Date
stringdate 2022-01-02 00:00:00
2023-12-16 00:00:00
| Symbol
stringclasses 331
values | Article
stringlengths 129
98.2k
|
|---|---|---|
2023-12-16
|
ARTLW
|
Tech stocks rose late Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) increasing 1.1% and the SPDR S&P Semiconductor ETF (XSD) jumping 3.2%.
The Philadelphia Semiconductor index advanced 2.8%.
In corporate news, JFrog (FROG) shares jumped 9.6% after Morgan Stanley upgraded the stock to overweight from equalweight and raised its price target to $42 from $32.
Micron (MU) shares climbed 9% after the company reported better-than-expected fiscal Q1 results and analysts boosted their price targets on the stock.
Amesite (AMST) shares surged 25% after Chief Executive Officer Ann Marie Sastry reported an additional purchase of company stock.
Luna Innovations (LUNA) gained 6.6% after the company received a $50 million investment from White Hat Capital Partners, which was used partially to fund Luna's $21.5 million acquisition of closely held fiber-optic sensing firm Silixa.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Consumer stocks advanced late Thursday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) up 0.7% and the Consumer Discretionary Select Sector SPDR Fund (XLY) gaining 1.4%.
In corporate news, Lottery.com (LTRY) shares doubled. Prosperity Investment Management committed to invest $18 million in the company.
Carnival (CCL) shares jumped 5.8% after the cruise line operator posted better-than-expected improvements in fiscal Q4 results backed by strong demand and a robust pricing environment.
CarMax (KMX) gained 4.5% after the company reported fiscal Q3 earnings that topped estimates by analysts.
Honda (HMC) said it's recalling 2.6 million 2017-2020 Acura and Honda vehicles in the US due to the risk of a crash or injury because of a fuel pump defect that could cause the engine to not start or stall while driving. Honda shares climbed 0.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Financial stocks were advancing in late Thursday afternoon trading, with the NYSE Financial Index adding 0.6% and the Financial Select Sector SPDR Fund (XLF) up 0.4%.
The Philadelphia Housing Index was up 0.3%, and the Real Estate Select Sector SPDR Fund (XLRE) was 0.1% higher.
Bitcoin (BTC-USD) was easing 0.1% to $43,627, and the yield for 10-year US Treasuries was up nearly 2 basis points at 3.89%.
In economic news, US gross domestic product growth was revised to 4.9% in Q3 from 5.2% in the prior estimate, below expectations for no revision in a survey compiled by Bloomberg. GDP rose 2.1% in Q2.
In corporate news, Blackstone (BX) is buying an 80% stake in a Sony (SONY) unit specializing in payment services for $280 million, Bloomberg reported Thursday. Blackstone shares rose 2.1% and Sony was up 2.4%.
Paychex (PAYX) shares tumbled 6.4% after the company reported mixed fiscal Q2 results with revenue trailing estimates by analysts.
First American Financial (FAF) dropped 0.8% after it said Thursday it has temporarily taken some systems offline after a "cybersecurity incident."
Coinbase (COIN) received approval from French financial watchdog AMF as a virtual asset service provider This will allow the company to offer digital currency services in the country, CNBC reported, citing the company. Coinbase shares gained 5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Energy stocks rose late Thursday afternoon with the NYSE Energy Sector Index adding 0.4% and the Energy Select Sector SPDR Fund (XLE) gaining 0.1%.
The Philadelphia Oil Service Sector index rose 0.5%, and the Dow Jones US Utilities index fell 0.2%.
West Texas Intermediate crude oil declined 0.6% to $73.80 a barrel, while the global benchmark Brent crude contract dropped 0.6% to $79.26 a barrel.
US natural gas stocks fell 87 billion cubic feet in the week ended Dec. 15, a larger decline than the 82 billion decrease expected in a survey compiled by Bloomberg and following a decrease of 55 billion cubic feet in the previous week.
Henry Hub natural gas futures jumped 5.7% to $2.587 per 1 million BTU.
In corporate news, TotalEnergies (TTE) shares rose 1.5%. The company agreed to sell a 25.5% stake in the Seagreen offshore wind farm in Scotland to Thailand's PTT Exploration and Production for 522 million pounds ($689 million).
Crescent Point Energy (CPG) rose 2.1% after the company completed the acquisition of Hammerhead Energy and boosted its 2024 production guidance.
Eni (E) gained 1.8% after the company said Thursday that Energy Infrastructure Partners will invest in Eni's Plenitude renewables unit via a capital increase of up to 700 million euros ($769 million).
Valaris (VAL) said Thursday it exercised its options and acquired two newbuild drillships for $337 million. Its shares added 1.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Dec 21 (Reuters) - Apple AAPL.O customer service teams were informed in a company memo this week that it will no longer replace out-of-warranty models going back to Apple Watch Series 6, Bloomberg News reported on Thursday.
The iPhone maker is in the midst of a patent dispute related to a technology used in newer models of its watch.
Apple said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the U.S. from this week, in relation to the patent dispute over the technology that enables the blood oxygen feature on the devices.
If a customer has a broken screen, for instance, they won't be able to get the issue fixed by Apple, Bloomberg News said, adding that the company will still offer help that can be done via software, such as reinstalling the operating system.
Company representatives were told to inform affected customers that they will be contacted when hardware replacements are allowed again, according to the report.
Apple did not immediately respond to a Reuters request for comment.
(Reporting by Arsheeya Bajwa in Bengaluru)
((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
In trading on Thursday, shares of Federal Realty Investment Trust's 5.000% Series C Cumulative Redeemable Preferred Share (Symbol: FRT.PRC) were yielding above the 5.5% mark based on its quarterly dividend (annualized to $1.25), with shares changing hands as low as $22.71 on the day. This compares to an average yield of 7.98% in the "Real Estate" preferred stock category, according to Preferred Stock Channel. As of last close, FRT.PRC was trading at a 8.40% discount to its liquidation preference amount, versus the average discount of 14.42% in the "Real Estate" category.
The chart below shows the one year performance of FRT.PRC shares, versus FRT:
Below is a dividend history chart for FRT.PRC, showing historical dividend payments on Federal Realty Investment Trust's 5.000% Series C Cumulative Redeemable Preferred Share :
In Thursday trading, Federal Realty Investment Trust's 5.000% Series C Cumulative Redeemable Preferred Share (Symbol: FRT.PRC) is currently off about 0.2% on the day, while the common shares (Symbol: FRT) are up about 0.3%.
Also see:
Cheap Growth Stocks
Funds Holding USOD
WOW 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.
|
2023-12-16
|
ARTLW
|
By David Shepardson
WASHINGTON, Dec 21 (Reuters) - General Motors GM.N said Thursday it expects its Cadillac Lyriq and Chevrolet Blazer EV will temporarily lose eligibility for a U.S. electric vehicle tax credit starting Jan. 1.
GM said on Jan. 1 only its Chevrolet Bolt EV will be eligible for the consumer EV tax credit.
Ford Motor said its E-Transit will lose the $3,750 tax credit on Jan. 1, as will the Mach-E and Lincoln Aviator Grand Touring plug-in hybrid, but its F-150 EV Lighting will keep the $7,500 credit and the Lincoln Corsair Grand Touring will retain a $3,750 credit.
GM said the two vehicles are losing the credit because of two minor components, and added it has pulled ahead sourcing plans for qualifying components in early 2024. GM said it expects the Lyriq and Blazer EV will regain eligibility in early 2024.
GM said it also expects EVs Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV and Cadillac OPTIQ produced "after the sourcing change will be eligible for the full incentive."
The U.S. Treasury issued guidelines this month detailing new battery sourcing restrictions that take effect Jan. 1 and aimed at weaning the U.S. electric vehicle supply chain away from China.
GM said, "Treasury proposed strict rules disqualifying all EVs with certain foreign battery content including low-value components, which effectively means most EVs will not be eligible beginning on January 1."
Tesla's TSLA.O Model 3 Rear-Wheel Drive and Long Range vehicles will also lose federal tax credits starting Jan. 1, the automaker said last week.
(Reporting by David Shepardson; editing by Jonathan Oatis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Humana Inc. (Symbol: HUM), where a total of 11,360 contracts have traded so far, representing approximately 1.1 million underlying shares. That amounts to about 61.9% of HUM's average daily trading volume over the past month of 1.8 million shares. Especially high volume was seen for the $490 strike put option expiring December 22, 2023, with 1,020 contracts trading so far today, representing approximately 102,000 underlying shares of HUM. Below is a chart showing HUM's trailing twelve month trading history, with the $490 strike highlighted in orange:
Veradigm Inc (Symbol: MDRX) options are showing a volume of 12,065 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 57.1% of MDRX's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $10 strike put option expiring February 16, 2024, with 3,873 contracts trading so far today, representing approximately 387,300 underlying shares of MDRX. Below is a chart showing MDRX's trailing twelve month trading history, with the $10 strike highlighted in orange:
And PayPal Holdings Inc (Symbol: PYPL) options are showing a volume of 101,167 contracts thus far today. That number of contracts represents approximately 10.1 million underlying shares, working out to a sizeable 56.8% of PYPL's average daily trading volume over the past month, of 17.8 million shares. Especially high volume was seen for the $66 strike call option expiring January 05, 2024, with 4,415 contracts trading so far today, representing approximately 441,500 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $66 strike highlighted in orange:
For the various different available expirations for HUM options, MDRX options, or PYPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
AACI Average Annual Return
Top Ten Hedge Funds Holding DEPO
Institutional Holders of BVSN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in 3M Co (Symbol: MMM), where a total of 17,676 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 44.3% of MMM's average daily trading volume over the past month of 4.0 million shares. Particularly high volume was seen for the $106 strike call option expiring December 22, 2023, with 6,311 contracts trading so far today, representing approximately 631,100 underlying shares of MMM. Below is a chart showing MMM's trailing twelve month trading history, with the $106 strike highlighted in orange:
Chefs' Warehouse Inc (Symbol: CHEF) saw options trading volume of 2,155 contracts, representing approximately 215,500 underlying shares or approximately 44% of CHEF's average daily trading volume over the past month, of 489,450 shares. Particularly high volume was seen for the $35 strike call option expiring April 19, 2024, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of CHEF. Below is a chart showing CHEF's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Allstate Corp (Symbol: ALL) options are showing a volume of 6,488 contracts thus far today. That number of contracts represents approximately 648,800 underlying shares, working out to a sizeable 42.4% of ALL's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $160 strike call option expiring April 19, 2024, with 2,712 contracts trading so far today, representing approximately 271,200 underlying shares of ALL. Below is a chart showing ALL's trailing twelve month trading history, with the $160 strike highlighted in orange:
For the various different available expirations for MMM options, CHEF options, or ALL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Energy Stock Dividends
TIGR shares outstanding history
BMXC 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.
|
2023-12-16
|
ARTLW
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Blackstone Inc (Symbol: BX), where a total volume of 22,516 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 55% of BX's average daily trading volume over the past month, of 4.1 million shares. Especially high volume was seen for the $120 strike put option expiring January 19, 2024, with 1,948 contracts trading so far today, representing approximately 194,800 underlying shares of BX. Below is a chart showing BX's trailing twelve month trading history, with the $120 strike highlighted in orange:
AerSale Corp (Symbol: ASLE) saw options trading volume of 2,652 contracts, representing approximately 265,200 underlying shares or approximately 54.6% of ASLE's average daily trading volume over the past month, of 486,105 shares. Especially high volume was seen for the $12.50 strike call option expiring February 16, 2024, with 1,160 contracts trading so far today, representing approximately 116,000 underlying shares of ASLE. Below is a chart showing ASLE's trailing twelve month trading history, with the $12.50 strike highlighted in orange:
And Block Inc (Symbol: SQ) options are showing a volume of 61,035 contracts thus far today. That number of contracts represents approximately 6.1 million underlying shares, working out to a sizeable 52.9% of SQ's average daily trading volume over the past month, of 11.5 million shares. Especially high volume was seen for the $85 strike call option expiring December 22, 2023, with 3,323 contracts trading so far today, representing approximately 332,300 underlying shares of SQ. Below is a chart showing SQ's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for BX options, ASLE options, or SQ options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding GMM
SAIA Average Annual Return
Top Ten Hedge Funds Holding ACH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in NextDecade Corp (Symbol: NEXT), where a total of 11,854 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 77.7% of NEXT's average daily trading volume over the past month of 1.5 million shares. Especially high volume was seen for the $6 strike call option expiring April 19, 2024, with 5,375 contracts trading so far today, representing approximately 537,500 underlying shares of NEXT. Below is a chart showing NEXT's trailing twelve month trading history, with the $6 strike highlighted in orange:
Roku Inc (Symbol: ROKU) saw options trading volume of 48,822 contracts, representing approximately 4.9 million underlying shares or approximately 77% of ROKU's average daily trading volume over the past month, of 6.3 million shares. Particularly high volume was seen for the $90 strike call option expiring December 22, 2023, with 3,907 contracts trading so far today, representing approximately 390,700 underlying shares of ROKU. Below is a chart showing ROKU's trailing twelve month trading history, with the $90 strike highlighted in orange:
And lululemon athletica inc (Symbol: LULU) options are showing a volume of 14,701 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 71.1% of LULU's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $500 strike put option expiring December 22, 2023, with 687 contracts trading so far today, representing approximately 68,700 underlying shares of LULU. Below is a chart showing LULU's trailing twelve month trading history, with the $500 strike highlighted in orange:
For the various different available expirations for NEXT options, ROKU options, or LULU options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
MXE market cap history
TYME market cap history
PHM DMA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Scorpio Tankers Inc (Symbol: STNG), where a total volume of 12,886 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 138.8% of STNG's average daily trading volume over the past month, of 928,145 shares. Particularly high volume was seen for the $65 strike call option expiring January 19, 2024, with 1,276 contracts trading so far today, representing approximately 127,600 underlying shares of STNG. Below is a chart showing STNG's trailing twelve month trading history, with the $65 strike highlighted in orange:
Entegris Inc (Symbol: ENTG) saw options trading volume of 13,911 contracts, representing approximately 1.4 million underlying shares or approximately 106% of ENTG's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $85 strike put option expiring February 16, 2024, with 6,700 contracts trading so far today, representing approximately 670,000 underlying shares of ENTG. Below is a chart showing ENTG's trailing twelve month trading history, with the $85 strike highlighted in orange:
And Bloomin' Brands Inc (Symbol: BLMN) saw options trading volume of 13,180 contracts, representing approximately 1.3 million underlying shares or approximately 102.6% of BLMN's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $25 strike put option expiring January 19, 2024, with 5,026 contracts trading so far today, representing approximately 502,600 underlying shares of BLMN. Below is a chart showing BLMN's trailing twelve month trading history, with the $25 strike highlighted in orange:
For the various different available expirations for STNG options, ENTG options, or BLMN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding AAA
ANGH shares outstanding history
Funds Holding GMGI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Bank OZK (Symbol: OZK), where a total of 19,410 contracts have traded so far, representing approximately 1.9 million underlying shares. That amounts to about 154.5% of OZK's average daily trading volume over the past month of 1.3 million shares. Particularly high volume was seen for the $45 strike put option expiring February 16, 2024, with 5,006 contracts trading so far today, representing approximately 500,600 underlying shares of OZK. Below is a chart showing OZK's trailing twelve month trading history, with the $45 strike highlighted in orange:
Carmax Inc. (Symbol: KMX) saw options trading volume of 32,703 contracts, representing approximately 3.3 million underlying shares or approximately 151.6% of KMX's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $83 strike call option expiring December 22, 2023, with 1,506 contracts trading so far today, representing approximately 150,600 underlying shares of KMX. Below is a chart showing KMX's trailing twelve month trading history, with the $83 strike highlighted in orange:
And Coinbase Global Inc (Symbol: COIN) options are showing a volume of 194,958 contracts thus far today. That number of contracts represents approximately 19.5 million underlying shares, working out to a sizeable 146.3% of COIN's average daily trading volume over the past month, of 13.3 million shares. Especially high volume was seen for the $140 strike call option expiring January 19, 2024, with 11,797 contracts trading so far today, representing approximately 1.2 million underlying shares of COIN. Below is a chart showing COIN's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for OZK options, KMX options, or COIN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
UPW Split History
AUGX Stock Predictions
GEK Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in MP Materials Corp (Symbol: MP), where a total volume of 27,728 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 99.5% of MP's average daily trading volume over the past month, of 2.8 million shares. Particularly high volume was seen for the $20 strike call option expiring January 19, 2024, with 15,633 contracts trading so far today, representing approximately 1.6 million underlying shares of MP. Below is a chart showing MP's trailing twelve month trading history, with the $20 strike highlighted in orange:
Smith & Wesson Brands Inc (Symbol: SWBI) options are showing a volume of 6,313 contracts thus far today. That number of contracts represents approximately 631,300 underlying shares, working out to a sizeable 92.9% of SWBI's average daily trading volume over the past month, of 679,680 shares. Particularly high volume was seen for the $15 strike call option expiring June 21, 2024, with 1,250 contracts trading so far today, representing approximately 125,000 underlying shares of SWBI. Below is a chart showing SWBI's trailing twelve month trading history, with the $15 strike highlighted in orange:
And Spotify Technology SA (Symbol: SPOT) saw options trading volume of 14,966 contracts, representing approximately 1.5 million underlying shares or approximately 80% of SPOT's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $200 strike call option expiring February 02, 2024, with 1,978 contracts trading so far today, representing approximately 197,800 underlying shares of SPOT. Below is a chart showing SPOT's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for MP options, SWBI options, or SPOT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ACEL Stock Predictions
SWET Insider Buying
Institutional Holders of WWR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Bank of America Corp (Symbol: BAC), where a total volume of 221,962 contracts has been traded thus far today, a contract volume which is representative of approximately 22.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.5% of BAC's average daily trading volume over the past month, of 46.7 million shares. Particularly high volume was seen for the $23 strike put option expiring January 19, 2024, with 30,213 contracts trading so far today, representing approximately 3.0 million underlying shares of BAC. Below is a chart showing BAC's trailing twelve month trading history, with the $23 strike highlighted in orange:
MongoDB Inc (Symbol: MDB) options are showing a volume of 11,013 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 45.9% of MDB's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $450 strike call option expiring December 22, 2023, with 393 contracts trading so far today, representing approximately 39,300 underlying shares of MDB. Below is a chart showing MDB's trailing twelve month trading history, with the $450 strike highlighted in orange:
And Walmart Inc (Symbol: WMT) options are showing a volume of 42,905 contracts thus far today. That number of contracts represents approximately 4.3 million underlying shares, working out to a sizeable 44.3% of WMT's average daily trading volume over the past month, of 9.7 million shares. Especially high volume was seen for the $155 strike call option expiring December 22, 2023, with 4,550 contracts trading so far today, representing approximately 455,000 underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $155 strike highlighted in orange:
For the various different available expirations for BAC options, MDB options, or WMT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Stocks Being Sold By Hedge Funds
VRAY Options Chain
BW 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.
|
2023-12-16
|
ARTLW
|
By Sinéad Carew
NEW YORK, Dec 21 (Reuters) - MSCI's global stock index rose on Thursday, recouping some losses from the previous session's late-session sell-off, while oil prices fell and the dollar was lower on the eve of a key U.S. inflation reading.
Oil prices, which rallied earlier in the week due to concerns about shipping disruption in the Red Sea, fell after Angola announced it is leaving the Organization of the Petroleum Exporting Countries (OPEC).
On Wednesday, Wall Street suffered its biggest drop since September, and analysts cited hedging activity associated with trading in short-dated options.
"Today's market is trying to recover. This has been the hallmark of the latest phase in the market," said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, NC.
"We've seen the fear of missing out has been powerful. We've institutional money managers who have to catch up if they've been behind competitors."
If expectations are that "this report could suggest a faster decline in core and super core inflation perhaps you'd want to come in today rather than wait until tomorrow," Krosby said.
But Wednesday's sell-off was weighing on traders as they waited for Friday's data.
"The markets could be pulling back a little bit and consolidating while they're waiting for more news," said Joe Mazzola, Director of Trading Services Education at Schwab who attributed Wednesday's pull-back in part to the fact that the market had rallied so strongly.
"If we can kind of stay within this range where we're at right now, then that bodes well for the end of the week, heading into next week. If we give up yesterday's lows then I'd be really concerned," Mazzola added.
On Wall Street, the Dow Jones Industrial Average .DJI rose 162.37 points, or 0.44%, to 37,244.37, the S&P 500 .SPX gained 27.29 points, or 0.58%, to 4,725.64 and the Nasdaq Composite .IXIC added 121.00 points, or 0.82%, to 14,898.95.
The pan-European STOXX 600 index .STOXX lost 0.21% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.42%.
The U.S. dollar eased to a three-day low against a basket of currencies as the previous session's lift for the U.S. currency faded and traders braced for U.S. inflation figures for clues to future Fed policy.
The dollar index =USD fell 0.537%, with the euro EUR= up 0.53% to $1.0996.
The Japanese yen strengthened 0.92% to 142.27 per dollar, while Sterling GBP= was last trading at $1.2685, up 0.38%.
In U.S. Treasuries, benchmark 10-year notes US10YT=RR were up 1.7 basis points to 3.894%, from 3.877% late on Wednesday. The 30-year bond US30YT=RR was last up 2.8 basis points to yield 4.0328%, from 4.005%. The 2-year note US2YT=RR was last was down 2.2 basis points to yield 4.3473%, from 4.369%.
Oil futures settled lower as Angola's move raised questions about OPEC's efforts to support prices by limiting global supplies.
U.S. crude CLc1 settled down 0.44% at $73.89 per barrel and Brent LCOc1 finished at $79.39, down 0.39% on the day.
Gold prices gained after U.S. economic data fueled expectations for the Federal Reserve to cut interest rates in March next year.
Spot gold XAU= added 0.7% to $2,043.89 an ounce. U.S. gold futures GCc1 gained 0.20% to $2,039.10 an ounce.
(Additional reporting by Saqiq Iqbal Ahmed in New York, Marc Jones in London Editing by Jane Merriman, Mark Potter and David Gregorio)
((sinead.carew@thomsonreuters.com; +13322191897;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
The global economy stands at a unique crossroads at the end of 2023. The coronavirus health crisis is no longer an active pandemic, but its aftershocks will continue to reshape the world for years to come. At the same time, decades of unstoppable innovations are bearing fruit right now, with game-changing consequences across many business sectors.
The stock market is adjusting to these structural changes, driving the S&P 500 index a dividend-adjusted 26% higher in 2023 after an 18% drop in 2022.
Let me be clear. Investors should take a fresh look at macroeconomic trends every year. December is a good time to rebalance your investment portfolio, make tax-management moves, and generally ensure you're in good shape for the next year. But the tail end of 2023 magnifies the typical need for adjustment. There is so much going on, with a mix of problems and opportunities around every corner.
I'm not alone in this assessment.
In its year-end market review, Swiss investing firm Julius Bär notes that the world "might be on the cusp of an innovation super cycle driven by the convergence of multiple technologies." Financial giant BlackRock agrees in its own annual market report: This moment is "not the typical business cycle" but a unique opportunity to find market-beating stocks through active financial analysis. And JPMorgan sees "a world in transition" to more traditional fiscal policy but downright revolutionary trends in energy consumption and new technologies.
It doesn't take much money to invest in these massive trends. If you can afford to set aside $100 today, you could follow up with another $100 in January and so on. Over time, your commitment should result in serious wealth-building investments. So, let me show you three of the most disruptive megatrends in today's market and how your investing strategy can take advantage of these long-term sea changes.
Artificial intelligence (AI)
I'm not trying to surprise you here, dear reader. You saw the AI juggernaut coming from a mile away, and there's no stopping it now.
When OpenAI released the ChatGPT tool a year ago, that move sparked a worldwide fascination with AI systems. As it turns out, ChatGPT is just the tip of a much larger AI iceberg. Computers have dominated logic-based domains, such as simple math and world-class chess, for years, but now they can take on more creative jobs.
Generative AI comes in many flavors. ChatGPT can write text and carry on conversations with a nearly human feel. Platforms like Midjourney and DALL-E generate images based on simple text descriptions. Google parent Alphabet provides several ways to make AI-powered music without ever touching an instrument. However, AI-based chatbots arguably offer the greatest business benefits in this diverse collection.
That's why Microsoft is building ChatGPT into the classic MS Office Suite and the Bing search engine. Google may have a plethora of generative AI tools in its bag, but the simple Bard chatbot inspires more headlines than its digital cousins.
If you want to focus on the lasting value of business-to-business services, you should take a closer look at International Business Machines (NYSE: IBM) and C3.ai. And, of course, Nvidia is an early leader in AI accelerator hardware, though Advanced Micro Devices and Intel are introducing AI chips of comparable power.
These AI experts are turning entire industries upside down, and there's no going back. The companies mentioned are all innovators and leaders in this emerging field. Seven of these eight stocks have posted price jumps of 55% or more, and Nvidia's shares have more than tripled. Finding the right balance between lofty valuations and stellar long-term growth prospects is the opportunity BlackRock was talking about.
IBM stands out as an affordable AI play with a year-to-date gain of just 14%. Market makers appear to have forgotten Big Blue's long history of high-performance computing. This stock is a good place to start if you're excited about the AI market but worried about buying into a bubble.
Renewable energy
One of the core "transitions" in JPMorgan's sights is the move from fossil fuels to alternative energy sources. The ball is already rolling, and there's no end in sight to this disruptive shift.
Investors can tap into this megatrend from several angles. For example, NextEra Energy (NYSE: NEE) has a world-class portfolio of solar and wind power assets, with an even stronger pipeline of firm orders for future projects. Electric vehicles are everywhere, going far beyond the market shift that Tesla started years ago. Elon Musk's company is also a major player in alternative energy, with market-leading solutions in solar power and energy storage.
And you can't forget about the classical energy giants, either. ExxonMobil (NYSE: XOM), for instance, is developing carbon capture technologies and lower-carbon biofuels to ensure a solid future in the post-oil era of global energy.
Many alternative energy stocks took dramatic haircuts recently as rising interest rates reduced the demand for expensive solar or wind energy projects. Solar panel giant First Solar's (NASDAQ: FSLR) stock is down by 10% in the last six months, and micro-inverter expert Enphase Energy (NASDAQ: ENPH) took a 23% hit over the same period.
Some next-generation energy innovators will surely soar in the long run, making a buying opportunity out of this deep dip, but others will just as surely fail. I'm no authority on energy stocks, but fellow Fool (and actual energy expert) Travis Hoium highlights First Solar and Enphase as potential turnaround plays right now. His analysis is just about the best place to start investigating traditional and forward-looking energy ideas.
Cryptocurrency
So, let's turn to another area where I do wield some expertise. The crypto winter that started in 2021 is thawing out, 2024 looks like a year of pivotal progress for crypto investments, and the concept of long-term value in newfangled digital currencies is catching on.
The next year or so should deliver the goods on several long-awaited crypto catalysts. For instance:
The work required to mint a new Bitcoin (CRYPTO: BTC) token will double in April, with game-changing effects on the economics of Bitcoin mining. The mining effort makes sense only if the expected output is worth more than the energy costs, and the Bitcoin blockchain can't process transactions if the mining stops. Therefore, token prices should at least double in response to the fourth so-called "halvening," as they did in the first three instances. The effect isn't immediate but should develop over several months. So, it's double or bust every time this supply-side event takes place, and I don't expect this digital asset (currently worth $855 billion) to go away this quickly.
There's more Bitcoin news on the way. Several financial giants have filed the paperwork to create Bitcoin-based exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC) is dragging its feet on approving (or even considering) any of these filings, but the agency is now under a legal requirement to do something by January 10, 2024. Approving one request should result in a plethora of Bitcoin ETFs all at once because the alternative would give an unfair advantage to the recipient of the first approval. The resulting influx of dollar-based capital in the Bitcoin world could bring monumental price increases.
The long-running Securities and Exchange Commission v. Ripple Labs lawsuit is only partially completed. The regulator's complaints regarding Ripple's (CRYPTO: XRP) sales to private persons have ended, but there will be a jury trial regarding Ripple's launch among institutional investors. Trial dates are currently up in the air, but the proceedings should play out in the second half of 2024. Whatever happens in that New York courtroom will give crypto investors greater clarity on the legal and regulatory rule book for digital currencies.
Of course, the volatile crypto sector is always prone to surprises. Apart from the hard-coded Bitcoin halvening, these catalysts are subject to human whims, potential delays, and maybe even cancellations. That said, crypto investors are looking forward to several promising events next year, and the sector's long-term future still looks bright.
I don't recommend moving all your money into Bitcoin (or any other single asset, from gold to single-name stock tickers). Still, some exposure to the crypto market is starting to look necessary.
If you're uncomfortable opening a cryptocurrency brokerage account and don't want to wait for a proper Bitcoin ETF, you could always lean on the Grayscale Bitcoin Trust (OTC: GBTC). This Bitcoin-owning mutual fund currently trades at an 8% discount to the market value of its assets and is under consideration for conversion into an ETF.
Should you invest $1,000 in International Business Machines right now?
Before you buy stock in International Business Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and International Business Machines wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Alphabet, Bitcoin, Grayscale Bitcoin Trust (BTC), Intel, International Business Machines, Nvidia, and XRP. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Bitcoin, Enphase Energy, JPMorgan Chase, Microsoft, NextEra Energy, Nvidia, Tesla, and XRP. The Motley Fool recommends C3.ai, First Solar, Intel, and International Business Machines and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. 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.
|
2023-12-16
|
ARTLW
|
Among the hottest tech stocks in 2023, Coinbase (COIN) has surged over 387% year-to-date, valuing the company at $38.72 billion by market cap. Despite these outsized gains - including a 1% pop on today's news of clearance from French crypto regulators - COIN stock is down 55% from all-time highs.
Coinbase is one of the largest cryptocurrency exchanges globally, and its share price is largely tied to the performance of digital assets such as Bitcoin (BTCUSD) and Ethereum (ETHUSD). These two cryptocurrencies account for the majority of trading volumes on Coinbase, and rising crypto prices have pushed COIN higher in recent months, too.
www.barchart.com
Coinbase stock is a well-known favorite of Cathie Wood, a popular investor on Wall Street - but Wood has been taking profits amid COIN's recent run higher, with her flagship funds unloading shares worth $181 million over the past 30 days. However, at 10.89%, COIN is still the top holding in Wood's ARK Innovation ETF (ARKK) by a comfortable margin.
Let’s see if Coinbase stock can continue to move higher in 2024.
The Bull Case for Coinbase Stock
Coinbase benefits from higher trading volumes during bull runs, allowing it to generate significant revenue from commissions and fees. However, Coinbase is diversifying its revenue base to generate cash flows across market cycles.
Last year, it announced a partnership with the world’s largest asset manager, BlackRock (BLK), where it will offer crypto trading services to institutional investors. Coinbase is also the primary custodian for several institutional investors, including BlackRock, for their upcoming spot Bitcoin ETF (exchange-traded fund). The launch of a spot Bitcoin ETF appears almost inevitable at this point, which should drive institutional adoption of BTC at an accelerated pace - pushing crypto prices higher in the process.
In August 2023, Coinbase launched Base, a proprietary blockchain that should allow it to gain traction in the rapidly expanding asset tokenization market.
According to BlackRock, asset tokenization is among the most exciting trends globally and could be a key revenue growth driver for Coinbase in the upcoming decade. The process of asset tokenization converts traditional assets, such as stocks and bonds, into digital assets that can be traded on a blockchain, such as Base, reducing costs for traders while improving settlement times and ownership transparency.
Coinbase ended 2021 with more than $7 billion in sales. Around 90% of its revenue came from trading fees, but this number was reduced to just 53% as of Q3 of 2023. The company's other revenue streams include staking rewards, custodian fees, and a partnership with the issuer of USDC, one of the most popular stablecoins among crypto players.
This dynamic revenue model, along with a focus on cost-cutting, has enabled Coinbase to navigate a turbulent environment over the last two years.
