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The Walt Disney Company DIS reported relatively disappointing fourth-quarter fiscal 2021 results on Nov 10. Earnings and revenues missed the Zacks Consensus Estimate but compared favorably with the year-ago figures. Shares of Disney declined 7.1% (as of Nov 12), largely due to weaker-than-expected earnings results.

The earnings results might bring certain ETFs under the heat, especially those like iShares Evolved U.S. Media and Entertainment ETF, iShares U.S. Consumer Services ETF and The Communication Services Select Sector SPDR Fund that have the largest allocation to this media and entertainment conglomerate.

Earnings Details

The company’s adjusted earnings of 37 cents per share in the fiscal fourth quarter missed the Zacks Consensus Estimate by 27.4%. However, the metric compares favorably with the loss of 20 cents per share reported in the year-ago quarter. Revenues of $18.53 billion also rose 26% from the year-ago quarter but missed the consensus mark of $18.85 billion.

Accounting for about 70.6% of revenues, Media and Entertainment Distribution revenues were also up 9% year over year to $13.08 billion. Revenues from Linear Networks declined 4% from the prior year to $6.69 billion. Furthermore, Direct-to-Consumer revenues increased 38% year over year to $4.56 billion. Content Sales/Licensing and Other revenues expanded 9% year over year to $2.05 billion.

Also, Parks, Experiences and Products revenues that make up for around 29.4 of revenues climbed 99% year over year to $5.45 billion. Notably, the reopening of the company’s parks and resorts, which remained open for the entire quarter this year, supported revenue and operating income growth.

In the prior-year quarter, Shanghai Disney Resort was open for the entire quarter, whereas The Walt Disney World Resort and Disneyland Paris were open for about 12 weeks. Further, Hong Kong Disneyland Resort was open for roughly four weeks, while Disneyland Resort was closed for the entire quarter. Also, parks and resorts that were open during the period were generally operating at reduced capacities.

Revenues from Consumer Products were down 3% year over year to $1.28 billion. This was due to low royalties earned from the game titles — Marvel’s Avengers and Twisted Wonderland.

Disney’s segmental operating income rose from $606 million to $1.59 billion. As of Oct 2, 2021, cash and cash equivalents were $15.96 billion compared with $16.07 billion as of Jul 3, 2021.

Disney+ Subscription Update

Disney+, as of Oct 2, 2021, had 118.1 million paid subscribers, rising 60% from the year-ago quarter. The average monthly revenue per paid subscriber for Disney+ was $4.12, decreasing 9% year over year due to a higher mix of Disney+ Hotstar subscribers in the current quarter than the prior-year quarter.

Guidance

Disney expects Disney+ net additions to be higher in the second half of fiscal 2022 from the first half. Moreover, the company now plans to expand its local content portfolio in Asia, India, Europe and Latin America in fiscal 2022. It expects to incur elevated costs in fiscal 2022 due to expenses associated with new projects such as Star Wars: Galaxy’s Edge, Avengers Campus, and the Epcot expansion, and cruise ship expansion.

ETFs in Focus

iShares Evolved U.S. Media and Entertainment ETF IEME

This actively-managed ETF employs data science techniques to identify companies with exposure to the media and entertainment sector. Holding 88 stocks in its basket, Disney occupies the third position with a 4.8% share. The fund accumulated $18.2 million in its asset base and charges 18 basis points (bps) in annual fees. IEME has almost remained flat since Disney’s fourth-quarter fiscal 2021 earnings release.

iShares U.S. Consumer Discretionary ETF IYC

This ETF offers exposure to U.S. companies that distribute food, drugs, general retail items and media by tracking the Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index. It holds 174 stocks in its basket, with Disney taking the fourth spot at 3.9%. The fund amassed $1.49 billion in its asset base. It charges 41 bps in annual fees from investors. IYC is down 0.3% since the company’s earnings release.

