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Fortunately, it looks like Alibaba has a clear plan to unlock shareholder value. Delivering almost zero value to shareholders Alibaba was at its peak when it came public in 2014. But unlike 2014, when investors were optimistic about Alibaba's prospects, investors today are incredibly pessimistic. Image source: Getty Images.
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. That is the value of holding shares of strong companies with a long record of paying dividends to shareholders.
Expanding the store base has helped drive up sales over the years, leading to impressive shareholder gains for longtime investors. For example, had you bought the stock 20 years ago, you'd have generated a monster total return of 1,520%. Home Depot clearly dominates the home improvement industry.
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."
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). Here's the lowdown on a fascinating industry.
If you're a current shareholder or are looking to buy shares, you'll want to consider the following first. This affects short-term earnings, as the rising costs squeeze profits and require a higher return on investment to make acquisitions worthwhile. Should you invest $1,000 in Agree Realty right now?
Palantir shareholders might also remember in 2021 when CEO Alex Karp forecasted a 30% revenue growth rate in the 2022-2024 time frame. Foundry helps businesses make better decisions and solve problems, and Forrester estimated Foundry delivers a 315% return on investment (ROI) for its users. Should I buy Palantir in 2024?
The good news for shareholders of Enterprise Products Partners is that it's resilient in good times and bad times. 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. No one knows for sure what 2024 will bring.
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. The stock currently trades at a trailing price-to-earnings (P/E) ratio of 19.6.
The second number shareholders must pay attention to is monetization, as measured by average revenue per user (ARPU). Maybe another advertising channel is seeing a better return on investment. CEO Mark Zuckerberg specifically called out the strength of WhatsApp in the U.S. That's a good sign. This figure came in at $11.20
Shareholders should be pleased after the stock rallied 200% over the past year. Aggressive spending on the business, without any up-front return on investment, had soured Wall Street on Meta's prospects. Fellow technology giant Meta Platforms (NASDAQ: META) is no slouch. Its shares plunged as low as $89 in 2022.
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. A high-growth restaurant John Ballard (Chipotle Mexican Grill): Chipotle has been a stellar performer for shareholders over the last decade. billion-$4.25
The company's return on invested capital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. That's not a misleading accounting ratio, either -- Emerson's free cash flow was more than $1 billion higher than its cash distributions to shareholders last year. With only $7.6
This benefits shareholders directly because management allocates these excess earnings toward dividend payments. One clear reason investors might be discouraged from buying Ford stock is because of its growth prospects. Ford's operating margin and return on invested capital in the past decade have averaged 2% and 2.3%, respectively.
A near-forever business is the gift that keeps on giving Jason Hall (Berkshire Hathaway): 2023 will be remembered by most Berkshire Hathaway shareholders and followers as the year we lost Charlie Munger. Count me among those who think Munger's impact on Warren Buffett is probably underappreciated by the wider investing community.
Finally, I'll finish my remarks by narrowing in on specific actions we're taking in the near term to drive improved profitability and enhance shareholder value in 2025. Given the rapid pace of additive technology evolution for both healthcare and industrial applications, we have great confidence in our longer-term growth prospects.
Even the great Warren Buffett agrees with this view, as Berkshire Hathaway has been a sizable shareholder for nearly a decade. Return on invested capital (ROIC) is often viewed as the single most important indicator of whether a business has developed an economic moat. Apple's innovation is second to none. billion in revenue.
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.
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. Armed with this profitability -- and free cash flows that have roughly equaled net income historically -- Polaris has handsomely rewarded its shareholders over time.
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. This suggests sharing success with shareholders is important to the company.
Repurchases offer "a simple way for investors to own an ever-expanding portion of exceptional businesses," Buffett wrote in his 2020 shareholder letter as he referred to the Apple holding. Why would Buffett, who generally doesn't focus on tech stocks, invest in a tech giant like Apple? Today, Berkshire owns about 5.8% of the company.
billion in debt and returned $1.6 billion in capital to shareholders due to dividend and share repurchases, lowering our leverage in line with our objectives and continuing our balanced capital allocation discipline. Finally, in 2024, we returned $1.6 billion in capital to shareholders, including $1 billion of share repurchases.
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
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. However, it's important to recognize the company's improving capacity to return value to shareholders.
Investors are always looking for stocks with unusually strong growth prospects. Here are three such standouts that poised to generate excellent returns for patient shareholders from here. But that underperformance is about the weak short-term outlook rather than the excellent long-term prospects for the business.
