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Yahoo
13-06-2025
- Business
- Yahoo
1 Profitable Stock with Exciting Potential and 2 to Avoid
A company with profits isn't always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here is one profitable company that generates reliable profits without sacrificing growth and two that may face some trouble. Trailing 12-Month GAAP Operating Margin: 6.2% A treasure hunt because there's no guarantee of consistent product selection, Dollar Tree (NASDAQ:DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices. Why Are We Cautious About DLTR? Annual sales growth of 1.1% over the last six years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand Estimated sales decline of 21.7% for the next 12 months implies a challenging demand environment Underwhelming 9.8% return on capital reflects management's difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam At $96 per share, Dollar Tree trades at 17.8x forward P/E. Read our free research report to see why you should think twice about including DLTR in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 21.1% Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ:BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases. Why Does BIIB Worry Us? Sales tumbled by 7.4% annually over the last five years, showing market trends are working against its favor during this cycle Forecasted revenue decline of 6.9% for the upcoming 12 months implies demand will fall even further Sales were less profitable over the last five years as its earnings per share fell by 15.1% annually, worse than its revenue declines Biogen's stock price of $131.01 implies a valuation ratio of 8.2x forward P/E. To fully understand why you should be careful with BIIB, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 11.8% Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews. Why Are We Fans of YELP? Prominent and differentiated platform culminates in a best-in-class gross margin of 91.2% Healthy EBITDA margin of 25.7% shows it's a well-run company with efficient processes, and its rise over the last few years was fueled by some leverage on its fixed costs YELP is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute Yelp is trading at $35.82 per share, or 6.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive 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 6 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 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. 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
10-06-2025
- Business
- Yahoo
YELP Q1 Earnings Call: AI Product Push and Services Expansion Drive Results Amid Macro Uncertainty
Local business platform Yelp (NYSE:YELP) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 7.7% year on year to $358.5 million. The company expects the full year's revenue to be around $1.48 billion, close to analysts' estimates. Its non-GAAP profit of $0.81 per share was 3.1% above analysts' consensus estimates. Is now the time to buy YELP? Find out in our full research report (it's free). Revenue: $358.5 million vs analyst estimates of $352.1 million (7.7% year-on-year growth, 1.8% beat) Adjusted EPS: $0.81 vs analyst estimates of $0.78 (3.1% beat) Adjusted EBITDA: $84.94 million vs analyst estimates of $68.16 million (23.7% margin, 24.6% beat) The company reconfirmed its revenue guidance for the full year of $1.48 billion at the midpoint EBITDA guidance for the full year is $355 million at the midpoint, in line with analyst expectations Operating Margin: 8.2%, up from 3.4% in the same quarter last year Market Capitalization: $2.36 billion Yelp's first quarter results were shaped by ongoing momentum in its Services segment, which offset continued challenges in the restaurant, retail, and other (RR&O) categories. CEO Jeremy Stoppelman pointed to the '16th consecutive quarter of double-digit year-over-year growth' in Services, as product-led initiatives—including new AI features and workflow integrations—helped drive project volume and advertiser engagement. Management noted that while RR&O revenue declined, Services revenue grew 14% year over year. CFO David Schwarzbach highlighted the impact of disciplined expense management, with net income margin and adjusted EBITDA margin expanding meaningfully compared to the prior year. Notably, the number of Services paying advertiser locations surpassed RR&O for the first time, reflecting a shift in business mix. Looking ahead, Yelp's guidance is underpinned by continued investment in AI-driven features and product enhancements aimed at increasing advertiser value and efficiency. Management acknowledged that macroeconomic uncertainty, especially in RR&O categories, remains a headwind. Stoppelman stated, 'We continue to keep an eye on inflation and potential tariff-related supply chain disruptions,' but emphasized that the product's measurable return on investment supports spending even in uncertain conditions. The company expects expense growth to be modest, with headcount roughly flat through year-end and ongoing efforts to reduce stock-based compensation. New AI-powered call answering products and further Yelp Assistant expansion are expected to bolster engagement and help offset softer trends in RR&O. Management attributed quarterly growth to strength in Services, a shift in advertiser mix, and the rollout of new AI-driven product features. The company highlighted ongoing challenges in RR&O, but noted early traction from workflow integrations and AI enhancements. Services category momentum: Services revenue grew for the 16th consecutive quarter, propelled by product improvements like Request to Quote enhancements and higher adoption of Yelp Assistant. Management cited a 10% increase