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This has translated into explosive earnings growth for the company over the past three years -- and significant gains in return on investedcapital. It sells the servers, storage systems, rack-scale solutions, and other equipment needed to deploy the core hardware that powers AI platforms.
had $147 billion in cash, cash equivalents, and short-term investments on its balance sheet as of June 30 -- a treasure chest of investablecapital. Second, investors must find stocks with favorable prospects for long-term growth. Favorable long-term growth prospects cannot exist without a durable competitive advantage.
Then, it was the de facto e-commerce company in China, a leader in its technology industry rivaled only by Tencent , and its prospects for growth seemed unlimited. It faces severe competition from Pinduoduo and Douyin, it's no longer among the top-two technology companies in China by market capitalization, and its future looks bleak.
The market for professionals is more fragmented with better growth prospects, so it makes sense why the company acquired SRS Distribution to further tap the opportunity. Consequently, Home Depot has averaged a much better operating margin and return on investedcapital in the past five years.
For example, Enterprise delivered a double-digit return on investedcapital (ROIC) in every year since 2005. Better industry growth prospects than you might think Last, but not least, there are better growth prospects for the midstream energy industry than you might think.
The industry's long-term issue comes down to its inability to generate a return on capital necessary to cover its cost of capital. But it's not bad news for debt providers because they have been rewarded for putting up capital, with their investment backed up by a relatively liquid asset, the airplanes themselves.
Dividend stocks may not offer the exciting returnprospects of growth stocks, but when stock market volatility returns, it is always nice to have extra cash automatically deposited in your account. Double-digit earnings growth prospects in the near term should make it 63 and counting.
Celsius currently trades at a price-to-sales (P/S) ratio of 4.4 -- which compares nicely to its peer Monster 's ratio of 7.4 -- making it a reasonable time to buy into the company's growth prospects. MELI Return on InvestedCapital data by YCharts.
Amazon has a track record of growth in return on investedcapital (ROIC) over time, showing the company has made wise investment decisions. These efforts also should lift earnings over the long haul. So, there's reason to believe this trend could continue.
of your starting capital in the last year (as of March 18). Where to invest $1,000 right now? One clear reason investors might be discouraged from buying Ford stock is because of its growth prospects. Ford is also a very capital-intensive company -- it has huge expenses. However, maybe things are about to turn around.
It's a great industry to invest in, but there is one logical problem with it: Historically, airlines don't actually cover their cost of capital. The former is simply the profits generated from the capitalinvested in the business, while the latter is the weighted cost of its equity and debt.
Since 2005, the company has never delivered a return on investedcapital of less than 10% -- not even during the 2008-2009 financial crisis or the COVID-19 pandemic. The further we get from the banking crisis of early 2023, the better this stock's prospects should be. No one knows for sure what 2024 will bring.
Investors can set themselves up for success by buying shares of companies with solid long-term prospects that are trading at reasonable valuations and holding on tight. IBM expects to grow revenue by 3% to 5% this year, driven by strong demand for digital-transformation projects that deliver clear returns on investment for customers.
Given the rapid pace of additive technology evolution for both healthcare and industrial applications, we have great confidence in our longer-term growth prospects. And I'm thrilled with the prospects. In just a few moments, I'll begin this series by diving more into our dental business for this call. So, we run a better supply chain.
And with the analyst community on the sidelines with Sea stock, it seems many investors were unenthused with the company's prospects as well. Since the start of the year, it's up more than 130%, absolutely crushing the returns for the S&P 500. I don't think anyone predicted what's happened with Sea stock in 2024.
The best way to ensure you're always a step ahead of Wall Street is to hold shares of quality companies with great prospects for long-term growth. The stock returned 450%, beating the major indexes, as the company grew revenue and earnings at double-digit percentages on an annualized basis. billion-$4.25
By investing in companies that contribute the most to the index's movement -- such as the top 10 most heavily weighted in the index -- and then narrowing that down to companies offering exciting growth prospects now. trillion by 2030. Let's check out two revolutionary AI stocks to buy before the Nasdaq rockets higher.
These products have not only helped Apple increase earnings over time, but also helped with other key financial measures like free cash flow and return on investedcapital. Today, growth prospects are even brighter, and that means the stock continues to look like a bargain for the long-term investor.
And this helps explain why Home Depot has consistently posted better margins and return on investedcapital than Lowe's. Even though this is already a massive enterprise, investors should be encouraged by the growth prospects. Compared to do-it-yourself (DIY) consumers, pros spend more per visit.
Let's take a look at each of these stocks to invest in now. Tesla Tesla is the leader in the electric vehicle market and has grown important metrics such as free cash flow and return on investedcapital in recent years. SHOP Free Cash Flow data by YCharts Finally, let's take a look at Shopify's share performance.
All of this has helped the company grow revenue over time, as well as free cash flow and return on investedcapital -- these last two measures slipped in recent times as Shopify invested in its own logistics network. Now, let's discuss the share price.
That frenzy helped catapult such AI stocks as Nvidia some 240% higher and into the tiny and exclusive club of companies with a market capitalization over $1 trillion. Aggressive spending on the business, without any up-front return on investment, had soured Wall Street on Meta's prospects.
