Caleres Inc. (CAL) closed the most recent trading day at $22.37, moving -0.49% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.52%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq added 0.11%.
– Zacks
Heading into today, shares of the footwear wholesaler and retailer had lost 2.13% over the past month, outpacing the Consumer Discretionary sector’s loss of 10.28% and the S&P 500’s loss of 6.51% in that time.
Caleres Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Caleres Inc. to post earnings of $0.67 per share. This would mark year-over-year growth of 2133.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $677.95 million, up 18.74% from the year-ago period.
Any recent changes to analyst estimates for Caleres Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.48% higher. Caleres Inc. is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Caleres Inc. has a Forward P/E ratio of 5.61 right now. For comparison, its industry has an average Forward P/E of 14.17, which means Caleres Inc. is trading at a discount to the group.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
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BridgeBio Pharma (BBIO) closed at $9.99 in the latest trading session, marking a +1.83% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.52%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 0.11%.
– Zacks
Coming into today, shares of the rare disease drug developer had lost 34.25% in the past month. In that same time, the Medical sector lost 7.8%, while the S&P 500 lost 6.51%.
Wall Street will be looking for positivity from BridgeBio Pharma as it approaches its next earnings report date. The company is expected to report EPS of -$0.83, up 17.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.19 million, up 27561.67% from the year-ago period.
It is also important to note the recent changes to analyst estimates for BridgeBio Pharma. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.69% higher within the past month. BridgeBio Pharma is currently sporting a Zacks Rank of #3 (Hold).
The Medical – Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
In the latest trading session, ContextLogic Inc. (WISH) closed at $2.35, marking a +1.73% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.52%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 0.11%.
– Zacks
Heading into today, shares of the company had lost 15.07% over the past month, lagging the Retail-Wholesale sector’s loss of 11.17% and the S&P 500’s loss of 6.51% in that time.
ContextLogic Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect ContextLogic Inc. to post earnings of -$0.10 per share. This would mark year-over-year growth of 96.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $303.63 million, down 61.76% from the year-ago period.
Investors might also notice recent changes to analyst estimates for ContextLogic Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.07% lower. ContextLogic Inc. is holding a Zacks Rank of #4 (Sell) right now.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WISH in the coming trading sessions, be sure to utilize Zacks.com.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First United Corporation (FUNC) came out with quarterly earnings of $1.10 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.
– Zacks
This quarterly report represents an earnings surprise of 37.50%. A quarter ago, it was expected that this company would post earnings of $0.65 per share when it actually produced earnings of $0.93, delivering a surprise of 43.08%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
First United Corporation, which belongs to the Zacks Banks – Northeast industry, posted revenues of $20.26 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 14.27%. This compares to year-ago revenues of $17.26 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
First United Corporation shares have added about 4.6% since the beginning of the year versus the S&P 500’s decline of -6.1%.
What’s Next for First United Corporation?
While First United Corporation has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for First United Corporation: mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.68 on $16.86 million in revenues for the coming quarter and $2.75 on $68.44 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks – Northeast is currently in the top 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Farmers & Merchants Bancorp Inc. (FMAO), is yet to report results for the quarter ended December 2021.
This company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +4.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Farmers & Merchants Bancorp Inc.’s revenues are expected to be $22.3 million, up 2.5% from the year-ago quarter.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Zacks Analyst Blog Highlights: Amazon.com, Snap, Ford and Pinterest
For Immediate Release
Chicago, IL – February 4, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Amazon.com AMZN, Snap SNAP, Ford F and Pinterest PINS.
– Zacks
Here are highlights from Thursday’s Analyst Blog:
Huge Upswings on Big Q4 Beats: AMZN, SNAP, PINS and More
Market indexes this Thursday took a tumble this afternoon, plummeting downward to session lows before ebbing very late in regular trading. Even still: ugly — the Dow dropped -1.46%, -519 points; the S&P 500 was -2.44%; and the Nasdaq posted its worst single day of trading since October 2020, 538 points or -3.74%. Remarkably, these top indexes remain in the positive for the week, with one more trading day to go. The small-cap Russell 2000 fell another -1.90% today.
We’re almost seeing a mirror image of Wednesday’s trading day, which saw a big surge during normal trading hours, but falling off a table after-hours with bad quarterly news from Meta and Spotify. Following today’s deep crater of a trading day, we see green shoots on fresh Q4 earnings after the bell, including from one of the FAANG stocks.
