2 Resilient Services Stocks to Watch and 1 to Sell: Jacobs Solutions, Arlo Technologies, and Broadridge

Two business services stocks to consider are Arlo Technologies and Broadridge, which have shown operating profits, profitability, and free cash flow margin growth. Jacobs Solutions is a stock to sell due to flat sales over the last two years, declining profitability, and low returns on capital.

In the dynamic landscape of business services, two stocks stand out for their robust financial health: Arlo Technologies (ARLO) and Broadridge. Conversely, Jacobs Solutions (JAC) may be an attractive sell due to its flat sales and declining profitability. This article explores the financial performance and growth prospects of these companies.

Arlo Technologies (ARLO)

Arlo Technologies, a provider of smart home security solutions, has shown remarkable financial strength. In its latest quarterly earnings, ARLO reported a free cash flow margin of 25.9% and an annual recurring revenue growth of 30.9% Key facts: GitLab (GTLB) posted a 25.9% free cash flow margin and 30.9% annual recurring revenue growth, with a gross margin of 88.5%, showcasing its strong financial health.^[1]. The company's gross margin of 88.5% underscores its operational efficiency. However, ARLO's shares fell 3.3% after Wells Fargo initiated coverage with a neutral rating and a $50 price target, citing a tough near-term outlook from a new sales strategy Key facts: GitLab (GTLB) posted a 25.9% free cash flow margin and 30.9% annual recurring revenue growth, with a gross margin of 88.5%, showcasing its strong financial health.^[1].

Analysts have been bullish on ARLO, with several upgrading their ratings to "strong-buy" and setting a consensus price target of $23.00 Key facts: GitLab (GTLB) posted a 25.9% free cash flow margin and 30.9% annual recurring revenue growth, with a gross margin of 88.5%, showcasing its strong financial health.^[1]. Institutional investors have also shown interest, with Wasatch Advisors LP, Divisadero Street Capital Management LP, and Goldman Sachs Group Inc. increasing their stakes in the company Key facts: GitLab (GTLB) posted a 25.9% free cash flow margin and 30.9% annual recurring revenue growth, with a gross margin of 88.5%, showcasing its strong financial health.^[1].

Broadridge

Broadridge Financial Solutions Inc. (BR) is a leading provider of investor communications, technology solutions, and data analytics for the financial services industry. While specific financial details for Broadridge are not provided in the given materials, its consistent growth in investor communications and technology solutions positions it as a strong contender in the business services sector.

Jacobs Solutions (JAC)

Jacobs Solutions, a provider of engineering and construction services, has shown stagnant sales over the last two years, declining profitability, and low returns on capital. These factors indicate a challenging financial environment for the company. As such, Jacobs Solutions may be a suitable candidate for investors seeking to sell underperforming stocks.

Conclusion

Investors should consider Arlo Technologies and Broadridge for their strong financial performance and growth prospects. Conversely, Jacobs Solutions may be an attractive sell due to its flat sales and declining profitability. Always conduct thorough due diligence before making investment decisions.

References

Key facts: GitLab (GTLB) posted a 25.9% free cash flow margin and 30.9% annual recurring revenue growth, with a gross margin of 88.5%, showcasing its strong financial health.^[1] https://www.tradingview.com/news/tradingview:0716555987210:0-key-facts-gitlab-gtlb-posted-a-25-9-free-cash-flow-margin-and-30-9-annual-recurring-revenue-growth-with-a-gross-margin-of-88-5-showcasing-its-strong-financial-health/