The Communication Services Select Sector SPDR Fund XLC

This ETF offers exposure to the communication services sector of the S&P 500 Index and accumulated $15.09 billion in its asset base. It follows the Communication Services Select Sector Index and holds 27 stocks in its basket, with Disney occupying 4.2% weight. The product charges 12 bps in annual fees. XLC has lost about 0.2% since Disney’s earnings release (read: Can Google ETFs Keep Gaining on Q3 Earnings Optimism?).

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Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports
 
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Atmos Energy Corporation ATO posted fourth-quarter fiscal 2021 earnings of 37 cents per share, on par with the Zacks Consensus Estimate.
The reported earnings declined 30.2% from the prior-year figure. Despite a rate increase in both the segments, increased depreciation and property tax expenses, timing of system maintenance, and higher employee costs offset the positives.
Fiscal 2021 earnings per share were up 8.5% year over year to $5.12.

Revenues

Total revenues of $568 million lagged the Zacks Consensus Estimate of $623 million by 8.7%. Nonetheless, the top line increased 19.6% from the year-ago reported figure due to strong contribution from its Distribution segment.

Segment Revenues

Distribution: Revenues from the segment increased 21.8% to $523.9 million from $430.2 million in the prior-year quarter. The improvement was driven by an increase in rates and customer growth.
Pipeline and Storage: Revenues from the segment increased 2.3% to $160.5 million from $156.9 million in the year-ago quarter.

Quarterly Highlights

Purchased gas cost for the quarter was $83.8 million, up 362.9% from the year-ago period. Operation and maintenance expenses for the quarter were $199.5 million, up 10.8% from the year-ago period.
Operating income for the reported quarter was down 9.9% year over year to $90.9 million.
Atmos Energy incurred interest expenses of $14.5 million, down 6.5% from the year-ago period.

Financial Highlights

As of Sep 30, 2021, Atmos Energy had cash and cash equivalents of $116.7 million compared with $20.8 million on Sep 30, 2020.
Long-term debt was $4.93 billion as of Sep 30, 2021, up from $4.53 billion on Sep 30, 2020.
Atmos Energy’s cash flow used in/from operating activities for fiscal 2021 was ($1,084.3) million against $1,037.9 million provided in the comparable year-ago period.
ATO invested $1,969.5 million in fiscal 2021 to strengthen operations. Nearly 88% of the capital spending was associated with system safety and increased reliability of services.

Guidance

Atmos Energy initiated its fiscal 2022 earnings guidance in the range of $5.40-$5.60 per share. The Zacks Consensus Estimate for fiscal 2022 earnings of $5.43 per share is lower than the midpoint of the guided range. It expects capital expenditure in the range of $2.4-$2.5 billion for fiscal 2022.
Atmos Energy expects capital expenditure in the range of $13-$14 billion for the fiscal 2022-2026 time period. Atmos Energy expects fiscal 2026 earnings in the range of $7-$7.40 per share. The figure is likely to expand annually by 6-8% in the fiscal 2022-2026 time frame.

Zacks Rank

Atmos Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

National Fuel Gas Company NFG posted fourth-quarter fiscal 2021 adjusted operating earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 78 cents by 21.8%. Total revenues of $356 million, however, missed the Zacks Consensus Estimate of $430 million by 17.3%.
National Fuel Gas revised its fiscal 2022 earnings guidance to the range of $5.05-$5.45 from the prior expectation of $4.40-$4.80. The new guidance takes into consideration the expected increase in natural gas prices in fiscal 2022. National Fuel Gas returned 45.1% in the past 12 months compared with the industry’s rally of 18.1%.
Chesapeake Utilities Corp. CPK posted third-quarter 2021 adjusted operating earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 54 cents by 31.5%. Total revenues of $107 million, however, missed the Zacks Consensus Estimate of $114 million by 5.8%.
Chesapeake Utilities’ capital expenditure guidance for the 2021-2025 time period is projected in the range of $750 million to $1 billion. The company has boosted its earnings per guidance to $6.05-$6.25 for 2025. Chesapeake Utilities has returned 25% in the past 12 months.
ONE Gas Inc. OGS reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate. Revenues of $273.9 million for the quarter surpassed the Zacks Consensus Estimate of $261 million by 4.9%.
ONE Gas raised its 2021 net income guided range to $204-$209 million from $198-$210 million and earnings per share expectation to $3.80-$3.90 from the $3.68-$3.92 band. The Zacks Consensus Estimate for ONE Gas’ 2021 earnings has moved up 0.8% in the past 60 days to $3.84 per share.
 

Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. 

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• (1:00) – Does Berkshire Hathaway’s Stock Fit Into Your Portfolio?
• (6:30) – Should You Be Following Warren Buffett’s Trades vs. Buying The Stock?
• (10:30) – Funds That May Benefit Your Portfolio: Tracey’s Top Picks
• (21:15) – Episode Roundup: BRKB, ULTA, VOO, SLYV, AAPL, CVX, BAC, FHB, PPBI, BKU
•                 Podcast@Zacks.com

Welcome to Episode #258 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

Value investors are big fans of Warren Buffett, and by extension, Berkshire Hathaway.

Many value investors, including Tracey, have contemplated buying shares of Berkshire Hathaway, or are already owners.

These would be Berkshire Hathaway’s “B” shares (BRK.B). But if you can afford the “A” shares, good for you.

Tracey actually did own Berkshire shares around the time of the financial crisis, but she sold all her shares in 2013 and never looked back.

Should you buy Berkshire Hathaway’s stock?

Berkshire Hathaway’s 10-Year Performance

Berkshire Hathaway is a conglomerate. It owns dozens of businesses outright, shares in many others and then has cash and short-term investments.

Over the last 10 years, Berkshire Hathaway’s stock has gained 262%. Not too shabby, except that the S&P 500 was up 275% during this same time period.

A value investor could have just bought the Vanguard S&P 500 ETF VOO and outperformed.

Even Buffett himself has said he expects his wife to be invested in general index funds, like the Vanguard S&P 500 ETF, after his death.

The Vanguard S&P 500 ETF has low fees and pays a dividend, currently yielding 1.3%.

But Apple!

One of the reasons many value investors want to own Berkshire Hathaway shares is because of the equity portfolio, specifically Apple AAPL.

There’s no doubt Apple has been one of Buffett’s best investments since he bought BNSF railroad in 2010.

It’s the largest holding in the equity portfolio, and as of the end of the second quarter 2021, Apple was 41.47% of the portfolio.

That’s domination.

But value investors don’t need to buy Berkshire Hathaway to own Apple. They can buy Apple’s stock on their own.

You Can Buy Berkshire Hathaway’s Portfolio

Value investors can also buy the second largest equity position, Bank of America BAC, if they are interested in owning one of the large banks.

Bank of America is still cheap, with a forward P/E of 13.4. It’s a Zacks Rank #3 (Hold) stock.

Bank of America, like Apple, also pays a dividend, currently yielding 1.8%.

Berkshire Hathaway doesn’t even pay a dividend.

Other Ways to Buy Tech

Interested in tech and think Berkshire Hathaway gets you exposure?

You can just buy the Invesco QQQ Trust QQQ which also has Apple as its largest position, same as Berkshire Hathaway.

The Invesco QQQ Trust also has a 7.8% position in Amazon, which is also in Berkshire’s portfolio, but it also gives you Microsoft, Alphabet, Tesla and others that Berkshire doesn’t.

Year-to-date, the Invesco QQQ Trust is up 24.7% while Berkshire’s B-shares are up 23.5%.

The Invesco QQQ Trust also pays a small dividend, currently yielding about 0.5%. Remember, Berkshire’s dividend is 0%.

What else do you need to know about whether you should buy Berkshire Hathaway’s stock?

Tune into this week’s podcast to find out.
 

Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. 

