per share. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Jamf, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even though the stock has become cheaper, we're sitting this one out for now. Here are three reasons why you should be careful with JAMF and a stock we'd rather own. Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Jamf's billings came in at $170.5 million in Q4, and over the last four quarters, its year-on-year growth averaged 9%. This performance was underwhelming and suggests that increasing competition is causing challenges in acquiring/retaining customers. While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This metric shows how much revenue remains after accounting for all core expenses – everything from the cost of goods sold to sales and R&D. Jamf's expensive cost structure has contributed to an average operating margin of negative 11% over the last year. Unprofitable software companies require extra attention because they spend heaps of money to capture market share. As seen in its historically underwhelming revenue performance, this strategy hasn't worked so far, and it's unclear what would happen if Jamf reeled back its investments. Wall Street seems to think it will face some obstacles, and we tend to agree. 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. Jamf has shown weak cash profitability over the last year, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 3.5%, subpar for a software business. Jamf isn't a terrible business, but it doesn't pass our quality test. After the recent drawdown, the stock trades at 2.1× forward price-to-sales (or $11.55 per share). While this valuation is fair, the upside isn't great compared to the potential downside. We're pretty confident there are more exciting stocks to buy at the moment. We'd recommend looking at one of our all-time favorite software stocks. 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
10-04-2025
- Business
- Yahoo
Q4 Rundown: Jamf (NASDAQ:JAMF) Vs Other Automation Software Stocks
Let's dig into the relative performance of Jamf (NASDAQ:JAMF) and its peers as we unravel the now-completed Q4 automation software earnings season. The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software. The 7 automation software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.8% since the latest earnings results. Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones. Jamf reported revenues of $163 million, up 8.2% year on year. This print was in line with analysts' expectations, but overall, it was a weaker quarter for the company with full-year guidance of slowing revenue growth and a miss of analysts' billings estimates. The stock is down 24.2% since reporting and currently trades at $11.17. Read our full report on Jamf here, it's free. Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers. SoundHound AI reported revenues of $34.54 million, up 101% year on year, outperforming analysts' expectations by 2.3%. The business had a very strong quarter with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' billings estimates. SoundHound AI scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9% since reporting. It currently trades at $8.38. Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it's free. Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks. UiPath reported revenues of $423.6 million, up 4.5% year on year, in line with analysts' expectations. It was a slower quarter as it posted a significant miss of analysts' billings estimates and full-year guidance of slowing revenue growth. UiPath delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 10.4% since the results and currently trades at $10.64. Read our full analysis of UiPath's results here. Short for microcomputer software, Microsoft (NASDAQ:MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services. Microsoft reported revenues of $69.63 billion, up 12.3% year on year. This print beat analysts' expectations by 1.1%. Overall, it was a strong quarter as it also put up a miss of analysts' revenue estimates and an impressive beat of analysts' operating income estimates. The stock is down 13.3% since reporting and currently trades at $383.23. Read our full, actionable report on Microsoft here, it's free. Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement. Pegasystems reported revenues of $490.8 million, up 3.5% year on year. This number surpassed analysts' expectations by 4.4%. It was a strong quarter as it also recorded an impressive beat of analysts' billings estimates and full-year guidance of accelerating revenue growth. Pegasystems pulled off the biggest analyst estimates beat and highest full-year guidance raise, but had the slowest revenue growth among its peers. The stock is down 37.1% since reporting and currently trades at $66.70. Read our full, actionable report on Pegasystems here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem 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
01-04-2025
- Business
- Yahoo
1 Stock Under $50 on Our Buy List and 2 to Brush Off
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they're not immune to volatility as many lack the scale advantages of their larger peers. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one stock under $50 that could 10x and two that could be down big. Share Price: $12.15 Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones. Why Does JAMF Give Us Pause? Offerings struggled to generate meaningful interest as its average billings growth of 9% over the last year did not impress Poor expense management has led to operating losses Poor free cash flow margin of 3.5% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Jamf's stock price of $12.15 implies a valuation ratio of 2.3x forward price-to-sales. To fully understand why you should be careful with JAMF, check out our full research report (it's free). Share Price: $22.09 Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies. Why Do We Think MATW Will Underperform? Flat sales over the last two years suggest it must innovate and find new ways to grow Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 12.1% annually Below-average returns on capital indicate management struggled to find compelling investment opportunities Matthews is trading at $22.09 per share, or 4.2x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including MATW in your portfolio, it's free. Share Price: $20.71 Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach. Why Will GSAT Outperform? Annual revenue growth of 29.8% over the past two years was outstanding, reflecting market share gains this cycle Incremental sales over the last two years have been highly profitable as its earnings per share increased by 52.5% annually, topping its revenue gains Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety At $20.71 per share, Globalstar trades at 19.3x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it's free. With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we're laser-focused on finding the best stocks for this upcoming cycle. Put yourself in the driver's seat 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
