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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 invested capital. It sells the servers, storage systems, rack-scale solutions, and other equipment needed to deploy the core hardware that powers AI platforms. SMCI Net Income (Annual) data by YCharts.
Second, investors must find stocks with favorable prospects for long-term growth. Favorable long-term growth prospects cannot exist without a durable competitive advantage. To quote Buffett, "A truly great business must have an enduring 'moat' that protects excellent returns on invested capital."
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 invested capital in the past five years.
For example, Enterprise delivered a double-digit return on invested capital (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.
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. But unlike 2014, when investors were optimistic about Alibaba's prospects, investors today are incredibly pessimistic.
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.
Maybe it's because some analysts (perhaps many of them) don't believe Nvidia's customers will see positive returns on investment (ROI) with their purchases of the company's GPUs. All of this translates to significant growth prospects for Nvidia, not just over the next 12 months but over the next 10 years and beyond.
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
This affects short-term earnings, as the rising costs squeeze profits and require a higher return on investment to make acquisitions worthwhile. Rising interest rates also make other, less risky income investments, like bonds or certificates of deposit , more attractive and put further pressure on the stock.
Amazon has a track record of growth in return on invested capital (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.
Foundry helps businesses make better decisions and solve problems, and Forrester estimated Foundry delivers a 315% return on investment (ROI) for its users. Given Palantir's recent and prospective growth, investors have many reasons to believe its growth could continue in 2024 and likely even beyond.
Since 2005, the company has never delivered a return on invested capital 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. Bancorp U.S.
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 perception of more space and flexibility adds value, appeals to a broader pool of prospective buyers, and makes your home more competitive with larger, more expensive homes," they explain. A well-planned kitchen renovation can offer one of the highest returns on investment (60%-80%), especially in today's market.
Accelerating revenue growth and prospects for an improving advertising market have pushed the stock up 17% this year, but Pinterest is not out of the woods yet. Shares of Pinterest (NYSE: PINS) have fallen 68% from the previous peak, but the image-based social media app is reporting much better growth than a year ago.
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 invested capital. 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 invested capital 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. between fiscal 2023 and 2028.
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 invested capital 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 invested capital -- these last two measures slipped in recent times as Shopify invested in its own logistics network. Now, let's discuss the share price.
Aggressive spending on the business, without any up-front return on investment, had soured Wall Street on Meta's prospects. Meta's business went back to the future Meta was once thought washed-up, a narrative that now seems like forever ago. Its shares plunged as low as $89 in 2022.
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 Invested Capital data by YCharts.
The company acquired Habana Labs in 2019, and that company's line of Gaudi AI chips is now garnering intense interest from prospective customers. Money is being hurled at building out GPU clusters no matter the cost, and no matter whether there's a clear return on investment. The AI market is in its gold rush phase right now.
The AI thesis is intact More bullish analysts think investors will soon have the lawsuit's impact priced into the stock and turn their attention to the core business, which has strong AI prospects that many investors may be overlooking. While Woo's report may feel a little dated, other analysts are also upping their price targets.
One clear reason investors might be discouraged from buying Ford stock is because of its growth prospects. Additionally, Ford must invest heavily in research and development and manufacturing capabilities just to maintain its current competitive position. Should market sentiment toward the company improve, there is upside.
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.
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.
Delta Air Lines 2022 2023 Long-Term Target Return on invested capital 8.40% 13.40% Mid-teens Weighted average cost of capital 8% 8% 8% Data source: Delta Air Lines. times the midpoint of management's free-cash-flow guidance, it's clear that the market is expressing some skepticism over Delta's prospects.
Here's what that tells us about Meta Platforms' prospects. Additionally, Meta Platforms hasn't given up on its metaverse idea, although that likely won't yield any significant return on investment soon. The company decreased expenses while benefiting from a rebound in the advertising market.
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.
Identifying dividend growth stocks with high returns on invested capital (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.
Airlines aren't productive (at least for shareholders) The ultimate test of whether a company is allocating capital productively for shareholders is the comparison between its return on invested capita l (ROIC) and its weighted average cost of capital (WACC).
The company's return on invested capital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. That does create additional risk for shareholders in the event that unexpected performance issues arise, but that shouldn't dissuade prospective investors. With only $7.6
The solar industry is too beaten down to pass up Daniel Foelber ( Invesco Solar ETF ): Despite multidecade growth prospects, the solar industry has been absent from this year's market rally. Rising interest rates make project financing more expensive and reduce the return on investment of utility-scale solar projects.
However, many of the once-soaring but now-sinking members of the Nasdaq still have excellent growth prospects. Where to invest $1,000 right now? More importantly, AWS continues to have exceptional growth prospects. The widely followed index is roughly 13% below its previous high, putting it squarely in correction territory.
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 invested capital of over 40% is superb. And this will encourage consumers to focus on existing home renovations.
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.
Return on invested capital (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. Besides Apple's softer growth prospects, with analysts projecting annualized earnings per share (EPS) growth of 10.8%
The Nasdaq Composite has returned an average annual return of 11% over the last 30 years. That comes out to a cumulative return of 2,440%. That's an enviable return on investment over the long term. If you want to beat that return, you need to invest in stocks with above-average growth prospects.
An innovative giant that rarely looks cheap Chuck Saletta (Amazon.com): As a value-focused investor, I like buying shares in companies where I can see a clear return on investment in the form of dividends or strong profitability. Its stock deserves to be under any investor's tree.
If DraftKings shares simply appreciate at the same rate as the online sports betting industry over the next six years, the company's stock should provide a lucrative 94% return on investment over this timeframe. That rate of return surpasses the historical average of around 10% per year for major benchmark indices like the S&P 500.
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 invested capital than Lowe's, particularly as it's able to drive higher revenue per location, thanks to business from pros.
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 invested capital over time. Everyone's portfolio should include a couple of monster stocks. What do I mean by "monster"?
The company's return on investment in a tower with three tenants can be as high as 24%. While demand is particularly robust in mature markets like North America, it is also growing around the world in less developed regions that may offer stronger long-term growth prospects. If it adds a second tenant that jumps to 74%.
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 invested capital of 5.7% They are more focused on its long-term profit prospects. Of the $30.5
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