StockStory Favors Western Digital and Ares, Flags News Corp Risks
The publisher cited sales growth prospects at Western Digital and Ares, while pointing to flat sales and limited cash-flow flexibility at News Corp.
Key takeaways
- StockStory cited a 48.5% sales-growth outlook for Western Digital over the next 12 months.
- Ares revenue grew 24.3% annually over the past two years, according to StockStory.
- News Corp had flat sales over five years, StockStory said.
StockStory named Western Digital and Ares Management as stocks to watch, while describing News Corp as a potential underperformer. It cited a 48.5% sales-growth outlook for Western Digital over the coming 12 months.
The publisher also pointed to Western Digital’s operating margin expansion of 21.7 percentage points over five years. It said the company’s free-cash-flow margin rose by 23.1 percentage points over that period.
For Ares, StockStory cited annual revenue growth of 24.3% over the past two years. It also said fee-related earnings rose 30.3% annually over five years, while earnings per share compounded at 19.5% annually.
StockStory’s concerns about News Corp included flat sales over five years and a free-cash-flow margin of 7.9% over the last two years. The publisher said returns on capital had not improved.
At publication, StockStory listed forward price-to-earnings ratios of 22.8 for Western Digital, 18.2 for Ares and 21.5 for News Corp.
This article was produced with the help of AI technology. Source: Yahoo Finance
