Latest news with #Bandwidth
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
Business Insider
27-06-2025
- Business
- Business Insider
Micron's Blowout Earnings Just Sent Nvidia Stock Soaring. Here's Why It Matters
Nvidia (NVDA) is up 4.33% in Thursday's premarket. The spark that lit the fuse was Micron's (MU) knockout earnings report and fourth-quarter guidance. Confident Investing Starts Here: On the surface, it might look like Micron just had a good day. But the underlying message is simple: AI memory demand isn't just strong, it's accelerating fast. And when memory demand rips higher, Nvidia's pipeline benefits. Micron Delivered. And Then Some. Micron posted Fiscal Q3 revenue of $9.3 billion, well ahead of Wall Street's $8.84 billion estimate. EPS came in at $1.91, beating the consensus estimate of $1.60. Gross margin guidance for Q4 was a blazing 42%. Most crucially, management is calling for Q4 revenue to hit $10.7 billion, 15% sequential growth, and again above the Street's consensus. What drove the upside? Record DRAM revenue. Nearly 50% sequential growth in High Bandwidth Memory (HBM). Datacenter sales doubling year-over-year. These aren't just good numbers, they're Nvidia numbers. That's what investors should be paying attention to. HBM Is the Tell Micron is now one of the key suppliers of HBM, the ultra-fast memory tech designed to feed AI accelerators like Nvidia's H100 and Blackwell chips. If demand for HBM is surging, it means one thing: more GPUs are being built, sold, and deployed at scale. Essentially, Nvidia's supply chain is moving at full throttle. Micron CEO Sanjay Mehrotra said it best during the earnings call: 'We are on track to deliver record revenue with solid profitability and free cash flow in Fiscal 2025… driven by AI.' Price targets are flying for Micron stock. Stifel took MU to $145. Piper Sandler to $165. Raymond James to $150. Barclays hiked to $140 — from $95. Yes, that's a $45 jump. But the real signal is in Nvidia's chart. Investors see the HBM boom and know exactly where it leads. Is Nvidia a Buy, Sell, or Hold? According to TipRanks data, Wall Street is still firmly in Nvidia's corner. Of 40 analysts covering the stock, 35 rate it a Buy, four say Hold, and just one sees a Sell. The average 12-month NVDA price target is $175.28, about 13.6% above current levels, while the highest target sits at $250. That implies Nvidia still has plenty of room to run, at least on paper.
Yahoo
26-06-2025
- Business
- Yahoo
Sandisk Corporation (SNDK): A Bull Case Theory
We came across a bullish thesis on Sandisk Corporation (SNDK) on wallstreetbets subreddit by b0men. In this article, we will summarize the bulls' thesis on SNDK. Sandisk Corporation (SNDK)'s share was trading at $42.5 as of 13th June. A data centre room with cloud technology, illustrating the enterprise application software services. Sandisk, now operating independently following its separation from Western Digital, is quietly carving out a powerful niche in the AI infrastructure arms race. Its Gen5 enterprise SSDs were recently certified by NVIDIA for datacenter use, officially embedding the company into the AI server vendor chain. The standout innovation is Sandisk's proprietary High Bandwidth Flash (HBF) architecture—developed fully in-house—designed for massive capacity and throughput, tailored specifically for AI workloads. This positions Sandisk as a one-of-a-kind supplier with differentiated technology. Complementing this, the company is shipping BiCS8, one of the most power-efficient flash technologies currently available. Cloud hyperscaler traction is rising rapidly: 12% of total output went to AWS, GCP, and Azure this quarter, up from 8% a year ago, reflecting intensifying AI-related spend. This growth appears sustainable, as internal reports from major tech companies show transformative AI deployment efforts already yielding dramatic productivity gains. While the company still has a consumer-facing segment, its real upside lies in enterprise AI, where it's now gaining relevance in billion-dollar deal cycles. Financially, Sandisk posted $1.7B in revenue and $220M in adjusted free cash flow this quarter, with $1.5B in cash on hand. Despite soft gross margins (22.7%) due to pricing and NAND volatility, management is focused on restoring profitability. The company is also making moves in gaming, EVs, and content creation, expanding its flash technology footprint. Risks remain, including thin options liquidity and lingering consumer weakness, but with unique AI-aligned assets and accelerating cloud demand, Sandisk offers asymmetric upside. For now, it's a high-risk bet with potentially transformative payoff. Previously, we covered a on Intel (INTC) by Jellym9s on wallstreetbets in December 2024, framing it as a turnaround bet anchored by its Foundry Services and geopolitical tailwinds favoring domestic chip production. The thesis outlined a potential strategic pivot away from lagging product segments toward becoming the U.S. equivalent of TSMC. The thesis on Sandisk (SNDK) by b0men extends this theme of U.S.-based semiconductor resurgence, but through the lens of AI infrastructure. Sandisk's proprietary enterprise SSD technology and early traction with hyperscalers signal a niche, high-performance role in AI datacenters, offering complementary upside to Intel's foundry ambitions. Sandisk Corporation (SNDK) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Sandisk Corporation (SNDK) at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of SNDK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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. This article was originally published at Insider Monkey. 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
25-06-2025
- Business
- Yahoo
Twilio vs. Bandwidth: Which CPaaS Stock Is the Better Buy Right Now?
