Latest news with #valueinvesting
Yahoo
an hour ago
- Business
- Yahoo
3 Value Stocks Skating on Thin Ice
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues. Separating the winners from the value traps is a tough challenge, and that's where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. Keeping that in mind, here are three value stocks with little support and some other investments you should consider instead. Forward P/E Ratio: 6.3x The first homebuilder to be listed on the NYSE, KB Home (NYSE:KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets. Why Should You Sell KBH? Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 22.9% declines over the past two years Earnings per share have dipped by 5.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term 5.5 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position KB Home's stock price of $50.62 implies a valuation ratio of 6.3x forward P/E. To fully understand why you should be careful with KBH, check out our full research report (it's free). Forward P/E Ratio: 4.6x Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ:IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments. Why Do We Avoid IART? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.2% annually while its revenue grew Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 17.1 percentage points Integra LifeSciences is trading at $11.90 per share, or 4.6x forward P/E. Check out our free in-depth research report to learn more about why IART doesn't pass our bar. Forward P/B Ratio: 0.9x Founded in 1846 as a community financial institution in Massachusetts, Berkshire Hills Bancorp (NYSE:BHLB) is a regional bank holding company that provides commercial banking, retail banking, wealth management, and lending services through branches across the Northeast. Why Does BHLB Give Us Pause? Net interest income trends were unexciting over the last four years as its 3.7% annual growth was below the typical bank company Forecasted tangible book value per share decline of 14.8% for the upcoming 12 months implies profitability will deteriorate significantly Flat ROE reflects management's challenges in identifying attractive investment opportunities At $23.89 per share, Berkshire Hills Bancorp trades at 0.9x forward P/B. If you're considering BHLB for your portfolio, see our FREE research report to learn more. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. 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
Yahoo
10 hours ago
- Business
- Yahoo
European Value Stocks Trading At Estimated Discounts
Amid renewed uncertainty about U.S. trade policy and escalating geopolitical tensions in the Middle East, European markets have experienced a downturn, with major stock indexes like Germany's DAX and Italy's FTSE MIB seeing significant declines. In this environment of market volatility, identifying value stocks—those trading at prices lower than their intrinsic worth—can present opportunities for investors seeking potential discounts in the European market. Name Current Price Fair Value (Est) Discount (Est) VIGO Photonics (WSE:VGO) PLN518.00 PLN1019.78 49.2% TTS (Transport Trade Services) (BVB:TTS) RON4.31 RON8.45 49% Sparebank 68° Nord (OB:SB68) NOK180.00 NOK358.42 49.8% Qt Group Oyj (HLSE:QTCOM) €54.60 €108.05 49.5% Lectra (ENXTPA:LSS) €23.90 €46.66 48.8% Koskisen Oyj (HLSE:KOSKI) €8.80 €17.34 49.2% Società Benefit (BIT:ICOP) €13.00 €25.66 49.3% doValue (BIT:DOV) €2.22 €4.43 49.9% CTT Systems (OM:CTT) SEK208.50 SEK407.80 48.9% Boreo Oyj (HLSE:BOREO) €14.85 €29.48 49.6% Click here to see the full list of 179 stocks from our Undervalued European Stocks Based On Cash Flows screener. Let's dive into some prime choices out of the screener. Overview: Lumibird SA designs, manufactures, and sells lasers for scientific, industrial, and medical applications internationally, with a market cap of €352.15 million. Operations: The company's revenue is primarily derived from its Medical segment, contributing €107.75 million, and its Photonic segment, which adds €99.37 million. Estimated Discount To Fair Value: 35% Lumibird is trading at €16, significantly below its estimated fair value of €24.62, presenting a compelling case for undervaluation based on discounted cash flow analysis. Despite high share price volatility and low forecasted return on equity of 8.7%, Lumibird's earnings are expected to grow significantly at 37.3% annually, outpacing the French market's average growth rate. Revenue growth is also projected to exceed the market average, enhancing its attractiveness despite recent large one-off items affecting results. The growth report we've compiled suggests that Lumibird's future prospects could be on the up. Click here to discover the nuances of Lumibird with our detailed financial health report. Overview: Kempower Oyj specializes in manufacturing and selling electric vehicle charging equipment and solutions for various modes of transportation across the Nordics, Europe, North America, and globally, with a market cap of €584.20 million. Operations: The company's revenue is primarily derived from its electric equipment segment, which generated €224.60 million. Estimated Discount To Fair Value: 20.6% Kempower Oyj, trading at €10.55, is undervalued compared to its estimated fair value of €13.29, based on discounted cash flow analysis. While the company is not yet profitable, it is expected to achieve profitability within three years with earnings