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2023-02-13 00:00:00 UTC
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5 U.S. Corporate Giants to Invest in Ahead of Earnings This Week
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https://www.nasdaq.com/articles/5-u.s.-corporate-giants-to-invest-in-ahead-of-earnings-this-week
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We are in the second-half of the fourth-quarter 2022 earnings season. So far, results are mostly in line with expectations. As of Feb 10, 346 S&P 500 companies have reported their earnings results. Total earnings of these companies are down 6.2% year over year on 5.6% higher revenues with 71.1% beating EPS estimates and 69.7% beating revenue estimates.
This week will be the last big week of this reporting cycle with as many as 854 companies reporting their quarterly financial numbers. We have selected five U.S. corporate bigwigs with a favorable Zacks Rank that are poised to beat earnings estimates. The combination of a favorable Zacks Rank and a possible earnings beat should drive their stock prices in the near-term.
These companies are: The Coca-Cola Co. KO, Deere & Co. DE, Republic Services Inc. RSG, Westinghouse Air Brake Technologies Corp. WAB and American International Group Inc. AIG.
Importance of Q4 Earnings Results
This earnings season will be important as market participants will closely monitor any sign of earnings, revenues or margin decline as well as the guidance given by companies.
Market participants will try to understand whether the U.S. economy is heading for a recession in the near future. How much U.S. corporates are being affected due to supply-chain disruption, hike in wage rate and the Fed’s rigorous monetary tightening policies is a matter of concern.
Our current projection shows that for fourth-quarter 2022, total earnings of the S&P 500 Index as a whole are expected to decline 5.6% year over year on 5.4% higher revenues.
Our Top Picks
Five U.S. corporate behemoths are set to beat earnings estimates this week. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
The chart below shows the price performance of our five picks in the last quarter.
Image Source: Zacks Investment Research
Coca-Cola has benefited from its strategic transformation and ongoing recovery around the world. Strength across the majority of markets, investments in marketplace, recovery in certain markets as well as the cycling of last year’s pandemic-led impacts aided volumes. KO retained its upbeat 2022 view. KO is poised to gain from innovations and accelerating digital investments.
Coca-Cola has an Earnings ESP of +0.75%. It has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 60 days.
KO recorded earnings surprises in the last four reported quarters, with an average beat of 8.8%. The company is set to release earnings results on Feb 14, before the opening bell.
Deere is poised well to gain on improving commodity prices, which will encourage farmers to spend more on farm equipment. Strong replacement demand will also continue to boost DE’s top line. Demand for Construction equipment will likely benefit from anticipated growth in infrastructure investments. We expect Deere’s adjusted earnings per share to grow 16% in fiscal 2023, led by strong demand and pricing.
Product launches equipped with the latest technology to make farming automated will continue to provide DE with an edge over its competitors. DE will benefit in the long run from rapid growth in the global population as well as the rising worldwide infrastructure needs.
Deere has an Earnings ESP of +5.20%. It has an expected earnings growth rate of 20.3% for the current year (ending October 2023). The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days.
DE recorded earnings surprises in three out of the last four reported quarters, with an average beat of 7.1%. The company is set to release earnings results on Feb 17, before the opening bell.
Republic Services is focused on increasing its operational efficiency by shifting to compressed natural gas collection vehicles and converting rear-loading trucks to automated-side loaders to reduce costs.
RSG continues to grow internally with the help of long-term contracts for collection, recycling and disposal of solid waste materials. Consistency in dividend payments and share buybacks boost investors’ confidence and positively impact earnings per share.
Republic Services has an Earnings ESP of +7.50%. It has an expected earnings growth rate of 5.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 30 days.
RSG recorded earnings surprises in the last four reported quarters, with an average beat of 8%. The company is set to release earnings results on Feb 15, after the closing bell.
American International Group has benefitted from cost-cutting efforts that drives its operational efficiency and aids margins. After suffering tepid revenues for the past several years, AIG’s sales are growing now on the back of well-performing Commercial and Personal lines businesses.
Divestitures streamlined American International Group’s business operations as well as enhanced capital allocation and operating leverage. From Life and Retirement IPO, now Corebridge Financial, AIG has fetched gross proceeds of $1.7 billion.
American International Group has an Earnings ESP of +0.70%. It has an expected earnings growth rate of 42.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 30 days.
AIG recorded earnings surprises in three out of the last four reported quarters, with an average beat of 13%. The company is set to release earnings results on Feb 15, after the closing bell.
Westinghouse Air Brake Technologies continues to benefit from solid growth across its Freight segment revenues. Acquisition of Collins Aerospace’s ARINC rail solutions business segment expands WAB’s digital and electronics portfolio, enhances productivity, safety, and efficiency across the global rail network. The impending buyout of Super Metal is a prudent move. The buyout should boost WAB's Railway Maintenance portfolio. Wabtec’s sound liquidity position is a positive.
Westinghouse Air Brake Technologies has an Earnings ESP of +0.29%. It has an expected earnings growth rate of 11.3% for the current year. WAB recorded earnings surprises in three out of the last four reported quarters, with an average beat of 0.6%. The company is set to release earnings results on Feb 15, before the opening bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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
CocaCola Company (The) (KO) : Free Stock Analysis Report
American International Group, Inc. (AIG) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These companies are: The Coca-Cola Co. KO, Deere & Co. DE, Republic Services Inc. RSG, Westinghouse Air Brake Technologies Corp. WAB and American International Group Inc. AIG. Republic Services is focused on increasing its operational efficiency by shifting to compressed natural gas collection vehicles and converting rear-loading trucks to automated-side loaders to reduce costs. Importance of Q4 Earnings Results This earnings season will be important as market participants will closely monitor any sign of earnings, revenues or margin decline as well as the guidance given by companies.
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These companies are: The Coca-Cola Co. KO, Deere & Co. DE, Republic Services Inc. RSG, Westinghouse Air Brake Technologies Corp. WAB and American International Group Inc. AIG. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report American International Group, Inc. (AIG) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Republic Services, Inc. (RSG) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report To read this article on Zacks.com click here. Importance of Q4 Earnings Results This earnings season will be important as market participants will closely monitor any sign of earnings, revenues or margin decline as well as the guidance given by companies.
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Importance of Q4 Earnings Results This earnings season will be important as market participants will closely monitor any sign of earnings, revenues or margin decline as well as the guidance given by companies. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report American International Group, Inc. (AIG) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Republic Services, Inc. (RSG) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report To read this article on Zacks.com click here. These companies are: The Coca-Cola Co. KO, Deere & Co. DE, Republic Services Inc. RSG, Westinghouse Air Brake Technologies Corp. WAB and American International Group Inc. AIG.
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These companies are: The Coca-Cola Co. KO, Deere & Co. DE, Republic Services Inc. RSG, Westinghouse Air Brake Technologies Corp. WAB and American International Group Inc. AIG. Importance of Q4 Earnings Results This earnings season will be important as market participants will closely monitor any sign of earnings, revenues or margin decline as well as the guidance given by companies. Market participants will try to understand whether the U.S. economy is heading for a recession in the near future.
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2023-02-10 00:00:00 UTC
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Deere (DE) Reports Next Week: Wall Street Expects Earnings Growth
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https://www.nasdaq.com/articles/deere-de-reports-next-week%3A-wall-street-expects-earnings-growth-0
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Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended January 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 17. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This agricultural equipment manufacturer is expected to post quarterly earnings of $5.51 per share in its upcoming report, which represents a year-over-year change of +88.7%.
Revenues are expected to be $11.44 billion, up 34.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.07% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Deere?
For Deere, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.20%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Deere will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Deere would post earnings of $7.08 per share when it actually produced earnings of $7.44, delivering a surprise of +5.08%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Deere appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise. Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended January 2023.
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This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended January 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
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Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Deere, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended January 2023.
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So, this combination indicates that Deere will most likely beat the consensus EPS estimate. For the last reported quarter, it was expected that Deere would post earnings of $7.08 per share when it actually produced earnings of $7.44, delivering a surprise of +5.08%. Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended January 2023.
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2023-02-10 00:00:00 UTC
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Terex (TEX) Q4 Earnings and Revenues Beat Estimates, Rise Y/Y
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https://www.nasdaq.com/articles/terex-tex-q4-earnings-and-revenues-beat-estimates-rise-y-y
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Terex Corp. TEX reported fourth-quarter 2022 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.13. The bottom line surged 63% from the prior-year quarter, courtesy of strong demand and order growth.
Operational Update
Revenues in the reported quarter increased 23% year over year to $1,218 million, surpassing the Zacks Consensus Estimate of $1,096 million. The upside was driven by increased demand and improved price realization, which was partially offset by unfavorable currency translation.
The company reported a backlog of $4.1 billion, which marked a 22% rise over last year's levels.
The cost of goods sold increased 20% year over year to $982 million. Gross profit improved 36.9% to $235 million.
Selling, general and administrative expenses (SG&A) were $115 million in the quarter under review, up 12.2% from the prior-year quarter. Terex reported an operating profit of $121 million, which marked a 73% increase from the last-year quarter.
Terex Corporation Price, Consensus and EPS Surprise
Terex Corporation price-consensus-eps-surprise-chart | Terex Corporation Quote
Segmental Performances
The Aerial Work Platforms segment generated revenues of $672 million in the reported quarter, up 25.7% from the year-ago quarter. The segment reported an operating profit of $54 million compared with the prior-year quarter’s $25 million.
The Material Processing segment’s revenues totaled $550 million, reflecting year-over-year growth of 21.2%. The segment reported an operating income of $87 million, up 39%.
Financial Position
Terex had cash and cash equivalents of $304 million as of Dec 31, 2022, compared with $267 million as of Dec 31, 2021. The company generated $261 million of cash from operating activities in 2022 compared with $293 million in the prior year.
2022 Performance
The company reported adjusted earnings per share of $4.32 in 2022, which beat the Zacks Consensus Estimate of $4.12. The bottom line improved 41% from 2021’s level.
Revenues in 2022 increased 14% year over year to $4.4 billion, surpassing the Zacks Consensus Estimate of $4.3 billion.
2023 Outlook
For 2023, Terex expects earnings per share to range between $4.60 and $5.00. The company expects sales to be between $4.6 billion and $4.8 billion.
Price Performance
Terex's shares have gained 17.3% over the past year compared with the industry’s growth of 21.4%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Terex currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 60.9% in the past year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 26.6% in the past year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 3.7% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Terex Corporation (TEX) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. The bottom line surged 63% from the prior-year quarter, courtesy of strong demand and order growth. The upside was driven by increased demand and improved price realization, which was partially offset by unfavorable currency translation.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. The bottom line surged 63% from the prior-year quarter, courtesy of strong demand and order growth.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The bottom line surged 63% from the prior-year quarter, courtesy of strong demand and order growth. The upside was driven by increased demand and improved price realization, which was partially offset by unfavorable currency translation.
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2023-02-10 00:00:00 UTC
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2 Machinery Stocks That Are Likely to Beat This Earnings Season
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https://www.nasdaq.com/articles/2-machinery-stocks-that-are-likely-to-beat-this-earnings-season
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With the fourth-quarter 2022 earnings season well underway, several machinery companies have already reported their financial numbers. Despite a soft demand environment, most companies held up well on the top-line front, owing to pricing actions and strength across key end-markets. The bottom line suffered the impacts of cost inflation and supply chain issues.
Caterpillar Inc. CAT, one of the world’s largest machinery companies, reported fourth-quarter 2022 adjusted earnings per share of $3.86, which missed the Zacks Consensus Estimate of $3.95. The bottom line soared 43.5% year over year, driven by strong demand across most end markets and favorable price realization.
Caterpillar’s revenues of $16.6 billion surpassed the Zacks Consensus Estimate of $15.9 billion. The top line improved 20% from the year-ago quarter on favorable price realization and increased sales volumes. CAT currently carries a Zacks Rank #2 (Buy).
Some manufacturing companies like Deere & Company DE and Lincoln Electric LECO are scheduled to release earnings soon.
Machinery stocks are housed under the broader Zacks Industrial Products sector. Per the latest Earnings Trends report, 76% of the total industrial companies have already reported fourth-quarter earnings numbers, out of which 73.7% beat on earnings and 78.9% beat on revenues. 63.2% of the companies beat on both earnings and revenues.
On the whole, the Industrial Products sector’s fourth-quarter 2022 earnings are expected to climb 11.5% year over year, less than 20.5% increase recorded in the third quarter. The sector’s revenues are projected to increase 11.2% year over year, compared with 13.9% rise recorded in the third quarter.
What’s in Store for the Yet-to-Report Companies?
A soft demand environment, thanks to the slowdown in manufacturing activities, is likely to have weighed on the performance of manufacturing companies. Per the latest Institute for Supply Management (ISM) report, manufacturing activities contracted for the third consecutive month in January, with a decline in New Orders and Production indexes. In January, Manufacturing Purchasing Manager's Index touched 47.4%, 1 percentage point lower than the seasonally adjusted index of 48.4% recorded in December. The adversity can be linked to the Federal Reserve’s continued monetary policy tightening to curtail inflation.
Despite improving, supply chain disruptions continue to be a major headwind for machinery companies. Higher lead times and labor shortages from the supply chain crisis are likely to have hampered earnings performance.
High raw material and logistics costs are likely to have dented the bottom-line performances of machinery companies. Given substantial exposure to international markets, foreign currency headwinds are expected to have affected the top line.
However, pricing actions, cost-control measures and solid backlog levels are expected to have aided performance. Strength across end-markets such as oil & gas, chemical, power, general Industries, mining & construction, energy, transportation, medical and laboratory sciences are expected to have driven top-line performance.
How to Pick Winners?
Given the large number of players operating in the transportation space, picking the right stocks is not an easy task. But our proven model makes it fairly simple. One can shortlist with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they report earnings with our Earnings ESP Filter.
Earnings ESP — the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate — is our proprietary methodology for determining the stocks with maximum chances of delivering positive earnings surprises in their next announcements. Our research shows that for stocks with this perfect combination, the chances of a beat are as high as 70%.
Our Choices
Below we list two machinery stocks that have the right mix of elements to pull off an earnings surprise this time around.
Deere & Company has an Earnings ESP of +5.20% and a Zacks Rank #2. The company is scheduled to release first-quarter fiscal 2023 earnings numbers on Feb 17.
Deere & Company’s fiscal first-quarter performance is likely to have been aided by demand for its agricultural equipment, thanks to the need for replacing aging equipment. Increased infrastructure spending is likely to have supported demand for construction equipment, thus aiding performance in the to-be-reported quarter. Cost management actions are expected to have supported DE’s margin performance.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
Lincoln Electric has an Earnings ESP of +2.71% and a Zacks Rank #3. The company is slated to release fourth-quarter 2022 results on Feb 21.
Lincoln Electric’s fourth-quarter performance is expected to have benefited from improving order rates across end-markets, strong quoting activity and record backlogs for equipment systems and automation solutions. The acquisition of Fori Automation, which has boosted LECO’s automation portfolio, is expected to have driven the top line in the to-be-reported quarter. The company’s efforts to improve its business mix and advance operational excellence are also likely to have buoyed its fourth-quarter performance.
Lincoln Electric Holdings, Inc. Price and EPS Surprise
Lincoln Electric Holdings, Inc. price-eps-surprise | Lincoln Electric Holdings, Inc. Quote
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Per the latest Institute for Supply Management (ISM) report, manufacturing activities contracted for the third consecutive month in January, with a decline in New Orders and Production indexes. Lincoln Electric’s fourth-quarter performance is expected to have benefited from improving order rates across end-markets, strong quoting activity and record backlogs for equipment systems and automation solutions. With the fourth-quarter 2022 earnings season well underway, several machinery companies have already reported their financial numbers.
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Deere & Company Price and EPS Surprise Deere & Company price-eps-surprise | Deere & Company Quote Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report To read this article on Zacks.com click here. With the fourth-quarter 2022 earnings season well underway, several machinery companies have already reported their financial numbers.
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Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report To read this article on Zacks.com click here. With the fourth-quarter 2022 earnings season well underway, several machinery companies have already reported their financial numbers. Despite a soft demand environment, most companies held up well on the top-line front, owing to pricing actions and strength across key end-markets.
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Some manufacturing companies like Deere & Company DE and Lincoln Electric LECO are scheduled to release earnings soon. On the whole, the Industrial Products sector’s fourth-quarter 2022 earnings are expected to climb 11.5% year over year, less than 20.5% increase recorded in the third quarter. Lincoln Electric’s fourth-quarter performance is expected to have benefited from improving order rates across end-markets, strong quoting activity and record backlogs for equipment systems and automation solutions.
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0f39ad21-b8e1-4261-aa12-6b6f6aa913d8
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720804.0
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2023-02-10 00:00:00 UTC
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Will Deere Stock Trend Higher Post Q1?
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DE
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https://www.nasdaq.com/articles/will-deere-stock-trend-higher-post-q1
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Deere & Company (NYSE: DE) is scheduled to report its fiscal first-quarter results on Friday, February 17. We expect Deere stock to trade sideways, with its Q1 revenues likely falling marginally above but earnings slightly below the street estimates. The company should benefit from higher demand for agriculture equipment and a robust pricing environment. Although we expect Deere to report a mixed Q1, we find that DE stock is fully valued, as discussed below. Our interactive dashboard analysis of Deere’s Earnings Preview has additional details.
(1) Revenues are expected to be marginally higher than the consensus estimate
Trefis estimates Deere’s Q1 fiscal 2023 total revenues to be around $11.4 billion, slightly higher than the $11.3 billion consensus estimate, and this compares with $9.6 billion in the prior-year quarter.
The company saw a strong rebound in demand for agriculture equipment over the last few quarters, a trend that likely continued over the latest quarter.
Furthermore, higher-than-average agricultural equipment age and a strong demand outlook likely contributed to the company’s top-line growth.
Looking at the last quarter, Deere’s revenue (equipment) rose 40% y-o-y to $14.4 billion, driven by a solid 59% for Production & Precision Agriculture, 26% for Small Agriculture & Turf, and 20% for Construction & Forestry.
Our dashboard on Deere Revenues provides more details on the company’s segments.
(2) EPS likely to be marginally below the consensus estimates
Deere’s Q1 fiscal 2023 earnings per share (EPS) is expected to be $5.48 per Trefis analysis, marginally lower than the consensus estimate of $5.53.
Deere’s net income of $2.2 billion in Q4 reflected a 75% rise from its $1.3 billion profit in the prior-year quarter. The company’s operating margins rose over 400 bps to around 19% for the quarter.
Looking at the full fiscal 2023, we expect EPS to be $27.27, compared to the $23.33 seen in fiscal 2022.
(3) DE stock is fully valued
We estimate Deere’s Valuation to be $413 per share, which aligns with the current market price of $407.
At its current levels, DE stock is trading around 15x its expected forward earnings, compared to the last three-year average of 16x, implying that DE stock has little room for growth.
That said, if the company reports upbeat Q1 results and provides fiscal 2023 guidance better than the street estimates, the P/E multiple will likely be revised upward, resulting in higher levels for DE stock.
While DE stock is fully valued, it is helpful to see how Deere’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Corning vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Feb 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
DE Return -3% -4% 297%
S&P 500 Return 2% 8% 86%
Trefis Multi-Strategy Portfolio 3% 14% 260%
[1] Month-to-date and year-to-date as of 2/8/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company (NYSE: DE) is scheduled to report its fiscal first-quarter results on Friday, February 17. We expect Deere stock to trade sideways, with its Q1 revenues likely falling marginally above but earnings slightly below the street estimates. (3) DE stock is fully valued We estimate Deere’s Valuation to be $413 per share, which aligns with the current market price of $407.
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(1) Revenues are expected to be marginally higher than the consensus estimate Trefis estimates Deere’s Q1 fiscal 2023 total revenues to be around $11.4 billion, slightly higher than the $11.3 billion consensus estimate, and this compares with $9.6 billion in the prior-year quarter. (2) EPS likely to be marginally below the consensus estimates Deere’s Q1 fiscal 2023 earnings per share (EPS) is expected to be $5.48 per Trefis analysis, marginally lower than the consensus estimate of $5.53. Total [2] DE Return -3% -4% 297% S&P 500 Return 2% 8% 86% Trefis Multi-Strategy Portfolio 3% 14% 260% [1] Month-to-date and year-to-date as of 2/8/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(1) Revenues are expected to be marginally higher than the consensus estimate Trefis estimates Deere’s Q1 fiscal 2023 total revenues to be around $11.4 billion, slightly higher than the $11.3 billion consensus estimate, and this compares with $9.6 billion in the prior-year quarter. (2) EPS likely to be marginally below the consensus estimates Deere’s Q1 fiscal 2023 earnings per share (EPS) is expected to be $5.48 per Trefis analysis, marginally lower than the consensus estimate of $5.53. Total [2] DE Return -3% -4% 297% S&P 500 Return 2% 8% 86% Trefis Multi-Strategy Portfolio 3% 14% 260% [1] Month-to-date and year-to-date as of 2/8/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(1) Revenues are expected to be marginally higher than the consensus estimate Trefis estimates Deere’s Q1 fiscal 2023 total revenues to be around $11.4 billion, slightly higher than the $11.3 billion consensus estimate, and this compares with $9.6 billion in the prior-year quarter. Looking at the last quarter, Deere’s revenue (equipment) rose 40% y-o-y to $14.4 billion, driven by a solid 59% for Production & Precision Agriculture, 26% for Small Agriculture & Turf, and 20% for Construction & Forestry. (3) DE stock is fully valued We estimate Deere’s Valuation to be $413 per share, which aligns with the current market price of $407.
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ae6cfbbb-3b08-4e69-9c81-2ba60e6fc486
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720805.0
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2023-02-10 00:00:00 UTC
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Notable Friday Option Activity: DE, SAM, TTI
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DE
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-de-sam-tti
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 8,553 contracts has been traded thus far today, a contract volume which is representative of approximately 855,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56.6% of DE's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $410 strike put option expiring September 15, 2023, with 461 contracts trading so far today, representing approximately 46,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $410 strike highlighted in orange:
Boston Beer Co Inc (Symbol: SAM) options are showing a volume of 797 contracts thus far today. That number of contracts represents approximately 79,700 underlying shares, working out to a sizeable 56.4% of SAM's average daily trading volume over the past month, of 141,365 shares. Especially high volume was seen for the $340 strike put option expiring March 17, 2023, with 85 contracts trading so far today, representing approximately 8,500 underlying shares of SAM. Below is a chart showing SAM's trailing twelve month trading history, with the $340 strike highlighted in orange:
And TETRA Technologies, Inc. (Symbol: TTI) options are showing a volume of 4,599 contracts thus far today. That number of contracts represents approximately 459,900 underlying shares, working out to a sizeable 55.9% of TTI's average daily trading volume over the past month, of 823,115 shares. Particularly high volume was seen for the $4 strike call option expiring March 17, 2023, with 4,316 contracts trading so far today, representing approximately 431,600 underlying shares of TTI. Below is a chart showing TTI's trailing twelve month trading history, with the $4 strike highlighted in orange:
For the various different available expirations for DE options, SAM options, or TTI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Insider Buying
DWX Historical Stock Prices
Funds Holding XINC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $410 strike put option expiring September 15, 2023, with 461 contracts trading so far today, representing approximately 46,100 underlying shares of DE. Especially high volume was seen for the $340 strike put option expiring March 17, 2023, with 85 contracts trading so far today, representing approximately 8,500 underlying shares of SAM. Particularly high volume was seen for the $4 strike call option expiring March 17, 2023, with 4,316 contracts trading so far today, representing approximately 431,600 underlying shares of TTI.
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That number of contracts represents approximately 79,700 underlying shares, working out to a sizeable 56.4% of SAM's average daily trading volume over the past month, of 141,365 shares. That number of contracts represents approximately 459,900 underlying shares, working out to a sizeable 55.9% of TTI's average daily trading volume over the past month, of 823,115 shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 8,553 contracts has been traded thus far today, a contract volume which is representative of approximately 855,300 underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 8,553 contracts has been traded thus far today, a contract volume which is representative of approximately 855,300 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $410 strike put option expiring September 15, 2023, with 461 contracts trading so far today, representing approximately 46,100 underlying shares of DE. Especially high volume was seen for the $340 strike put option expiring March 17, 2023, with 85 contracts trading so far today, representing approximately 8,500 underlying shares of SAM.
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That number of contracts represents approximately 79,700 underlying shares, working out to a sizeable 56.4% of SAM's average daily trading volume over the past month, of 141,365 shares. That number of contracts represents approximately 459,900 underlying shares, working out to a sizeable 55.9% of TTI's average daily trading volume over the past month, of 823,115 shares. Below is a chart showing TTI's trailing twelve month trading history, with the $4 strike highlighted in orange: For the various different available expirations for DE options, SAM options, or TTI options, visit StockOptionsChannel.com.
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5731e32f-ab41-458a-8c07-9b0a60e02afe
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720806.0
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2023-02-10 00:00:00 UTC
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ScanSource (SCSC) Q2 Earnings and Sales Beat Estimates
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DE
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https://www.nasdaq.com/articles/scansource-scsc-q2-earnings-and-sales-beat-estimates
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nan
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ScanSource, Inc. SCSC reported adjusted earnings of $1.06 per share for second-quarter fiscal 2023 (ended Dec 31, 2022), beating the Zacks Consensus Estimate of $1.04. The bottom line rose 4% from the prior-year quarter’s earnings of $1.02 per share driven by strong demand and operating leverage in the hardware and Intelisys businesses.
On a reported basis, the company delivered earnings of $1.01 per share compared with the prior-year quarter’s 89 cents per share.
The company reported net sales of $1,011 million in the reported quarter, up 17% from the year-ago quarter. The upside was driven by solid growth in its segments as well as across all regions. The top line surpassed the Zacks Consensus Estimate of $929 million.
ScanSource, Inc. Price, Consensus and EPS Surprise
ScanSource, Inc. price-consensus-eps-surprise-chart | ScanSource, Inc. Quote
Net sales in the United States and Canada were up 17.5% to $909 million. International sales rose 12.8% to $102 million.
Specialty Technology Solutions’ revenues increased 26% to $626 million in second-quarter fiscal 2023, courtesy of broad-based demand across technologies.
Sales at Modern Communications & Cloud were $379 million in the reported quarter, up 3% year over year.
Operational Update
The cost of sales amounted to $896 million in the fiscal second quarter, up 18% from the year-ago quarter. The gross profit totaled $115 million, up 7% from the year-ago quarter’s $108 million due to higher sales volume. The gross margin came in at 11.4% during the reported quarter compared with the prior-year quarter’s 12.5%.
Selling, general and administrative expenses remained flat at $69 million compared with last-year quarter. The adjusted operating profit was $40.7 million compared with the prior-year quarter’s $35.9 million. The adjusted operating margin was 4.0%, down from 4.2% in the prior-year quarter. Adjusted EBITDA was up 14.7% year over year to $49 million.
Financial Condition
The company reported cash and cash equivalents of $66 million as of Dec 31, 2022 compared with $38 million as of Jun 30, 2022. The company utilized $75 million of cash in operating activities in the first half of fiscal 2023, flat compared with the prior-year comparable period. The company’s long-term debt was $148 million at the end of the second quarter of fiscal 2023, up from $124 million at the end of fiscal 2022.
Outlook
Backed by the upbeat second-quarter fiscal 2023 results, ScanSource expects net sales growth of at least 6.5% in fiscal 2023, higher than 5.5% growth projected earlier. Adjusted EBITDA is projected to be at least $176 million. SCSC had earlier projected adjusted EBITDA of at least $174 million.
Share Price Performance
Image Source: Zacks Investment Research
ScanSource's shares have declined 3.1% in the past year compared with the industry’s 2.1% rise.
Zacks Rank and Stocks to Consider
ScanSource currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc. OI, Tenaris TS and Deere & Company DE. OI and TS sport a Zacks Rank #1 (Strong Buy) at present and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 66.9% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
ScanSource, Inc. (SCSC) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ScanSource, Inc. SCSC reported adjusted earnings of $1.06 per share for second-quarter fiscal 2023 (ended Dec 31, 2022), beating the Zacks Consensus Estimate of $1.04. The bottom line rose 4% from the prior-year quarter’s earnings of $1.02 per share driven by strong demand and operating leverage in the hardware and Intelisys businesses. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year.
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ScanSource, Inc. SCSC reported adjusted earnings of $1.06 per share for second-quarter fiscal 2023 (ended Dec 31, 2022), beating the Zacks Consensus Estimate of $1.04. Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc. OI, Tenaris TS and Deere & Company DE. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report ScanSource, Inc. (SCSC) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ScanSource, Inc. SCSC reported adjusted earnings of $1.06 per share for second-quarter fiscal 2023 (ended Dec 31, 2022), beating the Zacks Consensus Estimate of $1.04. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report ScanSource, Inc. (SCSC) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ScanSource, Inc. SCSC reported adjusted earnings of $1.06 per share for second-quarter fiscal 2023 (ended Dec 31, 2022), beating the Zacks Consensus Estimate of $1.04. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The bottom line rose 4% from the prior-year quarter’s earnings of $1.02 per share driven by strong demand and operating leverage in the hardware and Intelisys businesses.
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3cb9bc3f-6c39-4a3f-a00c-a877342a5d41
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720807.0
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2023-02-09 00:00:00 UTC
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Sealed Air (SEE) Q4 Earnings Surpass Estimates, Down Y/Y
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DE
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https://www.nasdaq.com/articles/sealed-air-see-q4-earnings-surpass-estimates-down-y-y
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Sealed Air Corporation SEE reported fourth-quarter 2022 adjusted earnings per share of 99 cents, which surpassed the Zacks Consensus Estimate of 98 cents. The bottom line figure declined 12% year over year due to lower volumes.
And unfavorable foreign currency impact offset the gains from favorable price realization and productivity improvements.
Including special items, the company delivered net earnings per share of 99 cents compared with the prior-year quarter’s $1.12.
Total revenues were $1.41 billion in the reported quarter, down 8% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $1.46 billion. Price had a favorable impact of 7% while volumes were down 10%.
Sales in America and APAC declined 7% and 3% year on year respectively, while EMEA witnessed growth of 5%.
Sealed Air Corporation Price, Consensus and EPS Surprise
Sealed Air Corporation price-consensus-eps-surprise-chart | Sealed Air Corporation Quote
Cost and Margins
The cost of sales declined 7% year over year to $982 million. The gross profit was $424 million, which marked a 7% decline from the year-ago quarter’s $1,056 million. The gross margin expanded to 30.2% from the prior-year quarter’s 31%. Selling, general and administrative expenses fell 12% from the last-year quarter to $181 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was around $297 million in the quarter, which declined 10% from the prior-year period. Adjusted EBITDA margin was 21.1% compared with the prior-year quarter’s 21.5% as favorable net price realization offset lower volume.
Segment Performance
Food: Net sales dipped 0.3% year over year to $874 million. Volumes were down 3%, owing to food retail market declines across the Americas and EMEA regions and the adverse impact from prior supply disruptions. Pricing actions had a favorable impact of 7%. Currency fluctuations had an unfavorable impact of 5%.
Adjusted EBITDA was $202 million, down 1% from the last year’s quarter, as favorable price realization and productivity improvements helped offset the impact of lower volumes and unfavorable currency impact.
Protective: The segment reported net sales of $532 million during the quarter under review, down 19% from the prior-year quarter. The divestiture of Reflectix had an unfavorable impact of 1%, while currency impacted sales by 4%.
Pricing had a positive impact of 6%, while volumes slumped 20% owing to recessionary pressures in the industrial and fulfillment markets and destocking through the value chain. The segment’s adjusted EBITDA plunged 19% year over year to $102 million as favorable net price realization helped offset lower volumes.
Financial Updates
The cash flow from operating activities was around $613 million in 2022 compared with $710 million in 2021. The company paid cash dividends of $118 million in 2022 and repurchased 4.5 million shares for $280 million.
As of Dec 31, 2022, Sealed Air’s net debt was $3.2 billion, up from $3.1 billion as of Dec 31, 2021. As of the end of 2022, the company had $1.6 billion of liquidity available, which comprised $456 million in cash and $1.12 billion of undrawn, committed credit facilities.
2022 Performance
Sealed Air reported adjusted earnings per share of $4.10, which beat the Zacks Consensus Estimate of $4.09. The bottom line figure increased 15% year over year. Including special items, earnings per share were $3.33 in 2022 compared with $3.22 in 2021. Total revenues increased 2% year over year to $5.6 billion in 2022. The top line missed the Zacks Consensus Estimate of $5.7 billion.
2023 Guidance
For 2023, Sealed Air expects net sales between $5.85 billion and $6.10 billion. The guidance range indicates an increase of 4% to 8%, which includes a favorable impact of the Liquibox acquisition of approximately 6% and an unfavorable currency impact of approximately 1%. SEE anticipates adjusted EBITDA in the range of $1.25 to $1.30 billion. Adjusted earnings per share are forecasted in the band of $3.50 to $3.80. The company had earlier provided a range of $4.05 to $4.20.
Share Price Performance
Image Source: Zacks Investment Research
In a year's time, Sealed Air’s shares have declined 16.8% compared with the industry’s 0.9% growth.
Zacks Rank and Stocks to Consider
Sealed Air currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. OI and TS sport a Zacks Rank #1 (Strong Buy) at present and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 66.9% in the past year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the past year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the past 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the past year.
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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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Sealed Air Corporation (SEE) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Volumes were down 3%, owing to food retail market declines across the Americas and EMEA regions and the adverse impact from prior supply disruptions. Image Source: Zacks Investment Research In a year's time, Sealed Air’s shares have declined 16.8% compared with the industry’s 0.9% growth. Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE.
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Sealed Air Corporation Price, Consensus and EPS Surprise Sealed Air Corporation price-consensus-eps-surprise-chart | Sealed Air Corporation Quote Cost and Margins The cost of sales declined 7% year over year to $982 million. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Sealed Air Corporation (SEE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. The bottom line figure declined 12% year over year due to lower volumes.
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Sealed Air Corporation Price, Consensus and EPS Surprise Sealed Air Corporation price-consensus-eps-surprise-chart | Sealed Air Corporation Quote Cost and Margins The cost of sales declined 7% year over year to $982 million. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Sealed Air Corporation (SEE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. The bottom line figure declined 12% year over year due to lower volumes.
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The gross profit was $424 million, which marked a 7% decline from the year-ago quarter’s $1,056 million. The bottom line figure declined 12% year over year due to lower volumes. Including special items, the company delivered net earnings per share of 99 cents compared with the prior-year quarter’s $1.12.
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720808.0
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2023-02-08 00:00:00 UTC
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AGCO Corp (AGCO) Earnings and Revenues Beat Estimates in Q4
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https://www.nasdaq.com/articles/agco-corp-agco-earnings-and-revenues-beat-estimates-in-q4
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AGCO Corp. AGCO delivered an adjusted EPS of $4.47 in fourth-quarter 2022 compared with the prior-year quarter’s $3.08 per share. The reported figure beat the Zacks Consensus Estimate of $3.88.
Including one-time items, AGCO posted an EPS of $4.29 compared with the year-ago quarter’s $3.75.
Revenues increased 23.6% year over year to a record $3,899 million in the December-end quarter. The top line surpassed the Zacks Consensus Estimate of $3,759 million. Excluding the unfavorable currency-translation impacts of 9.2%, net sales rose 32.7% year over year.
Operational Update
Cost of sales increased 19.6% year over year to $2,958 million in the fourth quarter. Gross profit increased 37.8% year over year to $941 million in the reported quarter. The gross margin was 24.1% compared with the prior-year quarter’s 21.6%.
Selling, general and administrative expenses were $325 million compared with the year-ago quarter’s $285 million. Adjusted income from operations rose 71.9% year over year to $468 million. The operating margin was 12% compared with the year-earlier quarter’s 8.6%.
AGCO Corporation Price, Consensus and EPS Surprise
AGCO Corporation price-consensus-eps-surprise-chart | AGCO Corporation Quote
Segmental Performance
Sales in the North America segment moved up 22.1% year over year to $824 million in the fourth quarter. The segment reported an operating income of $61 million compared with the prior-year quarter’s $24 million.
Sales in the South America segment increased 66.4% year over year to $675 million. The segment reported an operating profit of $135 million compared with the prior-year quarter’s $49 million.
The EME (Europe/Middle East) segment’s sales were $2,187 million compared with the $1,797 million reported in the year-ago period. The EME’s operating income was $319 million compared with the year-ago quarter’s $217 million.
Sales in the Asia/Pacific segment were down 23.1% year over year to $214 million. The segment registered an operating profit of $19 million compared with the year-ago quarter’s $38 million.
Financial Update
AGCO Corp reported cash and cash equivalents of $790 million at the end of 2022, down from $889 million at 2021-end. Net cash provided by operating activities totaled $838 in 2022 compared with $660 million in the prior-year period.
2022 Performance
The company delivered an adjusted EPS of $12.42 in 2022 compared with 2021’s $10.38 per share. The reported figure beat the Zacks Consensus Estimate of $11.84.
Including one-time items, AGCO posted an EPS of $11.87 compared with the year-ago quarter’s $11.85.
Revenues increased 13.6% year over year to a record $12.7 billion in 2022. The top line surpassed the Zacks Consensus Estimate of $12.5 billion. Excluding the unfavorable currency-translation impacts of 8.5%, net sales rose 22.1% year over year.
Guidance
AGCO Corp expects 2023 net sales of $14 billion. The company expects improved sales volumes and positive pricing to impact 2023’s results. These tailwinds will be partially offset by negative foreign currency translation.
Gross and operating margins are expected to be higher than the 2022 reported levels, owing to higher sales and production volumes, as well as the company’s pricing actions to mitigate material and labor cost inflation. The improved profitability is likely to support incremental investments in engineering and other technology to advance AGCO’s precision agriculture and digital initiatives. Considering these, management projects EPS of $13.50 for 2023.
Price Performance
AGCO Corp’s shares have gained 2.8% in the past year compared with the industry’s growth of 2.9%.
Image Source: Zacks Investment Research
Zacks Rank and Other Stocks to Consider
AGCO Corp currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 66.9% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them 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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
AGCO Corporation (AGCO) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some other top-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. AGCO Corp. AGCO delivered an adjusted EPS of $4.47 in fourth-quarter 2022 compared with the prior-year quarter’s $3.08 per share.
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Some other top-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. AGCO Corp. AGCO delivered an adjusted EPS of $4.47 in fourth-quarter 2022 compared with the prior-year quarter’s $3.08 per share.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. AGCO Corp. AGCO delivered an adjusted EPS of $4.47 in fourth-quarter 2022 compared with the prior-year quarter’s $3.08 per share.
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Image Source: Zacks Investment Research Zacks Rank and Other Stocks to Consider AGCO Corp currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. AGCO Corp. AGCO delivered an adjusted EPS of $4.47 in fourth-quarter 2022 compared with the prior-year quarter’s $3.08 per share.
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2023-02-08 00:00:00 UTC
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Eaton (ETN) Surpasses Q4 Earnings and Revenue Estimates
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DE
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https://www.nasdaq.com/articles/eaton-etn-surpasses-q4-earnings-and-revenue-estimates
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Eaton Corporation ETN has reported fourth-quarter 2022 earnings of $2.06 per share, which surpassed the Zacks Consensus Estimate by 0.9%. Earnings were up 20% year over year.
GAAP earnings for the reported quarter were $1.8 per share compared with $1.37 in the year-ago quarter. The difference between GAAP and operating earnings for the reported quarter was due to charges of 24 cents for intangible amortization, 2 cents for a multi-year restructuring program, and 4 cents for acquisitions and divestitures.
GAAP earnings for 2022 were $6.14 per share, up 15% from $5.34 reported in 2021.
Revenues
Total quarterly revenues were $5,384 million, which surpassed the Zacks Consensus Estimate of $5,310 million by 1.4%. Total revenues improved 12.2% from the year-ago quarter. Total revenues for 2022 were $20.8 billion, up 5.8% from 2021.
Fourth-quarter revenues gained from a 15% increase in organic sales and a 1% increase in acquisitions. This was partially offset by 4% from negative currency translation.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
Segmental Details
Electrical Americas’ total fourth-quarter sales were $2,296 million, up 19.8% from the year-ago quarter. The improvement was due to increased organic sales.
Operating profits were $545 million, up 48.1% year over year.
Electrical Global’s total sales were $1,430 million, up 0.4% from the year-ago quarter. Organic sales were up 8% from the year-ago quarter, offset by a negative currency translation of 7%. Operating profits were $268 million, down 3.2% from the year-ago quarter.
Aerospace’s total sales were $812 million, up 7% from the year-ago quarter. Organic sales were up 11% from the year-ago quarter, offset by a negative currency translation of 4%.
Operating profits were $199 million, up 5.3% year over year.
Vehicle’s total sales were $707 million, up 16% from the year-ago quarter due to an increase in organic sales, partially offset by negative currency translation.
Operating profits were $107 million, up 7% year over year.
The eMobility segment’s total sales were $139 million, up 58% year over year due to an improvement in organic sales and the acquisition of Royal Power Solutions, offset marginally by a negative currency translation. The operating loss was $2 million in fourth-quarter 2022, narrower than the $8-million loss registered in the year-ago quarter.
Highlights of the Release
Selling and administrative expenses were $796 million, up 6% from the year-ago quarter.
ETN’s fourth-quarter research and development expenses were $167 million, up 3.1% from the prior-year period. Interest expenses for the quarter were $44 million, up 37.5% from the year-ago quarter.
Eaton’s backlog growth with orders increased 25% in Electrical and 24% in Aerospace on a rolling 12-month basis.
Financial Update
As of Dec 31, 2022, the company’s cash was $294 million, down from $297 million as of Dec 31, 2021.
As of Dec 31, 2022, the company’s long-term debt was $8,321 million, up 21.8% from $6,831 million as of Dec 31, 2021.
Guidance
Eaton’s first-quarter 2023 earnings are expected to be $1.72-$1.82 per share. ETN expects an organic growth of 8-10%.
Eaton expects earnings per share (EPS) of $8.04-$8.44 for 2023. ETN expects organic revenue growth of 7-9% for 2023. The segmental operating margin for 2022 is expected to be 20.7-21.1%.
Capital expenditure for 2023 is expected to be $630 million. Eaton expects to generate free cash flow of $2.6-$3 billion in 2023 and buy back shares of $300-$600 million in 2023.
Zacks Rank
Currently, Eaton has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Upcoming Releases
Deere & Company DE is scheduled to report first-quarter results on Feb 17, before market open. The Zacks Consensus Estimate for earnings is pegged at $5.51 per share, indicating a year-over-year increase of 88.7%.
Long-term (three to five years) earnings growth of Deere & Company is currently pegged at 11.92%. The Zacks Consensus Estimate for 2023 earnings per share is $28.01, implying a year-over-year increase of 20.32%.
Lincoln Electric LECO is scheduled to report fourth-quarter results on Feb 21, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.9 per share, indicating a year-over-year increase of 18.01%.
The long-term earnings growth of Deere & Company is currently pegged at 15%. The Zacks Consensus Estimate for 2023 EPS is $8.61, implying a year-over-year increase of 4.64%.
Donaldson DCI is scheduled to report first-quarter results on Mar 1, before market open. The Zacks Consensus Estimate for earnings is pegged at 69 cents per share, indicating a year-over-year increase of 21.05%.
Long-term earnings growth of Deere & Company is currently pegged at 10.5%. The Zacks Consensus Estimate for 2023 EPS is pegged at $3, implying a year-over-year increase of 11.94%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them 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
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report
Donaldson Company, Inc. (DCI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Upcoming Releases Deere & Company DE is scheduled to report first-quarter results on Feb 17, before market open. Eaton Corporation, PLC Price, Consensus and EPS Surprise Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote Segmental Details Electrical Americas’ total fourth-quarter sales were $2,296 million, up 19.8% from the year-ago quarter. ETN’s fourth-quarter research and development expenses were $167 million, up 3.1% from the prior-year period.
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Eaton Corporation, PLC Price, Consensus and EPS Surprise Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote Segmental Details Electrical Americas’ total fourth-quarter sales were $2,296 million, up 19.8% from the year-ago quarter. Click to get this free report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report Donaldson Company, Inc. (DCI) : Free Stock Analysis Report To read this article on Zacks.com click here. ETN’s fourth-quarter research and development expenses were $167 million, up 3.1% from the prior-year period.
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Eaton Corporation, PLC Price, Consensus and EPS Surprise Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote Segmental Details Electrical Americas’ total fourth-quarter sales were $2,296 million, up 19.8% from the year-ago quarter. Click to get this free report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report Donaldson Company, Inc. (DCI) : Free Stock Analysis Report To read this article on Zacks.com click here. ETN’s fourth-quarter research and development expenses were $167 million, up 3.1% from the prior-year period.
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Eaton Corporation, PLC Price, Consensus and EPS Surprise Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote Segmental Details Electrical Americas’ total fourth-quarter sales were $2,296 million, up 19.8% from the year-ago quarter. ETN’s fourth-quarter research and development expenses were $167 million, up 3.1% from the prior-year period. Eaton’s backlog growth with orders increased 25% in Electrical and 24% in Aerospace on a rolling 12-month basis.
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2023-02-08 00:00:00 UTC
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Amcor (AMCR) Q2 Earnings & Revenues Top Estimates, Up Y/Y
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https://www.nasdaq.com/articles/amcor-amcr-q2-earnings-revenues-top-estimates-up-y-y
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Amcor Plc AMCR reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings per share of 19 cents, which beat the Zacks Consensus Estimate of 18 cents. The bottom line improved 6% from the prior-year quarter.
Including special items, the company reported net earnings per share of 31 cents, up 107% from the prior-year quarter’s 15 cents.
Total revenues improved 4% year over year to $3,642 million for the reported quarter and beat the Zacks Consensus Estimate of $3,635 million. An unfavorable currency impact of 5% was offset by a price increase of around 8%. Net sales on a comparable constant-currency basis were 1% higher than last year quarter, reflecting price/mix benefits of approximately 3%, partly offset by approximately 2% lower volumes.
Amcor PLC Price, Consensus and EPS Surprise
Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote
Costs and Margins
The cost of sales increased 4% year over year to $2,980 million. The gross profit rose 3% year over year to $662 million. The gross margin was 18.2% for the quarter under review, reflecting a contraction of 20 basis points from the prior-year quarter.
SG&A expenses decreased 1.7% year on year to $298 million. The adjusted operating income was $399 million for the quarter, up 3% from $388 million in the prior-year quarter. The adjusted operating margin was 11% compared with 11.1% in the prior-year quarter.
Segment Performances
The Flexibles segment’s net sales increased 4% year over year to $2,812 million. This included an unfavorable currency impact of 6% and price increases of 7%. Adjusted operating profit was $353 million, marking a 5% increase from the prior-year quarter’s figure.
The Rigid Packaging segment’s net sales were $830 million in the quarter under review, 4% higher than the prior-year quarter. Price increase of 10% was offset by an unfavorable impact of 1% related to movements in foreign exchange rates. Adjusted EBIT increased 6% year over year to $57 million.
Financial Updates
As of the end of second-quarter fiscal 2023, Amcor had $837 million of cash and cash equivalents compared with $775 million at fiscal 2022-end. The company generated $145 million of cash from operating activities in the first half of fiscal 2023 compared with $323 million in the prior-year comparable period. AMCR reported an adjusted free cash outflow of $61 million in the first half of fiscal 2023 against an inflow of $105 million in the comparable period of the last year. As of Dec 31, 2022, Amcor’s net debt totaled $6.07 billion.
Amcor repurchased 3 million shares for $40 million in the first half of fiscal 2023. AMCR targeted total share repurchases of $500 million for fiscal 2023.
In the first half of fiscal 2023, the company returned approximately $400 million to shareholders through cash dividends and share repurchases. The company’s board of directors hiked the quarterly cash dividend to 12.25 cents per share from the previous payout of 12 cents per share.
AMCR completed the sale of its Russia business on Dec 23, 2022, and received cash proceeds of around $365 million. This was in addition to approximately $65 million of cash on hand in Russia, which was repatriated upon the closing of the deal. Approximately $120 million of the cash received is expected to be invested in a range of additional cost-saving initiatives. The company expects to use the remaining amount in repurchasing shares up to $100 million and to repay debt.
In January 2023, Amcor announced that it entered an agreement to acquire Shanghai-based MDK., which is a leading provider of flexible packaging for the medical device segment. MDK has an annual sales of approximately $50 million. MDK's coating capabilities, medical paper-based packaging products and customer base will complement Amcor's portfolio, while strengthening its leadership position in the China and broader Asia Pacific medical packaging segment. The acquisition is expected to close by the end of the third quarter of fiscal 2023.
Fiscal 2023 Guidance
Amcor expects adjusted comparable constant currency EPS growth of 3-8% for fiscal 2023. The guidance factors in an 5-10% expected growth from the underlying business performance and a 2% gain from share repurchases. This will be partly offset by a negative impact of 4% related to higher interest expenses and tax. A stronger dollar will impact earnings by 4%. AMCR also anticipates a negative impact of 3% associated with the sale of its three plants in Russia.
