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Domo, DigitalOcean, Stitch Fix, BJ's, and Denny's Stocks Trade Up, What You Need To Know

Domo, DigitalOcean, Stitch Fix, BJ's, and Denny's Stocks Trade Up, What You Need To Know

Yahoo6 days ago

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
Data Analytics company Domo (NASDAQ:DOMO) jumped 5.5%. Is now the time to buy Domo? Access our full analysis report here, it's free.
Data Storage company DigitalOcean (NYSE:DOCN) jumped 5.1%. Is now the time to buy DigitalOcean? Access our full analysis report here, it's free.
Apparel and Accessories company Stitch Fix (NASDAQ:SFIX) jumped 5.1%. Is now the time to buy Stitch Fix? Access our full analysis report here, it's free.
Sit-Down Dining company BJ's (NASDAQ:BJRI) jumped 5.3%. Is now the time to buy BJ's? Access our full analysis report here, it's free.
Sit-Down Dining company Denny's (NASDAQ:DENN) jumped 5.3%. Is now the time to buy Denny's? Access our full analysis report here, it's free.
Domo's shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 6.2% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Domo is up 93.4% since the beginning of the year, and at $13.71 per share, it is trading close to its 52-week high of $14.63 from June 2025. Investors who bought $1,000 worth of Domo's shares 5 years ago would now be looking at an investment worth $442.83.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

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Europe Frets About US Retreating From Region Ahead of NATO
Europe Frets About US Retreating From Region Ahead of NATO

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time28 minutes ago

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Europe Frets About US Retreating From Region Ahead of NATO

(Bloomberg) -- NATO's European allies are focused on getting through this week's summit unscathed. But even if President Donald Trump is satisfied with fresh pledges to ramp up spending, anxiety is growing about the US military presence in the region. Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Only after the June 24-25 summit meeting in The Hague – where North Atlantic Treaty Organization members will pledge to spend 5% of GDP on defense – will the US present its military review, which will spell out the scope of what are likely significant reductions in Europe. With some 80,000 US troops in Europe, governments in the region have factored in at least a reversal of the military surge under former President Joe Biden of about 20,000 troops. The stakes got significantly higher overnight after US struck nuclear sites in Iran with the risk that Trump will get sucked into a spiraling conflict in the Middle East after being a vocal critic of US military involvement overseas. His foreign policy U-turn will be a topic that will be hard to avoid at the gathering, especially with NATO ally Turkey present and a key stakeholder in the region. Europeans have been kept in the dark on the Trump administration's plans. But officials in the region are bracing potentially for a far bigger withdrawal that could present a dangerous security risk, according to officials familiar with the discussions who declined to be identified as closed-door talks take place before the review. Up until early June, no official from the US had come to NATO to talk about the US force posture review, spurring concern among allies that this could be done at very short notice, according to a person familiar with the matter. It's unclear whether European nations have started planning to fill any potential gaps left by US forces. Withdrawing the aforementioned 20,000 troops could also have an even greater impact if other NATO allies follow the US lead and remove their troops from the east. The worry with even deeper cuts impacting US bases in Germany and Italy is they could encourage Russia to test NATO's Article 5 of collective defense with hybrid attacks across the alliance, the person familiar also said. Since returning to the White House, Trump and his allies have warned European capitals that – despite the mounting threat from Russia – they need to take charge of their security as the US turns its military and diplomatic focus to the Indo-Pacific region. Contacted by Bloomberg, NATO declined to respond to questions but referred to a statement by NATO Secretary General Mark Rutte in early June. When asked about a US drawdown from Europe, he said it was normal they would pivot to Asia. 'I'm not worried about that, but I'm absolutely convinced we will do that in a step-by-step approach,' Rutte said then. 'There will be no capability gaps in Europe because of this.' The White House referred questions to the Pentagon. 'The U.S. constantly evaluates force posture to ensure it aligns with America's strategic interests,' a defense official responded. The geopolitical shift is likely to have enormous consequences for the 32-member alliance, which is weathering its greatest challenge since it became the bulwark against Soviet power in the decades after World War II. European militaries long reliant on American hard power will have to fill the gap as Washington scales back. If a troop reduction focuses on efficiency, it would be far less problematic for Europeans than one that hits critical assets and personnel that Europe couldn't replace immediately, according to one European diplomat. The nature of a withdrawal would be more important than the troop numbers, the person said. A dramatic pullout announcement is likely to trigger an instant reaction from eastern member states, with those closer to Russia immediately requesting deployments from Western European allies. The holistic review of the US military, which Defense Secretary Pete Hegseth says should focus on threats facing the US, is meant to reflect the tilt in the global power dynamic, bringing potentially large-scale redeployment of weapons and troops. But European diplomats have bristled at the timing of the review, taking place only after NATO signs off on its most ambitious new weapons targets since the Cold War — with member states agreeing to foot the bill. A withdrawal that is more dramatic than anticipated will mean that, after acceding to Trump's ramp-up in defense spending, they still may be left with a heavy burden to respond to a rapidly growing Russian military. 'We would be remiss in not reviewing force posture everywhere, but it would be the wrong planning assumption to say, 'America is abandoning'' or leaving Europe, Hegseth said in Stuttgart in February. 'No, America is smart to observe, plan, prioritize and project power to deter conflict.' After the Trump administration balked at providing a backstop to European security guarantees to Ukraine, a pullout of more US troops could embolden Russia's Vladimir Putin, according to people familiar with the matter. 'The question is when pressure is on for a greater focus on the Indo-Pacific, what capabilities do they need to think about moving,' said Matthew Savill, director of military sciences at RUSI, a defense think tank. 'I don't get an impression that they have yet decided what that means for force levels in specific terms.' Germany, Europe's richest and most populous nation, is positioning itself to take on the largest share of the redistribution. 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Are Investors Undervaluing Tapestry, Inc. (NYSE:TPR) By 31%?
Are Investors Undervaluing Tapestry, Inc. (NYSE:TPR) By 31%?