I speak of Amazon.com, which is up +18% on a truly gigantic earnings beat on slightly lower revenues than expected and notably lower revenue guidance for Q1 2022. But that $27.74 per share looks awfully splashy, especially seeing the e-commerce giant was only expected to fetch $3.89 per share. The late-trading performance looks to, amazingly, have brought Amazon into positive territory year to date, after a very dismal January.
Amazon Web Services (AWS) net sales outperformed estimates to $17.8 billion from $17.4 billion expected. Operating Income was also better than anticipated, $5.3 billion versus $4.8 billion. The company will be raising its Prime membership service from $119 per year to $139. This, while revenue guidance for Q1 is light, might forge a path toward increased income in future quarters.
Snap is experiencing an even huger jump in post-market trading, up an astounding +49% on giant beats for both top and bottom lines in its Q4 release after Thursday’s bell: 22 cents per share is more than 3x the 6 cents expected, and almost 2.5x the year-ago 9 cents reported. Revenues in the quarter grew 42% year over year to $1.3 billion, above the $1.2 billion expected.
It’s the first quarter of net positive income for the parent of Snapchat, and this is not insignificant. Daily Active Users (DAU) are growing to 319 million, one million higher than expected. Guidance for DAU is now 328-330 million from consensus 328 million. Citing Meta’s lower DAU reported yesterday, it may stand to reason that customers are leaving Facebook and Instagram for platforms like Snapchat. At least a +41% bump on an earnings report would suggest such a thing.
Ford put up mixed Q4 numbers Thursday afternoon, with revenues of $35.3 billion topping the $35.02 billion in the Zacks consensus, but earnings of 26 cents per share was a big miss from the 43 cents expected. Shares are down -3.5% on the news. Interestingly for an auto manufacturer not named Tesla, Ford is looking toward future growth as a justification for owning its stock: the company still expects 600K EVs delivered by 2023.
AndPinterest is also enjoying a big bounce on its better-than-expected Q4 report, with earnings of 49 cents per share on $847 million in sales outpacing the 45 cents and $831 million expected by Zacks analysts for the quarter. Forward revenue guidance is in-line with expectations. This marks the seventh-straight earnings beat for Pinterest in its relatively short history as a publicly traded entity.
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Zacks Analyst Blog Highlights: Houlihan Lokey, Crocs and Community Health Systems
For Immediate Release
Chicago, IL – February 4, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Houlihan Lokey HLI, Crocs CROX and Community Health Systems CYH.
– Zacks
Here are highlights from Thursday’s Analyst Blog:
A Window to Buy 3 Great Stocks Ahead of Earnings
We came into this earnings season with a lot of things on our minds. In fact, we were thinking of everything other than earnings. But over the past couple of weeks, America Inc. has put on a great show.
So now we know that yes, supply chains are going to take time to iron out, labor is going to remain tight (the JOLTS report shows increasing vacancies and declining quits in December) and a hawkish Fed is going to do its thing. But that isn’t going to be enough to stop the growth, albeit at a slower rate than we’ve seen of late.
And here’s the thing: the Fed may be hawkish, but it’s extremely unlikely to take any action that could throw us into a recession. Inflation is much stronger than that. So while interest rates are going to ride higher, it’s likely to be gradual and it’s likely to be upon consideration of the current situation.
So. This, then, becomes a great opportunity to buy stocks. And after the correction through January and a miss from our favorite social media company, it’s become much easier.
The thing to keep in mind is, we don’t need to find the bottom. It’s a much better idea to find obvious indicators of underlying strength — at valuations that are off their recent highs. That’s what we’re doing here.
This selection focuses on companies that have not yet reported. But they’ve seen some strong estimate revisions of late, a sign of improving factors that have been picked up by brokers.
Let’s take a look at Houlihan Lokey for example. The investment banking company, which provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide reported very strong results in the last quarter, beating EPS estimates by around 44% on revenue that also beat by 44%.
A quick look at Houlihan Lokey’s estimate revisions trend shows notable increases: by 40 cents (22%) for the December quarter that the company is set to report on Feb 8. Estimates for the year ending in March 2022 are up 56 cents (9%). And similarly for fiscal 2023.
A look at the price chart shows continued declines since the middle of January. It just doesn’t make sense. Particularly because on a P/E basis, they are trading at around 16.7X, which is close to their lows over the past year.
So this looks like a Strong Buy, captured in the Zacks #1 rank.
Another stock that seems to fit the bill is Crocs, which manufactures and sells casual footwear and accessories for men, women and children in over 80 countries.