Adjusted EPS is expected to be 77-81 cents. The company projects an adjusted free cash flow of $1-$1.1 billion.
Share Price Performance
Image Source: Zacks Investment Research
Over the past year, Amcor’s shares have gained 1% compared with the industry’s 1.3% growth.
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS, and Deere & Company DE. OI and TS sport a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 66.9% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them 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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
Amcor PLC (AMCR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In January 2023, Amcor announced that it entered an agreement to acquire Shanghai-based MDK., which is a leading provider of flexible packaging for the medical device segment. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Amcor Plc AMCR reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings per share of 19 cents, which beat the Zacks Consensus Estimate of 18 cents.
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Amcor Plc AMCR reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings per share of 19 cents, which beat the Zacks Consensus Estimate of 18 cents. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. The gross margin was 18.2% for the quarter under review, reflecting a contraction of 20 basis points from the prior-year quarter.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. Amcor Plc AMCR reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings per share of 19 cents, which beat the Zacks Consensus Estimate of 18 cents. The gross margin was 18.2% for the quarter under review, reflecting a contraction of 20 basis points from the prior-year quarter.
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Amcor Plc AMCR reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings per share of 19 cents, which beat the Zacks Consensus Estimate of 18 cents. The Rigid Packaging segment’s net sales were $830 million in the quarter under review, 4% higher than the prior-year quarter. The gross margin was 18.2% for the quarter under review, reflecting a contraction of 20 basis points from the prior-year quarter.
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2023-02-08 00:00:00 UTC
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Wall Street Bulls Look Optimistic About Deere (DE): Should You Buy?
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https://www.nasdaq.com/articles/wall-street-bulls-look-optimistic-about-deere-de%3A-should-you-buy
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Deere (DE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Deere currently has an average brokerage recommendation (ABR) of 1.81, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 18 brokerage firms. An ABR of 1.81 approximates between Strong Buy and Buy.
Of the 18 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 55.6% and 5.6% of all recommendations.
Brokerage Recommendation Trends for DE
Check price target & stock forecast for Deere here>>>
The ABR suggests buying Deere, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is DE Worth Investing In?
Looking at the earnings estimate revisions for Deere, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $28.01.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Deere. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Deere may serve as a useful guide for investors.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
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Deere currently has an average brokerage recommendation (ABR) of 1.81, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Deere may serve as a useful guide for investors. The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock.
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Looking at the earnings estimate revisions for Deere, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $28.01. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Deere may serve as a useful guide for investors. The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock.
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4302cdef-296a-4e8b-bbf3-0f8935cfec64
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720812.0
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2023-02-08 00:00:00 UTC
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Crown Holdings (CCK) Earnings Top Estimates in Q4, Dip Y/Y
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DE
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https://www.nasdaq.com/articles/crown-holdings-cck-earnings-top-estimates-in-q4-dip-y-y
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nan
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nan
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Crown Holdings, Inc. CCK reported fourth-quarter 2022 adjusted earnings per share (EPS) of $1.17, beating the Zacks Consensus Estimate of $1.07. The bottom line slumped 30% year over year but came above the company’s guidance of $1.00-$1.10.
Including one-time items, the company reported earnings from continuing operations of 74 cents per share in the quarter under review against a loss of $7.87 per share in the prior-year quarter.
Net sales in the quarter totaled $3,012 million, down 1.4% from the year-ago quarter’s $3,054 million. The downside was owing to lower volumes in the Transit Packaging businesses and a $92 million negative impact of unfavorable foreign currency translation. These were offset by increased beverage can unit volumes and pass-through of higher material costs. The reported figure missed the Zacks Consensus Estimate of $3,099 million.
Costs and Margins
The cost of products sold increased 1.1% year over year to $2,509 million. On a year-over-year basis, gross profit declined 12.2% to $503 million. The gross margin contracted to 16.7% from the year-ago quarter’s 18.8%.
Selling and administrative expenses were down 5.5% year over year to $137 million. Segment operating income was $292 million in the quarter under review compared with the prior-year quarter’s $357 million. The decline was mainly due to higher inventory levels, lower cost absorption from planned inventory reductions and higher energy prices. The segment operating margin was 9.7% compared with 11.7% in the prior-year quarter.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote
Segment Performance
Net sales in the Americas Beverage segment totaled $1,210 million, up 0.7% year over year. Segment operating profit decreased 2.2% year over year to $177 million.
The European Beverage segment’s sales fell 1.9% year over year to $453 million. Operating income was $15 million, marking a 65.1% slump from the year-ago quarter’s $43 million.
The Asia-Pacific segment’s revenues totaled $395 million, increasing 3.7% year over year. Operating profit was $29 million compared with the prior-year quarter’s $51 million.
Revenues in the Transit Packaging segment totaled $588 million, down 15% from the year-ago quarter’s $692 million. Operating profit declined 14.5% year over year to $71 million.
Financial Update
Crown Holdings had cash and cash equivalents of $550 million at the end of 2022, up from $531 million at the end of 2021. The company generated $803 million in cash from operating activities in 2022 compared with $905 million in the prior-year period.
Crown Holdings’ long-term debt rose to $6,792 million at the end of 2022, up from $6,052 million at the prior-year quarter’s end.
The company repurchased 6.4 million of its shares for $722 million. The company has remaining authorization to repurchase an additional $2.3 billion through December 2024.
2022 Performance
The company reported 2022 adjusted earnings per share (EPS) of $6.75, beating the Zacks Consensus Estimate of $6.65. The bottom line slumped 12% year over year but came above the company’s guidance of $6.60-$6.70.
Including one-time items, the company reported earnings from continuing operations of $5.99 per share in the quarter under review against a loss of $3.89 per share in the prior-year quarter.
Net sales in the year totaled $12.94 billion, up 13.6% from 2021’s $11.39 billion. The reported figure missed the Zacks Consensus Estimate of $13.03 billion.
Outlook
Crown Holdings projects first-quarter 2023 adjusted EPS between $1.00 and $1.10. For 2023, the company anticipates adjusted EPS of $6.20-$6.40.
Price Performance
Crown Holdings’ shares have declined 23.6% in the past year compared with the industry’s fall of 28.4%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 66.9% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them 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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Crown Holdings, Inc. (CCK) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The downside was owing to lower volumes in the Transit Packaging businesses and a $92 million negative impact of unfavorable foreign currency translation. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Including one-time items, the company reported earnings from continuing operations of 74 cents per share in the quarter under review against a loss of $7.87 per share in the prior-year quarter.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. Including one-time items, the company reported earnings from continuing operations of 74 cents per share in the quarter under review against a loss of $7.87 per share in the prior-year quarter. The downside was owing to lower volumes in the Transit Packaging businesses and a $92 million negative impact of unfavorable foreign currency translation.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. Including one-time items, the company reported earnings from continuing operations of 74 cents per share in the quarter under review against a loss of $7.87 per share in the prior-year quarter.
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Price Performance Crown Holdings’ shares have declined 23.6% in the past year compared with the industry’s fall of 28.4%. Image Source: Zacks Investment Research Zacks Rank and Stocks to Consider Crown Holdings currently carries a Zacks Rank #3 (Hold). Including one-time items, the company reported earnings from continuing operations of 74 cents per share in the quarter under review against a loss of $7.87 per share in the prior-year quarter.
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ae890ca3-b781-47f3-b0a7-8153e21df87a
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720813.0
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2023-02-08 00:00:00 UTC
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CNH Industrial (CNHI) Q4 Earnings In Line With Estimates
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DE
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https://www.nasdaq.com/articles/cnh-industrial-cnhi-q4-earnings-in-line-with-estimates
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nan
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CNH Industrial CNHI posted fourth-quarter 2022 adjusted earnings per share of 36 cents, which increased from 25 cents in the prior-year quarter and were in line with the Zacks Consensus Estimate. Higher-than-anticipated revenues across the Agricultural, Construction and Financial Services segments, offset by adverse impact of foreign exchange rates, resulted in this in-line performance.
In the fourth quarter, consolidated revenues rose 26.7% from the year-ago level to $6,943 million, topping the consensus mark of $6,308 million. The company’s net sales from industrial activities came in at $6,352 million, up 27.2%, led by higher volumes and favorable pricing.
CNH Industrial N.V. Price, Consensus and EPS Surprise
CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote
Segmental Performance
In the December quarter, net sales in the Agricultural segment grew 29% year over year to $5,369 million due to favorable price realization and an improved mix, mainly driven by Europe, North America and South America regions. The metric also topped the Zacks Consensus Estimate of $4,810 million. The segment’s adjusted EBIT came in at $701 million, jumping 69% year over year and topping the consensus mark of $665 million. The adjusted EBIT margin increased to 13.1% from 10%.
The Construction segment’s sales grew 17% year over year to $983 million in the quarter, led by price realization and contribution from the Sampierana business. Also, revenues beat the Zacks Consensus Estimate of $914 million. Adjusted EBIT came in at $34 million, gaining 70% on the back of favorable volume and a positive price realization. The figure also surpassed the consensus mark of $28.32 million. The adjusted EBIT margin increased to 3.5% from 2.4%.
The Financial Services segment revenues went up 21% to $577 million, topping the consensus mark of $488 million on higher used equipment sales, improved volumes and better base rates across all regions, especially in South America. Net income from the segment declined 17% to $75 million in the quarter under review.
Financial Details
CNH Industrial had cash and cash equivalents of $4,376 million as of Dec 31, 2022, down from $5,044 million as of Dec 31, 2021. The company’s debt totaled $22,962 million at the end of the fourth quarter of 2022, up from $20,897 million as of Dec 31, 2021. The firm had available liquidity of $10,632 million as of Dec 31, 2022.
CNH Industrial’s net cash provided by operating activities was $1,443 million, down from $1,724 million in the year-ago period. Free cash flow from industrial activities was $2,049 million in the quarter versus FCF of $1,225 million in the fourth quarter of 2021.
The board proposed an annual cash dividend of 38 cents per share, subject to the approval of shareholders as well as formal board consent.
2023 Guidance
For 2023, sales are expected to increase year over year in the band of 6-10%. The projections for free cash flow from industrial activities are in the range of $1.3 billion to $1.5 billion. R&D expenses and capex projections stand at around $1.6 billion. SG&A expenses are expected to grow by no more than 5% by 2022.
Zacks Rank and Key Picks
CNH Industrial currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same industry are Deere & Company DE and AGCO AGCO, both carrying a Zacks Rank #2 (Buy).
Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand. The Zacks Consensus Estimate for DE’s 2023 sales and earnings imply year-over-year growth of 10.84% and 13.07%, respectively.
AGCO is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The Zacks Consensus Estimate for AGCO’s 2023 sales and earnings imply year-over-year growth of 1.67% and 4.49%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them 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
Deere & Company (DE) : Free Stock Analysis Report
AGCO Corporation (AGCO) : Free Stock Analysis Report
CNH Industrial N.V. (CNHI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CNH Industrial N.V. Price, Consensus and EPS Surprise CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote Segmental Performance In the December quarter, net sales in the Agricultural segment grew 29% year over year to $5,369 million due to favorable price realization and an improved mix, mainly driven by Europe, North America and South America regions. Net income from the segment declined 17% to $75 million in the quarter under review. Financial Details CNH Industrial had cash and cash equivalents of $4,376 million as of Dec 31, 2022, down from $5,044 million as of Dec 31, 2021.
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CNH Industrial N.V. Price, Consensus and EPS Surprise CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote Segmental Performance In the December quarter, net sales in the Agricultural segment grew 29% year over year to $5,369 million due to favorable price realization and an improved mix, mainly driven by Europe, North America and South America regions. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report CNH Industrial N.V. (CNHI) : Free Stock Analysis Report To read this article on Zacks.com click here. Net income from the segment declined 17% to $75 million in the quarter under review.
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CNH Industrial N.V. Price, Consensus and EPS Surprise CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote Segmental Performance In the December quarter, net sales in the Agricultural segment grew 29% year over year to $5,369 million due to favorable price realization and an improved mix, mainly driven by Europe, North America and South America regions. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report CNH Industrial N.V. (CNHI) : Free Stock Analysis Report To read this article on Zacks.com click here. Net income from the segment declined 17% to $75 million in the quarter under review.
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A few better-ranked players in the same industry are Deere & Company DE and AGCO AGCO, both carrying a Zacks Rank #2 (Buy). CNH Industrial N.V. Price, Consensus and EPS Surprise CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote Segmental Performance In the December quarter, net sales in the Agricultural segment grew 29% year over year to $5,369 million due to favorable price realization and an improved mix, mainly driven by Europe, North America and South America regions. Net income from the segment declined 17% to $75 million in the quarter under review.
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e507dd41-aa7a-4ba1-9b52-aa3fdc81761b
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720814.0
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2023-02-07 00:00:00 UTC
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Deere (DE) Stock Sinks As Market Gains: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-stock-sinks-as-market-gains%3A-what-you-should-know-4
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Deere (DE) closed the most recent trading day at $409.52, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
Coming into today, shares of the agricultural equipment manufacturer had lost 4.2% in the past month. In that same time, the Industrial Products sector gained 4.52%, while the S&P 500 gained 5.64%.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. This is expected to be February 17, 2023. The company is expected to report EPS of $5.51, up 88.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.44 billion, up 34.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.01 per share and revenue of $54.38 billion. These totals would mark changes of +20.32% and +13.49%, respectively, from last year.
Any recent changes to analyst estimates for Deere should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Deere is currently a Zacks Rank #2 (Buy).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 14.65. This valuation marks a premium compared to its industry's average Forward P/E of 13.92.
Also, we should mention that DE has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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 DE in the coming trading sessions, be sure to utilize Zacks.com.
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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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) closed the most recent trading day at $409.52, moving -0.17% from the previous trading session. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%. Wall Street will be looking for positivity from Deere as it approaches its next earnings report date.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) closed the most recent trading day at $409.52, moving -0.17% from the previous trading session. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) closed the most recent trading day at $409.52, moving -0.17% from the previous trading session. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
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Deere (DE) closed the most recent trading day at $409.52, moving -0.17% from the previous trading session. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%. Wall Street will be looking for positivity from Deere as it approaches its next earnings report date.
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473e32bb-7f85-43a6-9c20-37e5764dac43
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720815.0
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2023-02-07 00:00:00 UTC
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Noteworthy ETF Outflows: VONE, DE, MMC, PGR
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-vone-de-mmc-pgr
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 ETF (Symbol: VONE) where we have detected an approximate $164.0 million dollar outflow -- that's a 4.2% decrease week over week (from 20,650,000 to 19,775,000). Among the largest underlying components of VONE, in trading today Deere & Co. (Symbol: DE) is off about 0.4%, Marsh & McLennan Companies Inc. (Symbol: MMC) is down about 0.7%, and Progressive Corp. (Symbol: PGR) is lower by about 0.6%. For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average:
Looking at the chart above, VONE's low point in its 52 week range is $158.95 per share, with $212.01 as the 52 week high point — that compares with a last trade of $186.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
Also see:
JASN YTD Return
FNP Videos
Top Ten Hedge Funds Holding IMED
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs experienced notable outflows » Also see: JASN YTD Return FNP Videos Top Ten Hedge Funds Holding IMED The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average: Looking at the chart above, VONE's low point in its 52 week range is $158.95 per share, with $212.01 as the 52 week high point — that compares with a last trade of $186.70. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 ETF (Symbol: VONE) where we have detected an approximate $164.0 million dollar outflow -- that's a 4.2% decrease week over week (from 20,650,000 to 19,775,000). For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average: Looking at the chart above, VONE's low point in its 52 week range is $158.95 per share, with $212.01 as the 52 week high point — that compares with a last trade of $186.70. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 ETF (Symbol: VONE) where we have detected an approximate $164.0 million dollar outflow -- that's a 4.2% decrease week over week (from 20,650,000 to 19,775,000). Among the largest underlying components of VONE, in trading today Deere & Co. (Symbol: DE) is off about 0.4%, Marsh & McLennan Companies Inc. (Symbol: MMC) is down about 0.7%, and Progressive Corp. (Symbol: PGR) is lower by about 0.6%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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39eb8721-7d2c-4ce4-b5b7-9df9430ff33f
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720816.0
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2023-02-07 00:00:00 UTC
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Terex (TEX) to Report Q4 Earnings: What's in the Offing?
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DE
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https://www.nasdaq.com/articles/terex-tex-to-report-q4-earnings%3A-whats-in-the-offing-0
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nan
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Terex Corporation TEX is scheduled to report fourth-quarter fiscal 2022 results on Feb 9, after the closing bell.
Q4 Estimates
The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $1.10 billion, indicating growth of 10.7% from the prior-year quarter’s figure. The consensus mark for quarterly earnings stands at $1.13, suggesting growth of 38% from the prior-year quarter's reported figure. The estimate has been unchanged over the past 30 days.
Q3 Results
Terex delivered year-over-year improvement in both third-quarter fiscal 2022 revenues and earnings, courtesy of strong demand and order growth. The company beat the Zacks Consensus Estimate on both metrics. The company has a trailing four-quarter positive earnings surprise of 36.7%, on average.
Terex Corporation Price and EPS Surprise
Terex Corporation price-eps-surprise | Terex Corporation Quote
Key Factors to Note
Terex has been delivering year-over-year growth in earnings over the past seven quarters, driven by robust bookings and revenue growth, and margin expansion in both of the business segments. Its backlog has also shown year-over-year improvement over the past eight quarters and reached a solid $3.9 billion at the end of the third quarter of 2022. Compared with last year’s levels, the backlog improved 33%. Both segments witnessed an improvement in backlog over the said time frame. The backlog in the AWP segment was $2.72 billion, while the same in the MP segment was $1.2 billion at the third-quarter end. Robust backlog and strong end-market demand are expected to have aided its fourth-quarter top-line performance.
The company’s pricing actions are likely to have negated the impact of higher input costs witnessed throughout the quarter. Even though end-market demand remains strong, the supply chain, labor, freight and logistics challenges have been impacting production, consequently impairing Terex’s ability to meet these levels.
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Terex this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for TEX is -0.60%.
Zacks Rank: Terex currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Image Source: Zacks Investment Research
Over the past year, shares of Terex have gained 24.4% against the industry’s 22.9% rise.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Allegion plc ALLE currently has an Earnings ESP of +4.19% and a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $1.37 per share. This suggests year-over-year growth of 23.4%.
The Zacks Consensus Estimate for ALLE’s quarterly revenues is pegged at $849 million, indicating year-over-year growth of 19.7%. ALLE has a trailing four-quarter earnings surprise of 8.8%, on average.
Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has been unchanged in the past 30 days and is pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
The Middleby Corporation MIDD currently has an Earnings ESP of +2.20% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $2.46 per share. This suggests year-over-year growth of 16.6%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, indicating growth of 16.8% from the prior-year quarter’s reported level.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Terex Corporation (TEX) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
The Middleby Corporation (MIDD) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Q3 Results Terex delivered year-over-year improvement in both third-quarter fiscal 2022 revenues and earnings, courtesy of strong demand and order growth. Even though end-market demand remains strong, the supply chain, labor, freight and logistics challenges have been impacting production, consequently impairing Terex’s ability to meet these levels. Terex Corporation Price and EPS Surprise Terex Corporation price-eps-surprise | Terex Corporation Quote Key Factors to Note Terex has been delivering year-over-year growth in earnings over the past seven quarters, driven by robust bookings and revenue growth, and margin expansion in both of the business segments.
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The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Terex Corporation (TEX) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report The Middleby Corporation (MIDD) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report To read this article on Zacks.com click here. Q3 Results Terex delivered year-over-year improvement in both third-quarter fiscal 2022 revenues and earnings, courtesy of strong demand and order growth.
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Terex Corporation Price and EPS Surprise Terex Corporation price-eps-surprise | Terex Corporation Quote Key Factors to Note Terex has been delivering year-over-year growth in earnings over the past seven quarters, driven by robust bookings and revenue growth, and margin expansion in both of the business segments. The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Terex Corporation (TEX) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report The Middleby Corporation (MIDD) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks Poised to Beat Earnings Estimates Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases: Q3 Results Terex delivered year-over-year improvement in both third-quarter fiscal 2022 revenues and earnings, courtesy of strong demand and order growth. Terex Corporation Price and EPS Surprise Terex Corporation price-eps-surprise | Terex Corporation Quote Key Factors to Note Terex has been delivering year-over-year growth in earnings over the past seven quarters, driven by robust bookings and revenue growth, and margin expansion in both of the business segments.
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720817.0
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2023-02-07 00:00:00 UTC
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Timken (TKR) Earnings Beat Estimates in Q4, Increase Y/Y
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https://www.nasdaq.com/articles/timken-tkr-earnings-beat-estimates-in-q4-increase-y-y
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The Timken Company TKR reported adjusted EPS of $1.22 in fourth-quarter 2022, beating the Zacks Consensus Estimate of $1.09 per share. The bottom line increased 56% year over year.
On a reported basis, the company delivered earnings of $1.32 per share in the quarter under review compared with 82 cents per share in the prior-year quarter.
Total revenues in the quarter were $1,082 million, up 7.4% from the year-ago quarter. The upside can be attributed to strong growth across most end-market sectors, driven by industrial distribution and off-highway, as well as the favorable impact of higher pricing, partly offset by unfavorable currency. The top line, however, missed the Zacks Consensus Estimate of $1,096 million.
Costs and Margins
Cost of sales rose 1.5% to $786 million from the prior-year quarter. Gross profit increased 27% year over year to $296 million. The gross margin was 27.4% compared with 23.1% a year ago.
Selling, general and administrative expenses were up 14.3% year over year to $167 million. Adjusted EBITDA increased 37.4% year over year to $186 million. The adjusted EBITDA margin in the quarter was 17.3% compared with 14% in the prior-year quarter.
Timken Company (The) Price, Consensus and EPS Surprise
Timken Company (The) price-consensus-eps-surprise-chart | Timken Company (The) Quote
Segmental Performance
The Mobile Industries segment’s revenues rose 3.3% year over year to $596 million. The segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $52.9 million compared with the year-ago quarter’s $40 million. The upside was driven by organic growth across most sectors, led by off-highway and rail and positive pricing. These were somewhat offset by unfavorable foreign currency translation, and higher manufacturing and SG&A costs.
The Process Industries segment’s revenues rose 11.1% year over year to $586 million in fourth-quarter 2022. The segment’s adjusted EBITDA was $137.1 million in the fourth quarter of 2022 compared with $104.4 million in the fourth quarter of 2021. The upside was led by organic growth across all sectors led by distribution, heavy industries and general industrial, and the impact of acquisitions (net). A positive pricing mix and higher volumes drove the increase. These headwinds were offset by unfavorable foreign currency translation, and higher manufacturing and SG&A costs.
Financial Position
Timken had cash and cash equivalents of $332 million at the end of 2022, up from $257 million at the end of 2021. Cash flow from operating activities was $242 million in the fourth quarter against $103 million in the prior-year quarter. In the quarter, Timken returned $40.8 million of cash to shareholders through dividends and share repurchases.
Long-term debt as of Dec 31, 2022, was $1.91 billion, up from $1.41billion as of Dec 31, 2021. Net debt to adjusted EBITDA was 1.9 as of Dec 31, 2022, compared with 1.7 as of Dec 31, 2021.
2022 Performance
Timken reported record adjusted EPS of $6.02 in 2022, beating the Zacks Consensus Estimate of $5.90 per share. The bottom line increased 28% year over year. The year-over-year improvement is primarily due to the favorable pricing actions and higher volume, which are partially offset by higher operating costs and interest expenses, a higher tax rate, and the net unfavorable impact of impairment charges and other special items.
On a reported basis, the company delivered earnings of $5.48 per share in 2022 compared with $4.79 per share in 2021.
Total revenues in 2022 were $4.5 billion, in line with the Zacks Consensus Estimate. The top line improved 8.8% on a year-over-year basis. The upside was owing to organic growth across most end market sectors and the impact of higher pricing and acquisitions, partially offset by unfavorable foreign currency translation.
2023 Guidance
Timken expects 2023’s total revenues to be up 6% at the midpoint from the 2022 reported levels. The company anticipates adjusted EPS between $6.50 and $7.10 per share for the year.
Price Performance
In the past year, shares of Timken have gained 27.4% compared to the industry’s growth of 11.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Timken currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc OI Tenaris TS and Deere & Company DE. OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 66.9% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
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O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Timken Company (The) (TKR) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The upside can be attributed to strong growth across most end-market sectors, driven by industrial distribution and off-highway, as well as the favorable impact of higher pricing, partly offset by unfavorable currency. The upside was owing to organic growth across most end market sectors and the impact of higher pricing and acquisitions, partially offset by unfavorable foreign currency translation. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Timken Company (The) (TKR) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. On a reported basis, the company delivered earnings of $1.32 per share in the quarter under review compared with 82 cents per share in the prior-year quarter. The upside can be attributed to strong growth across most end-market sectors, driven by industrial distribution and off-highway, as well as the favorable impact of higher pricing, partly offset by unfavorable currency.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Timken Company (The) (TKR) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. On a reported basis, the company delivered earnings of $1.32 per share in the quarter under review compared with 82 cents per share in the prior-year quarter.
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On a reported basis, the company delivered earnings of $1.32 per share in the quarter under review compared with 82 cents per share in the prior-year quarter. The upside can be attributed to strong growth across most end-market sectors, driven by industrial distribution and off-highway, as well as the favorable impact of higher pricing, partly offset by unfavorable currency. The segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $52.9 million compared with the year-ago quarter’s $40 million.
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2023-02-07 00:00:00 UTC
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Watch: John Deere's High-Tech Tractor Will Amaze You
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https://www.nasdaq.com/articles/watch%3A-john-deeres-high-tech-tractor-will-amaze-you
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CES in Las Vegas is the world's largest tech show, with awesome displays of artificial intelligence, machine learning, and autonomous vehicles. This year, my favorite example of all these futuristic technologies comes from a company many associate more with Green Acres than Silicon Valley.
John Deere (NYSE: DE) may be 186 years old, but it wowed CES visitors with its massive combine tractor that saves 60% in chemical costs by using AI, NVIDIA processors, and sensors to spray chemicals with pinpoint control. The company also showed off other futuristic technology, including its self-driving tractor and an app that allows farmers to monitor all aspects of their tractors in the fields.
Watch the video below for a guided technological tour from Julian Sanchez, director of emerging technologies in John Deere's Intelligent Solutions Group (ISG).
A full transcript follows the video.
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Julian Sanchez:
[00:00:00] We're going to get real close and personal to the technology that we call See & Spray. See & Spray is a technology that gets mounted to a sprayer, sprayers used to drive through a field and apply herbicides or nutrients to plants. What we've done is we've added 36 cameras to this 120 foot carbon fiber boom, and we've added 10 NVIDIA GPUs that are housed in a special case and they keeps them passively cooled so that they can withstand very harsh conditions. As this machine is moving through the field at 12 miles an hour, those cameras are looking ahead, and they're looking to detect weeds on the ground. If you look over there, those x's represent weeds. The machine detects those weeds and applies herbicides only to the weeds. The herbicides [00:01:00] come out from underneath here in these nozzles. Every time the camera sees a weed, it sends a message, and within a millisecond it activates these nozzles and then sprays only the weeds.
This system has the ability and potential to save farmers 2/3 of the herbicides their use. Huge economic impact, but even more of an environmental impact. The magic in developing the system is we had to spend several years capturing images of what different weeds look like all over the world, and training a deep neural network in this is what weeds look like, this is what a plant looks like. Again, here you see a visual representation. Let's assume this machine was moving at 12 miles an hour. That's the speed at which we could operate using the system. The rows, those represent crops, those are plants, could be corn, could be soybeans. Every once in the middle there you see weeds.
[00:02:00] Again, that's what those cameras are looking for and they're only spraying those weeds. Again, deep neural network, one of the most sophisticated artificial intelligence system that is real is being used by farmers already today. It works extremely well in the harshest of conditions. Again, we're talking about dusty fields, crosswinds, different lighting conditions.
The ruggedization of this advanced AI system on the edge is tremendous. One last important point is all of the vehicles that we make come with connectivity. All of this data does get transmitted to the Cloud so the farmer can review it later. However, because we're in rural environments, we can't rely on connectivity all the time. All the compute is done at the edge.
This system is also intended to save on chemicals. What happens when this is a planter and [00:03:00] as this moves through the field, it's dropping seeds, it drops 30 seeds per second. Traditionally, what happens is, something that called starter fertilizer gets applied. Can we move around you real quick here just to see? Can you run it? The seeds are going to be coming out at 30 per second. Traditionally, what happen is you run that. Is there a thing? [inaudible 00:03:30] second. Got you. Yeah, perfect. Right now, the technology, as of today, we just continuously apply starter fertilizer. You'll see it in the second, it'll start to pulse. Now we time each seed with a pulse. Again, this also has the opportunity to save 60 percent and starter fertilizer.
Every sensor on these machines is connected [00:04:00] to a mobile application. This is a representation of what a farmer will be seen on their phone. At any point, a farmer can basically from anywhere in the world monitor what's going on with any of their vehicles. They can click on any one of those vehicles. They can monitor the data that's coming from any of those sensors. In some cases, they can reconfigure the machine remotely from the mobile app. If you asked 10 farmers today, what's the coolest piece of technology and agriculture? I bet at least half of them would tell you it's the mobile app. Because the mobile app brings it all together.
Rex Moore: How about autonomous tractors?
Julian Sanchez: Let's go over here. Let's talk about autonomy then. Last year at CES, we announced our first full autonomous tractor. This is a sensor suite for the autonomous tractor. This sensor suite will go in the front of the tractor, and it has three pairs of stereo cameras. There's actually another [00:05:00] set of stereo cameras in the back, so we get a 360 view. But basically, we've introduced autonomy in one of the applications in agriculture, which is Tillage. Over the next decade we plan to extend autonomy to the other applications in agriculture which is spraying, harvesting the crops and planting the crops. Just about every farmer you talk to globally, one of the top three asks that come up is autonomy. Because labor shortages are an issue. By the way, labor shortages in agriculture were an issue before they were labor shortages everywhere else.
Rex Moore has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Deere. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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John Deere (NYSE: DE) may be 186 years old, but it wowed CES visitors with its massive combine tractor that saves 60% in chemical costs by using AI, NVIDIA processors, and sensors to spray chemicals with pinpoint control. Watch the video below for a guided technological tour from Julian Sanchez, director of emerging technologies in John Deere's Intelligent Solutions Group (ISG). A full transcript follows the video.
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John Deere (NYSE: DE) may be 186 years old, but it wowed CES visitors with its massive combine tractor that saves 60% in chemical costs by using AI, NVIDIA processors, and sensors to spray chemicals with pinpoint control. Watch the video below for a guided technological tour from Julian Sanchez, director of emerging technologies in John Deere's Intelligent Solutions Group (ISG). The Motley Fool recommends Deere.
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John Deere (NYSE: DE) may be 186 years old, but it wowed CES visitors with its massive combine tractor that saves 60% in chemical costs by using AI, NVIDIA processors, and sensors to spray chemicals with pinpoint control. The magic in developing the system is we had to spend several years capturing images of what different weeds look like all over the world, and training a deep neural network in this is what weeds look like, this is what a plant looks like. Watch the video below for a guided technological tour from Julian Sanchez, director of emerging technologies in John Deere's Intelligent Solutions Group (ISG).
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The machine detects those weeds and applies herbicides only to the weeds. John Deere (NYSE: DE) may be 186 years old, but it wowed CES visitors with its massive combine tractor that saves 60% in chemical costs by using AI, NVIDIA processors, and sensors to spray chemicals with pinpoint control. Watch the video below for a guided technological tour from Julian Sanchez, director of emerging technologies in John Deere's Intelligent Solutions Group (ISG).
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720819.0
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2023-02-06 00:00:00 UTC
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3 ETFs for the Artificial Intelligence Boom
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https://www.nasdaq.com/articles/3-etfs-for-the-artificial-intelligence-boom
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t remains to be seen just how durable this year’s growth stock rebound will be, but one thing is clear: There’s obvious momentum for the artificial intelligence (AI) investing theme.
Consider some of the very recent headlines. Last week, Google parent Alphabet (GOOG) said it will invest $300 million in a company known as Anthropic, which is a rival to OpenAI. Anthropic makes the Claude chatbot, a competitor to OpenAI’s famed ChatGPT.
Speaking of ChatGPT and OpenAI, it’s rumored that Microsoft (MSFT) is readying an investment of up to $10 billion in that company. That after the software giant allocated $1 billion to OpenAI in 2019 and another $2 billion two years later.
Enthusiasm for ChatGPT is having a positive effect on a slew of other AI equities as highlighted by the fact that the Nasdaq CTA Artificial Intelligence and Robotics Index is higher by 19.60% year-to-date, or more than double the returns posted by the S&P 500. With that in mind, it’s not surprising that some investors are considering revisiting AI ETFs. Here are a few to evaluate.
ARK Autonomous Technology & Robotics ETF (ARKQ)
The ARK Autonomous Technology & Robotics ETF (ARKQ) is an entrenched force in the AI ETF arena and it’s strutting its stuff this year as evidenced by a 24.36% gain. That’s testament to the advantages of active management in disruptive technology industries, of which AI and robotics certainly are two.
Being an active fund, ARKQ offers investors flexibility, meaning it can key on industries that are AI-intensive, including 3D printing, automation and robotics, autonomous transportation and space exploration, among others. That flexibility is meaningful in another way in that ARKQ doesn’t need to rely on speculative stocks to drive returns. In fact, its roster features some familiar names such as Tesla (TSLA), Deere (DE), Caterpillar (CAT) and Alphabet.
As ARK points out in its 2023 Big Ideas report, the intersection of autonomous transportation and logistics, which will be drive in large part by AI, has an attractive runway for growth.
“Based on our updated assumptions on pricing, ARK estimates that autonomous logistics revenue could scale from nearly zero today to $1-2 trillion by 2030," notes ARKQ’s issuer. "Autonomous delivery charges could range from $0.20 to $10 per trip."
Robo Global Robotics and Automation Index ETF (ROBO)
One of the godfathers of the AI ETF group, the Robo Global Robotics and Automation Index ETF (ROBO) is setting a nice pace to start 2023 with a gain of nearly 18%. The $1.38 billion ETF turns 10 years old in October and “invests in global companies that are driving transformative innovations in robotics, automation and artificial intelligence (RAAI), including companies that create technology to enable truly intelligent systems that can sense, process and act, and companies that apply those technologies to deliver RAAI-enabled products—including robots—to businesses and consumers,” according to the issuer.
ROBO’s portfolio is well-balanced as none of its 80 holdings exceed a weight of 2.08%, confirming single stock risk is relatively benign in this AI ETF.
ROBO offers other benefits, including the size factor and geographic diversity. Sixty-percent of its holdings are classified as mid- and small-caps and 58% of its components are not US-based firms.
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) follows the aforementioned Nasdaq CTA Artificial Intelligence and Robotics Index, which is one of the more compelling benchmarks tied to AI.
The Nasdaq CTA Artificial Intelligence and Robotics Index focuses on three types of companies: Enablers, engagers and enhancers. Enablers are considered to be firms providing foundational pieces in the AI and robotics equations while engagers “design, create, integrate or deliver robotics and/or AI in the form of products, software or systems,” according to the index provider.
Enhancers aren’t core AI names, but they provide value add services throughout the industry. The $210 million ROBT holds 111 stocks with a median market capitalization of $15.93 billion, indicating this AI ETF isn’t heavily on large- and mega-cap names to drive performance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Enthusiasm for ChatGPT is having a positive effect on a slew of other AI equities as highlighted by the fact that the Nasdaq CTA Artificial Intelligence and Robotics Index is higher by 19.60% year-to-date, or more than double the returns posted by the S&P 500. Consider some of the very recent headlines. Anthropic makes the Claude chatbot, a competitor to OpenAI’s famed ChatGPT.
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ARK Autonomous Technology & Robotics ETF (ARKQ) The ARK Autonomous Technology & Robotics ETF (ARKQ) is an entrenched force in the AI ETF arena and it’s strutting its stuff this year as evidenced by a 24.36% gain. The $1.38 billion ETF turns 10 years old in October and “invests in global companies that are driving transformative innovations in robotics, automation and artificial intelligence (RAAI), including companies that create technology to enable truly intelligent systems that can sense, process and act, and companies that apply those technologies to deliver RAAI-enabled products—including robots—to businesses and consumers,” according to the issuer. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) follows the aforementioned Nasdaq CTA Artificial Intelligence and Robotics Index, which is one of the more compelling benchmarks tied to AI.
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ARK Autonomous Technology & Robotics ETF (ARKQ) The ARK Autonomous Technology & Robotics ETF (ARKQ) is an entrenched force in the AI ETF arena and it’s strutting its stuff this year as evidenced by a 24.36% gain. Robo Global Robotics and Automation Index ETF (ROBO) One of the godfathers of the AI ETF group, the Robo Global Robotics and Automation Index ETF (ROBO) is setting a nice pace to start 2023 with a gain of nearly 18%. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) follows the aforementioned Nasdaq CTA Artificial Intelligence and Robotics Index, which is one of the more compelling benchmarks tied to AI.
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ARK Autonomous Technology & Robotics ETF (ARKQ) The ARK Autonomous Technology & Robotics ETF (ARKQ) is an entrenched force in the AI ETF arena and it’s strutting its stuff this year as evidenced by a 24.36% gain. The $1.38 billion ETF turns 10 years old in October and “invests in global companies that are driving transformative innovations in robotics, automation and artificial intelligence (RAAI), including companies that create technology to enable truly intelligent systems that can sense, process and act, and companies that apply those technologies to deliver RAAI-enabled products—including robots—to businesses and consumers,” according to the issuer. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) follows the aforementioned Nasdaq CTA Artificial Intelligence and Robotics Index, which is one of the more compelling benchmarks tied to AI.
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2023-02-06 00:00:00 UTC
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Best Stocks To Invest In 2023? 2 Wheat Stocks To Know
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Wheat is a type of cereal grain that is widely cultivated and consumed around the world. It is a staple food for a large portion of the global population and is used in a variety of food products, including bread, pasta, and cereal. The demand for wheat is consistently high, making it a crucial commodity in the agriculture sector.
Investing in wheat stocks can provide investors with exposure to the performance of the global wheat market. Wheat companies, such as grain traders, millers, and farmers, can benefit from rising demand and prices for wheat. Additionally, companies specialize in the production and distribution of wheat-based products. For example, bread and pasta can also benefit from a growing demand for these products.
However, it is important to note that investing in wheat stocks can also come with some risks. Weather conditions, such as drought and excess rainfall, can greatly impact crop yields and the supply of wheat. In addition, changes in government policies, trade restrictions, and shifts in consumer preferences can also impact the demand for wheat. Which in turn, can impact the performance of wheat stocks. As with any investment, it is important to carefully consider these risks and conduct thorough research before investing in wheat stocks. Considering this, let’s take a look at two wheat stocks for your 2023 stock market watchlist.
Wheat Stocks To Watch Today
Deere & Company (NYSE: DE)
Archer-Daniels-Midland Company (NYSE: ADM)
1. Deere & Company (DE Stock)
First up, Deere & Company (DE), also known as John Deere. In brief, the company is a global agriculture and construction equipment manufacturer. The company’s portfolio of products includes tractors, planting equipment, and other machinery for large-scale farming operations.
DE Recent Stock News
At the beginning of this month, Deere & Company released its 2022 Sustainability Report highlighting its progress in delivering sustainable solutions for its customers, employees, dealers, suppliers, shareholders, and support communities. The report outlines the company’s progress towards its Leap Ambitions, focused on making the company and its customers more efficient, profitable, and sustainable.
In detail, Deere achieved a 29% reduction in operational greenhouse gas emissions and increased its waste recycling to 84%. The company is investing in alternative power solutions, such as electrification and biofuels, and has committed to science-based greenhouse gas reduction targets, as part of its goal to reduce its environmental impact.
DE Stock Chart
Over the last six months of trading action, shares of DE stock are up 19.50%. Meanwhile, as of Monday’s mid-morning trading action, DE stock is trading higher by 1.11% on the day, trading at $410.26 a share.
Source: TD Ameritrade TOS
[Read More] What Stocks To Buy Today? 3 AI Stocks To Know
2. Archer-Daniels-Midland Company (ADM Stock)
Next, Archer-Daniels-Midland Company, or ADM, is a global agricultural processing company that focuses on the production of food, feed, and industrial products. With a vast network of processing plants and storage facilities around the world, ADM is a large player in the global agribusiness industry.
ADM Recent Stock News
Late last month, Archer-Daniels-Midland reported its fourth-quarter 2022 financial results. Diving in, the company announced earnings of $1.93 per share and revenue of $26.2 billion. The company exceeded expectations, with the consensus earnings estimate being $1.64 per share and revenue of $25.3 billion. ADM experienced a 13.6% increase in revenue growth versus the same period a year prior.
Meanwhile, Chairman and CEO Juan Luciano commented, “ADM delivered another very strong quarter to complete an outstanding year, and the strategic work we have done throughout 2022 has positioned us well for 2023 and beyond.“
ADM Stock Chart
Year-to-date, ADM stock is trading lower so far by 7.96%. Furthermore, as of Monday’s mid-morning trading session, shares of ADM stock are trading modestly higher on the day by 0.30% at $82.52 a share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: TD Ameritrade TOS If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. Wheat is a type of cereal grain that is widely cultivated and consumed around the world. The demand for wheat is consistently high, making it a crucial commodity in the agriculture sector.
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Wheat Stocks To Watch Today Deere & Company (NYSE: DE) Archer-Daniels-Midland Company (NYSE: ADM) 1. Meanwhile, as of Monday’s mid-morning trading action, DE stock is trading higher by 1.11% on the day, trading at $410.26 a share. Wheat is a type of cereal grain that is widely cultivated and consumed around the world.
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Wheat Stocks To Watch Today Deere & Company (NYSE: DE) Archer-Daniels-Midland Company (NYSE: ADM) 1. Deere & Company (DE Stock) First up, Deere & Company (DE), also known as John Deere. Wheat is a type of cereal grain that is widely cultivated and consumed around the world.
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DE Stock Chart Over the last six months of trading action, shares of DE stock are up 19.50%. Furthermore, as of Monday’s mid-morning trading session, shares of ADM stock are trading modestly higher on the day by 0.30% at $82.52 a share. Wheat is a type of cereal grain that is widely cultivated and consumed around the world.
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2023-02-06 00:00:00 UTC
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How to Find Strong Industrial Products Stocks Slated for Positive Earnings Surprises
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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Deere?
The final step today is to look at a stock that meets our ESP qualifications. Deere (DE) earns a #2 (Buy) 11 days from its next quarterly earnings release on February 17, 2023, and its Most Accurate Estimate comes in at $5.64 a share.
Deere's Earnings ESP sits at +2.3%, which, as explained above, is calculated by taking the percentage difference between the $5.64 Most Accurate Estimate and the Zacks Consensus Estimate of $5.51. DE is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DE is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Eaton (ETN) as well.
Eaton, which is readying to report earnings on February 8, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.06 a share, and ETN is two days out from its next earnings report.
Eaton's Earnings ESP figure currently stands at +0.55% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.04.
DE and ETN's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Deere & Company (DE) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Eaton (ETN) as well. And out of all of the metrics and results to consider, earnings is one of the most important. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report To read this article on Zacks.com click here. And out of all of the metrics and results to consider, earnings is one of the most important. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report To read this article on Zacks.com click here. And out of all of the metrics and results to consider, earnings is one of the most important. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
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Deere (DE) earns a #2 (Buy) 11 days from its next quarterly earnings release on February 17, 2023, and its Most Accurate Estimate comes in at $5.64 a share. And out of all of the metrics and results to consider, earnings is one of the most important. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
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2023-02-05 00:00:00 UTC
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4 Stocks with Sales Growth for Solid Returns in 2023
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After a highly disappointing 2022, this year has started on a solid note. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green. But to think the macroeconomic concerns have faded is wrong. While the recent economic data point to the effectiveness of the Federal Reserve’s ultra-aggressive monetary tightening, we are still not out of the woods. The central bank is expected to keep interest rates high till inflation comes down reasonably.
This has made investors wary about entering the stock market, as higher rates will likely lead to a recession/economic slowdown in 2023. Hence, a conventional stock-picking strategy is the need of the hour. One such way is selecting stocks with steady sales growth. In this regard, stocks like Deere & Company DE, Rockwell Automation, Inc. ROK, Cboe Global Markets, Inc. CBOE and Alaska Air Group, Inc. ALK are worth considering.
While evaluating any company, revenues are often more scrutinized than earnings. This is because investors want to make sure that a business has the capability of generating more sales over time to cater to an expanding customer base. Steady or declining sales growth reflects obstacles at the company. Stagnant companies may generate profit in the near term but do not ensure enough growth to attract new investors.
Without robust revenue growth, bottom-line improvement may not be sustainable. While a company can show earnings strength by lowering costs, continued bottom-line expansion usually requires strong sales growth.
Yet, sales growth alone doesn’t show much about a company’s prospects. Hence, taking into account a company’s cash position along with its sales number can be a practical investment strategy. Substantial cash in hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments.
Selecting the Potential Winning Stocks
To shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.
P/S Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.
Operating Margin (average last five years) greater than 5%: Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs — an optimal situation.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that the company is spending wisely and is in all likelihood profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform, irrespective of the market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are five of the 16 stocks that qualified the screening:
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery under the iconic John Deere brand name. DE is currently the world leader in precision agriculture and remains focused on revolutionizing agriculture with technology.
Deere’s expected sales growth rate for 2023 is 13.5%. The stock carries a Zacks Rank #2 at present.
Rockwell Automation, based in Milwaukee, WI, provides industrial automation and information solutions worldwide. ROK has a wide network spanning more than 100 countries.
Rockwell Automation’s expected sales growth rate for fiscal 2023 is 10.9%. The stock currently carries a Zacks Rank #2.
Chicago-based Cboe is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. CBOE offers trading across a diverse range of products in multiple asset classes and geographies.
Cboe’s sales are expected to rise 4.4% in 2023. The stock carries a Zacks Rank #2 at present.
Alaska Air, based in Seattle, WA, serves more than 120 cities across North America. ALK’s mainline operating fleet includes 177 B737 jet aircraft and 40 Airbus A320 family jets.
Alaska Air’s expected sales growth for 2023 is 9.8%. The company, at present, carries a Zacks Rank #2.
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The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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Deere & Company (DE) : Free Stock Analysis Report
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green. But to think the macroeconomic concerns have faded is wrong. While the recent economic data point to the effectiveness of the Federal Reserve’s ultra-aggressive monetary tightening, we are still not out of the woods.
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In this regard, stocks like Deere & Company DE, Rockwell Automation, Inc. ROK, Cboe Global Markets, Inc. CBOE and Alaska Air Group, Inc. ALK are worth considering. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green.
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In this regard, stocks like Deere & Company DE, Rockwell Automation, Inc. ROK, Cboe Global Markets, Inc. CBOE and Alaska Air Group, Inc. ALK are worth considering. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green.
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Deere’s expected sales growth rate for 2023 is 13.5%. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green. But to think the macroeconomic concerns have faded is wrong.
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2023-02-03 00:00:00 UTC
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Sealed Air (SEE) to Report Q4 Earnings: What's in Store?
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Sealed Air Corporation SEE is scheduled to report fourth-quarter 2022 results on Feb 09, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for the fourth-quarter revenues is pegged at $1.46 billion, suggesting a fall of 4.7% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings is pinned at 98 cents per share, indicating a year-over-year decline of 12.5%.
Q3 Performance
Sealed Air’s third-quarter 2022 earnings increased year over year, while sales remained flat. Earnings beat the Zacks Consensus Estimate, whereas revenues missed the same. The company has a trailing four-quarter earnings surprise of 7.7%, on average.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Sealed Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: Sealed Air has an Earnings ESP of -1.13%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Note
Sealed Air witnessed a 7% year-over-year overall volume decline in the third quarter of 2022. This was mainly due to muted customer spending amid the ongoing inflationary pressure. This trend is expected to have continued through the fourth quarter and its impacts are likely to get reflected in the company’s results in the quarter.
However, the company’s fourth-quarter performance is likely to have gained from the sustained demand for packaging of food, beverage and healthcare products, and e-commerce activities. Around 63% of the company’s revenues are generated from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute nearly 11%.
In December 2018, Sealed Air had set forth a reformation plan called Reinvent SEE Strategy, along with a fresh restructuring program to boost growth and earnings. The strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer service enhancements. The capabilities, operational disciplines and governance processes established through the Reinvent SEE business transformation are embedded in the company’s ongoing productivity improvement system, SEE Operating Engine.
Savings from these initiatives have been aiding the company in delivering sales growth and productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the December-ended quarter.
