Latest news with #longterminvesting
Yahoo
4 days ago
- Business
- Yahoo
Those who invested in Daldrup & Söhne (ETR:4DS) five years ago are up 409%
Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the Daldrup & Söhne Aktiengesellschaft (ETR:4DS) share price. It's 409% higher than it was five years ago. This just goes to show the value creation that some businesses can achieve. Also pleasing for shareholders was the 27% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years of share price growth, Daldrup & Söhne moved from a loss to profitability. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. We can see that the Daldrup & Söhne share price is up 90% in the last three years. During the same period, EPS grew by 47% each year. This EPS growth is higher than the 24% average annual increase in the share price over the same three years. So you might conclude the market is a little more cautious about the stock, these days. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). It is of course excellent to see how Daldrup & Söhne has grown profits over the years, but the future is more important for shareholders. This free interactive report on Daldrup & Söhne's balance sheet strength is a great place to start, if you want to investigate the stock further. It's good to see that Daldrup & Söhne has rewarded shareholders with a total shareholder return of 35% in the last twelve months. However, the TSR over five years, coming in at 38% per year, is even more impressive. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for Daldrup & Söhne that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. 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. 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
27-05-2025
- Business
- Yahoo
Ocado Group (LON:OCDO shareholders incur further losses as stock declines 6.4% this week, taking five-year losses to 88%
Long term investing is the way to go, but that doesn't mean you should hold every stock forever. It hits us in the gut when we see fellow investors suffer a loss. Anyone who held Ocado Group plc (LON:OCDO) for five years would be nursing their metaphorical wounds since the share price dropped 88% in that time. And we doubt long term believers are the only worried holders, since the stock price has declined 36% over the last twelve months. The falls have accelerated recently, with the share price down 21% in the last three months. We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson. If the past week is anything to go by, investor sentiment for Ocado Group isn't positive, so let's see if there's a mismatch between fundamentals and the share price. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Ocado Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last half decade, Ocado Group saw its revenue increase by 1.7% per year. That's not a very high growth rate considering it doesn't make profits. It's not so sure that share price crash of 13% per year is completely deserved, but the market is doubtless disappointed. While we're definitely wary of the stock, after that kind of performance, it could be an over-reaction. We'd recommend focussing any further research on the likelihood of profitability in the foreseeable future, given the muted revenue growth. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. Ocado Group shareholders are down 36% for the year, but the market itself is up 6.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 13% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Ocado Group better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Ocado Group you should be aware of. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. 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.
Yahoo
26-05-2025
- Business
- Yahoo
The past five years for Recce Pharmaceuticals (ASX:RCE) investors has not been profitable
We think intelligent long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. For example, after five long years the Recce Pharmaceuticals Ltd (ASX:RCE) share price is a whole 62% lower. That is extremely sub-optimal, to say the least. We also note that the stock has performed poorly over the last year, with the share price down 48%. Furthermore, it's down 34% in about a quarter. That's not much fun for holders. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Recce Pharmaceuticals isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit. Over five years, Recce Pharmaceuticals grew its revenue at 45% per year. That's better than most loss-making companies. Unfortunately for shareholders the share price has dropped 10% per year - disappointing considering the growth. It's safe to say investor expectations are more grounded now. Given the revenue growth we'd consider the stock to be quite an interesting prospect if the company has a clear path to profitability. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). Take a more thorough look at Recce Pharmaceuticals' financial health with this free report on its balance sheet. Recce Pharmaceuticals shareholders are down 48% for the year, but the market itself is up 11%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Recce Pharmaceuticals better, we need to consider many other factors. For example, we've discovered 5 warning signs for Recce Pharmaceuticals (2 shouldn't be ignored!) that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. 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. 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
Globe and Mail
25-05-2025
- Automotive
- Globe and Mail
Where Will Lucid Stock Be in 3 Years?
