1 Surging Stock to Keep an Eye On and 2 to Turn Down
While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two best left ignored.
One-Month Return: +22.6%
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men's grooming.
Why Do We Steer Clear of EL?
Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
Operating margin declined by 12.1 percentage points over the last year as its sales cratered
Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Estée Lauder's stock price of $91.47 implies a valuation ratio of 41.8x forward P/E. If you're considering EL for your portfolio, see our FREE research report to learn more.
One-Month Return: +19.9%
With its name deriving from a combination of 'generating' and 'AC', Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use.
Why Are We Out on GNRC?
Flat sales over the last two years suggest it must find different ways to grow during this cycle
Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.1 percentage points
Eroding returns on capital suggest its historical profit centers are aging
At $151.47 per share, Generac trades at 18.5x forward P/E. To fully understand why you should be careful with GNRC, check out our full research report (it's free).
One-Month Return: +17.1%
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components.
Why Are We Positive On DXPE?
Operating margin improvement of 5.6 percentage points over the last five years demonstrates its ability to scale efficiently
Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Rising returns on capital show management is finding more attractive investment opportunities
DXP is trading at $91.46 per share, or 16.6x forward P/E. Is now the right time to buy? Find out in our full research report, it's free.
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 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-small-cap company Comfort Systems (+782% 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Fed Chair Powell's finally fighting back as the White House looks to fire him "for cause"
Federal Reserve Chairman Jerome Powell may finally have had enough of the White House's pressure campaign to have him either slash rates or resign. For months, Powell has resisted reacting to constant public berating from President Donald Trump, but the final straw may have come last week when White House advisers alleged Powell either lied to Congress about the Fed's headquarters renovation or grossly mismanaged it. Either of those, if proven true, could give Trump cover to fire Powell 'for cause.' Powell and the Fed are finally fighting back. Over the weekend, the Fed quietly posted a FAQ explaining what happened with the renovation of the Fed's headquarters, and Powell reportedly has asked the central bank's inspector general to review its $2.5 billion headquarters renovation project. A Powell firing could sow doubts over the Fed's independence and wreck the central bank's credibility to manage monetary policy unfettered by policy makers. 'Equities would likely sell off on impact, on a risk-off flight to safety trade,' said Padhraic Garvey, regional head of research, Americas, at Dutch bank ING. 'After all, this would be an effective forced exit of a reputable Fed Chair by the U.S. president, an unprecedented event for the market to get its head around. "But thereafter, equities could quickly reassess and choose to rally, on the theory that deep cuts in rates are a boon for corporates, as is a potentially steamy economy," he said "And inflation is not necessarily a bad thing for equities." The original cost of the renovation of the Fed's three office buildings overlooking the National Mall in Washington D.C. was estimated at $1.9 billion in 2019 but swelled to $2.5 billion. The more than 33% increase in budget was due to design changes, costs of materials, equipment, and labor and other 'unforeseen conditions' like more asbestos than anticipated and toxic contamination in soil, the Fed's FAQ said. Last week, Trump's budget director Russell Vought wrote a letter suggesting Powell either made false statements to Congress about the expensive renovation or failed to comply with permitting rules around capital-area construction. Trump also named three White House advisers to the National Capital Planning Commission, which must sign off on major construction projects in the area. Vought called out, among other things, luxe VIP dining areas and rooftop terrace gardens. However, the Fed's FAQ says 'no new VIP dining rooms are being constructed' and 'garden terrace' refers to 'the ground-level front lawn of 1951 Constitution Avenue, which serves as the roof of the parking structure beneath.' It also noted 'Green roofs are found on other federal government buildings, like the Departments of Justice, Interior, and many others, and are encouraged by the General Services Administration.' To some, Powell has already done damage, whether he stays on as Fed chair. 'It is easy to argue the market has lost confidence in the Fed,' said Nancy Tengler, chief executive of Laffer Tengler Investments. She noted some of what she sees as Powell missteps as Fed chair, including raising rates in 2018, which she says caused the 'intra-year bear market in response to Trump 1.0 tariffs. He was forced to capitulate months later.' Then in 2021, the Fed 'waited way too long to hike rates as inflation morphed from a controlled burn into a wildfire' that allowed consumer prices to soar to 9.1% by June 2022, Tengler said. Other economists say if Powell goes, the impact could be limited. 