courtneyk Introduction The share price of Forrester Research (NASDAQ:FORR) has seen quite the tumble over the past 24+ months, down nearly 70% from the start of 2022. Investors have been evidently displeased and looking at the numbers, it’s not hard to see why. Notwithstanding some growth in 2022, both sales and earnings have been declining…
VIKTOR FEDORENKO/iStock via Getty Images Synopsis James Hardie Industries (NYSE:JHX) specializes in the production and sale of fiber cement and fiber gypsum building solutions. JHX’s last three years financial results have shown consistent net sales growth. In addition, it was able to maintain its margins throughout the same period by focusing on selling higher-margin products…
tifonimages It’s been a much better Q2 than Q1 for the Gold Miners Index (GDX) with the price of gold successfully breaking out above the $2,070/oz level and providing a substantial lift to margins for the gold mining industry. And one name that will be a significant beneficiary of the recent gold/copper price strength is…
PonyWang Summary Readers may find my previous coverage via this link. My previous rating was a buy as I believed Entegris’ (NASDAQ:ENTG) growth had bottomed, and gross margins would see expansion moving forward; with both factors driving an upward revision of its multiple. As of April 8th, the ENTG share price has touched my target…
photobyphm Verizon Communications Inc. (NYSE:VZ) is a free cash flow-strong Telco that supplies passive income investor with a well-covered 6% yield that can make a big difference for retirees that rely on growing dividend income from their passive income investments. Though some investors see Verizon Communications’ considerable balance sheet debt as a burden, I think…
onurdongel GIC Searches For Stability I have been discussing Global Industrial Company (NYSE:GIC) in the past, and you can read the latest article here, published on January 9. The company continues strengthening its e-commerce sales channels and traditional marketing efforts. Its competitive pricing initiatives, including actions to lower freight costs and promotion, should gradually improve…
metamorworks The 1929 boom was, in fact, quite a narrow and selective one. It was a boom of the handful of stocks that figured in the daily calculation of the Dow Jones and New York Times indices, and that was why those well-publicized indexes were at record highs. It was also a boom of the…
luza studios Introduction I wanted to revisit Super Micro Computer, Inc. (NASDAQ:SMCI) to see how it has performed over the last year. Since my first Buy article on the company was published just half a year ago, the share price skyrocketed and is sitting at around 230% gain against S&P500’s (SPY) 17%, so if you…
Adam Smigielski Each month I feature several dividend paying stocks that I don’t think offer any margin of safety based on their business and current stock price. This theme irritates some dividend yield chasers, so I encourage you to vent in the comments. When investing, your goal ought to be to have a “margin of…
Daria Nipot Introduction Nearly one year ago, I wrote my first article on Amazon (NASDAQ:AMZN), called “Amazon: Breaking Up The Company From An Accounting Standpoint”. Here are my closing words from that article: I rate Amazon as a hold at the current price of $98.95 per share and will probably reevaluate my thesis sometime next…
primeimages In December last year, I issued a relatively bearish article on Barings BDC (NYSE:BBDC) despite the fact that it carries quite many fundamentally sound characteristics. There were three distinct aspects that underpinned my conservative stance on Barings: Unfavourable leverage. In the past 5 quarters, BBDC experienced a constant uptick in the leverage profile, while…
Neilson Barnard Elevator Pitch Squarespace, Inc. (NYSE:SQSP) shares are being upgraded to a Buy investment rating. I previously wrote about SQSP’s inorganic growth potential, the chances of the company becoming a takeover target, and how new business formation affects Squarespace’s prospects in my October 10, 2022 write-up. For this latest article, my attention lies with…
undefined undefined Summary Following my coverage of Driven Brands Holdings (NASDAQ:DRVN), for which I recommended a hold rating as I wanted to monitor the business’s ability to improve margins over the next few quarters, this post is to provide an update on my thoughts on the business and stock. I am now upgrading my rating…
Yuichiro Chino/Moment via Getty Images Investment Action I recommended a hold rating for Dun & Bradstreet Holdings (NYSE:DNB) when I wrote about it the last time, as I am negative about the underperformance that DNB is showing relative to peers in both growth and margins. Based on my current outlook and analysis, I recommend a…
Flashpop Investment thesis Our current investment thesis is: LESL’s valuation, which we consider far too high given the current risk profile, appears to price in a strong recovery in the near term. We believe there is limited visibility as to the company’s normalized margin levels, although are confident it will not return to its FY22…
