Shares of building products company Quanex (NYSE:NX)
jumped 10.6% in the afternoon session after the company reported strong second-quarter 2025 (fiscal) results as sales and earnings exceeded Wall Street's forecasts. The outperformance was supported by early contributions from the recently acquired Tyman business.
Building products company Quanex (NYSE:NX) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 70% year on year to $452.5 million. The company expects the full year’s revenue to be around $1.85 billion, close to analysts’ estimates. Its non-GAAP profit of $0.60 per share was 27% above analysts’ consensus estimates.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
A number of stocks fell in the afternoon session after Federal Reserve Chair Jerome Powell signaled a cautious stance on future monetary policy decisions during a speech in Chicago, emphasizing that trade tariffs could add upward pressure to inflation in the short term and complicate the Fed's efforts to stabilize the economy. He warned that such trade measures are "likely to move us further away from our goals," referring to the Fed's dual mandate of price stability and maximum employment.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Masco (NYSE:MAS) and the rest of the home construction materials stocks fared in Q4.
Quanex’s stock price has taken a beating over the past six months, shedding 42.4% of its value and falling to a new 52-week low of $16.14 per share. This might have investors contemplating their next move.
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the home construction materials stocks, including Quanex (NYSE:NX) and its peers.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at home construction materials stocks, starting with Owens Corning (NYSE:OC).
Building products company Quanex (NYSE:NX) reported Q4 CY2024 results exceeding the market’s revenue expectations, with sales up 67.3% year on year to $400 million. The company expects the full year’s revenue to be around $1.85 billion, close to analysts’ estimates. Its non-GAAP profit of $0.19 per share was significantly above analysts’ consensus estimates.