See Zacks’ Hottest Tech IPOs Now >>

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
 
Bank of America Corporation (BAC): Free Stock Analysis Report
 
Apple Inc. (AAPL): Free Stock Analysis Report
 
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
 
Invesco QQQ (QQQ): ETF Research Reports
 
Vanguard S&P 500 ETF (VOO): ETF Research Reports
 
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Wednesday, November 10, 2021

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 Alibaba Group Holding Limited (BABA), Abbott Laboratories (ABT), and T-Mobile US, Inc. (TMUS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Shares of Alibaba have underperformed the S&P 500 in the past three months (-17.7% vs. +5.8%). The company is susceptible to certain risks due to the strict laws in China, which along with lower mobile monetization, increasing competition and integration risks have been weighing on its revenues.

The Zacks analyst, however, believes that its dominance in the mobile commerce market, continued efforts to develop new products, international growth opportunities and strong financial position are some of the near-term tailwinds. The company’s strengthening cloud business on the back of its expanding customer base also continues to drive its performance.

(You can read the full research report on Alibaba here >>>)

Abbott shares have gained +17.3% in the year to date period against the Zacks Medical Products industry’s gain of +2.8%. The Zacks analyst believes that the company’s branded generics and international diabetes businesses are likely to drive growth in the quarters ahead.

Abbott reported better-than-expected earnings for the third quarter of 2021. Barring Neuromodulation, the company registered organic sales growth across each of its operating segments. Diabetes Care sales, in the quarter, also benefited from the solid worldwide adoption of FreeStyle Libre. A challenging business environment and slow growth in the nutrition business in China are some of the major headwinds though.

(You can read the full research report on Abbott here >>>)

Shares of T-Mobile US have lost -4.2% over the past year against the Zacks National Wireless industry’s loss of -7.4%. The company is, however, expanding its 5G network to bring fast and affordable wireless service across the country. The Zacks analyst believes that such developments would unlock massive synergies for it.

It has expanded its Home Internet service to 51 cities across Florida, Georgia, North Carolina, and South Carolina. T-Mobile’s Extended Range 5G covers 308 million people across 1.7 million square miles. The company, however, operates in a fiercely competitive and an almost saturated U.S. telecom market which has been weighing on its revenues.

(You can read the full research report on T-Mobile US here >>>)

Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD), Boston Scientific Corporation (BSX) and EOG Resources, Inc. (EOG).

Sheraz Mian

Director of Research

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

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Abbott Laboratories (ABT): Free Stock Analysis Report
 
Boston Scientific Corporation (BSX): Free Stock Analysis Report
 
EOG Resources, Inc. (EOG): Free Stock Analysis Report
 
AnheuserBusch InBev SANV (BUD): Free Stock Analysis Report
 
TMobile US, Inc. (TMUS): Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
 
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Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market’s attention and deliver solid returns. But finding a great growth stock is not easy at all.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company’s growth story is over or nearing its end, betting on it could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company’s real growth prospects.

Gartner (IT) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this technology information and analysis company a great growth pick right now.

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Gartner is 18.6%, investors should actually focus on the projected growth. The company’s EPS is expected to grow 77.7% this year, crushing the industry average, which calls for EPS growth of 22.1%.

Cash Flow Growth

Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That’s because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Gartner is 18.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 1.4%.

While investors should actually consider the current cash flow growth, it’s worth taking a look at the historical rate too for putting the current reading into proper perspective. The company’s annualized cash flow growth rate has been 21.9% over the past 3-5 years versus the industry average of 2.8%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Gartner. The Zacks Consensus Estimate for the current year has surged 11.1% over the past month.

Bottom Line

While the overall earnings estimate revisions have made Gartner a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Gartner well for outperformance, so growth investors may want to bet on it.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

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
 
Gartner, Inc. (IT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

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Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market’s attention and produce exceptional returns. However, it isn’t easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company’s real growth prospects.

Otter Tail (OTTR) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this power company and manufacturer is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Otter Tail is 11.6%, investors should actually focus on the projected growth. The company’s EPS is expected to grow 53% this year, crushing the industry average, which calls for EPS growth of 6.8%.