What's Next for Coinbase Stock?
In addition to the potential Bitcoin ETF, the upcoming BTC halving could act as a tailwind for Coinbase. Historically, Bitcoin prices have surged higher after the halving cycle, where mining rewards are reduced by 50% every four years. The next halving cycle is expected to take place in the first half of 2024, and the event should boost trading volumes for Coinbase.
That said, cryptocurrency players, including Coinbase, are under intense scrutiny by U.S. regulators, which might stifle growth and innovation for these companies until there is further clarity on a range of issues.
What Is the Target Price for COIN Stock?
Analysts tracking Coinbase stock expect the company's adjusted loss per share to widen from $0.46 in 2023 to $0.66 per share in 2024. If Coinbase misses these low expectations, its stock price could move significantly lower in the next 12 months. However, Wall Street is already predicting some downside from the stock's currently lofty levels.
Analysts have an average target price of $92.33 for COIN stock, which is a discount of nearly 44% to today's price. Even the Street-high price target of $160 implies expected downside from current levels.
Out of the 22 analysts tracking COIN, six recommend “strong buy,” one recommends “moderate buy,” eight recommend “hold,” two recommend “moderate sell,” and five recommend “strong sell.”
www.barchart.com
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Tyler TYL recently deployed the State Firearm POC Background Check solution to the New York State Police, which functions in compliance with the 2022 legislation on gun safety laws in New York.
The recent collaboration with the New York State Police followed governor Kathy Hochul’s enforcement of legislation that mandated strict background checks for ammunition and antique firearm purchases in the city.
The entire background verification system functions on the charged fee for the background verification. The collaboration also includes two other departments – the New York Office of Information Technology Services and the FBI.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
With this deployment, New York has become the second state that has selected Tyler’s State Firearm POC Background Check solution after New Jersey. As one of the major players in the information management solution sphere for the public sector, the company has experience in working with multiple police departments. It is rapidly increasing its footprint in the public safety market.
This year, it struck multiple deals, including the deployment of an integrated public safety suite like CAD, records management and e-citations for the Naperville Illinois Police Department, on-prem deployment for the State Highway Patrol Department of Missouri, cloud deployment for the State Police of Oregon and Mobile Solution for Harris County. The company leverages its expertise in IT solutions and cloud adaptation, migration and optimization to serve these clients.
Strong Prospects in the Public Sector for Tyler
The public sector market in which Tyler operates is one of the largest in the United States, spanning approximately 3,000 counties, various public departments across 36,000 towns and cities, and more than a thousand dozen schools across the country.
Within these diverse prospects lie numerous opportunities, including the deployment of IT services and solutions for property assessment, judicial functions, record-keeping, finance, road maintenance, law enforcement, public safety, healthcare, election administration and more. Government departments grapple with the challenge of retaining IT professionals who often seek more lucrative prospects elsewhere.
Tyler is benefiting from the ongoing transition within the public sector ranging from on-premise and outdated systems to scalable cloud-based systems. This multi-year transition is anticipated to significantly enhance TYL’s recurring revenues, which currently constitute a major portion of its top line. The firm benefits from having clients in both the public and federal sectors, providing a stable and consistent revenue stream.
Zacks Rank and Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold). Shares of the company have climbed 26.9% year to date.
Some better-ranked stocks from the broader technology sector are AvidXchange AVDX, Belfuse BELFB and Pegasystems PEGA, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AvidXchange’s fourth-quarter 2023 earnings has moved north 3 cents to 0 cents per share in the past 30 days. For fiscal 2023, earnings estimates have been revised by 4 cents northward to 2 cents per share in the past 30 days.
AVDX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 277.91%. Shares of AVDX have climbed 20.6% year to date.
The Zacks Consensus Estimate for Bel Fuse’s fourth-quarter fiscal 2023 earnings has moved north 38 cents to $1.44 per share in the past 60 days. For fiscal 2023, the bottom-line estimate has moved north 72 cents to $6.28 in the past 60 days.
Bel Fuse’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 56.92%. Shares of Bel Fuse have surged 89% year to date.
The Zacks Consensus Estimate for Pegasystems’ fourth-quarter 2023 earnings has moved south 13 cents to $1.07 in the past 60 days. For fiscal 2023, the bottom-line estimate has moved north 31 cents to $1.77 in the past 60 days.
PEGA’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, delivering an average surprise of 1250.20%. Shares of PEGA have climbed 43.5% year to date.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Bel Fuse Inc. (BELFB) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : Free Stock Analysis Report
Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report
AvidXchange Holdings, Inc. (AVDX) : 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.
|
2023-12-16
|
ARTLW
|
By Stephen Culp
NEW YORK, Dec 21 (Reuters) - U.S. stocks rose on Thursday, paring the previous day's losses, as economic data fueled optimism that the Federal Reserve would ease monetary policy and revived investor risk appetite.
All three major U.S. stock indexes were higher, with surging chip stocks led by Micron Technology MU.O after its better-than-expected quarterly forecast, putting the tech-heavy Nasdaq <.IXIC> out front.
Data on Thursday showed third-quarter U.S. economic growth was not as robust as originally stated, and cracks are appearing in the tight labor market, which the Fed considers an obstacle to cooling inflation.
U.S. stocks abruptly sank late Wednesday afternoon, snapping a multi-session rally, possibly accelerated by hedging activity associated with short-dated option trades.
"After a breather yesterday, the economic data further underscored investor confidence that the Fed is now on a rate cut track," said Greg Bassuk, chief executive officer at AXS Investments in New York. "The investor narrative yesterday was about profit taking on the heels of a very long consistent holiday rally."
"Investors would be prudent to buy on these dips," Bassuk said, adding that he believes stocks "will end the year strongly."
Financial markets are pricing in a 71.3% likelihood that the U.S. central bank with reduce the Fed funds target rate by 25 basis points as soon as March, according to CME's FedWatch tool.
The market is awaiting the Commerce Department's personal consumption expenditures (PCE) report due on Friday, which will cover income growth, consumer spending and inflation.
At 2:25 p.m., the Dow Jones Industrial Average .DJI rose 152.83 points, or 0.41%, to 37,234.83, the S&P 500 .SPX gained 24.66 points, or 0.52%, at 4,723.01 and the Nasdaq Composite .IXIC added 109.88 points, or 0.74%, at 14,887.82.
Of the 11 major sectors of the S&P 500, consumer discretionary stocks .SPLRCD enjoyed the biggest percentage gains.
Micron Technology MU.Oforecast quarterly revenue above market estimates, and its shares jumped 7.3% on signs of a memory chip recovery in 2024 after one of the most significant downturns in years.
The Philadelphia SE semiconductor index .SOX housing chip stocks advanced 2.0%.
U.S. electric vehicle makers Tesla TSLA.O, Lucid Group LCID.O and Rivian Automotive RIVN.Orose between 2.1% and 2.4% after a report said the United States was considering tariff hikes on Chinese EV manufacturers.
Triumph Group TGI.N soared 32.1% after the aerospace supplier said it would sell its components aftermarket business to AAR Corp AIR.N for $725 million.
U.S.-listed shares of Blackberry BB.Ntumbled 13.8% after its fourth-quarter revenue estimates landed below expectations.
Advancing issues outnumbered decliners on the NYSE by a 2.54-to-1 ratio; on Nasdaq, a 2.17-to-1 ratio favored advancers.
The S&P 500 posted 13 new 52-week highs and one new low; the Nasdaq Composite recorded 57 new highs and 54 new lows.
Jobless claims https://tmsnrt.rs/3GT60FK
(Reporting by Stephen Culp; Additional reporting by Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Looking at the sectors faring worst as of midday Thursday, shares of Utilities companies are underperforming other sectors, not showing much of a gain. Within that group, Dominion Energy Inc (Symbol: D) and Southern Company (Symbol: SO) are two large stocks that are lagging, showing a loss of 1.4% and 1.0%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is down 0.2% on the day, and down 8.73% year-to-date. Dominion Energy Inc, meanwhile, is down 21.84% year-to-date, and Southern Company, is down 0.14% year-to-date. Combined, D and SO make up approximately 12.5% of the underlying holdings of XLU.
The next worst performing sector is the Energy sector, up 0.1%. Among large Energy stocks, Valero Energy Corp (Symbol: VLO) and Marathon Petroleum Corp. (Symbol: MPC) are the most notable, showing a loss of 1.4% and 1.0%, respectively. One ETF closely tracking Energy stocks is the Energy Select Sector SPDR ETF (XLE), which is down 0.1% in midday trading, and up 3.39% on a year-to-date basis. Valero Energy Corp, meanwhile, is up 12.28% year-to-date, and Marathon Petroleum Corp. is up 39.84% year-to-date. Combined, VLO and MPC make up approximately 6.9% of the underlying holdings of XLE.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, eight sectors are up on the day, while none of the sectors are down.
SECTOR % CHANGE
Healthcare +1.3%
Technology & Communications +1.1%
Services +0.8%
Industrial +0.8%
Consumer Products +0.7%
Materials +0.7%
Financial +0.4%
Energy +0.1%
Utilities -0.0%
10 ETFs With Stocks That Insiders Are Buying »
Also see:
Top Stocks Held By Louis Bacon
Institutional Holders of SPXC
VWOB Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
The best performing sector as of midday Thursday is the Healthcare sector, up 1.3%. Within the sector, Moderna Inc (Symbol: MRNA) and DexCom Inc (Symbol: DXCM) are two of the day's stand-outs, showing a gain of 5.8% and 4.8%, respectively. Among healthcare ETFs, one ETF following the sector is the Health Care Select Sector SPDR ETF (Symbol: XLV), which is up 0.8% on the day, and up 0.41% year-to-date. Moderna Inc, meanwhile, is down 49.07% year-to-date, and DexCom Inc is up 6.50% year-to-date. Combined, MRNA and DXCM make up approximately 1.5% of the underlying holdings of XLV.
The next best performing sector is the Technology & Communications sector, up 1.1%. Among large Technology & Communications stocks, Micron Technology Inc. (Symbol: MU) and Western Digital Corp (Symbol: WDC) are the most notable, showing a gain of 7.2% and 5.7%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 0.6% in midday trading, and up 55.99% on a year-to-date basis. Micron Technology Inc., meanwhile, is up 68.11% year-to-date, and Western Digital Corp is up 66.24% year-to-date. Combined, MU and WDC make up approximately 1.2% of the underlying holdings of XLK.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, eight sectors are up on the day, while none of the sectors are down.
SECTOR % CHANGE
Healthcare +1.3%
Technology & Communications +1.1%
Services +0.8%
Industrial +0.8%
Consumer Products +0.7%
Materials +0.7%
Financial +0.4%
Energy +0.1%
Utilities -0.0%
10 ETFs With Stocks That Insiders Are Buying »
Also see:
VIRI Options Chain
ALL Split History
MRLN 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.
|
2023-12-16
|
ARTLW
|
Southwest Airlines LUV received encouraging tidings on the labor front when it reached provisional agreement with its pilots’ union (Southwest Airlines Pilots Association or SWAPA). We remind investors that earlier this month, SWAPA had reached an Agreement in Principle or AIP with the Dallas-based carrier on a new contract, after three and a half years of negotiations for higher pay and better working conditions. The agreement was evaluated by the pilots’ union. AIP became a tentative deal following the approval of SWAPA’s board.
After that, the provisional deal will be voted upon by LUV’s 11,000-plus pilots. The deal will materialize only if the voting outcome is favorable and will run through December 2028.
The deal, on becoming effective, will make the pilots eligible for significant gains in compensation, with pay rate hikes over the next four years. The agreement also includes provisions pertaining to improvements to work rules and flying schedules, better disability coverage and increases to retirement benefits. The value of the deal is reportedly $12 billion.
Per Captain Casey Murray, SWAPA’s president, “Our membership has fought for almost four years to reach an agreement with Southwest Airlines. They now have the opportunity to evaluate this deal and cast their vote accordingly.” LUV’s pilots will be voting on the tentative agreement till Jan 22, 2024.
With U.S. airlines grappling with pilot shortage as air-travel demand bounced back strongly from the pandemic lows, we have witnessed quite a few deals with this labor group in the airline space this year.
In August, American Airlines' AAL four-year pact with pilots was ratified. The approval has made AAL’s pilots eligible for an immediate pay raise in excess of 21% on average. Also, the deal included provisions aimed at improving pilots’ quality of life. In fact, improvements pertaining to the quality of life represent nearly 20% of the increased value of the new contract.
In March, Delta Air Lines’ DAL pilots ratified a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay hike over the next four years.
Zacks Rank & Key Picks
LUV, AAL and DAL currently carry a Zacks Rank #3 (Hold) each. Investors interested in the Zacks Airline industry may consider some better-ranked stocks like Air Canada ACDVF and SkyWest SKYW.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a year-round route between Montreal and Madrid.
The service will commence in May 2024, as part of its expanded international summer 2024 flying schedule to cater to the increased demand. The Zacks Consensus Estimate for Air Canada’s 2023 and 2024 earnings has witnessed an increase of 32.6% and 41.3%, respectively, in the past 60 days.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet modernization efforts are commendable. The company’s initiatives to reward shareholders also bode well.
The Zacks Consensus Estimate for SKYW’s 2023 earnings has risen 38.9% in the past 60 days. The Zacks Consensus Estimate for 2024 earnings has jumped 33.2% in the past 60 days.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Air Canada (ACDVF) : 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.
|
2023-12-16
|
ARTLW
|
As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
On Wednesday, LQR House's Chief Executive Officer, Sean Dollinger, made a $106,357 buy of LQR, purchasing 23,100 shares at a cost of $4.60 each. LQR House is trading off about 0.8% on the day Thursday. Before this latest buy, Dollinger purchased LQR on 2 other occasions during the past twelve months, for a total cost of $158,870 at an average of $0.19 per share.
And at Mativ, there was insider buying on Monday, by Jeffrey Keenan who bought 6,000 shares at a cost of $13.99 each, for a total investment of $83,940. Before this latest buy, Keenan made one other purchase in the past year, buying $36,640 shares for a cost of $12.21 a piece. Mativ is trading up about 2% on the day Thursday. So far Keenan is in the green, up about 7.9% on their buy based on today's trading high of $15.10.
VIDEO: Thursday 12/21 Insider Buying Report: LQR, MATV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Meta Platforms Inc (Symbol: META), where a total of 224,369 contracts have traded so far, representing approximately 22.4 million underlying shares. That amounts to about 131.5% of META's average daily trading volume over the past month of 17.1 million shares. Especially high volume was seen for the $360 strike call option expiring December 22, 2023, with 17,650 contracts trading so far today, representing approximately 1.8 million underlying shares of META. Below is a chart showing META's trailing twelve month trading history, with the $360 strike highlighted in orange:
NVIDIA Corp (Symbol: NVDA) saw options trading volume of 550,345 contracts, representing approximately 55.0 million underlying shares or approximately 127.4% of NVDA's average daily trading volume over the past month, of 43.2 million shares. Particularly high volume was seen for the $490 strike call option expiring December 22, 2023, with 38,118 contracts trading so far today, representing approximately 3.8 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $490 strike highlighted in orange:
And Ulta Beauty Inc (Symbol: ULTA) saw options trading volume of 10,326 contracts, representing approximately 1.0 million underlying shares or approximately 108.9% of ULTA's average daily trading volume over the past month, of 948,135 shares. Particularly high volume was seen for the $510 strike call option expiring December 29, 2023, with 3,734 contracts trading so far today, representing approximately 373,400 underlying shares of ULTA. Below is a chart showing ULTA's trailing twelve month trading history, with the $510 strike highlighted in orange:
For the various different available expirations for META options, NVDA options, or ULTA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
CLAS shares outstanding history
MFC Historical Stock Prices
Funds Holding UMBF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Johnson & Johnson (Symbol: JNJ), where a total volume of 36,537 contracts has been traded thus far today, a contract volume which is representative of approximately 3.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.3% of JNJ's average daily trading volume over the past month, of 7.9 million shares. Particularly high volume was seen for the $175 strike put option expiring January 19, 2024, with 12,340 contracts trading so far today, representing approximately 1.2 million underlying shares of JNJ. Below is a chart showing JNJ's trailing twelve month trading history, with the $175 strike highlighted in orange:
Cintas Corporation (Symbol: CTAS) saw options trading volume of 1,783 contracts, representing approximately 178,300 underlying shares or approximately 45.9% of CTAS's average daily trading volume over the past month, of 388,230 shares. Particularly high volume was seen for the $560 strike put option expiring January 19, 2024, with 252 contracts trading so far today, representing approximately 25,200 underlying shares of CTAS. Below is a chart showing CTAS's trailing twelve month trading history, with the $560 strike highlighted in orange:
And Aon plc (Symbol: AON) options are showing a volume of 5,257 contracts thus far today. That number of contracts represents approximately 525,700 underlying shares, working out to a sizeable 45.8% of AON's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $330 strike put option expiring January 19, 2024, with 1,274 contracts trading so far today, representing approximately 127,400 underlying shares of AON. Below is a chart showing AON's trailing twelve month trading history, with the $330 strike highlighted in orange:
For the various different available expirations for JNJ options, CTAS options, or AON options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Mortgage REITs Hedge Funds Are Buying
INHX Videos
ZEST Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
The following companies are expected to report earnings after hours on 12/21/2023. Visit our Earnings Calendar for a full list of expected earnings releases.
Nike, Inc. (NKE)is reporting for the quarter ending November 30, 2023. The shoes & retail apparel company's consensus earnings per share forecast from the 16 analysts that follow the stock is $0.84. This value represents a 1.18% decrease compared to the same quarter last year. NKE missed the consensus earnings per share in the 2nd calendar quarter of 2023 by -1.49%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for NKE is 32.38 vs. an industry ratio of -30.60, implying that they will have a higher earnings growth than their competitors in the same industry.
AAR Corp. (AIR)is reporting for the quarter ending November 30, 2023. The aerospace and defense company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.81. This value represents a 17.39% increase compared to the same quarter last year. In the past year AIR has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2024 Price to Earnings ratio for AIR is 20.57 vs. an industry ratio of 26.20.
Mission Produce, Inc. (AVO)is reporting for the quarter ending October 31, 2023. The agriculture company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.08. This value represents a 33.33% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AVO is 66.00 vs. an industry ratio of 4.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Limoneira Co (LMNR)is reporting for the quarter ending October 31, 2023. The agriculture company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.15. This value represents a 53.13% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2023 Price to Earnings ratio for LMNR is -40.30 vs. an industry ratio of 4.60.
Cemtrex Inc. (CETX)is reporting for the quarter ending September 30, 2023. The electrical instrument company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-3.59. This value represents a 6.75% increase compared to the same quarter last year. Zacks Investment Research reports that the 2023 Price to Earnings ratio for CETX is -0.62 vs. an industry ratio of 15.40.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Triumph Group (NYSE: TGI) has agreed to sell its product support business for $725 million, cash that will immediately boost the struggling aerospace company's balance sheet. Investors are excited about the development, sending Triumph shares up more than 30% as of 1 pm ET Thursday.
The portfolio reshaping picks up pace
Triumph is a collection of aerospace businesses that has struggled in recent years. The shares have lost about 80% of their value over the past decade due to poorly timed deals that saddled the company with money-losing businesses and a high debt load.
The company has been slowly trying to reshape its portfolio, selling off unprofitable businesses and restructuring those it wants to keep. On Thursday, Triumph announced plans to sell its product support business to AAR (NYSE: AIR) for $725 million.
The deal values the business to be sold at about 15.5 times earnings before interest, taxes, depreciation, and amortization (EBITDA) and should help Triumph bring down its debt balance. Triumph is setting itself up to retire its notes due in 2025 and pay a portion of the debt due in 2028.
That would be a boost to earnings because interest expense would fall. It also avoids the risk of refinancing debt in the quarters ahead when rates might still be at an elevated level.
Is Triumph a buy after its big divestiture deal?
Triumph remains a work in progress, but for the first time in years, the focus is clear, and the company appears to be heading in the right direction. There is still work to be done, though. Even after the sale, Triumph's total debt would be about 4 times adjusted EBITDA, which provides relatively little flexibility. The company is also trying to right-size key businesses and work through whatever additional portfolio reshaping is necessary.
The goal is for Triumph to shift away from commoditized businesses and toward more priority assets with better pricing power, following the model of more successful aerospace stocks, like TransDigm Group and Heico. Triumph isn't there yet, but this latest divestiture is a solid step forward for patient investors.
Should you invest $1,000 in Triumph Group right now?
Before you buy stock in Triumph Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Triumph Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Lou Whiteman has positions in TransDigm Group. The Motley Fool recommends Heico and TransDigm Group. 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.
|
2023-12-16
|
ARTLW
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Archer Daniels Midland Co. (Symbol: ADM), where a total volume of 36,476 contracts has been traded thus far today, a contract volume which is representative of approximately 3.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 94.6% of ADM's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $87.50 strike put option expiring January 19, 2024, with 12,400 contracts trading so far today, representing approximately 1.2 million underlying shares of ADM. Below is a chart showing ADM's trailing twelve month trading history, with the $87.50 strike highlighted in orange:
NextEra Energy Inc (Symbol: NEE) saw options trading volume of 91,901 contracts, representing approximately 9.2 million underlying shares or approximately 74.7% of NEE's average daily trading volume over the past month, of 12.3 million shares. Especially high volume was seen for the $77.50 strike put option expiring January 19, 2024, with 32,040 contracts trading so far today, representing approximately 3.2 million underlying shares of NEE. Below is a chart showing NEE's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
And Microsoft Corporation (Symbol: MSFT) options are showing a volume of 200,045 contracts thus far today. That number of contracts represents approximately 20.0 million underlying shares, working out to a sizeable 71.2% of MSFT's average daily trading volume over the past month, of 28.1 million shares. Particularly high volume was seen for the $375 strike call option expiring December 22, 2023, with 24,486 contracts trading so far today, representing approximately 2.4 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $375 strike highlighted in orange:
For the various different available expirations for ADM options, NEE options, or MSFT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding BKSY
GETY Videos
CAL Dividend History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Booking Holdings Inc (Symbol: BKNG), where a total volume of 4,366 contracts has been traded thus far today, a contract volume which is representative of approximately 436,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 167.9% of BKNG's average daily trading volume over the past month, of 260,000 shares. Particularly high volume was seen for the $3400 strike put option expiring January 19, 2024, with 120 contracts trading so far today, representing approximately 12,000 underlying shares of BKNG. Below is a chart showing BKNG's trailing twelve month trading history, with the $3400 strike highlighted in orange:
Costco Wholesale Corp (Symbol: COST) options are showing a volume of 42,420 contracts thus far today. That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 165.9% of COST's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $680 strike call option expiring December 22, 2023, with 4,516 contracts trading so far today, representing approximately 451,600 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $680 strike highlighted in orange:
And Netflix Inc (Symbol: NFLX) saw options trading volume of 67,430 contracts, representing approximately 6.7 million underlying shares or approximately 161% of NFLX's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $500 strike call option expiring December 22, 2023, with 6,545 contracts trading so far today, representing approximately 654,500 underlying shares of NFLX. Below is a chart showing NFLX's trailing twelve month trading history, with the $500 strike highlighted in orange:
For the various different available expirations for BKNG options, COST options, or NFLX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
DOO Videos
COR YTD Return
JWEL shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Tech stocks rose Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) climbing 0.5% and the SPDR S&P Semiconductor ETF (XSD) adding 2%.
The Philadelphia Semiconductor index advanced 2.1%.
In corporate news, Micron (MU) shares jumped 7% after the company reported better-than-expected fiscal Q1 results and analysts boosted their price targets on the stock.
Amesite (AMST) shares surged 20% after Chief Executive Ann Marie Sastry reported an additional purchase of company stock.
Luna Innovations (LUNA) gained 5.5% after it received a $50 million investment from White Hat Capital Partners, which was partially used to fund the company's $21.5 million acquisition of privately held fiber-optic sensing firm Silixa.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Financial stocks were advancing in Thursday afternoon trading, with the NYSE Financial Index and the Financial Select Sector SPDR Fund (XLF) both up 0.4%.
The Philadelphia Housing Index was up 0.3% and the Real Estate Select Sector SPDR Fund (XLRE) was 0.2% higher.
Bitcoin (BTC-USD) was easing 0.2% to $43,549, and the yield for 10-year US Treasuries was 2.6 basis points up at 3.90%.
In economic news, US gross domestic product growth was revised to 4.9% in Q3 from 5.2% in the prior estimate, below expectations for no revision in a survey compiled by Bloomberg. GDP rose 2.1% in Q2.
In corporate news, Paychex (PAYX) shares tumbled 6.5% after the company reported mixed fiscal Q2 results with revenue trailing estimates by analysts.
First American Financial (FAF) dropped 2.5% after it said Thursday it has temporarily taken some systems offline after a "cybersecurity incident."
Coinbase (COIN) received a virtual asset service provider approval from French financial watchdog AMF. This will allow the company to offer digital currency services in the country, CNBC reported, citing the company. Coinbase shares gained 2.8%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Health care stocks rose Thursday afternoon with the NYSE Health Care Index up 0.6% and the Health Care Select Sector SPDR Fund (XLV) adding 0.7%.
The iShares Biotechnology ETF (IBB) rose 1.2%.
In corporate news, Annexon (ANNX) shares surged nearly 21% after the company priced a $125 million securities offering, while BofA Securities upgraded the stock to buy from neutral.
MeiraGTx (MGTX) shares soared 30% after the company agreed to sell the remaining interests in botaretigene sparoparvovec to Johnson & Johnson's (JNJ) Janssen Pharmaceuticals unit for up to $415 million.
BioAtla (BCAB) jumped almost 10% after a regulatory filing showed Chief Executive Jay Short this week increased direct stake in the biopharmaceuticals company, acquiring 50,000 shares at an average price of $2.13 each.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Chipotle Mexican Grill Inc (Symbol: CMG), where a total of 4,684 contracts have traded so far, representing approximately 468,400 underlying shares. That amounts to about 258.8% of CMG's average daily trading volume over the past month of 180,960 shares. Especially high volume was seen for the $2250 strike call option expiring January 05, 2024, with 140 contracts trading so far today, representing approximately 14,000 underlying shares of CMG. Below is a chart showing CMG's trailing twelve month trading history, with the $2250 strike highlighted in orange:
CF Industries Holdings Inc (Symbol: CF) saw options trading volume of 52,072 contracts, representing approximately 5.2 million underlying shares or approximately 208.4% of CF's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $90 strike call option expiring May 17, 2024, with 15,431 contracts trading so far today, representing approximately 1.5 million underlying shares of CF. Below is a chart showing CF's trailing twelve month trading history, with the $90 strike highlighted in orange:
And Boeing Co. (Symbol: BA) saw options trading volume of 114,520 contracts, representing approximately 11.5 million underlying shares or approximately 181.1% of BA's average daily trading volume over the past month, of 6.3 million shares. Particularly high volume was seen for the $270 strike call option expiring December 22, 2023, with 11,156 contracts trading so far today, representing approximately 1.1 million underlying shares of BA. Below is a chart showing BA's trailing twelve month trading history, with the $270 strike highlighted in orange:
For the various different available expirations for CMG options, CF options, or BA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding DDT
EZGO Average Annual Return
Otis Worldwide 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.
|
2023-12-16
|
ARTLW
|
Per Pebblebrook Hotel Trust’s PEB recently released operating update, the operating results for November outpaced expectations, underpinning solid performance in the urban portfolio.
Shares of the company witnessed a marginal gain in the regular trading session on the NYSE on Dec 20, following the announcement.
The company noted that for the overall portfolio, same-property Hotel revenue per available room (”RevPAR”) exhibited year-over-year growth of 6.4%, mainly driven by an increase in occupancy and average daily rate (”ADR”). This was, in turn, led by a strong performance in the urban portfolio, moderate declines in resort rates from normalizing trends and significant share gains throughout the portfolio from redevelopment investments over the last few years.
Total revenues increased around 7% year over year, while same-property Hotel EBITDA rose more than 10% due to normalization in operating expense growth.
For PEB’s urban portfolio, robust business transient and group business, as well as gains in RevPAR share from properties redeveloped in the last few years, resulted in same-property urban total revenues growth of 10% on a year-over-year basis. An increase in occupancy and rate led to a 9.4% rise in RevPAR. Non-room revenues climbed 11.6% from the year-ago period.
Market-wise, PEB’s properties in San Francisco reported 31% year-over-year RevPAR growth on the back of solid business transient and group travel and a favorable convention calendar. Properties in Washington DC and Boston witnessed RevPAR growth of 23% and 16%, respectively, while Los Angeles and Chicago experienced positive single-digit year-over-year improvements.
For the resort portfolio, same-property occupancy rose 5.5% in November from the same period in 2022. ADR declined 6.6% year-over-year as the increase in group demand was partially offset by normalization in leisure trends. From the beginning of the year through Dec 19, 2023, same-property resort occupancy fell 12% compared with 2019 levels, while ADR grew at a solid 40%.
The resorts are also benefiting from significant repositioning and transformational investments throughout the portfolio.
Per the operating update, Pebblebrook is on schedule to complete a substantial part of the restoration of the 79-room LaPlaya Beach Resort & Club, in Naples, FL. It projects to complete and reopen the resort by the first quarter of 2024.
The company is on track to complete the $12.5 million redevelopment of four guest houses, consisting of 50 guestrooms and suites at Southernmost Beach Resort. Of the 50 rooms, 11 are completed and in service. The remaining guestrooms are expected to be operational before the end of this year.
PEB is actively carrying out the redevelopments at the Newport Harbor Island Resort for $48 million and Estancia La Jolla Hotel & Spa for $25 million. The Estancia La Jolla is in the second and final phase of the transformation. Both projects are anticipated to complete the targets by the second quarter of 2024.
Amid the favorable lodging industry fundamentals, the real estate investment trust (REIT) expects fourth-quarter 2023 adjusted funds from operations per share in the range of 9-14 cents. The Zacks Consensus Estimate is currently pegged at 12 cents.
Same-property RevPAR is projected between $183 million and $188 million, indicating year-over-year growth of 1-4%. Same-property Hotel EBITDA is estimated between $57 million and $63 million.
Nonetheless, the company’s ability to maintain rates in its resort markets in the near term is likely to be affected by persistent macroeconomic uncertainty and a high interest rate environment.
PEB currently carries a Zacks Rank #3 (Hold). Its shares have gained 13.6% in the quarter-to-date period compared with the industry’s growth of 17.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Lamar Advertising LAMR, EastGroup Properties EGP and Stag Industrial STAG each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lamar Advertising’s current-year funds from operations (”FFO”) per share has been raised by 1.7% over the past two months to $7.31.
The Zacks Consensus Estimate for EastGroup Properties’ 2023 FFO per share has moved marginally north in the past two months to $7.70.
The Zacks Consensus Estimate for Stag Industrial’s ongoing year’s FFO per share has been raised 1.3% upward over the past two months to $2.28.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Lamar Advertising Company (LAMR) : Free Stock Analysis Report
Pebblebrook Hotel Trust (PEB) : Free Stock Analysis Report
Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
EastGroup Properties, Inc. (EGP) : 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.
|
2023-12-16
|
ARTLW
|
Consumer stocks were edging up Thursday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) up 0.1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.8%.
In corporate news, Carnival (CCL) shares jumped 6% after the cruise line operator posted better-than-expected improvements in fiscal Q4 results backed by strong demand and a robust pricing environment.
CarMax (KMX) gained 4% after the company reported fiscal Q3 earnings that topped estimates by analysts.
Honda (HMC) said it's recalling 2.6 million 2017-2020 Acura and Honda vehicles in the US due to the risk of a crash or injury because of a fuel pump defect that could cause the engine to not start or stall while driving. Honda shares were little changed.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Paychex, Inc. PAYX reported mixed second-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $1.08 per share beat the Zacks Consensus Estimate and increased 9.1% on a year-over-year basis. Total revenues of $1.26 billion missed the consensus estimate but increased 5.7% year over year.
