Latest news with #ChampionHomes
Yahoo
6 days ago
- Business
- Yahoo
2 Cash-Producing Stocks with Competitive Advantages and 1 We Brush Off
A company that generates cash isn't automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand. Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here are two cash-producing companies that excel at turning cash into shareholder value and one that may face some trouble. One Stock to Sell: Champion Homes (SKY) Trailing 12-Month Free Cash Flow Margin: 7.6% Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America. Why Do We Think Twice About SKY? Underwhelming unit sales over the past two years show it's struggled to increase its sales volumes and had to rely on price increases Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Eroding returns on capital suggest its historical profit centers are aging Champion Homes's stock price of $66.39 implies a valuation ratio of 16.8x forward P/E. Read our free research report to see why you should think twice about including SKY in your portfolio, it's free. Two Stocks to Watch: Broadcom (AVGO) Trailing 12-Month Free Cash Flow Margin: 39.8% Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity. Why Are We Backing AVGO? Market share has increased this cycle as its 27.6% annual revenue growth over the last two years was exceptional Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 75.8% AVGO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders Broadcom is trading at $291.85 per share, or 39.2x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Warby Parker (WRBY) Trailing 12-Month Free Cash Flow Margin: 5.3% Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations. Why Are We Positive On WRBY? Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations Differentiated product assortment results in a best-in-class gross margin of 55.1% Earnings per share have massively outperformed its peers over the last three years, increasing by 62.4% annually At $24.46 per share, Warby Parker trades at 65.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. High-Quality Stocks for All Market Conditions Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out 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-small-cap company Exlservice (+354% 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. 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
21-07-2025
- Business
- Yahoo
3 Profitable Stocks with Warning Signs
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here are three profitable companies to steer clear of and a few better alternatives. Champion Homes (SKY) Trailing 12-Month GAAP Operating Margin: 9.5% Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America. Why Does SKY Worry Us? Weak unit sales over the past two years imply it may need to invest in improvements to get back on track Earnings per share have contracted by 28.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance Waning returns on capital imply its previous profit engines are losing steam Champion Homes's stock price of $64.30 implies a valuation ratio of 16.3x forward P/E. If you're considering SKY for your portfolio, see our FREE research report to learn more. Artivion (AORT) Trailing 12-Month GAAP Operating Margin: 4% Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE:AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease. Why Do We Avoid AORT? 7.2% annual revenue growth over the last five years was slower than its healthcare peers Modest revenue base of $390.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies Underwhelming 1.9% return on capital reflects management's difficulties in finding profitable growth opportunities Artivion is trading at $30.49 per share, or 45.4x forward P/E. Read our free research report to see why you should think twice about including AORT in your portfolio, it's free. Amneal (AMRX) Trailing 12-Month GAAP Operating Margin: 12.7% Founded in 2002 and growing into one of America's largest generic drug producers, Amneal Pharmaceuticals (NASDAQ:AMRX) develops, manufactures, and distributes generic medicines, specialty branded drugs, biosimilars, and injectable products for the U.S. healthcare market. Why Do We Think Twice About AMRX? 12.1 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Below-average returns on capital indicate management struggled to find compelling investment opportunities At $7.97 per share, Amneal trades at 11.4x forward P/E. Dive into our free research report to see why there are better opportunities than AMRX. Stocks We Like More Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check 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-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 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. 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
08-07-2025
- Business
- Yahoo
Bear of the Day: Champion Homes (SKY)