Long-term investing is the key to sustainable returns in the stock market. However, with shares down 85% over the last three years, Lucid Group (NASDAQ: LCID) highlights the risk of putting all your eggs in one basket. The once-promising automaker has shed value because of challenges like overvaluation and cash burn in the competitive electric vehicle (EV) market. Now, with a market cap of just $9 billion, Lucid's small size sets it up for potential multi-bagger returns if management can turn things around. Let's dig deeper to see what the next three years have in store. 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 » Chaos can create opportunities The top financial story so far in 2025 is President Donald Trump's trade policy, which culminated on April 2 with the announcement of massive "reciprocal" tariffs on various countries. While the final numbers are still being negotiated, there is more clarity in the automotive industry, where a 25% tariff on imported cars is now in effect (along with a complex web of levies and discounts to account for parts made outside the U.S.). Lucid looks like a clear winner in this scenario because its U.S. cars are assembled at its factory in Casa Grande, Arizona. Furthermore, its secondary facility in Saudi Arabia could help the company dodge any retaliatory trade restrictions other countries may level at the U.S. To be fair, no car is totally American-made. The Kogard School of Business ranks Lucid's Air Sedan at 73 on its total domestic content index. This number puts Lucid ahead of rivals such as the Porsche Taycan or BMW i7, which are both manufactured in Germany, although it falls short of Tesla's Model S, which scores an 80 on Kogard's index. Lucid's domestic content could give it a massive lead over its imported rivals, and help the company focus on beating Tesla in the domestic market. Tesla's weakness is a massive opportunity for Lucid For Lucid, Trump's election victory may be a gift that keeps on giving -- especially as Elon Musk (the CEO of major rival Tesla) made the ill-fated decision to be publicly involved with the administration. This decision has led to consumer backlash, sending deliveries in Tesla's "other models" segment (the Model S, Cybertruck, and Model X) down 24% to 12,881 units. Lucid competes directly with these higher-end Tesla offerings. While Musk has vowed to step away from politics, only time will tell. Furthermore, it is unclear if the backlash will even abate. Early data shows that the company's sales are still declining in the European Union despite the new Model Y refresh, and similar trends may emerge in the U.S. The next three years will be challenging Despite enjoying some positive trends, Lucid isn't out of the woods yet. First-quarter earnings show that the business is still struggling to survive. While Q1 revenue increased 36% year over year to $235 million, this wasn't enough to defray production costs over overhead expenses, leading to an operating loss of roughly $692 million. With a combined $3.6 billion in cash and equivalents on its balance sheet, Lucid has enough liquidity to sustain this level of cash burn for several more quarters. However, eventually it will need to turn to other sources of capital, such as equity dilution, which will reduce current shareholders' claims on the business and likely hurt the stock price. Over the next three years, Lucid's future will depend on achieving economies of scale through new products like the Gravity SUV, which has helped it break into the lucrative SUV market. By 2028, Car and Driver believes it will release its new Lucid Earth, designed to take on the mass market with a starting price of less than $50,000 compared to the Gravity's $81,500. Investors may want to wait for more clarity on this model before considering a position in Lucid's stock. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Entrepreneur
21-05-2025
- Business
- Entrepreneur
3 Strong Stocks To Consider For Your Future
3 Stocks in excellent financial health to consider for the long haul This story originally appeared on WallStreetZen A stock's financials aren't the most interesting thing in the world. But it's a simple fact: Tracking "boring" financials — analyzing factors like debt, free cash flow, return on assets, and the like — is essential to potentially unlocking long-term gains. The issue is that most of us simply aren't equipped to properly digest this information and place it in the proper context. The relatively few can do it face yet another quandary — the process is time-consuming, particularly if you're comparing equities. Thankfully, you don't need to do it all yourself. WallStreetZen's screeners can take care of a lot of the legwork. While you'll still have to put in some elbow grease and do your own research, narrowing down the search at the very start ends up being a huge timesaver more often than not. If the goal is locating healthy equities with good long-term prospects, start with the Strong Financial Health screener. This list tracks the top equities that score highly for Financials — one of the Component Grades included in a stock's overall Zen Rating. At the time of writing, you'll find 379 stocks on that list — too many to track, so let's whittle down the list a bit. To locate the best of the best, I applied a few additional filters: First, I filtered the list to only include stocks with an A grade for Financials Second, I filtered the list to only include stocks with an overall Zen Rating of A With those small tweaks, I was left with 35 stocks. More workable, but still a few too many to research in one go. So I also filtered by stocks with a Value Component Grade rating of A or B. The total list? 6 stocks. Here are what I felt were the strongest 3: This just so happens to be top-rated stock in the Auto & Truck Dealership industry, which has an Industry Rating of A. CarGurus operates