Service revenues of $1.2 billion were up 5% year over year but missed our estimate of $1.23 billion.
Paychex, Inc. Price, Consensus and EPS Surprise
Paychex, Inc. price-consensus-eps-surprise-chart | Paychex, Inc. Quote
Quarter Details
Revenues from the Management Solutions segment increased 4% year over year to $930.7 million but missed our estimate by a slight margin. The growth can be attributed to an increase in the clientele utilizing the company’s range of human capital management solutions, augmented revenue per client through enhanced price realization and greater product penetration, including HR Solutions and retirement offerings, as well as an expansion in ancillary services.
Professional employer organization (“PEO”) and Insurance Solutions’ revenues totaled $295.7 million, up 8% from the year-ago quarter’s level. The figure also beat our estimate by 1.8%. The expansion in the average number of employees at PEO worksites, the rise in PEO insurance revenues and the increased income generated from ancillary services serve as driving factors for the growth.
Interest on funds held for clients increased 44% year over year to $31.5 million, lower than our estimate of $32.8 million.
EBITDA of $551 million increased 6% year over year but lagged our estimate of $554.4 million. Operating income increased 7% year over year to $506.2 million but lagged our estimate by 1%. Operating margin was 40.2%, up 50 basis points from the year-ago reported figure.
Paychex exited the quarter with cash and cash equivalents of $1.36 billion compared with $1.65 billion reported at the end of the prior quarter. Long-term debt totaled $798.4 million compared with $798.3 million in the prior quarter.
Cash generated from operating activities amounted to $348.5 million while capital expenditures totaled $40.7 million.
Updated Fiscal 2024 Outlook
Paychex provided its fiscal 2024 outlook, wherein adjusted EPS is expected to register 10-11% growth from the previously estimated 9-11%. PAYX reaffirmed its projection of total revenues to register 6-7% growth.
Management Solutions’ revenues are expected to grow around 5-6%. PEO and Insurance Solutions’ revenues are anticipated to grow 7-9%, up from the previously guided 6-9%. Interest on funds held for clients is anticipated to be in the range of $140-$150 million. The company expects operating margin in the range of 41-42%.
Currently, Paychex carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Here are a few other stocks from the broader Business Services sector that have performed well in their recent earnings release.
ABM Industries Inc. ABM reported impressive fourth-quarter fiscal 2023 results, wherein both earnings and revenues beat their respective Zacks Consensus Estimate.
Adjusted earnings (considering 5 cents from non-recurring items) were $1.01 per share, which beat the consensus estimate by 8.6% and increased 13.5% from the previous year's quarterly figure.
Total revenues of $2.09 billion beat the consensus mark by 2.8% and improved 4.1% from the previous year’s reported actual. The upside was backed by solid segmental performance, strength from new accounts that came online late last year and the acquisition of RavenVolt. Quarterly revenue growth included 3.8% organic growth and a 0.3% upside from acquisitions.
S&P Global Inc. SPGI reported impressive third-quarter results, wherein both earnings and revenues beat their respective Zacks Consensus Estimate.
SPGI’s adjusted earnings per share (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat the consensus estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus mark by 2% and improved 8% year over year, backed by strong performance in each of its divisions.
Verisk Analytics Inc.VRSK reported impressive third-quarter 2023 results, wherein both earnings and revenues beat their respective Zacks Consensus Estimate.
VRSK’s adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, which beat the consensus estimate and increased 4.1% from the year-ago reported figure. This outperformance was due to strong growth in Underwriting Data Solutions, Life Insurance and Extreme Event Solutions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Paychex, Inc. (PAYX) : Free Stock Analysis Report
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : 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.
|
2023-12-16
|
ARTLW
|
Allegiant Travel Company ALGT is enhancing domestic leisure travel space with the opening of its hotel resort, Sunseeker Resort Charlotte Harbor, located on the Gulf Coast in Southwest Florida. Sunseeker Resort joins Allegiant's wide portfolio of ancillary products, including rental cars, professional sports packages, and more. ALGT has been selling hotel rooms to customers on behalf of third parties for more than 18 years.
The resort was first announced in 2017, with Charlotte County, FL region, being chosen as the prime location for the resort owing to ALGT’s air travel demand in the area. As of September 2023, ALGT has flown almost 1.8 million passengers in and out of Punta Gorda Airport, an airline base of operations located a few minutes away from Sunseeker Resort.
The resort is spread over 22 waterfront acres with 785 premier guestrooms. Additionally, Sunseeker Resort provides 60,000 square feet of meeting and event space, two pool experiences, seven retail outlets, and a guest-exclusive Aileron Golf Club. A fitness center and spa are also located in the main tower.
How Will the Resort Benefit Allegiant?
A combination of airline and hotel stays has always been a lucrative offer. Considering that more than 85% of ALGT’s airline customers prefer buying lodging, followed by events such as dining, spa visits and golf outings, the latest move is expected to strengthen Allegiant's competitive position as an integrated travel company in the industry.
Sunseeker Resort provides a variety of leisure activities that will help Allegiant attract more customers in Southwest Florida.
Maurice J. Gallagher, CEO and founder of Allegiant, stated, "This is a transformational project for Allegiant. It's a catalyst for our continued growth as an integrated travel company and an example of how the industry can adapt to continue providing customers with the products and services they want."
Gregory Anderson, Allegiant president, stated, "We have helped pioneer selling ancillary products both inside and outside of an airplane, in turn, diversifying our revenue streams. Over the past five years, we have sold on average about 300,000 'third-party' hotel room nights per year to our customers. The opening of Sunseeker Resort is a key milestone in providing more customer offerings through our 'first-party' integrated resort."
Additionally, ALGT provides almost 21,000 jobs in Florida. Sunseeker Resort is expected to generate more than 1,000 permanent jobs in the Charlotte County area alone and is likely to attract 300,000 more visitors annually to the area.
So far this year, shares of Allegiant have gained 22.2%, outperforming the industry’s rise of 14%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Allegiant carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 26.1% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 38.9% over the past 90 days. Shares of SKYW have surged 209.7% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : 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.
|
2023-12-16
|
ARTLW
|
By Johann M Cherian and Shristi Achar A
Dec 21 (Reuters) - Wall Street advanced on Thursday after recovering from a broad sell-off in the prior session, with latest data adding to expectations that borrowing costs could ease next year, while chipmaker Micron advanced after giving an upbeat forecast.
"We have entered back into what we call a Goldilocks scenario, a situation of rising earnings and falling inflation," said Steve Chappell, global head of trading systems development for VectorVest.
"So there is a reason to be cautiously optimistic. The fear of missing out has certainly been a part of this rally at this point."
The yield on the benchmark 10-year U.S. treasury note US10YT=RR moved lower to 3.8806%, further from multi-year highs it scaled in October. US/
The benchmark index is nearing its record closing high hit in early 2022 which would confirm the index had been in a bull market since closing at the bear market floor in October 2022.
Despite some push back from Federal Reserve officials, traders still expect an 82.9% chance of at least a 25 basis points rate cut in as early as March next year, and a 100% chance of a rate cut in May, according to the CME FedWatch Tool.
Meanwhile, Micron TechnologyMU.O forecast quarterly revenue above market estimates, and its shares jumped 7.2% on signs of a memory chip recovery in 2024 after one of the most significant downturns in years.
The Philadelphia SE semiconductor index .SOX housing chip stocks advanced 2.3%.
Nine of the 11 S&P 500's sectors were in the green, with the health sector .SPXHC leading with a 0.8% rise, while the small-caps Russell 2000 index .RUT rose 1.2%.
"As people become less fearful about the stock market, these are segments of the market that have been beaten up the most. So that amounts to investors minds as opportunity," Chappell added on small-cap stocks.
At 12:02 p.m. ET, the Dow Jones Industrial Average .DJI was up 139.63 points, or 0.38%, at 37,221.63, the S&P 500 .SPX was up 24.91 points, or 0.53%, at 4,723.26, and the Nasdaq Composite .IXIC was up 107.50 points, or 0.73%, at 14,885.44.
BoeingBA.Nedged up 0.3% as the planemaker is set to restart deliveries of its 787 Dreamliner to China within days, a source told Reuters.
U.S. electric vehicle makers like Tesla TSLA.O and Lucid Group <LCID.O> rose 2.0% and 2.8%, respectively, after a report said the United States was considering tariff hikes on Chinese EV manufacturers.
Advancing issues outnumbered decliners by a 3.19-to-1 ratio on the NYSE and a 2.32-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and no new lows, while the Nasdaq recorded 47 new highs and 46 new lows.
Jobless claims https://tmsnrt.rs/3GT60FK
(Reporting by Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
((johann.mcherian@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.
|
2023-12-16
|
ARTLW
|
Under Armour, Inc.’s UAA focus on strengthening its brands through enhanced customer connections, effective innovations, better price points and a loyalty program should help it to stand firmly in the challenging operating market. The company has been progressing smoothly on its multi-year transformation plan.
We note that shares of this athletic footwear, apparel and accessories dealer have increased 34.4% over the past three months compared with the industry’s 25.7% rise. Analysts seem optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $6 billion and 59 cents, respectively. These estimates show corresponding increases of 3.8% and 20.8% year over year.
Strategies in Detail
Under Armour’s focus on reinforcing brands and strict go-to-market processes appears encouraging. Additionally, the company strives to boost its operating model as well as return greater profitability and value to shareholders. Its growth strategy is focused on improving sales through product innovation, building long-term relationships with key wholesale partners, investments in its stores and digitization to directly reach customers, and selling more inventory at full price.
UAA is focusing on digitization by converting real-time data and analytics to drive brand interest and consideration within its largest categories. Restructuring initiatives, cost management, inventory balance and emphasis on productivity should position the company well for growth.
Image Source: Zacks Investment Research
To aid overall growth, management highlighted priorities to drive clarity and business alignment across the company. The initiative, which is named Protect This House 3 or PTH3, is focused on driving global brand heat, staying relentlessly focused on elevating design and building better products and driving growth in the United States. With this plan, management is optimistic about creating a more advantageous position to unlock consistent and sustainable growth.
In addition, Under Armour has been trying to boost its direct-to-consumer business through store expansion initiatives and the enhancement of its e-commerce platform. Management has been investing in boosting digital capabilities to drive growth in the direct-to-consumer (DTC) channel. This includes buy online and pick-up in store facilities and flexible payment capabilities. In the second quarter of fiscal 2024, the company’s DTC revenues increased 3% to $596 million due to a 2% rise in e-commerce revenues, which represented 35% of the total DTC business in the quarter.
To wrap up, Under Armour is well-poised for growth based on the aforementioned strengths. A Value Score of B for this current Zacks Rank #3 (Hold) company further demonstrates strength.
Eye These Solid Picks
Some better-ranked companies are Royal Caribbean RCL, lululemon athletica LULU and Ralph Lauren RL.
Royal Caribbean sports a Zacks Rank #1 (Strong Buy), at present. RCL has a trailing four-quarter earnings surprise of 28.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 57.7% and 187.9%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 18.2% and 22.9%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 18%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS suggests growth of 1.4% and 13.1%, respectively, from the year-ago corresponding figures.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Under Armour, Inc. (UAA) : 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.
|
2023-12-16
|
ARTLW
|
Euronet Worldwide, Inc. EEFT is currently aided by strong segmental contribution, an enhanced payment solutions suite, acquisitions and a notable financial stand.
Zacks Rank & Price Rally
Euronet currently carries a Zacks Rank #3 (Hold).
The stock has gained 23.7% in the past three months compared with the industry’s 12.4% growth. The Zacks Finance sector and S&P 500 composite gained 10.7% and 9.8%, respectively, in the said time frame.
Image Source: Zacks Investment Research
Favorable Style Score
EEFT is well-poised for progress, as evidenced by its impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of all three factors.
Robust Growth Prospects
The Zacks Consensus Estimate for Euronet’s 2023 earnings is pegged at $7.35 per share, indicating a 12.9% increase from the year-ago reported figure. The consensus mark for revenues is $3.7 billion, implying 9.2% growth from the year-ago number.
The Zacks Consensus Estimate for 2024 earnings is pegged at $8.28 per share, suggesting 12.7% growth from the 2023 estimate. The consensus mark for revenues is $4 billion, which indicates a rise of 7.8% from the 2023 estimate.
Impressive Earnings Surprise History
The bottom line of EEFT outpaced estimates in each of the trailing four quarters, the average surprise being 4.74%.
Solid Return on Equity
Euronet’s efficiency in utilizing shareholders’ funds can be substantiated by its return on equity of 27.8% as of Sep 30, 2023, which remains higher than the industry’s average of 19.9%.
Business Tailwinds
The top line of Euronet gained on the back of strong contributions from the EFT Processing, epay and Money Transfer segments. It improved 9.5% year over year in the first nine months of 2023. Management anticipates adjusted earnings per share to witness 10-15% year-over-year growth in 2024.
The EFT Processing segment is aided by higher domestic and international cash withdrawal transactions, improved low-value point-of-sale transactions in Europe and increase in low-value payment processing transactions in the Asia Pacific. The unit processed total transactions of 6.1 million in the first nine months of 2023, which climbed 32% year over year.
Consistent expansion of digital branded payments and mobile growth aids the performance of the epay segment while higher U.S.-outbound transactions, direct-to-consumer digital transactions and international-originated money transfers drive the Money Transfer segment’s performance.
Euronet resorts to acquisitions, which have meaningfully contributed to the growth of its business in the form of developing new products and services as well as expanding its geographical presence. The widespread adoption of contactless payments provides EEFT an opportunity to capitalize on through its innovative payment solutions.
An enhanced payment, transaction processing and distribution solutions suite make it a favorite choice for partnerships with financial service providers, agents, retailers, merchants, content providers and individual consumers. In this regard, EEFT’s REN platform, which delivers an array of services comprising payment processing, card issuing, loyalty services, inventory management, fraud management and many more, deserves a special mention.
In November 2023, Euronet entered into a multi-year collaboration with the leading private bank of Ecuador, Banco Pichincha, to offer prepaid and debit card issuing and processing services to the bank. The delivery of these services will be made possible through software as a service installation of the REN platform.
A sound cash balance and solid cash-generating abilities bear testament to EEFT’s financial strength based on which it can undertake business investments. It generated operating cash flows of $507.4 million in the first nine months of 2023, which improved 13.1% year over year from the prior-year comparable period.
Stocks to Consider
Some better-ranked stocks in the Finance space are BrightSpire Capital, Inc. BRSP, EastGroup Properties, Inc. EGP and BlackRock Capital Investment Corporation BKCC. While BrightSpire Capital currently sports a Zacks Rank #1 (Strong Buy), EastGroup Properties and BlackRock Capital carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BrightSpire Capital’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 11.60%. The Zacks Consensus Estimate for BRSP’s 2023 earnings suggests an improvement of 6.1% from the year-ago reported figure. The consensus mark for BRSP’s 2023 earnings has moved 2% north in the past 30 days.
The bottom line of EastGroup Properties beat estimates in three of the trailing four quarters and matched the mark once, the average surprise being 1.10%. The Zacks Consensus Estimate for EGP’s 2023 earnings suggests an improvement of 10% from the year-ago reported figure. The consensus mark for revenues suggests growth of 16.7% from the year-ago reported figure. The consensus mark for EGP’s 2023 earnings has moved 0.7% north in the past 60 days.
BlackRock Capital’s earnings outpaced estimates in each of the last four quarters, the average surprise being 12.18%. The Zacks Consensus Estimate for BKCC’s 2023 earnings suggests an improvement of 22.5% from the year-ago reported figure. The consensus mark for revenues suggests growth of 38.7% from the year-ago reported figure. The consensus mark for BKCC’s 2023 earnings has moved 2.1% north in the past 60 days.
Shares of BrightSpire Capital, EastGroup Properties and BlackRock Capital have gained 17%, 9% and 1.8%, respectively, in the past three months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Euronet Worldwide, Inc. (EEFT) : Free Stock Analysis Report
EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report
BlackRock Capital Investment Corporation (BKCC) : Free Stock Analysis Report
BrightSpire Capital, Inc. (BRSP) : 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.
|
2023-12-16
|
ARTLW
|
The market finally took a much-deserved breather on Wednesday following a scorching rally. There was little doubt that plenty of stocks were getting overheated after the run that began at the end of October got sent into overdrive following the Fed’s recent dovish turn.
Stocks then ripped higher through early morning trading Thursday as buyers stepped in and bought the first big dip heading into the official Santa Claus rally period. Wall Street could, no doubt, experience more selling in the days and weeks ahead since markets never go straight up.
Thankfully, lower interest rates and the expectations of Fed rate cuts change the math on cash and bonds. More investors are also positioning themselves to be on the right side of a possible extended rally in 2024—especially if they missed out this year. Plus, the recent run featured nearly every corner of the market and not just large-cap tech.
Investors might want to consider buying stocks outside of technology heading into 2024. Some might also want to focus on stocks that are trading at solid valuations at a time when much of the market is rather overheated.
Molson Coors (TAP)
Molson Coors is a beer titan that competes alongside AnheuserBusch InBev (BUD), Constellation Brands (STZ), and others in the U.S. and around the world. Molson Coors’ growing portfolio includes Coors Light, Miller Lite, Molson Canadian, Vizzy Hard Seltzer, and much more. Molson Coors said in early October that it achieved the goals it set in 2019 under its “Revitalization Plan” to post consistent sales and revenue growth, and it laid out plans for more growth in the years ahead.
Image Source: Zacks Investment Research
The firm’s core brands have gained traction and it has found success in its expansion outside of beer into whiskeys, energy drinks, and other non-beer areas. Molson Coors topped our Q3 EPS estimate and boosted its guidance.
TAP’s adjusted earnings are projected to climb by 29% this year on 9% higher revenue and then post additional growth next year. TAP’s recent upward earnings revisions extend its year-long run of improving earnings outlooks that helps it land a Zacks Rank #1 (Strong Buy) right now.
The company’s improving business helped TAP’s board authorize a new $2 billion share repurchase program earlier this year. TAP’s dividend yields 2.7% at the moment. And CEO Gavin Hattersley stressed last quarter that Molson Coors was upbeat that it will hold onto its market-share gains following the Bud Light boycott.
Image Source: Zacks Investment Research
TAP stock has climbed nearly 40% over the last three years to blow away Constellation’s 10%, AnheuserBusch InBev’s -10% decline, and the wider Zacks Consumer Staples sector’s -6% dip. Molson Coors stock has climbed 19% in 2023. Yet it currently trades over 13% below its summer highs and 45% below its all-time highs.
On the valuation side, TAP trades at a 60% discount to its peaks, 15% under its 10-year median, 35% below BUD, and at a 33% discount to the Consumer Staples Sector at 11.5X forward 12-month earnings.
Vistra Corp. (VST)
Vistra is one of the leading integrated retail electricity and power generation companies in the U.S. The Irving, Texas-based firm currently serves approximately 4 million residential, commercial, and industrial retail customers across 20 states, including six of the seven competitive wholesale markets in the country.
Vistra is one of the largest competitive electricity providers in the country, with a wide-ranging portfolio that features nuclear, solar, battery energy storage facilities, and natural gas.
Image Source: Zacks Investment Research
All four of the brokerage recommendations that Zacks has for Vistra are “Strong Buys.” And its dividend yields 2.3%. VST is also attempting to close its planned acquisition of Energy Harbor. Vistra announced back in March its plans to boost its zero-carbon generation portfolio via the purchase of Energy Harbor, including its 4,000-megawatt nuclear generation fleet and retail business of roughly 1 million customers.
Vistra shares have climbed by 114% in the past three years vs. the Zacks Utilities sector’s 5% drop. This run includes a 62% surge in 2023 that’s seen it post fresh highs along the way. Despite the climb, it still trades below its average Zacks price target. On top of that, Vistra trades at a 40% discount to the Zacks Utilities sector at 8.1X forward 12-month earnings despite its huge outperformance. Plus, its PEG ratio, which factors in long-term EPS growth, sits at 0.13 vs. its industry’s 1.9.
Image Source: Zacks Investment Research
VST’s revenue is projected to soar 47% this year and another 11% next year. Better yet, Vistra is projected to swing from an adjusted loss of -$2.94 a share to +$3.79 per share this year and then surge another 23% next year. Vistra’s upbeat earnings outlook helps it grab a Zacks Rank #2 (Buy) right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Vistra Corp. (VST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
By Sam Tobin
LONDON, Dec 21 (Reuters) - A teenage member of the Lapsus$ hacking group was on Thursday sentenced to indefinite detention in hospital for hacking Uber UBER.N and fintech firm Revolut, and for blackmailing the developers of best-selling video game "Grand Theft Auto".
Arion Kurtaj, 18, embarked on a solo cybercrime spree in September 2022 while on police bail for earlier offences.
He targeted Revolut, accessing around 5,000 Revolut customers' information, and then Uber two days later, causing nearly $3 million of damage to Uber, prosecutors said.
Kurtaj then hacked Rockstar Games and threatened to release the source code for the company's planned "Grand Theft Auto" sequel in a Slack message to all Rockstar staff.
Jurors at London's Southwark Crown Court were played clips of the latest upcoming installment of "Grand Theft Auto", which Kurtaj had hacked and uploaded to an online gaming forum.
Kurtaj, who has autism, was assessed by psychiatrists as not fit to stand trial, so the jury was asked to find whether he had committed the acts rather than deliver a verdict of guilty.
He had previously hacked and blackmailed Britain's biggest broadband provider BT Group BT.L and mobile operator EE in 2021, demanding a $4 million ransom.
Kurtaj also hacked chipmaker Nvidia NVDA.O in February 2022, taking around one terabyte of data, releasing about 80 gigabytes and threatening to publish the rest.
'DETERMINED'
Kurtaj and a 17-year-old, who cannot be named for legal reasons and whose case was heard alongside Kurtaj's, were "key players" in Lapsus$, prosecutors said.
A jury in August found Kurtaj committed 12 offences, including three counts of blackmail, two counts of fraud and six charges under the Computer Misuse Act.
The 17-year-old was found guilty in August of one count of fraud, one count of blackmail and one count under the Computer Misuse Act relating to Nvidia.
He previously pleaded guilty to one count under the Computer Misuse Act and one count of fraud in relation to the BT hack. He had also admitted an offence relating to the hacking of the City of London Police's cloud storage, weeks after his 2022 arrest.
Judge Patricia Lees said on Thursday that Kurtaj remained "determined to commit further serious offences if the opportunity arose" and sentenced him to indefinite detention.
The 17-year-old was sentenced to a youth rehabilitation order with 18 months supervision.
Detective Chief Superintendent Amanda Horsburgh, from City of London Police, said the case "serves as an example of the dangers that young people can be drawn towards whilst online".
(Reporting by Sam Tobin; editing by Jonathan Oatis)
((Sam.Tobin@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.
|
2023-12-16
|
ARTLW
|
Shares of Universal Health Services, Inc. UHS have gained 16.6% in the past three months compared with the industry’s 7.5% growth. The Medical sector and the S&P 500 composite index have gained 1.1% and 9.9%, respectively, in the same time frame. With a market capitalization of $10.1 billion, the average volume of shares traded in the last three months was 0.5 million.
Improved patient volumes, an expansive care network and a commendable financial position continue to drive Universal Health.
The leading U.S. healthcare services provider with a current Zacks Rank #3 (Hold) boasts an impressive track record of beating estimates in each of the trailing four quarters, the average surprise being 5.47%.
Image Source: Zacks Investment Research
Can UHS Retain the Momentum?
The Zacks Consensus Estimate for Universal Health’s 2023 earnings is pegged at $10.34 per share, indicating a 4.7% increase from the year-ago reported figure. The consensus mark for revenues is $14.2 billion, suggesting 6.2% growth from the year-ago number.
The Zacks Consensus Estimate for 2024 earnings is pegged at $11.74 per share, which implies a 13.5% improvement from the 2023 estimate. The consensus mark for revenues is $14.9 billion, suggesting 4.4% growth from the 2023 estimate.
Growing patient volumes and higher patient days continue to aid the performance of Acute Care Hospital Services and Behavioral Health Care Services segments, which in turn, contributes to the overall revenue growth of Universal Health. Management anticipates net revenues to be between $14.130-$14.330 billion in 2023, the midpoint of which indicates a 6.2% rise from the 2022 reported figure.
The continued incidence of mental health issues among Americans is expected to sustain the solid demand for UHS’s behavioral health hospitals in the days ahead. The resumption of elective procedures, which had been earlier delayed to treat a humongous COVID-patient base, may fetch higher revenues for the surgery centers of Universal Health.
As a means to boost the operating revenues and profitability of its owned hospitals, Universal Health launches services, upgrades existing ones, recruits able physicians as well as exerts financial and operational controls.
The healthcare services provider pursues a strategy of purchasing, constructing or leasing hospital facilities, which in turn, enables it to foray into new markets, enhance healthcare delivery capabilities and diversify its treatment network. In the first nine months of 2023, UHS spent $3.7 million on the acquisition of businesses and property.
Universal Health’s healthcare portfolio comprised 358 inpatient facilities and 43 outpatient and other facilities stretched throughout 39 states, Washington, D.C., the UK and Puerto Rico as of Sep 30, 2023.
A solid financial standing is of dire need to pursue business investments and that’s exactly the case with Universal Health. A sound cash balance and robust cash-generating abilities are a testament to UHS’s financial strength. It generated operating cash flows of $815.4 million in the first nine months of 2023, which improved 16.7% year over year. It also distributes capital to shareholders through share repurchases and dividend payments.
Stocks to Consider
Some better-ranked stocks in the Medical space are Insulet Corporation PODD, DexCom, Inc. DXCM and Novo Nordisk A/S NVO. While Insulet currently sports a Zacks Rank #1 (Strong Buy), DexCom and Novo Nordisk carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Insulet’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 105.14%. The Zacks Consensus Estimate for PODD’s 2023 earnings is pegged at $1.91 per share, which indicates a more than 27-fold increase from the year-ago reported figure. The consensus mark for revenues indicates growth of 25.9% from the year-ago reported figure.
The Zacks Consensus Estimate for PODD’s 2023 earnings has moved 0.5% north in the past 30 days. Shares of Insulet have gained 33.6% in the past three months.
The bottom line of DexCom outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 36.43%. The Zacks Consensus Estimate for DXCM’s 2023 earnings implies a rise of 65.5% from the year-ago figure. The consensus mark for revenues indicates growth of 23.5% from the year-ago reported figure.
The Zacks Consensus Estimate for DXCM’s 2023 earnings has moved 5.5% north in the past 60 days. Shares of DexCom have gained 33.3% in the past three months.
Novo Nordisk’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, matched the mark once and missed the same in the remaining one occassion, the average surprise being 0.58%. The consensus estimate for NVO’s 2023 earnings indicates a rise of 51.5% from the year-ago figure. The consensus mark for revenues suggests an improvement of 31.5% from the year-ago reported figure.
The Zacks Consensus Estimate for NVO’s 2023 earnings has moved 0.4% north in the past seven days. Shares of Novo Nordisk have gained 10.9% in the past three months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : 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.
|
2023-12-16
|
ARTLW
|
Adobe ADBE frees up its resources after shelving the $20 billion acquisition of Figma, which was announced in September 2022.
Mounting pressure from regulators in the United Kingdom and the European Union, leaving no surety for antitrust approvals, convinced Adobe and Figma to terminate the merger mutually.
Regulators were concerned about Adobe’s monopoly. They were also of the view that Figma, a provider of a web-first collaborative design platform, will be able to add to the innovation of its fast-growing platform if it is allowed to flourish independently.
Per the regulators, Adobe was asked to make a significant divestment of assets, source code and engineers to sustain the competitive nature of the market.
Adobe Inc. Price and Consensus
Adobe Inc. price-consensus-chart | Adobe Inc. Quote
Adobe to Prosper
The latest move is expected to be beneficial for Adobe.
Thanks to the termination of the Figma merger, Adobe now has $6 billion in cash, which gives the tech giant room for more buybacks. Increasing share repurchases will drive growth in the company’s bottom line. This, in turn, is making the investors optimistic about the stock.
ADBE will be able to inject more resources into its AI innovations, which in turn will likely strengthen its Creative Cloud platform.
Figma’s annual recurring revenue of $600 million accounted for a tiny portion of Adobe’s $12.4 billion of recurring revenue from Creative Cloud.
We note that Adobe’s growing investments in AI and generative AI innovations are expected to enhance its Creative offerings, which will likely expand its customer base in the future. This, in turn, has been aiding the company in winning investors’ confidence.
Adobe’s shares have gained 74.6% over a year, outperforming the Zacks Computer and Technology sector’s rally of 49.3% as well as the S&P 500 index’s gain of 25.6%.
The company is witnessing solid momentum with Adobe Firefly, a family of generative AI models, integrating natively across Adobe Creative Cloud, Adobe Express and Adobe Experience Cloud.
It recently unveiled the Adobe Firefly Image 2 Model, Adobe Firefly Vector Model and Adobe Firefly Design Model at Adobe MAX, offering new generative AI models for imaging, vector graphics and template design.
The factors above are likely to aid the financial performance of the company in the coming days.
For first-quarter fiscal 2024, Adobe projects total revenues between $5.10 billion and $5.15 billion. The Zacks Consensus Estimate for the same is pegged at $5.08 billion, indicating growth of 9.1% year over year.
Management expects non-GAAP earnings between $4.35 and $4.40 per share. The consensus mark for the same is pinned at $4.36 per share, reflecting growth of 14.7% from the year-ago actual. The figure was revised upward 2.8% in the past seven days.
For fiscal 2024, Adobe projects total revenues between $21.30 billion and $21.50 billion. The Zacks Consensus Estimate for the same is pegged at $21.41 billion, indicating growth of 10.3% from the fiscal year-ago reported figure.
Management expects non-GAAP earnings between $17.60 and $18.00 per share. The consensus mark for the same is pinned at $18.03 per share, indicating growth of 12.2% year over year. The figure was revised upward 0.95% in the past seven days.
Zacks Rank & Stocks to Consider
Currently, Adobe carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and NVIDIA NVDA. All three stocks carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Badger Meter have gained 37.8% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Shares of Arista Networks have surged 75.9% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.
Shares of NVIDIA have gained 167.4% in the year-to-date period. NVDA’s long-term earnings growth rate is currently projected at 13.5%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : 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.
|
2023-12-16
|
ARTLW
|
Carnival Corporation & plc CCL reported impressive fourth-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was backed by a solid demand environment courtesy of its ongoing advertising investments and lead generation efforts. Following the results, the company’s shares moved up 1% in the pre-market trading session.
Earnings & Revenues
In the quarter under review, the company reported an adjusted loss per share of 7 cents, narrower than the Zacks Consensus Estimate of a loss of 12 cents. In the year-ago quarter, the company reported an adjusted loss per share of 85 cents.
Revenues in the quarter totaled $5.4 million, beating the consensus mark of $5.3 billion. In the prior-year quarter, CCL reported revenues of $3.8 billion. Passenger ticket and onboard and other revenues were $3.5 billion and $1.9 billion, respectively.
Carnival Corporation Price, Consensus and EPS Surprise
Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote
Q4 Financials
During the fiscal fourth quarter, the company reported a GAAP net loss of $48 million compared with a loss of $1.6 billion reported in the prior-year quarter. Adjusted net loss in the quarter amounted to $90 million compared with $1.1 billion reported in the year-ago quarter.
Balance Sheet
As of Nov 30, 2023, cash and cash equivalents were $2.4 billion compared with $4 billion as of Nov 30, 2022. Carnival ended the quarter with liquidity of $5.4 billion. Total debt (current and long-term) as of Nov 30, 2023, was $30.6 billion compared with $34.5 billion as of Nov 30, 2022.
Adjusted EBITDA, as of Nov 30, 2023, came in at $946 million against $(96) million reported in the prior-year quarter.