In the last quarter, Crocs generated earnings that beat the Zacks Consensus Estimate by 30% coming on top of revenues that beat by about 2%.
The estimate revisions trend for the December quarter (to be reported on Feb 16) shows an increase of 63 cents (46%) in the last 30 days. For the full year ending December 2021, the estimate is up 59 cents (78%). The growth trajectory looks set to repeat this year with the average estimate up 70 cents (7%) during the same time period.
Now let’s see what prices are doing. I’m seeing a steady decline in Crocs shares since the beginning of November, down almost 42% in the last three months with a slight bounce-back in the last couple of days. This is reflected in the valuation, which at around 10.1X P/E, is also hugging the low point over the past year.
No wonder Crocs looks like a strong buy and it has a Zacks rank to match.
Next on the list is Community Health Systems which owns, leases and operates general acute care hospitals in the U.S.
In the last quarter, Community Health posted a 69-cent profit when analysts were only expecting 5 cents. That’s a huge surprise of 1280%, driven by a surge in COVID-related hospitalizations. Estimates are tracking closer to reality since then and have been climbing steadily over the last few months. In the last 30 days, the December quarter consensus is up 8 cents (19%) while the 2022 estimate is up 14 cents (12%).
Community Health shares dipped in the beginning of December but have trended up since then. The valuation based on P/E shows that they are still rather undervalued at a 9.57X multiple. A strong report when the company reports on Feb 16 would send the shares higher.
As with the other two, Community Health also carries a Zacks Rank #1.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chicago, IL – February 4, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, United Parcel Service, Inc. UPS, and Intuit Inc. INTU.
– Zacks
Here are highlights from Thursday’s Analyst Blog:
Top Stock Reports for NVIDIA, UPS and Intuit
The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including NVIDIA Corp. (NVDA), United Parcel Service, Inc. (UPS), and Intuit Inc. (INTU). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of NVIDIA have outperformed the Zacks General Semiconductor industry over the past year (+84.8% vs. +36.4%). The Zacks analyst believes that NVIDIA has been benefiting from the coronavirus-induced work and learn-from-home wave as well as strong growth in GeForce desktop and notebook Graphic Processing Units.
A surge in Hyperscale demand has been boosting NVDA’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive the user base. Further, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon. Pandemic-related woes, however, are likely to weigh on near-term revenues.
United Parcel Service shares have gained +22.9% over the past six months against the Zacks Transportation – Air Freight and Cargo industry’s rise of +7.4%. The Zacks analyst appreciates UPS’ efforts to reward its shareholders through dividends and buybacks. UPS paid out dividends worth $2.6 billion through the first nine months of 2021.
An impressive liquidity position and robust free cash-flow generation has been supporting its shareholder-friendly activities. In August, UPS’ board approved a new share buyback program worth $5 billion, replacing its existing $2.1-billion program. High operating expenses and rising fuel costs, however, have been hurting the bottom line.
Shares of Intuit have lost -10% in the last three months against the Zacks Computer Software industry’s loss of -10.4%. Intuit’s near-term prospect looks gloomy due to pandemic-related woes. Higher costs and expenses on the back of increased investments in marketing and engineering have also been hurting its bottom-line results.
The Zacks analyst, however, believes that Intuit has been benefiting from strong momentum in online ecosystem revenues as well as solid professional tax revenues. Intuit’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run. Strength in its lending product, QuickBooks Capital, remains a positive.
Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD) and Vertex Pharmaceuticals Inc. (VRTX).
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Zacks Analyst Blog Highlights: Hasbro Inc., Pfizer Inc., Twilio Inc., CDW Corp. and Annaly Capital Management Inc
For Immediate Release
Chicago, IL – February 4, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Hasbro Inc. HAS, Pfizer Inc. PFE, Twilio Inc. TWLO, CDW Corp. CDW and Annaly Capital Management Inc. NLY.
– Zacks
Here are highlights from Thursday’s Analyst Blog:
5 Corporate Majors to Buy Ahead of Earnings Next Week
We are in the middle of the fourth-quarter 2021 earnings season with corporate bigwigs of different sectors and industries of the economy releasing their financial numbers. So far this reporting cycle, earnings results have come in well above initial expectations. Earnings results have helped Wall Street regain its northward momentum after a tumultuous January.
Next week will be a big one for this earnings season as more than 720 companies are slated to release results. Five of them — Hasbro Inc., Pfizer Inc., Twilio Inc., CDW Corp. and Annaly Capital Management Inc. — are set to beat on fourth quarter earnings.