in project requests, with even stronger growth when excluding paid search. AI feature deployment: The quarter saw the introduction of 15 new features, including AI-powered photo recognition and response quality badges. These tools aim to streamline the hiring process and highlight high-quality service providers, with management seeing significant runway for further feature adoption. RR&O segment headwinds: Restaurant, retail, and other categories continued to face a challenging environment, resulting in a 3% year-over-year revenue decline. Management attributed this to softer advertiser demand and reduced paid search activity, with enterprise and multi-location advertisers remaining cautious amid macro uncertainty. Workflow and CRM integrations: Yelp advanced its multi-location services strategy with the launch of a Zapier integration, connecting its Leads API to over 800 CRM and lead management platforms. Early signs indicate positive advertiser uptake and improved revenue growth within this segment. Expense discipline and capital allocation: The company continued to manage costs carefully, keeping headcount flat and reducing stock-based compensation as a percentage of revenue. Yelp repurchased $62.5 million of its own shares in the quarter and maintains flexibility for further buybacks or potential acquisitions. Yelp's outlook centers on expanding AI-driven products, increasing advertiser value, and navigating persistent macroeconomic uncertainty, particularly in RR&O. AI product expansion: Management sees further opportunity to enhance the user and advertiser experience through AI, including broader rollout of Yelp Assistant and upcoming call answering solutions for both service pros and restaurants. These initiatives are expected to increase lead quality, engagement, and advertiser retention, with the potential for new monetization avenues. Services mix shift: The ongoing growth of Services—now surpassing RR&O in paying advertiser locations—positions Yelp for continued resilience. Management believes many Services projects are non-discretionary, providing some insulation against broader economic pressures, though RR&O headwinds may persist. Macro and cost headwinds: Executives flagged inflation, potential tariff-related supply chain disruptions, and cautious advertiser sentiment as ongoing risks. Expense growth is expected to remain modest, but management acknowledges that further macro deterioration could impact advertising budgets, particularly in RR&O categories. In the coming quarters, the StockStory team will watch (1) the pace of AI feature adoption, especially for Yelp Assistant and call answering tools; (2) whether Services momentum persists as RR&O categories face continued headwinds; and (3) progress on multi-location advertiser integrations and CRM partnerships. Execution on AI-driven product expansion and maintaining expense discipline will remain critical signposts for Yelp's strategy. Yelp currently trades at a forward EV/EBITDA ratio of 6.9×. At this valuation, is it a buy or sell post earnings? See for yourself 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 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Q1 Earnings Roundup: Meta (NASDAQ:META) And The Rest Of The Social Networking Segment
Looking back on social networking stocks' Q1 earnings, we examine this quarter's best and worst performers, including Meta (NASDAQ:META) and its peers. Businesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online. The 6 social networking stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 2.4% while next quarter's revenue guidance was 0.8% below. Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results. Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs. Meta reported revenues of $42.31 billion, up 16.1% year on year. This print exceeded analysts' expectations by 2.3%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts' EBITDA estimates but revenue guidance for next quarter slightly missing analysts' expectations. "We've had a strong start to an important year, our community continues to grow and our business is performing very well," said Mark Zuckerberg, Meta founder and CEO. The stock is up 20.1% since reporting and currently trades at $657.31. Is now the time to buy Meta? Access our full analysis of the earnings results here, it's free. Helping residents figure out what's happening on their block in real time, Nextdoor (NYSE:KIND) is a social network that connects neighbors with each other and with local businesses. Nextdoor reported revenues of $54.18 million, up 1.9% year on year, outperforming analysts' expectations by 1.8%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' number of weekly active users estimates. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.9% since reporting. It currently trades at $1.39. Is now the time to buy Nextdoor? Access our full analysis of the earnings results here, it's free. Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews. Yelp reported revenues of $358.5 million, up 7.7% year on year, exceeding analysts' expectations by 1.8%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts' EBITDA estimates. Interestingly, the stock is up 12.7% since the results and currently trades at $40.25. Read our full analysis of Yelp's results here. Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes. Reddit reported revenues of $392.4 million, up 61.5% year on year. This number topped analysts' expectations by 6.2%. It was a strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts' expectations. Reddit achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 50.1 million daily active users, up 20.7% year on year. The stock is down 4.9% since reporting and currently trades at $112.91. Read our full, actionable report on Reddit here, it's free. Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform. Pinterest reported revenues of $855 million, up 15.5% year on year. This print surpassed analysts' expectations by 1%. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts' EBITDA estimates but revenue guidance for next quarter meeting analysts' expectations. Pinterest had the weakest performance against analyst estimates among its peers. The company reported 570 million monthly active users, up 10% year on year. The stock is up 18.3% since reporting and currently trades at $32.99. Read our full, actionable report on Pinterest here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up 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