'Basically, it is likely that this would lead to a sizeable initial sell-off that could be calmed by the other governors forcibly reiterating Fed independence,' said Jim Reid, Deutsche Bank's global head of economics and thematic research. ING's Garvey said likely, 'an early departure of Powell would be followed quickly by a replacement super-dove as head of the Federal Reserve.' A dove is someone who leans toward keeping interest rates low to grow the economy, compared with a hawk who favors higher interest rates to keep inflation controlled. But even with a 'super-dove' atop the Fed, Garvey questions how much policy would change. 'We can acknowledge that the (Fed's policy-making arm) would swing more dovish than it has been. But we can't conclude that the Committee would then cut rates just because Trump commands it. In the end, it's a majority decision, and the Committee is likely to remain as divided as the latest minutes suggest, but with a bias to keep rates on hold until the coast is clear to cut them.' Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Could renovations finally sink Fed chair and stocks? Experts weigh in Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
24 minutes ago
- Yahoo
Trump to send Ukraine weapons through NATO, threatens secondary tariffs on Russia
President Donald Trump is stepping up his support for Ukraine amid Russia's ongoing attacks and resistance to peace efforts after more than three years of war. Trump announced July 14 that the United States is sending weapons to NATO, which plans to transfer the equipment to Ukraine, and also threatened steep tariffs aimed at impacting Russia's ability to finance the war. Trump said that the United States would put secondary tariffs on countries that do business with Russia if a peace deal is not reached within 50 days. 'We're going to be doing very severe tariffs if we don't have a deal in 50 days," Trump said. The announcement marked a major shift by Trump to increase U.S. pressure on Moscow to make a quick deal. It came during a meeting with NATO Secretary General Mark Rutte in the Oval Office. Trump promised to end the war in Ukraine quickly, but has expressed increasing frustration with Russian President Vladimir Putin as a ceasefire proves elusive. 'I'm disappointed in President Putin because I thought we would have had a deal two months ago, but it doesn't seem to get there," Trump said. Trump said Putin is a "tough guy" who has "fooled a lot of people" over the years but "he didn't fool me." The president indicated he's weary of fruitless negotiations and said he wants "action." "It's gotta be results," Trump said. The new military aid for Ukraine is being financed by European nations. Trump has complained about the massive cost of supplying Ukraine with weapons and pushed Europe to shoulder more of the burden. 'We're in for a lot of money, and we just, we don't want to do anymore," Trump said July 14. Rutte said Trump called him last week to relay his position on arming Ukraine. Trump told the NATO leader he wanted to ensure Ukraine can 'defend itself against Russia, but you want Europeans to pay for it,' Rutte said. Rutte said the deal is 'really big,' and builds on the Trump administration's efforts to push European countries to spend more on NATO. 'It will mean that Ukraine can get its hands on really massive numbers of military equipment,' Rutte said, describing it as 'only the first wave, there will be more.' Trump's posture toward Ukraine has evolved since he took office. He criticized Ukrainian President Volodymyr Zelenskyy during a dramatic Oval Office clash in February and briefly paused military aid and intelligence sharing. The Pentagon also halted some weapons shipments to Ukraine this month amid a review of U.S. military stockpiles. Trump reversed the decision last week and revealed his plan over the weekend to send Ukraine additional air defense systems. Zelenskyy thanked Trump in a July 14 social media post for his "willingness to support Ukraine and to continue working together to stop the killings and establish a lasting and just peace." The Ukrainian leader said he spoke with Trump and they discussed how to "provide better protection for people from Russian attacks and to strengthen our positions." Trump said the United States would be sending Patriot missiles and batteries to Ukraine that would arrive within days. Several countries that already have Patriots will transfer them to Ukraine and the United States will send those countries replacement weapons. U.S. officials have been pushing for a ceasefire, which Ukraine agreed to in March. Russia has not signed onto the agreement, though, and Trump has repeatedly lashed out at Putin in recent weeks. This article originally appeared on USA TODAY: Donald Trump threatens secondary tariffs on Russia amid Ukraine war
Hamilton Spectator
24 minutes ago
- Hamilton Spectator
What Trump's new weapons plan for Ukraine might mean
WASHINGTON (AP) — President Donald Trump has endorsed a plan to have European allies buy billions of dollars worth of U.S. military equipment that can be transferred to Ukraine as Kyiv looks for way to better defend itself against intensified Russian attacks. Trump announced the effort Monday during an Oval Office meeting with NATO Secretary-General Mark Rutte, who has been working with European countries to coordinate the purchase of U.S. weapons. The plan is designed to allow the U.S. to funnel more firepower to Ukraine to combat invading Russian forces during their summer military offensive while easing Washington's financial burden. Increased weapons shipments, combined with possible new penalties Trump has promised if a halt to the fighting isn't reached in 50 days, could push Russian President Vladimir Putin into peace talks that Trump has championed for months — so far with little to show for it. Here's a look at what Trump promised and what it might mean: What's the new Ukraine weapons deal Trump announced? The U.S. plans to sell Patriot missile batteries — systems ideal for shielding territory against incoming missile attacks — and other weapons to European allies that would be transferred to Kyiv. 