StockStory favors Airbnb and EQT, flags concerns at STERIS
The publisher cited Airbnb’s booking growth and EQT’s margins, while pointing to STERIS’s slower growth and flat adjusted operating margin.
Key takeaways
- StockStory named Airbnb and EQT as stocks it expects to outperform.
- Airbnb’s Nights and Experiences Booked grew 9.3% annually, according to StockStory.
- STERIS revenue grew 7.4% over two years, while its adjusted operating margin did not rise over five years.
In an Oct. 12 analysis, StockStory named Airbnb and EQT as S&P 500 stocks it expects to outperform. The publisher said STERIS may struggle, citing its growth and operating performance.
StockStory pointed to Airbnb’s Nights and Experiences Booked, which it said had grown 9.3% annually. It also cited a 35.6% EBITDA margin and the company’s free cash flow profitability.
For EQT, the publisher highlighted 15.3% annual revenue growth over the last 10 years. It also cited a 20.6-percentage-point expansion in EBITDA margin over five years and a 30.8% free cash flow margin.
StockStory’s concerns about STERIS included annual revenue growth of 7.4% over the last two years, which it said fell below its standards for the healthcare sector. The publisher also said the company’s adjusted operating margin had not increased over the last five years, and described its returns on capital as low.
The analysis listed STERIS at $214.45 per share and 18.4 times forward earnings. It put Airbnb at $166.09 and 16.4 times forward EV/EBITDA, and EQT at $52.63 and 17.1 times forward earnings.
This article was produced with the help of AI technology. Source: Yahoo Finance