Bookings Update
During the fiscal fourth quarter, the company reported solid bookings for the Europe segments. The company stated booking to be elevated above 2019 levels. The company stated that its fiscal 2024 cumulative advanced booked position exceeds the upper bound of the historical range and at higher pricing.
Total customer deposits as of Nov 30, 2023 were $6.4 billion compared with $6.3 billion reported in the previous quarter. The amount was higher than $5.1 billion reported on Nov 30, 2022.
2023 Highlights
Total revenues in fiscal 2023 came in at $21.6 billion compared with $12.2 billion reported in fiscal 2022.
Adjusted EBITDA in fiscal 2023 came in at $4.2 billion against $(1.7) billion reported in fiscal 2022.
In fiscal 2023, adjusted earnings per share (EPS) came in at breakeven against $(4.67) reported in the previous year.
2024 Outlook
For the first quarter of fiscal 2024, the company expects adjusted EBITDA to be approximately $0.8 billion. The company expects fiscal first-quarter adjusted net income to be nearly ($0.28) billion. The company expects a fiscal first-quarter adjusted loss per share to be 22 cents.
For fiscal 2024, the company anticipates adjusted EBITDA to be approximately $5.6 billion. Adjusted net income during the year is anticipated to be nearly $1.2 billion. In the fiscal 2024, the company expects adjusted EPS to be nearly 93 cents.
Zacks Rank and Stocks to Consider
Currently, Carnival carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector include:
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 28.3%, on average. Shares of RCL have surged 132.3% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates a rise of 13.7% and 38.1%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. LYV flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 37.5%, on average. Shares of LYV have increased 28.2% in the past year.
The Zacks Consensus Estimate for LYV’s 2024 sales and EPS indicates a rise of 8.2% and 61.1%, respectively, from the year-ago period’s levels.
JAKKS Pacific, Inc. JAKK sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 61.8%, on average. Shares of JAKK have increased 115% in the past year.
The Zacks Consensus Estimate for JAKK’s 2024 sales indicates a rise of 3.6% from the year-ago period’s levels.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Carnival Corporation (CCL) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : 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.
|
2023-12-16
|
ARTLW
|
Updates with details, background in paragraphs 3-6
AMSTERDAM, Dec 21 (Reuters) - Dutch semiconductor equipment maker ASML ASML.AS said on Thursday it is shipping the first of its new "High NA" extreme ultraviolet lithography systems to Intel INTC.O Corp.
The new machines, which will cost more than $300 million each, are expected to help computer chip makers produce smaller, faster semiconductors.
ASML published an image of one segment of the machine departing from its headquarters in Veldhoven, Netherlands, in a protective case with a red ribbon tied around it, on the X social media platform.
"We're excited and proud to ship our first High NA EUV system to Intel," the statement said.
ASML dominates the market for lithography systems - machines that use lasers to help create the circuitry of chips. The High NA machines, which when assembled will be larger than a truck, are being shipped in 250 separate crates, including 13 large containers. They are expected to be used in commercial chip manufacturing starting in 2026 or 2027.
Intel ordered the first of the High NA pilot machines in 2022. Other chip manufacturers that have ordered the machines include TSMC 2330.TW, Samsung 005930.KS, SK Hynix 000660.KS and Micron MU.O.
ASML told reporters on Nov. 30 the company expected to ship the first of the pilot tools before the end of the year.
(Reporting by Toby Sterling; Editing by Kirsten Donovan)
((toby.sterling@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.
|
2023-12-16
|
ARTLW
|
Physicians Realty Trust announced today that the Company's Board of Trustees has authorized, and the Company has declared, a quarterly cash dividend of $0.23 per common share and unit for the quarter ending December 31, 2023. "We are proud to declare and pay our 42nd consecutive quarterly dividend. Our outpatient medical facilities continue to perform as expected, and we look forward to continued focus on operational excellence and cash flow growth. We are excited about our pending merger to join Healthpeak Properties and look forward to continued growth, success, and the creation of sustainable value as a combined company," said John T. Thomas, the Company's President and Chief Executive Officer. The dividend will be payable on January 18, 2024, to common shareholders and unit holders of record on January 3, 2024.
VSEC, a leading provider of aftermarket distribution and repair services, announced that the Company's Board of Directors has declared a regular quarterly cash dividend of $0.10 per share of VSEC common stock. The dividend is payable on February 8, 2024, to stockholders of record at the close of business on January 25, 2024.
The Board of Directors of FirstEnergy today declared a quarterly dividend of $0.41 per share of outstanding common stock payable March 1, 2024, to shareholders of record at the close of business on February 7, 2024.
DENTSPLY SIRONA announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share of common stock, an indicated annual rate of $0.56 per share. The dividend is payable on January 12, 2024, to holders of record as of December 29, 2023.
CVB Financial announced a twenty cent per share cash dividend with respect to the fourth quarter of 2023. This dividend was approved at the Company's regularly scheduled Board of Directors meeting held on December 20, 2023. The quarterly dividend will be payable on or about January 22, 2024 to shareholders of record as of January 5, 2024. "We are pleased to announce our 137th consecutive quarterly cash dividend paid to our shareholders," said David A. Brager, President and Chief Executive Officer.
VIDEO: Daily Dividend Report: DOC,VSEC,FE,XRAY,CVBF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
The iShares MSCI Emerging Markets Asia ETF is seeing unusually high volume in afternoon trading Thursday, with over 423,000 shares traded versus three month average volume of about 48,000. Shares of EEMA were up about 1.9% on the day.
Components of that ETF with the highest volume on Thursday were NIO, trading up about 2.3% with over 30.1 million shares changing hands so far this session, and Pdd Holdings, off about 0.5% on volume of over 3.1 million shares. Daqo New Energy is the component faring the best Thursday, higher by about 7.9% on the day, while Kanzhun is lagging other components of the iShares MSCI Emerging Markets Asia ETF, trading lower by about 0.7%.
VIDEO: Thursday's ETF with Unusual Volume: EEMA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
By Savyata Mishra and Deborah Mary Sophia
Dec 21 (Reuters) - Global retailers selling apparel, household staples and white goods face bigger risks from disruptions in freight movement through the key Suez Canal trade route as Iran-backed Yemeni militants attack ships sailing through the lower Red Sea.
Some shipping companies are already considering longer voyages, including around the Horn of Africa, due to the attacks by the Houthi militant group, potentially leading to longer wait times as well as higher prices for goods.
S&P Global identified sectors such as consumer goods, apparel and chemicals to bear the biggest brunt from the disruptions in shipping routes between Europe, the Middle East and Asia.
The Suez Canal is one of the most important conduits for world trade, accounting for about 12% of the world's maritime traffic. The biggest names in the retail world, including Walmart WMT.N, H&M Hennes & Mauritz HMb.ST and Target TGT.N, extensively use the canal to move goods from major manufacturing markets in Asia.
If there are extended disruptions, the consumer goods sector will face the biggest impact, S&P Global said in a report.
ImportGenius, a global trade database, said goods including clothing and accessories such as handbags, men's t-shirts and girls' dresses along with furniture, home decor and everyday items like toothbrushes, made up a majority of the goods transported via the key route so far in December.
William George, director of research at ImportGenius, said fast-fashion companies such as H&M and Zara-owner Inditex ITX.MC that import goods from Indian and other east Asian textile mills are also at a bigger risk.
Some companies already are trying to switch to so-called intermodal transport, said Jan Kleine-Lasthues, chief operating officer of airfreight at German freight forwarder Hellmann Worldwide Logistics.
Key retailers using the Suez route to import to U.S. https://tmsnrt.rs/3RRS9Wq
Type of goods shipped via the Suez route https://tmsnrt.rs/3NBsrTC
Countries of origin for US retail imports via the Suez Route https://tmsnrt.rs/48vKpyZ
(Reporting by Savyata Mishra, Deborah Sophia, Bhanvi Satija and Kate Masters; additional reporting by Arpan Varghese; Editing by Anil D'Silva)
((Savyata.Mishra@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.
|
2023-12-16
|
ARTLW
|
In trading on Thursday, cigarettes & tobacco shares were relative laggards, down on the day by about 1.7%. Helping drag down the group were shares of Ispire Technology, down about 13.9% and shares of Turning Point Brands down about 0.2% on the day.
Also lagging the market Thursday are insurance brokers shares, up on the day by about 0.1% as a group, led down by James River Group Holdings, trading lower by about 2.4% and United Fire Group, trading lower by about 1.4%.
VIDEO: Thursday Sector Laggards: Cigarettes & Tobacco, Insurance Brokers
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
In trading on Thursday, aerospace & defense shares were relative leaders, up on the day by about 3.2%. Leading the group were shares of Triumph Group, up about 29.3% and shares of Terran Orbital up about 16.2% on the day.
Also showing relative strength are diagnostics shares, up on the day by about 2.7% as a group, led by GeneDx Holdings, trading up by about 16.9% and Natera, trading up by about 5.5% on Thursday.
VIDEO: Thursday Sector Leaders: Aerospace & Defense, Diagnostics
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
The Zacks Mortgage & Related Services industry continues to be impeded by the cooling market, fears of a looming recession and high mortgage rates. Purchase market tightening and declining refinancing volumes have cast a shadow over the industry’s speedy recovery. Housing price appreciation and affordability issues are other near-term headwinds.
Amid the ongoing economic headwinds, mortgage service providers will need to be more agile. To navigate the deterioration in the mortgage market and improve operational efficiencies, companies have resorted to headcount reduction and technology adoption. Also, diversified business operations and encouraging scenarios for the servicing segment will help industry players like Federal Agricultural Mortgage AGM, LendingTree, Inc. TREE and Ocwen Financial OCN tide over choppy waters.
Industry Description
The Zacks Mortgage & Related Services industry comprises providers of mortgage-related loans, refinancing and other loan-servicing facilities. Numerous banks have been retreating from the mortgage business due to higher compliance and capital requirements. This allowed non-banks to increase their capacity to gain market share in the mortgage loans business, which accounts for the largest class of U.S. consumer debt. Players in the industry are dependent on the interest rates determined by the Federal Reserve, as prevailing rates influence customers' decisions to apply for mortgages. The companies also generate investment income from several financial assets, such as residential or commercial mortgage-backed securities and asset-backed securities. The firms make equity investments in mortgage-related entities, among others.
3 Mortgage & Related Services Industry Trends to Watch
High Mortgage Rates Keep Homebuyers on the Sidelines: The mortgage market dynamics have been challenged with the central bank having raised interest rates 11 times since March 2022, bringing it to a 22-year high of 5.25-5.50%. With this, the average rate on a 30-year mortgage climbed to 7.79% in late October to its highest level since late 2000. Nonetheless, with expectations of rate cuts in the next year, mortgage rates have eased in recent weeks but remain high. High rates and low home inventory have resulted in higher borrowing costs for home loans and a spike in home prices. This is affecting mortgage demand, both purchase and refinance. The downward trend will negatively impact top-line growth for industry participants.
Industry Players to Resort to Cost Controls: The mortgage industry continues to be labor-intensive while servicing operations have been a significant cost driver. With high mortgage rates, homeowners will be less keen on home purchases and refinancings. This will likely compel companies to reduce excess headcount capacity to cut costs and navigate a gloomy market. Moreover, the industry has lagged other sectors in adopting automation technology. Amid a tight labor market, technology adoption can be a competitive moat by offering notable efficiency improvements and cost savings.
Servicing Segment to Offer Support: With significant declines in gain-on-sale margins and lower loan origination volume, industry players are likely to increase their reliance on the service segment for profitability. In a high-rate environment, the servicing segment offers a natural operational hedge to the origination business. We expect slow prepayment speed to offer mortgage service rights (MSR) tailwinds. Hence, MSR investments are poised to deliver significant value appreciation and offer attractive unleveraged yields. Such MSR appreciation can drive the book value. With the U.S. single-family mortgage debt outstanding to reach $13.9 trillion by 2024 end, there are massive growth opportunities in the servicing portfolios.
Zacks Industry Rank Reflects Bleak Prospects
The Zacks Mortgage & Related Services industry, housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #152, which places it in the bottom 40% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates drab near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence in this group’s earnings growth potential. The industry’s bottom-line estimate has declined 31.6% from that reported in December 2022.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms Sector and the S&P 500
The Zacks Mortgage & Related Services industry has underperformed the broader Zacks Finance sector and the S&P 500 composite over the past year.
The industry has declined 17.5% in this period against the broader sector's growth of 16.2% and the S&P 500 composite’s rise of 25.4%.
One-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of the price-to-book ratio (P/B), which is commonly used for valuing mortgage and related services companies, the industry currently trades at 5.32X compared with the S&P 500's 6.05X.
Over the last five years, the industry has traded as high as 5.32X, as low as 0.78X and at the median of 1.72X, as the chart below shows.
Price-to-Book Ratio (TTM)
Image Source: Zacks Investment Research
As finance stocks typically have a lower P/B ratio, comparing mortgage and related services companies with the S&P 500 may not make sense to many investors. However, comparing the group's P/B ratio with that of its broader sector ensures that the group is trading at a premium. The Zacks Finance sector's trailing 12-month P/B of 3.36X for the same period is below the Zacks Mortgage & Related Services industry's ratio, as the chart shows below.
Price-to-Book Ratio (TTM)
Image Source: Zacks Investment Research
3 Mortgage & Related Services Stocks to Watch
Federal Agricultural Mortgage: The company, also known as Farmer Mac, is a federally chartered corporation that combines private capital and public sponsorship to create a secondary market for various loans made to rural borrowers.
The company’s business lines include agriculture finance (consisting of farm and ranch, and corporate AgFinance), rural infrastructure finance (consisting of rural utilities and renewable energy) and treasury (funding and investment).
The company is expected to enjoy strong pipelines and volumes in the upcoming years, given the expected rise in agricultural productivity to meet the global demand, a growing U.S. agriculture mortgage market and a significant scope of improvement in renewable electricity capacity. Moreover, the expanding corporate AgFinance and renewable energy business lines carry higher margins than other operations.
The Zacks Consensus Estimate for AGM’s 2023 and 2024 earnings has been unchanged over the past month. The Zacks Rank #1 (Strong Buy) company’s earnings for the ongoing year and 2024 are expected to rise 33.5% and 7.8% year over year, respectively. Revenues for 2023 and 2024 are expected to grow 11.5% and 8.2%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: AGM
Image Source: Zacks Investment Research
Ocwen Financial: The company is a preeminent non-bank mortgage servicer and originator that provides solutions through its primary brands — PHH Mortgage and Liberty Reverse Mortgage. Its balanced and diversified business model — diversified originations sources and servicing business — provides a competitive advantage against peers.
The company’s servicing financial performance is poised to benefit from high interest rates. Ocwen Financial has been driving expense reduction and taking right-sizing actions. Also, favorable demographics and home price appreciation are expected to drive continued growth in the reverse mortgage market.
The Zacks Consensus Estimate for OCN is pegged at $6.28 and $6.54 for 2023 and 2024 earnings. Earnings estimates have been unchanged over the past month. Also, for the ongoing and the next years, its revenues are expected to increase 10% and 4.5%, respectively. The company sports a Zacks Rank of 1 at present.
Price and Consensus: OCN
Image Source: Zacks Investment Research
LendingTree: The parent company of LendingTree, LLC, is headquartered in Charlotte, NC, and has been operating solely in the United States since July 1998. Its online marketplace provides clients with product offerings from more than 600 partners.
LendingTree is committed to boosting revenues by diversifying its non-mortgage product offerings, particularly in the Consumer segment. With the launch of the LendingTree WinCard in partnership with Upgrade in February 2023, the company provided its first branded consumer credit offering. Over the past years, TREE has increased its services, such as credit cards and widened loan offerings to personal, auto, small business and student loans.
Also, LendingTree’s market-leading position and flexible business model, which provides more diversified solutions for a wider array of lenders, will enable its Home segment operations to navigate through the fluctuating macroeconomic situations and high-interest-rate environment.
The Zacks Consensus Estimate for TREE’s 2023 and 2024 earnings has been unrevised over the past month. For the ongoing year, earnings are expected to surge 99% year over year. For 2024, earnings are projected to grow 10.6% on 6.7% revenue growth. The company carries a Zacks Rank of 3 (Hold) at present.
Price and Consensus: TREE
Image Source: Zacks Investment Research
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Federal Agricultural Mortgage Corporation (AGM) : Free Stock Analysis Report
Ocwen Financial Corporation (OCN) : Free Stock Analysis Report
LendingTree, Inc. (TREE) : 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.
|
2023-12-16
|
ARTLW
|
As is often the case, high interest weighed on the real estate sector this year. The S&P Select Real Estate Index is higher by 7.61% year to date, but that trails the S&P 500 by a wide margin.
Additionally, that gauge is higher by 10.48% over the past month -- a period in which chatter has escalated that the Federal Reserve could potentially pare interest rates multiple times next year. That scrutiny is warranted. But it doesn’t imply investors should ignore REITs and ETFs such as the WisdomTree New Economy Real Estate Fund (WTRE).
In fact, due to its unique approach to the real estate sector, WTRE could be one of the more attractive avenues for REIT access in 2024. The ETF follows the CenterSquare New Economy Real Estate Index. The fund is a refresh of a previous WisdomTree ETF and will turn two years old in February in current form.
Why Real Estate ETF WTRE Matters Today
As its name implies, WTRE focuses on REITs with exposure to new economy themes. Those include cell towers, data centers, healthcare REITs, industrial warehouses for e-commerce use and other tech-related properties.
That construction is relevant to investors for multiple reasons. First, it implies that WTRE offers exposure to the REIT segments with the strongest long-term growth prospects. Second, WTRE’s reduced dependence on traditional office REITs is advantageous at a time when some office buildings in select cities are struggling with subpar occupancy rates, thus weighing on shares of the REITs that own those properties.
Additionally, WTRE is levered to some favorable demographic trends by way of its exposure to healthcare REITs and investors don’t have to pay up on valuation to take advantage of those trends.
Take the case of Ventas (VTR), WTRE’s largest holding.
“We remain optimistic about the sector’s longer-term prospects, given that the industry has steadily recovered over the past two years, supply will likely remain below the historical average in the coming years, and the demographic boon will create a massive spike in demand for senior housing,” noted Morningstar analyst Kevin Brown. “We also like Ventas’ acquisition of New Senior Investment Group to expand its exposure to the sector ahead of what we believe will be a decade of strong growth.”
Another WTRE holding that Morningstar is bullish on is Healthpeak Properties (PEAK), which accounts for 3.17% of the ETF’s roster.
“Healthpeak has high-quality assets in top markets that attract credit-grade tenants in both segments, so we believe it makes sense to strategically focus the company on the segments where it has an advantage,” added Brown.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Urban Edge Properties (UE) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Urban Edge Properties basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Urban Edge Properties, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Urban Edge Properties
For the fiscal year ending December 2023, this real estate investment trust that owns and manages shopping centers is expected to earn $1.25 per share, which is a change of 3.3% from the year-ago reported number.
Analysts have been steadily raising their estimates for Urban Edge Properties. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.8%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Urban Edge Properties to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher 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 2023. 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
Urban Edge Properties (UE) : 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.
|
2023-12-16
|
ARTLW
|
Investors might want to bet on BrightSpire (BRSP), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Colony Credit is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Colony Credit imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Colony Credit
For the fiscal year ending December 2023, this real estate investment trust is expected to earn $1.04 per share, which is a change of 6.1% from the year-ago reported number.
Analysts have been steadily raising their estimates for Colony Credit. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.9%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Colony Credit to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher 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 2023. 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
BrightSpire Capital, Inc. (BRSP) : 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.
|
2023-12-16
|
ARTLW
|
Akili, Inc. (AKLI) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Akili, Inc. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Akili, Inc. rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Akili, Inc.
This company is expected to earn -$0.73 per share for the fiscal year ending December 2023, which represents a year-over-year change of 75.7%.
Analysts have been steadily raising their estimates for Akili, Inc. Over the past three months, the Zacks Consensus Estimate for the company has increased 18%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Akili, Inc. to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher 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 2023. 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
Akili, Inc. (AKLI) : 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.
|
2023-12-16
|
ARTLW
|
Nerdy Inc. (NRDY) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Nerdy Inc. basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Nerdy Inc. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Nerdy Inc.
For the fiscal year ending December 2023, this company is expected to earn -$0.48 per share, which is a change of -220% from the year-ago reported number.
Analysts have been steadily raising their estimates for Nerdy Inc. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.8%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Nerdy Inc. to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher 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 2023. 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
Nerdy Inc. (NRDY) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Kohl's (KSS). Shares have added about 17.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kohl's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Kohl's Beats Q3 Earnings Estimate, Sales Down
Kohl's posted third-quarter fiscal 2023 results, wherein the top and bottom lines declined year over year. However, earnings beat the Zacks Consensus Estimate.
Results reflect the strength of the company’s expense and gross margin management, together with the progress of its strategic plans. Solid growth in Sephora and newness in gifting and home aided the performance. Kohl’s also lowered its inventory during the quarter.
Management raised the lower end of its bottom-line guidance for fiscal 2023 despite pulling down the lower end of its net sales growth guidance.
Quarter in Detail
Kohl's posted earnings of 53 cents per share compared with 82 cents reported in the year-ago period. The bottom line came much ahead of the Zacks Consensus Estimate of 34 cents.
Total revenues came in at $4,054 million, down from the prior-year quarter’s level of $4,277 million. Net sales declined 5.2% year over year to $3,843 million. The Zacks Consensus Estimate for the top line was pegged at $4,103 million. Comparable sales decreased 5.5%. We had expected a comparable sales decline of 5%.
Kohl's gross margin expanded 158 basis points (bps) to 38.9% in the reported quarter. We had expected the gross margin to expand 50 bps to 37.8% in the quarter under review.
SG&A expenses escalated by 1.9% to $1,360 million. As a percentage of total revenues, SG&A expenses rose 235 bps to 33.5%. Our model suggested an SG&A expense increase of 3.1%, with the rate expanding 260 bps to 33.8%.
The company posted an operating income of $157 million, down from $200 million in the year-ago period. The operating income margin shriveled 82 bps to 3.9%.
Other Financial Details
Kohl’s ended the quarter with cash and cash equivalents of $190 million, long-term debt of $1,638 million and shareholders’ equity of $3,751 million. The company generated operating cash flow of $379 million in the first nine months of fiscal 2023. Management expects capital expenditures toward the lower end of the $600-$650 million band for the full year 2023 (including the expansion of its Sephora collaboration and store refresh actions).
On Nov 7, 2023, Kohl’s declared a quarterly cash dividend of 50 cents per share, payable on Dec 20, 2023, to shareholders of record as of Dec 6.
Guidance
Kohl’s expects net sales to decline 2.8-4% in fiscal 2023, which includes the impact of a 53rd week (of nearly 1%). Earlier, management projected a net sales decline of 2-4%. The operating margin is still likely to be about 4%. Earnings per share (EPS), excluding non-recurring charges, are envisioned in the band of $2.30-$2.70 compared with the $2.10-$2.70 band projected earlier. The company delivered an adjusted loss of 15 cents in fiscal 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -12.12% due to these changes.
VGM Scores
Currently, Kohl's has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Kohl's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Kohl's belongs to the Zacks Retail - Regional Department Stores industry. Another stock from the same industry, Macy's (M), has gained 33.6% over the past month. More than a month has passed since the company reported results for the quarter ended October 2023.
Macy's reported revenues of $4.86 billion in the last reported quarter, representing a year-over-year change of -7.1%. EPS of $0.21 for the same period compares with $0.52 a year ago.
Macy's is expected to post earnings of $1.97 per share for the current quarter, representing a year-over-year change of +4.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
Macy's has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Kohl's Corporation (KSS) : Free Stock Analysis Report
Macy's, Inc. (M) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Abercrombie & Fitch (ANF). Shares have added about 23.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Abercrombie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Abercrombie Tops on Q3 Earnings & Sales Estimates
Abercrombie has reported robust third-quarter fiscal 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate and improving year over year. Results have benefited from the exceptional performance at the Abercrombie brand and improvement in the Hollister brand.
The adjusted earnings of $1.83 per share in the fiscal third quarter improved significantly from the 1 cent reported in the prior-year quarter. Moreover, the bottom line surpassed the Zacks Consensus Estimate of $1.14 by a huge margin. The robust earnings performance can be attributed to strong top-line growth, coupled with improved gross and operating margins resulting from strong operating leverage. Higher average unit retail and reduced freight costs mainly aided margins.
Net sales of $1,056.4 million advanced 20% year over year and surpassed the Zacks Consensus Estimate of $978 million. Net sales grew 19% on a constant-currency basis. ANF’s comparable sales improved 16%. The top-line beat was led by substantial growth in the Abercrombie brand, along with momentum in Hollister.
Sales by Region and Brands
Sales were strong in the Americas, up 22% year over year to $867.6 million. Additionally, sales grew 14% to $158 million in the EMEA and advanced 13% to $30.9 million in the APAC. Brand-wise, net sales improved 11% year over year to $508.7 million at Hollister and advanced 30% to $547.7 million at Abercrombie. The Abercrombie brand contributed 52% to the total company sales, while Hollister represented 48% of sales.
Exceptional sales growth at Abercrombie was driven by consistent growth across genders, channels and geographies. This marked the highest fiscal third-quarter sales for the brand in the company’s history. Meanwhile, sales at Hollister benefited from a solid back-to-school season, and assortment and brand evolution amid teen customers. Growth in the Hollister brand was led by the women’s business.
Margins
Abercrombie’s gross margin expanded 570 basis points (bps) year over year to 64.9% in the quarter, driven by improved product acceptance and tight inventory management across brands. The gross margin expansion included a 200-bps gain from reduced freight costs, a 250-bps benefit from AUR growth and a 200-bps gain from lower inventory write-downs. This was partly negated by an 80-bps impact from higher raw material costs.
Operating expenses, excluding other operating losses, increased 8% year over year. Higher incentive-based compensation, inflation, marketing and technology expenses led to the increase. As a percentage of sales, operating expenses of 51.7% declined 560 bps from the prior-year quarter.
The company reported an operating income of $138 million compared with a reported operating income of $18 million and an adjusted operating income of $21 million in the year-ago period. The operating margin of 13.1% expanded 1,110 bps year over year, powered by gross margin expansion and operating expense leverage.
Other Financials
Abercrombie ended the fiscal third quarter with cash and cash equivalents of $649.5 million, long-term net borrowings of $248 million, and stockholders’ equity of $866.1 million, excluding non-controlling interests.
The company had a liquidity of $1 billion at the end of the fiscal third quarter, which included cash and equivalents, and borrowings available under the ABL Facility. Net cash provided by operating activities was $350 million as of Oct 28, 2023.
Outlook
Driven by the robust year-to-date performance and expectations of solid demand trends in the upcoming holiday season, the company raised its sales and operating margin guidance for fiscal 2023. Management envisions year-over-year net sales growth of 12-14% for fiscal 2023, up from prior stated 10% growth. Fiscal 2023 includes a 53rd week, which is estimated to benefit sales by $45 million.
Abercrombie expects an operating margin of 10%, an increase from the earlier stated 8-9%. The revised guidance suggests a year-over-year expansion of 250 bps, driven by reduced freight and raw material costs, and a modest operating expense leverage with sales growth. These gains are expected to more than offset higher expenses resulting from inflation and increased investment for the 2025 Always Forward Plan initiatives. ANF expects a capital expenditure of $160 million and a tax rate in the low 30% range for fiscal 2023. The tax rate replaces the previously mentioned low-to-mid 30% range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 27.24% due to these changes.
VGM Scores
At this time, Abercrombie has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Abercrombie has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Abercrombie belongs to the Zacks Retail - Apparel and Shoes industry. Another stock from the same industry, The Children's Place (PLCE), has gained 14% over the past month. More than a month has passed since the company reported results for the quarter ended October 2023.
The Children's Place reported revenues of $480.23 million in the last reported quarter, representing a year-over-year change of -5.7%. EPS of $3.22 for the same period compares with $3.33 a year ago.
For the current quarter, The Children's Place is expected to post earnings of $0.26 per share, indicating a change of +106.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +25.4% over the last 30 days.
The Children's Place has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
The Children's Place, Inc. (PLCE) : 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.
|
2023-12-16
|
ARTLW
|
Henry Schein, Inc. HSIC recently announced its plans to enter the upper- and lower-extremities specialty segment of the orthopedic market, aligned with its long-standing strategy of investing in high-growth market opportunities. In line with its plans, the company signed an agreement to acquire a majority interest in TriMed.
HSIC also entered into a strategic relationship with Extremity Medical LLC.
Transaction Details
The deal is subject to regulatory clearances and closing conditions. It is scheduled to close in the first quarter of 2024. Henry Schein anticipates that the deal will be neutral to non-GAAP profits per share in 2024 and accretive thereafter. The financial details were not provided.
Few Words on TriMed and Extremity Medical
Headquartered in Santa Clarita, CA, TriMed is a global developer of solutions for the orthopedic treatment of lower extremities (foot and ankle) and upper extremities (primarily hand and wrist).
Extremity Medical LLC is an advanced medical device company intended to develop new products for fusion, fixation, and motion preservation in the orthopedic treatment of the lower extremities and wrists
Strategic Efforts
Collaboration with the TriMed and Extremity teams will offer Henry Schein a platform to position itself as a prominent producer and supplier in the orthopedic market's Foot and Ankle, Hand and Wrist extremity sectors. Henry Schein believes that the skilled leadership team is well-positioned to benefit from the current integrated delivery network and ambulatory surgery center customers.
The strategic relationship will enable Extremity Medical to expand its reach, ultimately improving patient care and outcomes. Per management, entering the extremity segment with the complementary portfolios of TriMed and Extremity Medical will extend Henry Schein’s Brasseler Medical orthopedic cutting accessories and revision instrument solutions.
Image Source: Zacks Investment Research
Management also noted that upper and lower extremities are among the fastest-growing segments of orthopedics, representing a total addressable market of more than $5.5 billion. Through its strategic acquisitions, Henry Schein is confident that it will accelerate the reach of TriMed and Extremity on a global basis.
Industry Prospects
Per a report by Grand View Research, the global orthopedic devices market size was estimated at $72.9 billion in 2023 and is projected to witness a CAGR of 5.3% from 2024 to 2030. The market is driven by a high incidence of orthopedic disorders, such as a growing aging population, degenerative bone disease and an increasing instance of road accidents. The early onset of musculoskeletal disorders caused by sedentary routines and obesity is projected to fuel growth.
Expansion Through Acquisitions and Partnerships
Niche acquisitions and partnerships have consistently supported Henry Schein’s revenue growth. Its robust acquisition strategy helps it to pursue targets that provide access to additional product lines.
To accelerate the implementation of its 2022-2024 BOLD+1 Strategic Plan, the company invested $417 million in business acquisitions during the third quarter of 2023 and $668 million year to date. It also committed more than $1 billion in capital to announced acquisitions year to date.
In October 2023, Henry Schein completed the acquisition of Shield Healthcare. In August 2023, Henry Schein announced an agreement to acquire Shield, which will create an offering with more than $300 million in annual revenues that distributes medical supplies directly to patients in their homes across the United States.
Price Performance
In the past year, HSIC’s shares have dropped 8.9% against the industry’s rise of 9.2%.
Zacks Rank and Key Picks
Henry Schein currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. While Haemonetics and DexCom each carry a Zacks Rank #2 (Buy), Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ shares have increased 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 in 2023 and $4.07 to $4.11 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : 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.
|
2023-12-16
|
ARTLW
|
It has been a busy week for the biotech sector, with a lot of updates on collaborations, study read-outs and other news. Shares of Compugen CGEN soared following a deal with bigwig Gilead Sciences GILD. Moderna MRNA gained on study data.
Recap of the Week’s Most Important Stories:
Gilead Collaborates With Compugen: Gilead Sciences entered into an agreement with clinical-stage cancer immunotherapy company Compugen to license its pre-clinical immunotherapy program.
