Latest news with #longtermreturns
Yahoo
6 days ago
- Business
- Yahoo
Those who invested in Progressive (NYSE:PGR) five years ago are up 206%
While The Progressive Corporation (NYSE:PGR) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 12% in the last quarter. But that scarcely detracts from the really solid long term returns generated by the company over five years. We think most investors would be happy with the 177% return, over that period. We think it's more important to dwell on the long term returns than the short term returns. Only time will tell if there is still too much optimism currently reflected in the share price. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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 five years of share price growth, Progressive achieved compound earnings per share (EPS) growth of 19% per year. This EPS growth is reasonably close to the 23% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. In fact, the share price seems to largely reflect the EPS growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Progressive has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Progressive stock, you should check out this FREE detailed report on its balance sheet. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Progressive's TSR for the last 5 years was 206%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! A Different Perspective Progressive provided a TSR of 13% over the last twelve months. But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 25% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. It's always interesting to track share price performance over the longer term. But to understand Progressive better, we need to consider many other factors. Take risks, for example - Progressive has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about. But note: Progressive may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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. 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
01-08-2025
- Business
- Yahoo
2 Canadian Growth Stocks to Buy Now While They're on Sale
Written by Rajiv Nanjapla at The Motley Fool Canada Growth stocks will potentially grow faster than the industry average, thereby delivering superior returns in the long run. Unlike established companies that distribute their profits to their shareholders, growth companies tend to reinvest their earnings to fund their growth initiatives. The following two Canadian growth stocks have been under pressure this year and are trading at a significant discount compared to their 52-week highs. With robust growth prospects and compelling valuations, I believe these two stocks are well-positioned to deliver strong long-term returns. Lightspeed Commerce Lightspeed Commerce (TSX:LSPD) offers omnichannel solutions to businesses across the retail, hospitality, and golf sectors in over 100 countries. The company has witnessed solid buying over the last couple of months, with its stock price rising by over 73% compared to its April lows. Despite the recent surge, it is still trading 31.5% lower compared to its 52-week high. Also, its NTM (next 12 months) price-to-sales multiple looks reasonable at 1.5. Moreover, the growth in e-commerce has prompted many enterprises to take their business online, thereby creating long-term growth potential for Lightspeed. Meanwhile, the company is focusing on the development of innovative products and adding artificial intelligence-powered features to meet its customers' needs. These features would help retailers in inventory management, supplier integration, providing real-time product information, and delivering a seamless omnichannel experience. Along with these growth initiatives, the company has adopted several cost-cutting measures to improve profitability. Additionally, Lightspeed has repurchased around 18.7 million shares under its share repurchase program for approximately $219 million, lowering its outstanding shares by 12%. Amid its growth initiatives, the company's management predicts its topline to grow 10%—12% in fiscal 2026, while generating an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $68 million to $72 million. The midpoint of the adjusted EBITDA guidance represents a 30.4% increase from its fiscal 2025 levels. Considering its expanding addressable market, growth initiatives, and attractive valuation, I believe the uptrend in Lightspeed could continue, thereby delivering superior returns over the next three years. Docebo Another growth stock that has been down significantly compared to its 52-week high is Docebo (TSX:DCBO), which offers an end-to-end learning platform to enterprises worldwide. The Orlando-based LMS (learning management solutions) provider has been under pressure this year due to rising competition and investors' expectations of growth slowing down. It has lost close to 44% of its stock value compared to its 52-week high. Meanwhile, Docebo reported a healthy first-quarter performance in May, with its topline growing by 11%. Its growing average contract value and new customer wins have boosted its sales. Besides, its adjusted net income rose 16.4% to $8.5 million, while generating $9 million of free cash flows. The company ended the first quarter with cash and cash equivalents of $91.9 million, thereby allowing it to fund its growth initiatives. Moreover, Precedence Research predicts global LMS market growth at an annualized rate of 18% between 2024 and 2034. Amid the growing addressable market, Docebo is investing in artificial intelligence (AI) to develop AI-powered products and features to strengthen its market share and drive its financials. Meanwhile, Docebo's management forecasts its 2025 topline to grow by 9-10%, while its adjusted EBITDA margin is expected to come binìetween 17-18%. The 2025 EBITDA margin guidance represents an improvement from 15.5% in 2024. Given its growth prospects, improving profitability, and discounted stock price, I am bullish on Docebo. The post 2 Canadian Growth Stocks to Buy Now While They're on Sale appeared first on The Motley Fool Canada. Should you invest $1,000 in Docebo right now? Before you buy stock in Docebo, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Docebo wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Docebo and Lightspeed Commerce. The Motley Fool has a disclosure policy. 2025
Daily Mail
19-07-2025
- Business
- Daily Mail
TEMPLETON EMERGING MARKETS TRUST: Teamwork helps master emerging markets