KangeStudio Earnings of Amalgamated Financial Corp. (NASDAQ:AMAL) will likely increase this year on the back of loan growth and slight margin expansion. I’m expecting the company to report earnings of $3.11 per share, up 8.9% year-over-year. The year-end target price suggests a moderate upside from the current market price. As a result, I’m maintaining a…
Wolterk Synopsis Natural Grocers by Vitamin Cottage (NYSE:NGVC) is a retailer of natural and organic groceries and dietary supplements that aims to provide consumers with affordable, high-quality products. Although NGVC’s revenue growth has been accelerating over the last three years, it has not reached its 10-year median growth. On the flip side, margins have remained…
JEFF KOWALSKY/AFP via Getty Images Stellantis (NYSE:STLA) stock is trading higher after the automaker reported strong Q4 and FY 2023 results, while highlighting a commitment to achieve “at least a double-digit adjusted operating income margin in 2024”, on a €190+ billion topline expectations. In addition, Stellantis management delighted with the projection to distribute a yield-rich…
SrdjanPav/E+ via Getty Images Summary Following my coverage of Tempur Sealy International (NYSE:TPX), in which I reiterated my buy rating as I expected TPX company-specific initiatives to drive position results over the coming quarters, this post is to provide an update on my thoughts on the business and stock. I will continue to stay long…
J. Michael Jones Summary Since our initial report on Alpine Income Property Trust, Inc. (NYSE:PINE), the shares have been largely rangebound. The market reacted favorably to a [strong] Q4 ’23 earnings report, but promptly retraced back down to the ~$16/share level. This report provides our thoughts on the quarter, revised valuation, and outlook for the…
Orbon Alija In September of last year, I saw a connection in the case of TE Connectivity Ltd. (NYSE:TEL), on the back of a sound position, long-term growth, and reasonable valuations. The trouble with the company is that despite its positioning, the company has not fully lived up to its promises in terms of sales…
HAYKIRDI Disney (NYSE:DIS) reported their earnings on February 7th after market close, with a notable reduction in their Direct-to-Consumer business. I presented my ‘Buy’ thesis in my previous article, indicating that their Direct-to-Consumer segment is on the path to generating real profitability. I am impressed by their $3 billion share buyback plan in FY24. Therefore,…
aquaArts studio/E+ via Getty Images Seeking Alpha analysts have been cautious about investing in Cantaloupe (NASDAQ:CTLP) because of its high P/E ratio. And I was initially skeptical when, after recommending Asbury Automotive (ABG) to readers in November in part because David Abrams owns such a large stake, one of my readers recommended I look into…
tonefotografia/iStock via Getty Images Synopsis For every American homeowner, much effort and expertise in home servicing is needed in maintaining their living space, especially to avoid costly breakdowns of their essential appliances and home systems. With over 50 years of experience in home repair and maintenance and over 75 million service requests, Frontdoor (NASDAQ:FTDR) is…
SOPA Images/LightRocket via Getty Images Summary Readers may find my previous coverage here. My previous rating was a buy, as I believed Smartsheet (NYSE:SMAR) would see growth revert back to 30%, driven by continuous market share gains from existing Excel users and the conversion of free to paid users. As growth recovers, valuation should revert…
Jason Kempin Back in September, I wrote that I thought investors could take a starter position in RH (NYSE:RH), but that I’d like to wait a little longer to see how things play out. The reason is that home improvement is expected to start to decline in 2024 and there were still a lot of…
Paralaxis/iStock via Getty Images BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (NYSE:LND) is a land developer and farmer in Brazil, Paraguay, and Bolivia. The company currently owns about 215 thousand hectares, mostly in Brazil’s center and northeast. The company has been paying dividends and offers a discount to net asset value of about 45% at…
BlackJack3D The Cooper Companies (NASDAQ:COO) has been quite successful in their core contact lens industry, experiencing high-single-digit growth. The company has been expanding into the women’s health business, with the CooperSurgical business mix increasing from 17% a decade ago to 32% of total revenue today. I believe their strategic business expansion makes sense, and they…
AnuchaCheechang I am following up on my Q1 2023 thesis for América Móvil (NYSE:AMX) in light of JV changes and in advance of year-end earnings. I previously rated América Móvil a hold for the following reasons: Performance across countries was inconsistent, with strength in Brazil and Mexico partially offset by rate and volume challenges in…
Phynart Studio/E+ via Getty Images MSA Is On A Slow Growth Path I have discussed MSA Safety Incorporated (NYSE:MSA) in the past, and you can read the latest article here. Over the years, it has expanded into new geographies and complementary technologies. After Q3, the company focuses on gas detection products and firefighter safety equipment….
