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Why Nike Stock Dropped on Friday
The Motley Fool· 2025-07-11 17:39
Good news: Nike is trying to turn itself around. Bad news: Nike really needs a turnaround.Shares of shoes and sportswear company Nike (NKE -2.49%) gained 1.4% on Thursday before turning tail and losing nearly twice that much Friday. As of 12:45 p.m. ET, the stock is down 2.7%.Believe it or not, both the gain and the loss may have the same cause. Converse's new CEO laces upAs Retail Dive reported yesterday, Nike has decided to release Jared Carver from his role of Converse CEO. In an internal memo, the compa ...
Why Nike Stock Jumped 17% in June
The Motley Fool· 2025-07-02 10:14
Nike (NKE 3.38%) stock jumped 17% in June, according to data from S&P Global Market Intelligence. The market was happy with its latest quarterly update, and investors see a path toward a rebound. Getting back to growth Nike has had an awful few years, as its problems have evolved from supply chain issues to inflation to losing an edge in sports. It's cycled through several CEOs as it tries to work itself back up, and it's landed on veteran Elliott Hill, who may finally be making the decisions the company ne ...
Why Nike Stock Is Skyrocketing Today
The Motley Fool· 2025-06-27 15:40
Nike (NKE 18.32%) stock is surging in Friday's trading following the company's recent quarterly report. The footwear and apparel specialist's share price was up 14.5% as of 10:45 a.m. ET. At the same point in the daily session, the S&P 500 index was up 0.5%.After yesterday's market close, Nike published results for the fourth quarter of its last fiscal year -- which ended May 31. In addition to reporting sales and earnings for the period that topped Wall Street's expectations, the company also laid out forw ...
Why Shares in Advanced Auto Parts Crashed Today
The Motley Fool· 2025-06-24 17:58
Shares in auto parts retailer Advance Auto Parts (AAP -7.92%) were lower by more than 8% as of 11 a.m. today. The move came after Goldman Sachs downgraded the stock from neutral to a sell, amid concerns that it was losing market share to competitors. In addition, the Goldman Sachs analyst believes the current valuation relies on a margin recovery, which might not occur in the current environment.Slow going for Advance Auto PartsIt's hard enough for a Wall Street analyst to refrain from issuing a buy recomme ...
3 Magnificent Stocks to Buy in June
The Motley Fool· 2025-06-07 12:00
Investors can set themselves up for life with a portfolio of well-chosen growth stocks. Investing in companies that are likely to be earning substantially higher revenue and profits in 10 years than they are today will help you multiply your savings.To give you some ideas, three Fool.com contributors recently selected three stocks that they believe are positioned to deliver excellent returns in the coming years. Here's why they like Shopify (SHOP 6.17%), Cava Group (CAVA 0.93%), and Nike (NKE 0.22%). Riding ...
Nissan CEO says short-term focus is to fix the company
CNBC· 2025-06-04 08:57
Core Viewpoint - Nissan's CEO Ivan Espinosa emphasized the company's short-term focus on fixing its operational struggles to regain stability [1]. Group 1 - The company is currently prioritizing internal improvements to address its challenges [1]. - Espinosa expressed confidence in the robustness of the company's recovery plan [1].
Western Digital: Complete Turnaround In Operations
Seeking Alpha· 2025-05-20 18:52
Western Digital Corporation (NASDAQ: WDC ) has recently experienced a massive decline and a subsequent rally from its lows back in April. I wanted to check on the company’s performance and give some comments on its outlook, and some assumptions forMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also se ...
Should You Buy Starbucks Stock With $1,000 Right Now and Hold for 5 Years?
The Motley Fool· 2025-05-03 09:47
Core Viewpoint - Starbucks is undergoing a significant turnaround under CEO Brian Niccol's "Back to Starbucks" plan, aiming to regain customer loyalty and improve financial performance, although challenges remain ahead [1]. Financial Performance - For the second quarter of 2025, Starbucks reported revenue of $8.8 billion, a 2.3% increase year-over-year, but this figure fell short of Wall Street expectations [2]. - The company experienced a same-store sales decline of 1%, marking the fifth consecutive year-over-year drop, with a 4% decrease in U.S. transactions, while China saw a 4% increase in transactions but was offset by a 4% decline in average ticket size [3]. - Earnings per share fell by 50% in Q2, primarily due to increased labor costs, as the company focuses on investing in its workforce to enhance customer experience [4][5]. Strategic Initiatives - Starbucks is investing in its workforce, which is considered its most valuable asset, to improve customer experience, although there are concerns about the sustainability of higher labor costs and the potential impact on operating margins [5]. - The company is leveraging its strong brand presence and competitive advantage to navigate financial challenges, with a new marketing campaign in the U.S. showing positive consumer resonance [6][7]. - Positive operational trends include a new sequencing algorithm that allows 75% of orders to be served in under four minutes, and a 40% year-over-year sales increase for matcha beverages after customer feedback led to the removal of sugar from the powder [8]. Investor Sentiment - While management remains optimistic about Starbucks' future, it is advised that investors exercise patience and wait for tangible financial improvements, particularly in same-store sales and operating margins, before considering investment [9][10]. - The current price-to-earnings ratio stands at 25.8, which is viewed as a high valuation for a company undergoing a challenging turnaround [11].
Starbucks is staffing up its stores with baristas and ditching machines in the latest stage of its turnaround
Business Insider· 2025-04-29 22:46
Starbucks is planning to roll out the new approach, called the Green Apron Service model, starting next month. The goal is to have it in about a third of its US locations by the end of its 2025 fiscal year. "We're finding that investments in labor rather than equipment are more effective" at getting customers their orders and growing sales, Niccol said. Starbucks' shares were trading nearly 7% lower after hours on Tuesday after the company outlined its plans to invest in employee hours. The company reported ...
After a Big Vote of Confidence for Hertz's Turnaround, Is the Stock Finally a Buy Now?
The Motley Fool· 2025-04-27 13:15
Core Viewpoint - Hertz Global Holdings has experienced significant volatility, including a bankruptcy due to the COVID-19 pandemic, followed by a turnaround plan that has not gained traction [1] - Investor Bill Ackman has made a substantial investment in Hertz, believing in its potential for a brighter future [1][2] Investment Details - Pershing Square disclosed the purchase of 12.7 million shares of Hertz, leading to a significant increase in Hertz's stock price [2] - Ackman sees potential in Hertz's rental car business amid tariff uncertainties, particularly due to its fleet of over 500,000 vehicles valued at approximately $12 billion [5][6] Asset Valuation - A 10% increase in used car prices could result in a $1.2 billion gain for Hertz's automotive assets, which is significant compared to its current market capitalization of $2.7 billion [6] - Ackman believes that the market undervalues Hertz's assets, although the recent stock price increase may have corrected this perception [6][10] Operational Improvements - For Hertz to realize its potential, it must achieve specific operational metrics, including revenue per unit of $1,500, daily per-vehicle operating expenses below $45, and depreciation per unit of roughly $300 [8] - The company also needs to improve fleet utilization to 85%, up from a historical average of 80% [8] Future Outlook - Ackman predicts that Hertz could reach $30 per share by 2029, with the stock currently trading below $9, indicating significant upside potential [7] - The company must rotate its fleet away from electric vehicles and reduce operating costs to improve unit revenue and margins over time [9]