Thapana Onphalai/iStock via Getty Images The following segment was excerpted from this fund letter. Intapp, Inc. (NASDAQ:INTA) We also initiated a position in Intapp, Inc. Founded in 2000, Intapp provides cloud-based software for regulated professional services industries such as legal, accounting, consulting, private capital markets, and investment banking. Intapp’s software helps manage and automate many…
gerisima/iStock via Getty Images Investment Thesis Years of lower sales, shrinking ROIC, and declining margins add to the many risks ahead for Leggett & Platt, Incorporated (NYSE:LEG). This Dividend King could even lose its crown if their situation does not improve. Bedding And Bedding Accessories Leggett & Platt is a company that makes various consumer-discretionary…
Sydney James/DigitalVision via Getty Images Investment Thesis McCormick & Company (NYSE:MKC) reported results on the 26th, March, beating on revenues and EPS so the share price jumped over 10%. MKC was founded in 1889 and is a dominant player in selling spices and seasonings to the food industry. They sport a wide moat, however, food…
Phynart Studio Investment Thesis I recommend selling the shares of Companhia Siderúrgica Nacional (NYSE:SID). The Brazilian steel industry is suffering from the large supply of Chinese steel in the domestic market. Additionally, there is no Government action to protect the national industry, this is due to the importance of China as Brazil’s trading partner. Domestic…
Nataly Hanin/iStock via Getty Images SoundThinking (NASDAQ:SSTI), formerly known as ShotSpotter, offers a suite of SaaS offerings to make law enforcement more effective and efficient. Trading at 2x sales with a $200 million market capitalization, SoundThinking is cheap for a SaaS company with a history of 15% annual growth and huge operating leverage. The company…
Robert Way Back in May, I wrote that while PDD Holdings (NASDAQ:PDD) looked attractively valued, controversy surrounding the company kept me on the sidelines. More recently I lowered my rating to “Sell” in September given a lack of disclosure of where its growth was coming from, particularly with regards to Temu. With the U.S. government…
Maskot/DigitalVision via Getty Images Investment Overview Moderna, Inc. (NASDAQ:MRNA) held an investor event today to review its vaccines program and provide key business updates. Before we dive into that, let’s quickly review recent performance. The company announced its Q4 and full year 2023 earnings and business updates on February 22nd. Moderna described 2023 as a…
Mario Tama/Getty Images News FedEx (NYSE:FDX) reported their fiscal Q3 ’24 financial results after the bell last Thursday night, March 21st, and while revenue missed estimates, EPS was well ahead of consensus, as was operating income. Revenue fell 2% YoY, while operating income for FDX rose 16% YoY, and EPS rose 13%. For fiscal Q4…
jetcityimage/iStock Editorial via Getty Images Petco Health and Wellness Company (NASDAQ:WOOF) operates over 1500 pet care centers in the United States, Mexico, and Puerto Rico, as well as pet veterinary hospitals, under the Petco brand. The company also has the Petco mobile app, providing information on pet care and a convenient way to order products…
Michael Vi It’s difficult to remember this maxim in a frothy market environment, but investors should always keep in the back of their heads that valuation matters. Amid all-time market highs, a rising tide will not lift all boats: especially expensive stocks that are starting to see their strong fundamental performance unwind. MongoDB (NASDAQ:MDB), unfortunately,…
Cris Cantón/Moment via Getty Images Investment thesis Our current investment thesis is: ODC appears to be an attractive proposition for exposure to alternative energies, with good innovation and production capabilities positioning ODC to rapidly increase its scale. Management appears talented, with a keen eye for innovation. Following operational improvements and an increase in unit economics,…
JHVEPhoto/iStock Editorial via Getty Images High Tide (NASDAQ:HITI) operates as a cannabis product retailer in Canada, the United States, as well as other countries. As Canada’s legalized cannabis, High Tide has begun to grow its retail network under the Canna Cabana brand, bringing value through the retail chain’s discount club. As of January 29th, Canna…
