Core Insights - The article emphasizes that profitability alone does not guarantee a good investment, as some companies may struggle with growth, face threats, or fail to reinvest effectively, limiting future potential [1] Company Summaries Lowe's (LOW) - Lowe's has a trailing 12-month GAAP operating margin of 12.4% and is a home improvement retailer selling a variety of products [2] - The stock is currently trading at $232.01 per share, with a forward P/E ratio of 18.3x [4] Wabash (WNC) - Wabash has a trailing 12-month GAAP operating margin of 22.6% and specializes in semi-trailers and transportation equipment [5] - The stock is priced at $7.77 per share, trading at 4.7x forward EV-to-EBITDA [7] FTI Consulting (FCN) - FTI Consulting has a trailing 12-month GAAP operating margin of 9.4% and operates globally to address complex business challenges [8] - The company has experienced annual sales growth of only 2.6% over the last six years, lagging behind its peers [10] - A significant backlog drop of 36.2% over the past two years indicates a loss of orders amid increasing competition [11] - Earnings per share have contracted by 39.2% annually over the last five years, which could negatively impact stock prices [11] - The company has seen a decrease in efficiency, with a 2.7 percentage point drop in adjusted operating margin over the last five years [12]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is often preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies such as Macy's Inc. (M), California Water Service Group (CWT), Shoe Carnival (SCVL), Pebblebrook Hotel Trust (PEB), and FTI Consulting Inc. (FCN) have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Macy's Inc. (M)**: Undergoing a transformation with its "Bold New Chapter" program, focusing on digital initiatives and strong fundamentals, currently has a Value Score of A and Zacks Rank 1 [12][13] - **California Water Service Group (CWT)**: Aims to expand operations in the western U.S. through acquisitions, with a Value Score of B and Zacks Rank 2 [14][15] - **Shoe Carnival (SCVL)**: Transitioning to a higher-end market with a disciplined strategy, currently has a Zacks Rank 1 and Value Score of A [16][17] - **Pebblebrook Hotel Trust (PEB)**: Focused on operational efficiency and capital allocation, with a Value Score of A and Zacks Rank 1 [18][20] - **FTI Consulting Inc. (FCN)**: A global advisory firm with a diversified platform, currently has a Value Score of B and Zacks Rank 2 [21][22]

The number of UK firms in financial distress has surged over the past year, according to a report by business advisory and insolvency specialist Begbies Traynor https://t.co/L3fVFvD0UD ...

Core Viewpoint - CBIZ, Inc. will announce its financial results for the third quarter and year-to-date periods on October 29, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will cover the periods ended September 30, 2025 [1] - A conference call to discuss these results will be hosted by the President and CEO Jerry Grisko and CFO Brad Lakhia at 5 p.m. (ET) on the same day [2] - The conference call will be available via live webcast on the investor relations page of the CBIZ website, with an archived replay accessible afterward [2] Group 2: Registration and Participation - Investors can register to receive the dial-in number and a unique personal identification number for the conference call [3] - Registration is open at any time, including up to and after the call start time [3] Group 3: Company Overview - CBIZ, Inc. is a leading professional services advisor to middle-market businesses across the United States [4] - The company has expertise in various areas including accounting, tax, advisory, benefits, insurance, and technology [4] - CBIZ employs over 10,000 team members across more than 160 locations in 22 major markets nationwide [4]

Core Insights - FTI Consulting reported Q2 2025 earnings that exceeded Wall Street expectations despite a mild decline in revenue and earnings per share compared to the previous year [1][2] - The company generated GAAP revenue of $943.7 million, surpassing estimates by $21.7 million, and GAAP earnings per share of $2.13, exceeding the $2.10 estimate [1][2] - The performance varied significantly across different business segments, with some experiencing growth while others faced challenges due to macroeconomic factors [1] Financial Performance - Q2 2025 GAAP revenue was $943.7 million, a decrease of 0.6% year-over-year from $949.2 million in Q2 2024 [2] - GAAP earnings per share fell by 9.0% from $2.34 in Q2 2024 to $2.13 in Q2 2025 [2] - Adjusted EBITDA decreased by 3.7% to $111.6 million from $115.9 million in the prior year [2] - Net income dropped 14.5% to $71.7 million from $83.9 million in Q2 2024 [2] - Operating margin was 10.5%, down from 11.0% in the previous year [2] Business Segments Overview - Corporate Finance & Restructuring segment reported $379.2 million in GAAP revenue, up 9.0% year-over-year, driven by increased demand for restructuring services [5] - Forensic and Litigation Consulting generated $186.5 million in GAAP revenue, a 10.0% increase, benefiting from higher bill rates [6] - Economic Consulting saw a significant decline in GAAP revenue to $191.7 million, down 17.0% due to reduced deal volume [7] - Technology unit's revenue fell 27.9% to $83.6 million, impacted by lower demand for merger-related projects [8] - Strategic Communications achieved strong growth with revenue up 20.8% to $102.7 million, driven by increased demand for reputation management services [10] Cash Flow and Balance Sheet - Cash generated from operations decreased to $55.7 million from $135.2 million in Q2 2024, primarily due to higher forgivable loan issuances and increased compensation payments [11] - Net debt rose to $317.2 million from a net cash position of $166.4 million a year earlier [11] - Total liabilities increased to $1.59 billion, reflecting higher long-term debt and commitments to retain talent [12] Future Guidance - Management updated FY2025 revenue guidance to a range of $3.66 billion to $3.76 billion, indicating flat growth compared to FY2024 [13] - Full-year GAAP earnings per share is projected between $7.24 and $7.84, with adjusted EPS forecasted between $7.80 and $8.40 [13] - The company highlighted potential declines in adjusted EPS for the first time in a decade due to ongoing weakness in certain segments [13]