Latest news with #PRPL
Yahoo
12 hours ago
- Business
- Yahoo
3 Stocks Under $10 with Open Questions
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn't mean they're bargains though, and we urge investors to be careful as many have risky business models. The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead. Share Price: $7.16 With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ:UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics. Why Are We Wary of UDMY? Customer spending has dipped by 1.6% on average as it focused on growing its buyers Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum Udemy's stock price of $7.16 implies a valuation ratio of 11.1x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than UDMY. Share Price: $0.74 Founded by two brothers, Purple (NASDAQ:PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories. Why Should You Dump PRPL? Sales tumbled by 6.3% annually over the last two years, showing consumer trends are working against its favor Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Purple is trading at $0.74 per share, or 24.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why PRPL doesn't pass our bar. Share Price: $1.33 Pioneering what scientists call "HiFi long-read sequencing," recognized as Nature Methods' method of the year for 2022, Pacific Biosciences (NASDAQ:PACB) develops advanced DNA sequencing systems that enable scientists and researchers to analyze genomes with unprecedented accuracy and completeness. Why Should You Sell PACB? Sales trends were unexciting over the last two years as its 6.6% annual growth was below the typical healthcare company Free cash flow margin dropped by 29.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $1.33 per share, PacBio trades at 2.4x forward price-to-sales. To fully understand why you should be careful with PACB, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio 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
24-04-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock with Solid Fundamentals and 2 to Approach with Caution
Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it's important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts. Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock where Wall Street's positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive. Consensus Price Target: $2 (161% implied return) Founded by two brothers, Purple (NASDAQ:PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories. Why Do We Pass on PRPL? Annual revenue declines of 7.7% over the last two years indicate problems with its market positioning Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $0.71 per share, Purple trades at 0.2x forward price-to-sales. Read our free research report to see why you should think twice about including PRPL in your portfolio, it's free. Consensus Price Target: $7.58 (139% implied return) Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States. Why Are We Cautious About EVGO? Poor expense management has led to operating losses Cash-burning history makes us doubt the long-term viability of its business model Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders EVgo's stock price of $2.60 implies a valuation ratio of 165.5x forward EV-to-EBITDA. If you're considering EVGO for your portfolio, see our FREE research report to learn more. Consensus Price Target: $31.56 (15.5% implied return) With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ:OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States. Why Do We Like OPCH? Impressive 16.7% annual revenue growth over the last five years indicates it's winning market share this cycle Share buybacks catapulted its annual earnings per share growth to 75.4%, which outperformed its revenue gains over the last five years Free cash flow margin grew by 2.4 percentage points over the last five years, giving the company more chips to play with Option Care Health is trading at $33.29 per share, or 25.5x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
Yahoo
14-03-2025
- Business
- Yahoo
Purple Innovation Inc (PRPL) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...
Net Revenue: $129 million for Q4, down 11.6% from $145.9 million in the prior year. Gross Margin: 42.9% for Q4, an improvement of 970 basis points compared to last year. Adjusted Gross Margin: 44.9% for Q4, up 810 basis points year-over-year. Adjusted EBITDA: $2.9 million for Q4, improved from negative $9.8 million last year. Adjusted Net Loss: $8 million for Q4, improved from $15.8 million loss last year. Cash and Cash Equivalents: $29 million at year-end, up from $26.9 million the previous year. Net Inventories: $56.9 million at year-end, down 15% year-over-year. Full-Year Net Revenue: $487.9 million, down 4.4% from $510.5 million last year. Full-Year Gross Margin: 37.1%, up 350 basis points from last year. Full-Year Adjusted EBITDA: Negative $20.8 million, improved from a $54.7 million loss last year. 2025 Revenue Guidance: Expected to be in the range of $465 million to $485 million. 2025 Adjusted EBITDA Guidance: Expected to be flat to up $10 million. Warning! GuruFocus has detected 4 Warning Signs with PRPL. Release Date: March 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Purple Innovation Inc (NASDAQ:PRPL) achieved adjusted EBITDA profitability for the first time in eight quarters, indicating improved financial health. Gross margin improved significantly to 42.9%, up 970 basis points from the previous year, showcasing effective cost management. The successful launch of the PurpleRenew mattress in 170 Costco locations expanded market presence and complemented online sales. The Rejuvenate 2.0 mattress line and expanded pillow collection were well-received, securing new distribution points and generating excitement. Cost-saving initiatives, including manufacturing consolidation, are projected to yield annual EBITDA savings of $25 million to $30 million, enhancing operational efficiency. Net revenue for the fourth quarter decreased by 11.6% compared to the previous year, reflecting ongoing challenges in consumer demand. The wholesale segment experienced a 23% decline in net revenue for the fourth quarter, indicating difficulties in this sales channel. E-commerce revenue was down 5.3% for the quarter, highlighting challenges in online sales performance. The company anticipates a potential impact of $2 million to $5 million from recently announced US tariffs, which could affect profitability. The broader macroeconomic landscape remains challenging, with softening consumer demand impacting sales performance. Q: Can you explain the cost savings expected for 2025 and how they will be realized throughout the year? A: Todd Vogensen, CFO, explained that cost of sales-related savings are expected to be about $7 million to $10 million annualized, starting mainly in Q2, with three quarters of savings expected in 2025. Operating expense savings, having already generated $4 million in 2024, will continue to be realized over 2025. Q: How is the launch of the Rejuvenate product expected to impact revenue seasonality in 2025? A: Robert Demartini, CEO, stated that the Rejuvenate product will have a "hard launch" on April 15 in showrooms and online, with wholesale launches taking three to five months to fully roll out. The product is expected to significantly contribute to revenue, especially in the second half of the year. Q: Why is now the right time for Purple Innovation to explore strategic alternatives? A: Robert Demartini, CEO, mentioned that the decision was influenced by inbound interest and industry consolidation trends. The Board felt it was the right time to evaluate all potential outcomes to maximize shareholder value, including the possibility of not making any changes. Q: Is there a shift in strategy regarding wholesale partnerships and door growth opportunities? A: Robert Demartini, CEO, clarified that while the focus remains on improving productivity in existing wholesale doors, there are opportunities for growth in new doors, potentially adding 200 to 300 traditional doors. The company is also exploring alternative distribution channels like Costco and HomeGoods. Q: How is the current consumer demand affecting Purple Innovation's business, and what is the outlook for 2025? A: Robert Demartini, CEO, noted that consumer demand has been soft, particularly around President's Day, and the company is cautious about demand recovery. The 2025 plan is focused on cost management rather than relying on market improvement, with expectations for positive EBITDA in the second half driven by cost savings and new product launches. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