Robust Fourth-Quarter Earnings So Far
As of Feb 2, 214 S&P 500 companies reported fourth-quarter 2021 results. Total earnings of these companies are up 31.9% year over year on 18% higher revenues with 79.4% beating EPS estimates and 78.5% surpassing revenue estimates.
Total fourth-quarter earnings of the market’s benchmark — the S&P 500 Index — are projected to climb 25.6% from the same period last year on 14.1% higher revenues following 41.4% year-over-year earnings growth on 17.4% higher revenues in the third quarter, 95% year-over-year earnings growth on 25.3% higher revenues in the second quarter and 49.3% year-over-year earnings growth on 10.3% higher revenues in first-quarter 2021.
The first three quarters of last year were favorably impacted since the preceding quarters of the year before that were affected by pandemic-induced lockdowns and restrictions. However, the U.S. economy started reopening at a slow pace since the beginning of the fourth quarter of 2020.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hasbro is engaged in the design, manufacture and marketing of high-tech and digital games and toys under various well-known brands. HAS has been benefiting from new product launches, strategic partnerships and a strong product line-up.
Backed by a global retail network and investments in new channels, Hasbro witnessed solid growth in its e-commerce revenues. Going forward, HAS should continue to focus on retailers expanding their online offerings. Hasbro stated that it has enough liquidity to survive the pandemic scenario for some time.
The Zacks Rank #2 Hasbro has an Earnings ESP of +2.50%. It has an expected earnings growth rate of 8.6% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 7 days.
HAS recorded earnings surprises in the last four reported quarters, with an average beat of 47.7%. Hasbro is set to release earnings results on Feb 7, before the opening bell.
Pfizer expects strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales. PFE’s COVID-19 vaccine has become a key contributor to its top line. The approval of Paxlovid, Pfizer’s oral antiviral pill for COVID, will bring in additional revenues in 2022. PFE boasts a sustainable pipeline with multiple late-stage programs that can drive growth.
The Consumer Healthcare joint venture with Glaxo and the merger of the Upjohn unit with Mylan has made Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines. The smaller Pfizer should see better revenue growth.
The Zacks Rank #1 PFE has an Earnings ESP of +1.18%. It has an expected earnings growth rate of 53% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.4% over the last 7 days.
Pfizer recorded earnings surprises in three out of the last four reported quarters, with an average beat of 10.9%. PFE is set to release earnings results on Feb 8, before the opening bell.
CDW is gaining from improved operating margin, lower interest expenses and a reduction in the effective tax rate. The ongoing digital transformation and higher demand for products that enable remote working and operations continuity amid the COVID-19 pandemic crisis are also boosting CDW’s growth.
CDW is also benefiting from growth in education and healthcare end markets. The acquisitions of Scalar Decisions and Aptris have strengthened CDW’s capabilities and expanded product offerings. Progress in network management and operating system software pose a tailwind.
The Zacks Rank #2 CDW has an Earnings ESP of +2.63%. It has an expected earnings growth rate of 11.4% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.4% over the last 60 days.
CDW recorded earnings surprises in the last four reported quarters, with an average beat of 12.2%. CDW is set to release earnings results on Feb 9, before the opening bell.
Twilio is benefiting from accelerated digital transformation by companies amid the COVID-19 pandemic-led remote working and online learnings wave. TWLO’s selective acquisitions and strategic investments in businesses and technologies is enhancing its product portfolio and fortifying its global presence.
Twilio is not only gaining traction from a solid expansion of its existing clientele but is also aided by the first-time deals with the new customers, courtesy of its firm focus on introducing products and the go-to-market sales strategy.
The Zacks Rank #2 Twilio has an Earnings ESP of +90.48%. It has an expected earnings growth rate of 70.7% for the current year. The Zacks Consensus Estimate for current-year earnings improved 38.5% over the last 7 days.
TWLO recorded earnings surprises in the last four reported quarters, with an average beat of 107%. Twilio is set to release earnings results on Feb 9, after the closing bell.
Annaly Capital Management has a solid investment strategy, driven by prudent asset selection and effective capital allocation, which will support its performance in the upcoming period. Further, as part of the diversification strategy, NLY is focused on capital allocation to credit businesses and the mortgage servicing rights platform by redeploying proceeds from the Commercial Real Estate Business sale.
Also, investments in Agency mortgage-backed securities offer downside protection Annaly Capital. Strong liquidity and a diverse funding profile will support Annaly Capital’s asset generation strategy.