Per the terms of this license agreement, Compugen is responsible for the ongoing pre-clinical development and the future phase I study of immuno-oncology candidate COM503, following which Gilead will assume the rights to develop and commercialize COM503. The company will make an upfront payment of $60 million to Compugen. CGEN is also eligible for a milestone payment of $30 million subject to investigational new drug clearance of COM503, expected in 2024.
Compugen is entitled to an additional $758 million in future development, regulatory and commercial milestone payments, with a total deal value of $848 million, along with single-digit to low double-digit tiered royalties on worldwide net sales.
COM503 is a potential first-in-class, high-affinity antibody that blocks the interaction between IL-18 binding protein and IL-18, thereby releasing natural IL-18 in the tumor microenvironment and inhibiting cancer growth. The license agreement will reduce Gilead’s bottom line by approximately 3-5 cents.
Shares of Compugen surged 174% on the license news. The license agreement will reduce Gilead’s bottom line by approximately 3-5 cents.
bluebird Down on Capital: bluebird bio, Inc. BLUE shares tanked after it announced the pricing of the underwritten public offering of 83.3 million shares of its common stock at an offer price of $1.50 per share. The company has also granted the underwriters a 30-day option to purchase up to an additional 12.5 million shares of its common stock at the public offer price after deducting underwriting discounts and commissions.
bluebird expects to generate $125 million (gross proceeds) from the offering. bluebird intends to use the net proceeds of the offering to support the commercialization and manufacturing of its three approved gene therapies — Zynteglo, Skysona and Lyfgenia. The capital will also be used to fund working capital and other general corporate purposes.
bluebird’s cash, cash equivalents, marketable securities and restricted cash balance totaled approximately $227 million as of Sep 30, 2023. The company anticipates full-year 2023 net cash burn to be in the range of $270-$300 million. bluebird was expected to raise capital as it needs funds to commercialize its three approved therapies.
bluebird currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moderna Surges on Cancer Study Data: Moderna MRNA shares gained after it announced follow-up data from the phase II KEYNOTE-942 on its individualized neoantigen therapy (INT) candidate mRNA-4157/V940 in patients with resected high-risk melanoma (stage III/IV) following complete resection. The study evaluated the combination mRNA-4157 and Merck’s blockbuster immuno-oncology drug Keytruda in this patient population.
At a median planned follow-up of approximately three years, treatment with mRNA-4157/Keytruda combination reduced the risk of recurrence or death by 49% compared with those treated with Keytruda alone. Treatment with this combination also reduced the risk of developing distant metastasis or death by 62% compared with Keytruda alone.
Both companies had earlier reported that the KEYNOTE-942 study achieved its primary endpoint of recurrence-free survival. The above results demonstrate the significant benefit of combining mRNA-4157 with Keytruda over a longer period compared with Keytruda alone. Moderna’s share price likely rose on this encouraging update.
ARGX Down on Study Failure: argenx SE ARGX announced dismal top-line results from the ADDRESS study evaluating efgartigimod subcutaneous (SC) (efgartigimod alfa and hyaluronidase-qvfc) in adults with pemphigus vulgaris (PV) and pemphigus foliaceus (PF). The study results show the proportion of PV patients achieving the primary endpoint of complete remission on a minimal dose of steroids was not significantly different between efgartigimod SC and placebo. Shares tanked on the results.
Consequently, argenx will not pursue additional development in pemphigus and plans to prioritize clinical development of efgartigimod in its ongoing severe autoimmune indications. argenx is also reviewing the BALLAD study considering the ADDRESS results and the comparable biology between pemphigus and bullous pemphigoid. The company has decided not to make a decision at this time but rather wait for learnings from all currently enrolled patients and consider a new trial design for the path forward.
Performance
The Nasdaq Biotechnology Index has lost 2.18% in the past five trading sessions. Among the biotech giants, Moderna has gained 9.66% during the period. Over the past six months, shares of Moderna have plunged 30.62%. (See the last biotech stock roundup here: Biotech Stock Roundup: BLUE, CRSP & VRTX Get Gene Therapy Nod, ACAD Up on Patent News).
Image Source: Zacks Investment Research
What's Next in Biotech?
Stay tuned for more pipeline updates.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
Compugen Ltd. (CGEN) : Free Stock Analysis Report
bluebird bio, Inc. (BLUE) : Free Stock Analysis Report
argenex SE (ARGX) : 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.
|
2023-12-16
|
ARTLW
|
Embraer ERJ has announced that it is doubling its maintenance service capacity in the United States to support continued growth of its executive jets' customer base through the addition of three Executive Aviation Maintenance, Repair and Overhaul facilities in Dallas Love Field, TX, Cleveland, OH and Sanford, FL. Maintenance service at these locations is set to begin in the second quarter of 2024.
Demand for Embraer Jets Rising
Courtesy of steadily increasing air travel worldwide, Embraer continues to witness a strong demand for its aircraft.
In the third quarter, the company delivered 43 jets, up 30.3% from the prior-year quarter’s level. In particular, Embraer is witnessing an increased demand for its E-jets, with E2 being the second generation of this jet family of commercial aircraft.
The company had nine E2 deliveries in the third quarter, reflecting a massive 800% improvement from the year-ago quarter’s level. Such strong jet deliveries must have enabled the company to register a solid revenue growth of 38% year over year.
Embraer is expected to end 2023 on a solid note, with its commercial jet deliveries projected in the band of 65-70 jets. Executive Aviation deliveries are expected in the band of 120-130 aircraft.
A significant volume of new orders for aircraft is coming from customers in the United States. An increase in service capacity will address the needs of its customers in the United States more promptly. As ERJ’s Executive Jets fleet has been growing rapidly over the last several years due to continued strong demand across the entire product portfolio, it will also increase the requirement for after-sales services, maintenance and repairs of these aircraft.
Opportunities in Aerospace
Per the report from Allied Market Research, the global commercial aircraft market is expected to witness a CAGR of 4.2% over the 2021-2030 period. This entails significant demand for commercial jets in the days ahead, which can positively impact the prospects of aircraft manufacturers.
Embraer is also benefiting from the revival of orders in commercial aerospace, with its backlog at the end of the third quarter rising to $17.8 billion from $17.3 billion at the end of the second quarter of 2023.
Such a solid backlog is a testament to the quality of aircraft produced by the company and the willingness of customers to wait for the desired aircraft. The rising backlog and eventual delivery of the same to clients result in significant revenue growth.
Other companies that are likely to benefit from the growing commercial aircraft market are Airbus SE EADSY, Textron TXT and Boeing BA.
Airbus is one of the forerunners in the commercial aircraft segment. Its order backlog amounted to 7,992 commercial aircraft at the end of September 2023.
Airbus’ long-term (three- to five-year) earnings growth rate is pegged at 12.4%. The Zacks Consensus Estimate for 2023 EPS reflects year-over-year growth of 8.5%.
Boeing has been the premier manufacturer of commercial jetliners for decades. Its backlog at the end of the third quarter was $469.18 billion, up from $439.56 billion recorded at the end of the second quarter of 2023.
Boeing’s long-term earnings growth rate is pinned at 4%. The Zacks Consensus Estimate for 2023 EPS reflects year-over-year growth of 45.8%.
Textron Aviation’s principal markets include general aviation aircraft, business jets and commercial transportation. The segment’s order backlog at the end of the quarter totaled $7.4 billion.
Textron boasts long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for 2023 EPS reflects year-over-year growth of 36.8%.
Price Movement
In the last six months, shares of Embraer have rallied 25.2% against the industry’s decline of 3.1%.
Image Source: Zacks Investment Research
Zacks Rank
Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
The Boeing Company (BA) : Free Stock Analysis Report
Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
Textron Inc. (TXT) : Free Stock Analysis Report
Airbus Group (EADSY) : 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.
|
2023-12-16
|
ARTLW
|
MillerKnoll, Inc. MLKN reported mixed second-quarter fiscal 2024 (ended Dec 2, 2023) results, with earnings surpassing Zacks Consensus Estimate and net sales missing the same.
Although the top line declined year over year, the bottom line increased. The upside was backed by strategic inventory management, improved gross margins and pricing initiatives.
Gross margins surpassed last year's levels in all three business segments. The positive outcome can be attributed to product and regional mix optimization, moderating input costs and ongoing benefits of acquisition-related synergies. These synergies include efficiency enhancements in operations and logistics. MLKN is diligently managing operating expenses to offset existing demand pressures.
Despite challenges posed by the elevated cost of capital and geopolitical concerns, MLKN's confidence rebounded with increased project activity, improved orders and strong seasonal demand in the Retail segment. The company is confident in diversification, international expansion, technological investments, streamlined processes and innovation.
Quarter in Detail
MillerKnoll reported adjusted earnings of 59 cents per share, beating the Zacks Consensus Estimate of adjusted earnings of 52 cents per share by 13.5%. Also, the bottom line increased 28.3% from 46 cents per share reported a year ago.
MillerKnoll, Inc. Price, Consensus and EPS Surprise
MillerKnoll, Inc. price-consensus-eps-surprise-chart | MillerKnoll, Inc. Quote
Net sales of $949.5 million missed the consensus mark of $959.2 million by 1%. The metric also declined 11% from the prior-year quarter’s levels of $1,066.9 million.
Organically, sales were down 10.1% year over year. The downside was due to a lower beginning backlog, partially offset by faster fulfillment patterns.
Orders in the quarter amounted to $944 million, down 6.8% on a reported basis and a 6% organic decline from the prior year’s levels. Although the full-quarter order intake was lower year over year, it showed sequential improvement as the period progressed.
Operating Highlights
In the fiscal second quarter, the gross margin increased 470 basis points (bps) from the prior-year quarter’s levels to 39.2%. The upside was primarily driven by strategic inventory management, moderating input costs, the implementation of price optimization strategies and ongoing synergy efforts. The adjusted gross margin has expanded for the fourth consecutive quarter.
The consolidated adjusted operating expenses declined 2.3% year over year to $296.9 million, primarily driven by the continued focus on cost optimization and synergy capture.
The adjusted consolidated operating margin expanded 190 bps year over year to 7.9% in the quarter, marking the highest level since the acquisition of Knoll, Inc.
Segment Details
Americas Contract: Net sales declined 10.1% as reported and 10.3% organically from the prior-year quarter’s levels to $476.1 million.
New orders in the quarter amounted to $437.4 million, down 7.7% year over year on a reported basis and 8.1% organically.
The segment's gross margin expanded 380 bps year over year to 33.8%.
Adjusted operating margin expanded 130 bps year over year to 9.4%. The upside can be attributed to positive price/cost dynamics and benefits from synergy capture. These factors contributed to the overall resilience and operational success of the segment.
International Contract and Specialty: Net sales declined 8.9% as reported and 10.4% organically from the prior-year quarter’s levels to $241.2 million.
New orders amounted to $233.9 million, down 3.2% year over year on a reported basis and 5.1% on an organic basis.
The segment's gross margin expanded 280 bps year over year to 43.9%.
Adjusted operating margin contracted 80 bps year over year to 11.3%.
Global Retail: Net sales declined 14.7% as reported and 9.4% organically from the prior-year quarter’s levels to $232.2 million due to softened housing-related demand.
New orders amounted to $272.7 million, down 8.4% year over year on a reported basis and 3.0% organically.
The segment's gross margin expanded 850 bps year over year to 45.2%.
Adjusted operating margin expanded 570 bps year over year to 7.1%. The upside was backed by strategic inventory and shipping management, favorable product mix and effective discretionary promotional activity. These initiatives directed demand toward the company's highest-margin brands and collections.
Financials
As of Dec 2, 2023, the company had $583.1 million in liquidity. It had $225.8 million of cash and equivalents at second-quarter fiscal 2024 end, up from $223.5 million at the fiscal 2023 end.
Long-term debt was $1,278.2 million, down from $1,365.1 million from fiscal 2023-end.
During the second quarter, MLKN generated $82.4 million in cash flow from operations and reduced total outstanding debt by $18.9 million. The company repurchased approximately 1.4 million shares, with a total cash outlay of $27.9 million.
Q3 and Fiscal 2024 Guidance
For third-quarter fiscal 2024, the company expects net sales in the range of $890 to $930 million, compared with $984.7 million reported in the prior year quarter. Gross margin is expected between 37.8%-38.8% for the quarter.
Operating expenses are expected to be between $285 million and $295 million. Interest and other expenses, net, are expected to be in the range of $15.5-$16.5 million.
The company expects diluted adjusted earnings per share to be in the range of 40-48 cents for the quarter, compared with 54 cents per share reported in the prior year quarter.
The company raised its fiscal 2024 adjusted earnings guidance. It expects adjusted earnings to be in the range of $2.00-$2.16 per share compared with the prior expectation of $1.85-$2.15 per share and $1.85 per share reported in the fiscal 2023.
Zacks Rank & Key Picks
MillerKnoll currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector:
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. RCL’s shares have surged 144.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates a rise of 57.7% and 187.9%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. LYV flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have increased 28.5% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 29.5% and 132.8%, respectively, from the year-ago period’s levels.
Stride, Inc. LRN carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have increased 85.2% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 9.1% and 34.7%, respectively, from the year-ago period’s levels.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Stride, Inc. (LRN) : Free Stock Analysis Report
MillerKnoll, Inc. (MLKN) : 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.
|
2023-12-16
|
ARTLW
|
AECOM ACM received an Intelligent Automation framework contract from the National Health Service Shared Business Services.
Per the agreement, AECOM’s digital consulting services and digital solutions will help clients accelerate their digital journeys and achieve better project outcomes. ACM will provide a range of specialized digital services, including consulting and advisory, technology implementation services related to Intelligent Automation adoption, data analytics and business intelligence and resource planning, organization design services and licensing.
The deal will support the adoption, implementation and ongoing development of Intelligent Automation to increase efficiency, reduce costs and risks and improve customer and patient experience.
AECOM has been appointed to Lot 1 of the framework, which covers Intelligent Automation services. Lot 1 is designed to provide expertise and specialist support to help organizations set up and implement in-house Intelligent Automation services.
Colin Wood, chief executive of AECOM’s Europe & India region, stated, “Intelligent Automation has huge potential to bring wide-ranging efficiencies to public services in the UK. Our industry-leading Digital AECOM practitioners look forward to supporting the varied clients on this framework in adopting and implementing this emerging technology to improve business operations and services for their customers.”
The stock lost 2.26% in the day trading session on Dec 20, 2023.
Impressive Higher-Margin, Lower-Risk Professional Services Firm
AECOM is a leading solutions provider, supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and environmental, energy and water businesses.
Demand for ACM’s technical, advisory and program management capabilities is increasing on the back of an improving funding environment, highlighted by the recent passing of the federal infrastructure bill in the United States and rising demand for ESG-related services.
Image Source: Zacks Investment Research
In the past three months, shares of the company have gained 11.8% compared with the Zacks Engineering - R and D Services industry’s 10.9% growth.
AECOM’s fourth-quarter fiscal 2023 earnings increased 13.5% on a year-over-year basis. Revenues also improved 12% from the prior year. Adjusted net service revenues (NSR) — defined as revenues excluding subcontractor and other direct costs — increased 8%. The design business contributed 90% to the total NSR and recorded year-over-year growth of 8%. Adjusted EBITDA also rose 10% year over year.
As of the fiscal fourth-quarter end, the total backlog came in at $41.17 billion compared with $40.18 billion reported in the prior year. The current backlog level includes 54.8% contracted backlog growth. A record-high 12.7% growth in the design business backlog (on a constant currency basis) reflects solid quarterly wins and a pipeline of opportunities.
For fiscal 2024, the company anticipates generating 8-10% organic NSR growth.
Zacks Rank & Other Key Picks
AECOM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks that warrant a look in the same industry are:
Gates Industrial Corporation plc GTES manufactures engineered power transmission and fluid power solutions. GTES currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GTES’ expected earnings growth rate for 2023 is 10.5%.
M-tron Industries, Inc. MPTI currently flaunts a Zacks Rank #1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average.
The Zacks Consensus Estimate for MPTI’s 2023 sales and EPS indicates growth of 30.6% and 156.7%, respectively, from the previous year.
Willdan Group, Inc. WLDN is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry.
WLDN presently sports a Zacks Rank #1. Its expected earnings growth rate for 2023 is 47.7%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
AECOM (ACM) : Free Stock Analysis Report
Willdan Group, Inc. (WLDN) : Free Stock Analysis Report
Gates Industrial Corporation PLC (GTES) : Free Stock Analysis Report
M-tron Industries, Inc. (MPTI) : 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.
|
2023-12-16
|
ARTLW
|
Nice's NICE latest CXone Fall Release for 2023 brings remarkable enhancements, notably in AI and automation, within their interaction-centric platform.
The update introduces fully-automated AutoSummary capabilities, leveraging generative AI for objective summaries across voice and digital interactions.
Offering expanded cloud storage options, including Microsoft Azure alongside AWS, showcases NICE's commitment to flexibility and seamless integration.
The improved CXone dashboard further enhances usability and insights. This release solidifies NICE's position as an industry leader, empowering organizations to thrive in the AI digital landscape.
Nice Price and Consensus
Nice price-consensus-chart | Nice Quote
NICE’s Strong Portfolio Makes Prospect Bright
NICE is benefiting from an expanding clientele, driven by the strong adoption of its platform solutions. These include Actimize, Evidencentral, CXone, Inform Elite, Robotic Process Automation and Investigate.
The effectiveness of NICE's CXone is exemplified by its impact on Europcar Mobility Group, where it played a pivotal role in streamlining global customer service operations. This resulted in increased consistency, improved agent, and customer experiences and a notable 10% reduction in interservice transfers through IVR optimization.
NICE recently enhanced Club Med's operations in Europe, boosting agent performance and satisfaction with expanded CXone features while globally improving customer interactions and insights using AI-based routing, CXone Workforce Management and Interaction Analytics.
Moreover, limango, a German online retailer, selected CXone to seamlessly transition its contact center to the cloud, showcasing a commitment to enhanced customer service standards and operational efficiency within the Otto Group.
NICE is gaining significant traction in customer interactions and the acquisition of LiveVox aims to create a unified platform for digital and AI-driven customer interactions, paving the way for further growth.
2023 Guidance Positive
A robust portfolio and expanding clientele are expected to drive NICE's top-line growth.
For 2023, NICE anticipates total revenues between $2.350 billion and $2.379 billion, indicating 9% growth at the midpoint. The Zacks Consensus Estimate for revenues is pegged at $2.37 billion, indicating 8.58% growth year over year.
The Zacks Consensus Estimate for earnings is pegged at $2.26 per share, up by a penny in the past 30 days, indicating an 8.31% year-over-year increase.
Zacks Rank & Stocks to Consider
Currently, NICE carries a Zacks Rank #3 (Hold).
NICE’s shares have moved up 3% year to date compared with the Zacks Computer & Technology sector’s rally of 51.5%.
Flex FLEX, NetEase NTES and Vertiv VRT are other top-ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FLEX, NTES and VRT shares have returned 37.9%, 40.5% and 245.9%, respectively, on a year-to-date basis.
Long-term earnings growth rates for Flex, NetEase and Vertiv are pegged at 12.39%,15.98% and 53.86%, respectively.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Flex Ltd. (FLEX) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Nice (NICE) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : 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.
|
2023-12-16
|
ARTLW
|
A month has gone by since the last earnings report for Lowe's (LOW). Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lowe's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Lowe's Q3 Earnings Beat Estimates, Sales Fall Y/Y
Lowe’s posted mixed results in third-quarter fiscal 2023, with the top line missing the Zacks Consensus Estimate while the bottom line beat the same. However, both sales and earnings fell from the previous fiscal year’s quarterly readings.
Quarter in Detail
Adjusted earnings per share (EPS) of $3.06 surpassed the Zacks Consensus Estimate of earnings of $3.05 per share but dipped 6.4% from the third-quarter fiscal 2022 tally.
Net sales of $20,471 million decreased 12.8% year over year and came below the consensus estimate of $20,974 million. Comparable sales (comps) fell 7.4% in the quarter under review, driven by lower DIY discretionary spending, partly offset by Pro customer comps. We had projected a comps decline of 4% for the quarter under discussion.
Gross profit slipped 11.9% year over year to $6,891 million, while the gross margin increased 36 basis points (bps) to 33.7%. We had expected a gross margin expansion of 10 bps year over year. Operating income amounted to $2,696 million, up from $924 million recorded in the year-earlier quarter. Also, the operating margin expanded to 13.2% from the year-earlier quarter’s reported figure of 3.9%.
Other Financial Aspects & Developments
LOW ended the quarter with cash and cash equivalents of $1,210 million, long-term debt (excluding current maturities) of $35,374 million and shareholders’ deficit of $15,147 million.
Lowe’s generated cash flow from operations of $7,032 million for the nine months of fiscal 2023. Capital expenditures amounted to $1,344 million for the aforementioned period. For fiscal 2023, LOW expects a capex of up to $2 billion.
In the reported quarter, Lowe’s bought back 7.3 million shares for $1.6 billion and paid out dividends of $642 million.
Outlook
For fiscal 2023, management revised the outlook on weaker-than-expected DIY sales. LOW now projects revenues of $86 billion versus $87-$89 million expected earlier and $97.1 billion delivered in fiscal 2022.
Comparable sales in fiscal 2023 are envisioned to be down 5% year over year versus the previous guided range of -2% to -4%. The adjusted operating margin is expected to be 13.3% compared with the earlier prediction of 13.4-13.6%. Management anticipates EPS of $13.00 versus the earlier forecast of $13.20-$13.60 for the fiscal year and $13.89 per share earned in fiscal 2022. It envisions an adjusted effective tax rate of about 25%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -12.2% due to these changes.
VGM Scores
At this time, Lowe's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Lowe's has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Lowe's belongs to the Zacks Building Products - Retail industry. Another stock from the same industry, Home Depot (HD), has gained 12.8% over the past month. More than a month has passed since the company reported results for the quarter ended October 2023.
Home Depot reported revenues of $37.71 billion in the last reported quarter, representing a year-over-year change of -3%. EPS of $3.81 for the same period compares with $4.24 a year ago.
For the current quarter, Home Depot is expected to post earnings of $2.75 per share, indicating a change of -16.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
Home Depot has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : 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.
|
2023-12-16
|
ARTLW
|
The construction sector is set for a promising 2024, buoyed by improvements in the residential market backdrop and the U.S. administration's emphasis on infrastructure development.
Per the National Association for Home Builders (NAHB), recent macroeconomic indicators suggest favorable conditions for home construction. Simultaneously, heightened infrastructure investment, a dedicated emphasis on digital initiatives, and the push for renewable energy present the broader construction sector with the potential for additional momentum in 2024.
Insights Into 2024 Sector Prospects
Interest rates have retreated in the past few weeks, in line with market expectations of a dovish Federal Reserve announcement in December. The Federal Reserve not only maintained its pause on the federal funds rate, last raised in July, but also disclosed its projection of three anticipated rate cuts for 2024.
These events elicited a favorable response from long-term interest rates. The 10-year Treasury bond is now hovering around a 3.9% rate, while mortgage rates have dipped below 7% for the first time since mid-August. Additionally, inflation seems to be trending positively, with the Consumer Price Index showing growth of 3.1% in November.
Amidst the rising tide of positive macroeconomic developments, builder sentiment has taken a positive turn. Although it remains more subdued than the current market conditions, the NAHB/Wells Fargo Housing Market Index saw a three-point increase in December, reaching a level of 37. The NAHB anticipates ongoing improvements in the near future.
Simultaneously, the progress and implementation of technological solutions throughout the comprehensive range of decarbonization initiatives, encompassing all aspects of infrastructure for delivering carbon-free energy solutions, have been advantageous for companies within the construction sector. These industry players are anticipated to gain from robust global trends in infrastructure modernization, the transition to clean energy, national security considerations, and a potential super-cycle in global supply-chain investments.
With the Zacks Construction sector registering a notable 47.2% gain over the past year, we expect the momentum to continue in 2024, given the above-mentioned tailwinds. Notably, the broader sector has outperformed the 23.6% rise registered by the Zacks S&P 500 Composite over the same period.
Given these optimistic trends, let's explore some construction stocks that analysts believe will experience a surge in 2024. The importance of this increased attention from analysts is evident in the wealth of valuable data it provides to investors. Analysts have access to crucial information that plays a pivotal role in guiding well-informed investment decisions.
5 Construction Stocks Worth Considering
We have shortlisted five construction stocks with the help of the Zacks Stock Screener that currently has a Zacks Rank #1 (Strong Buy) or 2 (Buy). More than 70% of brokers recommend these stocks as a strong buy or moderate buy. Our research shows such stocks offer good investment opportunities. The Zacks Rank is a reliable tool that helps you trade confidently regardless of your trading style and risk tolerance. To learn more about how to use this proven system for market-beating gains, visit Zacks Rank Education.
With the help of Zacks Stock Screener, we have zeroed in on five construction stocks — EMCOR Group, Inc. EME, Sterling Infrastructure, Inc. STRL, Gibraltar Industries, Inc. ROCK, Martin Marietta Materials, Inc. MLM and AECOM ACM— which look promising based on the above criteria.
Image Source: Zacks Investment Research
The suggested stocks might have showed tepid share price performance over the past year due to the macroeconomic challenges but have solid prospects and are expected to perform well in 2024.
EMCOR: Headquartered in Norwalk, CT, this heavy construction company provides electrical and mechanical construction and facilities services in the United States. EMCOR has been benefiting from solid execution in the U.S. Construction segment — comprising the U.S. Mechanical and Electrical Construction units — as well as disciplined cost control. Also, accretive buyouts have been strengthening its overall results by adding new markets, opportunities and capabilities.
EME, currently carrying a Zacks Rank #1, has gained 44% over the past year. The 2024 earnings per share (EPS) estimate has increased to $12.56 from $11.66 over the past 60 days. Earnings for 2024 are expected to grow 1.5%. It currently holds a VGM Score of A. This helps to identify stocks with the most attractive value, growth and momentum. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sterling Infrastructure: This company operates through subsidiaries within segments specializing in E-Infrastructure, Building and Transportation Solutions, which aid in developing large-scale site development systems and services projects, residential and commercial concrete foundation projects, and infrastructure and rehabilitation projects for highways, roads and bridges, to name a few.
STRL, currently carrying a Zacks Rank #2, has gained 155.6% over the past year. The 2024 EPS estimate has increased to $4.74 from $4.68 over the past 30 days. Earnings for 2024 are expected to grow 13.1%. It currently carries a VGM Score of A.
Gibraltar: This civil infrastructure company has also been riding high on the back of solid demand for infrastructure services throughout end markets in both private and public sectors.
ROCK, currently carrying a Zacks Rank #2, has gained 70.8% over the past year. The 2024 EPS estimate has increased to $4.63 from $4.51 over the past 60 days. Earnings for 2024 are expected to grow 12.1%. It currently carries a VGM Score of A.
Martin Marietta: Based in Raleigh, NC, aggregates and other heavy building materials supplier has been benefiting from solid pricing across businesses amid low volume. Also, the business-mix portfolio, its discreetly curated coast-to-coast footprint and its prime focus on value-over-volume commercial strategy are commendable.
MLM, currently carrying a Zacks Rank #2, has gained 42.7% over the past year. The 2024 EPS estimate has increased to $21.02 from $20.12 over the past 60 days. Earnings for 2024 are expected to grow 14%. It currently carries a VGM Score of A.
AECOM: This leading solutions provider for supporting professional, technical and management solutions for diverse industries is capitalizing on increased infrastructure spending and a committed focus on digital initiatives, leading to a substantial rise in net service revenues and the growth of its backlog.
ACM, currently carrying a Zacks Rank #2, has gained 8% over the past year. The 2024 EPS estimate has increased to $4.36 from $4.26 over the past 60 days. Earnings for 2024 are expected to grow 17.5%. It currently carries a VGM Score of A.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
AECOM (ACM) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report
Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : 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.
|
2023-12-16
|
ARTLW
|
A month has gone by since the last earnings report for Jack In The Box (JACK). Shares have added about 15.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jack In The Box due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Jack in the Box Q4 Earnings Lag Estimates, Revenues Top
Jack in the Box reported mixed fourth-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line declined from the prior-year quarter’s levels.
Earnings & Revenues Details
During the fiscal fourth quarter, adjusted earnings from continuing operations came in at $1.09 per share. The figure missed the Zacks Consensus Estimate of $1.15. The metric declined 18% from $1.33 reported in the prior-year quarter.
Quarterly revenues of $372.5 million beat the Zacks Consensus Estimate of $368 million by 1.2%. However, the top line dropped 7.5% on a year-over-year basis.
Franchise rental revenues increased 6.6% year over year to $86 million. Franchise royalties and other revenues dropped 3% year over year to $55.2 million. This figure compares with our projection of $51.6 million.
Franchise contributions to advertising and other services revenues rose 11.2% year over year to $56.4 million. This figure compares to our projection of $50.3 million.
Company restaurant sales during the quarter came in at $175 million (compared with $214.5 million reported in the prior-year quarter). This figure compares to our projection of $208.4 million.
Comps Discussion
In the quarter under review, comps at Jack in the Box’s stores increased 4.4% year over year compared with 11.4% growth reported in the prior-year quarter. The upside was primarily driven by a 7.6% increase in pricing. However, this was partially offset by a decline in transactions and a negative mix due to fewer drink attachments and items per check. Our estimate for the metric was 6.3%.
Same-store sales at franchised stores increased 3.8% year over year compared with 3.2% growth reported in the prior-year quarter.
Systemwide same-store sales increased 3.9% year over year compared with 4% growth reported in the year-ago quarter.
Del Taco Performance
During fourth-quarter fiscal 2023, same-store sales declined 1.5%, comprising franchise same-store sales fall of 1.5% and company-operated same-store sales fall of 1.4%.
Operating Highlights
During the fiscal fourth quarter, restaurant-level adjusted margin came in at 20.7% compared with 16.2% in the prior-year quarter. The upside was driven by menu price increases and a change in the mix of restaurants. However, this was partially offset by inflationary increases in wages, food and packaging costs and utilities.
Food and packaging costs (as a percentage of company restaurant sales) fell 170 basis points (bps) year over year to 29.2%.
The franchise level margin was 39.9% in the fiscal fourth quarter compared with 42.4% reported in the prior-year quarter. Our estimate for the metric was 38.6%.
During the quarter, selling, general and administrative expenses accounted for 11.7% of total revenues (compared with 9.3% in the prior-year quarter). Our estimate for the metric was 11.3%.
Balance Sheet
As of Oct 1, 2023, cash totaled $157.7 million compared with $108.9 million as of Oct 2, 2022. Inventories during the quarter came in at $3.9 million compared with $5.3 million reported in the year-ago quarter. Long-term debt (net of current maturities) totaled $1.7 billion as of Oct 1, 2023, compared with $1.8 billion at the end of Oct 2, 2022.
During fiscal 2023, the company repurchased nearly 1.1 million shares for an aggregate cost of $90.7 million. On Nov 16, 2023, the management authorized a share repurchase program for $250.0 million.
The company declared a cash dividend of 44 cents per share. The dividend will be paid out on Dec 28, 2023, to shareholders on record as of Dec 14, 2023.
Fiscal 2024 Outlook
For the fiscal 2024, the company anticipates Adjusted EBITDA to be in the range of $325-$335 million. Depreciation and Amortization expenses are anticipated to be between $61 million and $63 million.
Company-wide CapEx and Other Investments in fiscal 2024 are expected in the range of $110-120 million. SG&A expenses are estimated to be $165-175 million.
Jack in the Box Restaurant Level Margin is expected to be in the range of 21-23%. Del Taco Restaurant Level Margin is expected to be in the range of 14-16%. The company expects Same Store sales for Jack in the Box and Del Taco to be in the low-to-mid single digits.
Company-wide operating earnings per share for fiscal 2024 are expected in the range of $6.25-$6.50.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -6.18% due to these changes.