The stock is less front-facing to the public when it comes to AI potential than Nvidia (NASDAQ: NVDA) or Palantir (NYSE: PLTR) , but its growth prospects and modest valuation make it an appealing stock idea worth considering. That means creating value for shareholders over time. Enter Super Micro Computer (NASDAQ: SMCI). Here is why.
Ideally, your nest egg will generate passive income, so you don't need to sell your investments to live off of them. Mature, profitable companies with long track records of paying shareholders, and also increasing the amount they pay yearly, can be a strong foundation for any retirement portfolio. Dividends can do this well.
These incidents demanded swift crisis management and care, while Carnival's growth prospects were carefully safeguarded and key initiatives remain in place. Carnival recognizes the importance of incident management to ensure customer safety, rebuild trust, and deliver exceptional experiences, thereby generating value for shareholders.
Averaging a top-tier cash return on invested capital (ROIC) of 34% over the last decade, Rollins is one of the best compounders on the market, as evidenced by it being a 113-bagger since 2000. This fact, paired with the industry consolidation potential ahead of Rollins, gives it tantalizing growth prospects.
Still, some well-performing companies don't get as much attention from investors but have quietly been delivering massive shareholderreturns over the years. This not only helps customers improve their return on investment (ROI), but also improves their workflows. Image source: Getty Images.
American Electric Power has demonstrated steadfast dedication to the dividend, returning capital to shareholders with a distribution for 112 years. Should the company achieve its target of returning $3.37 It's also accelerating renewable energy investments during a weak time in that industry. since 2010.
Various remarks that we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. We do this through a combination of strategic M&A and substantial return of capital to our shareholders.
During the quarter, we grew revenue and adjusted EBITDA, expanded our adjusted EBITDA margins, and generated strong operating cash flow, which allowed us to invest in the business and return cash to shareholders. As you know, we and our board are maniacally focused on driving shareholder value. Hey, Jake, great question.
A consistently high return on invested capital (ROIC) also offers convincing evidence of ASML's competitive advantage and operational excellence. ASML certainly comes at a premium price, but the company's quality and prospects justify the valuation to many investors. The stock's 0.8%
Summer may be a great time for taking a cruise -- but it hasn't been a particularly bright time for Carnival (NYSE: CCL) (NYSE: CUK) shareholders. Improving return on invested capital Carnival has set out a strategic plan it dubbed SEA Change with a trio of three-year goals. 10 stocks we like better than Carnival Corp.
The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. In the third quarter, we recorded shareholders' net income of $739 million or $2.63 This is driven by a noncash after-tax net realized investment loss of $1 billion or $3.69 per share related to VillageMD.
Today's discussion may contain forward-looking statements, including, without limitation, statements about our new organization and governance structure, strategies and business plans, as well as our belief and expectations about our business prospects, such as future growth of our business, revenue, and return on investments.
of every revenue dollar winds up as free cash flow , which Visa often sends to shareholders one way or the other. Mastercard stands out from the crowd with a superior return on invested capital, which has averaged a staggering 47% over the past five years, besting even Visa, which has averaged 25%.
We'd like to welcome all of our shareholders, analysts, and most importantly, our employees to Core Laboratories third-quarter 2024 earnings call. Chris will then give a detailed financial overview and have additional comments regarding shareholder value. Lawrence Bruno -- Chairman and Chief Executive Officer Thanks, Danielle.
All a stock price tells you is what other investors or prospective investors or soon to be former investors are willing to transact at the moment. All you really needed to know was premier cash generating story of our generation and religious about returning that cash of shareholders. That's actually not bad. four years ago.
As a result, the new integration will position both of our companies to expand market share, streamline benefits, and drive higher return on investment for joint clients. As always, I would like to sincerely thank our customers, our partners, Team Zeta, and all of our shareholders for the ongoing support of our vision.
We still expect to generate over $8 billion in free cash flow this fiscal year and the shareholderreturn goals we've previously spoken about are also still very much on track. But overall, business is in great shape and we feel good about the growth prospects. With a business with that profile, you invest in it.
We have designed our capital investment programs to ensure that we will continue to be the market leader in the years ahead. Our approach allows us to grow fast from the long term and large share EBITDA and generate industry-leading returns on invested capital. Turning to our program to return capital to state to shareholders.
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