However, SEE has been encountering supply-chain disruptions, higher raw material costs and elevated freight costs associated with the sourcing and movement of raw materials due to overall tight market conditions. These factors are likely to have impacted its margin performance in the to-be-reported quarter. The company has been increasing its R&D investments in innovation and automation, which are anticipated to have weighed on its margins.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s fourth-quarter net sales is pegged at $883 million, suggesting growth of 0.7% from the prior-year period’s reported figure. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $197 million, indicating a year-over-year decline of 3.4%. Lower volumes, owing to food retail market declines across the Americas and EMEA regions, and the adverse impacts of prior supply disruptions are expected to have hurt its performance.
The Zacks Consensus Estimate for the Protective Packaging segment’s fourth-quarter net sales is pegged at $574 million, indicating a year-over-year fall of 12.4%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is pinned at $107 million, suggesting a year-over-year decline of 15%.
The segment’s medical and life sciences portfolio has been gaining from strong demand for medical supplies, pharmaceuticals and personal protective equipment, coupled with higher demand for temperature assurance packaging solutions. However, lower volume, driven by recessionary pressures in the industrial and fulfillment markets, and unfavorable currency translation are likely to have offset these tailwinds.
Price Performance
In the past year, shares of Sealed Air have declined 15.8% against the industry’s growth of 2.8%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Allegion plc ALLE has an Earnings ESP of +4.19% and currently sports a Zacks Rank #1. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $1.37 per share. This suggests year-over-year growth of 23.4%
The Zacks Consensus Estimate for ALLE’s quarterly revenues is pegged at $849 million, indicating year-over-year growth of 19.7%. ALLE has a trailing four-quarter earnings surprise of 8.8%, on average.
Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has been unchanged in the past 30 days and is pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
The Middleby Corporation MIDD currently has an Earnings ESP of +2.20% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $2.46 per share. This suggests year-over-year growth of 16.6%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, indicating growth of 16.8% from the prior-year quarter’s reported level.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
Sealed Air Corporation (SEE) : Free Stock Analysis Report
The Middleby Corporation (MIDD) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In December 2018, Sealed Air had set forth a reformation plan called Reinvent SEE Strategy, along with a fresh restructuring program to boost growth and earnings. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $197 million, indicating a year-over-year decline of 3.4%. Lower volumes, owing to food retail market declines across the Americas and EMEA regions, and the adverse impacts of prior supply disruptions are expected to have hurt its performance.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Sealed Air Corporation (SEE) : Free Stock Analysis Report The Middleby Corporation (MIDD) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for quarterly earnings is pinned at 98 cents per share, indicating a year-over-year decline of 12.5%. Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote What the Zacks Model Indicates Our proven model doesn’t conclusively predict an earnings beat for Sealed Air this time around.
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Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote What the Zacks Model Indicates Our proven model doesn’t conclusively predict an earnings beat for Sealed Air this time around. Image Source: Zacks Investment Research Stocks Poised to Beat Earnings Estimates Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases: Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Sealed Air Corporation (SEE) : Free Stock Analysis Report The Middleby Corporation (MIDD) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This is expected to have driven the operating margin performance in the December-ended quarter. Price Performance In the past year, shares of Sealed Air have declined 15.8% against the industry’s growth of 2.8%. The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level.
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2023-02-03 00:00:00 UTC
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Amcor (AMCR) to Report Q2 Earnings: What's in the Offing?
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Amcor Plc AMCR is scheduled to report second-quarter fiscal 2023 results on Feb 7, after the closing bell.
Q2 Estimates
The Zacks Consensus Estimate for the fiscal second-quarter revenues is pegged at $3.64 billion, indicating growth of 3.7% from the prior-year quarter’s figure. The consensus mark for quarterly earnings currently stands at 18 cents, in line with the prior-year quarter. The estimate has remained unchanged over the past 30 days.
Q1 Results
Amcor’s first quarter fiscal 2023 earnings were flat year over year despite higher revenues. While revenues beat the Zacks Consensus Estimate, earnings missed the same. The company has a trailing four-quarter negative earnings surprise of 0.07%, on average.
Amcor PLC Price and EPS Surprise
Amcor PLC price-eps-surprise | Amcor PLC Quote
Key Factors to Note
Amcor’s Rigid Packaging and Flexible Packaging segments had been performing well in the past few quarters through a combination of organic growth and disciplined cost control. The Flexibles segment witnessed growth in medical, condiments, liquid beverage and confectionary end markets.
In the Rigid packaging segment, hot-fill container volumes have been strong in the past few quarters in North America. In specialty containers, volume growth has been noted in healthcare, dairy and nutrition end markets. The segment has been seeing volume growth in isotonic, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Brand extensions and the introduction of new health and wellness-oriented products in PET containers have been supporting growth. However, the current inflationary scenario has weighed on consumer spending lately and might have thwarted volume levels for Amcor. This will likely reflect in its second-quarter results.
Amcor’s acquisition of Bemis Company in June 2019 expanded its global footprint, opened up new attractive end markets and customers for the company’s products, and greater economies of scale, thus driving efficiencies and higher margins. The integration has been essentially completed and the buyout is expected to expand the Flexible segment’s margins.
However, this benefit might have been offset by higher raw material, chemical labor and transportation costs. The company has been witnessing raw material price volatility due to supply shortages of certain resins and raw materials, which might have marred the to-be-reported quarter’s margin’s performance. Also, higher interest expenses are also expected to hurt margins.
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Amcor this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Amcor is 0.00%.
Zacks Rank: Amcor currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Image Source: Zacks Investment Research
Over the past year, shares of Amcor have gained 3.7% against the industry’s 2.8% rise.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Allegion plc ALLE currently has an Earnings ESP of +4.19% and a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $1.37 per share. This suggests year-over-year growth of 23.4%.
The Zacks Consensus Estimate for ALLE’s quarterly revenues is pegged at $849 million, indicating year-over-year growth of 19.7%. ALLE has a trailing four-quarter earnings surprise of 8.8%, on average.
Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has remained constant in the past 30 days and is currently pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
The Middleby Corporation MIDD currently has an Earnings ESP of +2.20% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has remained unchanged in the past 30 days and is pegged at $2.46 per share. This suggests year-over-year growth of 16.6%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, indicating growth of 16.8% from the prior-year quarter’s reported level.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
The Middleby Corporation (MIDD) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
Amcor PLC (AMCR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The segment has been seeing volume growth in isotonic, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has remained constant in the past 30 days and is currently pegged at $5.51 per share. Q1 Results Amcor’s first quarter fiscal 2023 earnings were flat year over year despite higher revenues.
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The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report The Middleby Corporation (MIDD) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. Q1 Results Amcor’s first quarter fiscal 2023 earnings were flat year over year despite higher revenues.
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The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report The Middleby Corporation (MIDD) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. Q1 Results Amcor’s first quarter fiscal 2023 earnings were flat year over year despite higher revenues.
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Q1 Results Amcor’s first quarter fiscal 2023 earnings were flat year over year despite higher revenues. The segment has been seeing volume growth in isotonic, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Amcor’s acquisition of Bemis Company in June 2019 expanded its global footprint, opened up new attractive end markets and customers for the company’s products, and greater economies of scale, thus driving efficiencies and higher margins.
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2023-02-03 00:00:00 UTC
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4 Stocks With Sales Growth for Guaranteed Returns in 2023
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https://www.nasdaq.com/articles/4-stocks-with-sales-growth-for-guaranteed-returns-in-2023
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After a highly disappointing 2022, this year has started on a solid note. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green. But to think the macroeconomic concerns have faded is wrong. While the recent economic data point to the effectiveness of the Federal Reserve’s ultra-aggressive monetary tightening, we are still not out of the woods. The central bank is expected to keep interest rates high till inflation comes down reasonably.
This has made investors wary about entering the stock market, as higher rates will likely lead to a recession/economic slowdown in 2023. Hence, a conventional stock-picking strategy is the need of the hour. One such way is selecting stocks with steady sales growth. In this regard, stocks like Deere & Company DE, Rockwell Automation, Inc. ROK, Cboe Global Markets, Inc. CBOE and Alaska Air Group, Inc. ALK are worth considering.
While evaluating any company, revenues are often more scrutinized than earnings. This is because investors want to make sure that a business has the capability of generating more sales over time to cater to an expanding customer base. Steady or declining sales growth reflects obstacles at the company. Stagnant companies may generate profit in the near term but do not ensure enough growth to attract new investors.
Without robust revenue growth, bottom-line improvement may not be sustainable. While a company can show earnings strength by lowering costs, continued bottom-line expansion usually requires strong sales growth.
Yet, sales growth alone doesn’t show much about a company’s prospects. Hence, taking into account a company’s cash position along with its sales number can be a practical investment strategy. Substantial cash in hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments.
Selecting the Potential Winning Stocks
To shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.
P/S Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.
Operating Margin (average last five years) greater than 5%: Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs — an optimal situation.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that the company is spending wisely and is in all likelihood profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform, irrespective of the market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are five of the 16 stocks that qualified the screening:
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery under the iconic John Deere brand name. DE is currently the world leader in precision agriculture and remains focused on revolutionizing agriculture with technology.
Deere’s expected sales growth rate for 2023 is 13.5%. The stock carries a Zacks Rank #2 at present.
Rockwell Automation, based in Milwaukee, WI, provides industrial automation and information solutions worldwide. ROK has a wide network spanning more than 100 countries.
Rockwell Automation’s expected sales growth rate for fiscal 2023 is 10.9%. The stock currently carries a Zacks Rank #2.
Chicago-based Cboe is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. CBOE offers trading across a diverse range of products in multiple asset classes and geographies.
Cboe’s sales are expected to rise 4.4% in 2023. The stock carries a Zacks Rank #2 at present.
Alaska Air, based in Seattle, WA, serves more than 120 cities across North America. ALK’s mainline operating fleet includes 177 B737 jet aircraft and 40 Airbus A320 family jets.
Alaska Air’s expected sales growth for 2023 is 9.8%. The company, at present, carries a Zacks Rank #2.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green. But to think the macroeconomic concerns have faded is wrong. While the recent economic data point to the effectiveness of the Federal Reserve’s ultra-aggressive monetary tightening, we are still not out of the woods.
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In this regard, stocks like Deere & Company DE, Rockwell Automation, Inc. ROK, Cboe Global Markets, Inc. CBOE and Alaska Air Group, Inc. ALK are worth considering. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green.
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In this regard, stocks like Deere & Company DE, Rockwell Automation, Inc. ROK, Cboe Global Markets, Inc. CBOE and Alaska Air Group, Inc. ALK are worth considering. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green.
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Deere’s expected sales growth rate for 2023 is 13.5%. All three major indexes – the Dow, the S&P 500 and the Nasdaq Composite – ended the first month of 2023 in green. But to think the macroeconomic concerns have faded is wrong.
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2023-02-03 00:00:00 UTC
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10 Best Dividend Stocks To Buy in February
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Verizon (NYSE: VZ), AT&T (NYSE: T), and Apple (NASDAQ: AAPL) are on the list of the best dividend stocks to buy in February. Tune in to learn about the other stocks generating passive income.
*Stock prices used were the afternoon prices of Jan. 31, 2023. The video was published on Feb. 2, 2023.
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Parkev Tatevosian, CFA has positions in 3M, Apple, and Starbucks. The Motley Fool has positions in and recommends Apple, Domino's Pizza, Home Depot, Microsoft, and Starbucks. The Motley Fool recommends 3M, Deere, Lowe's Companies, and Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $100 calls on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Domino's Pizza, Home Depot, Microsoft, and Starbucks. Verizon (NYSE: VZ), AT&T (NYSE: T), and Apple (NASDAQ: AAPL) are on the list of the best dividend stocks to buy in February.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Domino's Pizza, Home Depot, Microsoft, and Starbucks. The Motley Fool recommends 3M, Deere, Lowe's Companies, and Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $100 calls on Starbucks, and short March 2023 $130 calls on Apple.
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The Motley Fool recommends 3M, Deere, Lowe's Companies, and Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple, short April 2023 $100 calls on Starbucks, and short March 2023 $130 calls on Apple. Verizon (NYSE: VZ), AT&T (NYSE: T), and Apple (NASDAQ: AAPL) are on the list of the best dividend stocks to buy in February. The video was published on Feb. 2, 2023.
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Verizon (NYSE: VZ), AT&T (NYSE: T), and Apple (NASDAQ: AAPL) are on the list of the best dividend stocks to buy in February. The video was published on Feb. 2, 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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720827.0
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2023-02-02 00:00:00 UTC
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Grainger (GWW) Earnings & Revenues Top Estimates, Up Y/Y
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https://www.nasdaq.com/articles/grainger-gww-earnings-revenues-top-estimates-up-y-y
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W.W. Grainger, Inc. GWW reported adjusted earnings per share (EPS) of $7.14 in fourth-quarter 2022, beating the Zacks Consensus Estimate of $6.97 by a margin of 2%. The bottom line improved 31% year over year, aided by margin improvement in both High-Touch Solutions N.A. and Endless Assortment segments and strong operating performance.
Including one-time items, EPS was $7.54 in the quarter under review compared with $5.44 in the last year’s quarter.
Grainger’s quarterly revenues rose 13% year over year to $3,802 million. The top line surpassed the Zacks Consensus Estimate of $3,762 million. Daily sales increased 17.2% from the prior-year quarter.
Sales were up 16.8% (or 17.2% on a daily, constant currency basis) in the High-Touch Solutions N.A. segment compared to the last year’s quarter due to strong price realization and volume growth. In the Endless Assortment segment, sales were up 0.9% year over year (18.2% on a daily, constant currency basis) driven by strong new customer acquisition and repeat business for the segment, as well as enterprise customer growth at MonotaRO.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. Quote
Operational Update
The cost of sales climbed 9% year over year to $2,296 million. The gross profit rose 20% year over year to $1,506 million. The gross margin expanded to 39.6% in the quarter compared with the prior-year period’s 37.3% aided by improved margin performances in both segments.
Selling, general and administrative expenses rose 15% year over year to $962 million. Grainger’s adjusted operating income in the quarter was up 25.5% year on year to $523 million. The adjusted operating margin came in at 13.8%, a 135 basis point expansion from the prior-year quarter.
Financial Position
The company had cash and cash equivalents of $325 million at the end of 2022, up from $241 million at 2021-end. Cash flow from operating activities was $1,333 million in 2022 compared with $937 million in the last year.
Long-term debt was $2,284 million as of Dec 31, 2022, compared with $2,362 million as of Dec 31, 2021. Grainger returned $949 million to shareholders through dividends and share buybacks through 2022. Capital expenditures for the year were $256 million.
2022 Performance
Adjusted EPS surged 49.5% year over year to $29.66 in 2022, surpassing the Zacks Consensus Estimate of $29.47. Including one-time items, EPS was $30.06 in 2022 compared with $19.84 in 2021.
Revenues improved 17% year over year to $15.23 billion. The top line surpassed the Zacks Consensus Estimate of $15.19 billion. Sales were up 19.3% on a daily, constant currency basis.
2023 Outlook
Grainger expects net sales for the current year between $16.2 billion and $16.8 billion. Sales growth guidance is at 6.6% - 10.6%. Daily sales growth is envisioned in the range of 7% to 12%. Earnings per share guidance are expected in the band of $32.00 - $34.50.
Price Performance
Image Source: Zacks Investment Research
In the past year, Grainger’s shares have gained 19.3% against the industry’s 7.6% decline.
Zacks Rank and Stocks to Consider
Grainger currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Tenaris TS, and Deere & Company DE. KNBE and TS sport a Zacks Rank of 1 at present, and DE has a Zacks Rank of 2.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 9% in the past 60 days. KNBE’s shares have gained 4% in a year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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
Deere & Company (DE) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. The bottom line improved 31% year over year, aided by margin improvement in both High-Touch Solutions N.A.
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The bottom line improved 31% year over year, aided by margin improvement in both High-Touch Solutions N.A. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. Including one-time items, EPS was $7.54 in the quarter under review compared with $5.44 in the last year’s quarter.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The bottom line improved 31% year over year, aided by margin improvement in both High-Touch Solutions N.A. Including one-time items, EPS was $7.54 in the quarter under review compared with $5.44 in the last year’s quarter.
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The bottom line improved 31% year over year, aided by margin improvement in both High-Touch Solutions N.A. Including one-time items, EPS was $7.54 in the quarter under review compared with $5.44 in the last year’s quarter. The gross margin expanded to 39.6% in the quarter compared with the prior-year period’s 37.3% aided by improved margin performances in both segments.
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2023-02-02 00:00:00 UTC
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Avery Dennison (AVY) Q4 Earnings Miss Estimates on Low Volumes
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https://www.nasdaq.com/articles/avery-dennison-avy-q4-earnings-miss-estimates-on-low-volumes
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Avery Dennison Corporation AVY delivered adjusted earnings of $1.65 per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of $2.10. The bottom line also marked a 23% decline year over year. Volume declines in the quarter due to significant inventory reductions by the customers resulted in weaker-than-expected results.
Including one-time items, the company reported earnings per share (EPS) of $1.51 compared with the year-ago quarter’s $2.19 per share.
Total revenues declined 7% year over year to $2.03 billion, missing the Zacks Consensus Estimate of $2.21 billion. Volumes were down double digits in Apparel, Materials Europe and Materials North America due to significant inventory destocking. Higher prices somewhat offset the impact.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote
The cost of sales in the quarter dipped 4.5% year over year to $1,526 million. The gross profit declined 14.5% year over year to $500 million.
Marketing, general and administrative expenses were $312 million compared with the $332 million incurred in the year-ago quarter. The adjusted operating profit was around $188 million compared with the prior-year quarter’s $253 million. The adjusted operating margin was 9.3%, a 230 basis point contraction from the year-ago quarter.
Segment Highlights
AVY has combined the Label and Graphic Materials segment and the Industrial and Healthcare Materials segment into the Materials Group. It has renamed the Retail Branding and Information Solutions segment as Solutions Group.
Revenues in the Materials Group segment declined 5.4% year over year to $1,441 million in the reported quarter. On an organic basis, sales were up 2.2%. On an organic basis, sales were up low-single digits in were up by Label Materials, Graphics and Reflective Solutions businesses and in the combined Performance Tapes and Medical businesses. The segment’s adjusted operating profit fell 18% year on year to $150 million.
Revenues in the Solutions Group were down 11.3% year over year to $585 million. On an organic basis, sales declined 7.7% and high-value category sales were up mid-single digits. Sales decreased in the high-teens in base solutions, as customers adjusted inventory levels. The segment’s adjusted operating income slumped 40% year over year to $53 million.
Financial Updates
The company returned $618 million in cash to shareholders through share repurchases and dividend payments in 2022 and also invested $40 million in acquisitions. AVY repurchased 2.2 million shares throughout the year.
Avery Dennison ended 2022 with cash and cash equivalents of $167 million compared with $163 million at the end of the prior year. The company’s long-term debt was $2,504 million at the end of 2022, down from $2,786 million at the end of 2021. The company’s net debt to adjusted EBITDA ratio was 2.2.
AVY realized approximately $26 million in pre-tax savings from restructuring (net of transition costs) in 2022. The company also incurred pre-tax restructuring charges of around $8 million. For 2023, the company projects incremental savings of around $45 million from its restructuring actions.
2022 Performance
Adjusted EPS increased 3% year over year to $9.15 in 2022, but missed the Zacks Consensus Estimate of $9.60. Including one-time items, EPS was $9.21 in 2022, up 4% from the figure of $8.83 reported in 2021.
Total revenues rose 7% year over year to $9.04 billion. The top line figure lagged the Zacks Consensus Estimate of $9.22 billion.
Guidance for 2023
Avery Dennison expects adjusted EPS for 2023 in the band of $9.15 to $9.55. The midpoint of the range indicates year-over-year growth of 2%. AVY has projected organic sales growth of 1% to 5% for the year and reported sales growth at 0%-4%. An unfavorable currency impact is anticipated at 1% for the year. The company expects inventory destocking to continue in the first quarter of 2023.
Price Performance
Image Source: Zacks Investment Research
Shares of AVY have declined 0.7% in the past year compared with the industry’s 1.9% fall.
Zacks Rank and Stocks to Consider
Avery Dennison currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Tenaris TS, and Deere & Company DE. KNBE and TS sport a Zacks Rank #1 (Strong Buy) at present and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 9% in the past 60 days. KNBE’s shares have gained 4% in a year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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
Deere & Company (DE) : Free Stock Analysis Report
Avery Dennison Corporation (AVY) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Avery Dennison Corporation AVY delivered adjusted earnings of $1.65 per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of $2.10. Image Source: Zacks Investment Research Shares of AVY have declined 0.7% in the past year compared with the industry’s 1.9% fall. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year.
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Total revenues declined 7% year over year to $2.03 billion, missing the Zacks Consensus Estimate of $2.21 billion. Avery Dennison Corporation Price, Consensus and EPS Surprise Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote The cost of sales in the quarter dipped 4.5% year over year to $1,526 million. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Avery Dennison Corporation (AVY) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Avery Dennison Corporation Price, Consensus and EPS Surprise Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote The cost of sales in the quarter dipped 4.5% year over year to $1,526 million. Revenues in the Materials Group segment declined 5.4% year over year to $1,441 million in the reported quarter. Avery Dennison Corporation AVY delivered adjusted earnings of $1.65 per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of $2.10.
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Revenues in the Materials Group segment declined 5.4% year over year to $1,441 million in the reported quarter. Avery Dennison Corporation AVY delivered adjusted earnings of $1.65 per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of $2.10. The bottom line also marked a 23% decline year over year.
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2023-02-02 00:00:00 UTC
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Zacks.com featured highlights Archer-Daniels-Midland, Agilent Technologies, Republic Services, Deere and Cardinal Health
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-archer-daniels-midland-agilent-technologies-republic
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For Immediate Release
Chicago, IL – February 2, 2023 – Stocks in this week’s article are Archer-Daniels-Midland Co. ADM, Agilent Technologies A, Republic Services Inc. RSG, Deere & Co. DE and Cardinal Health Inc. CAH.
5 Top Dividend Growth Stocks to Buy in the Month of Love
Dividend investing has remained the hottest segment of the stock market over the past year. Though U.S. stocks have resumed their strength this year on easing inflation and the Fed’s slower rate hike bets, recession worries persist. In such a scenario, dividends are major sources of consistent income for investors though they do not offer dramatic price appreciation. Stocks backed by regular dividends can reduce the volatility of a portfolio and tend to outperform in a choppy market.
In particular, focusing on the growth level in this strategy leads to higher returns. Honing in on stocks with a history of dividend growth leads to a healthy portfolio, with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.
We have selected five dividend growth stocks — Archer-Daniels-Midland Co., Agilent Technologies, Republic Services Inc., Deere & Co. and Cardinal Health Inc. — that investors would love to buy this month.
Why is Dividend Growth Better?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
Here are five of the 21 stocks that fit the bill:
Illinois-based Archer-Daniels is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. ADM delivered an average earnings surprise of 28.07%.
Archer-Daniels has a Zacks Rank #1 and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
California-based Agilent Technologies is an original equipment manufacturer of a broad-based portfolio of test and measurement products serving multiple end markets. The company has an estimated earnings growth rate of 8% for the fiscal year (ending October 2023) and delivered an average earnings surprise of 6.74% for the past four quarters.
Currently, A has a Zacks Rank #2 and a Growth Score of B.
Arizona-based Republic Services is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States. It has an estimated earnings growth rate of 5.4%.
Republic Services has a Zacks Rank #2 and a Growth Score of B.
Illinois-based Deere & Company is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. The stock saw a solid earnings estimate revision of 3 cents over the past 30 days for the fiscal year (ending October 2023) and has an estimated earnings growth rate of 20.3%.
Deere & Company carries a Zacks Rank #2 and a Growth Score of A.
Ohio-based Cardinal Health is a nation-wide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company has an estimated earnings growth rate of 4.7% for the fiscal year (ending June 2023).
Cardinal Health has a Zacks Rank #2 and a Growth Score of B.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2047508/5-top-dividend-growth-stocks-to-buy-in-the-month-of-love
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 >>.
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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 Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – February 2, 2023 – Stocks in this week’s article are Archer-Daniels-Midland Co. ADM, Agilent Technologies A, Republic Services Inc. RSG, Deere & Co. DE and Cardinal Health Inc. CAH. We have selected five dividend growth stocks — Archer-Daniels-Midland Co., Agilent Technologies, Republic Services Inc., Deere & Co. and Cardinal Health Inc. — that investors would love to buy this month. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics.
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For Immediate Release Chicago, IL – February 2, 2023 – Stocks in this week’s article are Archer-Daniels-Midland Co. ADM, Agilent Technologies A, Republic Services Inc. RSG, Deere & Co. DE and Cardinal Health Inc. CAH. We have selected five dividend growth stocks — Archer-Daniels-Midland Co., Agilent Technologies, Republic Services Inc., Deere & Co. and Cardinal Health Inc. — that investors would love to buy this month. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Republic Services, Inc. (RSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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5 Top Dividend Growth Stocks to Buy in the Month of Love Dividend investing has remained the hottest segment of the stock market over the past year. Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Republic Services, Inc. (RSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2047508/5-top-dividend-growth-stocks-to-buy-in-the-month-of-love 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. For Immediate Release Chicago, IL – February 2, 2023 – Stocks in this week’s article are Archer-Daniels-Midland Co. ADM, Agilent Technologies A, Republic Services Inc. RSG, Deere & Co. DE and Cardinal Health Inc. CAH. 5 Top Dividend Growth Stocks to Buy in the Month of Love Dividend investing has remained the hottest segment of the stock market over the past year.
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2023-02-01 00:00:00 UTC
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Deere (DE) Gains But Lags Market: What You Should Know
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https://www.nasdaq.com/articles/deere-de-gains-but-lags-market%3A-what-you-should-know-8
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In the latest trading session, Deere (DE) closed at $426.99, marking a +0.98% move from the previous day. This change lagged the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 0.34% over the past month. This has lagged the Industrial Products sector's gain of 6.58% and the S&P 500's gain of 6.27% in that time.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 17, 2023. In that report, analysts expect Deere to post earnings of $7.03 per share. This would mark year-over-year growth of 140.75%. Meanwhile, our latest consensus estimate is calling for revenue of $11.44 billion, up 34.12% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $28.01 per share and revenue of $54.38 billion. These results would represent year-over-year changes of +20.32% and +13.49%, respectively.
Investors might also notice recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-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. 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 0.09% higher. Deere currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 15.1. This valuation marks a premium compared to its industry's average Forward P/E of 14.21.
We can also see that DE currently has a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. In the latest trading session, Deere (DE) closed at $426.99, marking a +0.98% move from the previous day.
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DE's full-year Zacks Consensus Estimates are calling for earnings of $28.01 per share and revenue of $54.38 billion. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Deere (DE) closed at $426.99, marking a +0.98% move from the previous day.
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DE's full-year Zacks Consensus Estimates are calling for earnings of $28.01 per share and revenue of $54.38 billion. 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. In the latest trading session, Deere (DE) closed at $426.99, marking a +0.98% move from the previous day.
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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. In the latest trading session, Deere (DE) closed at $426.99, marking a +0.98% move from the previous day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.
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720831.0
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2023-02-01 00:00:00 UTC
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O-I Glass (OI) Q4 Earnings & Revenues Beat Estimates, Rise Y/Y
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https://www.nasdaq.com/articles/o-i-glass-oi-q4-earnings-revenues-beat-estimates-rise-y-y
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O-I Glass, Inc. OI reported fourth-quarter 2022 adjusted earnings per share of 38 cents, which beat the Zacks Consensus Estimate of 32 cents. The bottom line was higher than the company’s most recent guidance of 28-33 cents per share. On a year-over-year basis, earnings increased 6%.
Including one-time items, O-I Glass reported EPS of 8 cents for the quarter compared with 27 cents in the prior-year quarter.
Operational Update
Revenues were $1.69 billion for the quarter under review, up 6.6% from the year-ago quarter’s level. The top line surpassed the Zacks Consensus Estimate of $1.57 billion. The unfavorable impacts of foreign currency translation and lower sales volumes were somewhat offset by higher average selling prices.
Cost of sales was up 6.2% year over year to $1,434 million. Gross profit increased 8.8% year over year to $259 million. The gross margin was 15.3% for the quarter under review compared with 15% in the prior-year quarter. Selling and administrative expenses were up 16.7% year over year to $126 million.
Adjusted segment operating profit amounted to $206 million for the reported quarter, up from the prior-year period’s $177 million. The segment operating margin was 12.2% compared with the prior-year quarter’s 11.1%.
O-I Glass, Inc. Price, Consensus and EPS Surprise
O-I Glass, Inc. price-consensus-eps-surprise-chart | O-I Glass, Inc. Quote
Segmental Performance
Net sales in the Americas segment rose 3.4% year over year to $937 million for the fourth quarter. Operating profit was down 16.2% year over year to $83 million.
Net sales in the Europe segment were $724 million for the reported quarter, up 11.9% year over year. The segment’s operating profit rose 57.7% year over year to $123 million.
Financial Update
O-I Glass had cash and cash equivalents of $773 million at the end of Dec 31, 2022, up from the $725 million at 2021-end. The company generated $378 million of cash in operating activities in the quarter under review compared with the prior-year quarter’s inflow of $231 million.
Its long-term debt was $4.37 billion as of Dec 31, 2022, down from $4.75 billion as of Dec 31, 2021.
2022 Performance
For 2022, O-I Glass’ adjusted earnings were $2.30, which surpassed the Zacks Consensus Estimate of $2.25. It also marked a 26% improvement from the last year, driven by solid net price realization, continued sales volume growth and favorable operating performance. OI expected adjusted earnings per share between $2.20 and $2.25 for 2022.
Including one-time items, the company’s earnings were $3.67 per share for fiscal 2022 compared with 88 cents in fiscal 2021.
Total revenues advanced 8% year over year to $6.9 billion, surpassing the Zacks Consensus Estimate of $6.73 billion.
Outlook
O-I Glass expects adjusted earnings of more than $2.50 per share. This compares favorably with adjusted earnings per share of $2.30 reported in 2022. Sales volume growth (in tons) is projected to be flat to up 1%. OI expects free cash flow in 2023 to be more than $150 million, while adjusted free cash flow is expected to be higher than $450 million.
For the first quarter of 2023, OI expects adjusted earnings between 80 cents and 85 cents per share, whereas it reported 56 cents per share in the prior-year quarter. Sales volume growth (in tons) is anticipated to be down in the low-single digits.
Price Performance
Shares of the company have improved 41.4% over the past year compared with the industry’s growth of 3.5%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
O-I Glass currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Tenaris TS, and Deere & Company DE. KNBE and TS flaunt a Zacks Rank #1 at present, and DE has a Zacks Rank #2 (Buy).
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 9% in the past 60 days. KNBE’s shares have gained 4% in a year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Operational Update Revenues were $1.69 billion for the quarter under review, up 6.6% from the year-ago quarter’s level. The gross margin was 15.3% for the quarter under review compared with 15% in the prior-year quarter.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Operational Update Revenues were $1.69 billion for the quarter under review, up 6.6% from the year-ago quarter’s level. The gross margin was 15.3% for the quarter under review compared with 15% in the prior-year quarter.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Operational Update Revenues were $1.69 billion for the quarter under review, up 6.6% from the year-ago quarter’s level. The gross margin was 15.3% for the quarter under review compared with 15% in the prior-year quarter.
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Image Source: Zacks Investment Research Zacks Rank & Other Stocks to Consider O-I Glass currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. Operational Update Revenues were $1.69 billion for the quarter under review, up 6.6% from the year-ago quarter’s level.
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2023-02-01 00:00:00 UTC
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5 Top Dividend Growth Stocks to Buy in the Month of Love
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Dividend investing has remained the hottest segment of the stock market over the past year. Though U.S. stocks have resumed their strength this year on easing inflation and the Fed’s slower rate hike bets, recession worries persist. In such a scenario, dividends are major sources of consistent income for investors though they do not offer dramatic price appreciation. Stocks backed by regular dividends can reduce the volatility of a portfolio and tend to outperform in a choppy market.
In particular, focusing on the growth level in this strategy leads to higher returns. Honing in on stocks with a history of dividend growth leads to a healthy portfolio, with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.
We have selected five dividend growth stocks — Archer-Daniels-Midland Company ADM, Agilent Technologies A, Republic Services Inc. RSG, Deere & Company DE and Cardinal Health Inc. CAH — that investors would love to buy this month.
Why is Dividend Growth Better?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 21.
Here are five of the 21 stocks that fit the bill:
Illinois-based Archer-Daniels is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. ADM delivered an average earnings surprise of 28.07%.
Archer-Daniels has a Zacks Rank #1 and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
California-based Agilent Technologies is an original equipment manufacturer of a broad-based portfolio of test and measurement products serving multiple end markets. The company has an estimated earnings growth rate of 8% for the fiscal year (ending October 2023) and delivered an average earnings surprise of 6.74% for the past four quarters.
Currently, A has a Zacks Rank #2 and a Growth Score of B.
Arizona-based Republic Services is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States. It has an estimated earnings growth rate of 5.4%.
Republic Services has a Zacks Rank #2 and a Growth Score of B.
Illinois-based Deere & Company is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. The stock saw a solid earnings estimate revision of 3 cents over the past 30 days for the fiscal year (ending October 2023) and has an estimated earnings growth rate of 20.3%.
Deere & Company carries a Zacks Rank #2 and a Growth Score of A.
Ohio-based Cardinal Health is a nation-wide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company has an estimated earnings growth rate of 4.7% for the fiscal year (ending June 2023).
Cardinal Health has a Zacks Rank #2 and a Growth Score of B.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Dividend investing has remained the hottest segment of the stock market over the past year. In such a scenario, dividends are major sources of consistent income for investors though they do not offer dramatic price appreciation.
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We have selected five dividend growth stocks — Archer-Daniels-Midland Company ADM, Agilent Technologies A, Republic Services Inc. RSG, Deere & Company DE and Cardinal Health Inc. CAH — that investors would love to buy this month. The company has an estimated earnings growth rate of 8% for the fiscal year (ending October 2023) and delivered an average earnings surprise of 6.74% for the past four quarters. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Republic Services, Inc. (RSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Republic Services, Inc. (RSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Why is Dividend Growth Better? 5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history. Dividend investing has remained the hottest segment of the stock market over the past year.
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2023-02-01 00:00:00 UTC
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FOCUS-Investors go back to basics with simpler self-driving vehicles
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By Nick Carey and Paul Lienert
COVENTRY, England, Feb 1 (Reuters) - Developing fully autonomous vehicles (AVs) that can go everywhere has proven harder and more expensive than expected, but investors are continuing to fund startups that target simpler self-driving vehicle solutions far removed from pedestrians and other vehicles operated by unpredictable humans.
British AV software company Oxbotica, Sweden's Einride, America's Outrider and British supplier Aurrigo International Plc AURR.L are among a number of companies drawing investor interest with more focused approaches, aimed at smaller, simpler customer segments - from mining vehicles to tractors or forklifts.
After watching robotaxi firms spend billions on technology that could still be many years away, investors are looking for startups that burn less cash and are preferably already generating revenue, said Kasper Sage, managing partner at BMW's BMWG.DE venture capital fund BMW iVentures, which led autonomous forklift company Fox Robotics' $20 million funding round in October.
"Full autonomy in every kind of environment is still years, if not decades out," Sage said. "You need to have a business case that works and you need to make the problem smaller."
Earlier promises made by robotaxi companies of operating fleets of vehicles by the early 2020s have fallen well short. When Ford Motor Co F.N and Volkswagen AG VOWG_p.DE pulled the plug on self-driving unit Argo AI in November, Ford CEO Jim Farley said a profitable robotaxi business was still many years away. Ford rival General Motors Co GM.N burned through nearly $2 billion last year at its robotaxi unit Cruise and said it anticipates spending even more in 2023.
The problem is that making robot cars that can drive more safely than people is immensely tough. This is because AV systems still lack humans' ability to predict and assess risk quickly, especially when encountering unexpected incidents.
When it became clear that the era of robotaxis was still distant, investors in 2021 shifted instead to self-driving truck companies that promised a faster route to market by hauling freight autonomously - arguing it would be easier to develop AVs to operate on highways at high speed without pedestrians.
But those startups have also struggled to deliver because a robot driving fast still cannot match the human brain.
AV truck technology firm Aurora AUR.O, for instance, has a market value of $2 billion, a fraction of the $12.5 billion when it went public in 2021 via a special-purpose acquisition company (SPAC).
KEEPING IT SIMPLE
Faced with the long-term conundrum that people and robots do not mix well, investors have gone back to basics, targeting less-complex, less cash-intensive forms of autonomy with a clearer path to payback, operating at lower speeds with little to no traffic.
BMW iVentures has also invested in AV truck technology firm Kodiak Robotics, which managing partner Sage said has adopted a simpler approach to areas like mapping.
In October, Kodiak won a $50 million contract to develop AVs for the U.S. Army.
"It helps that we're not spending a ton of money, like some folks have," said Kodiak CEO Don Burnette.
Overall venture investment in AV companies in the fourth quarter plunged 47% to $1.4 billion from a year earlier, according to PitchBook senior analyst Jonathan Geurkink.
But $500 million of that went to AV electric truck firm Einride, which is working towards running self-driving trucks on public roads but has focused first on less-crowded private roads at logistics and manufacturing hubs of customers like GE Appliances, a unit of Chinese home appliance maker Haier 600690.SS.
"The shift in investment ... toward off-road/more structured environments is a very real one given the lack of progress in passenger AVs (and) the high capital requirements involved," said Asad Hussain, research partner at private equity firm Mobility Impact Partners.
'SOMEWHERE, NOT EVERYWHERE'
Last month, British AV software startup Oxbotica announced $140 million in funding to roll out more products, starting with AVs operating in mines and remote areas.
"We're really focused on 'somewhere' autonomy rather than 'everywhere' autonomy because that's where the value is today," Oxbotica CEO Gavin Jackson said.
Jamie Vollbracht, founding partner of Kiko Ventures, IP Group Plc's IPO.L $450 million clean-tech investment platform, said mining companies can lose millions of dollars per hour in remote areas if they cannot get a human driver into a truck, placing them among a growing number of viable markets for AVs. Kiko was Oxbotica's first institutional investor.
"There has been a major underestimation of the scale of those early (AV) applications," Vollbracht said.
U.S. startup Outrider in January announced $73 million in funding to scale up its self-driving trucks that currently operate at low speeds in customers' distribution yards.
Construction and agricultural equipment - used off-road in low-traffic environments - has been another growth area for AV startups. They are operating alongside traditional heavy equipment makers like Caterpillar Inc CAT.N, Deere & Co DE.N and CNH Industrial NV CNHI.MI, which have also invested in AV technology.
Like Oxbotica, Apex.AI designs AV software for use in a variety of vehicles for "a number of non-automotive and trucking customers (with) a wide range of applications," said CEO Jan Becker.
U.S. agricultural equipment maker AGCO Corp AGCO.N, for instance, is using the Palo Alto, California-based startup's software for an experimental automated electric planter.
Deere has already acquired a number of AV-related businesses as it moves towards autonomy, including self-driving tractor firm Bear Flag Robotics for $250 million in 2021.
San Francisco-based Trucks Venture Capital had invested in Bear Flag before its sale and managing partner Reilly Brennan said the firm is "actively looking for another autonomous ag (startup)."
Trucks Venture Capital has also invested in Teleo, a maker of semi-autonomous retrofits for heavy construction and mining equipment that announced $12 million in funding last June.
Teleo's system allows a human operator to control multiple slow-moving AVs remotely and to take over only in situations that the software cannot handle. CEO Vinay Shet said combining the best of AV software and the human brain allowed Teleo to "build a real product that we can take to market today and not wait for another decade or two."
Slow roll brings Aurrigo to self-driving airport baggage dollies
FACTBOX-Investments flow to automated vehicles in non-auto settingsL1N34F1A3
(Reporting By Nick Carey in Coventry, England, and Paul Lienert in Detroit, Editing by Ben Klayman and Matthew Lewis)
((nick.carey@thomsonreuters.com; +44 7385 414 954;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When it became clear that the era of robotaxis was still distant, investors in 2021 shifted instead to self-driving truck companies that promised a faster route to market by hauling freight autonomously - arguing it would be easier to develop AVs to operate on highways at high speed without pedestrians. By Nick Carey and Paul Lienert COVENTRY, England, Feb 1 (Reuters) - Developing fully autonomous vehicles (AVs) that can go everywhere has proven harder and more expensive than expected, but investors are continuing to fund startups that target simpler self-driving vehicle solutions far removed from pedestrians and other vehicles operated by unpredictable humans. British AV software company Oxbotica, Sweden's Einride, America's Outrider and British supplier Aurrigo International Plc AURR.L are among a number of companies drawing investor interest with more focused approaches, aimed at smaller, simpler customer segments - from mining vehicles to tractors or forklifts.
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British AV software company Oxbotica, Sweden's Einride, America's Outrider and British supplier Aurrigo International Plc AURR.L are among a number of companies drawing investor interest with more focused approaches, aimed at smaller, simpler customer segments - from mining vehicles to tractors or forklifts. After watching robotaxi firms spend billions on technology that could still be many years away, investors are looking for startups that burn less cash and are preferably already generating revenue, said Kasper Sage, managing partner at BMW's BMWG.DE venture capital fund BMW iVentures, which led autonomous forklift company Fox Robotics' $20 million funding round in October. By Nick Carey and Paul Lienert COVENTRY, England, Feb 1 (Reuters) - Developing fully autonomous vehicles (AVs) that can go everywhere has proven harder and more expensive than expected, but investors are continuing to fund startups that target simpler self-driving vehicle solutions far removed from pedestrians and other vehicles operated by unpredictable humans.
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By Nick Carey and Paul Lienert COVENTRY, England, Feb 1 (Reuters) - Developing fully autonomous vehicles (AVs) that can go everywhere has proven harder and more expensive than expected, but investors are continuing to fund startups that target simpler self-driving vehicle solutions far removed from pedestrians and other vehicles operated by unpredictable humans. After watching robotaxi firms spend billions on technology that could still be many years away, investors are looking for startups that burn less cash and are preferably already generating revenue, said Kasper Sage, managing partner at BMW's BMWG.DE venture capital fund BMW iVentures, which led autonomous forklift company Fox Robotics' $20 million funding round in October. British AV software company Oxbotica, Sweden's Einride, America's Outrider and British supplier Aurrigo International Plc AURR.L are among a number of companies drawing investor interest with more focused approaches, aimed at smaller, simpler customer segments - from mining vehicles to tractors or forklifts.
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By Nick Carey and Paul Lienert COVENTRY, England, Feb 1 (Reuters) - Developing fully autonomous vehicles (AVs) that can go everywhere has proven harder and more expensive than expected, but investors are continuing to fund startups that target simpler self-driving vehicle solutions far removed from pedestrians and other vehicles operated by unpredictable humans. British AV software company Oxbotica, Sweden's Einride, America's Outrider and British supplier Aurrigo International Plc AURR.L are among a number of companies drawing investor interest with more focused approaches, aimed at smaller, simpler customer segments - from mining vehicles to tractors or forklifts. After watching robotaxi firms spend billions on technology that could still be many years away, investors are looking for startups that burn less cash and are preferably already generating revenue, said Kasper Sage, managing partner at BMW's BMWG.DE venture capital fund BMW iVentures, which led autonomous forklift company Fox Robotics' $20 million funding round in October.
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2023-01-31 00:00:00 UTC
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Caterpillar (CAT) Q4 Earnings Miss Estimates, Sales Beat
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Caterpillar Inc. CAT reported fourth-quarter 2022 adjusted earnings per share of $3.86, which missed the Zacks Consensus Estimate of $3.95 by a margin of 2%. The bottom-line figure marked a 43.5% improvement year on year. Despite unfavorable manufacturing costs, strong demand across most end markets and favorable price realization led to an improvement in CAT’s earnings for the quarter.
Including one-time items, Caterpillar’s earnings per share were $2.79, down 29% from the prior-year quarter’s $3.91.
Revenues Up On Higher Volumes & Price Realization
The company reported fourth-quarter revenues of around $16.6 billion that surpassed the Zacks Consensus Estimate of $15.9 billion. The top line improved 20% from the year-ago quarter on favorable price realization and increased sales volumes.
Caterpillar Inc. Price, Consensus and EPS Surprise
Caterpillar Inc. price-consensus-eps-surprise-chart | Caterpillar Inc. Quote
Higher sales of equipment to end users as well as dealers adding to the inventories, led to the improvement in sales volumes. Unfavorable currency impacts related to the euro, Australian dollar and Japanese yen had a dampening effect. Sales growth was noted across all segments.
Higher Sales Offset Cost Impact on Margins
In the quarter under review, the cost of sales increased 16% year over year to around $11.6 billion. Manufacturing costs were higher in the quarter due to inflated material costs as well as unfavorable cost absorption and increased period manufacturing costs. Gross profit improved 31% year over year to $4.98 billion aided by higher sales volumes. The gross margin was 30% in the quarter under review, up from 27.5% in the prior-year quarter.
Selling, general and administrative (SG&A) expenses increased 4% year over year to around $1,479 million. Research and development (R&D) expenses were down 9% to $401 million.
CAT reported an operating profit of $1,680 million in the fourth quarter of 2022 compared with $1,611 million in the last year’s quarter. Gains from increased volumes and favorable price realization were offset by a goodwill impairment charge, higher manufacturing costs and restructuring expenses.
The operating margin was 10.1% in the reported quarter, down from 11.7% in the prior-year quarter. Adjusted operating profit was $2,814 million in the quarter, up 78% from $1,577 million in the last year’s quarter. The adjusted operating margin was 17% in the fourth quarter of 2022 versus 11.4% in the year-ago quarter.
Solid Segment Performances
Machinery and Energy & Transportation (ME&T) sales rose 21% year over year to $15.9 billion in the quarter under review. Construction Industries' sales were up 19% year over year to $6.8 billion on favorable price realization and higher volumes, somewhat offset by unfavorable currency impacts. Sales were up 39% in Latin America, 34% in North America and 10% in EAME. Asia/Pacific witnessed a decline of 10% in sales mainly due to unfavorable currency impacts.
Sales in the Resource Industries segment gained 26% year over year to around $3.4 billion on higher sales volume and improved price realization. Growth was noted across all regions, led by North America with 59% year-over-year growth followed by Latin America registering 21%. EAME and Asia Pacific delivered growth of 12% and 5% respectively.
Sales of the Energy & Transportation segment in the quarter were around $6.8 billion, reflecting growth of 19% on higher sales volume and favorable price realization. The segment reported sales growth across all applications – Oil and Gas (38%), Industrial (19%), Power Generation (12%) and Transportation (6%).
The ME&T segment reported an operating profit of $1,629 million, which reflected an improvement of 10% year over year. The Construction Industries segment witnessed an 87% surge in operating profit to $1,488 million. The Resource Industries segment’s operating profit soared 110% year over year to $605 million in the fourth quarter. The Energy & Transportation segment’s operating profit increased 72% year over year to $1,177 million.
Favorable price realization and elevated sales volume across all segments helped offset the impact of higher costs, resulting in the improvement in respective segments’ profits.
Financial Products’ total revenues climbed 10% to $853 million from the prior-year quarter due to higher average financing rates. The segment's profits were $189 million in the reported quarter, a 24% decline year on year, mainly due to higher provision for credit losses at Cat Financial and an unfavorable impact from equity securities in Insurance Services.
Cash Position
During 2022, Caterpillar’s operating cash flow was $7.8 billion compared with $7.2 billion in the prior year. The company returned $6.7 billion to shareholders through dividends and share repurchases in 2022. CAT ended 2022 with cash and equivalents of $7 billion.
2022 Performance
Adjusted earnings per share increased 28% year over year to $13.84 but missed the Zacks Consensus Estimate of $13.94. Including one-time items, Caterpillar’s earnings per share were $12.64 for the year compared with $11.83 reported in 2021.
The company reported revenues of around $59.4 billion that beat the Zacks Consensus Estimate of $58.7 billion. The figure also marked a 16.5% improvement from the last year aided by favorable price realization and higher sales volume.
Price Performance
Image Source: Zacks Investment Research
Over the past year, Caterpillar stock has gained 29.7%, compared with the industry’s 27.8% growth.
Zacks Rank & Stocks to Consider
Caterpillar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI and Deere & Company DE. KNBE and OI sport a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year rise of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 4% in a year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 41% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported last year. The consensus estimate for fiscal 2023 earnings moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 12% in the last year.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite unfavorable manufacturing costs, strong demand across most end markets and favorable price realization led to an improvement in CAT’s earnings for the quarter. Caterpillar Inc. Price, Consensus and EPS Surprise Caterpillar Inc. price-consensus-eps-surprise-chart | Caterpillar Inc. Quote Higher sales of equipment to end users as well as dealers adding to the inventories, led to the improvement in sales volumes. Higher Sales Offset Cost Impact on Margins In the quarter under review, the cost of sales increased 16% year over year to around $11.6 billion.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Despite unfavorable manufacturing costs, strong demand across most end markets and favorable price realization led to an improvement in CAT’s earnings for the quarter. Caterpillar Inc. Price, Consensus and EPS Surprise Caterpillar Inc. price-consensus-eps-surprise-chart | Caterpillar Inc. Quote Higher sales of equipment to end users as well as dealers adding to the inventories, led to the improvement in sales volumes.