The Zacks Rank #2 Annaly Capital has an Earnings ESP of +2.53%. The Zacks Consensus Estimate for current-year earnings improved 1% over the last 7 days. NLY recorded earnings surprises in the last four reported quarters, with an average beat of 7.6%. Annaly Capital is set to release earnings results on Feb 9, after the closing bell.
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zacks.com featured highlights include: Atlas Air Worldwide Holdings, ArcBest Corp., Archer Daniels, Cross Country Healthcare and Asbury Automotive Group
For Immediate Release
Chicago, IL – February 4, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, ArcBest Corp. ARCB, Archer Daniels ADM, Cross Country Healthcare CCRN and Asbury Automotive Group ABG.
– Zacks
5 Stocks to Buy Following Recent Broker Upgrades
It is not rare to see someone falter in life due to lack of proper guidance. The same is true for the investing world. The world of investment is full of uncertainties and unless one is well-prepared before entering the space, more often than not the person will have to suffer huge losses.
Choice of unsuitable stocks can adversely impact his/her returns, thereby ruining the very objective of investing the hard-earned money in the highly unpredictable stock market. Moreover, with time at a premium these days, it is next to impossible for investors to keep track of the market movements to identify opportune moment(s) for buying or offloading a particular stock to maximize returns. Therefore, guidance from precise channels is a must.
Time for Some Broker Advice
The experts in the investing world are brokers. Generally, three types of brokers (sell-side, buy-side and independent) are present in the investment world, with sell-side analysts being the most common. Various brokerage firms employ them to provide an unbiased opinion to investors on the stocks under their coverage after a thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
All types of brokers indulge in in-depth research of the stocks under their coverage. They have access to much detailed information on a company. To this end, they attend company conference calls/presentations and scrutinize every detail available publicly before advising investors. Naturally, broker advice acts as an invaluable guide for investors in their bid to garner the maximum from their portfolios.
Direction of Earnings Estimates: An Invaluable Guide
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to a stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
Making the Most of Broker Guidance
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions in earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is also included. The price/sales ratio takes care of the company’s top line, making the strategy effective.
Here are five of the 10 stocks that passed the screen:
Atlas Air Worldwide Holdings is the parent company of Atlas Air and Polar Air Cargo, which together operate a fleet of freighter aircraft. AAWW is primarily involved in the airport-to-airport air transportation of heavy freight. AAWW is being supported by strong demand for air freight amid the coronavirus pandemic. The boom in e-commerce trends amid the current scenario is a catalyst.
Over the past 60 days, this presently Zacks #1 Ranked player has seen the Zacks Consensus Estimate for 2022 earnings being revised 8.1% upward. The stock has appreciated 52.2% in a year’s time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ArcBest Corp. currently carries a Zacks Rank #2 (Buy). ARCB’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 31.4%. The Zacks Consensus Estimate for ARCB’s 2022 earnings has been revised 2% upward in the past 60 days.
Shares of ArcBest have skyrocketed 88.2% in a year’s time. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting ARCB.
Archer Daniels: This Chicago, IL-based leading agricultural products company’s leadership in key global trends like flexitarian diets, nutrition and sustainable materials has been a steady contributor to its momentum for a while. ADM’s focus on making investments in assets and technological capabilities to serve customers efficiently is likely to be a key driver.
Archer Daniels’ Readiness program, positive cash flow and a solid performance at the Nutrition unit are constantly aiding results. ADM, currently sporting a Zacks Rank #1, continues to progress well on its three strategic pillars: optimize, drive and grow. The Zacks Consensus Estimate for 2022 earnings has been revised 12% upward over the past 60 days. Shares of ADM have soared 46% over the past year.
Cross Country Healthcare is currently benefiting from the pandemic-induced increase in demand for healthcare staffing, investments in headcount and technology, and higher operational effectiveness. Digital transformation and operational efficiency are enabling CCRN to cater to the continuously increasing demand in specialties, such as emergency room, operating room, labor, pediatrics, and delivery and medical-surgical services.
The Zacks Consensus Estimate for Cross Country Healthcare’s 2022 earnings has been revised 27.94% upward in the past 60 days. Shares of CCRN have skyrocketed more than 100% in a year’s time. CCRN currently sports a Zacks Rank of 1.
Asbury Automotive Group is one of the largest automotive retailers in the United States. The auto dealer is currently a #1 Ranked player. With the sustained recovery of the economy from the pandemic blues, auto sales are rebounding, underlined by strong new vehicle sales. Evidently, demand for automotive products and services is solid, aiding Asbury in turn.