Twilio Inc. TWLO and Bandwidth Inc. BAND are two major names in the U.S. Communications Platform as a Service (CPaaS) market. Both help businesses and developers build apps for messaging, voice and emergency services using application programming interfaces (APIs). With the growing shift to cloud-based communications and artificial intelligence (AI)-driven solutions, the big question for investors is: Which of these CPaaS players offers a more compelling investment opportunity today? Let's break down their fundamentals, growth prospects and valuations to find out. Twilio remains the leader in customer communications, offering tools that help businesses connect with customers in real time and at scale. The company's focus on AI-powered products like Conversation Relay and Generative Custom Operators allows businesses to automate customer interactions, improve security and get smarter insights. This focus on AI is helping Twilio's clients work more efficiently and save costs. Twilio Segment, TWLO's customer data platform, is another growth driver. It allows businesses to bring together data from different sources to run targeted marketing campaigns that boost loyalty and sales. As AI adoption rises, Twilio's ability to combine communication with data gives it a real advantage. On the financial front, Twilio has made solid progress. In the first quarter of 2025, non-GAAP earnings per share jumped 42.5% on 12% revenue growth due to better cost control and efficiency. Twilio Inc. price-consensus-eps-surprise-chart | Twilio Inc. Quote Twilio's financial health looks strong, with $2.45 billion in cash and $991 million in long-term debt. It has been returning capital to shareholders aggressively by repurchasing stocks worth $2.3 billion in 2024 alone. In January 2025, Twilio authorized a $2 billion share buyback program, signaling confidence in its long-term prospects. During the first quarter of 2025, it repurchased shares worth $126.3 million. Bandwidth has built a respectable position in cloud communications but at a smaller scale than Twilio. In the first quarter of 2025, Bandwidth saw its non-GAAP earnings per share rise 33.3% on 7% revenue growth. Its Enterprise Voice business is the star performer, with the growing adoption of its Maestro and AI Bridge platforms. These help businesses modernize communications and integrate AI voice tools for better efficiency. Bandwidth Inc. price-consensus-eps-surprise-chart | Bandwidth Inc. Quote From a portfolio strength and market positioning view, Bandwidth's mix of Enterprise Voice, Global Voice Plans and Programmable Messaging provides a broad service offering. Its global network helps ensure reliable, low-latency service for demanding use cases like AI-powered voice applications. However, challenges remain. Messaging growth has been slow and could face more pressure if retail or marketing spending slows. The heavy reliance on Enterprise Voice for growth creates a concentration risk, and while Bandwidth's AI offerings show promise, it may take time before they drive significant revenues. Bandwidth's debt is another concern. As of March 31, 2025, the company had just $42 million in cash compared to $468 million in long-term liabilities. This debt load could limit its ability to invest or manage through tough periods. Twilio seems better positioned for growth. The Zacks Consensus Estimate for TWLO's 2025 revenues and EPS implies year-over-year growth of 7.9% and 22.3%, respectively. The consensus mark for BAND's 2025 revenues and EPS indicates a year-over-year increase of 0.3% and 14.2%, respectively. On the valuation front, Twilio trades at 3.61 times forward sales compared to 0.53 times for Bandwidth. While TWLO looks more expensive, its higher growth momentum justifies the premium. BAND's lower valuation reflects its risks, including slowing messaging growth, macroeconomic headwinds and a high debt level. Image Source: Zacks Investment Research Year to date, Twilio stock has risen 9%, while Bandwidth shares have fallen 17.3%. This difference shows how investors are weighing the risks and rewards of each company. Image Source: Zacks Investment Research Both companies offer ways to benefit from the shift to cloud communications and AI. However, Twilio's scale, product diversity, stronger growth outlook and solid balance sheet give it a clear edge. For investors looking for a more reliable and faster-growing player in CPaaS, Twilio stands out as the smarter choice right now. Currently, TWLO sports a Zacks Rank #1 (Strong Buy), making the stock a must-pick compared to Bandwidth, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. 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 Twilio Inc. (TWLO) : Free Stock Analysis Report Bandwidth Inc. (BAND) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