Cash Flow Growth

While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That’s because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Otter Tail is 7.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of 5.6%.

While investors should actually consider the current cash flow growth, it’s worth taking a look at the historical rate too for putting the current reading into proper perspective. The company’s annualized cash flow growth rate has been 8.4% over the past 3-5 years versus the industry average of 6.1%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Otter Tail. The Zacks Consensus Estimate for the current year has surged 16.2% over the past month.

Bottom Line

Otter Tail has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Otter Tail well for outperformance, so growth investors may want to bet on it.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

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
 
Otter Tail Corporation (OTTR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

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There is no denying that the pandemic has opened up investment opportunities in the biotech sector by triggering a race to introduce vaccines and treatment options. Moreover, increasing mergers and acquisition (M&A) deals, growing AI dominance and favorable regulatory tidings continue to work in favor of the biotech market.

Going on, the full FDA approval for COVID-19 vaccines to certain developers has been increasing the confidence for imposing vaccine mandates. Also, the unvaccinated population is now more likely to opt for vaccinations. The nod for booster shots can likely enhance people’s confidence in vaccination. This  is going to accelerate demand for coronavirus vaccines and boost the COVID-19 vaccine developer’s financials.

Let’s take a look at some big biotechnological earnings releases to see if these will impact ETFs exposed to the space.

Earnings in Focus

On Nov 2, Amgen AMGN reported third-quarter 2021 earnings of $4.67 per share, surpassing the Zacks Consensus Estimate of $4.22. Earnings increased 11% year over year, largely due to lower costs. Total revenues of $6.71 billion in the quarter outpaced the Zacks Consensus Estimate of $6.70 billion. Also, total revenues rose 5% year over year largely as higher volumes offset lower net selling prices of several drugs. 

Amgen slashed the top end of its revenue guidance range for 2021 from $25.8-$26.6 billion to $25.8-$26.2 billion. However, the adjusted earnings per share guidance was raised from the range of $16.00 to $17.00 to $16.50 to $17.10.

On Oct 28, Gilead Sciences GILD reported earnings of $2.65 per share for the September-end quarter, up from $2.11 in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.72. Total revenues of $7.4 billion outpaced the Zacks Consensus Estimate of $6.2 billion and rose 13% from the year-ago quarter mainly on growing sales of Veklury.

Product sales are now projected at $26-$26.3 billion (earlier range: $24.4-$25 billion) primarily due to higher Veklury sales. Total product sales, excluding Veklury, are expected around $21.5 billion compared with $21.7 billion to $21.9 billion previously, primarily reflecting the longer-than-expected pandemic impact on the business.

Total Veklury sales are now estimated between $4.5 billion and $4.8 billion (earlier projection: $2.7-$3.1 billion), primarily reflecting the surge in COVID-19 hospitalizations in the third quarter.  Earnings per share are expected in the range of $7.90-$8.10, up from the previously expected range of $6.90-$7.25.

On Oct 20, Biogen BIIB reported third-quarter 2021 earnings per share of $4.77, which surpassed the Zacks Consensus Estimate of $4.15. Earnings slid 15.4% year over year on lower revenues. Sales of the company totaled $2.78 billion, down 18% (both actual and constant currency basis) from the year-ago quarter. Sales, however, surpassed the Zacks Consensus Estimate of $2.68 billion. The company saw softer sales of Tecfidera and Spinraza.

Biotech ETFs in Focus

In the current scenario, we believe it is prudent to discuss a few ETFs with a relatively wider exposure to the companies discussed above.

iShares Biotechnology ETF IBB

This fund seeks to track the investment results of an index composed of U.S.-listed equities in the biotechnology sector. It comprises 268 holdings, with the companies mentioned above taking about 17.9% of the fund. It has AUM of $10.53 billion and charges a fee of 45 basis points a year. IBB has returned about 2.8% since Oct 19 (as of Nov 4). The fund carries a Zacks ETF Rank #1 (Strong Buy), with a High-risk outlook.