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time44 minutes ago

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Are Investors Undervaluing Tapestry, Inc. (NYSE:TPR) By 31%?

Tapestry's estimated fair value is US$122 based on 2 Stage Free Cash Flow to Equity Tapestry is estimated to be 31% undervalued based on current share price of US$84.33 Our fair value estimate is 37% higher than Tapestry's analyst price target of US$89.08 Today we will run through one way of estimating the intrinsic value of Tapestry, Inc. (NYSE:TPR) by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$1.15b US$1.20b US$1.33b US$1.43b US$1.52b US$1.60b US$1.68b US$1.74b US$1.81b US$1.87b Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x2 Est @ 7.68% Est @ 6.26% Est @ 5.26% Est @ 4.56% Est @ 4.08% Est @ 3.74% Est @ 3.50% Present Value ($, Millions) Discounted @ 8.4% US$1.1k US$1.0k US$1.0k US$1.0k US$1.0k US$985 US$950 US$912 US$872 US$832 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$9.7b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. 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 8.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$1.9b× (1 + 2.9%) ÷ (8.4%– 2.9%) = US$35b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$35b÷ ( 1 + 8.4%)10= US$16b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$25b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$84.3, the company appears quite good value at a 31% discount to where the stock price trades currently. 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. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. 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 Tapestry 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 8.4%, which is based on a levered beta of 1.272. 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. See our latest analysis for Tapestry Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Luxury market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are 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 shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Tapestry, there are three additional factors you should further research: Risks: To that end, you should be aware of the 3 warning signs we've spotted with Tapestry . Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for TPR's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. 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. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks 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.

Declining Stock and Decent Financials: Is The Market Wrong About Dayforce Inc. (NYSE:DAY)?
Declining Stock and Decent Financials: Is The Market Wrong About Dayforce Inc. (NYSE:DAY)?

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timean hour ago

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Declining Stock and Decent Financials: Is The Market Wrong About Dayforce Inc. (NYSE:DAY)?

Dayforce (NYSE:DAY) has had a rough three months with its share price down 6.0%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Dayforce's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dayforce is: 1.0% = US$26m ÷ US$2.6b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.01 in profit. View our latest analysis for Dayforce Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. It is quite clear that Dayforce's ROE is rather low. Even compared to the average industry ROE of 20%, the company's ROE is quite dismal. Dayforce was still able to see a decent net income growth of 15% over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. As a next step, we compared Dayforce's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is DAY fairly valued? This infographic on the company's intrinsic value has everything you need to know. Dayforce doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above. In total, it does look like Dayforce has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. 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

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