Latest news with #BAND
Yahoo
08-07-2025
- Business
- Yahoo
2 Russell 2000 Stocks to Target This Week and 1 to Turn Down
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here are two Russell 2000 stocks that could be the next breakout winners and one best left off your watchlist. Market Cap: $469.1 million Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity. Why Should You Dump BAND? Sales trends were unexciting over the last three years as its 13.9% annual growth was below the typical software company Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend Sky-high servicing costs result in an inferior gross margin of 38% that must be offset through increased usage Bandwidth is trading at $15.76 per share, or 0.6x forward price-to-sales. If you're considering BAND for your portfolio, see our FREE research report to learn more. Market Cap: $8.42 billion Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ:ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions. Why Does ENSG Stand Out? Unit sales averaged 13.2% growth over the past two years and imply healthy demand for its products Forecasted revenue growth of 14.3% for the next 12 months indicates its momentum over the last two years is sustainable Earnings growth has trumped its peers over the last five years as its EPS has compounded at 18.4% annually At $145.13 per share, The Ensign Group trades at 22.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Market Cap: $1.47 billion Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ:CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care. Why Do We Like CLOV? Annual revenue growth of 23.8% over the past five years was outstanding, reflecting market share gains this cycle Earnings per share grew by 19% annually over the last four years, massively outpacing its peers Free cash flow profile has reached break even, showing the company has crossed a key inflection point Clover Health's stock price of $2.96 implies a valuation ratio of 39.4x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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 Sign in to access your portfolio
Yahoo
27-06-2025
- Business
- Yahoo
1 Unprofitable Stock with Exciting Potential and 2 to Brush Off
Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth. A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here is one unprofitable company that could turn today's losses into long-term gains and two that may never reach the Promised Land. Trailing 12-Month GAAP Operating Margin: -1.9% Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity. Why Do We Think BAND Will Underperform? Revenue increased by 13.9% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend Gross margin of 38% is way below its competitors, leaving less money to invest in areas like marketing and R&D Bandwidth is trading at $14.59 per share, or 0.6x forward price-to-sales. Read our free research report to see why you should think twice about including BAND in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: -5% Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ:KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology. Why Are We Cautious About KRUS? Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 4.6 percentage points Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge Cash-burning history makes us doubt the long-term viability of its business model At $82.30 per share, Kura Sushi trades at 1,261.2x forward P/E. Dive into our free research report to see why there are better opportunities than KRUS. Trailing 12-Month GAAP Operating Margin: -3.4% Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development. Why Will TEAM Outperform? Billings growth has averaged 14.7% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale TEAM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders Atlassian's stock price of $198.78 implies a valuation ratio of 8.8x forward price-to-sales. Is now the time to initiate a position? 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 5 Strong Momentum Stocks for this week. 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-micro-cap company Kadant (+351% 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
Yahoo
11-06-2025
- Business
- Yahoo
BAND Q1 Earnings Call: Enterprise Voice and AI Drive Platform Expansion
Communications platform-as-a-service company Bandwidth (NASDAQ: BAND) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 1.9% year on year to $174.2 million. Guidance for next quarter's revenue was better than expected at $179 million at the midpoint, 1% above analysts' estimates. Its non-GAAP profit of $0.36 per share was 33.3% above analysts' consensus estimates. Is now the time to buy BAND? Find out in our full research report (it's free). Revenue: $174.2 million vs analyst estimates of $168.9 million (1.9% year-on-year growth, 3.1% beat) Adjusted EPS: $0.36 vs analyst estimates of $0.27 (33.3% beat) Adjusted Operating Income: $15.46 million vs analyst estimates of $11.96 million (8.9% margin, 29.3% beat) The company slightly lifted its revenue guidance for the full year to $752.5 million at the midpoint from $750 million EBITDA guidance for the full year is $87.5 million at the midpoint, above analyst estimates of $86.38 million Operating Margin: -2.7%, up from -6.1% in the same quarter last year Market Capitalization: $451.2 million Bandwidth's first quarter results were buoyed by strong demand for its cloud communications services, particularly in the enterprise voice segment. CEO David Morken highlighted that over half of enterprise customers now use the Maestro or AI Bridge platforms, underscoring their growing adoption to address complex communication needs in sectors like healthcare and financial services. Noteworthy customer wins included a major Midwest healthcare provider and a group of hospitals integrating Bandwidth's solutions for enhanced reliability and AI-powered voice agents. Management also attributed growth to new and expanded partnerships with managed service providers and system integrators, which accelerated large-scale deployments. These factors, along with increased cross-sell and up-sell activity, contributed to a rise in average annual revenue per customer and higher net retention rates. Looking ahead, Bandwidth's guidance is shaped by expectations of continued double-digit growth in its core platform offerings, driven by the increasing adoption of AI voice agents and further expansion of its channel partnerships. CFO Daryl Raiford noted that, while macroeconomic uncertainty persists, the company's diversified base—particularly its essential enterprise voice services—provides resilience. Raiford added, 'We are expecting our global voice plans to double their growth this year, and programmable messaging to maintain low double-digit growth.' Management remains focused on margin expansion and disciplined financial management, with an eye on achieving 60% gross margins in the medium term. The team also emphasized ongoing investments in platform innovation and regulatory expertise as key