And investing in an ETF like the Invesco QQQ ensures a diverse portfolio and exposure to multiple breakthrough solutions. The pitfalls of overexuberance Getting fixated on the prospect of future earnings and sustained high growth can lead to drastically overpaying for a company. The cyclical nature of the solar industry isn't unique.
The company acquired Habana Labs in 2019, and that company's line of Gaudi AI chips is now garnering intense interest from prospective customers. The company plans to launch next-generation Gaudi3 chips in 2024 to capitalize on this soaring demand. Intel (NASDAQ: INTC) already has a viable competitor on the market.
The company's return on investedcapital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. PepsiCo's debt-to-equity ratio is around 2, so its capital structure includes more debt than Emerson's. Emerson has increased its dividend annually for 66 consecutive years.
Identifying dividend growth stocks with high returns on investedcapital (ROICs) can be a great way to look for investments as both criteria have proven to be market-beating propositions over time. This extra step offers higher passive income prospects while potentially uncovering stocks trading at a discount.
And as we go into 2025, year two, we remain well-positioned to continue to deliver mid-single digit or greater organic revenue growth, continued margin expansion in line with our historic performance, strong adjusted EPS growth, double-digit free cash flow growth, and disciplined capital allocation.
The company invests opportunistically with its massive insurance float, and its subsidiaries are cash cows that create plenty of extra capital for investment as well. It also produces vast amounts of capital for a host of other envelope-pushing ventures. Trading for about 1.5
The best businesses are the ones that can grow without requiring a lot of capitalinvestment. Companies that require capital but that actually have growth prospects can also be attractive. This leads to persistently low profit margins and returns on investedcapital. Demand can also be cyclical.
Pentair's growth prospects are long-term There are two key reasons to buy water solutions company Pentair. For example, the International Air Transport Association (IATA) estimates the industry will generate a return on investedcapital of 5.7% in 2024 compared to a weighted average cost of capital (WACC) of about 9.1%.
With the prospect of lower interest rates ahead, housing stocks are looking up. However, investors were pleased with the overall outlook thanks to low housing inventories and the prospect of interest rates falling later this year. One beneficiary has been D.R. Horton (NYSE: DHI) , which recently saw its shares hit an all-time high.
That's because there's one major green flag for Home Depot that will get anyone excited about the company's prospects. The business has proven to be consistently profitable thanks to this scale, and its return on investedcapital of over 40% is superb. Borrowing costs also play a factor.
But this doesn't take away from the company's long-term prospects, driven by a favorable industry backdrop. Home Depot consistently posts greater sales per square foot and return on investedcapital than Lowe's, particularly as it's able to drive higher revenue per location, thanks to business from pros.
Return on investedcapital (ROIC) is often viewed as the single most important indicator of whether a business has developed an economic moat. Growth prospects In the most recent fiscal quarter (Q1 2025 ended Dec. Apple's ROIC in the past decade has averaged a superb 37%, putting it in an elite category.
Thanks to his incredible track record leading Berkshire Hathaway , Warren Buffett is a legend in the investing world. He's considered by many to be one of the greatest capital allocators ever. Because of this standing, average investors are always trying to emulate his strategy in the hopes of achieving strong returns.
Others have said it is simply what prospective customers think about when they hear the name of your product or company. That demand has waned in the face of capital expenditures nearly doubling since the beginning of 2020. That has pressured returns, as shown by RH's return on investedcapital.
It makes Coca-Cola a more efficient business that generates a far higher return on investedcapital (ROIC) than Kraft Heinz: KO Return on InvestedCapital data by YCharts A high ROIC can compound for a business over time, leading to more efficient earnings growth and potentially higher investmentreturns.
I also like the fact that Oracle's return on investedcapital, which dropped in recent years, is starting to head higher again -- showing that the company is progressively benefiting from its investments in growth. ORCL Return on InvestedCapital data by YCharts. Now, let's take a look at valuation.
It has maintained a large market share, continued to expand, and raised its already impressive return on investedcapital (ROIC) throughout recent years. V Return on InvestedCapital data by YCharts. These are all signs that new technologies aren't forcing Visa off its perch.
I'm talking about companies that have a solid earnings track record and offer bright prospects down the road too. And Vertex has grown the important measures of net income, free cash flow , and return on investedcapital over time. Everyone's portfolio should include a couple of monster stocks.
Software and infrastructure strength In IBM's consulting segment, the company is seeing clients continue to pull back on discretionary projects in favor of projects with clear returns on investment in the form of cost savings or productivity gains.
LOW Operating Margin (TTM) data by YCharts Home Depot's return on investedcapital (ROIC) also towers above its smaller rival's. ROIC is an excellent metric for investors to follow as it reflects a management team's ability to efficiently allocate increasing amounts of capital. Lowe's is aiming for a margin between 13.4%
This is a brilliant way to bring prospective Polaris enthusiasts into the fold and has been proven to double the odds of a customer buying from the company in the future. Polaris Adventures lets customers rent the company's vehicles at over 200 outfitters across North America and explore the surrounding scenery.
S&P Global has a robust economic moat When companies borrow money from the public, it's important for prospective investors to understand the company's health, whether it will be able to repay its debts, and the risks associated with investing in that debt. Is now the time to buy S&P Global?
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