14-05-2025
- Business
- Yahoo
1 Russell 2000 Stock with Exciting Potential and 2 to Approach with Caution
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. The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we're here to guide you toward the right ones. Keeping that in mind, here is one Russell 2000 stock that could be the next big thing and two best left off your watchlist. Market Cap: $343.1 million Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands. Why Should You Dump BGS? Products have few die-hard fans as sales have declined by 3.3% annually over the last three years Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 30.7% annually, worse than its revenue 7× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly B&G Foods's stock price of $4.38 implies a valuation ratio of 6.1x forward P/E. If you're considering BGS for your portfolio, see our FREE research report to learn more. Market Cap: $345.1 million Pioneering what scientists call "HiFi long-read sequencing," recognized as Nature Methods' method of the year for 2022, Pacific Biosciences (NASDAQ:PACB) develops advanced DNA sequencing systems that enable scientists and researchers to analyze genomes with unprecedented accuracy and completeness. Why Do We Pass on PACB? 6.6% annual revenue growth over the last two years was slower than its healthcare peers Free cash flow margin dropped by 29.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $1.13 per share, PacBio trades at 2.1x forward price-to-sales. Read our free research report to see why you should think twice about including PACB in your portfolio, it's free. Market Cap: $2.59 billion Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews. Why Are We Positive On YELP? Platform is difficult to replicate at scale and results in a best-in-class gross margin of 91.2% Highly efficient business model is illustrated by its impressive 25.7% EBITDA margin, and its rise over the last few years was fueled by some leverage on its fixed costs Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.7% exceeded its revenue gains over the last three years Yelp is trading at $40.25 per share, or 7.5x forward EV/EBITDA. Is now the right 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 9 Market-Beating Stocks. 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.
Yahoo
08-05-2025
- Business
- Yahoo
Yelp's (NYSE:YELP) Q1 Sales Beat Estimates
Local business platform Yelp (NYSE:YELP) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 7.7% year on year to $358.5 million. The company expects the full year's revenue to be around $1.48 billion, close to analysts' estimates. Its GAAP profit of $0.36 per share was 10.7% above analysts' consensus estimates. Is now the time to buy Yelp? Find out in our full research report. Revenue: $358.5 million vs analyst estimates of $352.1 million (7.7% year-on-year growth, 1.8% beat) EPS (GAAP): $0.36 vs analyst estimates of $0.33 (10.7% beat) Adjusted EBITDA: $84.94 million vs analyst estimates of $68.16 million (23.7% margin, 24.6% beat) The company reconfirmed its revenue guidance for the full year of $1.48 billion at the midpoint EBITDA guidance for the full year is $355 million at the midpoint, in line with analyst expectations Operating Margin: 8.2%, up from 3.4% in the same quarter last year Free Cash Flow Margin: 24.4%, up from 16.6% in the previous quarter Market Capitalization: $2.30 billion 'Our first quarter results demonstrate the strength of our services business and the progress we've made against our product roadmap,' said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Yelp's 10.1% annualized revenue growth over the last three years was decent. Its growth was slightly above the average consumer internet company and shows its offerings resonate with customers. This quarter, Yelp reported year-on-year revenue growth of 7.7%, and its $358.5 million of revenue exceeded Wall Street's estimates by 1.8%. Looking ahead, sell-side analysts expect revenue to grow 3.7% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Yelp has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors while maintaining a cash cushion. The company's free cash flow margin averaged 19.6% over the last two years, quite impressive for a consumer internet business. Taking a step back, we can see that Yelp's margin expanded by 1.6 percentage points over the last few years. This is encouraging because it gives the company more optionality. Yelp's free cash flow clocked in at $87.46 million in Q1, equivalent to a 24.4% margin. This result was good as its margin was 4.6 percentage points higher than in the same quarter last year, building on its favorable historical trend. We were impressed by how significantly Yelp blew past analysts' EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. Overall, this print had some key positives. The stock traded up 2.1% to $36.49 immediately after reporting. Yelp may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