VGM Scores
At this time, Jack In The Box has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Jack In The Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Urban Outfitters (URBN). Shares have added about 14.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Urban Outfitters due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Urban Outfitters Q3 Earnings Beat, Sales Improve Y/Y
Urban Outfitters reported solid results for third-quarter fiscal 2024, wherein the top and bottom lines beat the Zacks Consensus Estimate and improved from the prior fiscal year’s quarterly levels.
Deeper Insight
This lifestyle-specialty retailer delivered earnings per share of 88 cents, outpacing the Zacks Consensus Estimate of earnings of 81 cents per share. The bottom line increased from 40 cents per share recorded in the comparable quarter of the prior fiscal year.
Net sales for the three months ending Oct 31, 2023, rose 9% from the same-period level of last fiscal to $1,281.2 million. The metric beat the consensus estimate of $1,261 million.
Brandwise, net sales were down 11.8% from the comparable period’s level in fiscal 2023 to $324.4 million at Urban Outfitters. The metric was up 13.5% to $549.8 million at Anthropologie Group and 18.2% to $331.8 million at Free People. Nuuly, the subscription-based rental service for women’s clothes, contributed $65.5 million to net sales, reflecting an increase of 85.6% from the earlier fiscal year’s comparable period, backed by an 85% rise in the company’s subscribers. Menus & Venues’ net sales amounted to $9.7 million, up 26% from the level recorded in the prior fiscal year’s corresponding period.
Segmentwise, net sales at the Retail unit rose 7.3% to $1,145.8 million, while the metric at the Wholesale unit dipped 3.6% to $69.9 million. The Wholesale unit’s sales were driven by a 3.5% decline in Free People Group wholesale sales on lower sales to department stores and close-out account partners. We note that the comparable Retail segment’s net sales grew 5.6% from the same-period level of fiscal 2023 backed by mid-single-digit increase in retail-store sales and high single-digit growth in digital channel sales.
By brand, the comparable Retail segment’s net sales jumped 22.5% at the Free People Group and 13.2% at the Anthropologie Group. The same, however, dropped 14.2% at Urban Outfitters.
An Insight Into Margins
In the quarter under review, gross profit rose 27.3% from the same-quarter level of fiscal 2023 to $454.4 million. Also, the gross margin expanded 509 basis points (bps) to 35.5%, mainly owing to increased initial merchandise markups on reduced inbound transportation costs and lower merchandise markdowns across all the Retail segment brands.
Selling, general and administrative (SG&A) expenses were up 12% from the third-quarter fiscal 2023 level to $345.4 million. As a percentage of net sales, SG&A deleveraged 146 bps to 27%, mainly due to increased incentive-based compensation costs and elevated marketing and creative expenses.
URBN recorded an operating income of $109 million, up from $57.3 million in third-quarter fiscal 2023. As a rate of sales, the operating margin increased 360 bps to 8.5% from the level registered in the quarter ending Oct 31 in fiscal 2023.
Store Update
In the nine months of fiscal 2024, this current Zacks Rank #3 (Hold) player inaugurated 21 outlets, including 10 Free People (including six FP Movement stores), five Urban Outfitters, five Anthropologie Group and one Menus & Venues restaurant. URBN closed 10 retail locations, including four Urban Outfitters, four Anthropologie Group, one Free People Group and one Menus & Venues restaurant. In the aforementioned period, one Urban Outfitters franchisee-owned store was opened.
As of Oct 31, 2023, URBN operated 264 Urban Outfitters stores in the United States, Canada and Europe; 239 Anthropologie Group stores in the United States, Canada and Europe; 197 Free People stores (including 37 FP Movement stores) in the United States, Canada and Europe; 11 Menus & Venues restaurants; seven Urban Outfitters franchisee-owned stores and two Anthropologie Group franchisee-owned stores.
In fiscal 2024, management plans to open about 28 stores and close 21 outlets.
Other Financial Details
Urban Outfitters ended the quarter with cash and cash equivalents of $206.2 million and a total shareholders’ equity of $2,046.6 million. As of Oct 31, 2023, total inventory fell 3% from the same period in fiscal 2023. Total Retail segment inventory was flat while Wholesale segment inventory tumbled 33%.
URBN provided net cash of $280.2 million from operating activities during the nine-month period ending Oct 31.
Urban Outfitters did not repurchase any shares during the nine months of fiscal 2024. As of Oct 31, 2023, URBN had 19.2 million shares remaining under its share repurchase programs.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -17.31% due to these changes.
VGM Scores
Currently, Urban Outfitters has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Urban Outfitters has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Urban Outfitters is part of the Zacks Retail - Apparel and Shoes industry. Over the past month, Gap (GPS), a stock from the same industry, has gained 10%. The company reported its results for the quarter ended October 2023 more than a month ago.
Gap reported revenues of $3.77 billion in the last reported quarter, representing a year-over-year change of -6.7%. EPS of $0.59 for the same period compares with $0.71 a year ago.
For the current quarter, Gap is expected to post earnings of $0.20 per share, indicating a change of +126.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Gap. Also, the stock has a VGM Score of C.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
The Gap, Inc. (GPS) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Golar LNG (GLNG). Shares have added about 4.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Golar LNG due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Golar LNG in Q3
GLNG’s reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
GLNG’s third-quarter 2023 earnings of 55 cents per share surpassed the Zacks Consensus Estimate of 50 cents. Earnings rose 25% year over year. The earnings beat might have impressed investors as the stock improved 3.1% following the release of third-quarter results on Nov 21.
Adjusted revenues of $66.6 million lagged the Zacks Consensus Estimate of $67.4 million. The top line dipped 3% year over year.
Revenues in the Floating Liquefied Natural Gas (FLNG) segment gained 2.7% year over year.
The FLNG unit contributed 83.8% to GLNG’s top line. The balance came from corporate and other sources. Adjusted EBITDA fell 12.3% year over year to $74.5 million in the quarter.
GLNG’s share of contractual debt at the end of the reported quarter increased 18% to $1.17 billion. Golar LNG’s net income was $92.5 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 5.26% due to these changes.
VGM Scores
At this time, Golar LNG has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Golar LNG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Golar LNG Limited (GLNG) : 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.
|
2023-12-16
|
ARTLW
|
By Samrhitha A and Aditya Soni
Dec 21 (Reuters) - Warner Bros Discovery WBD.O and Paramount Global PARA.O are likely to be "worse off" together as a merger will leave them billions deeper in debt and saddled with dying traditional television assets, Wall Street analysts said on Thursday.
Shares of both companies extended losses after dropping sharply a day earlier on news that their CEOs had met to discuss a potential deal.
The deal talks follow months of industry speculation about consolidation among companies that lack the scale to compete with streaming pioneer Netflix NFLX.O while steadily losing customers in the traditional TV business to cord-cutting.
"It (the potential deal) looks like a play for survival at all costs. Both businesses are heavily indebted and it is likely further debt will need to be issued to make this deal possible," said Quilter Cheviot technology analyst Ben Barringer.
The merger will create what analysts said would be the largest movie studio in Hollywood and a streaming business with the third-highest U.S. subscribers. The firms together will also account for up to 40% of total time viewed on traditional TV.
But the ongoing decline in the TV business - their main profit engine - is also expected to make it harder for the firms to deal with the extra debt that would accompany the merger.
Warner Bros Discovery has tried to prop up its cash flow and aggressively lower costs over the past few months, but it still has about $45 billion in debt. Paramount has about $15 billion.
RISKY TIMING
Several analysts questioned the timing of the deal talks as the upcoming U.S. Presidential election would ramp up the regulatory uncertainty facing big mergers.
"It's risky to push a deal of this size during an election year when antitrust legislation is making a comeback," said Ross Benes, eMarketer senior analyst.
Any deal between the companies will likely happen after April 2024, the end of the two-year lock-up period after which Warner Bros Discovery can carry out another deal without suffering hefty tax implications as per the agreement for its own merger in 2022.
Some analysts believe the talks may encourage NBCUniversal-owner Comcast to make its own move with Warner Bros Discovery.
Comcast's nearly $180 billion market value is much bigger than Warner Bros Discovery's $30 billion and Paramount's about $10 billion. Its CEO Brian Roberts has also been long rumored to be interested in expanding the company's media business.
"At the end of the day, Comcast may be the one strategic buyer with the capital structure and assets required to benefit either WBD or PARA in a long-term viable way," MoffettNathanson analysts said.
(Reporting by Samrhitha Arunasalam and Aditya Soni in Bengaluru; Editing by Devika Syamnath)
((Samrhitha.A@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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for American Eagle Outfitters (AEO). Shares have added about 22.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American Eagle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
American Eagle Tops on Q3 Earnings & Sales Estimates
American Eagle reported top and bottom-line beat in third-quarter fiscal 2023, driven by brand strength and solid demand. Earnings and sales also increased year over year. The company’s third-quarter fiscal 2023 earnings of 49 cents per share rose 17% year over year and surpassed the Zacks Consensus Estimate of 48 cents.
Total net revenues of $1,301.1 million improved 5% year over year, beating the Zacks Consensus Estimate of $1,275 million. Revenue growth was driven by rising brand momentum and tremendous fall season merchandise collection. Store revenues grew 3% in the quarter, while digital revenues rose 10%.
Quarterly Details
Brand-wise, revenues increased 2% to $857 million for American Eagle and beat our estimate of $807.7 million. Comps for the American Eagle brand rose 2% year over year. American Eagle brand sales benefited from improvements in its assortments. The AE brand is poised to benefit from new trends in casual wear, the expansion of dominance in denim, and making investments to better penetrate categories and occasions.
Revenues advanced 12% to $393 million for the Aerie brand in the fiscal third quarter and outpaced our estimate of $388.8 million. Comps for the Aerie brand also improved 12%. Sturdy demand in its core apparel, activewear extension, strength in the OFFLINE brand and renewed momentum in intimates aided the brand.
Gross profit increased 13% year over year to $544 million in the fiscal third quarter. The gross margin expanded 310 basis points (bps) to 41.8%. Gross margin growth in the quarter can be attributed to strong demand, reduced product and freight costs, and gains from profit improvement initiatives, which led to lower markdowns and leverage on rent, distribution, and warehousing and delivery expenses. Inventory discipline mainly resulted in lower markdowns as the company maintained healthy promotions.
Gross profit for the quarter surpassed our estimate of $532.4 million, which suggested year-over-year growth of 11%. We estimated the gross margin to expand 380 bps year over year to 42.5%, backed by a decline in the cost of sales due to lower freight expenses.
SG&A expenses rose 16% year over year to $362 million and beat our estimate of $361.4 million. As a percentage of sales, SG&A expenses increased 270 bps to 27.8%. Elevated SG&A expenses mainly resulted from higher incentive compensation compared with zero accruals last year. Additionally, higher store payroll due to increased wages led to SG&A deleverage. Our model had predicted a SG&A rate of 28.8% for the fiscal third quarter, reflecting an increase of 370 bps.
Operating income was $125.4 million in the quarter, up 6.7% from $117.5 million in the year-ago period. The operating margin of 9.6% expanded 10 bps year over year. Growth in the operating margin was aided by strong sales growth and an improved gross margin rate, offset by SG&A deleverage. Operating income surpassed our estimate of $115.7 million. Our model predicted operating margin decline of 30 bps to 9.2%.
For Aerie, operating income of $75.9 million increased 34.3% from the year-ago quarter’s $56.5 million and surpassed our estimate of $63.5 million. The AE brand’s operating income increased 5.7% year over year to $184 million in the quarter under review. AE’s operating income surpassed our estimate of $179.9 million.
Other Financial Details
American Eagle ended the fiscal third quarter with cash and cash equivalents of $240.9 million, and liquidity of $900 million, with no outstanding debt. Total shareholders’ equity as of Oct 28, 2023, was $1,738.3 million.
Capital expenditure was $43 million in the reported quarter. It expects a capital expenditure of $150-$175 million for fiscal 2023.
Inventory declined 4% year over year to $769 million, driven by continued inventory discipline. Inventory units were down 3%.
Guidance
The company noted that the strong business momentum continued in the fourth quarter of fiscal 2023 on robust holiday assortments, engaging marketing campaigns and solid execution. This, along with the strong year-to-date results, led management to raise its view for fiscal 2023.
For fiscal 2023, revenues are likely to be up year over year in the mid-single digits compared with the prior mentioned low-single-digit growth. Operating income is estimated to be $340-$350 million, narrowing toward the upper-end of the earlier stated $325-$350 million.
AEO expects SG&A to rise in the low-double digits for fiscal 2023 as improved business trends are likely to result in elevated incentives. In fiscal 2023, the company’s plan for consolidated store count is nearly flat with last year, suggesting 25 Aerie store openings, offset by 25 net closures for the AE brand.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, American Eagle has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise American Eagle has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
American Eagle belongs to the Zacks Retail - Apparel and Shoes industry. Another stock from the same industry, Tapestry (TPR), has gained 20.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Tapestry reported revenues of $1.51 billion in the last reported quarter, representing a year-over-year change of +0.4%. EPS of $0.93 for the same period compares with $0.79 a year ago.
Tapestry is expected to post earnings of $1.46 per share for the current quarter, representing a year-over-year change of +7.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Tapestry. Also, the stock has a VGM Score of C.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Guess (GES). Shares have added about 15% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Guess due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Guess? Misses Q3 Earnings Estimate, Lowers FY24 View
Guess? reported third-quarter fiscal 2024 results, as the top and the bottom line increased year over year. However, both metrics missed the Zacks Consensus Estimate. The company is operating in a volatile shopping environment globally, stemming from geopolitical issues and reduced consumer confidence. Taking into account these factors and the recent sales trends, management offered a cautious view for the fiscal fourth quarter while lowering its fiscal 2024 outlook.
Results in Detail
Guess? posted adjusted earnings of 49 cents per share, up 11% from 44 cents reported in the year-ago period. Earnings were positively impacted by share buybacks, partly negated by currency headwinds. The bottom line missed the Zacks Consensus Estimate of 62 cents per share.
Net revenues amounted to $651.2 million, missing the consensus mark of $656.2 million. The metric rose 3% from $633.4 million reported in the year-ago quarter. On a cc basis, net revenues inched up 1%. Revenues grew in all regions except Americas Retail.
The company’s gross margin expanded from 42.5% to 44.7% in the reported quarter. As a percentage of sales, SG&A expenses increased to 36% from 33.6% in the prior-year quarter’s level. We expected a gross margin of 42.9% and SG&A expenses to be 35% of sales in the fiscal third quarter.
Adjusted earnings from operations came in at $57.9 million, slightly down from $58 million reported in the year-ago quarter. The adjusted operating margin inched down 0.2% to 8.9%, mainly due to increased expenses like greater performance-based compensation and unfavorable currency impact. These were somewhat offset by increased initial markups and the positive impact of the business mix. We had projected the metric to come in at 8% in the quarter under review.
Segment Performance
Revenues in the Americas Retail segment fell 7% year over year on a reported basis and 8% at cc. Retail comp sales (including e-commerce) dropped 5% on a reported basis and at cc. The segment’s operating margin fell 1.6% to 5.3% in the quarter.
Americas Wholesale revenues rose 4% on a reported basis but fell 1% at cc. The segment’s operating margin jumped 9.9% to 29.1% in the quarter.
The Europe segment’s revenues increased 6% on a reported basis and rose 5% at cc. Retail comp sales (including e-commerce) climbed 8% on a reported basis and 7% on a cc basis. The segmental operating margin was 10.3%, down 0.9% year over year.
Asia revenues advanced 2% on a reported basis and remained flat year over year at cc. Retail comp sales (including e-commerce) fell 8% on a reported basis, while the same declined 9% at cc. The operating margin for the segment stood at 1%, reflecting 1% year-over-year growth.
Licensing revenues rallied 19% on a reported basis and at cc. The segmental operating margin was 93.1% compared with 89.6% in the year-ago quarter.
Other Updates
The company exited the quarter with cash and cash equivalents of $244.1 million and long-term debt and finance lease obligations of nearly $131.8 million. Stockholders’ equity was around $514.1 million. Net cash provided by operating activities for the nine months ended Oct 28, 2023 was $40.9 million. GES announced a quarterly dividend of 30 cents per share, payable on Dec 22, 2023, to shareholders on record as of Dec 6.
Guidance
For fiscal 2024, Guess? anticipates revenues to grow in the range of 1.8-2.4% compared with the earlier range of 2.5-4% growth. The adjusted operating margin is likely to be 8.9-9.1%. The GAAP operating margin is likely to be 8.7-8.9%. Per the second-quarter earnings release, the adjusted operating margin was likely to be 9-9.4% in fiscal 2024. The GAAP operating margin was projected at 8.9-9.3%. Management expects adjusted EPS in the band of $2.67-$2.74 in fiscal 2024 compared with $2.74 recorded in fiscal 2023. On a GAAP basis, EPS is envisioned in the range of $2.49-$2.55 compared with $2.18 reported in fiscal 2023. Management had earlier forecasted adjusted EPS in the band of $2.88-$3.08 for fiscal 2024. On a GAAP basis, EPS was earlier envisioned in the range of $2.22-$2.37.
For the fourth quarter of fiscal 2024, management expects revenue growth of 4-6%. The company expects the adjusted operating margin and the GAAP operating margin to be in the range of 14.1-14.4%. On an adjusted basis, Guess? expects EPS in the band of $1.53-$1.60 per share. On a GAAP basis, it expects EPS in the range of $1.22-$1.28 for the fourth quarter of fiscal 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -9.6% due to these changes.
VGM Scores
At this time, Guess has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Guess has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Guess belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, Under Armour (UAA), has gained 20.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Under Armour reported revenues of $1.57 billion in the last reported quarter, representing a year-over-year change of -0.5%. EPS of $0.24 for the same period compares with $0.20 a year ago.
Under Armour is expected to post earnings of $0.11 per share for the current quarter, representing a year-over-year change of -31.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Under Armour. Also, the stock has a VGM Score of D.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Guess?, Inc. (GES) : Free Stock Analysis Report
Under Armour, Inc. (UAA) : 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.
|
2023-12-16
|
ARTLW
|
A month has gone by since the last earnings report for Jacobs Solutions (J). Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jacobs Solutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Jacobs Misses Q4 Earnings Estimates, Gives Solid '24 View
Jacobs reported mixed results for fourth-quarter fiscal 2023 (ended Jun 30, 2023), with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.
Earnings and revenues increased on a year-over-year basis, backed by solid performance across the portfolio. It also reported a solid backlog thanks to a robust opportunity set, led by People and Places Solutions’ operating profit growth of nearly 12% year over year.
Earnings & Revenue Discussion
For the reported quarter, adjusted earnings of $1.90 per share lagged the consensus estimate of $2.02 by 5.9%. The reported figure was up 5.6% from the year-ago figure of $1.80 per share.
Jacobs’ revenues totaled $4.29 billion, which topped the consensus mark of $4.14 billion by 3.7% and grew 10.5% year over year. Adjusted net revenues were up 8.9% year over year (7.3% in constant currency).
Adjusted operating profit grew 10.3% to $383 million from a year ago. The adjusted operating margin of 11% expanded by 14 basis points (bps). Adjusted EBITDA rose 9.6% to $384 million and adjusted EBITDA margin improved 10 bps year over year. The backlog at the end of fiscal 2023 amounted to $29.1 billion, up 4% from a year ago.
Segment Details
Revenues from the CMS segment of $1.24 billion increased by 6.9% year over year. The segment’s operating profit was up 26.4% to $103 million from a year ago, with a margin expansion of 128 bps to 8.3%. The backlog at the fiscal fourth-quarter end was $8.264 billion, up from $7.622 billion a year ago.
Revenues from the People & Places Solutions or P&PS segment totaled $2.51 billion, which increased by 12.7% year over year. Net revenues (excluding Pass-Through Revenue) were up by 10.5% year over year. Its operating profit grew 11.7% from the prior-year quarter to $256 million and the margin rose by 16 bps to 15%. The backlog at the quarter’s end was $17.35 billion, up from $17.01 billion a year ago.
Revenues from the Divergent Solutions segment totaled $251.9 million, which grew 4% year over year. Divergent Solutions’ net revenues were up 2.8% year over year. Segment operating profit improved 57.9% from the prior-year quarter to $24 million. Its operating margin of 10.1% also grew 350 bps year over year. The backlog at the quarter’s end was $3.183 billion, up from $2.957 billion a year ago.
PA Consulting generated $288.2 million in revenues, up 13.3% from the year-ago quarter’s period. Its operating profit was $59 million, up 20.5% from $49 million a year ago. Its operating margin improved by 122 bps to 20.6%. The quarter-end backlog amounted to $311 million, up from $269 million a year ago.
Fiscal 2023 Highlights
Total revenues of $16.35 billion grew 10% year over year. Adjusted net revenues grew 7% year over year and 8.8% at constant currency.
Adjusted EPS was $7.20, an increase of 3.9% from fiscal 2022. Adjusted EBITDA grew 5.3% to $1.44 billion and 7% at constant currency. Adjusted EBITDA margin was 10.8% year over year.
Balance Sheet & Cash Flow
At the fiscal 2023 end, Jacobs had cash and cash equivalents of $926.6 million, down from $1,140.5 million at the fiscal 2022 end. Long-term debt decreased to $2.81 billion at the fiscal 2023-end from $3.36 billion as of fiscal 2022-end. Net cash provided by operating activities totaled $974.8 million in the quarter compared with $474.7 million in the year-ago quarter. Free cash flow was $837.3 million during the year.
Fiscal 2024 Guidance
Jacobs expects adjusted EBITDA between $1,530 million and $1,600 million, up 9% from the previous year, considering the mid-point. It anticipates adjusted earnings within $7.70-$8.20 per share, up 10%year-over-year at the mid-point.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -19.36% due to these changes.
VGM Scores
Currently, Jacobs Solutions has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Jacobs Solutions has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Jacobs Solutions is part of the Zacks Technology Services industry. Over the past month, Gen Digital (GEN), a stock from the same industry, has gained 7.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
Gen Digital reported revenues of $955 million in the last reported quarter, representing a year-over-year change of +27.7%. EPS of $0.47 for the same period compares with $0.45 a year ago.
For the current quarter, Gen Digital is expected to post earnings of $0.50 per share, indicating a change of +11.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.
Gen Digital has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Jacobs Solutions Inc. (J) : Free Stock Analysis Report
Gen Digital Inc. (GEN) : 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.
|
2023-12-16
|
ARTLW
|
A month has gone by since the last earnings report for Burlington Stores (BURL). Shares have added about 9.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Burlington Stores due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Burlington Stores’ Q3 Earnings & Sales Miss, Rise Y/Y
Burlington Stores reported third-quarter fiscal 2023 results, where sales and earnings missed the Zacks Consensus Estimate. However, both the top and bottom lines increased year over year.
It delivered adjusted earnings of 98 cents per share, lagging the Zacks Consensus Estimate of earnings of 99 cents. The bottom line surged 127.9% from 43 cents per share recorded in the year-ago fiscal quarter.
Total revenues of $2,289.3 million fell short of the consensus estimate of $2,313 million but increased 12.2% from the last fiscal year’s quarterly reported figure. The company’s comparable store sales jumped 6% from the year-ago period, compared with our estimate of 6.4% growth.
Margins
The gross margin was 43.2% in the reported quarter, up 200 basis points (bps) from third-quarter fiscal 2022 actuals. Notably, our estimate for the gross margin was also pegged at 43.2%. Merchandise margin increased by 150 bps and freight expenses improved by 50 bps.
Adjusted selling, general and administrative (SG&A) expenses, as a rate of sales, was 27.3%, increasing 50 bps from the third-quarter fiscal 2022 actuals. Our estimate for adjusted SG&A expenses, as a rate of sales, was 27.2%. Product sourcing costs included in SG&A expenses came in at $200 million, up from $177 million recorded in the fiscal year ago quarter. Product sourcing costs represent the processing goods expenses via supply chain and buying costs.
Adjusted EBITDA increased by 43.1% from the third quarter of fiscal 2022 to $176 million. Adjusted EBIT was $99 million, up from $55 million in the fiscal year ago quarter. Adjusted EBIT margin increased by 170 bps from the third quarter of fiscal 2022.
Other Financial Aspects
The company ended the reported quarter with cash and cash equivalents of $615.9 million, long-term debt of $1,397.6 million and stockholders’ equity of $850.5 million. BURL exited the fiscal third quarter with $1,440 million of liquidity, including $616 million of unrestricted cash and $824 million available under its ABL facility.
Burlington Stores ended the quarter with $1,412 million of outstanding total debt, comprising $940 million under its Term Loan Facility, $453 million of Convertible Notes and no borrowings under its ABL Facility.
Burlington Stores bought back 348,948 shares for $52 million under its share repurchase plan in the fiscal third quarter. As of Oct 28, 2023, BURL had $718 million remaining under its current share repurchase authorization. It is worth noting that on Aug 15, 2023, Burlington Stores’ board of directors approved the repurchase of up to an additional $500 million of common stock.
Outlook
For fiscal 2023, comparable sales are anticipated to increase 3% against the 13% decrease reported during fiscal 2022. Net sales are expected to grow 11%, including an approximately 2% rise from the extra 53rd week, against a 7% fall in fiscal 2022. Adjusted EBIT margin (excluding the impact of expected incremental expenses of 18 million related to the recently acquired Bed Bath & Beyond leases) is now expected to increase by 90-100 bps for the fiscal year. Adjusted earnings per share (EPS) are envisioned in the bracket of $5.72-$5.87 compared with an adjusted EPS of $4.26 recorded in the last fiscal year. The expected adjusted EPS excludes the impact of expected incremental expenses of 20 cents per share related to the acquired Bed Bath & Beyond leases.
For the fourth quarter of fiscal 2023, total sales are projected to increase 5-7% and comps are expected to be in the range of 2% decline to flat from the year-ago period. Adjusted EBIT margin is likely to be up by 0-40 bps from the last fiscal year’s quarterly reading and adjusted EPS is forecast in the range of $3.10 to $3.25.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Burlington Stores has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Burlington Stores has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Burlington Stores belongs to the Zacks Retail - Discount Stores industry. Another stock from the same industry, TJX (TJX), has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended October 2023.
TJX reported revenues of $13.27 billion in the last reported quarter, representing a year-over-year change of +9%. EPS of $1.03 for the same period compares with $0.86 a year ago.
For the current quarter, TJX is expected to post earnings of $1.11 per share, indicating a change of +24.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for TJX. Also, the stock has a VGM Score of D.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : 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.
|
2023-12-16
|
ARTLW
|
A month has gone by since the last earnings report for Best Buy (BBY). Shares have added about 11.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Best Buy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Best Buy Q3 Earnings Beat Estimates, Sales View Down
Best Buy posted better-than-expected earnings for third-quarter fiscal 2024. However, sales and earnings decreased year over year. Best Buy’s adjusted earnings of $1.29 per share beat the Zacks Consensus Estimate of $1.19. The bottom line decreased from $1.38 per share recorded in the year-ago period.
Q3 Details
Enterprise revenues declined 7.8% from the prior fiscal year’s quarterly number to $9,756 million. The figure missed the Zacks Consensus Estimate of $9,883 million. Enterprise comparable sales dropped 6.9% year over year, narrower than 10.4% decline in the year-ago quarter.
Gross profit declined 4.3% to $2,232 million, while the gross margin expanded 90 basis points (bps) to 22.9%. The metric came in line with our estimate.
Adjusted operating income came in at $369 million, down from the $412 million recorded in the year-ago quarter. The adjusted operating margin fell 10 bps to 3.8% but fared better than our estimate of 3.4%.
We note that adjusted selling, general and administrative expenses fell 3% to $1,863 million, while as a percentage of revenues, the same increased 100 bps to 19.1%. Our estimate for adjusted SG&A expenses, as a rate of revenues, was pegged at 19.6%.
Segmental Details
The Domestic segment’s revenues fell 8.2% to $8,996 million. This decline from the last fiscal year’s quarterly reading was mainly induced by a comparable sales decrease of 7.3%. From a merchandising perspective, comparable sales decreased in categories, with the primary drivers being appliances, computing, home theater and mobile phones, partially offset by growth in gaming. We expected revenues of $9,134.5 million from this segment.
The Domestic segment’s online revenues of $2.75 billion declined 9.3% year over year on a comparable basis. As a percentage of total domestic revenues, online revenues were 30.6% compared with 31% in the year-ago quarter.
The segment’s gross profit rate increased 100 bps to 22.9% due to better performance from the company’s membership offerings, including higher service margin rates, favorable product margin rates and lower supply chain expenses.
In the International segment, revenues fell 3.4% to $760 million, mainly due to a comparable sales decline of 1.9% and adverse foreign currency translations. The segment’s operating income came in at $18 million or 2.4% of revenues, lower than the $33 million or 4.2% of revenues reported in the year-ago quarter. Our estimate for revenues from the segment was pegged at $748 million.
Other Details
Best Buy ended the quarter with cash and cash equivalents of $636 million, long-term debt of $1,130 million and a total equity of $2,812 million.
At the end of the reported quarter, merchandise inventories of $7,562 million increased 3.7% from the year-ago quarter’s reading.
In the quarter, BBY returned about $313 million to its shareholders via dividends of $201 million and share repurchases of $112 million. The company’s board announced the payment of a regular quarterly cash dividend of 92 cents per share, payable on Jan 2, 2024, to shareholders of record as of Dec 12, 2023.
Guidance
For fiscal 2024, including 53 weeks, management projects revenues of $43.1-$43.7 billion and a comparable sales decline of 6-7.5%. Earlier, it anticipated revenues of $43.8-$44.5 billion, with a comparable sales decline of 4.5-6%.
The company expects a fiscal 2024 adjusted operating margin of 4-4.1% compared with the 3.9-4.1% mentioned earlier. For fiscal 2024, management anticipates an effective income tax rate of 24%. The company expects adjusted earnings per share (EPS) between $6.00 and $6.30 compared with the $6.00 and $6.40 guided earlier. Capital expenditure is anticipated to be $825 million.
For the fourth quarter of fiscal 2024, Best Buy anticipates comparable sales to decline by 3-7%. The adjusted operating income rate is expected to be in the range of 4.7-5%.
BBY’s guidance includes the impact of the 53rd week in the fiscal year. The 53rd week is expected to add about $700 million of revenue in the fiscal fourth quarter and boost the adjusted operating income rate by 10 basis points in the fiscal year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -6.14% due to these changes.
VGM Scores
At this time, Best Buy has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Best Buy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Best Buy Co., Inc. (BBY) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Analog Devices (ADI). Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Analog Devices due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Analog Devices Q4 Earnings Match Estimates
Analog Devices delivered fourth-quarter fiscal 2023 adjusted earnings of $2.01 per share, which came in line with the Zacks Consensus Estimate. The bottom line declined by 26% from the year-ago fiscal quarter’s reported figure.
Revenues of $2.716 billion came ahead of the Zacks Consensus Estimate of $2.713 billion. The top line fell 16% from the year-ago fiscal quarter’s reported figure.
Softness in communications, consumer and industrial markets was a major negative.
Nevertheless, the company witnessed solid momentum across the automotive markets during the reported quarter.
Revenues by End Markets
Industrial: The market generated revenues of $1.35 billion (accounting for 50% of the total revenues), which fell 20% year over year. The figure missed the Zacks Consensus Estimate of $1.41 million.
Communications: Revenues from the market were $340.2 million (13% of revenues), decreasing 32% from the year-ago fiscal quarter’s reported figure. The figure surpassed the Zacks Consensus Estimate of $332 million.
Automotive: Revenues from the market summed up to $731.4 million (27% of revenues), up 14% from the year-ago fiscal quarter’s level. The figure surpassed the Zacks Consensus Estimate of $678 million.
Consumer: The market generated revenues of $291.4 million (11% of revenues), reflecting a 28% decline from the year-ago fiscal quarter’s reported figure. The figure came below the Zacks Consensus Estimate of $295 million.
Operating Details
The adjusted gross margin contracted 380 basis points (bps) from the year-ago fiscal quarter’s level to 70.2%.