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Higher Sales Offset Cost Impact on Margins In the quarter under review, the cost of sales increased 16% year over year to around $11.6 billion. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Despite unfavorable manufacturing costs, strong demand across most end markets and favorable price realization led to an improvement in CAT’s earnings for the quarter.
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Despite unfavorable manufacturing costs, strong demand across most end markets and favorable price realization led to an improvement in CAT’s earnings for the quarter. Caterpillar Inc. Price, Consensus and EPS Surprise Caterpillar Inc. price-consensus-eps-surprise-chart | Caterpillar Inc. Quote Higher sales of equipment to end users as well as dealers adding to the inventories, led to the improvement in sales volumes. Higher Sales Offset Cost Impact on Margins In the quarter under review, the cost of sales increased 16% year over year to around $11.6 billion.
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2023-01-31 00:00:00 UTC
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Ball Corp (BALL) to Report Q4 Earnings: What's in Store?
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Ball Corporation BALL is scheduled to report fourth-quarter 2022 results on Feb 2, before the opening bell.
Q3 Performance
In the last reported quarter, Ball Corp’s earnings declined year over year despite an improvement in revenues. While revenues beat the Zacks Consensus Estimate, earnings missed the same. Over the trailing four quarters, BALL missed the Zacks Consensus Estimate in three of the quarters and missed once, the average surprise being a negative 2.4%.
Q4 Estimates
The Zacks Consensus Estimate for BALL’s fourth-quarter earnings per share is pegged at 54 cents, suggesting a decline of 44% from the prior-year quarter’s levels. The estimates have remained unchanged over the past 30 days. The Zacks Consensus Estimate for total sales is pegged at $3.53 billion, indicating a year-over-year decline of 4%.
Ball Corporation Price and EPS Surprise
Ball Corporation price-eps-surprise | Ball Corporation Quote
Factors to Note
Ball Corporation has lately witnessed weaker-than-expected demand as customer spending has been muted amid higher retail prices, particularly in the United States. This might get reflected in the company’s fourth-quarter performance. High input and labor costs due to supply constraints might have impacted the company’s performance in the quarter. Higher-than-expected start-up costs stemming from capacity-expansion measures are likely to have dented margin performance. BALL has been focused on improving its efficiency and reducing costs, which might have negated these impacts and boosted margins in the to-be-reported quarter.
Due to weak demand, the company recently announced the closure of its aluminum beverage can manufacturing facilities in Phoenix, AZ, and St. Paul, MN. The Phoenix facility is expected to have ceased production in the fourth quarter of 2022, followed by the St Paul facility in the first quarter of 2023. The closure of the Phoenix facility will likely impact the results of the Beverage Packaging, North and Central America segment in the to-be-reported quarter.
The Zacks Consensus Estimate for the Beverage packaging, North and Central America segment is pegged at $1,439 million for the December-end quarter indicating a 5% year-over-year decline. The segmental operating income is estimated at $132 million compared with the prior-year quarter’s $162 million. The segment’s results might have been impacted by the weakness in demand as mentioned above and inflated raw material and manufacturing costs.
The Beverage Packaging, EMEA segment’s fourth quarter 2022 results will likely bear the impact of higher inflation, energy costs and supply-chain disruptions across the region as well as the sale of the Russian aluminum beverage packaging business.
The Zacks Consensus Estimate for the Beverage packaging, South America segment’s net sales is pegged at $600 million, suggesting a 2% dip from the year-ago period’s levels. The segment’s operating income is pegged at $92 million, suggesting a 4% decline from the prior-year quarter’s $103 million.
The Zacks Consensus Estimate for the Beverage packaging, Europe segment’s sales is at $700 million for the to-be-reported quarter, indicating a 20% drop from the prior-year quarter’s $870 million. The segment’s operating income is projected at $55 million, suggesting a 47% plunge year over year. Elevated costs might have impacted the segment’s profits during the quarter under review.
The Aerospace segment’s contracted backlog remained strong at $3 billion as of the end of the third quarter of 2022. Contracts won but not yet booked into backlog stood at $4.6 billion. Program execution remains at a high level across the business. The segment continues to win and provide mission-critical programs and technologies to the U.S. government, defense, intelligence, reconnaissance and surveillance customers. This is likely to get reflected in the segment’s fourth-quarter top line.
The Zacks Consensus Estimate for the Aerospace segment's revenues is pegged at $517 million for the period in discussion, indicating a year-over-year improvement of 4%. The segment’s operating income is projected at $44.5 million, suggesting an 18% decline from last year quarter as the improvement in its revenues is likely to be offset by the supply-chain inefficiencies being faced by the segment.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ball Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: BALL has an Earnings ESP of -1.40%.
Zacks Rank: Currently, the company carries a Zacks Rank of 2.
Price Performance
Image Source: Zacks Investment Research
Shares of Ball Corp have fallen 40.6% in the past year compared with the industry's 30.4% decline.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 1.5% north in the past 60 days and is currently pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem Inc. XYL currently has an Earnings ESP of +0.63% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 60 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%.
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works Inc. ITW currently has an Earnings ESP of +1.92% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
Ball Corporation (BALL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Due to weak demand, the company recently announced the closure of its aluminum beverage can manufacturing facilities in Phoenix, AZ, and St. Paul, MN. The Zacks Consensus Estimate for the Beverage packaging, North and Central America segment is pegged at $1,439 million for the December-end quarter indicating a 5% year-over-year decline. Q3 Performance In the last reported quarter, Ball Corp’s earnings declined year over year despite an improvement in revenues.
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The Zacks Consensus Estimate for the Beverage packaging, North and Central America segment is pegged at $1,439 million for the December-end quarter indicating a 5% year-over-year decline. The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report Ball Corporation (BALL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Q4 Estimates The Zacks Consensus Estimate for BALL’s fourth-quarter earnings per share is pegged at 54 cents, suggesting a decline of 44% from the prior-year quarter’s levels. The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report Ball Corporation (BALL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Q4 Estimates The Zacks Consensus Estimate for BALL’s fourth-quarter earnings per share is pegged at 54 cents, suggesting a decline of 44% from the prior-year quarter’s levels. The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Q3 Performance In the last reported quarter, Ball Corp’s earnings declined year over year despite an improvement in revenues.
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2023-01-31 00:00:00 UTC
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Pentair (PNR) Earnings Surpass Estimates in Q4, Decline Y/Y
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https://www.nasdaq.com/articles/pentair-pnr-earnings-surpass-estimates-in-q4-decline-y-y
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Pentair Plc. PNR has reported fourth-quarter 2022 adjusted earnings per share (EPS) of 82 cents, beating the Zacks Consensus Estimate of 79 cents per share. The bottom line surpassed the company’s guidance of 79 cents. However, the same declined 6% from the 87 cents reported in the prior year.
Including one-time items, EPS was 58 cents compared with the prior-year quarter’s 89 cents.
Net sales improved 1.4% year over year to $1 billion in the quarter under review and topped the Zacks Consensus Estimate of $995 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 3% in the quarter.
The cost of sales advanced 2.7% year over year to $678 million. The gross profit in the reported quarter amounted to $325 million, down 1.1% from the prior-year quarter. The gross margin was 32.4% compared with the year-ago quarter’s 33.2%.
SG&A expenses totaled $190 million, which rose 21.6% from the prior-year quarter’s $156 million. Research and development expenses were up 7.4% year over year to $23.1 million.
The operating income in the quarter was $112 million, down 26% year over year. The adjusted segmental operating income increased 10% year over year to $183 million. The segment margin was 18.2% in the reported quarter, a 130 basis-point expansion from the year-ago quarter.
Pentair plc Price, Consensus and EPS Surprise
Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote
Segmental Performance
Net sales in the Consumer Solutions segment fell 0.5% year over year to $627 million. The segment’s operating earnings increased 7% year over year to $145 million.
Net sales in the Industrial and Flow Technologies segment totaled $376 million, up 5% from the prior-year quarter. Operating earnings for the segment rose 21% year over year to $65 million.
Financial Update
Pentair had cash and cash equivalents of around $109 million at the end of 2022 compared with $94.5 million at 2021-end. Net cash generated from operating activities was $364.3 million in 2022 compared with $613.6 million in the prior year. The company had long-term debt of $2,317 million as of Dec 31, 2022, up from $894 million as of Dec 31, 2021.
Fiscal 2022 Performance
For fiscal 2022, Pentair’s adjusted earnings were $3.68, which beat the Zacks Consensus Estimate of $3.65. It marked an 8.2% improvement from the prior year. The company’s guidance for adjusted EPS guidance for 2022 was $3.65. Including one-time items, the company’s earnings from continuing operations were $2.92 per share in 2022 compared with $3.32 in 2021.
Total revenues advanced 9% year over year to $4.1 billion, in line with the Zacks Consensus Estimate. Excluding currency translation, acquisitions and divestitures, core sales were up 6% in 2022.
Guidance
Pentair expects adjusted EPS for 2023 between $3.50 and $3.70. The company projects 2023 sales to be down 3% to up 1% on a reported basis.
For the first quarter of 2023, PNR expects adjusted EPS at 76-78 cents. The company anticipates first-quarter sales to be flat to up 1% on a reported basis from that reported in first-quarter 2022.
Price Performance
Pentair’s stock has lost 20.4% over the past year compared with the industry’s fall of 33.4%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Pentair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI, and Deere & Company DE. KNBE and OI flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 9% in the past 60 days. KNBE’s shares have gained 4% in a year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 41% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Pentair plc (PNR) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI, and Deere & Company DE. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. However, the same declined 6% from the 87 cents reported in the prior year.
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Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Pentair plc (PNR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. However, the same declined 6% from the 87 cents reported in the prior year. Net sales improved 1.4% year over year to $1 billion in the quarter under review and topped the Zacks Consensus Estimate of $995 million.
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Net sales improved 1.4% year over year to $1 billion in the quarter under review and topped the Zacks Consensus Estimate of $995 million. Click to get this free report O-I Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Pentair plc (PNR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. However, the same declined 6% from the 87 cents reported in the prior year.
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Net sales improved 1.4% year over year to $1 billion in the quarter under review and topped the Zacks Consensus Estimate of $995 million. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. However, the same declined 6% from the 87 cents reported in the prior year.
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2023-01-31 00:00:00 UTC
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Deere & Company (DE) is Attracting Investor Attention: Here is What You Should Know
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https://www.nasdaq.com/articles/deere-company-de-is-attracting-investor-attention%3A-here-is-what-you-should-know-0
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Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this agricultural equipment manufacturer have returned -1.9%, compared to the Zacks S&P 500 composite's +4.8% change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has lost 1.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Deere is expected to post earnings of $5.51 per share, indicating a change of +88.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $28.01 points to a change of +20.3% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $29.26 indicates a change of +4.5% from what Deere is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Deere, the consensus sales estimate for the current quarter of $11.44 billion indicates a year-over-year change of +34.1%. For the current and next fiscal years, $54.38 billion and $55.29 billion estimates indicate +13.5% and +1.7% changes, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $14.35 billion in the last reported quarter, representing a year-over-year change of +39.7%. EPS of $7.44 for the same period compares with $4.12 a year ago.
Compared to the Zacks Consensus Estimate of $13.64 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +5.08%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
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Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #2 (Buy). While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
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2023-01-31 00:00:00 UTC
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3 Dividend Stocks That Beat the Market in 2022 but Are Still Worth Buying Now
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https://www.nasdaq.com/articles/3-dividend-stocks-that-beat-the-market-in-2022-but-are-still-worth-buying-now
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Bear markets can be a great time to buy down-beaten stocks at discount prices. But sometimes, stocks go up during bear markets for the right reasons.
It's human nature to want to buy something at a discount. But basing whether a stock is expensive or cheap on the price action alone isn't a recipe for sound long-term investing. It's better to look at the fundamentals and results of a company to see if the stock's price is justified.
Baker Hughes (NASDAQ: BKR), Phillips 66 (NYSE: PSX), and Deere (NYSE: DE) are three dividend stocks that beat the market last year but are still great buys today.
Image source: Getty Images.
Favorable end market conditions will help Baker Hughes in 2023
Lee Samaha (Baker Hughes): Yes, the oil equipment and services company did outperform the market in 2022, but it also significantly underperformed its peers like Halliburton and Schlumberger. The reason comes from a combination of less-than-optimal execution, charges taken upon exiting Russia, and surging raw material and supply chain costs.
Still, the good news is all these three headwinds can turn into tailwinds in 2023. First, the loss of work in Russia is now in the numbers, making easier comparisons to beat in 2023. Second, management is taking action to improve execution. The company already plans to reduce complexity and annual costs by $150 million by shifting to two reporting segments rather than four and streamlining its operations in the process.
Third, like many industrial companies, Baker Hughes has a margin expansion opportunity coming from a moderation in raw material and supply chain costs caused by higher interest rates.
Underpinning all of this is the fact that, despite plenty of talk of recession and a stock market correction, the price of oil is still above $80 a barrel, making end market conditions favorable for oil capital spending and, ultimately, oil equipment and services companies.
Fuel your passive income stream with Phillips 66
Scott Levine (Phillips 66): Soaring 44% in 2022, shares of Phillips 66 handily beat the market. The midstream company and refineries operator strongly benefited from rising energy prices as investors rushed to power their portfolios with oil and gas stocks. That wasn't the only catalyst, however. The company beat expectations during its third-quarter 2022 earnings report and continued its streak of raising the dividend. Even with the stock's impressive outperformance last year, though, the stock still has room to run, giving investors good reason to scoop it up along with its attractive forward dividend yield of 3.7%.
Despite the stock's strong performance last year, shares are still steeply undervalued. Trading at 6.6 times operating cash flow, shares are trading at a discount to their five-year average cash flow multiple of 9. Using the forward earnings multiple to assess the price tag, investors will find the stock still looks inexpensive. Whereas shares of Phillips 66 have a five-year average forward earnings multiple of 16.4, they're currently valued at only 7.5 times forward earnings.
Phillips 66 has demonstrated a strong commitment to rewarding shareholders in the past. Over the past five years, the company has raised its dividend at a compound annual rate of 12.5%. Management will likely continue to return an increasing amount of capital to shareholders in the future. One way that will help the company to do this without jeopardizing its financial well-being is through acquisitions. Most recently, for example, Phillips 66 announced that it had entered into a definitive agreement to acquire the outstanding units of DCP Midstream -- a deal that will fortify its midstream natural gas business. Moreover, management expects the transaction will provide $1 billion in adjusted earnings before interest, taxes, depreciation, and amortization.
Deere stock deserves to be near an all-time high
Daniel Foelber (Deere): Given its size and industry-leading position in precision agriculture, you would think that Deere stock's monster outperformance would have caught more headlines. But oftentimes, the best stocks are the ones that make the least amount of noise. Deere's subtle success can be attributed to margin growth, a surge in sales, and, most importantly, the ability to raise prices without crushing demand. Over the last three years, Deere stock has surged 143% compared to just a 21.8% gain for the S&P 500 and a 20.4% gain for the industrial sector.
Blue chip industrial stocks of Deere's size rarely post that degree of outperformance in such a small amount of time. But in the case of Deere, everything seems to be clicking because the stock's surge is backed by fundamentals.
DE Revenue (TTM) data by YCharts
Deere's revenue and net income are at all-time highs. Its operating margin is also near an all-time high thanks to effective price increases. Deere's short-term performance is still heavily dependent on the market cycle, commodity prices, and the traditional industries it serves. But the most exciting aspect for long-term investors is the company's smart industrial strategy, which is centered around investments in automation, hardware, and software to boost crop yield, sustainability, forestry, construction, and more. All told, the investments are meant to widen Deere's gap over the competition, as well as extend the lifecycle of the customer by keeping them involved with services even after the initial purchase.
In this vein, Deere could end up becoming the Apple of agriculture as it builds out an ecosystem for its customers and makes its products more sticky.
Deere stock only has a dividend yield of 1.2%. But that is mainly because the company spends so much of its free cash flow reinvesting in the business, as well as buying back its own stock. Deere doesn't pack the same passive income punch as higher-yielding industrial companies. But what it lacks in the dividend it more than makes up for with its growth potential. After crushing the market over the past few years, Deere is still poised to outperform the market over the next three to five years, making the stock a worthy investment now.
10 stocks we like better than Baker Hughes
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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Deere and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Third, like many industrial companies, Baker Hughes has a margin expansion opportunity coming from a moderation in raw material and supply chain costs caused by higher interest rates. Baker Hughes (NASDAQ: BKR), Phillips 66 (NYSE: PSX), and Deere (NYSE: DE) are three dividend stocks that beat the market last year but are still great buys today. Favorable end market conditions will help Baker Hughes in 2023 Lee Samaha (Baker Hughes): Yes, the oil equipment and services company did outperform the market in 2022, but it also significantly underperformed its peers like Halliburton and Schlumberger.
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Favorable end market conditions will help Baker Hughes in 2023 Lee Samaha (Baker Hughes): Yes, the oil equipment and services company did outperform the market in 2022, but it also significantly underperformed its peers like Halliburton and Schlumberger. Underpinning all of this is the fact that, despite plenty of talk of recession and a stock market correction, the price of oil is still above $80 a barrel, making end market conditions favorable for oil capital spending and, ultimately, oil equipment and services companies. Baker Hughes (NASDAQ: BKR), Phillips 66 (NYSE: PSX), and Deere (NYSE: DE) are three dividend stocks that beat the market last year but are still great buys today.
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Baker Hughes (NASDAQ: BKR), Phillips 66 (NYSE: PSX), and Deere (NYSE: DE) are three dividend stocks that beat the market last year but are still great buys today. Deere stock deserves to be near an all-time high Daniel Foelber (Deere): Given its size and industry-leading position in precision agriculture, you would think that Deere stock's monster outperformance would have caught more headlines. Favorable end market conditions will help Baker Hughes in 2023 Lee Samaha (Baker Hughes): Yes, the oil equipment and services company did outperform the market in 2022, but it also significantly underperformed its peers like Halliburton and Schlumberger.
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Even with the stock's impressive outperformance last year, though, the stock still has room to run, giving investors good reason to scoop it up along with its attractive forward dividend yield of 3.7%. After crushing the market over the past few years, Deere is still poised to outperform the market over the next three to five years, making the stock a worthy investment now. Baker Hughes (NASDAQ: BKR), Phillips 66 (NYSE: PSX), and Deere (NYSE: DE) are three dividend stocks that beat the market last year but are still great buys today.
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2023-01-31 00:00:00 UTC
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The Zacks Analyst Blog Highlights IDEX, ESCO Technologies, Deere and AGCO
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For Immediate Release
Chicago, IL – January 31, 2023 – 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: IDEX Corp. IEX, ESCO Technologies Inc. ESE, Deere & Co. DE and AGCO Corp. AGCO.
Here are highlights from Monday’s Analyst Blog:
4 Stocks to Buy on a Solid Rebound of Durable Goods Orders
Orders for U.S.-made factory goods bounced back in December, with inflation starting to show signs of easing. Rising prices have compelled people to cut down on spending on goods but orders for factory goods are rebounding as prices continue to cool. The jump in December orders comes after a decline in November.
The manufacturing sector has been suffering lately, owing to inflationary pressures but higher orders for transportation equipment have been boosting orders for durable goods. Given this scenario, stocks like IDEX Corp., ESCO Technologies Inc., Deere & Co. and AGCO Corp. are expected to gain in the near term.
Durable Goods Orders Soar
The Commerce Department on Jan 26 said that orders for durable goods made in U.S. factories jumped a whopping 5.6% to reach $286.9 billion in December, exceeding economists’ expectations of a rise of 2.5%.
December’s jump follows a 1.7% decline in orders for durable goods in November. Excluding defense, new orders for durable goods jumped 6.3% in December.
The solid jump in December was driven by a more than twofold increase in orders for civilian aircraft, which rose 115.5% month over month to $28.88 billion.
Orders for transportation equipment increased $15.5 billion or 16.7% to $108.1 billion. Transportation equipment orders have now increased in four of the previous five months.
The manufacturing sector has been struggling of late as consumers have been spending cautiously owing to rising prices. However, despite the challenges, the sector has been attempting to hold its ground. Strong demand across the board is boosting orders, which ultimately is driving sales.
Shipment of manufactured durable goods increased 0.5% or $1.4 billion in December to $277.7 billion, after a 0.4% rise in November. Shipment of manufactured goods has now increased in 19 of the past 20 months, which once again shows the underlying strength in the economy.
Non-defense new orders for capital goods climbed $100.6 billion or 19.2% to $100.6 billion in December. Shipments rose $0.2 billion, or 0.2% to $85.2 billion.
The report comes as the latest data showed that inflation has finally started showing signs of easing. The U.S. Bureau of Economic Analysis said on Jan 27 that the Personal Consumption Expenditures (PCE) Price Index, declined to 5% year over year in December from 5.5% in November. Core PCE, the Fed’s preferred gauge of inflation, fell to 4.4% in December from 4.7% in the same period.
Also, U.S. GDP grew 2.9% in the fourth quarter. During the height of the pandemic, people spent more on goods and less on services, but people have once again started spending more on services as things are again back to normal. Orders for durable goods are increasing since there is still a considerable quantity of product demand.
Also, the slight decline in inflation over the past couple of months has been helping the manufacturing sector rebound as people are again spending more freely.
Our Choices
Given this scenario, it will be prudent to invest in stocks with a favorable Zacks Rank that are poised to gain from solid durable goods orders. We narrowed down our search to four such stocks. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IDEX Corp. is an applied solutions company that specializes in a diverse range of applications such as fluid and metering technologies; health and science technologies; and fire, safety and other products built to customer specifications. IEX sells its products to original equipment manufacturers, as well as to direct end-use customers across the globe.
IDEX’s expected earnings growth for the current year is 28.4%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 90 days. IEX currently has a Zacks Rank #2.
ESCO Technologies Inc., a subsidiary of ESCO Technologies Inc., enables the vision of what energy information can accomplish for 21st Century Utility by transforming both energy company and customer views of energy. ESE operates through the Utility Solutions Group, RF Shielding and Test, and Aerospace & Defense sectors.
ESCO Technologies’ expected earnings growth for the current year is 9.4%. The Zacks Consensus Estimate for current-year earnings has improved 7% over the past 60 days. ESE currently sports a Zacks Rank #1.
Deere & Co. is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. DE has an advantage in most farm machinery categories as its machines come with advanced features and are better constructed than its competitors.
Deere’s expected earnings growth for the current year is 20.3%. The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the past 60 days. DE currently carries a Zacks Rank #2.
AGCO Corp. is a leading manufacturer and distributor of agricultural equipment and related replacement parts. AGCO offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries.
AGCO’s expected earnings growth for the current year is 14.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the past 60 days. AGCO currently carries a Zacks Rank #2.
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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.
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Deere & Company (DE) : Free Stock Analysis Report
AGCO Corporation (AGCO) : Free Stock Analysis Report
ESCO Technologies Inc. (ESE) : Free Stock Analysis Report
IDEX Corporation (IEX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our Choices Given this scenario, it will be prudent to invest in stocks with a favorable Zacks Rank that are poised to gain from solid durable goods orders. 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. Stocks recently featured in the blog include: IDEX Corp. IEX, ESCO Technologies Inc. ESE, Deere & Co. DE and AGCO Corp. AGCO.
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Stocks recently featured in the blog include: IDEX Corp. IEX, ESCO Technologies Inc. ESE, Deere & Co. DE and AGCO Corp. AGCO. Here are highlights from Monday’s Analyst Blog: 4 Stocks to Buy on a Solid Rebound of Durable Goods Orders Orders for U.S.-made factory goods bounced back in December, with inflation starting to show signs of easing. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report ESCO Technologies Inc. (ESE) : Free Stock Analysis Report IDEX Corporation (IEX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Monday’s Analyst Blog: 4 Stocks to Buy on a Solid Rebound of Durable Goods Orders Orders for U.S.-made factory goods bounced back in December, with inflation starting to show signs of easing. Durable Goods Orders Soar The Commerce Department on Jan 26 said that orders for durable goods made in U.S. factories jumped a whopping 5.6% to reach $286.9 billion in December, exceeding economists’ expectations of a rise of 2.5%. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report ESCO Technologies Inc. (ESE) : Free Stock Analysis Report IDEX Corporation (IEX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include: IDEX Corp. IEX, ESCO Technologies Inc. ESE, Deere & Co. DE and AGCO Corp. AGCO. Here are highlights from Monday’s Analyst Blog: 4 Stocks to Buy on a Solid Rebound of Durable Goods Orders Orders for U.S.-made factory goods bounced back in December, with inflation starting to show signs of easing. Rising prices have compelled people to cut down on spending on goods but orders for factory goods are rebounding as prices continue to cool.
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720840.0
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2023-01-30 00:00:00 UTC
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Noteworthy ETF Inflows: SPYG, QCOM, COST, DE
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https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-spyg-qcom-cost-de
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $147.4 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 271,250,000 to 274,000,000). Among the largest underlying components of SPYG, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1.7%, Costco Wholesale Corp (Symbol: COST) is up about 0.3%, and Deere & Co. (Symbol: DE) is up by about 1.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $68.12 as the 52 week high point — that compares with a last trade of $53.20. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Funds Holding NAGS
Top Ten Hedge Funds Holding IJR
NORW Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $147.4 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 271,250,000 to 274,000,000).
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Among the largest underlying components of SPYG, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1.7%, Costco Wholesale Corp (Symbol: COST) is up about 0.3%, and Deere & Co. (Symbol: DE) is up by about 1.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $68.12 as the 52 week high point — that compares with a last trade of $53.20. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $147.4 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 271,250,000 to 274,000,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $68.12 as the 52 week high point — that compares with a last trade of $53.20. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $147.4 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 271,250,000 to 274,000,000). Among the largest underlying components of SPYG, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1.7%, Costco Wholesale Corp (Symbol: COST) is up about 0.3%, and Deere & Co. (Symbol: DE) is up by about 1.8%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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f5811f4e-af40-4444-a467-32f01168fd99
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720841.0
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2023-01-30 00:00:00 UTC
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Avery Dennison (AVY) to Report Q4 Earnings: What's in Store?
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Avery Dennison Corporation AVY is scheduled to report fourth-quarter 2022 results before the opening bell on Feb 02.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter total sales is pegged at $2.21 billion, suggesting an improvement of 1% from the prior-year quarter’s reported figure. The consensus mark for the company’s earnings per share is pinned at $2.10, indicating a year-over-year decrease of 1.4%. The estimate has moved down 8% in the past 60 days.
Q3 Performance
Avery Dennison’s revenues and earnings improved year over year in third-quarter 2022. However, the company missed the Zacks Consensus Estimate on both counts. The company has a trailing four-quarter earnings surprise of 4.4%, on average.
Avery Dennison Corporation Price and EPS Surprise
Avery Dennison Corporation price-eps-surprise | Avery Dennison Corporation Quote
Factors at Play
Avery Dennison has been witnessing solid demand for the labeling of non-durable consumer goods like food, beverage, home and personal care products. This is likely to get reflected in the company’s fourth-quarter sales, as around 40% of its revenues come from these products.
The Zacks Consensus Estimate for the Label and Graphic Materials segment’s fourth-quarter sales is pegged at $1,374 million, calling for a 3.2% year-over-year increase. Strong demand for consumer-packaged goods and ongoing e-commerce trends are likely to have aided the business in the quarter. Volume improvement, focus on high-value categories, led by specialty labels, and contributions from productivity and pricing initiatives are anticipated to have buoyed the segment’s results in the quarter under review.
However, these tailwinds are likely to have been slightly impacted by soft automotive end markets and supply-chain challenges. The Zacks Consensus Estimate for the segment’s adjusted operating income is pegged at $169 million, suggesting year-over-year growth of 2.4%.
The Retail Branding and Information Solutions segment’s sales in the fourth quarter are likely to have been aided by consistent strength in Radio-frequency identification, strong growth in the Intelligent Labels business and high-value categories, as well as robust growth in external embellishments. The Zacks Consensus Estimate for the segment’s October-December quarter’s sales is pegged at $631 million, indicating a decline of 4.2% from the prior-year quarter's reported figure of $659 million.
The downside is likely to have been driven by a decline in demand for graphics and products serving durable and industrial end markets. Also, base apparel business volume is expected to have been impacted by inventory reduction efforts by some brands and retailers. The Zacks Consensus Estimate for the segment’s operating income is pegged at $78 million, indicating a decline of 12.3% from the prior-year quarter’s reported figure of $89 million.
The Zacks Consensus Estimate for the Industrial and Healthcare Materials segment’s sales is pegged at $186 million, down 3.6% from the prior-year quarter's reported level. The Zacks Consensus Estimate for the segment's adjusted operating income is pinned at $18.18 million, up 1% from the 2021 reported figure.
Avery Dennison has been executing several pricing and re-engineering actions to mitigate inflationary cost pressure. It has also announced additional price increases in most of its businesses worldwide. These are likely to have supported the company’s margins in the quarter under discussion. Supply-chain-related challenges, unfavorable impacts of foreign currency translation, and rising raw material, labor and freight costs are expected to have offset these benefits in the fourth quarter.
What the Zacks Model Indicates
Our proven model does not conclusively predict an earnings beat for Avery Dennison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Earnings ESP: Avery Dennison has an Earnings ESP of -0.32%.
Zacks Rank: Avery Dennison currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Avery Dennison’s shares have lost 8.8% in the past year compared with the industry’s decline of 7.7%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 1.5% north in the past 60 days and is currently pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem Inc. XYL currently has an Earnings ESP of +0.63% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 60 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works Inc. ITW currently has an Earnings ESP of +1.92% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Avery Dennison Corporation (AVY) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Volume improvement, focus on high-value categories, led by specialty labels, and contributions from productivity and pricing initiatives are anticipated to have buoyed the segment’s results in the quarter under review. Avery Dennison Corporation AVY is scheduled to report fourth-quarter 2022 results before the opening bell on Feb 02. The consensus mark for the company’s earnings per share is pinned at $2.10, indicating a year-over-year decrease of 1.4%.
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The consensus mark suggests year-over-year growth of 88.7% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Avery Dennison Corporation (AVY) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Avery Dennison Corporation AVY is scheduled to report fourth-quarter 2022 results before the opening bell on Feb 02.
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Image Source: Zacks Investment Research Stocks Poised to Beat Earnings Estimates Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases: Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank #2. The consensus mark suggests year-over-year growth of 88.7% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Avery Dennison Corporation (AVY) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Retail Branding and Information Solutions segment’s sales in the fourth quarter are likely to have been aided by consistent strength in Radio-frequency identification, strong growth in the Intelligent Labels business and high-value categories, as well as robust growth in external embellishments. Earnings ESP: Avery Dennison has an Earnings ESP of -0.32%. Avery Dennison Corporation AVY is scheduled to report fourth-quarter 2022 results before the opening bell on Feb 02.
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720842.0
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2023-01-30 00:00:00 UTC
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Grainger (GWW) Set to Report Q4 Earnings: What's in Store?
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https://www.nasdaq.com/articles/grainger-gww-set-to-report-q4-earnings%3A-whats-in-store
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W.W. Grainger, Inc. GWW is scheduled to report fourth-quarter 2022 results on Feb 2, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for GWW’s fourth-quarter revenues is pegged at $3.76 billion, indicating growth of 12% from the year-ago quarter’s reported figure. The consensus mark for earnings per share is pegged at $6.97, suggesting an improvement of 28.1% from the prior-year quarter. Earnings estimates have moved up 0.4% in the past 60 days.
Q3 Results
In the last reported quarter, Grainger’s earnings and revenues beat the Zacks Consensus Estimate and increased year over year. The company surpassed earnings estimates in all of the last four quarters. GWW has a trailing four-quarter positive earnings surprise of 10.1%, on average.
W.W. Grainger, Inc. Price and EPS Surprise
W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Grainger this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: Grainger has an Earnings ESP of -0.12%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note
Grainger has been witnessing strong growth in core and non-pandemic product sales for the past few quarters. The company’s product mix has been stabilizing, as customers have been returning to normal operations post-pandemic. Also, GWW is focused on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities, and executing improvement initiatives within its supply chain. These factors are likely to have contributed to the company’s fourth-quarter performance.
Grainger’s High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing, strong revenue growth across the company’s North American regions, and an expansion in large and midsize customers. The Zacks Consensus Estimate for the segment’s revenue is pinned at $3,004 million, up 14.3% from the 2021 reported level.
Grainger has been witnessing market-beating growth in the High-Touch Solutions market compared with the U.S. MRO (maintenance, repair and operating) market. The upside can be attributed to strategic activities, such as building advantaged MRO solutions, delivering unparalleled customer services and offering differentiated sales and services.
GWW’s Endless Assortment segment is likely to have benefited from strong customer acquisition and repeat business in the quarter to be reported. Customer growth at MonotaRO is expected to have positively impacted the segment’s revenues. The Zacks Consensus Estimate for the segment’s revenues is pegged at $689 million, up 3.9% from the prior-year quarter’s reported figure.
The company has been witnessing elevated material and freight costs for some time. This, coupled with higher operating costs and incremental SG&A expenses due to higher technology investments, is likely to have impacted its margins in the fourth quarter. However, its pricing actions are anticipated to have offset some of the negative impacts.
Price Performance
Grainger shares have improved 15.5% in a year against the industry’s decline of 10.4%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 1.5% north in the past 60 days and is pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem Inc. XYL currently has an Earnings ESP of +0.63% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 60 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works Inc. ITW currently has an Earnings ESP of +1.92% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factors to Note Grainger has been witnessing strong growth in core and non-pandemic product sales for the past few quarters. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 1.5% north in the past 60 days and is pegged at $5.51 per share. W.W. Grainger, Inc. Price and EPS Surprise W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote What the Zacks Model Indicates Our proven model doesn’t conclusively predict an earnings beat for Grainger this season.
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The consensus mark suggests year-over-year growth of 88.7% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. W.W. Grainger, Inc. Price and EPS Surprise W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote What the Zacks Model Indicates Our proven model doesn’t conclusively predict an earnings beat for Grainger this season.
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Image Source: Zacks Investment Research Stocks Poised to Beat Earnings Estimates Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases: Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank #2. The consensus mark suggests year-over-year growth of 88.7% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Stocks Poised to Beat Earnings Estimates Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases: Deere & Co. DE currently has an Earnings ESP of +2.30% and a Zacks Rank #2. W.W. Grainger, Inc. Price and EPS Surprise W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote What the Zacks Model Indicates Our proven model doesn’t conclusively predict an earnings beat for Grainger this season. Factors to Note Grainger has been witnessing strong growth in core and non-pandemic product sales for the past few quarters.
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2023-01-30 00:00:00 UTC
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3 Industry-Leading Stocks to Buy Before the Bear Market Is Over
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https://www.nasdaq.com/articles/3-industry-leading-stocks-to-buy-before-the-bear-market-is-over
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Bear markets like the one the Nasdaq Composite and the S&P 500 have been in since March and June of 2022, respectively, make for a harsh investing environment. But for those who invest with a long-term mindset and don't mind some short-term volatility, bear markets can present some excellent buying opportunities.
What investors need to look for are companies that provide crucial infrastructure for society and their steady businesses can make them an excellent source of returns -- in other words, industry leaders. Granted, many of these types of stocks can be cyclical and their performance is often tied to the broader economy. So, they may struggle a bit during economic slowdowns, but they also tend to bounce back quickly once the economy starts to right itself.
Long-term investors might want to get in on these three industry-leading stocks before the bear market is over.
1. Automatic Data Processing helps businesses outsource essential functions
Automatic Data Processing (NASDAQ: ADP), better known as ADP, tends to fly under many investors' radars because its business, while crucial, isn't terribly exciting. When companies look to outsource business functions, they frequently turn to ADP. ADP provides companies with human capital management (HCM) solutions, handling things from human resources to payroll and time tracking.
Its scale is phenomenal, with nearly 1 million clients worldwide. It also processes payroll for 39 million workers globally across 140 countries and territories. Its reach in the U.S. is vast, and it processes payroll for one out of every six workers in the U.S. Its secret to success is its technology platform and wide-ranging knowledge of regulations across various regions worldwide.
You may be concerned about a potential recession. After all, a recent Bloomberg survey revealed that 81% of economists think we'll enter a recession in the next two years. An uptick in unemployment will surely hurt it, right? Not quite.
During a contraction, companies seek out ways to lower their costs. One way they can do that is by outsourcing business functions to ADP. That's exactly what happened during the Great Recession in 2007-09. During this time, ADP grew its revenue and earnings per share and provided investors with a solid defensive stock during a deep market contraction.
The company manages its capital well, has raised its dividend for 48 consecutive years, and its returns have outpaced the market for decades -- which is why this steady business deserves a spot in your portfolio before the bear market ends.
2. Deere provides essential machinery for our most important industries
Deere (NYSE: DE) provides machinery to the agriculture and construction industry, including tractors, harvesters, excavators, and more. It's building on its leading position in the industry with its Smart Industrial operating model. This model helps it focus on strengthening its technology to help farmers increase efficiency, boost yields, lower input costs, and ease labor constraints.
Deere has had a couple of tailwinds working in its favor. For one, the war in Ukraine led to higher commodity prices which led to higher profits for those in the agriculture industry. Deere benefits as farmers invest more in their equipment to meet increased demand. The company has been able to hike prices, and its margins have expanded as a result.
Another tailwind is spending from the Infrastructure Investment and Jobs Act. The law allocates $1.2 trillion to build roads, bridges, public transport, and airports, which will require machinery that Deere can provide. Deere's position as a leading provider of machinery and its strong backlog of orders makes it another solid investment before the bear market is over.
3. Generac stock is beginning to look like a bargain
Generac (NYSE: GNRC) provides generators for businesses and households -- and holds a 75% market share of home generators. Its long-term growth is stellar, but Generac has struggled mightily in the last year and was one of the worst-performing stocks in the S&P 500 last year.
It's not that the business was terrible; it did pull forward demand and achieve incredible growth in 2021. In 2021, sales were up 50%, while net income surged 57%. One driver of this growth was power outages in Texas, which led to a surge in demand for generators. Last year sales slowed down; through the first three quarters of last year, sales were up 32% while net income plunged 19%.
Generac stock got punished for cutting its guided revenue for the year nearly in half, and the valuation dropped as a result. Not only that, but one of its biggest customers declared bankruptcy, leaving it with an $18 million bad debt expense. Since peaking in November 2021, its shares have lost nearly 79%. For prospective investors, the sell-off has brought down its valuation significantly and makes it an intriguing buy. It currently trades at a price-to-earnings ratio (P/E) of just 16.9 -- the lowest level in years.
GNRC PE Ratio data by YCharts.
Generac stock got ahead of itself, but the underlying business is still solid. While a potential slowdown could hurt it in the short term, it is a top provider of generators for homes. It has also expanded into solar, battery storage, and energy management systems -- and its solid stock to buy at a reasonable price before the bear market ends.
10 stocks we like better than Automatic Data Processing
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Automatic Data Processing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool recommends Deere. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What investors need to look for are companies that provide crucial infrastructure for society and their steady businesses can make them an excellent source of returns -- in other words, industry leaders. During this time, ADP grew its revenue and earnings per share and provided investors with a solid defensive stock during a deep market contraction. It has also expanded into solar, battery storage, and energy management systems -- and its solid stock to buy at a reasonable price before the bear market ends.
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Automatic Data Processing helps businesses outsource essential functions Automatic Data Processing (NASDAQ: ADP), better known as ADP, tends to fly under many investors' radars because its business, while crucial, isn't terribly exciting. ADP provides companies with human capital management (HCM) solutions, handling things from human resources to payroll and time tracking. Generac stock is beginning to look like a bargain Generac (NYSE: GNRC) provides generators for businesses and households -- and holds a 75% market share of home generators.
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Automatic Data Processing helps businesses outsource essential functions Automatic Data Processing (NASDAQ: ADP), better known as ADP, tends to fly under many investors' radars because its business, while crucial, isn't terribly exciting. The company manages its capital well, has raised its dividend for 48 consecutive years, and its returns have outpaced the market for decades -- which is why this steady business deserves a spot in your portfolio before the bear market ends. Generac stock is beginning to look like a bargain Generac (NYSE: GNRC) provides generators for businesses and households -- and holds a 75% market share of home generators.
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During this time, ADP grew its revenue and earnings per share and provided investors with a solid defensive stock during a deep market contraction. Deere's position as a leading provider of machinery and its strong backlog of orders makes it another solid investment before the bear market is over. What investors need to look for are companies that provide crucial infrastructure for society and their steady businesses can make them an excellent source of returns -- in other words, industry leaders.
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2023-01-26 00:00:00 UTC
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CNH Industrial (CNHI) to Report Q4 Earnings: Factors at Play
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CNH Industrial CNHI is slated to release fourth-quarter 2022 results on Feb 2, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 36 cents per share and $6.31 billion, respectively.
CNH Industrial is an equipment and services company that manufactures agriculture and construction equipment for customers in 180 markets. The company came up with better-than-anticipated earnings in the last reported quarter. Higher-than-anticipated revenues across the Agricultural and Financial Services segments resulted in the outperformance.
Over the trailing four quarters, CNH Industrial outpaced estimates on all occasions, with the average being 18.8%. This is depicted in the graph below:
CNH Industrial N.V. Price and EPS Surprise
CNH Industrial N.V. price-eps-surprise | CNH Industrial N.V. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for CNH Industrial’s fourth-quarter earnings per share has been revised upward by a penny in the past 30 days. While the bottom-line projection indicates an increase of 44% year over year, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 30.47%.
What to Expect
CNH Industrial’s fourth-quarter results will likely reflect the favorable impact of upgraded product offerings as well as advanced technologies. Raven Industries and Sampierana buyouts are expected to boost results of CNH Industrial's Agriculture and Construction segments, respectively. Encouragingly, CNHI upwardly revised its estimates for net sales from industrial activities, which sparks optimism for the to-be-reported quarter results. Industrial sales are now expected to increase year over year in the band of 16-18% instead of 12-14% guided earlier.
The Zacks Consensus Estimate for the Agriculture segment’s revenues is pegged at $4,809 million for the fourth quarter, suggesting a year-over-year increase of 15.8%. Sales are likely to have got a boost from an improved mix, increased demand and favorable price realization. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $663 million, up from $414 million in the last year’s comparable quarter.
The Zacks Consensus Estimate for the Construction segment’s revenues is pegged at $914 million for the fourth quarter, suggesting a year-over-year increase of 8.3%. Sales are likely to have got a boost from enhanced price realization and contribution from the Sampierana business. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $28 million, up from $20 million in the last year’s comparable quarter.
While higher year-over-year projected sales and profits from Agriculture and Construction units bode well, the expected weak performance of Financial Services may have played spoilsport. The Zacks Consensus Estimate for the Financial segment’s revenues is pegged at $488 million for the fourth quarter, suggesting a decline from $533 million recorded in the year-ago period.
Additionally, the company has been bearing the brunt of rising SG&A and R&D costs over the last few quarters and the trend is expected to have continued in the to-be-reported quarter, thereby clipping margins. Rising capital expenditure for the development of technically-enhanced products may also have dented the company’s cash flows in fourth-quarter 2022
What Does Our Model Say?
Our proven model does not conclusively predict an earnings beat for CNH Industrial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here as elaborated below.
Earnings ESP: CNH Industrial has an Earnings ESP of -1.61%. This is because the Most Accurate Estimate is pegged a penny below the Zacks Consensus Estimate of earnings. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock With Favorable Combination
While an earnings beat appears uncertain for CNHI, we present you one stock from the same industry, which, according to our model, has the right combination of elements to post an earnings beat for the quarter to be reported:
Deere & Company DE: Deere is the world’s largest producer of agricultural equipment and manufacturing agricultural machinery. The company will release fourth-quarter 2022 results on Feb 17, before the opening bell. It has an Earnings ESP of +2.83% and a Zacks Rank #2.
The Zacks Consensus Estimate for Deere’s to-be-reported quarter’s earnings and revenues is pegged at $5.49 per share and $11.42 billion, respectively. DE surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 7.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Deere & Company (DE) : Free Stock Analysis Report
CNH Industrial N.V. (CNHI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While higher year-over-year projected sales and profits from Agriculture and Construction units bode well, the expected weak performance of Financial Services may have played spoilsport. Stock With Favorable Combination While an earnings beat appears uncertain for CNHI, we present you one stock from the same industry, which, according to our model, has the right combination of elements to post an earnings beat for the quarter to be reported: Deere & Company DE: Deere is the world’s largest producer of agricultural equipment and manufacturing agricultural machinery. This is depicted in the graph below: CNH Industrial N.V. Price and EPS Surprise CNH Industrial N.V. price-eps-surprise | CNH Industrial N.V. Quote Trend in Estimate Revisions The Zacks Consensus Estimate for CNH Industrial’s fourth-quarter earnings per share has been revised upward by a penny in the past 30 days.
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This is depicted in the graph below: CNH Industrial N.V. Price and EPS Surprise CNH Industrial N.V. price-eps-surprise | CNH Industrial N.V. Quote Trend in Estimate Revisions The Zacks Consensus Estimate for CNH Industrial’s fourth-quarter earnings per share has been revised upward by a penny in the past 30 days. The Zacks Consensus Estimate for the Financial segment’s revenues is pegged at $488 million for the fourth quarter, suggesting a decline from $533 million recorded in the year-ago period. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report CNH Industrial N.V. (CNHI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This is depicted in the graph below: CNH Industrial N.V. Price and EPS Surprise CNH Industrial N.V. price-eps-surprise | CNH Industrial N.V. Quote Trend in Estimate Revisions The Zacks Consensus Estimate for CNH Industrial’s fourth-quarter earnings per share has been revised upward by a penny in the past 30 days. Stock With Favorable Combination While an earnings beat appears uncertain for CNHI, we present you one stock from the same industry, which, according to our model, has the right combination of elements to post an earnings beat for the quarter to be reported: Deere & Company DE: Deere is the world’s largest producer of agricultural equipment and manufacturing agricultural machinery. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report CNH Industrial N.V. (CNHI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This is depicted in the graph below: CNH Industrial N.V. Price and EPS Surprise CNH Industrial N.V. price-eps-surprise | CNH Industrial N.V. Quote Trend in Estimate Revisions The Zacks Consensus Estimate for CNH Industrial’s fourth-quarter earnings per share has been revised upward by a penny in the past 30 days. The Zacks Consensus Estimate for Deere’s to-be-reported quarter’s earnings and revenues is pegged at $5.49 per share and $11.42 billion, respectively. While the bottom-line projection indicates an increase of 44% year over year, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 30.47%.
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2023-01-26 00:00:00 UTC
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Best Dividend Stock to Buy: Coca-Cola vs. Deere
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https://www.nasdaq.com/articles/best-dividend-stock-to-buy%3A-coca-cola-vs.-deere
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Coca-Cola (NYSE: KO) and Deere (NYSE: DE) may not be high-yielding dividend stocks, but what they lack in yield, they make up in sustainability. This video will let you know which is the better dividend stock to buy.
*Stock prices used were the afternoon prices of Jan. 23, 2023. The video was published on Jan. 25, 2023.
10 stocks we like better than Deere
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 9, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Deere and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Coca-Cola (NYSE: KO) and Deere (NYSE: DE) may not be high-yielding dividend stocks, but what they lack in yield, they make up in sustainability. This video will let you know which is the better dividend stock to buy.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Deere and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. Coca-Cola (NYSE: KO) and Deere (NYSE: DE) may not be high-yielding dividend stocks, but what they lack in yield, they make up in sustainability.
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10 stocks we like better than Deere When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Coca-Cola (NYSE: KO) and Deere (NYSE: DE) may not be high-yielding dividend stocks, but what they lack in yield, they make up in sustainability.
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This video will let you know which is the better dividend stock to buy. Coca-Cola (NYSE: KO) and Deere (NYSE: DE) may not be high-yielding dividend stocks, but what they lack in yield, they make up in sustainability. The video was published on Jan. 25, 2023.
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2023-01-26 00:00:00 UTC
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Deere (DE) Outpaces Stock Market Gains: What You Should Know
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https://www.nasdaq.com/articles/deere-de-outpaces-stock-market-gains%3A-what-you-should-know-1
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In the latest trading session, Deere (DE) closed at $421.20, marking a +1.83% move from the previous day. This change outpaced the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 3.84% over the past month. This has lagged the Industrial Products sector's gain of 4.05% and the S&P 500's gain of 4.58% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be February 17, 2023. The company is expected to report EPS of $5.49, up 88.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.44 billion, up 34.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $27.86 per share and revenue of $54.38 billion. These totals would mark changes of +19.67% and +13.49%, respectively, from last year.