'We're going to supply weapons to NATO at a large amount,' Trump said. Rutte said Germany, Finland, Canada, Norway, Sweden, the United Kingdom and Denmark would be among the buyers to supply Ukraine, and noted that 'speed is of the essence here.' Later Monday, during a meeting with his administration's faith office and business leaders, Trump said, 'They're going to deliver the weapons, and they're going to pay for 100% of the weapons.' The president had earlier teased the announcement , but the details of the transfers — exactly what munitions they would include, the specifics of their delivery and their timing— were unclear. Other parts of the administration deferred to the White House, where officials said details were still being worked out. On a call with the other foreign ministers of the Quad grouping — India, Japan and Australia — Secretary of State Marco Rubio 'underscored that it remains a priority of President Trump to bring the war to an end through a durable negotiated settlement,' State Department spokesperson Tammy Bruce said. German Defense Minister Boris Pistorius met with Defense Secretary Pete Hegseth at the Pentagon to discuss some details — particularly related to the Patriot batteries — and noted greater defense spending. 'We are determined to assume greater responsibility for Europe's deterrence and defense,' said Pistorius, whose government has offered to finance two additional Patriot systems. In addition to Germany, Greece and Spain are among the NATO members believed to have spare Patriots to send to Ukraine, as long as they are eventually replaced. U.S. officials said that anything to be supplied to Ukraine in the short term will have to come from existing stockpiles and that it will take several years to replace whatever is sent to Kyiv. What does Ukraine need from the U.S.? Russia has pounded Ukrainian cities with hundreds of drones and cruise and ballistic missiles that its air defenses are struggling to counter. At the same time, Russia's bigger army is making a new effort to drive back Ukrainian defenders on parts of the 620-mile (1,000-kilometer) front line. Trump announced last week that the U.S. planned to send more defensive weapons to Ukraine , following a prior pause in some deliveries during a review of U.S. stockpiles. Still, the president expressed frustration about U.S. resources going to Ukraine, reiterating Monday that 'this is not Trump's war. We're here to get it finished and stopped.' During the meeting with Rutte, he also praised European leaders for being willing to take on a larger responsibility for arming Ukraine — a far cry from once criticizing Europe for failing to spend more on defense. 'I have to tell you, Europe has a lot of spirit for this war,' Trump said. 'When I first got involved, I didn't think they did, but they do.' Why is Trump threatening tariffs to punish Russia? Trump again vented his frustrations about stalled negotiations to end the war , saying the U.S. will impose steep trade penalties if Moscow doesn't reach a peace deal with Kyiv in the next 50 days. 'Tariffs at about 100% — you'd call them secondary tariffs,' Trump said without providing details. Secondary tariffs would target Russia's trading partners in an effort to isolate Moscow in the global economy — potentially including nations that rely on Russia for oil and natural gas. Commerce Secretary Howard Lutnick later clarified that Trump was actually referring to economic sanctions, rather than tariffs. Separately, some Republicans close to Trump, including South Carolina Sen. Lindsay Graham, are promoting a bipartisan sanctions package targeting Russia that is working its way through Congress. Trump said Monday that 'I'm not sure we need it' given his threat for economic consequences if the fighting continues. But, he added, 'it could be very useful, we'll have to see.' An emboldened Russia has ramped up military offensives on two fronts in Ukraine , seeking an advantage before the fighting season wanes in the fall. Trump's 50-day deadline will allow Kremlin forces to further expand into the strategic eastern logistics hub of Pokrovsk , the capture of which would hand them a major battlefield victory and bring them closer to acquiring the entire Donetsk region . Russia's forces also have been pushing into Ukraine's northern Sumy region, where Putin hopes to create a 'buffer zone' to protect Russia's Kursk and Belgorod regions and defend against the possibility of surprise Ukrainian incursions . Why has Trump changed his tone toward Putin? Trump long boasted of his friendly relationship with Putin, repeatedly asserting that Russia was more willing than Ukraine to reach a peace deal. At the same time, Trump accused Zelenskyy of prolonging the war and called him a 'dictator without elections.' But Russia's relentless onslaught on civilian areas of Ukraine has worn down Trump's patience. In April, he urged Putin to 'STOP!' launching deadly barrages on Kyiv, and the following month he said in a social media post that the Russian leader 'has gone absolutely CRAZY!' Trump said Monday that he remains in frequent contact with Putin but questioned how much those talks have gotten him. 'My conversations with him are very pleasant, and then the missiles go off at night,' Trump said. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