VanEck Biotech ETF BBH

The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 25 securities in its basket, with the concerned companies having 18.6% weight in the fund. Its AUM is $592.6 million and expense ratio is 0.35%. BBH has returned around 0.1% since Oct 19 (as of Nov 4). The fund currently carries a Zacks ETF Rank #3 (Hold), with a High-risk outlook (read: Take a Look at the Top-Performing Biotech ETFs YTD).

SPDR S&P Biotech ETF XBI

The fund seeks daily investment results, before fees and expenses, which match the S&P Biotechnology Select Industry Index. It holds about 187 securities in its basket and puts some weight in-focus companies. Its AUM is $7.99 billion and expense ratio is 0.35%. XBI has gained around 7.7% since Oct 19 (as of Nov 4). The fund carries a Zacks ETF Rank #2 (Buy), with a High-risk outlook.

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In the latest trading session, JOYY (YY) closed at $48.45, marking a -0.12% move from the previous day. This change lagged the S&P 500’s 0.37% gain on the day.

Heading into today, shares of the social media company had lost 11.74% over the past month, lagging the Computer and Technology sector’s gain of 10.79% and the S&P 500’s gain of 8.94% in that time.

YY will be looking to display strength as it nears its next earnings release. In that report, analysts expect YY to post earnings of $0.03 per share. This would mark a year-over-year decline of 97.71%.

YY’s full-year Zacks Consensus Estimates are calling for earnings of -$0.43 per share and revenue of $2.57 billion. These results would represent year-over-year changes of +80.28% and -22.98%, respectively.

It is also important to note the recent changes to analyst estimates for YY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection has moved 56.17% higher. YY currently has a Zacks Rank of #3 (Hold).

The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 43% 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.

To follow YY in the coming trading sessions, be sure to utilize Zacks.com.

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JOYY Inc. Sponsored ADR (YY): Free Stock Analysis Report
 
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fuboTV Inc. (FUBO) closed at $32.82 in the latest trading session, marking a +0.4% move from the prior day. This change outpaced the S&P 500’s 0.37% gain on the day.

Heading into today, shares of the company had gained 30.6% over the past month, outpacing the Consumer Discretionary sector’s gain of 2.93% and the S&P 500’s gain of 8.94% in that time.

FUBO will be looking to display strength as it nears its next earnings release, which is expected to be November 9, 2021. The company is expected to report EPS of -$0.65, up 60.61% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $143.49 million, up 134.46% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.55 per share and revenue of $568.23 million. These totals would mark changes of +50.1% and +160.96%, respectively, from last year.

Any recent changes to analyst estimates for FUBO should also be noted by investors. Recent revisions tend to reflect the latest 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FUBO is currently sporting a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 FUBO in the coming trading sessions, be sure to utilize Zacks.com.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

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fuboTV Inc. (FUBO): Free Stock Analysis Report
 
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Smith & Wesson (SWBI) closed the most recent trading day at $21.99, moving -1.17% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.37%.

Prior to today’s trading, shares of the firearm maker had gained 4.71% over the past month. This has outpaced the Consumer Discretionary sector’s gain of 2.93% and lagged the S&P 500’s gain of 8.94% in that time.

Investors will be hoping for strength from SWBI as it approaches its next earnings release. On that day, SWBI is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 47.31%. Our most recent consensus estimate is calling for quarterly revenue of $277.9 million, up 11.73% from the year-ago period.

SWBI’s full-year Zacks Consensus Estimates are calling for earnings of $5.05 per share and revenue of $924.3 million. These results would represent year-over-year changes of +11.23% and -16.52%, respectively.

Investors should also note any recent changes to analyst estimates for SWBI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. SWBI is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, SWBI currently has a Forward P/E ratio of 4.41. Its industry sports an average Forward P/E of 11.41, so we one might conclude that SWBI is trading at a discount comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

To follow SWBI in the coming trading sessions, be sure to utilize Zacks.com.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

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Smith & Wesson Brands, Inc. (SWBI): Free Stock Analysis Report
 
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