Any recent changes to analyst estimates for Deere should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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, 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Deere is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 14.85. This represents a premium compared to its industry's average Forward P/E of 13.87.
Meanwhile, DE's PEG ratio is currently 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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. In the latest trading session, Deere (DE) closed at $421.20, marking a +1.83% move from the previous day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.
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This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Deere (DE) closed at $421.20, marking a +1.83% move from the previous day.
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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. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Deere (DE) closed at $421.20, marking a +1.83% move from the previous day. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.
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35b3e4ea-f52a-4ee4-8e30-527ecaf19f6e
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720847.0
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2023-01-26 00:00:00 UTC
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Packaging Corp (PKG) Q4 Earnings Beat Estimates, Dip Y/Y
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DE
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https://www.nasdaq.com/articles/packaging-corp-pkg-q4-earnings-beat-estimates-dip-y-y
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Packaging Corporation of America PKG reported adjusted earnings per share of $2.35 in fourth-quarter 2022, beating the Zacks Consensus Estimate of $2.24 per share. The bottom line decreased 15% year over year. However, it came above the company’s guidance of $2.22 per share.
The decline was driven by lower volumes in the Packaging and Paper segments, higher operating costs, rising freight and logistic expenses, and raised depreciation expenses. Higher converting costs and scheduled maintenance outage expenses affected the results. These headwinds were somewhat offset by rising prices and mix in the
Packaging segment, declining freight and logistics expenses, a reduced share count resulting from share repurchases, and a lower tax rate.
Including special items (primarily for certain costs at the Jackson, AL mill for paper-to-containerboard conversion-related activities), earnings in the reported quarter were $2.31 per share compared with the prior-year quarter’s $2.28 per share.
Operational Update
Sales in the fourth quarter declined 3.2% year over year to $1,978 million and missed the Zacks Consensus Estimate of $2,055 million.
The cost of products sold was down 0.3% year over year to $1,528 million in the fourth quarter. The gross profit declined 11.7% year over year to $450 million.
Selling, general and administrative expenses amounted to $146 million, up from the prior year’s $141 million. The total segment operating income fell 19% year over year to $288 million.
Packaging Corporation of America Price, Consensus and EPS Surprise
Packaging Corporation of America price-consensus-eps-surprise-chart | Packaging Corporation of America Quote
Segmental Performance
Packaging: Sales in the segment decreased 3.8% year over year to $1,809 million in the fourth quarter of 2022. The segment’s adjusted operating profit amounted to $284 million in the reported quarter from $363 million in the prior-year quarter.
Paper: The segment’s revenues were $154 million in the October-December quarter, up 7.7% year over year. The segment reported an adjusted operating profit of $34 million compared with the year-ago quarter’s $21 million.
Cash Position
Packaging Corp had a cash balance of around $470 million at the end of the fourth quarter of 2022, down from $765 million of cash held at the end of the prior-year quarter.
2022 Performance
Packaging Corp reported adjusted earnings per share of $11.14 in 2022 compared with $9.39 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $11.01. Including one-time items, the bottom line was $11.03, up 25% from the $8.83 reported in 2021.
Sales were up 10.4% year over year to $8.5 billion from the prior-year figure of $7.7 billion. The reported figure was in line with the Zacks Consensus Estimate.
Guidance
Packaging Corp projects first-quarter 2023 earnings of $2.23 per share. The company expects its Packaging segment to deliver a higher total volume, with corrugated plants having four additional shipping days. Prices will fall as a result of the recent reductions in published domestic containerboard prices. The company anticipates lower export prices as well.
In the Paper segment, Packaging Corp expects prices to move slightly higher, with fairly flat sales volume.
Price Performance
Packaging Corp’s shares have declined 10% in the past year compared with the industry’s fall of 1.3%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Packaging Corp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI, and Deere & Company DE. KNBE and OI flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 17% in a year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 45.6% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported last year. The consensus estimate for fiscal 2023 earnings moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 12% in the last year.
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OI Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Packaging Corporation of America (PKG) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company expects its Packaging segment to deliver a higher total volume, with corrugated plants having four additional shipping days. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported last year. The bottom line decreased 15% year over year.
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The decline was driven by lower volumes in the Packaging and Paper segments, higher operating costs, rising freight and logistic expenses, and raised depreciation expenses. Packaging Corporation of America Price, Consensus and EPS Surprise Packaging Corporation of America price-consensus-eps-surprise-chart | Packaging Corporation of America Quote Segmental Performance Packaging: Sales in the segment decreased 3.8% year over year to $1,809 million in the fourth quarter of 2022. Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Operational Update Sales in the fourth quarter declined 3.2% year over year to $1,978 million and missed the Zacks Consensus Estimate of $2,055 million. Packaging Corporation of America Price, Consensus and EPS Surprise Packaging Corporation of America price-consensus-eps-surprise-chart | Packaging Corporation of America Quote Segmental Performance Packaging: Sales in the segment decreased 3.8% year over year to $1,809 million in the fourth quarter of 2022. Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Operational Update Sales in the fourth quarter declined 3.2% year over year to $1,978 million and missed the Zacks Consensus Estimate of $2,055 million. Price Performance Packaging Corp’s shares have declined 10% in the past year compared with the industry’s fall of 1.3%. The bottom line decreased 15% year over year.
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42ea9f1d-5ab6-4038-af8b-954ea8f0e1ce
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720848.0
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2023-01-26 00:00:00 UTC
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Rockwell Automation (ROK) Beats on Q1 Earnings, Ups Guidance
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DE
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https://www.nasdaq.com/articles/rockwell-automation-rok-beats-on-q1-earnings-ups-guidance
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Rockwell Automation ROK has reported adjusted earnings per share of $2.46 in first-quarter fiscal 2023 (ended Dec 31, 2022), surpassing the Zacks Consensus Estimate of $1.81. The bottom line rose 15% year over year on higher sales volume and positive price/cost.
Including one-time items, earnings were $3.31 per share in the fiscal first quarter compared with the prior-year quarter’s $2.05 per share.
Total revenues were $1,981 million, up 6.7% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1,892 million. Organic sales in the quarter were up 9.9% and acquisitions contributed 0.8% to sales growth, while currency translation had a negative impact of 4%.
Operational Update
The cost of sales increased 5.3% year over year to around $1,167 million. The gross profit rose 8.6% year over year to $814 million. Selling, general and administrative expenses moved up 4.9% year over year to $470 million.
Consolidated segmental operating income totaled $401 million, up 12.9% from the prior-year quarter. The total segment operating margin was 20.2% in the fiscal first quarter, higher than the prior year’s 19.1%. The improvement in margins was driven by positive price/cost and higher sales volume, partially offset by higher investment spend.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote
Segmental Results
Intelligent Devices: Net sales amounted to $936 million in the fiscal first quarter, up 4% year over year. Segmental operating earnings totaled $209 million compared with the year-earlier quarter’s $213 million. The segmental operating margin decreased to 22.4% in the quarter from the year-ago quarter’s 23.7%. The decline was driven by higher investment spend and an unfavorable currency impact, somewhat offset by the positive impacts of higher price/cost.
Software & Control: Net sales rose 11.6% year over year to $573 million in the reported quarter. Segmental operating earnings increased 41.5% year over year to $167 million. The segment’s operating margin was 29.2% compared with 22.9% in the year-earlier quarter.
Lifecycle Services: Net sales for the segment were $472 million in the reported quarter, up 6.4% year over year. Segmental operating earnings totaled $24.3 million compared with the prior-year quarter’s $24.5 million. The segment’s operating margin was 5.2% in the reported quarter compared with the year-earlier quarter’s 5.5%.
Fiscal 2023 Guidance
Backed by solid backlog levels and fiscal first-quarter performance, as well as assuming supply-chain stabilization, Rockwell Automation updated its reported sales growth guidance to 10% - 14.% for fiscal 2023. This marks an increase from prior stated growth of 7.5-11.5%. Organic growth sales guidance has been updated to 11-15% from the previously stated 9-13% for fiscal 2023. Adjusted earnings per share for fiscal 2023 are expected between $10.70 and $11.50, up from the $10.20-$11 mentioned earlier.
Price Performance
In the past year, Rockwell Automation’s shares have declined 6.7% compared with the industry’s fall of 6.8%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI, and Deere & Company DE. KNBE and OI flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year rise of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 17% in a year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 45.6% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported last year. The consensus estimate for fiscal 2023 earnings moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 12% in the last year.
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OI Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rockwell Automation ROK has reported adjusted earnings per share of $2.46 in first-quarter fiscal 2023 (ended Dec 31, 2022), surpassing the Zacks Consensus Estimate of $1.81. Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI, and Deere & Company DE. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported last year.
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Rockwell Automation, Inc. Price, Consensus and EPS Surprise Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote Segmental Results Intelligent Devices: Net sales amounted to $936 million in the fiscal first quarter, up 4% year over year. Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Rockwell Automation ROK has reported adjusted earnings per share of $2.46 in first-quarter fiscal 2023 (ended Dec 31, 2022), surpassing the Zacks Consensus Estimate of $1.81.
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Rockwell Automation, Inc. Price, Consensus and EPS Surprise Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote Segmental Results Intelligent Devices: Net sales amounted to $936 million in the fiscal first quarter, up 4% year over year. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported last year. Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported last year. Rockwell Automation ROK has reported adjusted earnings per share of $2.46 in first-quarter fiscal 2023 (ended Dec 31, 2022), surpassing the Zacks Consensus Estimate of $1.81. Rockwell Automation, Inc. Price, Consensus and EPS Surprise Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote Segmental Results Intelligent Devices: Net sales amounted to $936 million in the fiscal first quarter, up 4% year over year.
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6508e99f-43d4-4d69-99d2-86828d51a960
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720849.0
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2023-01-25 00:00:00 UTC
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Silgan (SLGN) Q4 Earnings Top Estimates, Sales Rise Y/Y
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DE
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https://www.nasdaq.com/articles/silgan-slgn-q4-earnings-top-estimates-sales-rise-y-y
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Silgan Holdings Inc. SLGN reported adjusted earnings of 84 cents per share in fourth-quarter 2022, beating the Zacks Consensus Estimate of 81 cents per share. The bottom line increased 6% year over year.
Including one-time items, earnings were 22 cents per share compared with 76 cents per share reported in the prior-year quarter.
Total revenues increased year over year to $1,455 million from the prior-year quarter’s $1,439 million. The top line missed the Zacks Consensus Estimate of $1,547 million. The upside was driven by the pass-through of higher raw material and other manufacturing costs; improved unit volumes across the Dispensing and Specialty Closures, and Metal Container segments, and a favorable mix of products sold in the Metal Container and Custom Container segments. These were partly offset by lower volumes across all segments and the unfavorable impacts of foreign currency translation.
Costs and Margins
In fourth-quarter 2022, the cost of goods sold decreased 0.2% year over year to $1,223 million. The gross profit increased 7.3% to $233 million. The gross margin was 16% compared with the prior-year quarter’s 15%.
Selling, general and administrative expenses were $96.5 million in the reported quarter compared with the year-ago quarter’s $96 million. The company reported an operating income of $81 million in the quarter compared with $128 million in the prior-year quarter. The operating margin was 5.6% in the reported quarter compared with the prior-year quarter’s 8.9%.
Silgan Holdings Inc. Price, Consensus and EPS Surprise
Silgan Holdings Inc. price-consensus-eps-surprise-chart | Silgan Holdings Inc. Quote
Segmental Performance
Revenues in the Dispensing and Specialty Closures segment were down 5.4% year over year to $541 million in the fourth quarter. The segment’s operating income was $65 million compared with $63 million in the prior-year period.
The Metal Containers segment’s revenues in the fourth quarter increased 9.8% year over year to $755 million. Operating income in the segment amounted to $8 million, a decline of 84% from the prior-year quarter.
In the Custom Containers segment, revenues were $160 million compared with the year-ago quarter’s $180 million. The segment reported an income of $13 million, down from the previous year’s $18 million.
Financial Updates
The company had cash and cash equivalents of $586 million at the end of 2022 compared with $631.4 million at the end of 2021. It generated around $748 million in cash from operating activities in 2022 compared with $557 million in 2021.
2022 Performance
Silgan reported record adjusted earnings per share (EPS) of $3.98 for 2022 compared with $3.40 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $3.95. Including one-time items, the bottom line was $3.07, down 4.9% from the $3.23 reported in 2021.
Sales were up 12.9% to a record $6.4 billion from the prior-year figure of $5.7 billion. The top line was in line with the Zacks Consensus Estimate.
Revenues in the Dispensing and Specialty Closures segment reached $2.32 billion in 2022, up 7.2% from the 2021 level. Revenues of the Metal Containers segment were a record $3.37 billion for 2022, a 20.1% increase from 2021. Net sales of the Custom Containers segment increased 2% to $723 million in 2022.
2023 Outlook
Silgan expects 2023 adjusted EPS between $3.95 and $4.15, including a headwind of 20 cents per share for additional interest expenses.
For first-quarter 2023, Silgan anticipates adjusted EPS of 75-85 cents, whereas it reported 79 cents in first-quarter 2022.
Price Performance
Silgan’s shares have gained 20.5% in the past year against the industry’s fall of 22.5%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Silgan currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI, and Deere & Company DE. KNBE and OI flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 17% in a year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 45.6% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 12% in the last year.
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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
OI Glass, Inc. (OI) : Free Stock Analysis Report
Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported in the last year. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. The upside was driven by the pass-through of higher raw material and other manufacturing costs; improved unit volumes across the Dispensing and Specialty Closures, and Metal Container segments, and a favorable mix of products sold in the Metal Container and Custom Container segments.
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Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. The upside was driven by the pass-through of higher raw material and other manufacturing costs; improved unit volumes across the Dispensing and Specialty Closures, and Metal Container segments, and a favorable mix of products sold in the Metal Container and Custom Container segments. Costs and Margins In fourth-quarter 2022, the cost of goods sold decreased 0.2% year over year to $1,223 million.
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Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. The upside was driven by the pass-through of higher raw material and other manufacturing costs; improved unit volumes across the Dispensing and Specialty Closures, and Metal Container segments, and a favorable mix of products sold in the Metal Container and Custom Container segments. Costs and Margins In fourth-quarter 2022, the cost of goods sold decreased 0.2% year over year to $1,223 million.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported in the last year. The upside was driven by the pass-through of higher raw material and other manufacturing costs; improved unit volumes across the Dispensing and Specialty Closures, and Metal Container segments, and a favorable mix of products sold in the Metal Container and Custom Container segments. Costs and Margins In fourth-quarter 2022, the cost of goods sold decreased 0.2% year over year to $1,223 million.
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6e5146b7-eb58-44db-abc0-1cbff665579c
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720850.0
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2023-01-24 00:00:00 UTC
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Will Caterpillar Stock Rise After Q4 Results?
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https://www.nasdaq.com/articles/will-caterpillar-stock-rise-after-q4-results
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nan
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nan
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Caterpillar (NYSE: CAT) is scheduled to report its Q4 2022 results on Thursday, January 26. We expect CAT stock to trade lower post-Q4, with revenue and earnings falling below the consensus estimates. While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. Also, our forecast indicates that CAT stock is appropriately priced, as discussed below. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Caterpillar’s Q4 2022 revenues to be around $15.7 billion, reflecting a 14% y-o-y growth but below the $16.1 billion consensus estimate.
All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q4 as well, driven by strong end-user demand and a robust pricing environment.
However, supply chain disruptions and forex headwinds may have weighed on the overall revenue growth.
Looking back at Q3 2022, total revenues grew by 21% y-o-y to $15.0 billion, with gains across the company’s businesses.
Resource industries segment led the growth, with sales rising 30%, while Energy & Transportation sales were up 22%.
Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments.
(2) EPS likely to be below the consensus estimates
Caterpillar’s Q4 2022 adjusted earnings per share (EPS) is expected to be $3.90 per Trefis analysis, vs. the consensus estimate of $4.02. This compares with the $2.69 figure the company reported in the prior-year quarter.
Caterpillar’s adjusted net income of $2.1 billion in Q3 2022 reflected a considerable 43% y-o-y rise, compared to $1.5 billion in the prior-year quarter.
Higher revenues and a 280 bps rise in operating margins drove the bottom-line growth.
Looking forward, we expect the full-year 2023 adjusted EPS to be higher at $14.78, compared to $10.81 in 2021 and an estimated $13.91 in 2022.
(3) Stock fully priced
We estimate Caterpillar’s Valuation to be around $251 per share, which aligns with the current market price of $253.
This represents a forward P/E multiple of 17x based on our EPS forecast of $14.78 for 2023, compared to the last three-year average of 18x.
If the company reports upbeat results, with sales growth and a 2023 outlook better than the street estimates, the P/E multiple will likely be revised upward, resulting in higher levels for CAT stock.
While CAT stock has more room for growth, it is helpful to see how Caterpillar’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Marine Products vs. Tempur Sealy.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
CAT Return 5% 5% 172%
S&P 500 Return 5% 5% 80%
Trefis Multi-Strategy Portfolio 10% 10% 245%
[1] Month-to-date and year-to-date as of 1/24/2023
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q4 as well, driven by strong end-user demand and a robust pricing environment. We expect CAT stock to trade lower post-Q4, with revenue and earnings falling below the consensus estimates.
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While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. We expect CAT stock to trade lower post-Q4, with revenue and earnings falling below the consensus estimates. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
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We expect CAT stock to trade lower post-Q4, with revenue and earnings falling below the consensus estimates. While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
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Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments. We expect CAT stock to trade lower post-Q4, with revenue and earnings falling below the consensus estimates. While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds.
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ee560fe8-c84a-42e8-8e38-af81718937ce
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720851.0
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2023-01-24 00:00:00 UTC
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Noteworthy Tuesday Option Activity: DE, DIS, EW
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-de-dis-ew
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 8,501 contracts has been traded thus far today, a contract volume which is representative of approximately 850,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 68% of DE's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $395 strike put option expiring January 27, 2023, with 419 contracts trading so far today, representing approximately 41,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $395 strike highlighted in orange:
Walt Disney Co. (Symbol: DIS) options are showing a volume of 85,534 contracts thus far today. That number of contracts represents approximately 8.6 million underlying shares, working out to a sizeable 65.6% of DIS's average daily trading volume over the past month, of 13.0 million shares. Particularly high volume was seen for the $107 strike call option expiring January 27, 2023, with 3,370 contracts trading so far today, representing approximately 337,000 underlying shares of DIS. Below is a chart showing DIS's trailing twelve month trading history, with the $107 strike highlighted in orange:
And Edwards Lifesciences Corp (Symbol: EW) options are showing a volume of 18,714 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 63.1% of EW's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $70 strike put option expiring March 17, 2023, with 4,397 contracts trading so far today, representing approximately 439,700 underlying shares of EW. Below is a chart showing EW's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for DE options, DIS options, or EW options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $395 strike put option expiring January 27, 2023, with 419 contracts trading so far today, representing approximately 41,900 underlying shares of DE. Particularly high volume was seen for the $107 strike call option expiring January 27, 2023, with 3,370 contracts trading so far today, representing approximately 337,000 underlying shares of DIS. Especially high volume was seen for the $70 strike put option expiring March 17, 2023, with 4,397 contracts trading so far today, representing approximately 439,700 underlying shares of EW.
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Below is a chart showing DE's trailing twelve month trading history, with the $395 strike highlighted in orange: Walt Disney Co. (Symbol: DIS) options are showing a volume of 85,534 contracts thus far today. That number of contracts represents approximately 8.6 million underlying shares, working out to a sizeable 65.6% of DIS's average daily trading volume over the past month, of 13.0 million shares. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 63.1% of EW's average daily trading volume over the past month, of 3.0 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 8,501 contracts has been traded thus far today, a contract volume which is representative of approximately 850,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number of contracts represents approximately 8.6 million underlying shares, working out to a sizeable 65.6% of DIS's average daily trading volume over the past month, of 13.0 million shares. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 63.1% of EW's average daily trading volume over the past month, of 3.0 million shares.
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Especially high volume was seen for the $395 strike put option expiring January 27, 2023, with 419 contracts trading so far today, representing approximately 41,900 underlying shares of DE. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 63.1% of EW's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing EW's trailing twelve month trading history, with the $70 strike highlighted in orange: For the various different available expirations for DE options, DIS options, or EW options, visit StockOptionsChannel.com.
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f2a8cd9e-b38a-4321-a224-b736e7775d52
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720852.0
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2023-01-24 00:00:00 UTC
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Pentair (PNR) to Report Q4 Earnings: What's in the Offing?
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DE
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https://www.nasdaq.com/articles/pentair-pnr-to-report-q4-earnings%3A-whats-in-the-offing-0
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Pentair plc PNR is scheduled to report fourth-quarter 2022 results on Jan 31, before the opening bell.
Q3 Results & Surprise History
Pentair’s revenues and earnings improved in third-quarter 2022 and also beat the Zacks Consensus Estimate. The company has an impressive earnings surprise history. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 3.9%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $995 million, indicating growth of 0.6% from the year-ago reported figure. The same for earnings is pegged at 79 cents per share, suggesting a decline of 9% year over year. The Zacks Consensus Estimate for quarterly earnings has remained unchanged over the past 30 days.
Pentair plc Price and EPS Surprise
Pentair plc price-eps-surprise | Pentair plc Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Pentair for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is precisely the case here.
You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Pentair is 0.90%.
Zacks Rank: Pentair currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Note
During the first half of 2022, Pentair’s inventory levels increased to support market demand and ongoing supply-chain challenges. However, in the third quarter of 2022, it saw the normalization of inventory levels within residential distributor channels. PNR had planned to clear out nearly $200 million of the channel inventory pool in the fourth quarter. These optimization efforts are expected to have impacted volume levels in the quarter under review. Also, the pool business has historically tended to be at lower levels in the fourth compared to the second and third quarters due to seasonal factors. These factors are likely to get reflected in PNR’s top-line performance in the fourth quarter.
Pentair has been witnessing a tight supply of raw materials such as metals, resins and electronics along with rising logistics costs. While it has been implementing pricing actions and focusing on productivity improvements that may have negated these headwinds, supply-chain pressures and inflationary costs are likely to have weighed on the quarter’s performance.
During the first nine months of 2022, the Consumer Solutions segment saw a year-over-year decline in the backlog. Shipments outpaced new orders during the period as customers balanced the need to place new orders with market demand and channel inventory levels. This downward trend may continue in the fourth quarter of 2022 as the backlog is expected to return to historical levels.
The Zacks Consensus Estimate for the Consumer Solutions segment’s revenues is currently pegged at $644 million, suggesting an improvement of 2% from the year-ago quarter. The consensus mark for the segment’s operating profit for the quarter is pinned at $147 million, indicating year-over-year growth of 8%.
The Zacks Consensus Estimate for the Industrial & Flow Technologies segment’s revenues is pegged at $363 million, indicating an improvement of 1% from the prior-year quarter. The consensus mark for the segment’s operating profit stands at $58 million, suggesting growth of 7% from the $54 million reported a year ago.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have declined 42.3% in the past year compared with the industry’s 48.6% plunge.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which according to our model have the right combination of elements to post an earnings beat in their upcoming releases:
Deere & Co. DE currently has an Earnings ESP of +2.83% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 2.6% north in the past 60 days and is currently pegged at $5.49 per share. The consensus mark suggests year-over-year growth of 88.1%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s levels. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem XYL currently has an Earnings ESP of +2.10% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been stable in the past 60 days and is currently pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works ITW currently has an Earnings ESP of +1.92% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is currently pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s levels. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Pentair plc (PNR) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key Factors to Note During the first half of 2022, Pentair’s inventory levels increased to support market demand and ongoing supply-chain challenges. The same for earnings is pegged at 79 cents per share, suggesting a decline of 9% year over year. Pentair plc Price and EPS Surprise Pentair plc price-eps-surprise | Pentair plc Quote What the Zacks Model Unveils Our proven model predicts an earnings beat for Pentair for the fourth quarter.
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Pentair plc Price and EPS Surprise Pentair plc price-eps-surprise | Pentair plc Quote What the Zacks Model Unveils Our proven model predicts an earnings beat for Pentair for the fourth quarter. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Pentair plc (PNR) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. The same for earnings is pegged at 79 cents per share, suggesting a decline of 9% year over year.
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Pentair plc Price and EPS Surprise Pentair plc price-eps-surprise | Pentair plc Quote What the Zacks Model Unveils Our proven model predicts an earnings beat for Pentair for the fourth quarter. The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s levels. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Pentair plc (PNR) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s levels. The same for earnings is pegged at 79 cents per share, suggesting a decline of 9% year over year. Pentair plc Price and EPS Surprise Pentair plc price-eps-surprise | Pentair plc Quote What the Zacks Model Unveils Our proven model predicts an earnings beat for Pentair for the fourth quarter.
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0bc2d83a-6120-4c36-b03b-7046c09fd012
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720853.0
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2023-01-24 00:00:00 UTC
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Caterpillar (CAT) to Post Q4 Earnings: What's in Store?
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https://www.nasdaq.com/articles/caterpillar-cat-to-post-q4-earnings%3A-whats-in-store
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Caterpillar Inc. CAT is likely to register an improvement in both the top and the bottom lines when it reports fourth-quarter 2022 results on Jan 31, before the opening bell. Strong demand in its end markets and pricing actions are expected to have negated the impact of inflated costs and supply-chain disruptions, driving the improvement in the quarterly results.
The Zacks Consensus Estimate for quarterly earnings per share for Caterpillar is currently pegged at $3.95, which indicates growth of 47% from the year-ago reported figure. The consensus mark for total sales stands at $15.9 billion, suggesting growth of 15.2% from the prior-year quarter.
Q3 Results & Surprise History
In the last reported quarter, Caterpillar delivered improved year-over-year performance in its revenues and earnings and also beat the respective Zacks Consensus Estimate.
With the earnings beat in the last quarter, the mining and construction equipment behemoth maintained the streak of surpassing earnings estimates for ten consecutive quarters. CAT has a trailing four-quarter earnings surprise of 14.7%, on average.
Caterpillar Inc. Price and EPS Surprise
Caterpillar Inc. price-eps-surprise | Caterpillar Inc. Quote
Factors to Note
Per the Federal Reserve, total industrial production rose at an annual rate of 1.7% in the October-December quarter. These figures indicate that Caterpillar might have witnessed an increase in order levels in the quarter. This, along with the solid backlog of $30 billion reported at the end of the third quarter of 2022, are expected to get reflected in Caterpillar’s third-quarter top line. Also, the fourth quarter of the year is historically the strongest quarter in terms of sales due to seasonal factors, and the fourth quarter of 2022 was no exception.
Supply-chain headwinds, labor constraints currently faced by the industry and inflated costs for raw materials and freight services are likely to have weighed on the company’s margins in the quarter to be reported. Higher selling, general and administrative expenses due to increased incentive compensation and elevated R&D expenses to support the company’s growth strategy and new product development might have aggravated the pressure on margins. Nevertheless, savings from Caterpillar’s cost control measures and restructuring actions are expected to have negated some of these headwinds and contributed to the company’s margins.
Segment Expectations
The Zacks Consensus Estimate for the Resource Industries segment’s fourth-quarter external sales stands at $3,202 million, reflecting year-over-year growth of 21% on higher end-user demand for equipment and aftermarket parts as well as favorable price realization. Improvement in heavy construction, quarry and aggregates might have contributed to the segment’s performance. Sales are expected to be up across all regions. The segment is anticipated to report an operating profit of $513 million, suggesting growth of 68% from the year-ago quarter’s figure of $305 million.
The consensus mark for the Construction segment’s external sales stands at $6,474 million, indicating growth of 14% from the year-ago quarter. In North America, demand from both residential and non-residential construction is likely to have aided the segment’s performance in the quarter to be reported. Increased construction activity is expected to have driven machine demand in EAME and Latin America as well.
Lower construction demand in China due to the impact of lockdowns is likely to have been offset by higher demand in other regions of Asia Pacific. The Zacks Consensus Estimate for the Construction segment’s operating profit stands at $1,210 million, indicating growth of 54% from the prior-year quarter.
For the Energy & Transportation segment, the consensus mark for external sales stands at $5,387 million, suggesting an improvement of 13% from the prior-year reported figure. The Zacks Consensus Estimate for the Energy & Transportation segment’s operating profit is pegged at $969 million, suggesting a 44% improvement from the year-ago reported figure.
What Our Model Unveils
Our proven model predicts an earnings beat for Caterpillar for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is precisely the case here.
You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Earnings ESP: Caterpillar has an Earnings ESP of 1.14%.
Zacks Rank: The company currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Shares of the company have gained 17.9% in the past year, compared with the industry’s 16.5% growth.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which according to our model have the right combination of elements to post an earnings beat in their upcoming releases:
Deere & Co. DE currently has an Earnings ESP of +2.83% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings have moved 2.6% north in the past 60 days and is currently pegged at $5.49 per share. The consensus mark suggests year-over-year growth of 88.1%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s levels. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem XYL currently has an Earnings ESP of +2.10% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been stable in the past 60 days and is currently pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works ITW currently has an Earnings ESP of +1.92% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is currently pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s levels. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong demand in its end markets and pricing actions are expected to have negated the impact of inflated costs and supply-chain disruptions, driving the improvement in the quarterly results. Q3 Results & Surprise History In the last reported quarter, Caterpillar delivered improved year-over-year performance in its revenues and earnings and also beat the respective Zacks Consensus Estimate. Caterpillar Inc. Price and EPS Surprise Caterpillar Inc. price-eps-surprise | Caterpillar Inc. Quote Factors to Note Per the Federal Reserve, total industrial production rose at an annual rate of 1.7% in the October-December quarter.
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Segment Expectations The Zacks Consensus Estimate for the Resource Industries segment’s fourth-quarter external sales stands at $3,202 million, reflecting year-over-year growth of 21% on higher end-user demand for equipment and aftermarket parts as well as favorable price realization. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Strong demand in its end markets and pricing actions are expected to have negated the impact of inflated costs and supply-chain disruptions, driving the improvement in the quarterly results.
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Q3 Results & Surprise History In the last reported quarter, Caterpillar delivered improved year-over-year performance in its revenues and earnings and also beat the respective Zacks Consensus Estimate. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Strong demand in its end markets and pricing actions are expected to have negated the impact of inflated costs and supply-chain disruptions, driving the improvement in the quarterly results.
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Q3 Results & Surprise History In the last reported quarter, Caterpillar delivered improved year-over-year performance in its revenues and earnings and also beat the respective Zacks Consensus Estimate. Segment Expectations The Zacks Consensus Estimate for the Resource Industries segment’s fourth-quarter external sales stands at $3,202 million, reflecting year-over-year growth of 21% on higher end-user demand for equipment and aftermarket parts as well as favorable price realization. Strong demand in its end markets and pricing actions are expected to have negated the impact of inflated costs and supply-chain disruptions, driving the improvement in the quarterly results.
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2023-01-24 00:00:00 UTC
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Dover (DOV) to Report Q4 Earnings: What's in the Offing?
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https://www.nasdaq.com/articles/dover-dov-to-report-q4-earnings%3A-whats-in-the-offing
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Dover Corporation DOV will release fourth-quarter 2022 results on Jan 31, before the opening bell.
Q3 Results
In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate, while sales missed the same. DOV reported a year-over-year improvement in its top and bottom lines. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 4%.
Dover Corporation Price and EPS Surprise
Dover Corporation price-eps-surprise | Dover Corporation Quote
Q4 Estimates
The Zacks Consensus Estimate for DOV’s fourth-quarter 2022 earnings per share is pegged at $2.15, suggesting growth of 20.8% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.1 billion, indicating an increase of 6% from the prior year’s reported figure.
Price Performance
Dover’s shares have declined 18.4% in the past year compared with the industry’s fall of 6.3%.
Image Source: Zacks Investment Research
Factors at Play
Dover has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited the fourth-quarter performance. Gains from the recent acquisitions are also likely to have contributed to DOV’s performance in the to-be-reported quarter.
The company’s margins have been gaining from a strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impacts of supply-chain constraints, input inflation and production disruptions. These are likely to have driven DOV’s profitability in the fourth quarter.
Segmental Estimates
In the Engineered Products segment, the demand for engineered products, vehicle service and industrial automation has been strong, which is expected to get reflected in the December-end quarter’s top-line results. Improved price-cost dynamics and volume are likely to have offset input shortages.
The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $519 million, suggesting growth of 12% from the prior-year quarter’s reading. The consensus estimate for the segment’s adjusted EBITDA is pegged at $98 million, indicating a rise from $70 million reported in the prior-year quarter.
The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gasses in the quarter under review. However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays and caution in Europe/Asia. Margins are likely to have gained from a positive product mix and the effects of decisive actions to reduce costs based on above-ground fueling.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $464 million for the quarter to be reported, suggesting a rise of 12.8% from the year-earlier actuals. The consensus estimate for the segment’s adjusted EBITDA is pegged at $102 million, indicating 27.5% growth from the year-ago reported number.
The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers and spares, as well as continued strength in consumables. The Zacks Consensus Estimate for the segment’s revenues is pinned at $282 million, suggesting a decline from the $292 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is estimated to be $72 million, suggesting growth of 2.8% from the prior-year quarter’s reported level.
In the Pumps & Process Solutions segment, robust demand for industrial pumps and polymer processing activity is likely to have aided the segment’s fourth-quarter performance. Customers’ demand shift from COVID-19 vaccine production to alternative therapies is expected to have impacted its biopharma business.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $436 million, suggesting a decline of 2.5% from the prior-year quarter’s reported figure. The consensus mark for the segment’s fourth-quarter adjusted EBITDA is pegged at $133 million, indicating a decline of 16.9% from the year-earlier quarter’s reported number.
In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s fourth-quarter performance. Its heat exchanger and beverage packaging business has also been seeing strong order rates. Margins are likely to have gained as food retail productivity improved and volume increased.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $411 million, implying 9.3% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $67 million, hinting at growth from $42.3 million reported in the year-ago quarter.
Here’s What Our Zacks Model Predicts
Our proven model doesn’t conclusively predict an earnings beat for Dover this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Dover has an Earnings ESP of -0.47%.
Zacks Rank: Dover currently carries a Zacks Rank # 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some Industrial Products stocks, which you might consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Deere & Co. DE currently has an Earnings ESP of +2.83% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 2.6% north in the past 60 days and is pegged at $5.49 per share. The consensus mark suggests year-over-year growth of 88.1%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem Inc. XYL currently has an Earnings ESP of +2.10% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 60 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works Inc. ITW currently has an Earnings ESP of +1.92% and a Zacks Rank #3. The Zacks Consensus Estimate for ITW's fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Dover Corporation (DOV) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Factors at Play Dover has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited the fourth-quarter performance. The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers and spares, as well as continued strength in consumables. Price Performance Dover’s shares have declined 18.4% in the past year compared with the industry’s fall of 6.3%.
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The consensus mark suggests year-over-year growth of 88.1% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Dover Corporation (DOV) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Price Performance Dover’s shares have declined 18.4% in the past year compared with the industry’s fall of 6.3%.
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The consensus mark suggests year-over-year growth of 88.1% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Dover Corporation (DOV) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Price Performance Dover’s shares have declined 18.4% in the past year compared with the industry’s fall of 6.3%.
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Stocks to Consider Here are some Industrial Products stocks, which you might consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases. Price Performance Dover’s shares have declined 18.4% in the past year compared with the industry’s fall of 6.3%. Image Source: Zacks Investment Research Factors at Play Dover has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited the fourth-quarter performance.
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720855.0
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2023-01-23 00:00:00 UTC
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What Awaits Rockwell Automation (ROK) in Q1 Earnings?
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https://www.nasdaq.com/articles/what-awaits-rockwell-automation-rok-in-q1-earnings
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Rockwell Automation Inc. ROK is scheduled to report first-quarter fiscal 2023 results before the opening bell on Jan 26.
Q4 Performance
In the last reported quarter, Rockwell Automation’s earnings and revenues improved year over year and also beat the respective Zacks Consensus Estimate.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing on one occasion, the average surprise being a negative 0.33%.
Rockwell Automation, Inc. Price and EPS Surprise
Rockwell Automation, Inc. price-eps-surprise | Rockwell Automation, Inc. Quote
Q1 Estimates
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.89 billion, indicating growth of 1.9% from the prior-year quarter. The same for earnings is pegged at $1.81, suggesting a decrease of 15.4% from the year-ago quarter. The earnings estimates have moved up 3% in the past 30 days.
Factors to Note
Rockwell Automation has been witnessing improvement in order levels in the past few quarters. In fiscal 2022, the company reported record order levels of more than $10 billion, which marked 20% growth from the prior fiscal. Low order cancellation rates indicate the solid underlying demand from customers across many industries and regions.
Strong demand for software and cyber security services and a robust order backlog of $5 billion are likely to have aided Rockwell Automation’s fiscal first-quarter top line. Per the Federal Reserve, total industrial production rose at an annual rate of 1.7% in the October-December quarter. This might have contributed to the company’s order book in the fiscal first quarter.
The company’s bottom-line results are however expected to be hurt by supply-chain challenges and cost inflation that persisted throughout the quarter. The manufacturing supply chain continued to be strained by the sharp rise in demand and the shortages of electronic components. Also, higher logistics costs due to elevated energy costs and constrained air freight lanes are expected to have impacted margins in the quarter. Increased spending on talent and growth, unfavorable mix, as well as unfavorable currency also anticipated to have added pressure on its margin performance.
Segment Expectations
For the Intelligent Devices segment, the Zacks Consensus Estimate for first-quarter fiscal 2023 revenues is pegged at $922 million, suggesting an improvement of 2% from the prior-year quarter’s levels. The Zacks Consensus Estimate for operating profit in the segment is pegged at $192 million, suggesting a year-over-year decline of 10%.
The Zacks Consensus Estimate for the Software & Control segment’s sales for the quarter under review is currently at $539 million, suggesting year-over-year growth of 5%. The consensus mark for the segment’s operating profit is pegged at $94 million, indicating a plunge of 20% from the prior-year quarter’s levels.
The consensus mark for the Lifecycle Services segment’s fiscal first-quarter sales is pegged at $452 million, indicating growth of 2% from the year-ago quarter. The segment is expected to generate an operating profit of around $28 million in the quarter, suggesting 14% growth from the prior-year quarter’s $24.5 million.
What the Zacks Model Indicates
Our proven model predicts an earnings beat for Rockwell Automation for the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is precisely the case here.
Earnings ESP: Rockwell Automation has an Earnings ESP of +4.76%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Share Price Performance
Image Source: Zacks Investment Research
In the past year, Rockwell Automation’s shares have lost 13.4% compared with the industry’s 13.5% decline.
Other Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Deere & Co. DE currently has an Earnings ESP of +2.83% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings have moved 2.6% north in the past 60 days and is currently pegged at $5.49 per share. The consensus mark suggests year-over-year growth of 88.1%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s levels. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem XYL currently has an Earnings ESP of +2.10% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been stable in the past 60 days and is currently pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works ITW currently has an Earnings ESP of +1.92% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is currently pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s levels. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong demand for software and cyber security services and a robust order backlog of $5 billion are likely to have aided Rockwell Automation’s fiscal first-quarter top line. The Zacks Consensus Estimate for the Software & Control segment’s sales for the quarter under review is currently at $539 million, suggesting year-over-year growth of 5%. Image Source: Zacks Investment Research In the past year, Rockwell Automation’s shares have lost 13.4% compared with the industry’s 13.5% decline.
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Segment Expectations For the Intelligent Devices segment, the Zacks Consensus Estimate for first-quarter fiscal 2023 revenues is pegged at $922 million, suggesting an improvement of 2% from the prior-year quarter’s levels. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. The same for earnings is pegged at $1.81, suggesting a decrease of 15.4% from the year-ago quarter.
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Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. The same for earnings is pegged at $1.81, suggesting a decrease of 15.4% from the year-ago quarter. Factors to Note Rockwell Automation has been witnessing improvement in order levels in the past few quarters.
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The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s levels. The same for earnings is pegged at $1.81, suggesting a decrease of 15.4% from the year-ago quarter. Factors to Note Rockwell Automation has been witnessing improvement in order levels in the past few quarters.
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99845259-518b-4132-89f2-27547b3ed5e3
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720856.0
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2023-01-23 00:00:00 UTC
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What's in Store for Packaging Corp's (PKG) Q4 Earnings?
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DE
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https://www.nasdaq.com/articles/whats-in-store-for-packaging-corps-pkg-q4-earnings
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Packaging Corporation of America PKG is set to release fourth-quarter 2022 results on Jan 25, after the closing bell.
Q3 Results
In the last reported quarter, Packaging Corp’s earnings were in line with the Zacks Consensus Estimate and increased year over year. Revenues rose on a year-over-year basis but missed the Zacks Consensus Estimate.
PKG has a trailing four-quarter earnings surprise of 13.2%, on average.
Packaging Corporation of America Price and EPS Surprise
Packaging Corporation of America price-eps-surprise | Packaging Corporation of America Quote
Q4 Estimates
The Zacks Consensus Estimate for Packaging Corp’s fourth-quarter earnings per share is pegged at $2.24, suggesting a decline of 18.8% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for total sales is pinned at $2.05 billion, indicating a 0.6% rise from the year-ago quarter’s reported number.
Factors at Play
Packaging Corporation’s fourth-quarter results are expected to reflect the impacts of the weakness in packaging demand as global and domestic economic conditions have been unfavorable due to ongoing inflationary pressures, high interest rates, and supply-chain disruptions. Customers have been working to reduce their high inventory levels, which has been affecting order flow and demand for PKG’s products.
Given that packaging products are essential for the distribution of food, beverage and pharmaceutical products, the demand for these products and growth in e-commerce activities are likely to have aided the performance of the packaging segment. The segment generates around 91% of PKG's revenues.
The fourth quarter had four fewer shipping days than the third quarter, leading to lower total box shipments. Thus, the company anticipated lower sales volumes for the Packaging segment.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $1,905 million, suggesting growth of 1.7% from the year-ago quarter’s reported number. The consensus mark for the segment’s operating income is pinned at $289 million, indicating a fall of 22% from the prior-year reported figure.
In the Paper segment, while the company is likely to have gained from the price increase that took effect in September, volume is likely to have been lower than that in the seasonally stronger third quarter. Scheduled outage expenses are expected to have been higher. Expected higher operating costs, primarily labor and benefit expenses, along with anticipated colder weather resulting in higher energy costs, are expected to have hurt the segment’s profits in the quarter under review.
The Zacks Consensus Estimate for the Paper segment’s revenues is pegged at $152 million for the December-end quarter, suggesting growth of 6.2% from the year-ago reported figure. The Zacks Consensus Estimate for the segment’s operating income is pinned at $28 million, indicating a 33.3% increase from the $21 million reported in the prior-year quarter.
What Our Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Packaging Corp this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: PKG has an Earnings ESP of -0.22%.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Over the past year, shares of Packaging Corp have declined 3% compared with the industry’s fall of 1.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Deere & Co. DE currently has an Earnings ESP of +2.83% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 2.6% north in the past 60 days and is currently pegged at $5.49 per share. The consensus mark suggests year-over-year growth of 88.1%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem XYL currently has an Earnings ESP of +2.10% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 60 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works ITW currently has an Earnings ESP of +1.92% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Packaging Corporation of America (PKG) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for the Paper segment’s revenues is pegged at $152 million for the December-end quarter, suggesting growth of 6.2% from the year-ago reported figure. Packaging Corporation of America Price and EPS Surprise Packaging Corporation of America price-eps-surprise | Packaging Corporation of America Quote Q4 Estimates The Zacks Consensus Estimate for Packaging Corp’s fourth-quarter earnings per share is pegged at $2.24, suggesting a decline of 18.8% from the prior-year quarter’s reported level. Factors at Play Packaging Corporation’s fourth-quarter results are expected to reflect the impacts of the weakness in packaging demand as global and domestic economic conditions have been unfavorable due to ongoing inflationary pressures, high interest rates, and supply-chain disruptions.
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Packaging Corporation of America Price and EPS Surprise Packaging Corporation of America price-eps-surprise | Packaging Corporation of America Quote Q4 Estimates The Zacks Consensus Estimate for Packaging Corp’s fourth-quarter earnings per share is pegged at $2.24, suggesting a decline of 18.8% from the prior-year quarter’s reported level. The consensus mark suggests year-over-year growth of 88.1% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Packaging Corporation of America Price and EPS Surprise Packaging Corporation of America price-eps-surprise | Packaging Corporation of America Quote Q4 Estimates The Zacks Consensus Estimate for Packaging Corp’s fourth-quarter earnings per share is pegged at $2.24, suggesting a decline of 18.8% from the prior-year quarter’s reported level. The consensus mark suggests year-over-year growth of 88.1% The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Packaging Corporation of America Price and EPS Surprise Packaging Corporation of America price-eps-surprise | Packaging Corporation of America Quote Q4 Estimates The Zacks Consensus Estimate for Packaging Corp’s fourth-quarter earnings per share is pegged at $2.24, suggesting a decline of 18.8% from the prior-year quarter’s reported level. Factors at Play Packaging Corporation’s fourth-quarter results are expected to reflect the impacts of the weakness in packaging demand as global and domestic economic conditions have been unfavorable due to ongoing inflationary pressures, high interest rates, and supply-chain disruptions. Customers have been working to reduce their high inventory levels, which has been affecting order flow and demand for PKG’s products.
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720857.0
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2023-01-20 00:00:00 UTC
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Analysts Forecast 11% Upside For The Holdings of FXR
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https://www.nasdaq.com/articles/analysts-forecast-11-upside-for-the-holdings-of-fxr
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Industrials/Producer Durables AlphaDEX Fund ETF (Symbol: FXR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $58.93 per unit.
With FXR trading at a recent price near $53.05 per unit, that means that analysts see 11.08% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FXR's underlying holdings with notable upside to their analyst target prices are Spirit AeroSystems Holdings Inc (Symbol: SPR), Deere & Co. (Symbol: DE), and Dover Corp (Symbol: DOV). Although SPR has traded at a recent price of $32.57/share, the average analyst target is 13.60% higher at $37.00/share. Similarly, DE has 12.42% upside from the recent share price of $408.60 if the average analyst target price of $459.35/share is reached, and analysts on average are expecting DOV to reach a target price of $151.00/share, which is 11.13% above the recent price of $135.88. Below is a twelve month price history chart comparing the stock performance of SPR, DE, and DOV:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $53.05 $58.93 11.08%
Spirit AeroSystems Holdings Inc SPR $32.57 $37.00 13.60%
Deere & Co. DE $408.60 $459.35 12.42%
Dover Corp DOV $135.88 $151.00 11.13%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Funds Holding AKYA
GENC Insider Buying
Funds Holding GSAQ
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $53.05 $58.93 11.08% Spirit AeroSystems Holdings Inc SPR $32.57 $37.00 13.60% Deere & Co. DE $408.60 $459.35 12.42% Dover Corp DOV $135.88 $151.00 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? 10 ETFs With Most Upside To Analyst Targets » Also see: Funds Holding AKYA GENC Insider Buying Funds Holding GSAQ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three of FXR's underlying holdings with notable upside to their analyst target prices are Spirit AeroSystems Holdings Inc (Symbol: SPR), Deere & Co. (Symbol: DE), and Dover Corp (Symbol: DOV). Similarly, DE has 12.42% upside from the recent share price of $408.60 if the average analyst target price of $459.35/share is reached, and analysts on average are expecting DOV to reach a target price of $151.00/share, which is 11.13% above the recent price of $135.88. First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $53.05 $58.93 11.08% Spirit AeroSystems Holdings Inc SPR $32.57 $37.00 13.60% Deere & Co. DE $408.60 $459.35 12.42% Dover Corp DOV $135.88 $151.00 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, DE has 12.42% upside from the recent share price of $408.60 if the average analyst target price of $459.35/share is reached, and analysts on average are expecting DOV to reach a target price of $151.00/share, which is 11.13% above the recent price of $135.88. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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For the First Trust Industrials/Producer Durables AlphaDEX Fund ETF (Symbol: FXR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $58.93 per unit. With FXR trading at a recent price near $53.05 per unit, that means that analysts see 11.08% upside for this ETF looking through to the average analyst targets of the underlying holdings. First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $53.05 $58.93 11.08% Spirit AeroSystems Holdings Inc SPR $32.57 $37.00 13.60% Deere & Co. DE $408.60 $459.35 12.42% Dover Corp DOV $135.88 $151.00 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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8af2e22b-7d84-4349-a907-d20f1876fec6
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720858.0
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2023-01-20 00:00:00 UTC
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Why Deere (DE) is a Top Value Stock for the Long-Term
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DE
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https://www.nasdaq.com/articles/why-deere-de-is-a-top-value-stock-for-the-long-term-0
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Deere (DE)
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. It is the 6775-largest company in the S&P 500 Index with a market capitalization of around $121 billion. It has an advantage in most farm machinery categories as its machines come with advanced features and are better constructed than its competitors. Deere is currently the world leader in precision agriculture and remains focused on revolutionizing agriculture with technology, in an effort to make farming automated, easier and more precise across the production process.