Toa55/iStock via Getty Images It has been quite a while since I last covered RPM International Inc. (NYSE:RPM). In the fall of 2016, I offered my last take on the shares of the sound capital allocator after it announced another bolt-on acquisition. In the years which followed, the company has seen solid growth, driven by…
Nikada Fidus Investment (NASDAQ:FDUS) is a BDC, which, as most BDCs, provides customized debt and equity financing solutions mostly to lower mid-cap businesses. The investment objective is also the same as across the BDC space – i.e., key focus on high yielding current income streams with a secondary objective to preserve and steadily grow the…
Itsanan Sampuntarat/iStock via Getty Images Introduction The Eastern Company (NASDAQ:EML) is a US-based company focusing on the design and manufacturing process of what it calls “engineered solutions to industrial markets.” While that sounds a bit vague, one of the company’s main business divisions is the Big 3 Products and Big 3 Mould division which focuses…
spxChrome Company Description Legacy Housing Corporation (NASDAQ:LEGH) – Consumer Durables – Homebuilding Founded in 2005, Legacy Housing Corporation (“the company”) is one of the leading manufacturers of prefabricated homes primarily operating in the southern United States. It offers a vertically integrated solution, from manufacturing to distribution (i.e., through 156 independent and 13 company-owned stores) and…
helen89 The Q3 earnings season for the restaurant industry saw mixed results overall, with weak quarters from several casual dining brands like Applebee’s (DIN), Cracker Barrel (CBRL), and Bloomin’ Brands (BLMN), offset by strong quarters from Restaurant Brands International (QSR), Chipotle (CMG), and Wingstop (WING). Fortunately, BJ’s Restaurants (NASDAQ:BJRI) was one of the better-performing names…
sanfel The Q3 earnings season for the restaurant industry is finally over and we saw mixed results overall. Evidence of this came from another weak report from Dine Brands (DIN) and significant traffic declines at Cracker Barrel (NASDAQ:CBRL), and we haven’t seen much improvement in industry-wide traffic since October. On a positive note, quick-service and…
beekeepx/iStock via Getty Images Investment Thesis Simpson Manufacturing Co., Inc. (NYSE:SSD) is a fundamentally sound company. Over the past 12 years, it has been able to improve its returns. Apart from growing revenue, there were improving operating efficiencies. The company achieved growth mainly through acquisitions. I would expect this strategy to continue. The company is…
Cristian Martin Vista Energy (NYSE:VIST) is one of the largest producers and the largest exporter of shale oil in Argentina’s Vaca Muerta basin. I wrote about the company in October 2021 (the second article on the company in Seeking Alpha, when the stock traded at $6.5 compared to $30 today) and in January 2023, both…
M. Suhail The Q3 Earnings Season for the restaurant industry is finally over and the results were mixed overall, with weaker reports out of names like Dine Brands (DIN) and Cracker Barrel (CBRL) offset by continued sales momentum for industry leaders like Restaurant Brands International (QSR) and Chipotle (CMG). Fortunately, share-price performance following the reports…
champpixs Aon (NYSE:AON) delivered very solid Q3 FY23 results, and I am continually impressed with their margin expansion and substantial share buybacks. As a long-term shareholder of this stable growth company, I maintain a ‘Strong Buy’ rating with a fair value of $390 per share. Quarterly Review and Outlook In Q3 FY23, both their top…