Adjusted operating expenses were $692.1 million, down 6.9% from the year-ago fiscal quarter’s level. As a percentage of revenues, adjusted operating expenses were 25.5%, expanding 260 bps year over year.
The adjusted operating margin contracted 640 bps on a year-over-year basis to 44.7% in the reported quarter.
Balance Sheet & Cash Flow
As of Oct 28, 2023, cash and cash equivalents were $958.1 billion, down from $1.15 billion as of Jul 29, 2023.
Long-term debt was $5.9 billion at the end of the fiscal fourth quarter compared with $6.44 billion at the end of the fiscal third quarter.
Net cash provided by operations was $1.19 billion in the reported quarter, up from $1.14 billion in the prior fiscal quarter.
ADI generated $711 million of free cash flow in the fiscal fourth quarter.
Analog Devices returned $898 million to its shareholders in the fiscal fourth quarter, of which dividend payments accounted for $428 million and repurchased shares amounted to $470 million.
Guidance
For first-quarter fiscal 2024, ADI expects revenues of $2.50 billion (+/- $100 million).
Non-GAAP earnings are expected to be $1.70 (+/- $0.10) per share.
Analog Devices anticipates non-GAAP operating margins of 41.5% (+/- 70 bps)
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -11.68% due to these changes.
VGM Scores
Currently, Analog Devices has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Analog Devices has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Analog Devices belongs to the Zacks Semiconductor - Analog and Mixed industry. Another stock from the same industry, M/A-Com (MTSI), has gained 8.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
M/A-Com reported revenues of $150.38 million in the last reported quarter, representing a year-over-year change of -15.6%. EPS of $0.56 for the same period compares with $0.77 a year ago.
M/A-Com is expected to post earnings of $0.57 per share for the current quarter, representing a year-over-year change of -29.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
M/A-Com has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
MACOM Technology Solutions Holdings, Inc. (MTSI) : 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.
|
2023-12-16
|
ARTLW
|
A month has gone by since the last earnings report for Autodesk (ADSK). Shares have added about 16.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Autodesk due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Autodesk Q3 Earnings and Sales Surpass Expectations
Autodesk reported third-quarter fiscal 2024 non-GAAP earnings of $2.07 per share, which beat the Zacks Consensus Estimate by 4.02% and improved 21.8% year over year.
The company reported revenues of $1.41 billion, which beat the consensus mark by 1.89%. The figure grew 10.5% year over year. The upside was driven by steady subscription renewal rates, new business growth and strong competitive performance.
Top-Line Details
Autodesk’s subscription revenues (92.9% of total revenues) increased 10.6% year over year to $1.31 billion. Maintenance revenues (0.8% of total revenues) declined to $12 million compared with $16 million in the year-ago quarter. Other revenues (6.2% of total revenues) increased 15.8% to $88 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s third-quarter fiscal 2024 revenues. The net revenue retention rate was within the company’s 100-110% targeted range.
Region-wise, revenues from the Americas (45.3% of revenues) increased 18.3% from the year-ago quarter’s levels to $640 million. Revenues from the EMEA, which accounted for 36.5% of revenues, climbed 8.4% to $516 million. Revenues from the Asia-Pacific (18.2% of revenues) declined 1.9% to $258 million.
Billings of $1.2 billion decreased 11% year over year in the reported quarter.
Product Top-Line Details
Autodesk offers primarily four product families — Architecture, Engineering and Construction (AEC), AutoCAD and AutoCAD LT, Manufacturing (MFG) and Media and Entertainment (M&E).
AEC (47.7% of revenues) revenues increased 17.4% year over year to $675 million. AutoCAD and AutoCAD LT (26.3% of revenues) revenues rose 5.1% to $372 million. MFG (19% of revenues) revenues increased 5.9% to $269 million. M&E (5.2% of revenues) revenues declined 6.4% to $73 million.
Operating Results
Autodesk reported a non-GAAP operating income of $547 million, up 17.6% year over year.
The non-GAAP operating margin expanded 240 basis points from the year-ago quarter’s levels to 38.7%.
Balance Sheet & Cash Flow
As of Oct 31, 2023, Autodesk had cash and cash equivalents (including marketable securities) of $1.95 billion compared with $2.07 billion as of Jan 31, 2023.
Deferred revenues increased 6% to $4.02 billion. Unbilled deferred revenues were $1.22 billion, representing an increase of $322 million from the year-ago quarter. Remaining performance obligations (RPO) increased 12% to $5.24 billion. Current RPO increased 12% to $3.52 billion.
Cash flow from operating activities was $18 million, representing a decrease of $451 million from the year-ago quarter. Free cash flow was $13 million, representing a decrease of $447 million from the year-ago quarter.
Fiscal 2024 Guidance
Autodesk projects fiscal 2024 revenues between $5,450 billion and $5,465 billion, indicating approximately 9% growth. Billings are estimated in the $5,075-$5,175 billion band, down in the range of 12-11% year over year.
Non-GAAP earnings are expected between $7.43 per share and $7.49 per share. ADSK expects non-GAAP operating margin to be flat year over year.
Free cash flow is anticipated in the $1,200-$1,260 million band.
For the fourth quarter of fiscal 2024, Autodesk expects revenues between $1,422 billion and $1,437 billion. Non-GAAP earnings are anticipated in the range of $1.91-$1.97 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Autodesk has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Autodesk has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Autodesk, Inc. (ADSK) : 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.
|
2023-12-16
|
ARTLW
|
Economic strength, encouraging service activities and increased adoption and success of the work-from-home trend are enabling the Zacks Business - Servicesindustry players to support the demand environment.
Driven by these positives, investors interested in the industry would do well to focus on stocks like APi Group Corporation APG, Mitie Group plc MITFY and Crawford & Company (CRD.B).
About the Industry
The Zacks Business-Services industry comprises companies that offer a range of services, including specialty rental, supply-chain management, electronic commerce, technology, document management, digital audience, data, voice, analytical and business transformation, among others. The pandemic has changed the way industry players conduct business and deliver services. The industry’s key focus is currently on channeling money and efforts toward more effective operational components, such as technology, digital transformation, data-driven decision-making and enhanced cybersecurity. To position themselves suitably in the post-pandemic era and better utilize the opportunities that the economic recovery will bring, service providers are increasing their efforts toward formulating and reassessing strategic initiatives.
What's Shaping the Future of the Business Services Industry?
Economic Recovery: The sector is a major beneficiary of the broader economy and service activities. According to the "second" estimate released by the Bureau of Economic Analysis, GDP grew at an annual rate of 5.2% in the third quarter of 2023 compared with 2.1% in the second quarter. Economic activities in the non-manufacturing sector are encouraging. The Services PMI measured by the Institute for Supply Management has stayed above the 50% mark for the past 11 months, indicating continued expansion. It registered 52.7%, increasing 0.9 percentage points from October’s reading of 51.8%.
Demand Stability: The industry is mature, with demand for services in good shape for a while now. Revenues, income and cash flows are anticipated to gradually reach pre-pandemic levels, aiding most industry players in paying out stable dividends.
Relaxed Immigration Restrictions: Higher talent costs due to a competitive talent market have been a headwind for the industry. However, the removal of the Trump-era ban on legal immigration is helping service providers thrive with the increased flow of foreign talent.
Zacks Industry Rank Indicates Solid Near-Term Prospects
The Business-Services industry is housed within the broader Business Services sector. It carries a Zacks Industry Rank #81, which places it in the top 32% of more than 250 Zacks industries.
The group’s Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term growth prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and current valuation.
Industry's Price Performance
The Zacks Business Services industry has outperformed the broader sector and the S&P 500 in the past 12-month period.
The industry has risen 28.7% compared with the S&P 500 composite’s growth of 23.6%. The broader sector has returned 21.2% over the same time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing business-services stocks, the industry is currently trading at 27.98X compared with the S&P 500’s 19.98X and the sector’s 25.53X.
Over the past five years, the industry has traded as high as 53.98X and as low as 10.21X, with the median being 22.43X, as the charts below show.
Price to Forward 12-Month P/E Ratio
3 Service Stocks in Focus
We have presented three stocks that are well poised to grow in the near term.
APi Group: This provider of safety, specialty, and industrial services carries a Zacks Rank #2 (Buy). The company continues with its strategic efforts toward increasing high-margin inspection, service and monitoring revenues, strategic pricing initiatives and prudent customer and project selection. Both top and bottom lines are in good shape, driven by strong organic growth and solid operational performance.
The Zacks Consensus Estimate for 2023 bottom line has increased 4.7% to $1.57 in the past 60 days. APGshares have gained 31% in the past six months.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mitie Group: The U.K.’s leading facilities management company has a market share around double the size of its next largest competitor. It operates in a highly fragmented market and has a devoted blue-chip customer base across public and private sectors, benefiting from diverse service offerings.
MITFY currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2023 EPS has increased 3.9% to 53 cents in the past 60 days. Mitie’sshares have gained 7% in the past six months.
Crawford & Company: This provider of claims management and outsourcing solutions is currently benefiting from business development efforts. The top and bottom lines are gaining from strong client relationships and investments in technology and people.
The company carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2023 EPS has remained unchanged at $1.07 in the past 30 days. CRD.B’s shares have soared 28% in the past six months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
APi Group Corporation (APG) : Free Stock Analysis Report
Crawford & Company (CRD.B) : Free Stock Analysis Report
Mitie Group PLC. (MITFY) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Medtronic (MDT). Shares have added about 2.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Medtronic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Medtronic Q2 Earnings, Revenues Top Estimates, View Up
Medtronic reported adjusted earnings per share of $1.25 in second-quarter fiscal 2024 compared with the year-ago quarter’s earnings per share of $1.30. The figure moved down 4% but beat the Zacks Consensus Estimate by 5.9%.
Without certain one-time adjustments — including restructuring and associated costs, amortization and acquisition-related costs, among others — GAAP earnings per share was 68 cents, surging 112.5% from the year-ago quarter’s reported figure.
Total Revenues
Worldwide revenues in the reported quarter grossed $7.98 billion, up 5.3% year over year on a reported basis and 5% on an organic basis. The top line exceeded the Zacks Consensus Estimate by 0.9%.
The company's organic revenue results reflect broad strength across businesses and geographies, benefiting from durable fundamentals.
Segment Details
The company generates revenues from four major segments, namely Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience Portfolio and Diabetes.
In the fiscal second quarter, Cardiovascular revenues increased 5.9% at CER to $2.92 billion, with all three divisions reporting organic growth this quarter.
Cardiac Rhythm & Heart Failure sales totaled $1.49 billion, up 5.3% year over year at CER. Revenues from Structural Heart & Aortic were up 8.2% at CER to $819 million. Coronary & Peripheral Vascular revenues were up 5% year over year to $613 million.
In Medical Surgical, worldwide sales totaled $2.14 billion, up 7% year over year at CER. The Surgical & Endoscopy revenue grew 8.5%, while Patient Monitoring & Respiratory Interventions revenues rose 2.5%.
In Neuroscience, worldwide revenues of $2.29 billion were up 4.7% year over year and 4.2% organic, with a high-single-digit organic increase in CST and low-single-digit organic increases in Specialty Therapies and Neuromodulation.
Revenues in the Diabetes group rose 9.7% at CER and 6.7% on organic to $610 million. The company registered mid-teens growth in non-U.S. developed markets on continued MiniMed 780G system adoption and increased CGM attachment rates on the strength of the Guardian 4 sensor.
Margins
Gross margin in the reported quarter contracted 116 basis points (bps) to 65.4% on an 8.9% rise in cost of revenues.
Research and development expenses rose 3.3% year over year at $698 million. Selling, general and administrative expenses rose 2.6% to $2.69 billion.
Adjusted operating margin contracted 13 bps year over year to 23%.
Guidance
Medtronic raised fiscal 2024 guidance.
Fiscal 2024 organic revenue growth is expected to be 4.75% (up from the earlier guidance of 4.5%). The organic revenue growth guidance excludes the impact of foreign currency and revenue related to certain businesses reported as Other. If foreign currency exchange rates as of the beginning of November hold, fiscal 2024 revenue growth on a reported basis would be approximately 2.6%.
The Zacks Consensus Estimate for the company’s fiscal 2024 worldwide revenues is pegged at $32.13 billion.
The full-year adjusted earnings per share is now expected in the range of $5.13-$5.19 (previous guidance was $5.08- $5.16). The Zacks Consensus Estimate for the year’s adjusted earnings is $5.12.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Medtronic has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Medtronic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Medtronic is part of the Zacks Medical - Products industry. Over the past month, Perrigo (PRGO), a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended September 2023 more than a month ago.
Perrigo reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +2.2%. EPS of $0.64 for the same period compares with $0.56 a year ago.
For the current quarter, Perrigo is expected to post earnings of $0.82 per share, indicating a change of +9.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Perrigo. Also, the stock has a VGM Score of C.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Medtronic PLC (MDT) : Free Stock Analysis Report
Perrigo Company plc (PRGO) : 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.
|
2023-12-16
|
ARTLW
|
GSK plc GSK announced that it is in-licensing exclusive worldwide rights from China biopharmaceutical company, Hansoh Pharma, to develop and commercialize the latter’s investigational antibody-drug conjugate (ADC) candidate, HS-20093, in lung cancer and other solid tumor indications. However, Hansoh retains exclusive rights to the candidate in China’s mainland, Hong Kong, Macau, and Taiwan.
HS-20093 is a B7-H3 targeted ADC utilizing a clinically validated topoisomerase inhibitor payload. It is the second investigational ADC that GSK in-licensed from Hansoh.
It is important to note that in October 2023, GSK bought the first ADC from Hansoh, HS-20089. HS-20089 is a B7-H4 targeted ADC, currently being developed in China in mid-stage studies. Per GSK, HS-20089 has the potential to become a best-in-class treatment for ovarian and endometrial cancer with opportunities in other solid tumors.
Per the press release, HS-20093 is currently being evaluated in ongoing phase I and II studies in China. Data from the phase I ARTEMIS-001 study for HS-20093 in advanced solid tumors was recently presented at a medical conference. In the early-stage study, treatment with the candidate demonstrated initial clinical activity in small-cell lung cancer, non-small-cell lung cancer and sarcoma with multiple confirmed responses.
HS-20093 demonstrated a manageable safety profile, too, which was also encouraging.
Year to date, shares of GSK have gained 3% against the industry’s 16.9% decline.
Image Source: Zacks Investment Research
Per the terms of the agreement, GSK is liable to make an upfront payment of $185 million to Hansoh in consideration of the exclusive license to develop and commercialize HS-20093 for lung cancer and other solid tumor indications.
GSK might be further liable to pay potential milestone payments of up to $1.525 billion to Hansoh, which brings the total deal value to approximately $1.9 billion.
Additionally, GSK will make tiered royalty payments on global net sales of HS-20093 in its territories, subject to successful commercialization. The closing of the transaction is contingent upon the meeting of certain customary and regulatory conditions.
GSK has a strong portfolio of marketed drugs for oncology indications, primarily boosted by growth in Jemperli (dostarlimab) and Zejula (niraparib) sales, approved for various gynecologic cancer indications. In the first nine months of 2023, GSK’s oncology drugs together recorded revenues of £487 million, representing year-over-year growth of 9% at constant exchange rate.
GSK PLC Sponsored ADR Price and Consensus
GSK PLC Sponsored ADR price-consensus-chart | GSK PLC Sponsored ADR Quote
Zacks Rank and Stocks to Consider
GSK currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth mentioning are Puma Biotechnology, Inc. PBYI, ADMA Biologics ADMA and Agenus AGEN. While PBYI sports a Zacks Rank #1 (Strong Buy), ADMA and AGEN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has decreased from 73 cents to 72 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 62 cents to 64 cents. In the year so far, shares of PBYI have lost 7.6%.
PBYI’s earnings beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 3 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 16 cents. In the year so far, shares of ADMA have gained 5.2%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has remained constant at 63 cents. During the same time frame, the consensus estimate for Agenus’ 2024 loss per share has remained constant at 45 cents. In the year so far, shares of AGEN have plunged 68.6%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Agenus Inc. (AGEN) : Free Stock Analysis Report
Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report
ADMA Biologics Inc (ADMA) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Dycom Industries (DY). Shares have added about 8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dycom Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Dycom's Q3 Earnings and Revenues Top Estimates
Dycom Industries reported impressive results in third-quarter fiscal 2024 (ended Oct 28, 2023). Quarterly earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The upside was mainly backed by an increase in demand from four of its top five customers.
Earnings & Revenue Discussion
Dycom’s adjusted earnings of $2.82 per share surpassed the Zacks Consensus Estimate of $1.77 by 59.3%. The quarterly earnings increased from the year-ago adjusted figure of $1.80 per share. The uptrend was driven by higher adjusted EBITDA and higher gains on asset sales, partially offset by higher depreciation and amortization, stock-based compensation, interest expenses and taxes.
Contract revenues of $1,136.1 million increased 9% year over year and surpassed the consensus mark of $1,069 million by 6.3%. With the deployment of gigabit wireline networks, wireless/wireline converged networks and wireless networks, the company witnessed an increase in demand from four of its top five customers.
The company’s top five customers represented 54.4% of total contract revenues, which declined 8.8% organically. Revenues from all other customers increased 29.8% organically in the quarter. The quarter marks the 19th consecutive period of organic growth for DY’s all other customers in aggregate, excluding the top five.
Dycom’s largest customer, Lumen, contributed 16.5% to total revenues and rallied 47.1% organically. This marks the seventh consecutive quarter of organic growth with Lumen. AT&T (the second-largest customer) contributed 12.8% to total revenues. Comcast contributed 9.8% (up 2.2%), while Verizon represented 9.2% of total revenues and increased 10.3% organically. The company’s fifth customer contributed to 6.1% of revenues and grew 94.9% organically. Fiber construction revenues from electric utilities were $98.9 million in the quarter. Dycom’s backlog at the fiscal third-quarter end totaled $6.613 billion, up from $6.207 billion in the prior quarter. Of the backlog, $3.831 billion is projected to be completed in the next 12 months.
Operating Highlights
Gross margin of 22% in the quarter expanded 358 basis points (bps) from the year-ago level.
Depreciation and amortization expenses of $42 million were up 20% year over year. General and administrative expenses of $87.5 million increased 11.1% year over year.
Adjusted EBITDA was $166.8 million during the quarter, up 45.5% year over year. Adjusted EBITDA margin of 14.7% expanded 370 bps from the year-ago level, given improved operating performance on the higher level of revenues in the quarter.
Financials
As of Oct 28, 2023, Dycom had liquidity of $464.1 million, including cash and cash equivalents worth $15.7 million (compared with $224.2 million on Jan 28, 2023). Long-term debt was $949.4 million at the fiscal third-quarter end, up from $807.4 million at the fiscal 2023-end.
Fiscal Q4 2024 Guidance
For the fiscal fourth quarter (ending Jan 27, 2023), management expects contract revenues to be in line with the year-ago quarter’s level. DY expects $50 million of acquired contract revenues for the quarter. The adjusted EBITDA margin is expected to increase 75-125 bps from the year-ago level. For the period, Dycom expects the effective tax rate to be 26% and diluted shares of 29.7 million. Interest expenses, net, is likely to be $15.1 million and amortization expenses to be $6.8 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Dycom Industries has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Dycom Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Dycom Industries, Inc. (DY) : 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.
|
2023-12-16
|
ARTLW
|
Norwegian Cruise Line Holdings Ltd. NCLH has performed exceptionally well so far this year, with the stock gaining 62.3% compared with the industry’s 25.1% growth. NCLH has been benefiting from strong demand and booking volume growth.
The Zacks Rank #3 (Hold) company’s earnings and sales in 2024 are likely to witness 57.9% and 9.1% year-over-year growth, respectively. However, Norwegian Cruise has been bearing the brunt of high expenses for quite some time now.
Let’s delve deeper.
Growth Drivers
The company is gaining from robust booking. As of Sep 30, 2023, advance ticket sales balance came in at $3.1 billion, reflecting nearly 59% rise from 2019 levels. It stated pricing levels to be elevated. Management intends to focus on strategic marketing efforts to drive demand and high-value bookings in the upcoming periods.
NCLH emphasizes its booking window to drive the top line. Along with evaluating the extent and willingness of consumers to spend on cruise travel the initiative provides better visibility for price increases and moderating marketing expenses. During the second quarter, the company extended its booking window 51 days (or 20% compared with 2019 levels) to enhance future visibility and reduce exposure to volatile bookings. It anticipates the indicator to be a driving factor in the upcoming periods.
Norwegian Cruise is constantly looking to expand its fleet size, which is currently at 31. It has plans to introduce six more ships through 2028. A majority of them are on order for the Norwegian Cruise Line, while the rest are for Oceania Cruises and Regent Seven Seas Cruises.
For the Oceania Cruises brand, the company has one Allura Class Ships to be delivered in 2025. For the Norwegian brand, it has four Prima Class Ships on order, with scheduled delivery dates from 2025 through 2028.
As expected before, the Regent brand welcomed its newest fleet addition, Seven Seas Grandeur, in November 2023. After this delivery, NCLH announced no specific delivery lined up until spring 2025. The company’s new build pipeline is likely to pave a path for approximately 50% capacity growth by 2028, registering a CAGR of approximately 5% (from 2019 levels).
Image Source: Zacks Investment Research
Concerns
Norwegian Cruise has been bearing the brunt of high expenses for quite some time now. During the third quarter of 2023, total cruise operating expenses were $1.48 billion, up from $1.24 billion a year ago. It reported a rise in payroll, fuel, direct variable costs of fully-operating ships along with delivery costs associated with new ship deliveries in 2022 and 2023.
Management anticipates inflation and global supply-chain constraints to pressurize margins in the near term. Also, it is cautious of increased expense in terms of fuel and capacity additions. For 2023, Norwegian Cruise anticipates total cruise operating expenses to rise 29.3% year over year to $5.52 billion.
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. RCL currently sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. Shares of RCL have surged 143.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 57.7% and 187.9%, respectively, from the year-ago levels.
Live Nation Entertainment, Inc. LYV flaunts a Zacks Rank #1 at present. It has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have gained 28.4% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS suggests a jump of 29.5% and 132.8%, respectively, from the prior-year numbers.
JAKKS Pacific, Inc. JAKK currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 61.8% on average. Shares of JAKK have climbed 107.9% in the past year.
The Zacks Consensus Estimate for JAKK’s 2024 sales implies an improvement of 3.6% from the year-earlier figures.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH) : 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.
|
2023-12-16
|
ARTLW
|
Domo DOMO is riding on an expanding clientele, driven by a strong demand for AI-powered software solutions. The Domo platform allows customers to increase their productivity and efficiency and deliver better business outcomes. This is driving adoption, thereby boosting top-line growth.
In the past month, Domo’s shares have returned 5.3% compared with the Zacks Computer & Technology sector’s rise of 3.7%. The recent availability of its data experience platform in Microsoft MSFT Azure Marketplace enhances its prospects. Businesses will now be able to avail it directly using Azure consumption commitment.
Domo’s customizable business cloud platform is already available on Amazon Web Services for users to analyze and act on data, optimizing daily activities and important business choices.
Domo, Inc. Price and Consensus
Domo, Inc. price-consensus-chart | Domo, Inc. Quote
Domo’s data experience platform is also available through marketplaces such as Zoom, Square, Talkwalker, Procore, and many more, which helps it reach a greater number of users.
Domo Rides on Strong Portfolio
Domo’s strong portfolio is helping it win market share in the AI domain.
The company provides the security and governance that businesses need to keep complete control over their data.
Domo was recently chosen by Edify.ai to help its construction, mining, energy, and manufacturing businesses with data safety and security.
Domo's strong partner base and robust portfolio are expected to drive top-line growth in the near term.
For the fourth quarter of fiscal 2024, Domo expects revenues between $79 million and $80 million. Non-GAAP net loss is expected in the range of 5 cents to 9 cents per share.
The Zacks Consensus Estimate for Domo’s revenues for the fourth quarter of 2024 is pegged at $79.46 million, indicating a decline of 0.2% year over year.
The consensus mark for the bottom line is pegged at a loss of 3 cents per share, narrower than 11 cents per share over the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Domo carries a Zacks Rank #3 (Hold).
A couple of top-ranked stocks in the broader technology sector are Flex FLEX and NetEase NTES, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flex shares have gained 37.9% in the year-to-date period. Flex’s long-term earnings growth rate is currently projected at 12.4%.
NetEase shares have gained 40.5% in the year-to-date period. NetEase's long-term earnings growth rate is currently projected at 15.9%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Domo, Inc. (DOMO) : 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.
|
2023-12-16
|
ARTLW
|
Nokia Corporation NOK recently signed a definitive agreement with Lumine Group Inc. to divest its Device and Service Management business platform. The transaction is valued at 185 million euros with provision for additional 35 million euros based on the first year’s performance post deal closure. The deal is anticipated to be completed by the first quarter of 2024, subject to mandatory approvals and compliance with regulatory requirements.
The strategic move aligns with the CNS (Cloud and Network Services) group’s strategy over the last two years that aims to achieve faster-than-market growth by establishing technology leadership in key areas. Nokia had sold its VitalQIP product and made Red Hat the main infrastructure platform for Nokia Core Network applications earlier this year.
The Device Management (DM) portfolio provides support to Communication Service Providers for the remote management of home broadband access devices and IoT sensors from various vendors. The Service Management platform (SMP) focuses on enhancements in customer care services. Currently, Nokia’s coverage includes more than 1 billion devices and 150 deployments worldwide.
The Device and Software Management platform businesses are consistent with Lumine's autonomous operating model. Lumine boasts solid telecom industry expertise with a robust balance sheet and market capitalization. Post-buyout, the DM and SMP businesses will function independently under the brand name Motive. The acquisition will significantly boost Lumine’s software portfolio offerings and will be in line with its strategy to invest in a long-term product roadmap. The agreement also accentuates Nokia’s strategic intent to optimize its CNS business portfolio. This involves driving investments toward strategic areas such as network as a code, Software as a Service (SaaS), private wireless and edge technologies and the development of the 5G core.
Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast. It is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, it is transforming the way people and things communicate and connect.
NOK aims to create new business and licensing opportunities in the consumer ecosystem. It facilitates customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation required to support dynamic operations, reduce complexity and improve efficiency. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
The stock has declined 29.9% in the past year against the industry’s gain of 7.3%.
Image Source: Zacks Investment Research
Nokia currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Model N Inc MODN, carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 20.78%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance. In the last reported quarter, it delivered an earnings surprise of 3.33%.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build cloud architecture and enhance their cloud experience. Arista delivered a trailing four-quarter average earnings surprise of 12%.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
NVIDIA Corporation NVDA, currently carrying a Zacks Rank #2, delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Nokia Corporation (NOK) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Model N, Inc. (MODN) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : 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.
|
2023-12-16
|
ARTLW
|
ArcelorMittal MT commissioned its Torero plant, designed to convert waste wood into bio-coal, a pivotal development in the steelmaking process at its Gent site. On Dec 18, the first bio-coal produced via torrefaction was successfully utilized in the Gent blast furnace. This groundbreaking initiative is projected to curtail annual carbon emissions from the facility by an impressive 112,500 tons by replacing fossil coal with this sustainable alternative.
The Torero plant is slated to convert 88,000 tons of waste wood into 37,500 tons of bio-coal annually. The utilization of bio-coal in the blast furnace will generate biogas, a resource slated for capture and conversion into ethanol at ArcelorMittal Gent's Steelanol facility. Marked as Europe's initial carbon capture and utilization (CCU) project, Steelanol commenced industrial ethanol production last month, marking significant progress toward the facility's full operational status.
The resulting ethanol holds the potential to serve as a fundamental ingredient for various chemical products, spanning transport fuels, paints, plastics, clothing and even fragrances, contributing substantially to the chemical sector's decarbonization efforts.
This innovative Torero project received backing from the European Union's Horizon 2020 Research and Innovation Framework Program. The project consortium involves key stakeholders across the value chain, encompassing industry giants like ArcelorMittal along with expert research entities like Joanneum Research, University of Graz and Chalmers Technical University, alongside Perpetual Next (formerly TorrCoal), the pioneers behind the carbonization process technology.
Aligned with ArcelorMittal Europe's ambitious goals, the company aims to slash CO2 emissions by 35% by 2030, eventually striving for carbon neutrality by 2050. This groundbreaking initiative marks a significant leap forward in their pursuit of sustainable, environmentally conscious steel production.
Shares of ArcelorMittal have gained 7.1% in the past year compared with a 32.1% rise of the industry.
Image Source: Zacks Investment Research
ArcelorMittal anticipates 1-2% year-over-year growth in global steel consumption (excluding China) for 2023. The company maintains a positive outlook on steel demand in the medium to long term. Capital expenditures for 2023 are projected in the range of $4.5-$5 billion. Strategic projects are expected to contribute an additional $1.3 billion in normalized EBITDA.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, sporting a Zacks Rank #1 (Strong Buy), and Hawkins, Inc HWKN and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AXTA’s current-year earnings is pegged at $1.58 per share, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, the average earnings surprise being 6.7%. The company’s shares have increased 29.7% in the past year.
The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised upward by 1.8% in the past 60 days. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 27.5%, on average. The stock has rallied around 80.8% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents per share, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 36.9% in the past year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
ArcelorMittal (MT) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : 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.
|
2023-12-16
|
ARTLW
|
MSCI MSCI is set to expand its footprint in the wealth management space, thanks to the recently announced acquisition of Fabric, which is expected to close in the first quarter of 2024.
Fabric offers a wealth technology platform that specializes in portfolio design, customization, and analytics for wealth managers and advisors. The platform is well-known for its rule-based portfolio construction tools and leverages the MSCI Multi-Asset Class Factor Model and MSCI Private Asset Model.
The MSCI-Fabric combination will help wealth managers and advisors to “consistently implement their investment guidance while meeting their client’s personal preferences and delivering customization at scale.”
The addition of Fabric’s rule-based portfolio construction tool will broaden MSCI’s market reach and expand the portfolio of solutions, which are expected to expand clientele including bothinstitutional and individual investors.
MSCI Inc Price and Consensus
MSCI Inc price-consensus-chart | MSCI Inc Quote
MSCI Rides on Strong Portfolio
MSCI gains from strong demand for custom and factor index modules, a recurring revenue business model, and the growing adoption of its ESG and Climate solutions in the investment process.
Acquisitions have played a significant role in shaping the company’s growth trajectory. In October, MSCI completed the acquisition of Burgiss. The deal offered it comprehensive data and deep expertise in all private assets. MSCI now has the world's largest and highest-quality private asset class database, covering more than $60 trillion of assets.
Moreover, the deal expanded MSCI’s robust suite of multi-asset class technology solutions with the industry-leading Burgiss Caissa platform. MSCI expects Burgiss to generate slightly above $90 million in revenues for 2023, with revenues of $22-$24 million expected in the fourth quarter.
The acquisition of Trove Research strengthens MSCI’s data capabilities on the voluntary carbon market, which it believes will play a significant role in helping institutional investors and companies reduce climate risks.
MSCI served more than 6500 clients as of Sep 30 in more than 90 countries. It benefits from a recurring revenue model (roughly 97% of the total revenues) and strong operating efficiency. However, the challenging macroeconomic environment and rising geopolitical prospects do not bode well for MSCI’s near-term prospects.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold).
MSCI shares have gained 16.1% year to date, underperforming the Zacks Computer & Technology sector’s return of 49.8%.
Ceridian HCM CDAY, Dropbox DBX and 8x8 EGHT are some better-ranked stocks in the broader sector, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Year to date, shares of Ceridian HCM and Dropbox have gained 3.8% and 33.1%, respectively. 8x8 shares have declined 20.1% over the same timeframe.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
MSCI Inc (MSCI) : Free Stock Analysis Report
8x8 Inc (EGHT) : Free Stock Analysis Report
Dropbox, Inc. (DBX) : Free Stock Analysis Report
Ceridian HCM (CDAY) : 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.
|
2023-12-16
|
ARTLW
|
Alphabet’s GOOGL Google recently unveiled an AI support assistant, enhancing its generative AI capabilities for virtual assistance.