DE is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.67; value investors should take notice.
10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $1.36 to $27.86 per share. DE boasts an average earnings surprise of 7.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, DE should be on investors' short list.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. It also includes access to the Zacks Style Scores.
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Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio. For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
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b6d7d0cb-40fa-4ac5-99c0-5c1a3d15cab4
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720859.0
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2023-01-20 00:00:00 UTC
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Here's Why Trimble Is a No-Brainer Growth Stock
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DE
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https://www.nasdaq.com/articles/heres-why-trimble-is-a-no-brainer-growth-stock
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nan
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nan
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If there's one metric that most successful stocks must have, it's margin expansion. In general, investors should avoid businesses with declining profit margins and buy businesses with rising or potentially rising profit margins.
That's why I think there's a strong case for buying shares in industrial technology company Trimble (NASDAQ: TRMB). Despite some potential near-term headwinds from a slowdown in the economy, the stock looks like a tremendous long-term value, and the 28% decline in the share price over the last year means a lot of the bad news is already priced in.
Trimble's margin expansion plans
Before getting to how Trimble can expand margins, here's a quick look at operating margin progression on a historical and projected basis. Again, there's a general uptrend, and if management can hit its 26% to 27% target by 2027, investors can expect substantial earnings and cash flow growth on the back of revenue expansion.
Data sources: Trimble presentations, marketscreener.com.
How Trimble can expand profit margins
There are two essential parts:
An ongoing shift in the revenue mix from lower-margin hardware to higher-margin software, services, and recurring revenue.
A shift in the software mix toward recurring software rather than perpetual software -- a change that results in greater long-term revenue and earnings generation.
Now, I know what you are thinking, and you would be right. There are no shortages of software companies with the promise of margin expansion via shifting to a subscription/recurring-based model.
But here's the thing. The critical point about the company's margin expansion potential is that it's an intrinsic part of the changing nature of its business. Moreover, management can point to clear progression on the matter.
For example, in 2011, Trimble generated $1.64 billion in revenue, with only 20.1% coming from what it defines as software/services/recurring revenue. By 2021 that ratio was up to 55% on $3.66 billion in revenue -- more on why Trimble can increase that in a moment.
Turning to the second bullet point, Trimble has largely completed selling its software model conversions to recurring sales, such that it only sold around $65 million in perpetual software on a "sold alone" basis in 2022, compared to $186 million in 2017. However, it has about $435 million in sales from perpetual software sold as part of a bundle with hardware.
As such, Trimble has an opportunity to transition the sales of hardware plus perpetual software into either sales of hardware and recurring software or a "full-service bundle" encompassing hardware and software paid for on a recurring basis.
Why Trimble's margin expansion is intrinsic to its business evolution
Trimble's origins lie in hardware to help companies and governmental bodies with positioning data. Its four main end markets are construction and infrastructure, geospatial mapping, transportation, and agriculture. For example, you could think of a surveyor on a road project needing precise points, trucking fleets needing routing plans, or the digital mapping of the earth.
However, given advances in digital technology, Trimble has an opportunity to become an increasing part of its customers' daily workflow, which implies a significant opportunity to grow software and service sales.
In plain English, Trimble can move beyond merely positioning and sensing toward more modeling and analyzing data to help support planning and decision-making.
For example, fleet routes can be optimized using real-time data and modeling transportation, making the fleet more productive. In addition, precise monitoring of construction/infrastructure projects can significantly reduce waste and ensure the timely and efficient completion of the project. Deere investors already know about the revolution in precision agriculture and how it's helping to improve decision-making in an industry fraught with uncertainty from planning through seeding, nurturing, and harvesting.
This shift can also be seen in the recent announcement of an agreement to buy cloud-based transportation management software company Transporeon for 1.88 billion euros -- a business with 90% of its revenue recurring.
A stock to buy for 2023
Trimble's revenue growth and margin expansion prospects are real and closely related to the natural evolution of its business. The same Wall Street forecasts I referred to earlier call for free cash flow (FCF) of around $750 million by the end of 2023 as the company, hopefully, overcomes the supply chain constraints that crimped margins in 2022.
It's a figure putting Trimble on 18 times 2023 FCF -- an excellent valuation for a company with such attractive revenue growth and margin expansion prospects.
10 stocks we like better than Trimble
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Trimble wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 9, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Deere and Trimble. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In general, investors should avoid businesses with declining profit margins and buy businesses with rising or potentially rising profit margins. Despite some potential near-term headwinds from a slowdown in the economy, the stock looks like a tremendous long-term value, and the 28% decline in the share price over the last year means a lot of the bad news is already priced in. There are no shortages of software companies with the promise of margin expansion via shifting to a subscription/recurring-based model.
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In general, investors should avoid businesses with declining profit margins and buy businesses with rising or potentially rising profit margins. Despite some potential near-term headwinds from a slowdown in the economy, the stock looks like a tremendous long-term value, and the 28% decline in the share price over the last year means a lot of the bad news is already priced in. There are no shortages of software companies with the promise of margin expansion via shifting to a subscription/recurring-based model.
|
In general, investors should avoid businesses with declining profit margins and buy businesses with rising or potentially rising profit margins. Despite some potential near-term headwinds from a slowdown in the economy, the stock looks like a tremendous long-term value, and the 28% decline in the share price over the last year means a lot of the bad news is already priced in. There are no shortages of software companies with the promise of margin expansion via shifting to a subscription/recurring-based model.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. In general, investors should avoid businesses with declining profit margins and buy businesses with rising or potentially rising profit margins. Despite some potential near-term headwinds from a slowdown in the economy, the stock looks like a tremendous long-term value, and the 28% decline in the share price over the last year means a lot of the bad news is already priced in.
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2d6b72fe-a45a-484a-b5f9-0bfdaa306859
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720860.0
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2023-01-19 00:00:00 UTC
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See Which Of The Latest 13F Filers Holds Deere & Co.
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DE
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https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-deere-co.-2
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nan
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nan
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At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 15 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in DE positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Kingfisher Capital LLC Existing +350 +$1,326
Seelaus Asset Management LLC Existing -85 +$63
Procyon Advisors LLC Existing +2,787 +$1,590
Iron Horse Wealth Management LLC Existing +524 +$234
Marion Wealth Management Existing +285 +$375
Xcel Wealth Management LLC Existing UNCH +$145
Morris Financial Concepts Inc. Existing UNCH +$73
Fiduciary Alliance LLC NEW +48 +$21
Fundamentun LLC NEW +2,427 +$1,041
Stratos Wealth Advisors LLC Existing -51 +$171
Stratos Wealth Partners LTD. Existing -677 +$517
Tsfg LLC Existing UNCH +$20
Plimoth Trust Co. LLC Existing -415 +$350
MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH Existing -152 +$2,207
Eagle Ridge Investment Management Existing UNCH +$218
Aggregate Change: +5,041 +$8,351
In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 09/30/2022 to 12/31/2022, with 5 having decreased their positions and 2 new positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the DE share count in the aggregate among all of the funds which held DE at the 12/31/2022 reporting period (out of the 637 we looked at in total). We then compared that number to the sum total of DE shares those same funds held back at the 09/30/2022 period, to see how the aggregate share count held by hedge funds has moved for DE. We found that between these two periods, funds increased their holdings by 57,661 shares in the aggregate, from 2,074,159 up to 2,131,820 for a share count increase of approximately 2.78%. The overall top three funds holding DE on 12/31/2022 were:
» FUND SHARES OF DE HELD
1. Bartlett & Co. LLC 200,004
2. DNB Asset Management AS 127,036
3. UMB Bank n.a. 113,824
4-10 Find out the full Top 10 Hedge Funds Holding DE »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Deere & Co. (Symbol: DE).
10 S&P 500 Components Hedge Funds Are Buying »
Also see:
SOXQ Options Chain
BLFY Videos
SIJ market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 15 of these funds. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Deere & Co. (Symbol: DE).
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Existing -677 +$517 Tsfg LLC Existing UNCH +$20 Plimoth Trust Co. LLC Existing -415 +$350 MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH Existing -152 +$2,207 Eagle Ridge Investment Management Existing UNCH +$218 Aggregate Change: +5,041 +$8,351 In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 09/30/2022 to 12/31/2022, with 5 having decreased their positions and 2 new positions. At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 15 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
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Existing -677 +$517 Tsfg LLC Existing UNCH +$20 Plimoth Trust Co. LLC Existing -415 +$350 MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH Existing -152 +$2,207 Eagle Ridge Investment Management Existing UNCH +$218 Aggregate Change: +5,041 +$8,351 In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 09/30/2022 to 12/31/2022, with 5 having decreased their positions and 2 new positions. 113,824 4-10 Find out the full Top 10 Hedge Funds Holding DE » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 15 of these funds.
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At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 15 of these funds. 113,824 4-10 Find out the full Top 10 Hedge Funds Holding DE » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
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b765f69c-79e5-4c57-b5a0-3ba78dfd7d40
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720861.0
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2023-01-19 00:00:00 UTC
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Interesting DE Put And Call Options For September 15th
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DE
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https://www.nasdaq.com/articles/interesting-de-put-and-call-options-for-september-15th
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the September 15th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 239 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new September 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $410.00 strike price has a current bid of $31.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $410.00, but will also collect the premium, putting the cost basis of the shares at $378.95 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $414.51/share today.
Because the $410.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.57% return on the cash commitment, or 11.57% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $410.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $420.00 strike price has a current bid of $40.55. If an investor was to purchase shares of DE stock at the current price level of $414.51/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $420.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.11% if the stock gets called away at the September 15th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $420.00 strike highlighted in red:
Considering the fact that the $420.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 9.78% boost of extra return to the investor, or 14.94% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $414.51) to be 35%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
CPK Stock Predictions
SBEA Options Chain
Funds Holding PSAG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $420.00 strike highlighted in red: Considering the fact that the $420.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the September 15th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $420.00 strike highlighted in red: Considering the fact that the $420.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the September 15th expiration.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $410.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $420.00 strike price has a current bid of $40.55. Below is a chart showing DE's trailing twelve month trading history, with the $420.00 strike highlighted in red: Considering the fact that the $420.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new September 15th contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $420.00 strike highlighted in red: Considering the fact that the $420.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the September 15th expiration.
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b01976f5-f030-4955-8170-c61975035869
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720862.0
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2023-01-19 00:00:00 UTC
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VONG, MA, PEP, DE: Large Inflows Detected at ETF
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DE
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https://www.nasdaq.com/articles/vong-ma-pep-de%3A-large-inflows-detected-at-etf
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $530.2 million dollar inflow -- that's a 5.9% increase week over week in outstanding units (from 157,306,844 to 166,631,844). Among the largest underlying components of VONG, in trading today Mastercard Inc (Symbol: MA) is down about 0.2%, PepsiCo Inc (Symbol: PEP) is down about 0.4%, and Deere & Co. (Symbol: DE) is lower by about 2.1%. For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average:
Looking at the chart above, VONG's low point in its 52 week range is $51.98 per share, with $73.45 as the 52 week high point — that compares with a last trade of $56.43. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Vulcan Materials 13F Filers
BNY market cap history
GTT Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs had notable inflows » Also see: Vulcan Materials 13F Filers BNY market cap history GTT Insider Buying The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of VONG, in trading today Mastercard Inc (Symbol: MA) is down about 0.2%, PepsiCo Inc (Symbol: PEP) is down about 0.4%, and Deere & Co. (Symbol: DE) is lower by about 2.1%. For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $51.98 per share, with $73.45 as the 52 week high point — that compares with a last trade of $56.43. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $530.2 million dollar inflow -- that's a 5.9% increase week over week in outstanding units (from 157,306,844 to 166,631,844). For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $51.98 per share, with $73.45 as the 52 week high point — that compares with a last trade of $56.43. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $530.2 million dollar inflow -- that's a 5.9% increase week over week in outstanding units (from 157,306,844 to 166,631,844). For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average: Looking at the chart above, VONG's low point in its 52 week range is $51.98 per share, with $73.45 as the 52 week high point — that compares with a last trade of $56.43. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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720863.0
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2023-01-19 00:00:00 UTC
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Want Better Returns? Don?t Ignore These 2 Industrial Products Stocks Set to Beat Earnings
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DE
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https://www.nasdaq.com/articles/want-better-returns-dont-ignore-these-2-industrial-products-stocks-set-to-beat-earnings
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Deere?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Deere (DE) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $5.64 a share, just 29 days from its upcoming earnings release on February 17, 2023.
Deere's Earnings ESP sits at +2.83%, which, as explained above, is calculated by taking the percentage difference between the $5.64 Most Accurate Estimate and the Zacks Consensus Estimate of $5.49. DE is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DE is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Terex (TEX) as well.
Terex is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on February 9, 2023. TEX's Most Accurate Estimate sits at $1.13 a share 21 days from its next earnings release.
Terex's Earnings ESP figure currently stands at +0.12% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.13.
DE and TEX's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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Deere & Company (DE) : Free Stock Analysis Report
Terex Corporation (TEX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Terex (TEX) as well. DE and TEX's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report To read this article on Zacks.com click here. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
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The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market.
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Deere (DE) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $5.64 a share, just 29 days from its upcoming earnings release on February 17, 2023. DE and TEX's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
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2130c35b-2569-4604-8c50-d93c27170257
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720864.0
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2023-01-18 00:00:00 UTC
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Deere & Company (DE) Is a Trending Stock: Facts to Know Before Betting on It
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https://www.nasdaq.com/articles/deere-company-de-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-0
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Deere (DE) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this agricultural equipment manufacturer have returned +0.7% over the past month versus the Zacks S&P 500 composite's +3.8% change. The Zacks Manufacturing - Farm Equipment industry, to which Deere belongs, has gained 2.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Deere is expected to post earnings of $5.49 per share for the current quarter, representing a year-over-year change of +88%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.2%.
The consensus earnings estimate of $27.84 for the current fiscal year indicates a year-over-year change of +19.6%. This estimate has changed +0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $28.99 indicates a change of +4.1% from what Deere is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Deere, the consensus sales estimate for the current quarter of $11.42 billion indicates a year-over-year change of +33.8%. For the current and next fiscal years, $54.27 billion and $54.96 billion estimates indicate +13.3% and +1.3% changes, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $14.35 billion in the last reported quarter, representing a year-over-year change of +39.7%. EPS of $7.44 for the same period compares with $4.12 a year ago.
Compared to the Zacks Consensus Estimate of $13.64 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +5.08%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. Deere (DE) has recently been on Zacks.com's list of the most searched stocks.
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Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #2 (Buy). While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) has recently been on Zacks.com's list of the most searched stocks.
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Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #2 (Buy). While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) has recently been on Zacks.com's list of the most searched stocks.
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Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #2 (Buy). Deere (DE) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
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720865.0
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2023-01-18 00:00:00 UTC
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Amcor (AMCR) Grows Presence in China With MDK Acquisition
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https://www.nasdaq.com/articles/amcor-amcr-grows-presence-in-china-with-mdk-acquisition
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Amcor plc AMCR announced that it entered an agreement to acquire the Shanghai-based provider of medical device packaging, MDK. The acquisition will help solidify Amcor’s already strong healthcare platform in the Asia Pacific region.
The companies expect the deal to close in the March-end quarter of 2023. The transaction is subject to customary regulatory approvals.
MDK’s coating capabilities, medical paper-based packaging offerings and customer base bode well with Amcor's existing portfolio. The acquisition will also strengthen Amcor's presence in the China medical device packaging market.
In a bid to expand its footprint in the Asia Pacific region, Amcor previously unveiled a cutting-edge facility for healthcare packaging in Singapore in December 2021 and a world-class Asia Pacific Innovation Center in Jiangyin, China, in August 2022. Amcor's Asia Pacific medical packaging segment currently consists of four manufacturing facilities serving the markets of China, India, Japan and Southeast Asia.
Backed by its strong balance sheet and an annual free cash flow of above $1 billion, Amcor continues to invest in growth and expand capacity in higher growth, higher value-added and more packaging-intensive segments.
In the first quarter of fiscal 2023, AMCR reported adjusted earnings per share of 18 cents. The bottom line was in line with the year-ago quarter. However, the same missed the Zacks Consensus Estimate of 19 cents. Total revenues were $3.7 billion in the reported quarter, beating the Zacks Consensus Estimate of $3.5 billion. This compared favorably with the prior-year quarter’s $3.4 billion.
The company expects adjusted comparable constant-currency EPS growth of 3-8% for fiscal 2023. Amcor revised the adjusted EPS expectation to 77-81 cents from the previously stated 80-84 cents.
Price Performance
In the past year, Amcor’s shares have lost 2.1% compared with the industry’s fall of 2.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Deere & Company DE, and O-I Glass, Inc. OI. KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, and DE and OI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 15.6% in a year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 5.2% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 16.6% in the last year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 30.9% in the last year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
OI Glass, Inc. (OI) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Amcor PLC (AMCR) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amcor plc AMCR announced that it entered an agreement to acquire the Shanghai-based provider of medical device packaging, MDK. MDK’s coating capabilities, medical paper-based packaging offerings and customer base bode well with Amcor's existing portfolio. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year.
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Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Amcor currently carries a Zacks Rank #4 (Sell). KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, and DE and OI carry a Zacks Rank #2 (Buy). Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Amcor currently carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. Amcor plc AMCR announced that it entered an agreement to acquire the Shanghai-based provider of medical device packaging, MDK. The companies expect the deal to close in the March-end quarter of 2023.
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720866.0
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2023-01-18 00:00:00 UTC
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5 Industrial Stocks Set to Beat Q4 Earnings Estimates
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https://www.nasdaq.com/articles/5-industrial-stocks-set-to-beat-q4-earnings-estimates
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The Zacks Industrial Products sector’s fourth-quarter 2022 performance is likely to have been driven by strength in demand across several end markets. However, persistent supply chain constraints and labor and logistics challenges might have impaired players’ ability to meet the high demand levels. Signs of easing supply-chain issues through the quarter instill hope. While inflationary cost pressure, primarily stemming from raw material, energy and freight, is likely to have dented margins, cost control measures and pricing actions exercised by sector participants are expected to have negated these impacts on their margins.
Around 4% of the companies within the Industrial Products sector have reported fourth-quarter earnings numbers so far, with a 100% beat on both earnings and revenues. Earnings increased 9.8% year over year on 13.2% higher revenues. It is too soon to draw a conclusion with the major chunk of companies yet to report. Of these, Caterpillar Inc. CAT, Deere & Company DE, Illinois Tool Works ITW, Parker–Hannifin PH and Xylem Inc. XYL are some of the prominent players, which are poised to deliver an earnings beat this season.
Expectations For the Sector for Q4
Per the latest Earnings Trends report, the Industrial Sector is likely to deliver 11.6% growth in earnings for the fourth quarter of 2022 on the back of an 8.4% sales increase. The projected growth reflects a deceleration from a 20.5% rise in earnings on a 14.5% increase in revenues in the third quarter. Nevertheless, the sector is one of the eight sectors that are expected to post growth this earnings season. This is commendable, considering the inflationary scenario and the supply chain snarls.
Factors at Play During the Quarter
Per the Federal Reserve, industrial production decreased 0.2% in November 2022. Manufacturing output dipped 0.6% for the month but remained 1.2% above last year. Overall, industrial production gained 2.5% over the 12-month period that ended November 2022. In December, the Institute for Supply Management’s (ISM) manufacturing index touched 48.9%, contracting for the second month in a row. The average for the past 12 months (ended December 2022), however, stood at 53.5%. Amid the ongoing uncertainty in the global economy and persisting inflationary trends, some customers have been curbing spending.
The manufacturing sector had been bearing the brunt of the supply-chain issues. Some of the industry players recently noted that the supply-chain situation is gradually improving. The delivery performance of suppliers to manufacturing organizations was reported to be faster for the third straight month in December.
Strength across end-markets such as agriculture, construction, mining, transportation, gas utilities and energy transition is likely to have aided the performances of the industrial companies in the December ended quarter. Stable packaging demand for food, beverages and medicines and rise in e-commerce activities are likely to have aided the performance of companies engaged in the production of packaging materials. Solid backlog levels, cost-control measures, effective pricing and operational execution are expected to have favored performance in the to-be-reported quarter.
How to Pick Winners?
Given the large number of players operating in the industrial products space, picking the right stocks is not an easy task. But our proven model makes it fairly simple. One can shortlist with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they report earnings with our Earnings ESP Filter.
Earnings ESP — the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate — is our proprietary methodology for determining the stocks with maximum chances of delivering positive earnings surprises in their next announcements. Our research shows that for stocks with this perfect combination, the chances of a beat are as high as 70%.
Our Choices
Below we list five industrial stocks that have the right mix of elements to pull off positive surprises this earnings season.
Caterpillar has an Earnings ESP of +1.14% and a Zacks Rank #3. CAT is slated to release fourth-quarter 2022 earnings numbers on Jan 31, before market open. The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 14.7%.
Caterpillar Inc. Price and EPS Surprise
Caterpillar Inc. price-eps-surprise | Caterpillar Inc. Quote
Caterpillar’s results are the most watched in the sector as it is considered a bellwether for the global economy. The world's largest manufacturer of heavy industrial equipment has delivered year-over-year improvement in revenues and earnings for seven straight quarters, thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply chain issues and cost pressure. Its fourth-quarter results are likely to reflect these factors as well. Also, the company ended the third quarter of 2022 with an impressive backlog of $30 billion, which is also likely to have boosted the fourth quarter top-line. The fourth quarter of the year is historically the strongest quarter for CAT in terms of sales due to seasonal factors.
Deere has an Earnings ESP of +2.83% and a Zacks Rank #2. It is slated to release first-quarter fiscal 2023 results on Feb 17, before market open. The company has a four-quarter trailing average earnings surprise of 7%.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
Deere’s results are likely to reflect the favorable farm fundamentals. Improved commodity prices and the consequent improvement in farm income are likely to have made farmers spend more on agricultural equipment. This is likely to have translated into improved order levels for Deere. Strong replacement demand is also expected to have boosted its top line. While supply-chain issues, high production costs, are likely to have impacted the company’s margin in the quarter, favorable price realization and higher shipment volumes/sales mix are expected to have negated some of these headwinds.
Illinois Tool Works has an Earnings ESP of +2.24% and a Zacks Rank #3. ITW is scheduled to release fourth-quarter 2022 earnings on Feb 2. The company has a four-quarter trailing average earnings surprise of 4.2%.
Illinois Tool Works Inc. Price and EPS Surprise
Illinois Tool Works Inc. price-eps-surprise | Illinois Tool Works Inc. Quote
Illinois Tool’s results for the quarter under review are likely to reflect strong demand in semiconductor businesses, equipment as well as consumables manufacturing operations. Continued strength in industrial applications, construction, U.S. residential and commercial end-markets bode well for the fourth-quarter results. Contributions from recent acquisitions are also likely to have supported results. While supply chain disruptions and raw material cost inflation remained headwinds, pricing actions are expected to have offset some of the impact on margins.
Xylem has an Earnings ESP of +1.27% and a Zacks Rank #2. The company is scheduled to release fourth-quarter 2022 earnings on Feb 7. The company has a four-quarter trailing average earnings surprise of 13.3%.
Xylem Inc. Price and EPS Surprise
Xylem Inc. price-eps-surprise | Xylem Inc. Quote
Xylem’s fourth-quarter performance is expected to have been aided by its strong backlog levels and solid demand across its end markets. Due to the essential nature of its business, demand remains robust. Its Water Infrastructure segment is benefiting from effective price realization and robust transport demand in Western Europe. The Applied Water segment is expected to have gained from strong price realization and backlog execution in industrial, commercial and residential end markets. Measurement & Control Solutions is likely to have benefited from robust demand in the advanced metering infrastructure (AMI) end market and modest improvement in chip supply. Pricing actions to mitigate cost inflation and gradual easing of supply-chain constraints are likely to have benefited its bottom line.
Parker–Hannifin has an Earnings ESP of +0.21% and a Zacks Rank #3. PH is expected to release second-quarter fiscal 2023 earnings on Feb 2. The company has a four-quarter trailing average earnings surprise of 11.3%.
ParkerHannifin Corporation Price and EPS Surprise
ParkerHannifin Corporation price-eps-surprise | ParkerHannifin Corporation Quote
PH’s quarterly performance is likely to have been aided by strong demand across end markets and higher order levels. The company is also expected to have gained from its unique Win Strategy (version 3.0 launched in fiscal 2020), which focuses on innovation, strategic positioning, distribution growth and incentive plan changes to drive organic growth. The Win strategy has been supporting the company’s margin expansion. PH’s effective pricing and supply-chain management actions are also expected to have negated the impact of high costs in the quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
ParkerHannifin Corporation (PH) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of these, Caterpillar Inc. CAT, Deere & Company DE, Illinois Tool Works ITW, Parker–Hannifin PH and Xylem Inc. XYL are some of the prominent players, which are poised to deliver an earnings beat this season. Strength across end-markets such as agriculture, construction, mining, transportation, gas utilities and energy transition is likely to have aided the performances of the industrial companies in the December ended quarter. The Zacks Industrial Products sector’s fourth-quarter 2022 performance is likely to have been driven by strength in demand across several end markets.
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Illinois Tool Works Inc. Price and EPS Surprise Illinois Tool Works Inc. price-eps-surprise | Illinois Tool Works Inc. Quote Illinois Tool’s results for the quarter under review are likely to reflect strong demand in semiconductor businesses, equipment as well as consumables manufacturing operations. Xylem Inc. Price and EPS Surprise Xylem Inc. price-eps-surprise | Xylem Inc. Quote Xylem’s fourth-quarter performance is expected to have been aided by its strong backlog levels and solid demand across its end markets. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ParkerHannifin Corporation (PH) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Expectations For the Sector for Q4 Per the latest Earnings Trends report, the Industrial Sector is likely to deliver 11.6% growth in earnings for the fourth quarter of 2022 on the back of an 8.4% sales increase. The world's largest manufacturer of heavy industrial equipment has delivered year-over-year improvement in revenues and earnings for seven straight quarters, thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply chain issues and cost pressure. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ParkerHannifin Corporation (PH) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Industrial Products sector’s fourth-quarter 2022 performance is likely to have been driven by strength in demand across several end markets. However, persistent supply chain constraints and labor and logistics challenges might have impaired players’ ability to meet the high demand levels. While inflationary cost pressure, primarily stemming from raw material, energy and freight, is likely to have dented margins, cost control measures and pricing actions exercised by sector participants are expected to have negated these impacts on their margins.
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2023-01-17 00:00:00 UTC
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Notable Tuesday Option Activity: PHM, DE, UNH
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in PulteGroup Inc (Symbol: PHM), where a total volume of 17,710 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 95.3% of PHM's average daily trading volume over the past month, of 1.9 million shares. Particularly high volume was seen for the $40 strike put option expiring April 21, 2023, with 8,496 contracts trading so far today, representing approximately 849,600 underlying shares of PHM. Below is a chart showing PHM's trailing twelve month trading history, with the $40 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 9,782 contracts thus far today. That number of contracts represents approximately 978,200 underlying shares, working out to a sizeable 82.8% of DE's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $445 strike call option expiring January 27, 2023, with 2,543 contracts trading so far today, representing approximately 254,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $445 strike highlighted in orange:
And UnitedHealth Group Inc (Symbol: UNH) options are showing a volume of 25,775 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 79.3% of UNH's average daily trading volume over the past month, of 3.3 million shares. Particularly high volume was seen for the $500 strike call option expiring January 20, 2023, with 3,609 contracts trading so far today, representing approximately 360,900 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $500 strike highlighted in orange:
For the various different available expirations for PHM options, DE options, or UNH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
SMAP market cap history
IZEA Options Chain
Top Ten Hedge Funds Holding IYZ
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $40 strike put option expiring April 21, 2023, with 8,496 contracts trading so far today, representing approximately 849,600 underlying shares of PHM. Especially high volume was seen for the $445 strike call option expiring January 27, 2023, with 2,543 contracts trading so far today, representing approximately 254,300 underlying shares of DE. Particularly high volume was seen for the $500 strike call option expiring January 20, 2023, with 3,609 contracts trading so far today, representing approximately 360,900 underlying shares of UNH.
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Below is a chart showing PHM's trailing twelve month trading history, with the $40 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 9,782 contracts thus far today. That number of contracts represents approximately 978,200 underlying shares, working out to a sizeable 82.8% of DE's average daily trading volume over the past month, of 1.2 million shares. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 79.3% of UNH's average daily trading volume over the past month, of 3.3 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in PulteGroup Inc (Symbol: PHM), where a total volume of 17,710 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $445 strike call option expiring January 27, 2023, with 2,543 contracts trading so far today, representing approximately 254,300 underlying shares of DE. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 79.3% of UNH's average daily trading volume over the past month, of 3.3 million shares.
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That number of contracts represents approximately 978,200 underlying shares, working out to a sizeable 82.8% of DE's average daily trading volume over the past month, of 1.2 million shares. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 79.3% of UNH's average daily trading volume over the past month, of 3.3 million shares. Below is a chart showing UNH's trailing twelve month trading history, with the $500 strike highlighted in orange: For the various different available expirations for PHM options, DE options, or UNH options, visit StockOptionsChannel.com.
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2023-01-17 00:00:00 UTC
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The Zacks Analyst Blog Highlights AMN Healthcare Services, Clarivate, Core & Main, CRH and Deere & Co.
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For Immediate Release
Chicago, IL – January 17, 2023 – 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: AMN Healthcare Services AMN, Clarivate CLVT, Core & Main CNM, CRH CRH and Deere & Co. DE.
Here are highlights from Monday’s Analyst Blog:
Wall Street Books Best Week Since November: 5 Growth Picks
The three major benchmarks opened lower on Jan 13 but, in due course, bounced back and finished the trading session in the green. The Dow, the S&P 500 and the Nasdaq notched their best weekly percentage gains in two months.
For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%. The 30-stock Dow and the broader S&P 500 also advanced 2% and 2.7%, respectively, for the week. The Nasdaq and the S&P 500, too, booked their second successive positive week.
An encouraging reading on consumer sentiment in the United States lifted investors' sentiment. The University of Michigan's preliminary report showed that its consumer sentiment index increased to 64.6 in January from 59.7 in the prior month, its highest level since April. Moreover, the reading was more than analysts' expectations of an increase to 60.7.
At the same time, the University of Michigan's index that measures present economic conditions increased sharply to 68.6 this month from 59.4 in December. In reality, consumers' assessment of economic conditions improved mostly due to easing inflation. Lest we forget, consumer sentiment had tanked for most of last year as inflation spiked to a record high and weighed on real income, impacting household's living standards.
Nonetheless, consumer-price growth eased in December for the sixth straight month. The consumer price index (CPI) advanced 6.5% on a year-over-year basis last month, less than November's annual increase of 7.1%, and well below June's peak of 9.1%, per the U.S. Bureau of Labor Statistics.
Now, with inflation easing, market participants assume that the Federal Reserve will cut interest rates this year. The central bank, at present, is widely expected to hike interest rates by only a quarter of a percentage point in the February meeting. But that's down from a 50 basis points increase in December, which followed a 75-basis points rate hike four times in a row.
Again, a less aggressive Fed bodes well for the stock market. This is because rate hikes last year had impacted market returns since they increased borrowing costs and curbed consumer outlays. Thus, with consumer sentiments improving amid falling inflation and fewer rate hike expectations, the stock market is surely poised to give better returns this year than last year.
Hence, investors should place their bets on growth stocks. We have, therefore, highlighted five stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and have a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today's Zacks Rank #1 stocks here.
AMN Healthcare Services is a travel healthcare staffing company. AMN has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.1% over the past 60 days. The company's expected earnings growth rate for the current year is nearly 44%.
Clarivate operates as an information services and analytics company. CLVT has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.3% over the past 60 days. The company's expected earnings growth rate for the current year is 12.5%.
Core & Main is a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services. CNM has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 10.8% over the past 60 days. The company's expected earnings growth rate for the current year is 159%.
CRH manufactures cement, concrete products, aggregates, roofing, insulation, and other building materials. CRH has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 13.5% over the past 60 days. The company's expected earnings growth rate for the current year is 19%.
Deere & Co. is the world's largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. DE has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.8% over the past 60 days. The company's expected earnings growth rate for the current year is 19.6%.
Why Haven't You Looked at Zacks' Top Stocks?
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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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.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
>>Yes, I Want to Help Protect My Portfolio During the Recession
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
Deere & Company (DE) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
CRH PLC (CRH) : Free Stock Analysis Report
Clarivate PLC (CLVT) : Free Stock Analysis Report
Core & Main, Inc. (CNM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The consumer price index (CPI) advanced 6.5% on a year-over-year basis last month, less than November's annual increase of 7.1%, and well below June's peak of 9.1%, per the U.S. Bureau of Labor Statistics. Stocks recently featured in the blog include: AMN Healthcare Services AMN, Clarivate CLVT, Core & Main CNM, CRH CRH and Deere & Co. DE. For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%.
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Stocks recently featured in the blog include: AMN Healthcare Services AMN, Clarivate CLVT, Core & Main CNM, CRH CRH and Deere & Co. DE. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report Core & Main, Inc. (CNM) : Free Stock Analysis Report To read this article on Zacks.com click here. For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report Core & Main, Inc. (CNM) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: AMN Healthcare Services AMN, Clarivate CLVT, Core & Main CNM, CRH CRH and Deere & Co. DE. For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%.
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Stocks recently featured in the blog include: AMN Healthcare Services AMN, Clarivate CLVT, Core & Main CNM, CRH CRH and Deere & Co. DE. For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%. The 30-stock Dow and the broader S&P 500 also advanced 2% and 2.7%, respectively, for the week.
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2023-01-16 00:00:00 UTC
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Caterpillar (CAT) Hits 52-Week High: What's Driving the Stock?
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Shares of Caterpillar Inc. CAT scaled a new 52-week high of $258.58 on Jan 13, before closing the session a tad lower at $258.46.
CAT has a market capitalization of around $134.5 billion. Over the past year, the CAT stock has gained 12.9% against the 11.2% growth of the industry. The S&P 500 composite has declined 15.6% in the same time frame.
Image Source: Zacks Investment Research
What’s Driving Caterpillar?
The company has impressed investors by delivering growth in both its top and the bottom line for the last few quarters. CAT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 14.7%.
Adjusted earnings per share were $3.95 in third-quarter 2022, which marked a 48.5% improvement year over year courtesy of strong demand across its end markets. This, along with favorable price realization led to improved earnings despite unfavorable manufacturing costs (mainly higher material and freight costs). The backlog at the end of the quarter was an impressive $30 billion. This bodes well for CAT’s top-line performance in the days ahead.
In North America, demand in both residential and non-residential construction sectors is likely to bolster demand for Caterpillar’s construction equipment. The perked-up investment in roads, bridges, airports and waterways as a result of the U.S. Infrastructure Investment and Jobs Act represents a huge opportunity for CAT.
In the Resource Industries segment, mining orders are on an uptrend, auguring well for the segment. Miners are increasingly relying on autonomous systems to enhance productivity and reduce costs and emissions. Therefore, CAT is enhancing its autonomous capabilities and bringing innovative products to the market.
Caterpillar recently announced that it is investing in Lithos Energy, Inc., a U.S.-based battery technology company that produces lithium-ion battery packs. This is in sync with the company’s commitment to supporting customers in their energy transition journey with lower-carbon advanced power technologies for its hybrid and full-electric machines as well as power generation products.
To this end, CAT recently displayed four electric construction machine prototypes, including battery prototypes, at bauma 2022 in Munich, Germany. It also successfully demonstrated its first battery electric 793 large mining truck at its Tucson Proving Ground in Arizona.
Earnings estimates for Caterpillar have also been going up over the past 60 days. The Zacks Consensus Estimate for 2022 bottom line has increased around 0.1% and the same for 2023 has moved up 2.6%. The consensus estimate for third-quarter 2022 earnings (scheduled to be reported on Jan 31) has also been revised 0.8% upward over the same time frame. The favorable estimate revisions instill investor’s confidence in the stock.
Zacks Rank & Stocks to Consider
Caterpillar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Deere & Company DE and O-I Glass, Inc. OI. KNBE sports a Zacks Rank #1 (Strong Buy) at present, while DE and OI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 18% in a year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from the last year’s reported figure. The consensus estimate for fiscal 2023 earnings moved 5.2% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 16% in the last year.
OI Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 37% in the last year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
OI Glass, Inc. (OI) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Deere & Company DE and O-I Glass, Inc. OI. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from the last year’s reported figure. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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KNBE sports a Zacks Rank #1 (Strong Buy) at present, while DE and OI carry a Zacks Rank #2 (Buy). Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. The S&P 500 composite has declined 15.6% in the same time frame.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from the last year’s reported figure. Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. The S&P 500 composite has declined 15.6% in the same time frame.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from the last year’s reported figure. The S&P 500 composite has declined 15.6% in the same time frame. The company has impressed investors by delivering growth in both its top and the bottom line for the last few quarters.
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2023-01-16 00:00:00 UTC
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Wall Street Books Best Week Since November: 5 Growth Picks
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The three major benchmarks opened lower on Jan 13 but, in due course, bounced back and finished the trading session in the green. The Dow, the S&P 500 and the Nasdaq notched their best weekly percentage gains in two months.
For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%. The 30-stock Dow and the broader S&P 500 also advanced 2% and 2.7%, respectively, for the week. The Nasdaq and the S&P 500, too, booked their second successive positive week.
An encouraging reading on consumer sentiment in the United States lifted investors’ sentiment. The University of Michigan’s preliminary report showed that its consumer sentiment index increased to 64.6 in January from 59.7 in the prior month, its highest level since April. Moreover, the reading was more than analysts’ expectations of an increase to 60.7.
At the same time, the University of Michigan’s index that measures present economic conditions increased sharply to 68.6 this month from 59.4 in December. In reality, consumers’ assessment of economic conditions improved mostly due to easing inflation. Lest we forget, consumer sentiment had tanked for most of last year as inflation spiked to a record high and weighed on real income, impacting household’s living standards.
Nonetheless, consumer-price growth eased in December for the sixth straight month. The consumer price index (CPI) advanced 6.5% on a year-over-year basis last month, less than November’s annual increase of 7.1%, and well below June’s peak of 9.1%, per the U.S. Bureau of Labor Statistics.
Now, with inflation easing, market participants assume that the Federal Reserve will cut interest rates this year. The central bank, at present, is widely expected to hike interest rates by only a quarter of a percentage point in the February meeting. But that’s down from a 50 basis points increase in December, which followed a 75-basis points rate hike four times in a row.
Again, a less aggressive Fed bodes well for the stock market. This is because rate hikes last year had impacted market returns since they increased borrowing costs and curbed consumer outlays. Thus, with consumer sentiments improving amid falling inflation and fewer rate hike expectations, the stock market is surely poised to give better returns this year than last year.
Hence, investors should place their bets on growth stocks. We have, therefore, highlighted five stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and have a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
AMN Healthcare Services AMN is a travel healthcare staffing company. AMN has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.1% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 44%.
Clarivate CLVT operates as an information services and analytics company. CLVT has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.5%.
Core & Main CNM is a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services. CNM has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 10.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 159%.
CRH CRH manufactures cement, concrete products, aggregates, roofing, insulation, and other building materials. CRH has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 13.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 19%.
Deere & Company DE is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. DE has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 19.6%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
CRH PLC (CRH) : Free Stock Analysis Report
Clarivate PLC (CLVT) : Free Stock Analysis Report
Core & Main, Inc. (CNM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The University of Michigan’s preliminary report showed that its consumer sentiment index increased to 64.6 in January from 59.7 in the prior month, its highest level since April. The consumer price index (CPI) advanced 6.5% on a year-over-year basis last month, less than November’s annual increase of 7.1%, and well below June’s peak of 9.1%, per the U.S. Bureau of Labor Statistics. For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%.
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At the same time, the University of Michigan’s index that measures present economic conditions increased sharply to 68.6 this month from 59.4 in December. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report Core & Main, Inc. (CNM) : Free Stock Analysis Report To read this article on Zacks.com click here. For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report Core & Main, Inc. (CNM) : Free Stock Analysis Report To read this article on Zacks.com click here. For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%. The 30-stock Dow and the broader S&P 500 also advanced 2% and 2.7%, respectively, for the week.
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For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%. The 30-stock Dow and the broader S&P 500 also advanced 2% and 2.7%, respectively, for the week. The University of Michigan’s preliminary report showed that its consumer sentiment index increased to 64.6 in January from 59.7 in the prior month, its highest level since April.
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e6877979-6761-4d1c-bb50-bb772fb10901
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720871.0
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2023-01-13 00:00:00 UTC
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What's The Outlook Like For The Capital Spending Theme In 2023?
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DE
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https://www.nasdaq.com/articles/whats-the-outlook-like-for-the-capital-spending-theme-in-2023
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nan
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nan
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Our theme of Capex Cycle Stocks – which includes heavy equipment makers, electrical systems suppliers, automation solutions providers, and semiconductor fabrication equipment players – declined by about 12% over 2022, outperforming the S&P 500 which was down by about 17%. Capital spending largely held up over the last year, despite rising interest rates and surging inflation. For example, according to S&P Dow Jones Indices, capital spending among companies in the S&P 500 was on track to grow by about 20% over Q3 2022, in line with growth rates seen over Q1 and Q2. There are multiple trends driving the growth in capital spending including a focus on boosting capacity and moving production back to the U.S. following the supply chain snarls of Covid-19 re-opening. Automation has also been a key theme for manufacturers, given surging labor costs. The $1 trillion U.S. infrastructure package, which was signed into law about a year ago, has also been driving demand for heavy machinery and tools.
That being said, multiple economic indicators point to a recession in the U.S. The yield curve – seen as a very reliable indicator of a coming recession – remains inverted. The U.S. Fed continues with its hawkish stance despite cooling inflation, with more interest rate hikes due through 2023. U.S. manufacturing is also cooling off. S&P Global’s purchasing managers index (PMI) has declined to the lowest levels seen since June 2020 at a seasonally adjusted 46.2 in December 2022 and down from 57.7 in December 2021. It’s possible that a weakening economy and higher interest rates could force companies to prioritize reducing their debt loads in the near term rather than boosting capital investments.
Within our theme, Lam Research (NASDAQ:LRCX) has been the weakest performer with its stock down by about 30% over the last 12 months. The company provides fabrication equipment and related services to the semiconductor sector. On the other side, Deere & Company (NYSE:DE), which manufactures agricultural machinery, heavy equipment, forestry machinery, and diesel engines, has been the strongest performer rising by about 15% over the past year.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
LRCX Return 9% 9% 334%
S&P 500 Return 2% 2% 75%
Trefis Multi-Strategy Portfolio 5% 5% 229%
[1] Month-to-date and year-to-date as of 1/11/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The $1 trillion U.S. infrastructure package, which was signed into law about a year ago, has also been driving demand for heavy machinery and tools. It’s possible that a weakening economy and higher interest rates could force companies to prioritize reducing their debt loads in the near term rather than boosting capital investments. Our theme of Capex Cycle Stocks – which includes heavy equipment makers, electrical systems suppliers, automation solutions providers, and semiconductor fabrication equipment players – declined by about 12% over 2022, outperforming the S&P 500 which was down by about 17%.
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Capital spending largely held up over the last year, despite rising interest rates and surging inflation. Our theme of Capex Cycle Stocks – which includes heavy equipment makers, electrical systems suppliers, automation solutions providers, and semiconductor fabrication equipment players – declined by about 12% over 2022, outperforming the S&P 500 which was down by about 17%. The $1 trillion U.S. infrastructure package, which was signed into law about a year ago, has also been driving demand for heavy machinery and tools.
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Our theme of Capex Cycle Stocks – which includes heavy equipment makers, electrical systems suppliers, automation solutions providers, and semiconductor fabrication equipment players – declined by about 12% over 2022, outperforming the S&P 500 which was down by about 17%. On the other side, Deere & Company (NYSE:DE), which manufactures agricultural machinery, heavy equipment, forestry machinery, and diesel engines, has been the strongest performer rising by about 15% over the past year. Capital spending largely held up over the last year, despite rising interest rates and surging inflation.
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Our theme of Capex Cycle Stocks – which includes heavy equipment makers, electrical systems suppliers, automation solutions providers, and semiconductor fabrication equipment players – declined by about 12% over 2022, outperforming the S&P 500 which was down by about 17%. Capital spending largely held up over the last year, despite rising interest rates and surging inflation. The $1 trillion U.S. infrastructure package, which was signed into law about a year ago, has also been driving demand for heavy machinery and tools.
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e41261c0-7ab4-45aa-830e-86812d393878
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720872.0
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2023-01-13 00:00:00 UTC
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Small Caps to Provide Big Performance in 2023
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DE
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https://www.nasdaq.com/articles/small-caps-to-provide-big-performance-in-2023
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nan
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nan
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Small-cap companies are those with a market capitalization under $2 billion. Investors consider small caps to be riskier than large-cap stocks due to their sensitivity to interest rates and changes in the value of the dollar. However, small caps have the potential for higher returns during bull markets.
To reduce risk, investors can choose to trade or invest in small caps as a group rather than eliminate the risk inherent in individual small-cap stocks. Today we will discuss why small caps may provide big performance in 2023:
For the sake of simplicity, we will use the Ishares Russell 2000 ETF IWM as our proxy for small caps.
Follow the Leader:
The Russell 2000 tends to lead the overall U.S. market in both directions. For example, IWM topped on November 12th, 2021 – long before the S&P 500 Index ETF SPY, which didn’t top until January 7th, 2022.
Image Source: Zacks Investment Research
Pictured: IWM topped months before SPY. Can it now lead the major indices back up?
Image Source: Zacks Investment Research
Pictured: SPY topped long after IWM and is now lagging on the recovery.
Fast forward to today, and IWM is once again leading – but this time to the upside. IWM has cleared its 200-day moving average, while SPY and the Nasdaq 100 ETF QQQ remain stuck below it.
Image Source: Zacks Investment Research
Pictured: IWM is already back above its 200-day moving average. The first major index to do so outside of the Dow.
Image Source: Zacks Investment Research
Pictured: QQQ has recovered some but remains well below its 200-day moving average.
Break Above Resistance:
IWM is trying to break above trendline resistance dating back to its top in Q4 2021.
Image Source: Zacks Investment Research
Pictured: IWM is trying to take out a more than year long descending trendline.
Relative Strength:
Over the past month, IWM has begun to outperform its larger-cap rivals. IWM is up 1.6%, while QQQ is -2.6%, and SPY is -0.4%.
Sector Allocation Mix:
The asset allocation of IWM makes the ETF poised to outperform in 2023. Financials such as United Bankshares Inc UBSI, Old National Bancorp ONB, and First Financial Bankshares Inc (FFIN) make up nearly a quarter of the asset allocation in the ETF. Banks within the ETF stand to benefit from the current rising interest rate environment because when interest rates rise to lofty levels, banks make more money from the spread between what banks pay customers and the interest that can be earned by investing.
The second largest sector allocation in the IWM ETF is industrials. Though Deere & Co DE and Caterpillar CAT are large caps, they can be excellent barometers for the industrial space. Deere grew earnings by an impressive 81% last quarter, while Caterpillar hit new all-time highs yesterday.
Image Source: Zacks Investment Research
Pictured: DE's EBITDA illustrates the momentum in industrial stocks.
Lastly, oil and gas stocks comprise more than 5% of the ETF’s assets. The energy sector was a top performer in 2022 and shows little sign of slowing in the new year. IWM components such as oil and gas refiner Murphy USA MUSA hold a best possible Zack’s Ranking of 1 – suggesting that earnings may continue to grow strongly over the next few quarters.
Image Source: Zacks Investment Research
Pictured: Small cap energy stocks like MUSA have been delivering on earnings.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
First Financial Bankshares, Inc. (FFIN) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
Old National Bancorp (ONB) : Free Stock Analysis Report
iShares Russell 2000 ETF (IWM): ETF Research Reports
United Bankshares, Inc. (UBSI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Pictured: Small cap energy stocks like MUSA have been delivering on earnings. Small-cap companies are those with a market capitalization under $2 billion. Investors consider small caps to be riskier than large-cap stocks due to their sensitivity to interest rates and changes in the value of the dollar.
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Image Source: Zacks Investment Research Pictured: Small cap energy stocks like MUSA have been delivering on earnings. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report First Financial Bankshares, Inc. (FFIN) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Old National Bancorp (ONB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports United Bankshares, Inc. (UBSI) : Free Stock Analysis Report To read this article on Zacks.com click here. Small-cap companies are those with a market capitalization under $2 billion.
