Stock Region Watchlist
GME’s Plot Twist, AVAV’s Record Flight & CBRL’s Comeback Plan.
GME’s Plot Twist, AVAV’s Record Flight & CBRL’s Comeback Plan
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Happy Wednesday! Let’s dive right into the stocks making waves today. We’ve got a mixed bag of earnings reports that tell some pretty interesting stories.
Quick Disclaimer: Before we get into it, remember that this is for informational and entertainment purposes only. We’re just sharing our thoughts, not a financial advisor. The stock market involves risk, so always do your own research before making any investment decisions.
Today’s Watchlist:
GameStop ($GME): The comeback story no one saw coming?
AeroVironment ($AVAV): Flying high on massive growth.
Cracker Barrel ($CBRL): A rocky road with a recovery plan.
GameStop ($GME): A Surprising Turn of Events
I’ll be honest, when I saw GameStop’s revenue numbers, our heart sank a little. Revenue came in at $821 million, missing Wall Street’s target by a decent margin. A 4.6% year-over-year drop isn’t exactly what you want to see.
But here’s the plot twist: the company is actually getting really good at managing its money. Adjusted earnings per share hit $0.24, smashing expectations by 20%. What really caught our eye was the free cash flow margin, which exploded to 13% from just 2.3% last year. That’s a massive improvement. This isn’t the same GME from a few years ago. It feels like management is finally steering the ship with a clear focus on the bottom line, which is why we’re keeping a close eye on it.
Levels to watch: Keep an eye on a potential move above $21.94 for upside, or below $21.60 on the downside.
AeroVironment ($AVAV): Absolutely Soaring
Q2 revenue was a staggering $472.5 million, up 151% from last year. A huge chunk of that came from their acquisition of BlueHalo, which seems to be paying off immediately.
Their backlog—the amount of future work they have lined up—is now at $1.4 billion. That’s a huge number and signals that demand for their defense and autonomous systems is incredibly strong. While they did post a net loss because of acquisition costs, their adjusted EBITDA was a healthy $45 million. To me, this shows that the core business is powerful. They are capitalizing on a booming market, and with that kind of backlog, their future looks bright. This is the kind of growth story that gets me excited.
Levels to watch: Look for upside potential above $271.99, or a possible drop below $267.95.
Cracker Barrel ($CBRL): Navigating Choppy Waters
Now for a tougher story. Cracker Barrel is having a hard time. Q1 revenue dipped 5.7% to $797.2 million, and the company reported a net loss of $24.6 million. That’s a big swing from a profit last year. Both their restaurant and retail sales are down, which is a tough spot to be in for a beloved brand like this.
But it’s not all bad news. They managed to beat earnings expectations with an adjusted EPS of $0.74, and management isn’t just sitting back. They are actively cutting costs and making operational changes to right the ship. They’ve adjusted their future revenue outlook, which tells me they’re being realistic about the challenges ahead. I see this as a potential turnaround play. It’s risky, for sure, but sometimes the biggest rewards come from betting on a classic brand to find its footing again.
Levels to watch: A move above $26.15 could be a bullish sign, while a drop below $25.06 could signal more trouble.
That’s a wrap for today’s watchlist! A fascinating mix of profitability pivots, explosive growth, and turnaround tales.
Stay sharp and trade smart.
Final Disclaimer: All investments carry risk. The information in this newsletter is not financial advice, and you should not treat it as such. Consult with a professional before making any financial decisions. Past performance is not indicative of future results.