differentiators supporting future growth. Management attributed the quarter's performance to strong enterprise voice uptake, AI integration, and channel partner momentum, while also noting resilience in essential communications services amid macro volatility. Enterprise voice momentum: Over half of enterprise customers now use Maestro or AI Bridge, reflecting Bandwidth's ability to modernize complex communication infrastructures and enable AI-powered voice agents, especially in regulated industries like healthcare and financial services. Channel partnerships expanding: The company highlighted strengthened relationships with managed service providers and system integrators, which not only accelerated sales cycles but also enabled Bandwidth to tackle larger, more complex enterprise projects, such as new deployments for a major regional auto club. AI integration as a differentiator: Management pointed to Maestro's orchestration and AI Bridge's flexibility as key factors in recent customer wins, allowing enterprises to integrate AI voice agents for operational efficiency and improved customer experiences without overhauling legacy systems. Global voice plans growth: The company's largest voice offering continued to secure new business and upsell long-standing customers, benefiting from Bandwidth's global network reliability and regulatory expertise, particularly for clients launching advanced AI use cases like real-time multilingual voice translation. Programmable messaging stability: While more exposed to macroeconomic shifts, programmable messaging grew through diversified customer use cases and compliance capabilities, with new wins in consumer engagement and anticipated expansion into the wellness sector. Enhanced deliverability, campaign registration tools, and support for protected health information contributed to ongoing demand. Management expects continued expansion in enterprise voice and global voice plans, supported by AI adoption and partner channels, while monitoring macroeconomic conditions and messaging segment volatility. AI voice adoption accelerates: Management believes the shift toward AI voice agents in enterprise communication workflows will drive usage and wallet share across Bandwidth's product lines. The flexibility to integrate multiple AI solutions through Maestro and AI Bridge is viewed as a competitive advantage in addressing evolving customer needs. Channel and vertical diversification: Strategic expansion of partnerships with managed service providers and entry into new verticals—such as hospitality and manufacturing—are expected to support revenue growth and deal size, especially as large integrators facilitate more complex deployments for global enterprises. Messaging and macro sensitivity: Programmable messaging growth is projected in the low double digits, but management acknowledged greater exposure to macroeconomic headwinds in retail and digital marketing. The company is investing in enhanced deliverability and compliance tools to retain and grow this segment despite potential market volatility. In coming quarters, the StockStory team will be watching (1) further enterprise adoption of Maestro and AI Bridge, especially in new verticals; (2) continued momentum and revenue contribution from managed service provider and system integrator partnerships; and (3) the resilience of programmable messaging growth amid macroeconomic shifts. We will also track progress toward Bandwidth's medium-term gross margin targets and execution on additional AI-driven product enhancements. Bandwidth currently trades at a forward price-to-sales ratio of 0.6×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
19-05-2025
- Business
- Yahoo
1 Growth Stock for Long-Term Investors and 2 to Ignore
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market's punishment can be swift and severe when trajectories fall. Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. Keeping that in mind, here is one growth stock expanding its competitive advantage and two that could be down big. One-Year Revenue Growth: +18.5% Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity. Why Are We Out on BAND? Revenue increased by 13.9% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend Gross margin of 38% reflects its high servicing costs Bandwidth is trading at $14.10 per share, or 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BAND. One-Year Revenue Growth: +17.3% Spun out from Netflix, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services. Why Are We Hesitant About ROKU? Preference for prioritizing user growth over monetization has led to 1.4% annual drops in its average revenue per user Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 7.1 percentage points Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 34.6% annually At $70.04 per share, Roku trades at 28.6x forward EV/EBITDA. Read our free research report to see why you should think twice about including ROKU in your portfolio, it's free. One-Year Revenue Growth: +88.8% Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products. Why Is QNST a Good Business? Impressive 31.4% annual revenue growth over the last two years indicates it's winning market share this cycle Estimated revenue growth of 9.5% for the next 12 months implies its momentum over the last two years will continue Earnings growth has trumped its peers over the last two years as its EPS has compounded at 106% annually QuinStreet's stock price of $15.05 implies a valuation ratio of 14x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Bandwidth (BAND) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended March 2025, Bandwidth (BAND) reported revenue of $174.24 million, up 1.9% over the same period last year. EPS came in at $0.36, compared to $0.27 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $168.87 million, representing a surprise of +3.18%. The company delivered an EPS surprise of +24.14%, with the consensus EPS estimate being $0.29. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Bandwidth performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net retention rate : 116% versus 115.3% estimated by three analysts on average. Geographic Revenue- International : $22.45 million compared to the $14.79 million average estimate based on two analysts. The reported number represents a change of +4.1% year over year. Geographic Revenue- North America : $151.79 million compared to the $154.45 million average estimate based on two analysts. The reported number represents a change of +1.6% year over year. Revenue- Messaging surcharges : $40.78 million versus the four-analyst average estimate of $37.29 million. Revenue- Cloud communications: $133.46 million versus the four-analyst average estimate of $131.64 million. View all Key Company Metrics for Bandwidth here>>> Shares of Bandwidth have returned +5.3% over the past month versus the Zacks S&P 500 composite's +10.6% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bandwidth Inc. (BAND) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