forecasted to grow significantly by 59.84% annually. Recent strategic moves include a four-year testing collaboration with Etteplan and securing a €40 million green revolving credit facility, reinforcing its growth potential despite current share price volatility. According our earnings growth report, there's an indication that Kempower Oyj might be ready to expand. Get an in-depth perspective on Kempower Oyj's balance sheet by reading our health report here. Overview: Dätwyler Holding AG produces and sells elastomer components for various industries including healthcare, mobility, connectors, general, and food and beverage across Europe, North America, South America, Australia, and Asia with a market cap of CHF2.04 billion. Operations: The company's revenue is derived from two main segments: Healthcare Solutions, contributing CHF446 million, and Industrial Solutions, contributing CHF664.80 million. Estimated Discount To Fair Value: 41.2% Dätwyler Holding, trading at CHF120, is significantly undervalued compared to its estimated fair value of CHF204.01 based on discounted cash flow analysis. Although profit margins have decreased from last year and the dividend yield of 2.67% is not well-covered by earnings, the company's earnings are forecasted to grow substantially at 33.6% annually over the next three years, surpassing Swiss market growth expectations and indicating strong future profitability potential despite current financial challenges. The analysis detailed in our Dätwyler Holding growth report hints at robust future financial performance. Dive into the specifics of Dätwyler Holding here with our thorough financial health report. Reveal the 179 hidden gems among our Undervalued European Stocks Based On Cash Flows screener with a single click here. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This 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. Companies discussed in this article include ENXTPA:LBIRD HLSE:KEMPOWR and SWX:DAE. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
14 hours ago
- Business
- Yahoo
Why Lyft (LYFT) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike. Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks. Lyft, based in San Francisco, CA, was founded in 2012. The company, however, made its trading debut on the Nasdaq in March 2019. Its IPO price was $72 a share. Lyft completed its IPO on Apr 2, 2019. During the process, the company sold 32,500,000 shares of Class A common stock. On Apr 9, 2019, Lyft sold 2,996,845 more shares of Class A common stock at $72 per share. LYFT sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Internet - Services industry's P/E of 18.3X, shares of Lyft are trading at a forward P/E of 13.3X. LYFT also has a PEG Ratio of 0.6, a Price/Cash Flow ratio of 56.2X, and a Price/Sales ratio of 1X. A company's earnings performance is important for value investors as well. For fiscal 2025, seven analysts revised their earnings estimate higher in the last 60 days for LYFT, while the Zacks Consensus Estimate has increased $0.10 to $1.11 per share. LYFT also holds an average earnings surprise of 24.2%. Investors should take the time to consider LYFT for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lyft, Inc. (LYFT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
a day ago
- Business
- Yahoo
Federated Hermes (FHI) is a Top-Ranked Value Stock: Should You Buy?
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike. While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks. Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $839.8 billion in AUM as of March 31, 2025. It was formed from the merger between Federated Investors and Hermes Investment Management. FHI boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Federated Hermes are trading at a forward earnings multiple of 9.8X , as well as a PEG Ratio of 0.8, a Price/Cash Flow ratio of 12X, and a Price/Sales ratio of 2X. A company's earnings performance is important for value investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for FHI, while the Zacks Consensus Estimate has increased $0.42 to $4.33 per share. FHI also holds an average earnings surprise of 13.1%. FHI should be on investors' short list because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Federated Hermes, Inc. (FHI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Should Value Investors Buy Vontier (VNT) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. One stock to keep an eye on is Vontier (VNT). VNT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.95. This compares to its industry's average Forward P/E of 22.79. Over the last 12 months, VNT's Forward P/E has been as high as 12.96 and as low as 8.65, with a median of 11.28. We should also highlight that VNT has a P/B ratio of 4.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.65. Within the past 52 weeks, VNT's P/B has been as high as 6.21 and as low as 3.75, with a median of 5.12. Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VNT has a P/S ratio of 1.78. This compares to its industry's average P/S of 1.9. Value investors will likely look at more than just these metrics, but the above data helps show that Vontier is likely undervalued currently. And when considering the strength of its earnings outlook, VNT sticks out as one of the market's strongest value stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vontier Corporation (VNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