TEMIT, the country's oldest emerging markets investment trust, is in fine form. Although its manager says there are 'negatives' out there on the horizon, he sees no reason why the asset class can't deliver long-term annual returns in the high single-digits. Acronym TEMIT stands for Templeton Emerging Markets Trust, a fund launched in 1979 with Mark Mobius (aka 'Mr Emerging Markets') at the helm. Today, the £1.9 billion UK-listed fund is run by Chetan Sehgal out of Singapore and Andrew Ness, from Edinburgh. 'We're a team,' says Sehgal, in London for the trust's annual general meeting. 'Every investment idea for the trust is discussed.' The pair are supported by analysts across the globe – from China and India in Asia to Dubai in the Middle East and Argentina in South America. The performance numbers are good. When measured against similar trusts investing in emerging markets across the world, it is best in class over the past one and three years. So over the past year a 19 per cent return compares to the respective 15 and 9.9 per cent gains registered by Fidelity Emerging Markets and JPMorgan Emerging Markets. Over three years, the respective gains are 41.8, 35.4 and 14.5 per cent. Over the past five years, its 36.4 per cent return is beaten by both Utilico Emerging Markets and Mobius Investment Trust (also set up by Mark Mobius). Sehgal says the emerging markets investment story remains powerful, fuelled by the 'sustainable earnings power' of many leading companies. He also believes the improvement in corporate governance has been a positive. The trust's portfolio, comprising 87 stocks, has some corporate names among its biggest positions. They include Taiwan Semiconductor Manufacturing Company (TSMC), its largest holding at just under 13 per cent. Also, Indian banks ICICI and HDFC. Sehgal describes TSMC as having 'tremendous' earnings growth potential while he says banking (in countries such as India and also Brazil) is a powerful 'penetration story' on the back of growing urbanisation and the need for consumers to have a bank account. Another key holding, thriving on the back of India's expanding urbanisation, is food delivery company Eternal, owner of the popular app Zomato. 'India doesn't have a convenience store network,' says Sehgal. 'So Eternal has done really well in the big cities where everyone wants something in a jiffy – whether it's flowers delivered to a loved one, a gold coin gift on a festival day or just a need for some essential groceries.' Tariffs on exports to the US remain an issue for emerging markets – as do geopolitical issues, especially between Taiwan and China. 'It's a big headwind,' says Sehgal of the ongoing tension between neighbours separated by the Taiwan Strait. 'But there is no guarantee that it will end in military conflict – the current status quo is a possible solution.' He says many Taiwanese companies, including TSMC, are also responding by setting up manufacturing operations elsewhere in the world. Although the trust invests in Chinese companies – top-ten holdings include tech giants Alibaba and Tencent – Sehgal says that it will remain underweight for the time being. The fund's stock market code is BKPG0S0 and ticker TEM. Total annual charges are reasonable at 0.96 per cent and the trust pays a dividend equivalent to an annual yield of 2.7 per cent.
Bloomberg
02-07-2025
- Business
- Bloomberg
The US Stock Market's Critical Test Comes This Month
With the S&P 500 trading more than a third above its 10-year average for expected profits, and high-risk shares leading the benchmark's charge to new highs, the US stock market looks more vulnerable than ever. The combination of overvaluation, economic vulnerability and the current downward trend in long-term returns should matter to everyone, even investors in it for the long haul. This month poses a critical test for the rally's sustainability. Here's one way to think about where things stand:
Yahoo
07-06-2025
- Business
- Yahoo
2 top FTSE 250 investment trusts to consider for a SIPP
There are dozens of investment trusts across the FTSE 250, offering exposure to all sorts of sectors and geographies. Here are two that I think are worth considering for a SIPP. In this account, they would have time to compound and — ideally — generate solid long-term returns. First up is Baillie Gifford US Growth Trust (LSE: USA), which pretty much does what it says on the tin. However, what separates this from similar trusts is the ability to invest up to 50% of assets in private growth companies. Today, unlisted firms make up 37% of the portfolio. Admittedly, this adds extra risk because these can be harder to value. Also, by definition, they tend to be less mature enterprises, meaning there's greater risk of some going bust. However, the trust only needs to back a small handful of generational private companies to do well long term. One is SpaceX, the rocket and satellite internet pioneer that is today the largest holding. It's up tenfold in value since 2018! Beyond this, the trust is invested in loads of top-tier public companies that I expect to be larger in future. These range from internet payments firm Stripe to streaming juggernaut Netflix and language learning leader Duolingo. Other tech names include Amazon and Meta. Just as the US led the way during the rise of the internet, it is doing so again with generative AI. We think this new technology is consequential and will usher in a period of change on a scale that we haven't seen since the industrial revolution. The trust's shares are currently trading at an 8% discount to net asset value, which I think looks attractive. It continues to buy back shares in an attempt to control the discount. The second trust is another from Baillie Gifford, namely Pacific Horizon Investment Trust (LSE: PHI). The managers aim to invest in the top 20% of the fastest-growing companies in Asia. Now, words like 'Pacific' and 'Asia' might immediately ring alarm bells because of all the uncertainty around global trade. The trust has 31% invested in China, the world's second-largest economy, and another 9% in Vietnam. Both could be hit hard by US tariffs, assuming they stay punishingly high. That said, now is arguably a great time to consider investing for the long run. Asian companies and economies are still likely to become much more influential in future, despite President Trump's best efforts. Just look at China's BYD (not a holding), which is overtaking Tesla in selling EVs. Or Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading maker of advanced chips. It is Pacific Horizon's largest holding. I doubt such firms' upwards trajectory will be permanently impaired by US tariffs. Combining Asia's favourable macroeconomic position with its structurally faster growth rates and valuations at multi-year lows relative to developed markets, Asia ex Japan appears to be in a sweet spot. Pacific Horizon also offers exposure to India (16.8%) and Korea (10.6%), as well as strategically important firms like Zijin Mining (one of China's largest producers of gold and copper). Again, the shares trade at a discount to NAV (9.2%). I think they're worth a look for a SIPP. The post 2 top FTSE 250 investment trusts to consider for a SIPP appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Ben McPoland has positions in Duolingo and Taiwan Semiconductor Manufacturing. The Motley Fool UK has recommended Amazon, Duolingo, Meta Platforms, Taiwan Semiconductor Manufacturing, and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