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Image Source: Zacks Investment Research Pictured: Small cap energy stocks like MUSA have been delivering on earnings. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report First Financial Bankshares, Inc. (FFIN) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Old National Bancorp (ONB) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports United Bankshares, Inc. (UBSI) : Free Stock Analysis Report To read this article on Zacks.com click here. Small-cap companies are those with a market capitalization under $2 billion.
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Image Source: Zacks Investment Research Pictured: Small cap energy stocks like MUSA have been delivering on earnings. Small-cap companies are those with a market capitalization under $2 billion. Investors consider small caps to be riskier than large-cap stocks due to their sensitivity to interest rates and changes in the value of the dollar.
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444040ef-6a69-466d-8c83-74f654e41b09
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720873.0
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2023-01-13 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Deere
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DE
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-deere
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nan
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nan
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For Immediate Release
Chicago, IL – January 13, 2023 – Today, Zacks Investment Ideas feature highlights Deere & Co. DE.
3 Keys to Identify Best Profit Opportunities
Stocks have come roaring out of the gate in 2023 in stark contrast to last year’s bear market. Optimism surrounding a slowdown in the pace of interest rate hikes, along with avoiding a potential recession, has sent markets higher to kick off the new year. Still, many individual stocks remain in downtrends, well below their peaks from two years ago.
Given that uncertainty remains as inflation continues to linger and corporate earnings are set to fall, it pays to be very selective. How do we go about narrowing down our list to stocks with the best profit potential? I’ll lay out a three-step process that can guide us in this endeavor.
Industry Group Association
We can start by detecting leading industry groups. The Zacks Industry Group Rank makes this process easy for investors, classifying industries based on the earnings estimate revisions of the underlying stocks within each industry. If the stocks within a given group are experiencing positive earnings revisions, that industry will receive a higher ranking. Let’s take a look at an example.
The Zacks Manufacturing – Farm Equipment industry is ranked in the top 16% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months. Digging a bit deeper, this industry has held up relatively well over the past year (+14.07%).
Quantitative research studies suggest about half of a stock’s future price appreciation is due to its industry grouping. By targeting stocks contained within leading industry groups, we can dramatically improve our odds of success.
Rising Earnings Estimates
Positive earnings estimate revisions are at the heart of the Zacks Rank. Our research shows that rising earnings estimates are the most powerful force impacting stock prices. Only the top 20% of all stocks that are experiencing the most substantial revisions are ranked as either a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). Let’s build on our example.
Within the Zacks Manufacturing – Farm Equipment industry, Deere & Co. is a Zacks Rank #2 (Buy) stock. DE is an American manufacturer of construction, agricultural, engine, forestry, and lawn care equipment. Deere is well-known for its tractors, mowing equipment, excavators, milling machines, and sports turf care applications.
The machinery manufacturer has witnessed a steady batch of positive earnings estimate revisions as of late. For the current fiscal year, eleven different analysts have increased their EPS estimates by 5.21% in the past 60 days. The 2023 Zacks Consensus Estimate is now $27.85 per share, which translates to a 19.63% growth rate relative to last year. This is the type of trend we want to look for when narrowing down our list of stocks to include in our portfolio.
Relative Strength
One of the most useful measures to help investors identify leading stocks and funds in any market environment is relative strength. This technical analysis tool assists us in gauging how an investment has performed relative to the market or another relevant benchmark. For example, we could use relative strength to detect stocks that have outperformed the S&P 500.
Critics of relative strength as an indicator typically associate it with momentum investing, but I don’t view it that way. The market ultimately decides which stocks are best positioned for the present and future periods, and this tool helps us recognize those stocks.
Simply put, in order to outperform the market, we need to be invested in stocks that are outperforming.
What the Zacks Model Unveils
The Zacks Earnings ESP (Expected Surprise Prediction) identifies companies that have recently witnessed positive earnings estimate revision activity. The idea is that this more recent information can serve as a better predictor of the future, giving investors a leg up during earnings season. When combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks produced a positive surprise 70% of the time according to our 10-year backtest.
With an Earnings ESP of +3.08% and a Zacks Rank #2 (Buy) rating, another earnings beat may be in the cards for DE investors when the company reports fiscal Q1 results on February 17th.
By focusing on stocks that are within leading industry groups, experiencing positive earnings estimate revisions, and that are showing relative strength, we can narrow down our list of stocks to those with the best profit potential.
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Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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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.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is well-known for its tractors, mowing equipment, excavators, milling machines, and sports turf care applications. 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. For Immediate Release Chicago, IL – January 13, 2023 – Today, Zacks Investment Ideas feature highlights Deere & Co. DE.
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Within the Zacks Manufacturing – Farm Equipment industry, Deere & Co. is a Zacks Rank #2 (Buy) stock. What the Zacks Model Unveils The Zacks Earnings ESP (Expected Surprise Prediction) identifies companies that have recently witnessed positive earnings estimate revision activity. For Immediate Release Chicago, IL – January 13, 2023 – Today, Zacks Investment Ideas feature highlights Deere & Co. DE.
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The Zacks Industry Group Rank makes this process easy for investors, classifying industries based on the earnings estimate revisions of the underlying stocks within each industry. For Immediate Release Chicago, IL – January 13, 2023 – Today, Zacks Investment Ideas feature highlights Deere & Co. DE. 3 Keys to Identify Best Profit Opportunities Stocks have come roaring out of the gate in 2023 in stark contrast to last year’s bear market.
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Within the Zacks Manufacturing – Farm Equipment industry, Deere & Co. is a Zacks Rank #2 (Buy) stock. For Immediate Release Chicago, IL – January 13, 2023 – Today, Zacks Investment Ideas feature highlights Deere & Co. DE. 3 Keys to Identify Best Profit Opportunities Stocks have come roaring out of the gate in 2023 in stark contrast to last year’s bear market.
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be74f8fb-840e-49b3-8723-1646077e4d21
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720874.0
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2023-01-12 00:00:00 UTC
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3 Keys to Identify the Best Profit Opportunities
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DE
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https://www.nasdaq.com/articles/3-keys-to-identify-the-best-profit-opportunities
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nan
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nan
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Stocks have come roaring out of the gate in 2023 in stark contrast to last year’s bear market. Optimism surrounding a slowdown in the pace of interest rate hikes, along with avoiding a potential recession, has sent markets higher to kick off the new year. Still, many individual stocks remain in downtrends, well below their peaks from two years ago.
Given that uncertainty remains as inflation continues to linger and corporate earnings are set to fall, it pays to be very selective. How do we go about narrowing down our list to stocks with the best profit potential? I’ll lay out a three-step process that can guide us in this endeavor.
Industry Group Association
We can start by detecting leading industry groups. The Zacks Industry Group Rank makes this process easy for investors, classifying industries based on the earnings estimate revisions of the underlying stocks within each industry. If the stocks within a given group are experiencing positive earnings revisions, that industry will receive a higher ranking. Let’s take a look at an example.
The Zacks Manufacturing – Farm Equipment industry is ranked in the top 16% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months. Digging a bit deeper, this industry has held up relatively well over the past year (+14.07%).
Quantitative research studies suggest about half of a stock’s future price appreciation is due to its industry grouping. By targeting stocks contained within leading industry groups, we can dramatically improve our odds of success. Also note the favorable characteristics for this group below:
Image Source: Zacks Investment Research
Rising Earnings Estimates
Positive earnings estimate revisions are at the heart of the Zacks Rank. Our research shows that rising earnings estimates are the most powerful force impacting stock prices. Only the top 20% of all stocks that are experiencing the most substantial revisions are ranked as either a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). Let’s build on our example.
Within the Zacks Manufacturing – Farm Equipment industry, Deere & Co. DE is a Zacks Rank #2 (Buy) stock. DE is an American manufacturer of construction, agricultural, engine, forestry, and lawn care equipment. Deere is well-known for its tractors, mowing equipment, excavators, milling machines, and sports turf care applications.
The machinery manufacturer has witnessed a steady batch of positive earnings estimate revisions as of late. For the current fiscal year, eleven different analysts have increased their EPS estimates by 5.21% in the past 60 days. The 2023 Zacks Consensus Estimate is now $27.85 per share, which translates to a 19.63% growth rate relative to last year. This is the type of trend we want to look for when narrowing down our list of stocks to include in our portfolio.
Image Source: Zacks Investment Research
Relative Strength
One of the most useful measures to help investors identify leading stocks and funds in any market environment is relative strength. This technical analysis tool assists us in gauging how an investment has performed relative to the market or another relevant benchmark. For example, we could use relative strength to detect stocks that have outperformed the S&P 500.
Critics of relative strength as an indicator typically associate it with momentum investing, but I don’t view it that way. The market ultimately decides which stocks are best positioned for the present and future periods, and this tool helps us recognize those stocks.
We can see below that DE has displayed relative outperformance versus the S&P 500 over the past six months:
Image Source: StockCharts
Simply put, in order to outperform the market, we need to be invested in stocks that are outperforming.
What the Zacks Model Unveils
The Zacks Earnings ESP (Expected Surprise Prediction) identifies companies that have recently witnessed positive earnings estimate revision activity. The idea is that this more recent information can serve as a better predictor of the future, giving investors a leg up during earnings season. When combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks produced a positive surprise 70% of the time according to our 10-year backtest.
With an Earnings ESP of +3.08% and a Zacks Rank #2 (Buy) rating, another earnings beat may be in the cards for DE investors when the company reports fiscal Q1 results on February 17th.
By focusing on stocks that are within leading industry groups, experiencing positive earnings estimate revisions, and that are showing relative strength, we can narrow down our list of stocks to those with the best profit potential.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is well-known for its tractors, mowing equipment, excavators, milling machines, and sports turf care applications. I’ll lay out a three-step process that can guide us in this endeavor. Industry Group Association We can start by detecting leading industry groups.
|
Within the Zacks Manufacturing – Farm Equipment industry, Deere & Co. DE is a Zacks Rank #2 (Buy) stock. What the Zacks Model Unveils The Zacks Earnings ESP (Expected Surprise Prediction) identifies companies that have recently witnessed positive earnings estimate revision activity. I’ll lay out a three-step process that can guide us in this endeavor.
|
The Zacks Industry Group Rank makes this process easy for investors, classifying industries based on the earnings estimate revisions of the underlying stocks within each industry. I’ll lay out a three-step process that can guide us in this endeavor. Industry Group Association We can start by detecting leading industry groups.
|
I’ll lay out a three-step process that can guide us in this endeavor. Industry Group Association We can start by detecting leading industry groups. The Zacks Industry Group Rank makes this process easy for investors, classifying industries based on the earnings estimate revisions of the underlying stocks within each industry.
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a796e64d-08b4-44e9-8527-84ec19f35bfd
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720875.0
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2023-01-12 00:00:00 UTC
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Timken (TKR) Supplies Bearings for Ford Motor F-150 Lightning
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DE
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https://www.nasdaq.com/articles/timken-tkr-supplies-bearings-for-ford-motor-f-150-lightning
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nan
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nan
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The Timken Company TKR announced that Ford Motor Company’s F electric light-duty pickup truck, F-150 Lightning, is using Timken’s packaged wheel bearings. Notably, the company started supplying wheel bearings for the F-150 Lightning in April 2022.
Timken has spent a long time on advanced designs for electric vehicles (“EVs”). Its technology has advanced to create lighter, smaller and more fuel-efficient solutions capable of meeting the unique performance demands of EVs, such as higher torque and load requirements.
Manufacturers such as Ford can switch to EV designs without having to rethink their entire supply chain with the help of Timken's customized bearing designs. Timken worked closely with the Ford team to deal with design challenges and support Ford’s high standards for performance and safety. Timken assisted Ford’s timeline and provided information on innovating product and process technologies to address the emerging EV trend.
Timken and Ford have a long-standing relationship. It dates back to 1908 when the companies collaborated for the production of the Model T. In addition to other variations of F-150, Ford employs Timken bearings in its Expedition and Lincoln Navigator SUVs.
Timken has been benefiting from growth across most end-market sectors, led by industrial distribution and off-highway, and the impact of higher pricing.
In the third quarter of 2022, the company reported adjusted earnings per share of $1.52, beating the Zacks Consensus Estimate of $1.33. The bottom line increased 29% year over year. Total revenues in the quarter were $1,136 million, up 9.6% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $1,091 million.
To reflect the third-quarter results, Timken raised the adjusted EPS guidance for 2022 to $5.80-$5.95 from the previously stated $5.50-$5.80. For 2022, it expects total revenue growth of 9% from the 2021 reported level.
Price Performance
In the past year, shares of Timken have gained 3.6% against the industry’s fall of 8.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Timken currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE and Deere & Company DE. KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, while DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 9.5% in a year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 5.2% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 15.2% in the last year.
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Ford Motor Company (F) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Timken Company The (TKR) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its technology has advanced to create lighter, smaller and more fuel-efficient solutions capable of meeting the unique performance demands of EVs, such as higher torque and load requirements. Timken assisted Ford’s timeline and provided information on innovating product and process technologies to address the emerging EV trend. It dates back to 1908 when the companies collaborated for the production of the Model T. In addition to other variations of F-150, Ford employs Timken bearings in its Expedition and Lincoln Navigator SUVs.
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Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Timken currently carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Timken Company The (TKR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Timken currently carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Timken Company The (TKR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. Timken has spent a long time on advanced designs for electric vehicles (“EVs”). Its technology has advanced to create lighter, smaller and more fuel-efficient solutions capable of meeting the unique performance demands of EVs, such as higher torque and load requirements.
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fbb8e921-5efa-4409-a1eb-850f6eb373d8
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720876.0
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2023-01-11 00:00:00 UTC
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Noteworthy ETF Outflows: IUSG, ELV, DE, ADP
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-iusg-elv-de-adp
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $65.7 million dollar outflow -- that's a 0.6% decrease week over week (from 139,500,000 to 138,700,000). Among the largest underlying components of IUSG, in trading today Elevance Health Inc (Symbol: ELV) is up about 2%, Deere & Co. (Symbol: DE) is down about 1.1%, and Automatic Data Processing Inc. (Symbol: ADP) is higher by about 0.7%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average:
Looking at the chart above, IUSG's low point in its 52 week range is $76.95 per share, with $113.0739 as the 52 week high point — that compares with a last trade of $82.67. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
Also see:
Services Stocks Hedge Funds Are Selling
DFIV Options Chain
SBBP Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $65.7 million dollar outflow -- that's a 0.6% decrease week over week (from 139,500,000 to 138,700,000).
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For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $76.95 per share, with $113.0739 as the 52 week high point — that compares with a last trade of $82.67. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $65.7 million dollar outflow -- that's a 0.6% decrease week over week (from 139,500,000 to 138,700,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $65.7 million dollar outflow -- that's a 0.6% decrease week over week (from 139,500,000 to 138,700,000). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $76.95 per share, with $113.0739 as the 52 week high point — that compares with a last trade of $82.67. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $65.7 million dollar outflow -- that's a 0.6% decrease week over week (from 139,500,000 to 138,700,000). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $76.95 per share, with $113.0739 as the 52 week high point — that compares with a last trade of $82.67. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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921ce91b-a1af-4374-b746-1da230fa9a3c
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720877.0
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2023-01-11 00:00:00 UTC
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Lindsay (LNN) Launches Road Zipper Barrier Transfer Machine
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DE
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https://www.nasdaq.com/articles/lindsay-lnn-launches-road-zipper-barrier-transfer-machine
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nan
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nan
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Lindsay Corp. LNN announced the launch of its upgraded Road Zipper Barrier Transfer Machine.
The modernized barrier transfer machine will ensure improved safety and efficiency with a bold new design and two advanced operator cabins. The exterior of the machine includes body panels that are durable and lightweight yet easily replaceable if damaged. The outer redesign also includes lighting to guarantee good visibility and safety.
To ensure maximum stability, there are stair steps and stainless-steel handrails. It has doors at either side, making access to its mid-section simple.
Lindsay has enhanced the inside of the two large and spacious cabins with an updated steering control column for barrier placement, allowing an improved driving position. The machine now has a wrap-around windshield and external camera system to intensify visibility. Furthermore, it has an 8-inch color display that provides visuals from any vehicle's mounted cameras.
The redesign has easy access and exit, owing to the right-side control console that can be raised and lowered. The machine will provide protection in any weather with its double-sealed doors.
Lindsay further announced that going forward Road Zipper System will be classified into the Titan series and Genesis series. The Titan series is intended for permanently managed lane projects. Whereas, the Genesis series is designed to handle short-term construction projects.
Started in 1984, Road Zipper System is Lindsay’s solution to deal with congestion without investing highly in building new roads and bridges. Revenues from the Road Zipper System are included in Lindsay’s Infrastructure segment. In the first quarter of fiscal 2023, the Infrastructure segment revenues increased 19% year over year to $24 million on higher Road Zipper System project sales. However, this was partially offset by lower Road Zipper System lease revenues. The segment's operating income was $3.4 million in the quarter compared with $2.8 million in the prior year.
In the last reported quarter, the company delivered adjusted earnings per share of $1.65, beating the Zacks Consensus Estimate of $1.25. It generated revenues of $176 million, up 6% from the $166 million reported in the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $179 million.
Price Performance
Lindsay’s shares have gained 5.1% in the past year compared with the industry’s growth of 11.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
LNN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Deere & Company DE, and O-I Glass, Inc. OI. KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, while DE and OI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 12.2% in a year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 5.2% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 15% in the last year.
OI Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 51.4% in the last year.
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OI Glass, Inc. (OI) : Free Stock Analysis Report
Lindsay Corporation (LNN) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The modernized barrier transfer machine will ensure improved safety and efficiency with a bold new design and two advanced operator cabins. Lindsay has enhanced the inside of the two large and spacious cabins with an updated steering control column for barrier placement, allowing an improved driving position. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year.
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Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider LNN currently carries a Zacks Rank #3 (Hold). Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Lindsay Corp. LNN announced the launch of its upgraded Road Zipper Barrier Transfer Machine.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. Click to get this free report OI Glass, Inc. (OI) : Free Stock Analysis Report Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Lindsay Corp. LNN announced the launch of its upgraded Road Zipper Barrier Transfer Machine.
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Revenues from the Road Zipper System are included in Lindsay’s Infrastructure segment. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. Lindsay Corp. LNN announced the launch of its upgraded Road Zipper Barrier Transfer Machine.
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c7bf98a3-eea8-4bfc-8465-b720c6303de5
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720878.0
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2023-01-09 00:00:00 UTC
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Farm Bureau, Deere & Co. Sign MoU Giving Farmers Right To Repair Their Equipment
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DE
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https://www.nasdaq.com/articles/farm-bureau-deere-co.-sign-mou-giving-farmers-right-to-repair-their-equipment
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nan
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(RTTNews) - The American Farm Bureau Federation (AFBF) and Deere & Co., one of the world's largest manufacturers of farming equipment, signed a Memorandum of Understanding (MoU) that will allow farmers to repair their own farm equipment.
David Gilmore, a senior vice president at Deere & Co., says the MoU will help farmers get equipment back in the field quickly following a breakdown.
He added that as a result of the partnership, farmers can repair their equipment and have access to the diagnostic tools and product guides so that they can find the problems and find solutions for them.
Previously, farmers did not have the freedom to repair their equipment where they wanted to, and were only allowed to use authorized parts and service facilities rather than cheaper independent repair options.
In an executive order that he signed in 2021, President Joe Biden had urged the Federal Trade Commission to draft a federal policy giving permission to customers to repair their own products, especially in the technology and farming sectors.
The MoU was announced at the 2023 American Farm Bureau Federation Convention in San Juan, Puerto Rico.
The MoU, which provides big relief for farmers and ranchers in the United States, comes after several years of discussions.
AFBF President Zippy Duvall said this was an issue that has been a priority for the organization for several years and has taken a lot of work to get to this point.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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David Gilmore, a senior vice president at Deere & Co., says the MoU will help farmers get equipment back in the field quickly following a breakdown. The MoU was announced at the 2023 American Farm Bureau Federation Convention in San Juan, Puerto Rico. AFBF President Zippy Duvall said this was an issue that has been a priority for the organization for several years and has taken a lot of work to get to this point.
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(RTTNews) - The American Farm Bureau Federation (AFBF) and Deere & Co., one of the world's largest manufacturers of farming equipment, signed a Memorandum of Understanding (MoU) that will allow farmers to repair their own farm equipment. David Gilmore, a senior vice president at Deere & Co., says the MoU will help farmers get equipment back in the field quickly following a breakdown. The MoU was announced at the 2023 American Farm Bureau Federation Convention in San Juan, Puerto Rico.
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(RTTNews) - The American Farm Bureau Federation (AFBF) and Deere & Co., one of the world's largest manufacturers of farming equipment, signed a Memorandum of Understanding (MoU) that will allow farmers to repair their own farm equipment. Previously, farmers did not have the freedom to repair their equipment where they wanted to, and were only allowed to use authorized parts and service facilities rather than cheaper independent repair options. In an executive order that he signed in 2021, President Joe Biden had urged the Federal Trade Commission to draft a federal policy giving permission to customers to repair their own products, especially in the technology and farming sectors.
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(RTTNews) - The American Farm Bureau Federation (AFBF) and Deere & Co., one of the world's largest manufacturers of farming equipment, signed a Memorandum of Understanding (MoU) that will allow farmers to repair their own farm equipment. David Gilmore, a senior vice president at Deere & Co., says the MoU will help farmers get equipment back in the field quickly following a breakdown. He added that as a result of the partnership, farmers can repair their equipment and have access to the diagnostic tools and product guides so that they can find the problems and find solutions for them.
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3643ccd7-4dca-49cb-a87b-0cd47c79391e
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720879.0
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2023-01-08 00:00:00 UTC
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CNH Industrial union workers at two U.S. plants reject proposed contract
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DE
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https://www.nasdaq.com/articles/cnh-industrial-union-workers-at-two-u.s.-plants-reject-proposed-contract
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nan
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By Bianca Flowers
RACINE, Wis., Jan 7 (Reuters) - Members of two local unions that have been on strike since May at CNH Industrial CNHI.MI factories in Wisconsin and Iowa on Saturday voted down a tentative labor contract, the United Auto Workers union said.
The union did not disclose how many workers at the two plants rejected the four-year deal, which included wage increases of 25% to 38% according to CNH on Sunday. Still, union members said the proposed contract failed to provide enough of a raise to combat inflation, additional vacation days or better healthcare coverage.
The UAW represents about 1,000 workers at the plants, and union officials had warned a rejection of the latest offer was likely.
"We're going to notify the company and see if they are willing to come back to the table," said Yasin Mahdi, the UAW local president in Racine, Wisconsin, where the company employs about 700 people. "I hope the next time they come with a real, bona fide offer."
CNH officials said the latest offer was its "last, best and final" and in a statement encouraged employees to "reconsider their position in another vote." The company said it will wait for the union to take the next step.
Workers in May had rejected an offer by the maker of agriculture and construction equipment that included an 18.5% wage increase over three years.
The Italian-American company brought in replacement workers to keep the factories operating once the strike began, union officials said. The plant in Racine, 60 miles (100 km) north of Chicago, makes tractors and combines, while the Burlington, Iowa, facility builds tractor loaders backhoes and forklifts.
The strike has stretched well beyond the two-month average in the United States, said Robert Bruno, a labor professor at the University of Illinois Urbana-Champaign. With a tightening labor market, union workers in the industrial sector for companies such as Boeing BA.N and Deere & Co DE.N have gone on strike in recent years.
In 2021, more than 10,000 Deere workers in three Midwest states rejected two contract offers before a deal was reached to end a five-week strike.
For CNH workers, who last struck the company in 2004, some have taken second jobs to augment strike pay they receive from the UAW. They note the company has been reporting strong profits, including $670 million on an adjusted basis in the most recent quarter.
At an elementary school in Wisconsin where the ballots were cast, workers voiced frustration and determination.
"This is a multibillion dollar company, they can afford to give us everything we're asking for. We're not asking for too much," said 61-year-old Alric Davis.
Kelly Peters, a sub-assembly worker at the Racine plant, was not ready to vote yes.
"They’re just giving increments, like dangling a bone to see if we’re going to bite. I’m not biting," she said.
(Reporting by Bianca Flowers in Racine, Wisconsin; Editing by Leslie Adler, Ben Klayman, William Mallard and Diane Craft)
((Bianca.Flowers@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Still, union members said the proposed contract failed to provide enough of a raise to combat inflation, additional vacation days or better healthcare coverage. With a tightening labor market, union workers in the industrial sector for companies such as Boeing BA.N and Deere & Co DE.N have gone on strike in recent years. The union did not disclose how many workers at the two plants rejected the four-year deal, which included wage increases of 25% to 38% according to CNH on Sunday.
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The union did not disclose how many workers at the two plants rejected the four-year deal, which included wage increases of 25% to 38% according to CNH on Sunday. In 2021, more than 10,000 Deere workers in three Midwest states rejected two contract offers before a deal was reached to end a five-week strike. Still, union members said the proposed contract failed to provide enough of a raise to combat inflation, additional vacation days or better healthcare coverage.
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With a tightening labor market, union workers in the industrial sector for companies such as Boeing BA.N and Deere & Co DE.N have gone on strike in recent years. The union did not disclose how many workers at the two plants rejected the four-year deal, which included wage increases of 25% to 38% according to CNH on Sunday. Still, union members said the proposed contract failed to provide enough of a raise to combat inflation, additional vacation days or better healthcare coverage.
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With a tightening labor market, union workers in the industrial sector for companies such as Boeing BA.N and Deere & Co DE.N have gone on strike in recent years. The union did not disclose how many workers at the two plants rejected the four-year deal, which included wage increases of 25% to 38% according to CNH on Sunday. Still, union members said the proposed contract failed to provide enough of a raise to combat inflation, additional vacation days or better healthcare coverage.
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377fc819-504d-4448-b41d-45dc16fba981
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720880.0
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2023-01-08 00:00:00 UTC
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Farm Bureau, Deere & Co sign MOU ensuring farmers' "right to repair" equipment
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DE
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https://www.nasdaq.com/articles/farm-bureau-deere-co-sign-mou-ensuring-farmers-right-to-repair-equipment
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nan
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nan
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By P.J. Huffstutter
CHICAGO, Jan 8 (Reuters) - The American Farm Bureau Federation and machinery manufacturer Deere & Co DE.N signed a memorandum of understanding on Sunday that ensures farmers have the right to repair their own farm equipment or go to an independent technician.
As the agriculture sector accelerates its adoption of technology, the reliance on high-tech machinery such as GPS-guided combines and tractors has become more common-place.
But equipment makers such as Deere have generally required customers to use their parts and service divisions for repairs and until recently, only allowed authorized dealers the means and tools to access the complex computerized systems of their tractors and other machinery.
The Farm Bureau's memorandum of understanding with Deere "will ensure farmers everywhere are able to repair our own equipment," Farm Bureau president Zippy Duvall said, speaking at the federation's convention in Puerto Rico.
"This will enable you and your independent mechanics to identify and fix problems," he said. "You will have access to the diagnostic tools and information you need. And you'll get it at a fair and reasonable price."
Dave Gilmore, Deere's vice president of ag and turf marketing, said the company looks forward to working with the farm group and "our customers in the months and years ahead to ensure farmers continue to have the tools and resources to diagnose, maintain and repair their equipment."
The MOU aims to find a solution to the "right to repair" debate in the private sector, rather than through legislation or regulation, according to the document. It benefits farmers and independent repair facilities in the United States and Puerto Rico, for the "lawful operation and upkeep of Agricultural Equipment," the MOU states.
The "right-to-repair" movement has gained steam as input costs have surged in recent years - as has the price of repairs.
For Deere and rival equipment manufacturers such as CNH Industrial and AGCO Corp, repairing machinery has given them a solid boost for their parts and services business. Consumers have filed a slew of lawsuits against Deere over the issue, and the Biden administration has been pushing for more competition in the rural economy amid rising inflation.
Duvall said Farm Bureau officials will meet regularly with Deere to discuss "solutions to the challenges farmers are facing in repairing their equipment", and said he hoped other farm equipment makers would take similar steps.
(Reporting By P.J. Huffstutter in Chicago; Editing by Daniel Wallis)
((pj.huffstutter@thomsonreuters.com; 313-484-5275 (w); On Twitter @pjhuffstutter; Reuters Messaging: pj.huffstutter.reuters.com@thomsonreuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But equipment makers such as Deere have generally required customers to use their parts and service divisions for repairs and until recently, only allowed authorized dealers the means and tools to access the complex computerized systems of their tractors and other machinery. Dave Gilmore, Deere's vice president of ag and turf marketing, said the company looks forward to working with the farm group and "our customers in the months and years ahead to ensure farmers continue to have the tools and resources to diagnose, maintain and repair their equipment." Consumers have filed a slew of lawsuits against Deere over the issue, and the Biden administration has been pushing for more competition in the rural economy amid rising inflation.
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Huffstutter CHICAGO, Jan 8 (Reuters) - The American Farm Bureau Federation and machinery manufacturer Deere & Co DE.N signed a memorandum of understanding on Sunday that ensures farmers have the right to repair their own farm equipment or go to an independent technician. But equipment makers such as Deere have generally required customers to use their parts and service divisions for repairs and until recently, only allowed authorized dealers the means and tools to access the complex computerized systems of their tractors and other machinery. The Farm Bureau's memorandum of understanding with Deere "will ensure farmers everywhere are able to repair our own equipment," Farm Bureau president Zippy Duvall said, speaking at the federation's convention in Puerto Rico.
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Huffstutter CHICAGO, Jan 8 (Reuters) - The American Farm Bureau Federation and machinery manufacturer Deere & Co DE.N signed a memorandum of understanding on Sunday that ensures farmers have the right to repair their own farm equipment or go to an independent technician. The Farm Bureau's memorandum of understanding with Deere "will ensure farmers everywhere are able to repair our own equipment," Farm Bureau president Zippy Duvall said, speaking at the federation's convention in Puerto Rico. Duvall said Farm Bureau officials will meet regularly with Deere to discuss "solutions to the challenges farmers are facing in repairing their equipment", and said he hoped other farm equipment makers would take similar steps.
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Huffstutter CHICAGO, Jan 8 (Reuters) - The American Farm Bureau Federation and machinery manufacturer Deere & Co DE.N signed a memorandum of understanding on Sunday that ensures farmers have the right to repair their own farm equipment or go to an independent technician. But equipment makers such as Deere have generally required customers to use their parts and service divisions for repairs and until recently, only allowed authorized dealers the means and tools to access the complex computerized systems of their tractors and other machinery. The Farm Bureau's memorandum of understanding with Deere "will ensure farmers everywhere are able to repair our own equipment," Farm Bureau president Zippy Duvall said, speaking at the federation's convention in Puerto Rico.
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31c03775-e41c-4973-bd51-dff9ffd0e3f1
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720881.0
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2023-01-06 00:00:00 UTC
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After Plunging -6.37% in 4 Weeks, Here's Why the Trend Might Reverse for Deere (DE)
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DE
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https://www.nasdaq.com/articles/after-plunging-6.37-in-4-weeks-heres-why-the-trend-might-reverse-for-deere-de
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nan
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nan
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Deere (DE) has been beaten down lately with too much selling pressure. While the stock has lost 6.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
Guide to Identifying Oversold Stocks
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for DE
The heavy selling of DE shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 25.84. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for DE has increased 1%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, DE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. Deere (DE) has been beaten down lately with too much selling pressure.
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Moreover, DE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) has been beaten down lately with too much selling pressure.
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Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. Moreover, DE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. Deere (DE) has been beaten down lately with too much selling pressure.
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Why a Trend Reversal is Due for DE The heavy selling of DE shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 25.84. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand. Deere (DE) has been beaten down lately with too much selling pressure.
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fdc9069b-5b24-4ce3-8548-c84c0823863a
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720882.0
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2023-01-06 00:00:00 UTC
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Notable Friday Option Activity: BOOT, DE, ETSY
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-boot-de-etsy
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Boot Barn Holdings Inc (Symbol: BOOT), where a total of 5,126 contracts have traded so far, representing approximately 512,600 underlying shares. That amounts to about 87.7% of BOOT's average daily trading volume over the past month of 584,345 shares. Especially high volume was seen for the $60 strike put option expiring January 20, 2023, with 2,507 contracts trading so far today, representing approximately 250,700 underlying shares of BOOT. Below is a chart showing BOOT's trailing twelve month trading history, with the $60 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 11,327 contracts, representing approximately 1.1 million underlying shares or approximately 87.2% of DE's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $425 strike put option expiring January 06, 2023, with 692 contracts trading so far today, representing approximately 69,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $425 strike highlighted in orange:
And Etsy Inc (Symbol: ETSY) options are showing a volume of 22,302 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 87.2% of ETSY's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $165 strike put option expiring January 20, 2023, with 2,810 contracts trading so far today, representing approximately 281,000 underlying shares of ETSY. Below is a chart showing ETSY's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for BOOT options, DE options, or ETSY options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
SIMO Dividend History
FMC Stock Split History
Funds Holding TSJA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $60 strike put option expiring January 20, 2023, with 2,507 contracts trading so far today, representing approximately 250,700 underlying shares of BOOT. Particularly high volume was seen for the $425 strike put option expiring January 06, 2023, with 692 contracts trading so far today, representing approximately 69,200 underlying shares of DE. Especially high volume was seen for the $165 strike put option expiring January 20, 2023, with 2,810 contracts trading so far today, representing approximately 281,000 underlying shares of ETSY.
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Especially high volume was seen for the $60 strike put option expiring January 20, 2023, with 2,507 contracts trading so far today, representing approximately 250,700 underlying shares of BOOT. Below is a chart showing BOOT's trailing twelve month trading history, with the $60 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,327 contracts, representing approximately 1.1 million underlying shares or approximately 87.2% of DE's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $425 strike highlighted in orange: And Etsy Inc (Symbol: ETSY) options are showing a volume of 22,302 contracts thus far today.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Boot Barn Holdings Inc (Symbol: BOOT), where a total of 5,126 contracts have traded so far, representing approximately 512,600 underlying shares. Below is a chart showing BOOT's trailing twelve month trading history, with the $60 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,327 contracts, representing approximately 1.1 million underlying shares or approximately 87.2% of DE's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing ETSY's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for BOOT options, DE options, or ETSY options, visit StockOptionsChannel.com.
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Especially high volume was seen for the $60 strike put option expiring January 20, 2023, with 2,507 contracts trading so far today, representing approximately 250,700 underlying shares of BOOT. Below is a chart showing BOOT's trailing twelve month trading history, with the $60 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,327 contracts, representing approximately 1.1 million underlying shares or approximately 87.2% of DE's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $165 strike put option expiring January 20, 2023, with 2,810 contracts trading so far today, representing approximately 281,000 underlying shares of ETSY.
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97221b17-3b79-4097-be06-f6e4e92eb8a5
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720883.0
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2023-01-06 00:00:00 UTC
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CES technology trade show adopts social theme
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https://www.nasdaq.com/articles/ces-technology-trade-show-adopts-social-theme
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By Dawn Chmielewski
Las Vegas, Jan 6 (Reuters) - Farm equipment took the keynote spotlight at the CES technology trade show in Las Vegas, as "human security for all" became the first theme in its 56-year history.
In his speech opening the Consumer Electronics Show on Thursday, John Deere Chief Executive John May laid out a strategy of using technology to feed a hungry world as arable land and rural labor decline while costs are rising.
"Technology allows farmers to create more with less," May told an audience of 2,000 at one of the world's largest tech events, organized by the Consumer Technology Association (CTA).
The trade group is partnering with the World Academy of Art and Science and the United Nations Trust Fund for Human Security to encourage the tech industry to help tackle the world's most pressing problems.
"This is the next big idea," said Walt Stinson, co-founder of electronics retailer ListenUp, who approached the CTA about a potential partnership.
Several panels discussed how innovation helps to solve global challenges. Representatives of Nokia of America Corp ALUAL.UL, Siemens AG SIEGn.DE and Alphabet Inc's GOOGL.O Google talked about applying technology to help create a sustainable supply of food and closing the global education gap.
Working to improve the human condition ultimately pays dividends, said Ketan Patel, a longtime Goldman Sachs banker who now runs the Force for Good Foundation.
"If you add to the purpose of every tech company, all of a sudden you have a moral purpose, you have something that could be hugely profitable," Patel said, "because your technology reaches a customer base that (previously) was not profitable."
The CES sessions are the first phase of the trade group's "rolling thunder" campaign to raise awareness across all sectors of the economy, said Garry Jacobs, executive chairman of the Human Security For All campaign. The group plans to make its pitch to the world's universities in the coming months.
"These challenges cannot be handled by nation states or multilateral institutions," said Jacobs. "It requires the cooperation of global society in its different segments."
(Reporting by Dawn Chmielewski in Las Vegas; Editing by Richard Chang)
((Dawn.Chmielewski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"This is the next big idea," said Walt Stinson, co-founder of electronics retailer ListenUp, who approached the CTA about a potential partnership. Representatives of Nokia of America Corp ALUAL.UL, Siemens AG SIEGn.DE and Alphabet Inc's GOOGL.O Google talked about applying technology to help create a sustainable supply of food and closing the global education gap. Working to improve the human condition ultimately pays dividends, said Ketan Patel, a longtime Goldman Sachs banker who now runs the Force for Good Foundation.
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By Dawn Chmielewski Las Vegas, Jan 6 (Reuters) - Farm equipment took the keynote spotlight at the CES technology trade show in Las Vegas, as "human security for all" became the first theme in its 56-year history. In his speech opening the Consumer Electronics Show on Thursday, John Deere Chief Executive John May laid out a strategy of using technology to feed a hungry world as arable land and rural labor decline while costs are rising. The trade group is partnering with the World Academy of Art and Science and the United Nations Trust Fund for Human Security to encourage the tech industry to help tackle the world's most pressing problems.
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By Dawn Chmielewski Las Vegas, Jan 6 (Reuters) - Farm equipment took the keynote spotlight at the CES technology trade show in Las Vegas, as "human security for all" became the first theme in its 56-year history. In his speech opening the Consumer Electronics Show on Thursday, John Deere Chief Executive John May laid out a strategy of using technology to feed a hungry world as arable land and rural labor decline while costs are rising. The trade group is partnering with the World Academy of Art and Science and the United Nations Trust Fund for Human Security to encourage the tech industry to help tackle the world's most pressing problems.
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By Dawn Chmielewski Las Vegas, Jan 6 (Reuters) - Farm equipment took the keynote spotlight at the CES technology trade show in Las Vegas, as "human security for all" became the first theme in its 56-year history. In his speech opening the Consumer Electronics Show on Thursday, John Deere Chief Executive John May laid out a strategy of using technology to feed a hungry world as arable land and rural labor decline while costs are rising. The trade group is partnering with the World Academy of Art and Science and the United Nations Trust Fund for Human Security to encourage the tech industry to help tackle the world's most pressing problems.
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b11728f6-bb76-46e3-9f6f-04f25effc710
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720884.0
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2023-01-06 00:00:00 UTC
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MSC Industrial (MSM) Earnings Top Estimates in Q1, Up Y/Y
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https://www.nasdaq.com/articles/msc-industrial-msm-earnings-top-estimates-in-q1-up-y-y
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MSC Industrial Direct Company, Inc. MSM reported first-quarter fiscal 2022 (ended on Dec 3, 2022) adjusted earnings per share (EPS) of $1.48, beating the Zacks Consensus Estimate of $1.46. The bottom line improved 18% year over year on the back of double-digit average daily sales growth and productivity gains from its Mission Critical growth initiatives.
Including one-time items, the company reported EPS of $1.45 compared with the year-ago quarter’s EPS of $1.18.
MSC Industrial generated revenues of around $958 million in the quarter under review, up 13% from $849 million reported in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $948 million. Average daily sales grew 12.9% in the quarter under review.
MSM is delivering top-line growth aided by the ongoing execution of its five growth drivers — solidifying metalworking, leveraging portfolio strength, expanding solutions, growing e-commerce and diversifying customers and end-markets.
MSC Industrial Direct Company, Inc. Price, Consensus and EPS Surprise
MSC Industrial Direct Company, Inc. price-consensus-eps-surprise-chart | MSC Industrial Direct Company, Inc. Quote
Operational Update
The cost of goods sold increased 13% year over year to $560 million. Gross profit was up 13% to $398 million. The gross margin came in at 41.5% compared with the year-ago quarter’s 41.6%.
Adjusted operating expenses rose 9% year over year to $279.5 million during the fiscal first quarter. Adjusted operating income amounted to $118 million, up 23% from $96 million. Adjusted operating margin came in at 12.3% in the reported quarter compared with the prior-year quarter’s 11.3%.
Financial Position
MSC Industrial had cash and cash equivalents of $26 million at the end of the fiscal first quarter of fiscal 2023 compared with $44 million at the end of fiscal 2021. The company generated a cash flow of $76 million from operating activities in the first quarter of fiscal 2023, compared with the prior-year quarter’s cash flow of $58 million.
MSM's long-term debt was $454 million at the end of the fiscal first quarter of 2023, down from $469 million at fiscal 2022-end. MSM repurchased more than 200,000 shares during the quarter at an average purchase price per share of $79.60.
Guidance
MSC Industrial anticipates gross margins to contract by 40 to 70 basis points year over year in fiscal 2023. Average daily sales growth is expected in the range of 5% to 9%. Adjusted operating expense as a percentage of sales is expected to improve in the back half of fiscal 2023. Adjusted operating margin is projected in the range of 12.7% to 13.3% in fiscal 2023.
Price Performance
Image Source: Zacks Investment Research
MSC Industrial’s shares have lost 7.5% in the past year compared with the industry’s 22.0% fall.
Zacks Rank & Stocks to Consider
MSC Industrial currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4 KNBE, Deere & Company DE, and Belden BDC. KNBE sports a Zacks Rank #1 (Strong Buy) at present, while DE and BDC hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate has moved up 25% in the past 60 days. KNBE’s shares have gained 15.5% in a year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from the last year. The consensus estimate moved 5.1% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares have increased 10.2% in the last year.
Belden has an average trailing four-quarter earnings surprise of 12%. The Zacks Consensus Estimate for BDC’s 2022 earnings is pegged at $6.33 per share. This indicates a 32.4% increase from the prior-year reported figure. The consensus estimate has been revised 2.1% north in the past 60 days. BDC’s shares gained 16.5% in the last year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
Belden Inc (BDC) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MSC Industrial Direct Company, Inc. MSM reported first-quarter fiscal 2022 (ended on Dec 3, 2022) adjusted earnings per share (EPS) of $1.48, beating the Zacks Consensus Estimate of $1.46. The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from the last year. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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MSC Industrial Direct Company, Inc. MSM reported first-quarter fiscal 2022 (ended on Dec 3, 2022) adjusted earnings per share (EPS) of $1.48, beating the Zacks Consensus Estimate of $1.46. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Belden Inc (BDC) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. MSC Industrial generated revenues of around $958 million in the quarter under review, up 13% from $849 million reported in the year-ago quarter.
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MSC Industrial Direct Company, Inc. MSM reported first-quarter fiscal 2022 (ended on Dec 3, 2022) adjusted earnings per share (EPS) of $1.48, beating the Zacks Consensus Estimate of $1.46. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Belden Inc (BDC) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. MSC Industrial generated revenues of around $958 million in the quarter under review, up 13% from $849 million reported in the year-ago quarter.
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The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from the last year. MSC Industrial Direct Company, Inc. MSM reported first-quarter fiscal 2022 (ended on Dec 3, 2022) adjusted earnings per share (EPS) of $1.48, beating the Zacks Consensus Estimate of $1.46. MSC Industrial generated revenues of around $958 million in the quarter under review, up 13% from $849 million reported in the year-ago quarter.
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a4a3c13e-b90b-473a-8db7-673330145aa3
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720885.0
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2023-01-06 00:00:00 UTC
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Lindsay (LNN) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
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https://www.nasdaq.com/articles/lindsay-lnn-q1-earnings-beat-estimates-revenues-rise-y-y
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Lindsay LNN delivered adjusted earnings per share of $1.65 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.25. The bottom line surged 129% year over year, aided by solid demand, improved price realization and easing inflationary headwinds in the irrigation business. The infrastructure business benefitted from higher Road Zipper System sales.
Lindsay generated revenues of $176 million, up 6% from the $166 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $179 million.
The company’s backlog as of Nov 30, 2022, was around $130 million compared with $155 million as of Nov 30, 2021. Both irrigation and infrastructure backlog declined year over year.
Operational Update
The cost of operating revenues decreased 4.3% year over year to $123 million. Gross profit increased 41.6% to $53 million from the year-earlier quarter. The gross margin was 30.1% compared with the year-ago quarter’s 22.5%.
Operating expenses were $28 million in the fiscal first quarter, up 18% year over year. Operating income was $24.6 million, up from the prior-year quarter’s $13.4 million.
Lindsay Corporation Price, Consensus and EPS Surprise
Lindsay Corporation price-consensus-eps-surprise-chart | Lindsay Corporation Quote
Segment Results
The Irrigation segment revenues rose 4% year over year to around $152 million in the fiscal first quarter. North America irrigation revenues gained 6% from the year-ago quarter to around $84 million on higher average selling prices.
International irrigation revenues increased 2% year over year to roughly $68 million. Strong sales growth in Brazil and other markets helped offset the impacts of reduced sales in Ukraine and Russia, as well as a large Egypt project in the prior year that was not repeated this quarter. The irrigation segment’s operating income surged 66% year over year to $29 million, owing to improved price realization, a more favorable margin mix of international irrigation revenues, and a lower inflationary impact on input costs than the first quarter of fiscal 2022.
The Infrastructure segment revenues increased 19% year over year to $24 million on higher Road Zipper System project sales. However, this was partially offset by lower Road Zipper System lease revenues. Operating income was $3.4 million in the quarter under review compared with $2.8 million in the prior-year quarter.
Financial Position
Lindsay had cash and cash equivalents of roughly $99 million at the end of the first quarter of fiscal 2023 compared with $85 million at the end of the prior-year quarter. The company’s long-term debt stood at around $115 million at the end of Nov 30, 2022, flat with that reported on Nov 30, 2021.
Outlook
North America irrigation equipment demand is likely to remain positive, based on current commodity price levels and upbeat net farm income projections/expectations. The company anticipates demand in international markets to benefit from higher production, driven by favorable agricultural market fundamentals and ongoing concerns over food security and global grain supplies.
The infrastructure segment will likely gain from the ongoing management of the company’s project sales funnel and the expected increase in U.S. infrastructure spending.
Price Performance
Lindsay’s shares have gained 16.6% in the past year compared with the industry’s growth of 11.3%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
LNN currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are KnowBe4 KNBE, Deere & Company DE, and Belden BDC. KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, and DE and BDC carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate has moved up 25% in the past 60 days. KNBE’s shares have gained 15.5% in a year.
The Zacks Consensus Estimate for Deere & Company’s 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from that reported in the last year. The consensus estimate moved 5.1% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 10.2% in the last year.
Belden has an average trailing four-quarter earnings surprise of 12%. The Zacks Consensus Estimate for BDC’s 2022 earnings is pegged at $6.33 per share. This indicates a 32.4% increase from the prior-year reported figure. The consensus estimate has been revised 2.1% north in the past 60 days. BDC’s shares gained 16.5% in the last year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Lindsay Corporation (LNN) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Belden Inc (BDC) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lindsay LNN delivered adjusted earnings per share of $1.65 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.25. Outlook North America irrigation equipment demand is likely to remain positive, based on current commodity price levels and upbeat net farm income projections/expectations. The Zacks Consensus Estimate for Deere & Company’s 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from that reported in the last year.
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Click to get this free report Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Belden Inc (BDC) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Lindsay LNN delivered adjusted earnings per share of $1.65 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.25. The bottom line surged 129% year over year, aided by solid demand, improved price realization and easing inflationary headwinds in the irrigation business.
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Click to get this free report Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Belden Inc (BDC) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Lindsay LNN delivered adjusted earnings per share of $1.65 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.25. The bottom line surged 129% year over year, aided by solid demand, improved price realization and easing inflationary headwinds in the irrigation business.
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The Zacks Consensus Estimate for Deere & Company’s 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from that reported in the last year. Lindsay LNN delivered adjusted earnings per share of $1.65 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.25. The bottom line surged 129% year over year, aided by solid demand, improved price realization and easing inflationary headwinds in the irrigation business.
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da794c9c-b6f6-4a4d-b7f9-049f58e8fd79
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720886.0
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2023-01-06 00:00:00 UTC
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Investors Heavily Search Deere & Company (DE): Here is What You Need to Know
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https://www.nasdaq.com/articles/investors-heavily-search-deere-company-de%3A-here-is-what-you-need-to-know-0
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Deere (DE) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this agricultural equipment manufacturer have returned -6.4% over the past month versus the Zacks S&P 500 composite's -4.6% change. The Zacks Manufacturing - Farm Equipment industry, to which Deere belongs, has lost 4.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Deere is expected to post earnings of $5.49 per share for the current quarter, representing a year-over-year change of +88%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.7%.