There tends to be an abundance of opportunity for construction sector stocks during the peak summer season, but Champion Homes SKY may be one with more downside risk ahead. As a designer of manufactured homes and recreational vehicles (RVs), Champion Homes has a proven niche in its space but is facing increased competition from other modular housing companies like Clayton Homes and Cavo Industries' CVCO Fleetwood Homes. This, coupled with higher interest rates, has led to lower margins that have started to deflate investor sentiment. Keeping this in mind, Champion Homes stock lands the Zacks Bear of the Day, with it noteworthy that its Zacks Building Products-Mobile Homes and RV Builders Industry is in the bottom 4% of over 240 Zacks industries. Echoing cause for concern, Champion Homes most recently missed top and bottom-line expectations for its fiscal fourth quarter in May, with a sales and EPS surprise of -1% and -13% respectively. Although Champion Homes has still posted an average EPS surprise of 25.67% in its last four quarterly reports, news has recently surfaced that the company has experienced a short interest surge, with 3.59 million shares being shorted at the beginning of the month, which is more than 8% of its outstanding shares. Image Source: Zacks Investment Research Correlating with the short interest surge, Champion Homes' stock has now dropped more than 30% since its Q4 report to vastly trail the broader market's 10% rebound and its Zacks Industry's decline of -6%. Image Source: Zacks Investment Research Fundamentally, to more downside risk outside of the short interest surge is that earnings estimate revisions for Champion Homes' current fiscal 2026 and FY27 have declined by over 10% in the last 60 days. Image Source: Zacks Investment Research The declining EPS revisions have taken away from Champion Homes' reasonable but not necessarily cheap P/E valuation of 19X forward earnings, which is on par with Cavo Industries and their Zacks industry average. Image Source: Zacks Investment Research Considering the decline in EPS revisions, the plausibility of a short squeeze doesn't look likely for Champion Homes stock, making it one to avoid at the moment, even during peak construction season. 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 Champion Homes, Inc. (SKY) : Free Stock Analysis Report Cavco Industries, Inc. (CVCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-06-2025
- Business
- Yahoo
1 Cash-Heavy Stock Worth Investigating and 2 to Think Twice About
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability. Just because a business has cash doesn't mean it's a good investment. Luckily, StockStory is here to help you separate the winners from the losers. That said, here is one company with a net cash position that balances growth with stability and two that may struggle. Net Cash Position: $470.2 million (13.1% of Market Cap) Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America. Why Does SKY Worry Us? Underwhelming unit sales over the past two years suggest it might have to lower prices to accelerate growth Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Diminishing returns on capital suggest its earlier profit pools are drying up Champion Homes is trading at $62.58 per share, or 15.8x forward P/E. If you're considering SKY for your portfolio, see our FREE research report to learn more. Net Cash Position: $228.8 million (10.4% of Market Cap) Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ:BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah. Why Does BANR Fall Short? Sales tumbled by 2.2% annually over the last two years, showing market trends are working against its favor during this cycle Net interest income trends were unexciting over the last four years as its 3.5% annual growth was below the typical bank company Sales were less profitable over the last two years as its earnings per share fell by 9% annually, worse than its revenue declines Banner Bank's stock price of $64.02 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including BANR in your portfolio, it's free. Net Cash Position: $2.47 billion (10.2% of Market Cap) Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform. Why Could PINS Be a Winner? Has the opportunity to boost monetization through new features and premium offerings as its monthly active users have grown by 10.4% annually over the last two years Healthy EBITDA margin of 27% shows it's a well-run company with efficient processes Robust free cash flow margin of 24.7% gives it many options for capital deployment At $35.60 per share, Pinterest trades at 19.8x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive 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-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
Yahoo
15-06-2025
- Business
- Yahoo
Should You Investigate Champion Homes, Inc. (NYSE:SKY) At US$61.42?
Champion Homes, Inc. (NYSE:SKY), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$97.87 and falling to the lows of US$61.42. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Champion Homes' current trading price of US$61.42 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Champion Homes's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The stock seems fairly valued at the moment according to our valuation model. It's trading around 20% below our intrinsic value, which means if you buy Champion Homes today, you'd be paying a reasonable price for it. And if you believe that the stock is really worth $76.61, then there's not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Champion Homes's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Check out our latest analysis for Champion Homes Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Champion Homes' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in SKY's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on SKY, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Diving deeper into the forecasts for Champion Homes mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in Champion Homes, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