JHVEPhoto Potbelly Corporation’s (NASDAQ:PBPB) Q3 2023 earnings report confirms that its sequential sales growth is slowing. Adjusted for seasonality, Potbelly’s Q3 2023 sales were similar to its Q2 2023 sales, and its guidance for Q4 2023 indicates expectations for a similar sales level there too. I’d expect Potbelly to guide to flat to low-single digits…
4kodiak/iStock Unreleased via Getty Images As I write this Friday evening, e-commerce giant Amazon (NASDAQ:AMZN) is seeing labour strikes across countries. This is hardly an isolated event. As I had mentioned recently in the context of the banner EV company Tesla (TSLA), which has faced its own discontent from labour in Sweden, industrial action is…
andresr Summary Sprouts Farmers Market (NASDAQ:SFM) is a supermarket chain that sells organic, fresh produce. It offers a wide range of produce, from supplements to meat to dairy, and caters to health-conscious consumers. SFM’s 3Q23 is mixed as it shows revenue growth, but gross margin is contracting and costs are rising. The gross margin contraction…
sanfel Introduction LGI Homes, Inc (NASDAQ:LGIH) gained 6.3% after reporting earnings the morning of October 31. The timing was fortuitous. The good news of a return to pre-pandemic margin levels coincided with the beginning of the period of seasonal strength for the stocks of home builders which in turn is riding the coattails of a…
Zerbor/iStock via Getty Images By James T. Tierney, Jr. Recent labor agreements in the auto and airline industries spotlight the profitability conundrum facing US companies – and equity investors. Pricing power and cost containment are essential ingredients for companies looking to expand profit margins. We’ve seen this clearly in 2023, when some of the best-performing…
Robert Way XPeng (NYSE:XPEV) submitted a mixed earnings sheet for its third-quarter on November 15, 2023, but guided for significant delivery and top line growth in the final quarter of the year. While XPeng saw a substantial increase in third-quarter deliveries due to a return of consumer demand, the Chinese electric vehicle was not able…
cloki/iStock via Getty Images Elevator Pitch I rate Aptiv PLC (NYSE:APTV) stock as a Buy. My earlier January 31, 2023 update was focused on the preview of Aptiv’s financial results for the final quarter of last year, and the evaluation of APTV’s inorganic growth prospects. I highlighted the impact of the 2023 United Auto Workers…
Julia_Sudnitskaya/iStock via Getty Images Summary Graphic Packaging Holding Company (NYSE:GPK) is a leading provider of paper-based packaging solutions, mainly for the food, beverage, and consumer product segments. It specializes in the design and manufacturing of folding cartons, foodservice packaging, and other paper-based products. As a direct result of GPK’s third quarter results, which reported declining…
JHVEPhoto Sanmina Gives Weak 2024 Outlook and Stock Crashes On November 6, 2023, Sanmina Corporation (NASDAQ:SANM) released its Q4 earnings report. The company missed both revenue and EPS estimates, reporting $2.05B in revenue, a 7% YoY decline, and $1.42 in EPS, a 5% YoY decline. The company also gave a weak outlook, expecting revenue between…
PeopleImages Carrier Global Corporation (NYSE:CARR) announced its Q3 FY23 earnings on October 26th. The management is confident about delivering mid-single-digit organic revenue growth and a 15% adjusted EPS growth for the full year. I believe their cost control initiative is well-positioned for margin expansion in the coming years. Considering the recent market pullback, Carrier’s stock…