The consensus earnings estimate of $27.85 for the current fiscal year indicates a year-over-year change of +19.6%. This estimate has changed +1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $29 indicates a change of +4.1% from what Deere is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Deere.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Deere, the consensus sales estimate of $11.42 billion for the current quarter points to a year-over-year change of +33.9%. The $54.28 billion and $54.98 billion estimates for the current and next fiscal years indicate changes of +13.3% and +1.3%, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $14.35 billion in the last reported quarter, representing a year-over-year change of +39.7%. EPS of $7.44 for the same period compares with $4.12 a year ago.
Compared to the Zacks Consensus Estimate of $13.64 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +5.08%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. Deere (DE) has been one of the most searched-for stocks on Zacks.com lately.
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Last Reported Results and Surprise History Deere reported revenues of $14.35 billion in the last reported quarter, representing a year-over-year change of +39.7%. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Deere. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. Deere (DE) has been one of the most searched-for stocks on Zacks.com lately.
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The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Deere. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Deere (DE) has been one of the most searched-for stocks on Zacks.com lately.
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a8fddc0e-dfbc-4445-9c05-56d5fb41e781
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720887.0
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2023-01-06 00:00:00 UTC
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Pick Either Deere Stock Or Its Peer – Both May Offer Similar Returns
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https://www.nasdaq.com/articles/pick-either-deere-stock-or-its-peer-both-may-offer-similar-returns
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nan
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nan
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We believe that industrial companies Deere stock (NYSE: DE) and Caterpillar stock (NYSE: CAT) will likely offer similar returns over the next three years. Although Deere is trading at a marginally higher valuation of 2.4x trailing revenues vs. 2.2x for Caterpillar, this gap in the valuation is justified given Deere’s superior revenue growth and profitability, as discussed below.
If we look at stock returns, Deere, with 22% gains last year, has fared better than the 16% return for Caterpillar stock and -20% returns for the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss the possible stock returns for DE and CAT in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Deere vs. Caterpillar: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Deere’s Revenue Growth Is Better
Both companies posted double-digit sales growth over the last twelve months. Still, Deere’s revenue growth of 19.4% is slightly higher than 17.0% for Caterpillar.
Even if we look at a longer time frame, Deere fares better, with its revenue rising at an average annual growth rate of 11.3% to $52.6 billion in fiscal 2022, compared to $39.3 billion in fiscal 2019 (fiscal ends in October). In comparison, Caterpillar’s sales declined at an average annual rate of 0.7% to $51.0 billion in 2021, vs. $54.7 billion in 2018.
Deere sees higher demand for agriculture equipment. The company benefits from the above-average age of farming equipment in the U.S., and the demand has also been buoyed by rising agricultural income and better price realization.
If we look at Q4, 2022, sales were up a stellar 59% for Production & Precision Agriculture and 26% for Small Agriculture & Turf segment. The sales growth was driven by higher volume/mix and better price realization, a trend expected to continue in the near term.
A better pricing environment has driven Caterpillar’s revenue growth over the recent quarters.
Caterpillar is also benefiting from the rise in commodity prices. Higher commodity prices translate into higher capital spending for miners, bolstering the demand for Caterpillar’s mining equipment. In fact, the resource industries was the best-performing segment for Caterpillar for the nine months ending Sep 2022, led by a high end-user demand for heavy construction and mining equipment.
Our Deere Revenue Comparison and Caterpillar Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, Deere’s revenue is expected to grow faster than Caterpillar’s over the next three years. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of 10.7% for Deere, compared to an 8.7% CAGR for Caterpillar, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies that are negatively impacted by Covid and those that are not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Deere Is More Profitable But Comes At Higher Risk
Deere’s operating margin of 21.4% over the last twelve-month period is higher than 13.1% for Caterpillar.
This compares with 14.6% and 17.9% figures seen in 2019, before the pandemic, respectively.
Caterpillar’s free cash flow margin of 10.5% is better than 7.9% for Deere.
Our Deere Operating Income Comparison and Caterpillar Operating Income Comparison dashboards have more details.
Looking at financial risk, Caterpillar fares better. Its 3.3% debt as a percentage of equity is much lower than 40.6% for Deere, while its 7.8% cash as a percentage of assets is higher than 6.1% for the latter, implying that CAT has a better debt position and more cash cushion, making it a comparatively less risky bet.
3. The Net of It All
We see that Deere has demonstrated better revenue growth in recent years and is more profitable. On the other hand, Caterpillar is trading at a slightly lower valuation and comes at a lower risk.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both Caterpillar and Deere are likely to offer similar returns over the next three years.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 14% for Deere over this period and an 11% expected return for Caterpillar, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Deere vs. Caterpillar – which also provides more details on how we arrive at these numbers.
While DE and CAT stocks may offer similar returns over the next three years, it is helpful to see how Deere’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Corning vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
DE Return -1% -1% 312%
CAT Return 0% 0% 158%
S&P 500 Return 0% 0% 71%
Trefis Multi-Strategy Portfolio 0% 0% 214%
[1] Month-to-date and year-to-date as of 1/4/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Deere vs. Caterpillar: Which Stock Is A Better Bet? In fact, the resource industries was the best-performing segment for Caterpillar for the nine months ending Sep 2022, led by a high end-user demand for heavy construction and mining equipment. While DE and CAT stocks may offer similar returns over the next three years, it is helpful to see how Deere’s Peers fare on metrics that matter.
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We believe that industrial companies Deere stock (NYSE: DE) and Caterpillar stock (NYSE: CAT) will likely offer similar returns over the next three years. Even if we look at a longer time frame, Deere fares better, with its revenue rising at an average annual growth rate of 11.3% to $52.6 billion in fiscal 2022, compared to $39.3 billion in fiscal 2019 (fiscal ends in October). The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 14% for Deere over this period and an 11% expected return for Caterpillar, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Deere vs. Caterpillar – which also provides more details on how we arrive at these numbers.
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Although Deere is trading at a marginally higher valuation of 2.4x trailing revenues vs. 2.2x for Caterpillar, this gap in the valuation is justified given Deere’s superior revenue growth and profitability, as discussed below. If we look at stock returns, Deere, with 22% gains last year, has fared better than the 16% return for Caterpillar stock and -20% returns for the broader S&P 500 index. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 14% for Deere over this period and an 11% expected return for Caterpillar, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Deere vs. Caterpillar – which also provides more details on how we arrive at these numbers.
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If we look at stock returns, Deere, with 22% gains last year, has fared better than the 16% return for Caterpillar stock and -20% returns for the broader S&P 500 index. Still, Deere’s revenue growth of 19.4% is slightly higher than 17.0% for Caterpillar. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 14% for Deere over this period and an 11% expected return for Caterpillar, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Deere vs. Caterpillar – which also provides more details on how we arrive at these numbers.
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eebb7a8d-3c7e-44f5-87e6-3c41657f5102
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720888.0
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2023-01-05 00:00:00 UTC
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My Top 3 Dividend Stocks to Buy for 2023!
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DE
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https://www.nasdaq.com/articles/my-top-3-dividend-stocks-to-buy-for-2023
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nan
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nan
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Dividend investing has been an excellent way to build wealth for generations. This video will highlight my top three dividend stocks to buy for 2023.
*Stock prices used were the afternoon prices of Jan. 2, 2023. The video was published on Jan. 4, 2023.
10 stocks we like better than Deere
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Intel. The Motley Fool recommends Deere and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short January 2025 $45 puts on Intel. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere wasn't one of them! Dividend investing has been an excellent way to build wealth for generations.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Deere and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short January 2025 $45 puts on Intel.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Deere and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short January 2025 $45 puts on Intel.
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This video will highlight my top three dividend stocks to buy for 2023. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Intel.
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bde1c347-764c-43d0-8627-bdbf53333e54
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720889.0
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2023-01-04 00:00:00 UTC
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3 Top-Ranked Large Caps For a Steady Portfolio
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DE
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https://www.nasdaq.com/articles/3-top-ranked-large-caps-for-a-steady-portfolio
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nan
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nan
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Large-cap stocks are a staple in nearly every portfolio. They’re well-established in nature, have greater analyst coverage, and commonly pay dividends, undoubtedly significant perks that make them so beloved among investors.
While many of these stocks no longer enjoy supercharged growth, there are still several currently top-ranked large-caps with impressive earnings outlooks, including PepsiCo PEP, Deere & Company DE, and Paychex Inc. PAYX.
The chart below illustrates the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three have outperformed the S&P 500 over the last year, indicating positive momentum. Let’s take a closer look at each one.
PepsiCo Inc.
PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. Currently, the company sports a favorable Zacks Rank #2 (Buy).
A significant positive, PepsiCo belongs to the elite Dividend Kings group, showing an unparalleled commitment to its shareholders through 50+ years of increased payouts.
PEP’s annual dividend currently yields 2.5%, a few ticks below its Zacks Consumer Staples sector average of 2.7%. Still, PepsiCo’s 6.5% five-year annualized dividend growth rate helps bridge the gap.
Image Source: Zacks Investment Research
PepsiCo has been on an impressive earnings streak as of late, exceeding earnings and revenue estimates in each of its last three quarters. In its latest release, PEP registered a 6.5% EPS beat and reported revenue 5.3% above expectations.
Image Source: Zacks Investment Research
Deere & Company
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand and signature green and yellow color scheme.
The company has witnessed positive earnings estimate revisions roll in from analysts, helping push the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
DE shares aren’t expensive, further displayed by its Style Score of “B” for value. The company’s forward earnings multiple resides at 15.3X, nicely beneath its 16.6X five-year median and Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
Paychex Inc.
Paychex is a recognized leader in the payroll, human resource, and benefits outsourcing industry. Like the stocks above, PAYX’s earnings outlook has drifted higher over the last several months, pushing it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
PAYX carries a favorable growth profile, with earnings forecasted to climb 13% in FY23 and a further 8% in FY24. The projected earnings growth comes on top of estimated Y/Y revenue upticks of 8.2% and 6% in FY23 and FY24, respectively.
Image Source: Zacks Investment Research
And for the cherry on top, the company rewards its shareholders handsomely; PAYX's annual dividend currently yields a solid 2.7%, nicely above its Zacks Business Services sector average of roughly 1%.
Impressively, the company’s payout has grown by nearly 8% over the last five years.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are found in every portfolio, and for understandable reasons – large-caps are highly liquid, carry strong brand recognition, boast top-tier management, and carry a strong level of stability.
In addition, they often pay dividends, another stellar aspect of these companies.
For those searching for large-cap stocks with solid earnings outlooks, all three stocks above – PepsiCo PEP, Deere & Company DE, and Paychex Inc. PAYX – could be of consideration.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Paychex, Inc. (PAYX) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While many of these stocks no longer enjoy supercharged growth, there are still several currently top-ranked large-caps with impressive earnings outlooks, including PepsiCo PEP, Deere & Company DE, and Paychex Inc. PAYX. A significant positive, PepsiCo belongs to the elite Dividend Kings group, showing an unparalleled commitment to its shareholders through 50+ years of increased payouts. The company’s forward earnings multiple resides at 15.3X, nicely beneath its 16.6X five-year median and Zacks Industrial Products sector average.
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While many of these stocks no longer enjoy supercharged growth, there are still several currently top-ranked large-caps with impressive earnings outlooks, including PepsiCo PEP, Deere & Company DE, and Paychex Inc. PAYX. For those searching for large-cap stocks with solid earnings outlooks, all three stocks above – PepsiCo PEP, Deere & Company DE, and Paychex Inc. PAYX – could be of consideration. Click to get this free report Paychex, Inc. (PAYX) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research And for the cherry on top, the company rewards its shareholders handsomely; PAYX's annual dividend currently yields a solid 2.7%, nicely above its Zacks Business Services sector average of roughly 1%. For those searching for large-cap stocks with solid earnings outlooks, all three stocks above – PepsiCo PEP, Deere & Company DE, and Paychex Inc. PAYX – could be of consideration. Click to get this free report Paychex, Inc. (PAYX) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research And for the cherry on top, the company rewards its shareholders handsomely; PAYX's annual dividend currently yields a solid 2.7%, nicely above its Zacks Business Services sector average of roughly 1%. For those searching for large-cap stocks with solid earnings outlooks, all three stocks above – PepsiCo PEP, Deere & Company DE, and Paychex Inc. PAYX – could be of consideration. They’re well-established in nature, have greater analyst coverage, and commonly pay dividends, undoubtedly significant perks that make them so beloved among investors.
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6554303a-44e9-413c-bebf-c546f46796be
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720890.0
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2023-01-04 00:00:00 UTC
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Pentair (PNR) Rides on Strong Demand in the Pool Business
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DE
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https://www.nasdaq.com/articles/pentair-pnr-rides-on-strong-demand-in-the-pool-business
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nan
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Pentair plc PNR is poised well to gain from solid demand for swimming pools. Focus on investing in innovation, technology and acquisitions in the pool business as well as residential and commercial water treatment will continue to stoke growth.
Strong Pool Demand to Aid Growth
Pentair’s pool business has generated a 10-year revenue CAGR of approximately 10%. The business benefitted from the surge in demand for swimming pools amid the pandemic as consumers were forced to stay at home, which triggered the desire to invest in their backyards. Even though the impact of the pandemic has abated, consumers continue to enhance their at-home quality of life by investing in pools. The emergence of Airbnb and Vrbo has also contributed to the rise in demand for homes with pools.
PNR estimates that the pool industry in North America caters to a large installed base of approximately 5.4 million pools, with the average age of these pools approaching 25 years. Around 60% of the industrial demand is for repairing, 20% for major remodeling and 20% for new pools. Pentair is poised well to gain from these demand trends in the long term. Also, given that half of the installed pools lack any form of automation, the growing preference for more autonomous and energy-efficient pools will benefit the company as well.
Transformation Program to Boost Margins
During second-quarter 2021, Pentair launched a Transformation program to accelerate growth and drive margin expansion. The program, structured in multiple phases, is expected to drive operational efficiency, streamline processes, and reduce complexity while meeting financial objectives. It will also utilize automation to increase productivity. The company is projecting at least 300 basis points of margin expansion by 2025 through the program.
Innovation, Acquisitions Remain Key Catalysts
Pentair is investing in digital transformation, innovation and technology. Its strategy to grow through acquisitions in the high-growth areas of pool, residential and commercial water treatment, is commendable. In the Water Treatment business, Pentair is investing in innovative components, such as flat-connected valves for water softeners. Within Water Treatment, the company believes that there are opportunities to rapidly expand its $50 million end-to-end residential services business.
In July 2022, Pentair completed the acquisition of Manitowoc Ice, which enables the company to enhance and deliver total water management offerings to an expanded network of channel partners and customers. The buyout will expand the company’s commercial water solutions platform and drive growth in the food service industry.
Price Performance
Image Source: Zacks Investment Research
Pentair’s shares have gained 6.3% in the past three months compared with the industry’s decline of 3%.
Zacks Rank & Stocks to Consider
Pentair currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Industrial Products sector are KnowBe4 KNBE, Deere & Company DE and Caterpillar Inc. CAT. While KNBE sports a Zacks Rank of 1, DE and CAT carry a Zacks Rank of 2.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents per share, indicating a 118% increase year over year. The estimates have gone up 4% in the past 30 days. KNBE’s shares have appreciated 11% in the past three months.
The Zacks Consensus Estimate for Deere earnings per share in fiscal 2023 is pegged at $27.83, suggesting a 19.5% increase from last year. The consensus estimate has moved 2% upward in the past 30 days. DE has a trailing four-quarter average earnings surprise of 7%. DE’s shares have gained 19% in the past three months.
Caterpillar has an estimated year-over-year earnings growth rate of 28% for fiscal 2022. The earnings per share estimate is currently pegged at $13.85. Estimates have been revised by 1% north in the past 30 days. CAT has an average trailing four-quarter earnings surprise of 14.7%. Its shares have gained 34% over the past three months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Pentair plc (PNR) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The business benefitted from the surge in demand for swimming pools amid the pandemic as consumers were forced to stay at home, which triggered the desire to invest in their backyards. In July 2022, Pentair completed the acquisition of Manitowoc Ice, which enables the company to enhance and deliver total water management offerings to an expanded network of channel partners and customers. Pentair plc PNR is poised well to gain from solid demand for swimming pools.
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Focus on investing in innovation, technology and acquisitions in the pool business as well as residential and commercial water treatment will continue to stoke growth. Some other top-ranked stocks in the Industrial Products sector are KnowBe4 KNBE, Deere & Company DE and Caterpillar Inc. CAT. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Pentair plc (PNR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Pentair plc (PNR) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Pentair plc PNR is poised well to gain from solid demand for swimming pools. Focus on investing in innovation, technology and acquisitions in the pool business as well as residential and commercial water treatment will continue to stoke growth.
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Focus on investing in innovation, technology and acquisitions in the pool business as well as residential and commercial water treatment will continue to stoke growth. Pentair plc PNR is poised well to gain from solid demand for swimming pools. Strong Pool Demand to Aid Growth Pentair’s pool business has generated a 10-year revenue CAGR of approximately 10%.
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71963f50-e89d-4ff3-b4b2-20bbcb832041
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720891.0
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2023-01-04 00:00:00 UTC
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2 Stocks Down Over 60% to Buy Right Now
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DE
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https://www.nasdaq.com/articles/2-stocks-down-over-60-to-buy-right-now
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nan
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As bad as the 2022 sell-off on the S&P 500 and the Nasdaq Composite has been, there are plenty of companies that are down far worse than the broader indices. Even industry-leading companies like Tesla (NASDAQ: TSLA) and Stanley Black & Decker (NYSE: SWK) are down over 60% year to date (YTD).
Both companies may have fallen too far. Tesla is starting to look like a good value, while Stanley Black & Decker is a blue-chip dividend stock that is a reliable source of passive income. Here's what makes each company a great buy now.
Image source: Getty Images.
A healthy price drop
Howard Smith (Tesla): The plunge in Tesla's share price this year isn't surprising considering its lofty valuation. But the company is still growing at an astounding rate and bringing in cash at a fast pace. The company will invest that cash to help it continue to grow. But investors have sold the stock in droves in recent months.
Some of that is related to CEO Elon Musk's venture with Twitter, which has pulled him away from Tesla. Another business-related concern is that between growing competition and slowing global economies, the company may fail to achieve its projected growth rate.
Analysts have been reducing Tesla's fourth-quarter vehicle production estimates due to the aforementioned issues, along with COVID-19-related issues in the important Chinese market. But 2022 production volume of nearly 1.4 million vehicles represented an increase of 47% year over year. Something investors need to monitor, however, is that production numbers have outpaced vehicle deliveries over the past two quarterly periods. That could indicate the start of a scenario where Tesla's production capacity is outpacing demand.
Tesla also has been gaining revenue from other areas of its business. The image below shows the various sources of third-quarter revenue. Over 12% of 2022 sales have come from its growing services and energy segments through September.
Image source: The Motley Fool, based on data from Tesla's SEC filings.
With a forward price-to-earnings ratio now below 30, Tesla's valuation can no longer be considered unconventionally high. Headwinds remain, of course, and the stock could still go lower. Investors in Tesla shouldn't be looking at a timeline of just a year or two. But for those investing for the long term, the stock drop makes now a good time to begin accumulating shares.
This high-yield Dividend King is worth buying now
Daniel Foelber (Stanley Black & Decker): I agree with Howard that Tesla looks like a compelling buy for growth investors looking to buy the industry-leading EV company at a historically low valuation.
Stanley Black & Decker may have next to no similarities to Tesla. But it's another well-known stock that is down over 60% year to date.
Unlike Tesla, Stanley Black & Decker is a Dividend King that has paid and raised its dividend for 55 consecutive years. Dividend Kings are S&P 500 components that have paid and raised their dividends for at least 50 consecutive years.
Like Tesla, Stanley Black & Decker is facing a slew of headwinds that are applying a lot of downward pressure on its stock price -- namely declining demand and cost inflation. But the company is confident it can improve its supply chain and get its gross margins back above 35%, as well as grow cash flow and organic growth faster than its competitors.
One look at the 10-year chart of the company's stock price and its gross margin and it's clear to see the importance of getting margins back to the levels that investors expect.
SWK data by YCharts
A challenge facing Stanley Black & Decker that starkly contrasts with those of other industrial companies is that Stanley Black & Decker has much more exposure to the consumer instead of business-to-business sales. Tesla has the same problem. In today's economy, companies like Caterpillar, Deere, and Honeywell that mainly sell to other businesses are doing quite well, whereas those that are selling to a consumer that is tightening their purse springs are relatively more impacted by rising interest rates and inflation.
For example, Stanley Black & Decker's tools and outdoor sales were up 17% for the first three quarters of 2022. But tools and outdoor profits fell 45%. Meanwhile, the company's industrial segment saw sales rise just 4% for the first three quarters of 2022 and profits were down 17% compared to the first three quarters of 2021. Both segments aren't doing well. But the industrial business is doing a relatively better job at retaining profitability.
In its Q3 2022 investor presentation and during its Q3earnings call Stanley Black & Decker highlighted professional construction and industrial customer demand as a "bright spot" amid macroeconomic challenges. It expects negative organic growth for its tools and outdoor segment for the full-year 2022 but a high single-digit to low double-digit increase in industrial organic growth for the year.
Earnings declines and slowing organic growth are never what investors want to hear. But the silver lining of Stanley Black & Decker's woes is that investors can get a quality Dividend King at a price not seen for several years. Stanley Black & Decker has a dividend yield of 4.3% -- which provides a sizable passive income stream, and compensates investors for their patience while they wait for the business to turn around.
A compelling buying opportunity
If you're a net saver that regularly puts your hard-earned savings to work by dollar-cost averaging into stocks over time, then bear markets can help lead you to lasting wealth by offering you a chance to accumulate more shares for the same amount of money. So even if you have several paper losses, you can lower your cost basis while keeping the same savings plan.
Stocks like Tesla and Stanley Black & Decker could continue to go down before they go up. And given each company's exposure to the broader economy, expect growth to slow in the quarters to come.
But for investors looking to add quality names to a diversified portfolio, now looks like a good time to consider Tesla and Stanley Black & Decker -- or at least add them to your 2023 watchlist.
10 stocks we like better than Tesla
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Daniel Foelber has positions in Tesla and has the following options: long January 2025 $300 calls on Tesla, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla. Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Deere. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like Tesla, Stanley Black & Decker is facing a slew of headwinds that are applying a lot of downward pressure on its stock price -- namely declining demand and cost inflation. In its Q3 2022 investor presentation and during its Q3earnings call Stanley Black & Decker highlighted professional construction and industrial customer demand as a "bright spot" amid macroeconomic challenges. As bad as the 2022 sell-off on the S&P 500 and the Nasdaq Composite has been, there are plenty of companies that are down far worse than the broader indices.
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This high-yield Dividend King is worth buying now Daniel Foelber (Stanley Black & Decker): I agree with Howard that Tesla looks like a compelling buy for growth investors looking to buy the industry-leading EV company at a historically low valuation. Unlike Tesla, Stanley Black & Decker is a Dividend King that has paid and raised its dividend for 55 consecutive years. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Daniel Foelber has positions in Tesla and has the following options: long January 2025 $300 calls on Tesla, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla.
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This high-yield Dividend King is worth buying now Daniel Foelber (Stanley Black & Decker): I agree with Howard that Tesla looks like a compelling buy for growth investors looking to buy the industry-leading EV company at a historically low valuation. SWK data by YCharts A challenge facing Stanley Black & Decker that starkly contrasts with those of other industrial companies is that Stanley Black & Decker has much more exposure to the consumer instead of business-to-business sales. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Daniel Foelber has positions in Tesla and has the following options: long January 2025 $300 calls on Tesla, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla.
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Tesla is starting to look like a good value, while Stanley Black & Decker is a blue-chip dividend stock that is a reliable source of passive income. Stocks like Tesla and Stanley Black & Decker could continue to go down before they go up. As bad as the 2022 sell-off on the S&P 500 and the Nasdaq Composite has been, there are plenty of companies that are down far worse than the broader indices.
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2e8a4548-cb34-4c43-9720-b406eed93626
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720892.0
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2023-01-03 00:00:00 UTC
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How to Boost Your Portfolio with Top Industrial Products Stocks Set to Beat Earnings
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DE
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https://www.nasdaq.com/articles/how-to-boost-your-portfolio-with-top-industrial-products-stocks-set-to-beat-earnings-7
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nan
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nan
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Illinois Tool Works?
The final step today is to look at a stock that meets our ESP qualifications. Illinois Tool Works (ITW) earns a #3 (Hold) 30 days from its next quarterly earnings release on February 2, 2023, and its Most Accurate Estimate comes in at $2.71 a share.
Illinois Tool Works' Earnings ESP sits at +3.54%, which, as explained above, is calculated by taking the percentage difference between the $2.71 Most Accurate Estimate and the Zacks Consensus Estimate of $2.61. ITW is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ITW is one of just a large database of Industrial Products stocks with positive ESPs. Another solid-looking stock is Deere (DE).
Slated to report earnings on February 17, 2023, Deere holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $5.60 a share 45 days from its next quarterly update.
For Deere, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.48 is +2.05%.
ITW and DE's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ITW and DE's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. The Zacks Earnings ESP, Explained The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report.
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Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. The Zacks Earnings ESP, Explained The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report.
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The Zacks Earnings ESP, Explained The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. The idea is relatively intuitive as a newer projection might be based on more complete information.
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Slated to report earnings on February 17, 2023, Deere holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $5.60 a share 45 days from its next quarterly update. ITW and DE's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences.
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b5e88d8d-3532-4ac9-9f9f-c77a1b836545
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720893.0
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2023-01-03 00:00:00 UTC
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Manitowoc (MTW) Stock Plunges 51% in 2022: Is Revival Likely?
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DE
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https://www.nasdaq.com/articles/manitowoc-mtw-stock-plunges-51-in-2022%3A-is-revival-likely
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nan
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Year 2022 was tough for The Manitowoc Company MTW, with its shares plunging 50.7% in the last 6 months against the industry’s 13.7% growth. The company has been witnessing a downtrend in order levels due to the ongoing global economic uncertainty. This, along with inflated costs, has been impacting the stock’s performance.
Factors Hurting the Stock
The company reported year-over-year declines in orders in the last two quarters. In the third quarter of 2022, orders were down 12.7% to $434 million from the prior-year quarter. Order trends are being impacted by the ongoing supply-chain and logistics challenges. The ongoing global economic uncertainty is weighing on customer sentiment, which is making them cautious about spending.
Image Source: Zacks Investment Research
Persisting inflation, rising interest rates and geopolitical tensions will continue to hinder customer confidence. The company had also been bearing the brunt of higher logistics and transportation costs, both ocean and land freight. Supply-chain shortages and skilled labor constraints are other headwinds. Manitowoc expects 2022 adjusted EBITDA to be in at the lower end of the earlier mentioned $130-$160 million.
Can the Stock Stage a Comeback?
Manitowoc’s innovation pipeline remains robust. Focus on innovation will continue to aid it in leading the industry by providing differentiated products of value to customers. The company has also been taking necessary steps to align production with changing levels of demand. It has been focused on cutting costs, increasing productivity and eliminating waste. Operational focus, a healthy balance sheet and market-leading products position it well as end markets recover.
Manitowoc’s aftermarket business has been performing well. In the third quarter of 2022, aftermarket sales moved up 27%. Growth is primarily stemming from higher-margin parts and services. The company is focused on improving this crucial part of the business. In sync with this, Manitowoc acquired the crane business of H&E Equipment Services, Inc. HEES in October 2021 to expand its ability to provide rentals, new sales, used sales, aftermarket parts and service to a variety of end-market customers. The purchase of HEES’s crane business is an important step in its journey to grow the less cyclical part of its business.
In North America, the demand from residential and non-residential construction will bolster the demand for Manitowoc’s equipment. Due to the U.S. Infrastructure Investment and Jobs Act, the rising investment in roads, bridges, airports and waterways represent a massive opportunity. Demand in the Middle East is expected to be robust, going forward. Saudi Arabia’s government has committed more than $1 trillion to a diverse slate of ambitious projects. Qatar and Kuwait are showing signs of growth. This bodes well for Manitowoc.
We believe that the above-mentioned factors will eventually benefit Manitowoc’s results and help its share price post a turnaround.
Manitowoc currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Industrial Products sector are KnowBe4 KNBE and Deere & Company DE. While KNBE currently sports a Zacks Rank #1 (Strong Buy), DE carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents per share, indicating a 118% year-over-year increase. The consensus estimate has moved up 4% in the past 30 days. KNBE’s shares have appreciated 52% in the past six months.
The Zacks Consensus Estimate for fiscal 2023 earnings per share for Deere is pegged at $27.83, suggesting a 19.5% increase from that reported in the last year. The consensus estimate moved 2% upward in the last 30 days. DE has a trailing four-quarter average earnings surprise of 7%. DE’s shares have gained 42% in the past six months.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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 Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Persisting inflation, rising interest rates and geopolitical tensions will continue to hinder customer confidence. The Zacks Consensus Estimate for fiscal 2023 earnings per share for Deere is pegged at $27.83, suggesting a 19.5% increase from that reported in the last year. The company has been witnessing a downtrend in order levels due to the ongoing global economic uncertainty.
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The company has been witnessing a downtrend in order levels due to the ongoing global economic uncertainty. While KNBE currently sports a Zacks Rank #1 (Strong Buy), DE carries a Zacks Rank #2 (Buy). Click to get this free report The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In sync with this, Manitowoc acquired the crane business of H&E Equipment Services, Inc. HEES in October 2021 to expand its ability to provide rentals, new sales, used sales, aftermarket parts and service to a variety of end-market customers. Click to get this free report The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. The company has been witnessing a downtrend in order levels due to the ongoing global economic uncertainty.
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Factors Hurting the Stock The company reported year-over-year declines in orders in the last two quarters. Order trends are being impacted by the ongoing supply-chain and logistics challenges. The company has been witnessing a downtrend in order levels due to the ongoing global economic uncertainty.
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aa7bf96b-cb72-41c4-a0a6-d8e8406d4179
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720894.0
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2023-01-03 00:00:00 UTC
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Deere (DE) Dips More Than Broader Markets: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-dips-more-than-broader-markets%3A-what-you-should-know-3
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nan
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nan
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Deere (DE) closed at $424.29 in the latest trading session, marking a -1.04% move from the prior day. This move lagged the S&P 500's daily loss of 0.4%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 1.86% over the past month. This has was narrower than the Industrial Products sector's loss of 3.88% and the S&P 500's loss of 5.57% in that time.
Deere will be looking to display strength as it nears its next earnings release. On that day, Deere is projected to report earnings of $5.48 per share, which would represent year-over-year growth of 87.67%. Our most recent consensus estimate is calling for quarterly revenue of $11.42 billion, up 33.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $27.83 per share and revenue of $54.28 billion, which would represent changes of +19.54% and +13.29%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.95% higher. Deere is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 15.41. For comparison, its industry has an average Forward P/E of 13.72, which means Deere is trading at a premium to the group.
Meanwhile, DE's PEG ratio is currently 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DE's industry had an average PEG ratio of 1.29 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) closed at $424.29 in the latest trading session, marking a -1.04% move from the prior day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%. Deere will be looking to display strength as it nears its next earnings release.
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Click to get this free report Deere & Company (DE) : Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) closed at $424.29 in the latest trading session, marking a -1.04% move from the prior day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%.
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Deere (DE) closed at $424.29 in the latest trading session, marking a -1.04% move from the prior day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%. Deere will be looking to display strength as it nears its next earnings release.
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Deere (DE) closed at $424.29 in the latest trading session, marking a -1.04% move from the prior day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%. Deere will be looking to display strength as it nears its next earnings release.
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76da2dbb-284a-4217-8fd4-7bb4cc884192
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720895.0
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2023-01-03 00:00:00 UTC
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SPYG, ELV, DE, LMT: Large Inflows Detected at ETF
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DE
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https://www.nasdaq.com/articles/spyg-elv-de-lmt%3A-large-inflows-detected-at-etf
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $152.0 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 264,500,000 to 267,500,000). Among the largest underlying components of SPYG, in trading today Elevance Health Inc (Symbol: ELV) is off about 2.5%, Deere & Co. (Symbol: DE) is off about 1.3%, and Lockheed Martin Corp (Symbol: LMT) is lower by about 1.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.19 as the 52 week high point — that compares with a last trade of $50.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Funds Holding SHLL
VKQ market cap history
RMTR Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs had notable inflows » Also see: Funds Holding SHLL VKQ market cap history RMTR Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPYG, in trading today Elevance Health Inc (Symbol: ELV) is off about 2.5%, Deere & Co. (Symbol: DE) is off about 1.3%, and Lockheed Martin Corp (Symbol: LMT) is lower by about 1.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.19 as the 52 week high point — that compares with a last trade of $50.16. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $152.0 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 264,500,000 to 267,500,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.19 as the 52 week high point — that compares with a last trade of $50.16. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $152.0 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 264,500,000 to 267,500,000). Among the largest underlying components of SPYG, in trading today Elevance Health Inc (Symbol: ELV) is off about 2.5%, Deere & Co. (Symbol: DE) is off about 1.3%, and Lockheed Martin Corp (Symbol: LMT) is lower by about 1.8%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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a2c8bec0-8be6-4d04-beff-b2cfba077520
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720896.0
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2023-01-03 00:00:00 UTC
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Reasons to Add Apogee (APOG) Stock to Your Portfolio
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DE
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https://www.nasdaq.com/articles/reasons-to-add-apogee-apog-stock-to-your-portfolio
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nan
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nan
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Apogee Enterprises APOG delivered sequential improvements in adjusted earnings per share in the last six quarters, which is impressive, considering the ongoing supply-chain disruptions and inflationary pressures. This has been aided by continued strong performances in Architectural Framing Systems and Architectural Services segments, which are expected to continue. Pricing actions, benefits from completed restructuring actions, cost-saving actions, and efforts to improve productivity and efficiency will also drive APOG’s results.
Apogee currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, in combination with a Zacks Rank #1 (Strong Buy) or Rank of 2, offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper and look at the factors that make the stock an attractive investment option.
Solid Q3 Results: APOG reported adjusted earnings per share of $1.07 for third-quarter fiscal 2023, which marked a 70% surge from the prior-year quarter. Revenues were $368 million in the quarter, up 10% year over year.
Upbeat FY23 Guidance: The company anticipates revenue growth of 10% for fiscal 2023, primarily driven by Architectural Framing Systems. APOG expects adjusted earnings per share between $3.90 and $4.05 for fiscal 2023. The mid-point of the guidance indicates 60% growth from adjusted earnings per share of $2.48 reported in fiscal 2022. The year-over-year margin expansion, primarily driven by the improved performances in Framing Systems and Glass, will aid earnings in 2023.
Positive Earnings Surprise History: APOG’s earnings surpassed the Zacks Consensus Estimate in all the four quarters, delivering an average trailing four-quarter earnings surprise of 46%.
Northbound Estimates: The Zacks Consensus Estimate for Apogee’s fiscal 2023 earnings has moved up 1% to $3.96 over the past 30 days.
Healthy Growth Projections: The Zacks Consensus Estimate for Apogee’s fiscal 2023 earnings is pegged at $3.96, suggesting year-over-year growth of 60%.
Growth Drivers in Place
The Architectural Framing Systems segment delivered an operating income of more than $20 million in the three consecutive quarters. The operating margin was 13.4% in the last reported quarter compared with 8.5% in the prior-year quarter. The segment continued to witness solid year-over-year growth and margin expansion despite significant supply-chain and inflation headwinds due to pricing actions and the benefits of completed restructuring and cost-saving actions. The company has been making investments to enable growth in the Architectural Services segments, which is expected to boost margins. The segment has been awarded several projects and is building a project pipeline for the coming years.
Strong project pipeline and improving order trends will support top-line growth for APOG. The company’s segments have the potential to increase market share, expand into new geographies and markets, and introduce products. Apogee has broader exposure in various projects across different sectors, including healthcare, education, government and multifamily housing, and a growing renovation business. The company is witnessing strong demand for new construction activities. Apart from this, various government stimulus measures support the company’s construction end markets.
Price Performance
Image Source: Zacks Investment Research
Shares of Apogee have gained 11.9% in the past six months compared with the industry’s 7% growth.
Other Stocks to Consider
Some other top-ranked stocks from the Industrial Products sector are KnowBe4 KNBE, Deere & Company DE and Caterpillar Inc. CAT. While KNBE sports a Zacks Rank of 1, DE and CAT carry a Zacks Rank of 2.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents per share, indicating a 118% year-over-year rise. Earnings estimates have moved up 4% in the past 30 days. KNBE’s shares have appreciated 52% in the past six months.
The Zacks Consensus Estimate for fiscal 2023 earnings per share for Deere is pegged at $27.83, suggesting a 19.5% increase from that reported in the last year. The consensus estimate moved 2% upward in the last 30 days. DE has a trailing four-quarter average earnings surprise of 7%. DE’s shares have gained 42% in the past six months.
Caterpillar has an estimated year-over-year earnings growth rate of 28% for fiscal 2022. Earnings estimates are pegged at $13.85. The consensus estimate has been revised by 1% north in the past 30 days. CAT has an average trailing four-quarter earnings surprise of 14.7%. Its shares have gained 34% over the past six months.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apogee Enterprises APOG delivered sequential improvements in adjusted earnings per share in the last six quarters, which is impressive, considering the ongoing supply-chain disruptions and inflationary pressures. Apogee has broader exposure in various projects across different sectors, including healthcare, education, government and multifamily housing, and a growing renovation business. This has been aided by continued strong performances in Architectural Framing Systems and Architectural Services segments, which are expected to continue.
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This has been aided by continued strong performances in Architectural Framing Systems and Architectural Services segments, which are expected to continue. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Apogee Enterprises APOG delivered sequential improvements in adjusted earnings per share in the last six quarters, which is impressive, considering the ongoing supply-chain disruptions and inflationary pressures.
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Positive Earnings Surprise History: APOG’s earnings surpassed the Zacks Consensus Estimate in all the four quarters, delivering an average trailing four-quarter earnings surprise of 46%. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report KnowBe4, Inc. (KNBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Apogee Enterprises APOG delivered sequential improvements in adjusted earnings per share in the last six quarters, which is impressive, considering the ongoing supply-chain disruptions and inflationary pressures.
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The Zacks Consensus Estimate for fiscal 2023 earnings per share for Deere is pegged at $27.83, suggesting a 19.5% increase from that reported in the last year. Apogee Enterprises APOG delivered sequential improvements in adjusted earnings per share in the last six quarters, which is impressive, considering the ongoing supply-chain disruptions and inflationary pressures. This has been aided by continued strong performances in Architectural Framing Systems and Architectural Services segments, which are expected to continue.
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9d2d77dc-b517-47db-9868-161f55321adb
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720897.0
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2023-01-02 00:00:00 UTC
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Is Deere & Company (DE) Stock Outpacing Its Industrial Products Peers This Year?
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DE
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https://www.nasdaq.com/articles/is-deere-company-de-stock-outpacing-its-industrial-products-peers-this-year-0
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Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Deere (DE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
Deere is a member of our Industrial Products group, which includes 219 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Deere is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DE's full-year earnings has moved 4.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, DE has returned 25% so far this year. In comparison, Industrial Products companies have returned an average of -11.8%. This means that Deere is outperforming the sector as a whole this year.
Another stock in the Industrial Products sector, Tenaris S.A. (TS), has outperformed the sector so far this year. The stock's year-to-date return is 68.6%.
The consensus estimate for Tenaris S.A.'s current year EPS has increased 7.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Deere is a member of the Manufacturing - Farm Equipment industry, which includes 8 individual companies and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group have gained 24.5% this year, meaning that DE is performing better in terms of year-to-date returns.
In contrast, Tenaris S.A. falls under the Steel - Pipe and Tube industry. Currently, this industry has 4 stocks and is ranked #12. Since the beginning of the year, the industry has moved +46.9%.
Investors interested in the Industrial Products sector may want to keep a close eye on Deere and Tenaris S.A. as they attempt to continue their solid performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Deere & Company (DE) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is a member of our Industrial Products group, which includes 219 different companies and currently sits at #2 in the Zacks Sector Rank. Investors interested in the Industrial Products sector may want to keep a close eye on Deere and Tenaris S.A. as they attempt to continue their solid performance. Deere (DE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole?
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Deere is a member of our Industrial Products group, which includes 219 different companies and currently sits at #2 in the Zacks Sector Rank. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole?
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Deere is a member of our Industrial Products group, which includes 219 different companies and currently sits at #2 in the Zacks Sector Rank. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole?
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Deere (DE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Deere is a member of our Industrial Products group, which includes 219 different companies and currently sits at #2 in the Zacks Sector Rank. Deere is currently sporting a Zacks Rank of #2 (Buy).
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bc7a6362-fad7-414a-a6c2-c287e8813c01
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720898.0
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2022-12-30 00:00:00 UTC
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Noteworthy Friday Option Activity: OXY, DE, MU
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-oxy-de-mu
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Occidental Petroleum Corp (Symbol: OXY), where a total of 51,113 contracts have traded so far, representing approximately 5.1 million underlying shares. That amounts to about 43.3% of OXY's average daily trading volume over the past month of 11.8 million shares. Particularly high volume was seen for the $62 strike put option expiring December 30, 2022, with 5,768 contracts trading so far today, representing approximately 576,800 underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 5,701 contracts, representing approximately 570,100 underlying shares or approximately 41.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $455 strike call option expiring December 30, 2022, with 426 contracts trading so far today, representing approximately 42,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $455 strike highlighted in orange:
And Micron Technology Inc. (Symbol: MU) saw options trading volume of 68,843 contracts, representing approximately 6.9 million underlying shares or approximately 40.9% of MU's average daily trading volume over the past month, of 16.8 million shares. Especially high volume was seen for the $49 strike put option expiring December 30, 2022, with 11,149 contracts trading so far today, representing approximately 1.1 million underlying shares of MU. Below is a chart showing MU's trailing twelve month trading history, with the $49 strike highlighted in orange:
For the various different available expirations for OXY options, DE options, or MU options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Waste Management Dividend Stocks
Top Ten Hedge Funds Holding EMCA
Institutional Holders of SDG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $62 strike put option expiring December 30, 2022, with 5,768 contracts trading so far today, representing approximately 576,800 underlying shares of OXY. Particularly high volume was seen for the $455 strike call option expiring December 30, 2022, with 426 contracts trading so far today, representing approximately 42,600 underlying shares of DE. Especially high volume was seen for the $49 strike put option expiring December 30, 2022, with 11,149 contracts trading so far today, representing approximately 1.1 million underlying shares of MU.
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Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 5,701 contracts, representing approximately 570,100 underlying shares or approximately 41.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $455 strike highlighted in orange: And Micron Technology Inc. (Symbol: MU) saw options trading volume of 68,843 contracts, representing approximately 6.9 million underlying shares or approximately 40.9% of MU's average daily trading volume over the past month, of 16.8 million shares. Especially high volume was seen for the $49 strike put option expiring December 30, 2022, with 11,149 contracts trading so far today, representing approximately 1.1 million underlying shares of MU.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Occidental Petroleum Corp (Symbol: OXY), where a total of 51,113 contracts have traded so far, representing approximately 5.1 million underlying shares. Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 5,701 contracts, representing approximately 570,100 underlying shares or approximately 41.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $455 strike highlighted in orange: And Micron Technology Inc. (Symbol: MU) saw options trading volume of 68,843 contracts, representing approximately 6.9 million underlying shares or approximately 40.9% of MU's average daily trading volume over the past month, of 16.8 million shares.
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Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 5,701 contracts, representing approximately 570,100 underlying shares or approximately 41.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $455 strike highlighted in orange: And Micron Technology Inc. (Symbol: MU) saw options trading volume of 68,843 contracts, representing approximately 6.9 million underlying shares or approximately 40.9% of MU's average daily trading volume over the past month, of 16.8 million shares. Below is a chart showing MU's trailing twelve month trading history, with the $49 strike highlighted in orange: For the various different available expirations for OXY options, DE options, or MU options, visit StockOptionsChannel.com.
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b4de0137-b8b7-4e99-bae6-399dcb02056e
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720899.0
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2022-12-30 00:00:00 UTC
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Lindsay (LNN) to Report Q1 Results: What's in the Cards?
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DE
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https://www.nasdaq.com/articles/lindsay-lnn-to-report-q1-results%3A-whats-in-the-cards
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nan
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nan
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Lindsay Corporation LNN is scheduled to report first-quarter fiscal 2023 results on Jan 5, before the opening bell.
A Peek at 4Q22 Results
In the last reported quarter, Lindsay’s earnings and sales beat the Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter average earnings surprise of 21.5%, on average.
Which Way are Estimates Trending?
The Zacks Consensus Estimate for Lindsay’s earnings per share (EPS) is pegged at $1.25 for the first quarter of fiscal 2023, suggesting a 10.6% increase from that reported in the prior-year quarter. The Zacks Consensus Estimate for total revenues is pinned at $178.7 million for the quarter, indicating a year-over-year rise of 7.5%.
Let’s see how things have shaped up before the announcement.
Key Factors to Consider
Lindsay’s fiscal first-quarter revenues are expected to have benefited from the ongoing demand strength for irrigation equipment in North America on high agricultural commodity prices and farm income projections. The USDA (U.S. Department of Agriculture) projects a net farm income of $160.5 billion for 2022, indicating a 13.8% year-over-year rise. If realized, net farm income will reach the highest level since 1973.
In North America, damage to existing systems due to severe weather in the Midwest is expected to have boosted replacement sales. The irrigation segment’s growth is anticipated to have been driven by the combination of higher unit sales volumes and average selling prices.
Increased food-security concerns due to the pandemic and the Russia-Ukraine conflict have been driving growth in the company’s international markets.
The company’s Infrastructure segment is anticipated to have gained from higher sales of road safety products and Road Zipper System project sales. However, the segment’s revenues are likely to have been partially offset by lower Road Zipper System lease revenues.
Lindsay has been witnessing a rapid increase in input costs. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. Inflationary pressures and supply-chain challenges are likely to have persisted in the quarter to be reported. The company has been introducing sales price adjustments to combat cost inflation.
However, competitive market pressures are expected to have affected its ability to pass price adjustments to its customers. These factors are likely to have impacted margins in the first quarter of fiscal 2023.
Lindsay Corporation Price and EPS Surprise
Lindsay Corporation price-eps-surprise | Lindsay Corporation Quote
Earnings Whispers
Our proven model doesn’t conclusively predict an earnings beat for Lindsay this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Lindsay is 0.00%.
Zacks Rank: Lindsay currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Lindsay’s shares have gained 9.2% in the past year compared with the industry’s growth of 23.1%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Estimates
Here are some stocks worth considering, as these have the right combination of elements to post an earnings beat in their upcoming releases.
Deere & Co. DE currently has an Earnings ESP of +0.24% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 0.9% north in the past 30 days and is pegged at $5.48 per share. This suggests year-over-year growth of 87.7%
The Zacks Consensus Estimate for the company’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported levels. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem XYL currently has an Earnings ESP of +1.27% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating growth of 6.1% from the prior-year quarter’s reported levels. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works ITW currently has an Earnings ESP of +3.54% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been raised 0.4% in the past 30 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%.
The Zacks Consensus Estimate for ITW’s quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported levels. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Lindsay Corporation (LNN) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key Factors to Consider Lindsay’s fiscal first-quarter revenues are expected to have benefited from the ongoing demand strength for irrigation equipment in North America on high agricultural commodity prices and farm income projections. The USDA (U.S. Department of Agriculture) projects a net farm income of $160.5 billion for 2022, indicating a 13.8% year-over-year rise. Increased food-security concerns due to the pandemic and the Russia-Ukraine conflict have been driving growth in the company’s international markets.
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Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Key Factors to Consider Lindsay’s fiscal first-quarter revenues are expected to have benefited from the ongoing demand strength for irrigation equipment in North America on high agricultural commodity prices and farm income projections. The USDA (U.S. Department of Agriculture) projects a net farm income of $160.5 billion for 2022, indicating a 13.8% year-over-year rise.
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Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Key Factors to Consider Lindsay’s fiscal first-quarter revenues are expected to have benefited from the ongoing demand strength for irrigation equipment in North America on high agricultural commodity prices and farm income projections. The USDA (U.S. Department of Agriculture) projects a net farm income of $160.5 billion for 2022, indicating a 13.8% year-over-year rise.
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Key Factors to Consider Lindsay’s fiscal first-quarter revenues are expected to have benefited from the ongoing demand strength for irrigation equipment in North America on high agricultural commodity prices and farm income projections. The USDA (U.S. Department of Agriculture) projects a net farm income of $160.5 billion for 2022, indicating a 13.8% year-over-year rise. Increased food-security concerns due to the pandemic and the Russia-Ukraine conflict have been driving growth in the company’s international markets.
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