Robert vt Hoenderdaal/iStock Editorial via Getty Images The following segment was excerpted from this fund letter. Rentokil (NYSE:RTO) A dramatic 30% share price fall in reaction to a profit warning at Rentokil triggered Chris’s efforts to underwrite the pest control opportunity. In the merger integration with Terminix, one of the leading brands in the US…
FinkAvenue Investment Thesis Microsoft Corporation (NASDAQ:MSFT) is truly in its stride. The firm is executing their commercialization of AI strategy perfectly by providing users with great AI-enhanced versions of existing products. The latest fiscal Q2 results see Microsoft boasting great levels of revenue and margin growth, with the firm enjoying a solid mix of high-margin…
akinbostanci Investment Thesis Braze (NASDAQ:BRZE) stock’s expectations are relatively muted, even as the company is delivering strong results. I make the case that this stock is now on the point of inflection. Succinctly put, I believe that Braze could within the next 12 months, be on a forward run-rate of +5% non-GAAP operating margin. Consequently,…
RgStudio/E+ via Getty Images Nerdy, Inc. (NYSE:NRDY) is a small-cap online tutoring learning platform that has been public since 2021 through an overvalued SPAC deal of $1.7 billion. While the company has been around since 2007, it was really thanks to the COVID-19 pandemic that the business looked into the scalability of its solutions. And…
Joe Raedle Papa John’s (NASDAQ:PZZA) is addressing lagging commissary margins with a new system that it is rolling out now. It expects that over the next 4 years, it will double commissary margins, which should have a welcome effect on operating income growth, excluding the fact that it is also doing a decent job of…
Gerasimov174 We previously covered Tesla, Inc (NASDAQ:TSLA) in October 2023, discussing its decelerating Full Self-Driving (“FSD”) adoption, as demonstrated by the moderating service revenues and declining gross margins. Combined with the reversal in sentiments from the automaker’s impacted electric vehicle (“EV”) revenues and elevated inventory levels, we at that time believed that the stock’s elevated…
ThamKC/iStock via Getty Images I am bullish on Granite Construction Incorporated (NYSE:GVA) because its strategic plan is delivering higher margins and because of significant tailwinds from lower interest rates and the Infrastructure Act. About Granite The company operates through two segments, according to its 10-K for 2022: Construction: “focuses on construction and rehabilitation of roads,…
Joe Raedle Investment Thesis I wanted to take a look at J. M. Smucker (NYSE:SJM) as it recently bounced off its 52-week low. I wanted to take a look at its financials for some clues as to why it may have dropped in price so much. I believe the recent decline was due to the…
Ian Tuttle When I first looked at Roblox (NYSE:RBLX) in March, I placed a “Sell” rating on the stock, saying that while I thought it had an attractive fly-wheel business model, I thought the stock valuation was well ahead of itself. With the stock down about -30%, I upgraded the stock to “Hold” in October,…
Editor’s note: Seeking Alpha is proud to welcome Amphion Research as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Wongsakorn Dulyavit I like to find businesses that are…
sanfel Target Corporation (NYSE:TGT) is one of the largest and most successful retailers in the United States, with a market cap of $65.81 billion and annual revenue of nearly $110 billion. The company has been able to differentiate itself from its competitors by offering a wide range of products, from essentials to discretionary items, at…
Editor’s note: Seeking Alpha is proud to welcome Amrita Roy as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Khanchit Khirisutchalual Introduction and Investment Thesis monday.com (NASDAQ:MNDY) is…
Monty Rakusen Expectations were pretty robust for the aerospace industry in 2023, and orders have in fact come through, with 2023 industry-wide orders matching 2022 levels by the end of September. There have been some new challenges of late, including a product manufacturing issue at RTX (RTX) and a little weakness in global flight demand,…
