Starbucks Sales Still Show Weakness. Same-Store sales Dip 2%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
Builders FirstSource, Inc. (BLDR): A Bull Case Theory
We came across a bullish thesis on Builders FirstSource, Inc. on Darius Dark Investing's Substack. In this article, we will summarize the bulls' thesis on BLDR. Builders FirstSource, Inc.'s share was trading at $135.63 as of July 28th. BLDR's trailing and forward P/E were 17.39 and 16.86, respectively according to Yahoo Finance. A crane carrying heavy building materials, representing the robust civil engineering products of the company. Builders FirstSource (BLDR), the largest supplier of structural building products and value-added services in the U.S., stands out for its integrated model, spanning lumber, engineered wood, and specialty materials, alongside custom fabrication and installation services that together represent nearly half of revenue. These high-margin offerings create deeper customer ties and insulate earnings from pure commodity price swings. With 590 locations across 43 states, BLDR's reach across homebuilders, commercial contractors, and remodelers provides resilience and purchasing power in a fragmented market. However, the backdrop remains challenging: U.S. housing faces affordability constraints from ~7% mortgage rates, tight inventories, and uneven construction activity, with single-family starts expected to rise modestly in 2025 even as multifamily softens. BLDR's Q1 2025 results reflected these pressures, with sales down 6% year-over-year to $3.7 billion, adjusted EBITDA contracting 31.7% to $369 million, and free cash flow plunging to $45 million. Guidance for 2025 implies EBITDA margins of 10.6–12.3% with acquisitions driving most top-line growth, underscoring ongoing organic headwinds. Management remains focused on a long-term strategy anchored in digital transformation, with processing over $1.5 billion in orders and 42% of 2024 volume already digital, aiming to embed BLDR into customer workflows. Aggressive M&A, such as the $828 million acquisitions of Alpine Lumber and O.C. Cluss, and an $8 billion buyback program that retired nearly half the share base since 2021, reinforce confidence in cash deployment. Trading at 12.7–13.8× earnings, BLDR's valuation reflects cyclical risks yet offers upside if digital adoption, value-added growth, and capital returns offset housing headwinds, making the stock appealing for patient investors. Previously, we covered a on Carlisle Companies Incorporated (CSL) by Max Dividends in April 2025, highlighting its dominance in commercial construction materials, operational resilience, and Vision 2030 growth targets. The stock has appreciated about 12.66% since our coverage, as the modernization cycle supports demand. The thesis still stands on solid fundamentals. Darius Dark shares a similar view but stresses BLDR's integrated model, digital expansion, and capital allocation. Builders FirstSource, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held BLDR at the end of the first quarter which was 59 in the previous quarter. While we acknowledge the potential of BLDR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
2 minutes ago
- Yahoo
Ultragenyx Pharmaceutical Inc. (RARE): A Bull Case Theory
We came across a bullish thesis on Ultragenyx Pharmaceutical Inc. on Valueinvesting subreddit by bluespacecolombo. In this article, we will summarize the bulls' thesis on RARE. Ultragenyx Pharmaceutical Inc.'s share was trading at $27.61 as of July 28th. A scientist in a laboratory coat looking into a microscope at human bone regeneration samples. Ultragenyx Pharmaceutical (RARE) has seen its share price halve in just two weeks, largely due to a halted trial and an FDA rejection, but the market appears to have overreacted. The company's Phase 3 trial for setrusumab, a potential blockbuster therapy for a rare bone disease, failed to meet an early 'stop-for-efficacy' milestone, yet the study remains on track, with safety intact and final results expected in late 2025 under less stringent endpoints. Meanwhile, the FDA issued a complete response letter for another gene therapy candidate, citing manufacturing issues rather than safety or efficacy concerns. The program remains viable, with a resubmission expected once production adjustments are made. Despite these setbacks, Ultragenyx continues to generate meaningful revenue, posting $139 million in Q1 and guiding for over $640 million in 2025, and maintains a robust cash position of around $560 million, with management projecting lower cash burn. Beyond setrusumab, the company's pipeline is well diversified, featuring DTX401, a gene therapy for glycogen storage disease that met Phase 3 goals and is slated for FDA submission this year, as well as an advanced Angelman syndrome program in Phase 3. None of the recent regulatory or clinical updates involved failures of safety or efficacy, leaving the scientific foundation of the pipeline intact. Analysts' average price targets remain near $100, implying a potential threefold upside from the current ~$26 level. With solid fundamentals, multiple near-term catalysts, and a temporarily depressed valuation, Ultragenyx represents a compelling contrarian opportunity as panic-driven selling unwinds. Previously we covered a bullish thesis on Capricor Therapeutics, Inc. (CAPR) by androidmj in March 2025, which highlighted the upcoming FDA decision on Deramiocel, strong financial backing, and significant upside on approval. The company's stock has depreciated about 46.32% since then as the thesis has yet to play out. The thesis still stands given CAPR's cash runway and de-risked catalyst. bluespacecolombo shares a similar view on the biotech space but emphasizes Ultragenyx's diversified pipeline, overreaction-driven selloff, and near-term catalysts. Ultragenyx Pharmaceutical Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held RARE at the end of the first quarter which was 57 in the previous quarter. While we acknowledge the potential of RARE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. 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
2 minutes ago
- Yahoo
Tesla Offers Musk $30 Billion to Stay--With Strings Attached
Tesla (NASDAQ:TSLA) just handed CEO Elon Musk a massive new stock awardworth around $30 billiondesigned to keep him anchored at the helm while the company weathers legal battles and business headwinds. The package includes 96 million shares at a $23.34 exercise price, and it only kicks in if Musk stays in a senior leadership role for another two years. It's a stopgap move while the board appeals a court decision that voided his original 2018 compensation plan. That plan, once pegged at $56 billion, has become a flashpoint for investors and governance advocates alike. The interim award signals Tesla's intent to keep Musk focused during a volatile phase for the business. Tesla's board calls this a good faith gestureand timing matters. After a tough first half marked by declining sales, falling revenue, and a 25% YTD drop in share price, the company is leaning heavily on Musk's leadership to navigate what it describes as a critical inflection point. According to Wedbush analyst Dan Ives, the new agreement helps remove a lingering cloud over the stock and likely cements Musk's role for the foreseeable future. The board is also developing a longer-term pay structure, to be voted on at the November 6 shareholder meeting. But leadership retention isn't the only thing on the line. Musk's attention has been split across multiple venturesSpaceX, xAI, X Corp, Neuralink, The Boring Companyand his recent political entanglements haven't helped. The board acknowledges these distractions but says Musk remains central to Tesla's ability to attract and retain talent. Meanwhile, Tesla is trying to build momentum around its new robotaxi program, launched in Austin, which could be a long-term growth lever. Whether this compensation reset keeps Musk focused on Teslaor just buys timeis what investors will be watching next. This article first appeared on GuruFocus. Sign in to access your portfolio
