Latest news with #MYRGroup
Yahoo
03-07-2025
- Business
- Yahoo
1 Momentum Stock Worth Your Attention and 2 to Question
The stocks featured in this article are seeing some big returns. Over the past month, they've outpaced the market due to new product launches, positive news, or even a dedicated social media following. While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two not so much. One-Month Return: +11.6% Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance. Why Should You Dump CHGG? Value proposition isn't resonating strongly as its services subscribers averaged 13.4% drops over the last two years Overall productivity fell over the last few years as its plummeting sales were accompanied by a decline in its EBITDA margin Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable Chegg is trading at $1.35 per share, or 2.3x forward EV/EBITDA. If you're considering CHGG for your portfolio, see our FREE research report to learn more. One-Month Return: +12.3% Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry. Why Is MYRG Risky? New orders were hard to come by as its backlog was flat over the past two years Incremental sales over the last two years were much less profitable as its earnings per share fell by 34.5% annually while its revenue grew Waning returns on capital imply its previous profit engines are losing steam At $182 per share, MYR Group trades at 29.2x forward P/E. Read our free research report to see why you should think twice about including MYRG in your portfolio, it's free. One-Month Return: +36.1% Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions. Why Will COIN Beat the Market? 58.2% annual increases in its average revenue per user over the last two years show its platform is resonating with power users Incremental sales significantly boosted profitability as its annual earnings per share growth of 64.5% over the last two years outstripped its revenue performance Robust free cash flow margin of 25.9% gives it many options for capital deployment, and its expanding margin gives it even more flexibility Coinbase's stock price of $352.25 implies a valuation ratio of 27.5x forward EV/EBITDA. 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 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
21-06-2025
- Business
- Yahoo
A Look At The Intrinsic Value Of MYR Group Inc. (NASDAQ:MYRG)
Using the 2 Stage Free Cash Flow to Equity, MYR Group fair value estimate is US$162 With US$169 share price, MYR Group appears to be trading close to its estimated fair value The US$171 analyst price target for MYRG is 5.7% more than our estimate of fair value Does the June share price for MYR Group Inc. (NASDAQ:MYRG) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$80.6m US$96.3m US$108.2m US$118.4m US$127.4m US$135.2m US$142.2m US$148.7m US$154.7m US$160.4m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 12.32% Est @ 9.51% Est @ 7.54% Est @ 6.16% Est @ 5.19% Est @ 4.52% Est @ 4.04% Est @ 3.71% Present Value ($, Millions) Discounted @ 7.6% US$74.9 US$83.1 US$86.7 US$88.2 US$88.1 US$86.9 US$84.9 US$82.4 US$79.7 US$76.8 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$832m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 7.6%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$160m× (1 + 2.9%) ÷ (7.6%– 2.9%) = US$3.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$3.5b÷ ( 1 + 7.6%)10= US$1.7b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$2.5b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$169, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at MYR Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.6%, which is based on a levered beta of 1.087. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for MYR Group Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the American market. Threat Annual revenue is forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For MYR Group, we've put together three pertinent elements you should look at: Risks: We feel that you should assess the 1 warning sign for MYR Group we've flagged before making an investment in the company. Future Earnings: How does MYRG's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. 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
Yahoo
16-06-2025
- Business
- Yahoo
Is the Options Market Predicting a Spike in MYR Group Stock?
Investors in MYR Group Inc. MYRG need to pay close attention to the stock based on moves in the options market lately. That is because the July 18, 2025 $150.00 Put had some of the highest implied volatility of all equity options today. Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Clearly, options traders are pricing in a big move for MYR Group shares, but what is the fundamental picture for the company? Currently, MYR Group is a Zacks Rank #1 (Strong Buy) in the Electric Construction industry that ranks in the Top 1% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from earnings of $1.58 per share to $1.56 in that the way analysts feel about MYR Group right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your to see the trades now >> 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 MYR Group, Inc. (MYRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
13-06-2025
- Business
- Yahoo
What Makes MYR (MYRG) a New Strong Buy Stock
MYR Group (MYRG) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. As such, the Zacks rating upgrade for MYR is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for MYR imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>. For the fiscal year ending December 2025, this electrical construction services provider is expected to earn $6.59 per share, which is a change of 260.1% from the year-ago reported number. Analysts have been steadily raising their estimates for MYR. Over the past three months, the Zacks Consensus Estimate for the company has increased 17.2%. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. You can learn more about the Zacks Rank here >>> The upgrade of MYR to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher 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 MYR Group, Inc. (MYRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
05-06-2025
- Business
- Yahoo
Is Algonquin Power & Utilities (AQN) Outperforming Other Utilities Stocks This Year?
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is Algonquin Power & Utilities (AQN) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Algonquin Power & Utilities is a member of the Utilities sector. This group includes 106 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Algonquin Power & Utilities is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for AQN's full-year earnings has moved 1.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Our latest available data shows that AQN has returned about 33% since the start of the calendar year. Meanwhile, the Utilities sector has returned an average of 6.9% on a year-to-date basis. This means that Algonquin Power & Utilities is outperforming the sector as a whole this year. MYR Group (MYRG) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 7.7%. In MYR Group's case, the consensus EPS estimate for the current year increased 17.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Algonquin Power & Utilities belongs to the Utility - Electric Power industry, a group that includes 60 individual companies and currently sits at #68 in the Zacks Industry Rank. On average, this group has gained an average of 7% so far this year, meaning that AQN is performing better in terms of year-to-date returns. On the other hand, MYR Group belongs to the Electric Construction industry. This 1-stock industry is currently ranked #3. The industry has moved +7.7% year to date. Investors with an interest in Utilities stocks should continue to track Algonquin Power & Utilities and MYR Group. These stocks will be looking to continue their solid performance. 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 Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report MYR Group, Inc. (MYRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