Justin Sullivan Visa (NYSE:V) is an exceptionally large organization in the payment services industry. My analysis shows me it is the biggest player in terms of market share. The valuation of the company is not its strongest point (Quant Factor Grade F), but I believe it remains a must-have investment in my portfolio due to…
Charging Up An Electric Car At Night solarseven Tesla, Inc. (NASDAQ:NASDAQ:TSLA) has suffered a major decline in profitability over the last 12 months. In that period, it delivered $19 billion in gross profit on $96 billion in revenue. In 2022, it did $20.8 billion in gross profit on $81.4 billion in revenue, meaning that gross…
Jay Yuno Synopsis Riskified (NYSE:RSKD) is a company that offers software as a service specializing in fraud and chargeback prevention technology, particularly in the e-commerce sector. RSKD’s historical revenue growth has been robust, growing in the double-digit range. However, bottom-line margins are negative, and losses have expanded. These losses were mainly driven by rising SG&A…
carterdayne Investment Thesis BlueLinx Holdings Inc. (NYSE:BXC) is a cyclical company. BXC did not achieve any revenue growth over the 2005 to 2023 peak-to-peak Housing Starts cycle. Nevertheless, the company is fundamentally sound with improving margins and returns. I consider it a cash cow. The Housing Starts currently is at the long-term annual average level….
minoandriani/iStock via Getty Images Investment Thesis Lifeway Foods, Inc. (NASDAQ:LWAY) is an American health food company headquartered in Morton Grove, Illinois. In this thesis, I will analyze its third-quarter results and its future growth prospects. I will also be analyzing its valuation at current price levels and its upside potential. I believe it has managed…
Scott Olson Though the markets have rallied over the past few months, it’s difficult to recall sometimes that this year has been an especially tough climate for most businesses. We owe some due respect – and perhaps investment consideration – in the companies that have been able to make operational improvements amid this tough macroenvironment….
Justin Sullivan Oracle reports their fiscal Q2 ’24 quarter after the close tonight, with sell-side consensus expecting $1.32 in earnings per share on $13.0 billion in revenue and operating income of $5.57 billion for expected y.y growth of 9%, 6% and 9% respectively. The last (August ’23) quarter, the stock was hit hard after the…
Olivier Le Moal The Q3 Earnings Season for the precious metals sector is finally over, and one of the more recent companies to report its results was MAG Silver (NYSE:MAG). Unlike most other Mexican silver producers, MAG reported 60% plus all-in sustaining cost margins [AISC] and positive earnings despite the impact of a rising Mexican…
fotodzi/iStock Editorial via Getty Images The 10-Second Thesis I’ve had my eyes on AGCO Corporation (NYSE:AGCO) for a while, and obviously have kept tabs on Deere & Company (DE) as well since they are the main players in the industry. However, since I tend to favor small and mid-caps (62% of my portfolio), I have…
J. Michael Jones Investment thesis Our current investment thesis is: Winmark is an incredibly attractive niche. Management has positioned its business model to reduce risk and maximize cash returns, which has allowed for an EBITDA-M of 65%. We believe its financial performance is sustainable, with reasonable growth ahead as new franchisees sign up and retention…
Maksym Isachenko/iStock via Getty Images The Q3 Earnings Season for the Gold Miners Index (GDX) began last week, and one of the most recent companies to report its results is Equinox Gold Corp. (NYSE:EQX). Overall, the company had a better quarter with a 7% decline in all-in sustaining costs [AISC] and a 4% increase in…
da-kuk Check Point Software’s (NASDAQ:CHKP) third quarter results were fairly unimpressive, but it was notable that Check Point’s growth rate appears to have stabilized, and the company was far more upbeat about its prospects going forward. Only time will tell if Check Point’s optimism is reflective of improving conditions across the cybersecurity market or is…
hapabapa Earnings season has been dramatic. The S&P 500’s blended EPS growth rate for the quarter is solid at 2.7% – above what strategists had predicted heading into the Q3 reporting period. Despite the generally decent results, earnings revisions have been cautious and stock price reactions have been downright spooky. FactSet notes that companies beating…
