Core Viewpoint - DXP Enterprises (DXPE) has experienced significant selling pressure, resulting in an 11.4% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 indicating oversold conditions [2] - DXPE's current RSI reading is 29.19, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5] - RSI serves as a momentum oscillator that helps identify potential price reversals, indicating that unwarranted selling may present entry opportunities for investors [3] Group 2: Fundamental Analysis - There is a consensus among sell-side analysts that earnings estimates for DXPE have increased by 0.4% over the last 30 days, which typically correlates with price appreciation [7] - DXPE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Z ...

Core Viewpoint - The importance of cash flow in assessing a company's financial health and investment potential is emphasized, highlighting that cash flow is a critical indicator of a company's ability to sustain growth and manage obligations effectively [1][2][3]. Cash Flow Analysis - Companies must be evaluated not just on profit but on their efficiency in generating cash flows, as a lack of cash flow can lead to financial difficulties even for profitable firms [2]. - In the current global economic climate, characterized by uncertainties and liquidity concerns, analyzing a company's cash-generating efficiency is particularly relevant [3]. - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity and reduced operational flexibility [4]. Growth and Management Efficiency - A company must not only maintain positive cash flow but also ensure that it is increasing over time, reflecting effective cash management and reduced reliance on external financing [5]. Screening Parameters for Investment - A screening process was established to identify stocks with increasing cash flow, focusing on those whose latest reported cash flow is at least equal to the 5-year average cash flow per share, indicating a positive trend [6]. - Additional criteria include a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price of at least $5, and a VGM Score of B or better [7]. Selected Stocks - **Nomad Foods Limited (NOMD)**: Engages in frozen food manufacturing and distribution, with a Zacks Consensus Estimate for 2025 earnings per share improving by 4.0% recently and a VGM Score of A [8]. - **DXP Enterprises, Inc. (DXPE)**: Provides innovative pumping solutions and services, with a current-year earnings estimate revised upward by 22.5% over the past two months and a VGM Score of B [9]. - **Great Lakes Dredge & Dock Corporation (GLDD)**: The largest provider of dredging services in the U.S., with a 34.8% upward revision in the 2025 earnings estimate to 93 cents per share and a VGM Score of A [10]. - **Kingstone Companies, Inc. (KINS)**: Offers property and casualty insurance products, with a 5.6% improvement in the 2025 earnings estimate to $1.90 and a VGM Score of A [10].

Company Performance - DXP Enterprises (NASDAQ: DXPE) reported solid double-digit growth in its topline as it entered 2025, primarily driven by nearly 39% growth in its Innovative Pumping Solutions (IPS) segment [1] Growth Outlook - The growth momentum in the IPS segment is expected to continue, indicating a positive outlook for the company's future performance [1]

Financial Performance - For the three months ended March 31, 2025, DXP Enterprises reported total sales of approximately $476.6 million, an increase of 15.5% compared to $412.6 million for the same period in 2024[107]. - Gross profit for the three months ended March 31, 2025, was $150.3 million, resulting in a gross profit margin of 31.5%, up from 30.0% in the prior year[107]. - EBITDA for the same period was $51.0 million, with an EBITDA margin of 10.7%, compared to 9.4% in the previous year[98]. - Operating income for Q1 2025 increased by $11.4 million to $40.5 million, reflecting growth in the SC and IPS segments[112]. - Total DXP Sales for the three months ended March 31, 2025, increased by $63.9 million, or 15.5%, to $476.6 million compared to $412.6 million in the prior year[108]. Sales Growth - Sales in the Service Centers segment increased by $38.6 million, while the Innovative Pumping Solutions segment saw an increase of $24.0 million, contributing to the overall sales growth[107]. - The Company experienced a 17.9% increase in sales in its Service Centers and Innovative Pumping Solutions segments, totaling approximately $413.3 million for the quarter[93]. - Sales in the Service Centers segment rose by $38.6 million, or 13.4%, driven by increases in the Texas Gulf Coast, Ohio River Valley, and California regions[108]. - Innovative Pumping Solutions segment sales increased by $24.0 million, or 38.5%, attributed to growth in fabrication and global solutions groups[109]. - The Supply Chain Services segment reported sales of approximately $63.3 million, a 2.1% increase compared to the same period in 2024[94]. - Supply Chain Services segment sales grew by $1.3 million, or 2.1%, primarily due to increases in the oil and gas end market[110]. Cash Flow and Debt - Free cash flow for the three months ended March 31, 2025, was $(16.9) million, a decrease from $24.1 million in the same period of 2024[98]. - Total outstanding debt as of March 31, 2025, was $647.3 million, representing 59.3% of total capitalization[129]. - Cash available as of March 31, 2025, was $114.3 million, with an additional $108.9 million in credit facility availability[123]. - Working capital increased by $34.3 million to $325.3 million as of March 31, 2025, due to sustained sales growth and acquisitions[136]. Expenses and Economic Conditions - SG&A expenses rose by $15.0 million, or 15.8%, to $109.8 million, mainly due to higher payroll and related expenses[111]. - DXP Enterprises is actively monitoring economic conditions and adjusting strategies to mitigate risks associated with inflation and supply chain challenges[90].

NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com DXP ENTERPRISES, INC. REPORTS FIRST QUARTER 2025 RESULTS Page 1 • $114.3 million in cash • $476.6 million in sales, a 15.5 percent year-over-year increase • GAAP diluted EPS of $1.25 • $52.5 million in earnings before interest, taxes, depreciation & amortization and other non-cash charges ("Adjusted EBITDA") • Completed the acquisition of Arroyo Process Equipment Houston, TX – May 7, 2025 – DXP Enterprises, Inc. ("DXP" or th ...

DXP Enterprises (DXPE) Q1 2025 Earnings Call May 08, 2025 11:30 AM ET Company Participants Kent Yee - SVP & Chief Financial OfficerDavid Little - Chairman of the Board, President & CEOZach Marriott - Research Associate Operator Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises First Quarter twenty twenty five Earnings Release. All lines have been placed on mute to prevent any ...

DXP Enterprises (DXPE) Q1 2025 Earnings Call May 08, 2025 11:30 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises First Quarter twenty twenty five Earnings Release. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the conference over ...

FORWARD LOOKING STATEMENTS Presented by: David Little Chairman, President & CEO Kent Yee Senior Vice President & CFO NASDAQ: DXPE Results for Q1 Fiscal 2025 Earnings Announcement: May 8, 2025 (Quarter Ending March 31, 2025 ) This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws that involve risks and uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expectations, beliefs, intentions ...

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