an online marketplace that connects buyers, sellers, and dealerships. Since since its founding in 2005, it has managed to work its way up to a $3.21 billion market capitalization. On average, analysts are projecting a hefty 17.07% upside for CARG — but stocks with a Zen Rating of A have provided an average annual return of 32.52% in the past two decades. To get a sense of why CarGurus stock could be set to outperform, we need to take a closer look at those Component Grade ratings. Financials are what we're primarily after here — in this category, CARG ranks in the top 1% of stocks. In the past year, the company has expanded margins from 4% to 4.3%. It also maintains some $251.97 million in short-term assets — outpacing both short-term liabilities ($94.51 million) and long-term liabilities ($192.56 million). CarGurus also has $271.41 million in operating cash flow, which is more than enough to service the company's $195.43 million debt. In addition, earnings of $43.52 million are sufficient to cover the interest payments on the company's debt. Once you factor all of this in, the one sore spot in terms of Financials, a debt-to-equity (D/E) ratio of 0.71, starts looking a lot more manageable. So, what about valuation? At present, CARG is trading at a price-to-earnings (P/E) ratio of 85.42x. For the sake of reference, the industry average is 53.24x, while the market average is 25.95x. However, P/E is just one metric — when we factor in expected growth through price-to-earnings growth (PEG), which is currently 0.87x, it would appear that CarGurus shares are trading at a discount — at least relative to earnings estimates. Once all is said and done, CARG ranks in the top 14% of stocks in terms of Value. Then we have Growth — a category in which CarGurus ranks in the 96th percentile of equities. The company's earnings are forecast to grow at 98.48% per year — blowing the industry average of 31.4% and the wider market average of 15.49% out of the water. Lastly, I'd be remiss not to reflect on CARG's longer-term trajectory — the stock has provided 10 earnings beats in a row, so there's a consistent pattern of outperformance at work here. Our next entry is also an online marketplace — but of an entirely different sort. EverQuote (NASDAQ: EVER) allows customers to shop for auto, home, renters, health, and even life insurance from the comfort of their homes. Just like our previous entry, EVER has secured a vote of confidence from Wall Street — per the average 12-month price forecast, analysts are implying a 37% upside — and just like CARG, the stock is the top-rated equity in its industry (Internet Content & Information). EverQuote has recently become profitable — in the last year, profit margins expanded significantly, from -17.4% to 6.6%. While the company is leveraged, with a debt-to-equity D/E ratio of 0.55, that figure is both typical for a tech company in the growth stage, and represents a significant decrease from the 0.76 mark seen just five years ago. The insurance marketplace maintains $194.34 million in short-term assets — which outpaces the sum of both short-term liabilities ($80.41 million) and long-term liabilities ($2.24 million). In terms of Financials, it ranks in the top 1% of stocks. However, what truly makes it stand out are high marks in two other categories — Value, where it ranks in the top 6% on account of a P/E ratio of just 22.47x, below both market and industry averages, and Sentiment, where it ranks in the top 7%. There's one part of our screener formula that we haven't mentioned yet — and that's earnings projections. Analysts are expecting that EverQuote's earnings will grow at a rate of 17.54% a year — ahead of the Internet Content & Information industry average of 9.4%. Moreover, revenue growth of 11.8% is forecast to surpass the industry average of 5.52% and the market-wide average of 9.79%. 3. Aurinia Pharmaceuticals (NASDAQ: AUPH) Last but not least, our third entry for today is biotech (commercial stage biotech, mind you) company Aurinia Pharmaceuticals (NASDAQ: AUPH). The business currently has an FDA-approved treatment for lupus, and a promising pipeline geared toward autoimmune conditions. Since you already know the formula we used to identify today's picks, the A's in terms of Zen Rating and the stock's financials Component Grade rating won't come as a surprise. What might come as a surprise, however, is performance — AUPH has rallied by 41.94% in the past 365 days. Here's the most interesting part — there's no analyst coverage. Wall Street doesn't seem to have picked up on AUPH just yet. Our system has, however. On the whole, Aurinia Pharmaceuticals stock ranks in the top 1% of equities, the top 1% in terms of Financials, the top 6% when it comes to Value, and the top 7% in terms of Sentiment. Let's examine why it merits those high marks in order. When it comes to Financials, the high rating is owed to a 48.8% surge in profit margin within the last year (from -32.7% to 16.1%), as well as short-term assets ($405.76 million) exceeding the sum of short-term liabilities ($68.41 million) and long-term liabilities ($86.25 million). When it comes to Value, we have a decent PE ratio of 28.24x, as well as a very enticing PEG ratio of 0.42x. Sentiment, however, conceals Aurinia Pharmaceuticals' most unique bullish signal to consider. When it comes to insider transactions, 77.85% of them in the last year have been buys — and that's quite a rare sight nowadays. The company held its latest earnings call on May 12 — and earnings per share (EPS) came in at $0.16, above estimates of $0.08, marking the fifth consecutive beat. Since it isn't being covered by Wall Street analysts, AUPH is an interesting (and perhaps a tad risky) pick — but there's no denying that it has solid fundamentals. —> Interested in more stocks with great Financials? Check out our Strong Financial Health screener. What to Do Next?