John Phillips Twilio (NYSE:TWLO) is no longer a hyper-growth stock. At these valuations though, hyper-growth is no longer needed to justify valuations. TWLO has made impressive progress in driving expanding profit margins even as it faces decelerating top-line growth from a tough macro environment. The company has a sizable net cash position and is repurchasing…
Monty Rakusen Thesis Jabil Inc. (NYSE:JBL) has been making significant gains in market share and consistently expanding its revenue and profit margins. This success can be attributed to key partnerships with companies like Tesla in the electric vehicle sector, Johnson & Johnson in healthcare, and Amazon Web Services in cloud computing. Additionally, the company’s involvement…
Three Images/DigitalVision via Getty Images At a Glance As Viatris (NASDAQ:VTRS) contends with shrinking revenues and increasing R&D expenses, the company’s aggressive divestiture strategy reveals a dual focus on operational streamlining and deleveraging. This isn’t just a balance sheet exercise but a reorientation towards higher-margin opportunities, exemplified by the retention of high-equity brands like Viagra…
Joe Raedle Investment Thesis PepsiCo (NASDAQ:PEP) had a decent third quarter, with strong operating margins more than offsetting modest volume declines. In this article, I talk about the key highlights of the company’s third quarter, especially how the company’s strategy to sell smaller packs and the strong performance of the international business, position the company…
MTStock Studio/E+ via Getty Images Though many small and mid-cap tech stocks have enjoyed a massive YTD rally in spite of recent interest-rate fears, Smartsheet (NYSE:SMAR) is a major holdout. This collaboration software vendor has retraced back most of its gains this year owing to slower billings growth rates. The company has blamed all of…
Chris Graythen/Getty Images News SLB (NYSE:SLB), formerly known as Schlumberger, has been a strong performer over the past year, benefitting from increasing oil & gas drilling and exploration spending as it is the world’s premiere oilfield services firm. Shares have rallied nearly 50% since I recommended buying SLB last October. Even after this run, I…
kovop58 fuboTV (NYSE:FUBO) was one of the high-flying stocks that have crashed back down to earth given the situation in the market. Recently though fuboTV stock has rallied yet is still trading at a fraction of its price just two years ago. Is now a good time to enter? fuboTV Liquidity Not as Good as…
Ziga Plahutar/E+ via Getty Images Investment Thesis HireQuest Inc. (NASDAQ:HQI) has recently dropped on the earnings report and hasn’t recovered since. I wanted to take a look at its financial health to see if this has created an opportunity to jump in. The financial health is very strong in my opinion; however, the acquisition of…
MesquitaFMS/E+ via Getty Images Investment Thesis I wanted to take a look at SP Plus Corp.’s (NASDAQ:SP) financials to see whether it is a good time to invest in the company for the long haul. I believe that even with a slight improvement in gross margins, the company would be a buy, however, it will…
carlosgaw Introduction Funko (NASDAQ:FNKO) shares have fallen 35% YTD. Despite the fact that the quotes are down a lot and the company is valued relatively cheaply by multiples, I think it’s still not the best time to go long. Investment thesis In my personal opinion, revenue and operating margin growth will continue to be under…
LukaTDB/E+ via Getty Images Investors seem to be questioning the sustainability of Winnebago Industries’s (NYSE:WGO) revenue and operating margin gains. Winnebago’s TTM revenues are roughly twice pre-COVID levels, and Winnebago’s operating margins were 4-5% higher than 2017-2019 levels at one point. However, I believe that much of Winnebago’s revenue and operating margin gains are permanent….
Wirestock It was a mediocre Q2 Earnings Season for the Gold Miners Index (GDX), with minimal margin expansion despite the record realized gold price. This was related to continued inflationary pressures felt sector-wide that offset the benefit of lower fuel prices, and while a few producers managed to buck this trend, Gold Fields (NYSE:GFI) was…