Asbury Automotive has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 24.3%. Shares of ABG have increased 12.6% in a year’s time.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the “#1 site for screening stocks” by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They’re virtually unknown to the general public. Yet today’s 220 Zacks Rank #1 “Strong Buys” were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
uZacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zacks.com featured highlights include: Packaging Corp. of America, Louisiana-Pacific Corp., Houlihan Lokey, and Equinor ASA
For Immediate Release
Chicago, IL – February 4, 2022 – Stocks in this week’s article are Packaging Corp. of America PKG, Louisiana-Pacific Corp. LPX, Houlihan Lokey HLI, and Equinor ASA EQNR.
– Zacks
4 Promising Liquid Stocks to Snap Up for Higher Returns
A company with strong liquidity has the potential to provide impressive returns as liquidity supports its business growth.
Liquidity indicates a company’s ability to clear debt obligations by converting its assets into liquid cash and equivalents. However, investors should be careful about investing in a stock with high liquidity level as it may also imply that the company is failing to utilize its assets competently.
Therefore, it is advisable to consider a company’s efficiency level in addition to its liquidity for identifying potential winners. An efficient company with a favorable liquidity level may prove to be a lucrative addition to one’s portfolio.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. This ratio is used for measuring a company’s potential to meet short- and long-term debt obligations. A current ratio — also known as the working capital ratio — below 1 indicates that the company has more liabilities than assets. However, a high current ratio does not always indicate that the company is in good financial shape. It may also suggest that the company failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — also called the “acid-test ratio” or the “quick assets ratio” — indicates a company’s ability to pay short-term obligations. It considers inventory excluding the current assets relative to current liabilities. Like the current ratio, a quick ratio of more than 1 is desirable.
Cash Ratio: This is the most conservative ratio among the three, as it takes into account cash and cash equivalents as well as invested funds relative to current liabilities. It measures a company’s ability to meet current debt obligations using the most liquid assets. Though a cash ratio of more than 1 may point toward sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is desirable at all times but may not always represent a company’s financial condition.
Here are four of the seven stocks that qualified the screen:
Headquartered at Lake Forest, IL, Packaging Corp. of America is the third-largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. The company operates eight mills and 90 corrugated products manufacturing plants.
Packaging Corp. continues to benefit from robust packaging demand backed by e-commerce and rising requirements for the packaging of food, beverages and medicines. The Zacks Consensus Estimate for its 2022 earnings is pegged at $10.47 per share, up 11.9% in the past 60 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 22.8%, on average.
Based in Nashville, TN, Louisiana-Pacific Corp. is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction. Currently, the company operates 20 modern, strategically located facilities in the United States and Canada, two facilities in Chile and one facility in Brazil. It also operates facilities through a joint venture.
The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures. The company is reaping benefits from solid demand from the U.S. residential market. Also, strategic business transformation, effective cash management and inorganic moves are likely to boost performance in the future.
The Zacks Consensus Estimate for 2021 earnings is pegged at $13.54 per share, up 1% in the past 60 days. Louisiana-Pacific has a Growth Score of A and a trailing four-quarter earnings surprise of 10.5%, on average.
Headquartered in Los Angeles, CA, Houlihan Lokey is a prominent independent investment bank that offers capital markets, mergers and acquisitions, financial restructurings and financial and valuation advisory services to clients like corporations, financial sponsors and government agencies across the globe.
Houlihan Lokey recently concluded the acquisition of GCA Corporation. The acquisition will help the company to boost its M&A advisory services and expand its presence in the Asia-Pacific region.
The Zacks Consensus Estimate for fiscal 2022 earnings is pegged at $6.92 per share, up 9.5% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 39.5%, on average.
Norway-based Equinor ASA is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. In Europe, the company is the second-largest supplier of natural gas. Equinor is also a leading seller of crude oil.
Over the years, the company has developed its expertise to expand upstream operations outside of conventional offshore resources to the prolific shale oil and gas plays. To combat climate change, the integrated energy company is investing actively in renewable energy projects, comprising power generation from solar and wind energy.
The Zacks Consensus Estimate for 2021 earnings is pegged at $3.28 per share, up 5.8% in the past 60 days. The company has a Growth Score of A.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the “#1 site for screening stocks” by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They’re virtually unknown to the general public. Yet today’s 220 Zacks Rank #1 “Strong Buys” were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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