Notably, the new support assistant allows users to chat with it to find answers and solve account issues, delivering a chatbot-like experience.
The chat window allows users to expand and ask questions, with the option to leave a thumb-up or down, view answer sources, and suggest follow-up questions. However, responses are not instantaneous and take a few seconds, and follow-up questions may not work.
We note that the latest move will likely aid Google in further penetrating the booming intelligent virtual assistant market.
Per the Grand View Research report, the global intelligent virtual assistant market size will witness a CAGR of 24.3% between 2023 and 2030.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Stiff Competition
The latest move is likely to aid Google’s competitive position against peers like Apple AAPL and Amazon AMZN, which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants.
Reportedly, Apple is working to add its AI-powered large language model Ajax GPT into its voice assistant Siri.
Also, Apple increased its AI research and development budget, focusing on creating conversational chatbot features for Siri.
Meanwhile, Amazon announced generative AI capabilities for its virtual assistant Alexa, optimizing voice interactions, real-time information, smart home control, and entertainment.
Amazon also introduced a new generative AI update, which will allow Alexa to resume conversations without a wake word, respond quickly, learn user preferences, field follow-up questions, change tone, and even offer opinions on Oscar-winning movies.
Generative AI Holds Promise
We mark the latest move as part of Alphabet’s growing efforts to integrate generative AI capabilities into its products and services.
Notably, Google launched MedLM, a family of generative AI models intended for the healthcare industry. MedLM, currently available to Vertex AI customers, includes two models offering medical documentation testing, drug development research and chatbot provider identification.
Further, the company unveiled Gemini 1.0, its next-generation foundation model, which can understand, code, and combine various media, enhancing reasoning and coding capabilities.
Additionally, Google is set to introduce an AI-powered “Help me write” feature to Chrome for Desktop use. This new AI feature can adjust its writing style, including "Shorten" or "Elaborate" options, as well as "Casual" or "Formal" options, with fewer options than Docs or Messages.
All the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.
Per an Allied Market Research report, the global generative AI market is expected to reach $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
Strength in the promising generative AI market will likely aid the Zacks Rank #3 (Hold) company to strengthen its overall financial performance in the upcoming period and instill investors’ optimism in the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
Alphabet has gained 56.8% on a year-to-date basis compared with the industry’s growth of 56.3%.
Moreover, growing generative AI capabilities position Alphabet well to compete with Microsoft MSFT, which is riding on the success of OpenAI's DALL-E 3 AI image-synthesis model that enhances complex descriptions and text generation.
In addition, Microsoft integrated Bing with DALL-E 3, improving renderings for details like fingers, eyes, and shadows and enhancing Bing Chat's search query capabilities by using users' previous chats for personalized responses.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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.
|
2023-12-16
|
ARTLW
|
By Vera Eckert, Jonathan Saul and Lisa Baertlein
FRANKFURT/ATHENS/LONDON/LOS ANGELES, Dec 21 (Reuters) - Germany's Hapag-Lloyd and Hong Kong's OOCL said on Thursday they would avoid the Red Sea, the latest shipping companies to do so after attacks by Yemen's Houthi group on vessels disrupted global trade, prompting the establishment of a naval task force.
The hostilities have put a chokehold on ship passages through the Suez Canal, which handles about 12% of worldwide trade. The Suez Canal is most vital to the movement of goods between Asia and Europe, but global logistics executives warned that sending ships on alternate routes could roil global supply chains, causing backups at ports and shortages of vessels, containers and equipment that are suddenly in the wrong place.
Hapag-Lloyd said it would reroute 25 ships by the end of the year from the key waterway as freight rates and shipping stocks have increased because of the disruption. Avoiding the Red Sea and Suez Canal means following a far longer route around Africa.
The Iran-aligned Houthis, who control much of Yemen, have been attacking ships passing through the Bab al-Mandab Strait at the southern end of the Red Sea for weeks in what they say is a response to Israel's war in Gaza.
Traders are meanwhile scrambling to find workarounds, including air flights, to get consumer goods to retailers, with journeys around Africa adding roughly 10-14 days extra to voyage times.
"Up to this moment, we have guided OOCL-operated vessels to either divert route or suspend sailing to Red Sea," Hong Kong-headquartered container group OOCL told Reuters in a statement on Thursday, the first time it had confirmed pausing sailings.
A crisis at a single point in the supply chain can cause ships to bunch up, upending arrival and departure schedules at seaports and cascading delays throughout the system, said Christian Sur, executive vice president of ocean freight at Unique Logistics.
The cost to ship a container from China to the Mediterranean was up 44% in December alone to reach $2,413, due to the Red Sea disruptions, Freightos CRGO.O said earlier this week.
If the conflict persists or intensifies those so-called "spot" prices for cargo that isn't under contract "could double or triple from current levels," Sur said.
Global furniture seller IKEA is among the shippers warning of potential cargo delays and product shortages. Elsewhere, Finnish elevator maker Kone KNEBV.HE estimated that some shipments could be delayed by two to three weeks.
While goods that travel by container, including apparel, toys and food, are most at risk - other products are being affected.
U.S. soybean exporters, who were already switching shipments from the drought-stricken Panama Canal to the Suez Canal, are weighing whether to start putting crops on trains to the West Coast to access ships that go directly to China and other Asian markets to avoid significantly longer alternate voyages around South America or Africa.
"You've got all these imperfect options available," Mike Steenhoek, executive director of the Soy Transportation Coalition.
Analysts warned that some retailers could start running low on some goods by February, though after the COVID-19 pandemic more companies have sought resilience in supply chains by buying from exporters in different regions.
"We are more experienced having gone thru COVID," said Sur, whose firm counts retailers among its clients.
COALITION
Greece said on Thursday it would send a naval frigate to the area to help protect shipping as part of a multinational coalition announced by the United States to ensure safe passage through the waterway.
Greek ship-owners control about 20% of the world's commercial vessels in terms of carrying capacity.
However, several countries the United States said would join the coalition have signalled they do not expect to send much naval power to the region while Saudi Arabia, which borders the Red Sea, was not listed as taking part.
The Houthi leader has meanwhile threatened to escalate attacks to include U.S. naval ships, raising the prospect of a wider conflict around the Bab al-Mandab strait.
A Hapag-Lloyd spokesperson said one of the company's ships, the Al Jasrah, was attacked near Yemen on Dec. 15 on its way to Singapore and the company would take more decisions on routes by the end of the year.
The spokesperson said the company had received no detailed information about the U.S.-led naval coalition aimed at protecting Red Sea shipping.
Stabilising the critical waterways will be vital to ensure that shipping traffic can fully resume, ocean transportation executives said.
The fallout is also being felt directly in Israel. OCCL said on Saturday that "due to operational issues," it would stop accepting cargo to and from Israel until further notice.
Israel's most southern port of Eilat has seen an 85% drop in activity since Houthi attacks stepped up, the port's chief executive said on Thursday.
(Reporting by Helen Reid, Vera Eckert, Lefteris Papdimas and Jonathan Saul; additional reporting by Elviira Luoma; writing by Angus McDowall; editing by Jonathan Oatis and Diane Craft)
((angus.mcdowall@thomsonreuters.com; Reuters Messaging: angus.mcdowall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-16
|
ARTLW
|
Match Group MTCH expanded its Tinder Select subscription plan offering for selected users.
Notably, Tinder Select, an elite subscription tier priced at $499 per month, offers exclusive search and matching features to less than 1% of highly active users.
Further, it offers users perks like access to "most sought after profiles," direct messaging, early access to new features, advertisement-free browsing, and a badge announcing their SELECT status.
To join the new tier of online dating, daters must first apply, meet strict criteria, and have a profile with listed interests, four pictures, a 15-character bio, and stated relationship goals.
Match Group is expected to gain solid traction across millennials and Gen Z users on the back of its latest move.
Match Group Inc. Price and Consensus
Match Group Inc. price-consensus-chart | Match Group Inc. Quote
Expanding Tinder Offerings
Apart from the latest launch, Tinder launched a new suite of profile and discovery features like Profile Prompts, Profile Quiz, Basic Info Tags, Rizz-first Redesign and Dark Mode features, catering to the modern and diverse dating needs of the Gen Z generation.
Further, Tinder partnered with HelloFresh to offer an exclusive Date Night Delights recipe series and a limited-edition collection of Forking Seasonings to help new couples create deeper connections in the kitchen, aiming to make their first shared meals unforgettable.
Additionally, Match Group announced the re-launch of Desk Mode, a feature from Tinder that lets users swipe through Tinder from their desktop, presumably at the office and allows them to quickly hide their activities.
All the above-mentioned endeavors bode well for Match Group’s increasing efforts to bolster Tinder’s performance, which is the major revenue source for Match Group.
In third-quarter 2023, direct revenues from Tinder were up 11% year over year to $509 million. Tinder’s revenue per person (RPP) rose 18% year over year to $16.28, driven by pricing optimizations and new weekly subscription packages.
For fourth-quarter, 2023, Match Group expects Tinder revenues to grow 11%, driven by higher year-over-year growth in RPP. The Zacks Consensus Estimate is pegged at $495.56 million.
Growth Prospects & Competitive Scenario
Match Group’s growing Tinder efforts position it well to capitalize on the growing adoption of online dating apps. This, in turn, will solidify its position as an industry leader in the global online dating market.
Per a Grand View Research report, the global online dating apps market is expected to witness a compound annual growth rate (CAGR) of 7.6% from 2023 to 2030.
Per Statista report, the online dating market is expected to reach $3.46 billion by 2028, exhibiting a CAGR of 3.03% between 2023 and 2028.
We believe that the company’s growing prospects in these promising markets will help it win investors’ confidence in the days ahead.
However, Tinder is facing stiff competition from big and small players like Bumble BMBL, which is also making every effort to capitalize on the growth prospects in the online dating space. This is acting as a major headwind for the company.
MTCH has lost 17.6% on a year-to-date basis against the industry’s growth of 56.4%.
Earlier this year, Bumble acquired Official, an app designed to enhance couples' relationships through mood check-ins and date planning, as part of its strategy to strengthen the love ecosystem.
Zacks Rank & Key Picks
Currently, Match Group carries a Zacks Rank #3 (Hold).
Investors interested in the broader retail-wholesale sector can consider some better-ranked stocks like Amazon AMZN and Expedia Group EXPE. While AMZN currently sports a Zacks Rank #1 (Strong Buy), EXPE carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amazon’s shares have gained 81.1% in the year-to-date period. The long-term earnings growth rate for AMZN is currently estimated at 29.40%.
Expedia Group’s shares have gained 69.5% in the year-to-date period. EXPE’s long-term earnings growth rate is currently projected at 25.31%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Match Group Inc. (MTCH) : Free Stock Analysis Report
Bumble Inc. (BMBL) : 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.
|
2023-12-16
|
ARTLW
|
Roku (NASDAQ: ROKU) is a market leader in an expanding industry, but this doesn't mean that the shares can pop tenfold in the next 10 years. The starting line is kind right now. Roku may have more than doubled this year, but the shares are still trading for less than a fifth of the all-time high hit in the summer of 2021.
The share count is only marginally higher now. In short, the market perception of Roku's fundamentals would have to return to where it was two years ago, and then double from there. This can definitely happen in the next 10 years, especially as Roku is showing clear signs of overcoming the bearish knocks on the streaming media pioneer.
Getting louder
There was a lot to like in Roku's latest quarterly update, a well-received report that catapulted the stock a blistering 75% higher in November. A lot of the negatives weighing on the platform's success -- slowing revenue growth and declining average revenue per user (ARPU) -- went away. The 20% top-line growth it posted was the biggest year-over-year gain since the first quarter of 2022. It was also the third consecutive report of sharply accelerating revenue growth.
Q4 2022: 0.2% revenue growth
Q1 2023: 1%
Q2 2023: 10.8%
Q3 2023: 19.8%
ARPU also turned positive sequentially for the first time in more than a year. This is a pretty big deal. Active accounts have grown consistently. Engagement has also been steady, as streaming hours continue to keep up and at times exceed user growth. The hiccup in monetization was a setback in the connected TV advertising market. Roku is finally turning the corner on that front, and as the marketing platform gets more interactive, it should become even more lucrative.
Image source: Getty Images.
The state of streaming circa 2033
A lot can happen in the next 10 years. Roku is currently the industry leader, and it has padded its lead against the tech, consumer tech, and e-commerce giants that it competes against in this popular niche. No market leader is obviously a lock to still be in the pole position a decade from now, but Roku has achieved ubiquity in the world of streaming service stocks. There were 75.8 million active accounts on Roku at the end of September, a 16% increase over the past year.
Despite its leadership in an important field, Roku commands a modest market cap of $12.7 billion. Its rich net-cash position pushes its enterprise value down to less than $11.4 billion. As the gateway of choice to streaming on TV, Roku has many roads to a 12-figure market cap by 2033.
Growing its audience is one path to a more valuable Roku, and the roadmap is already there. Roku has become the top platform in Mexico and Canada. It is expanding deeper into Latin America, and its push into the United Kingdom is the first step of establishing a presence in Europe and beyond. The platform itself can also become more lucrative. Roku has generated an average of $41.03 in revenue per user over the past four quarters, and the ceiling is high. Marketers need to reach Roku's growing audience, and the platform keeps evolving its offering to make it easier for advertisers to stand out and establish direct connections with interested viewers.
Then we get to Roku's current lack of profitability, the last remaining ace card for the naysayers. Roku was briefly profitable for six quarters through the end of 2021, perhaps not coincidentally the year when the shares hit an all-time high just above $490. It has rattled off seven straight quarters in the red since then, and that's not expected to change anytime soon. Analysts don't see Roku returning to profitability until 2027. Investing in content, expansion, and new product lines has weighed on the bottom line, but things are getting better. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) just turned positive after more than a year of negative results. Analysts also see its annual deficit more than halved in 2024. Roku is getting the balance right between investing in growth and controlling costs to give bulls the ammo they need to finally vanquish the bears.
This has been a good year for Roku. The next 10 years could be even better.
Should you invest $1,000 in Roku right now?
Before you buy stock in Roku, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Roku wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Rick Munarriz has positions in Roku. The Motley Fool has positions in and recommends Roku. 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.
|
2023-12-16
|
ARTLW
|
QuidelOrtho Corporation QDEL recently announced the receipt of the FDA’s 510(K) clearance for its Savanna PCR (polymerization chain reaction) platform and Savanna HSV 1+2/VZV in vitro diagnostic test. The clearance is for the detection and differentiation of Herpes simplex virus type 1 (HSV-1), Herpes simplex virus type 2 (HSV-2) and Varicella-zoster virus (VZV) nucleic acids isolated and purified from swabs obtained from cutaneous or mucocutaneous lesion specimens obtained from symptomatic patients.
Per QuidelOrtho, the Savanna HSV 1+2/VZV test panel is intended to aid in the differential diagnosis of infections with these viruses. Management had aimed to make Savanna available to professional customers on Dec 20, 2023.
The latest regulatory approval is likely to significantly boost QuidelOrtho’s Molecular Diagnostics business unit across the United States.
Significance of the Approval
The receipt of the FDA’s clearance will allow QuidelOrtho to market and sell the Savanna multiplex molecular platform and the Savanna HSV 1+2/VZV assay to laboratories performing moderate or high-complexity diagnostic testing in the United States. Per the company, as Savanna will likely deliver results in a few minutes, this will likely improve clinical care, provide cost savings and deliver sample-to-result molecular testing across all laboratory settings.
Per management, the Savanna platform, with its powerful set of features, is expected to make it a suitable tool for syndromic testing in hospitals and moderate-complexity labs. Management also aims to eventually access physician offices, urgent care clinics and other point-of-care locations.
Industry Prospects
Per a report by Precedence Research, the global diagnostic testing market was valued at $165.58 billion in 2021 and is anticipated to exceed $348.75 billion by 2030 at a CAGR of approximately 8.6%. Factors like the increasing use of point-of-care diagnostic products, growing focus on preventive care and the rising elderly population leading to an increase in the chance of developing a wide range of illnesses (including diabetes) are likely to drive the market.
Given the market potential, the latest regulatory clearance will likely provide a significant impetus to QuidelOrtho’s business.
Notable Developments
Last month, QuidelOrtho reported its third-quarter 2023 results, wherein it registered an uptick in its Non-Respiratory revenues. It also recorded robust revenues from its Labs and Transfusion Medicine segments and China and Other regions. QuidelOrtho also witnessed strong revenue growth in the Europe, the Middle East and Africa region on a reported basis. Solid revenues from its Instrument and Recurring revenue categories were also seen. The continued uptick in Sofia instruments and growth in QuidelOrtho’s integrated installed base and automation were encouraging.
In September, QuidelOrtho announced that it had been granted a CLIA Waiver by the FDA, which applied to its new Sofia 2 SARS Antigen+ FIA (fluorescent immunoassay).
Price Performance
Shares of the company have lost 17.9% in the past year compared with the industry’s 2.4% decline. The S&P 500 has witnessed 23.7% growth in the said time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, QuidelOrtho carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and Integer Holdings Corporation ITGR.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 41.5% compared with the industry’s 7.6% rise in the past year.
HealthEquity, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 27.5%. HQY’s earnings surpassed estimates in all the trailing four quarters, with an average of 16.5%.
HealthEquity has gained 6.1% against the industry’s 8.8% decline over the past year.
Integer Holdings, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
Integer Holdings’ shares have rallied 43.9% compared with the industry’s 1.9% rise in the past year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
DaVita Inc. (DVA) : Free Stock Analysis Report
QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : 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.
|
2023-12-16
|
ARTLW
|
BlackBerry Limited BB reported third-quarter fiscal 2024 (ended Nov 30) adjusted earnings per share (EPS) of 1 cent. In the prior-year quarter, it incurred a non-GAAP loss of 5 cents. The Zacks Consensus Estimate was pegged at a loss of 1 cent.
Quarterly total revenues were $175 million compared with the prior-quarter revenues of $169 million. The company’s revenues missed the Zacks Consensus Estimate by 12.2%. Revenues benefited from solid demand for its solution across the advanced driver assistance systems market.
The company expects fiscal fourth-quarter total revenues in the range of $150-$159 million. For the Cybersecurity business, revenues are estimated to be in the range of $83-$88 million for the fiscal fourth quarter. The company expects revenues to be affected due to the reassessment of the likelihood, size, and timing of some of the large government deals.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
For the Internet of Things (IoT) business, revenues are now projected to be in the band of $62-$66 million. The company expects the UAW labor disputes to hamper production volumes for some of its largest customers. Licensing & Other revenues are expected to be approximately $5 million.
Following the announcement, the company’s shares were down 5.7% in the pre-market trading on Dec 21, 2023. The stock has gained 19.5% in the past year compared with the sub-industry’s growth of 56.3%.
Image Source: Zacks Investment Research
Quarter in Details
Revenues from the Cybersecurity business totaled $114 million, up 8% year over year. Revenues were driven by securing large strategic deals with leading government agencies.
Revenues from the IoT business totaled $55 million, up 8% year over year.
Licensing and Other contributed $6 million, down from $12 million a year ago.
Recently, BlackBerry announced the appointment of John J. Giamatteo as its new chief executive officer and as a member of its board of directors with immediate effect. Also, the company added that it will separate the IoT and Cybersecurity businesses into standalone entities but will no longer pursue an IPO of the IoT business.
BlackBerry announced that the U.S. Department of Homeland Security has granted it a seven-year Indefinite Delivery, Indefinite Quantity contract.
Other Details
Gross profit increased 16.5% from the year-ago quarter to $127 million. Gross margin improved to 72.5% from 64.5% reported in the prior-year quarter.
However, non-GAAP gross margin increased 900 basis points to 73% on a year-over-year basis.
Total non-GAAP operating expenses were $115 million, down 16.1%. Adjusted operating income was $13 million compared with $28 million a year ago.
Adjusted EBITDA came in at $18 million against an adjusted EBITDA loss of $22 million reported in the year-ago quarter.
Cash Flow & Liquidity
For the nine months ended Nov 30, 2023, BlackBerry generated $12 million of net cash in operating activities against $253 million of cash used in the comparable period in fiscal 2023.
As of Nov 30, 2023, BlackBerry had $210 million in cash and cash equivalents.
Zacks Rank & Stocks to Consider
At present, BlackBerry carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have soared 51% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.
Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 19.8% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08. Watts Water’s long-term earnings growth rate is 7.8%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Flex Ltd. (FLEX) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : Free Stock Analysis Report
BlackBerry Limited (BB) : 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.
|
2023-12-16
|
ARTLW
|
Schneider National, Inc. (SNDR) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Below par performance in the Truckload (due to lower network price), Intermodal (due to lower volume and revenue per order) and Logistics (due to a decline in revenue per order impacted by lower spot prices and a decrease in brokerage volume) segments is hurting Schneider’s top line. Notably, Schneider's third-quarter 2023 revenues of $1,352 million lagged the Zacks Consensus Estimate of $1,396.5 million and fell 19.3% year over year. Revenues (excluding fuel surcharge) decreased 18% to $1,179.4 million. The downside was owing to weakness across all segments.
Additionally, the lower outlook for 2023 looks disappointing. Schneider’s board has decreased its 2023 adjusted earnings per share guidance in the range of $1.40-$1.45 (prior view: $1.75-$1.90).
Despite such headwinds, SNDR’s consistent efforts to reward its shareholders via dividends and share buybacks are encouraging. In February 2023, the company's board approved a 12.5% hike in its quarterly cash dividend to 9 cents per share on its Class A and Class B common stock. Such moves instill investors’ confidence in the stock.
In February 2023, SNDR announced the approval of a $150 million stock repurchase program. As of Sep 30, 2023, SNDR has repurchased shares worth $50.6 million under the program and paid $47.7 million in the form of dividends to shareholders year to date.
Such moves boost investors’ confidence and positively impact the company’s bottom line. So far this year, shares of Schneider have gained 6.8% compared with 2.3% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Schneider carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 26.1% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 38.9% over the past 90 days. Shares of SKYW have surged 209.7% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
Schneider National, Inc. (SNDR) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Hibbett (HIBB). Shares have added about 17.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Hibbett due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Hibbett Beats Q3 Earnings Estimates, Raises EPS View
Hibbett posted third-quarter fiscal 2024 results, wherein earnings and sales surpassed the Zacks Consensus Estimate. The bottom line increased year over year, while the top line declined. The company attributes its solid results to the consistent execution of its business strategy, indicating the effectiveness of its approach in a challenging retail environment.
Quarterly Highlights
Hibbett's adjusted earnings of $2.05 per share increased 5.7% from the $1.94 reported in the prior-year quarter. Also, the figure surpassed the Zacks Consensus Estimate of $1.13 per share.
Net sales fell 0.3% year over year to $431.9 million for the quarter under review. However, the figure beat the Zacks Consensus Estimate of $416 million.
Comparable sales declined 2.7% year over year and lagged our estimate of a 7% decline. Brick-and-mortar comparable sales specifically experienced a 5.4% decrease on a year-over-year basis, whereas e-commerce sales demonstrated a noteworthy increase of 12.6%.
The gross profit decreased 1.6% year over year to $146.3 million for the reported quarter, which beat our estimate of $137.6 million. Meanwhile, the gross margin contracted 40 basis points (bps) to 33.9%, driven by a decrease in the average product margin, which was roughly 130 basis points lower than the previous year. Also, the decrease was largely influenced by increased promotional activity in footwear and apparel.
Furthermore, the slight year-over-year sales decrease led to the deleverage of store occupancy costs, accounting for the gross margin decline. Despite these unfavorable factors, there was partial mitigation through lower freight, shipping, shrink and logistics expenses in comparison to the year-ago period.
Operating income was $34.5 million, up 0.9% year over year. The metric surpassed our estimate of $20.9 million. Meanwhile, the operating margin expanded 10 bps to 8% for the reported quarter.
Store operating, selling and administrative expenses, as a percentage of sales, contracted 90 bps to 23% due to its sustained efforts in expense management. This includes enhancing the efficiency of store labor and making strategic reductions in discretionary expense categories like professional fees and advertising.
Other Financials
As of Oct 28, Hibbett had $29.6 million in cash and cash equivalents, and $96.9 million of debt outstanding on its $160.0-million unsecured line of credit. In the fiscal third quarter, Hibbett repurchased 707,621 shares for $32 million. Management paid out a quarterly dividend of 25 cents per share.
FY2024 Guidance
Management retained its fiscal 2024 net sales view. Hibbett expects net sales between flat and a 2% rise. The company anticipates comparable sales and in-store comps to decline in the low-single digits each, and e-commerce sales to be flat to up in the low-single digits. It was slightly higher than the previous guidance of a low-single-digit decline.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Hibbett has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Hibbett has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Hibbett is part of the Zacks Retail - Apparel and Shoes industry. Over the past month, Capri Holdings (CPRI), a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended September 2023 more than a month ago.
Capri Holdings reported revenues of $1.29 billion in the last reported quarter, representing a year-over-year change of -8.6%. EPS of $1.13 for the same period compares with $1.79 a year ago.
Capri Holdings is expected to post earnings of $1.85 per share for the current quarter, representing a year-over-year change of +0.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
Capri Holdings has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Hibbett, Inc. (HIBB) : Free Stock Analysis Report
Capri Holdings Limited (CPRI) : 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.
|
2023-12-16
|
ARTLW
|
Alliant Energy’s LNT investment in regulated natural gas and renewable energy assets and expanding customer base will further boost its bottom line. Given its growth opportunities and strong dividend history, LNT makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for LNT’s 2023 earnings per share (“EPS”) is pegged at $2.87, indicating a year-over-year increase of 2.5%.
The same for sales is pinned at $4.32 billion, indicating a year-over-year improvement of 2.67%.
LNT’s long-term (three- to five-year) earnings growth rate is 6.26%.
Dividend History
The regulated nature of Alliant Energy's operation boosts its earnings potential, enabling the company to increase its annual dividend rate for more than a decade. LNT has paid out dividends since 1946 without fail. Currently, its quarterly dividend is 45.25 cents per share, resulting in an annualized dividend of $1.81. The company’s current dividend yield is 3.53%, better than the Zacks S&P 500 Composite's average of 1.62%. Subject to the approval of its board of directors, Alliant Energy's dividend target for 2024 is $1.92, which reflects a 6% increase from the 2023 level.
Return on Equity
Return on equity (“ROE”) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Alliant Energy’s ROE is 10.93%, higher than the industry’s average of 10.06%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Systematic Investments
Alliant Energy plans to invest substantially over the next four years to strengthen the electric and gas distribution network and add natural gas and renewable assets to the generation portfolio. It plans to invest $9.1 billion between 2024 and 2027.
LNT is completing major construction projects on time and at or below budget. A constructive regulatory environment will enable the company to recover capital expenditures. Its strong and flexible investment plans will support an 8% base CAGR between 2024 and 2027.
Price Performance
In the past month, Alliant Energy’s shares have rallied 1.4% compared with the industry’s average growth of 3.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are ALLETE Inc. ALE, ONE Gas OGS and NextEra Energy, Inc. NEE, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ALLETE, ONE Gas and NextEra’s long-term earnings growth rates are pegged at 8.1%, 5% and 8.2%, respectively.
The Zacks Consensus Estimate for ALLETE, ONE Gas and NextEra Energy’s 2023 EPS implies year-over-year growth of 28.4%, 1.23% and 7.59%, respectively.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Alliant Energy Corporation (LNT) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
ONE Gas, Inc. (OGS) : 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.
|
2023-12-16
|
ARTLW
|
It has been about a month since the last earnings report for Dick's Sporting Goods (DKS). Shares have added about 19.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dick's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
DICK'S Sporting Q3 Earnings & Sales Beat Estimates
DICK'S Sporting posted third-quarter fiscal 2023 results, wherein the top and bottom lines beat the Zacks Consensus Estimate and improved year over year. Despite the challenging macro-economic environment, the company has been benefiting from the strong back-to-school season and continued market share gains. It is on track with business optimization to streamline the overall cost structure.
Q3 in Detail
Adjusted earnings were $2.85 per share in the fiscal third quarter, up 10% from the prior-year figure of $2.60. Also, the metric beat the Zacks Consensus Estimate of $2.42 per share.
Net sales of $3,042 million improved 2.8% year over year and surpassed the Zacks Consensus Estimate of $2,956 million. The upside can be attributable to strong comparable store sales (comps) and healthy transaction growth.
Consolidated comps grew 1.7% year over year. However, the figure lagged our estimate of 2.1% growth. This was driven by higher transactions and average ticket.
Gross profit rose 4.8% year over year to $1,061 million and came ahead of our estimate of $1,048.2 million. Meanwhile, the margin expanded 67 basis points (bps) year over year to 34.9% in the fiscal third quarter.
In the fiscal third quarter, the SG&A expense rate of 25.5% expanded 254 bps year over year. SG&A expenses, in dollar terms, increased 14% to $776 million and beat our estimate of $763.9 million.
Financial Aspects
DICK’S Sporting ended the fiscal third quarter with cash and cash equivalents of $1,406.2 million, and no borrowings under the $1.6-billion revolving credit. Total inventory fell 2.3% year over year to $3,282.9 million as of Oct 29, 2023.
On Nov 20, 2023, the board authorized and declared a quarterly dividend of $1.00 per share on the company's common stock and Class B common stock. The dividend is payable Dec 29, 2023, to stockholders of record at the close of business on Dec 15, 2023.
The company repurchased 3.5 million shares of its common stock for $388 million under its share repurchase program. As of Oct 28, 2023, it has $780 million remaining under its authorization.
As of Oct 28, 2023, net capital expenditure amounted to $409.5 million. DICK’S Sporting projects capital expenditure of $670-$720 million on a gross basis and $550-$600 million on a net basis for fiscal 2023.
Guidance
Driven by the impressive quarterly results, management has revised its fiscal 2023 view. For fiscal 2023, the company expects comps growth of 0.5-2%, in sync with our estimate of 1.9% growth.
DKS envisions adjusted earnings of $12.00-$12.06 compared with the earlier stated $11.33-$12.13 per share and our estimate of $11.70. The adjusted earnings view assumes 86 million shares outstanding as of fiscal 2023. Also, the company’s effective tax rate is expected to be 21%.
Store Update
In the reported quarter, the company opened two DICK'S House of Sport stores. The total store count came in at 725, including 104 Golf Galaxy stores, seven Public Lands stores and 17 Going Going Gone! Stores, as of Oct 28, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Dick's has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dick's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Dick's is part of the Zacks Retail - Miscellaneous industry. Over the past month, ODP Corp. (ODP), a stock from the same industry, has gained 10.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
ODP Corp. reported revenues of $2.01 billion in the last reported quarter, representing a year-over-year change of -7.5%. EPS of $1.88 for the same period compares with $1.48 a year ago.
For the current quarter, ODP Corp. is expected to post earnings of $0.72 per share, indicating a change of -15.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
ODP Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
The ODP Corporation (ODP) : 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.
|
2023-12-16
|
ARTLW
|
Cadence Design Systems CDNS announced that Wistron has adopted an AI-powered electromagnetic in-design analysis workflow. Wistron used Cadence's Optimality Intelligent System Explorer and Clarity 3D Solver to create an 800G network switch.
Wistron has significantly enhanced design reliability and improved its turnaround time with Optimality Explorer’s AI-driven optimization technology and the Clarity 3D Solver. The Clarity 3D Solver stands out for its speed and scalability, analyzing intricate systems without sacrificing precision.
The Optimality Explorer is a generative AI-driven, in-design multiphysics system analysis and optimization solution that enables engineers to achieve configurations that lead to shorter, more efficient design cycles.
Cadence Design Systems, Inc. Price and Consensus
Cadence Design Systems, Inc. price-consensus-chart | Cadence Design Systems, Inc. Quote
Cadence is dedicated to developing software that tackles multiphysics challenges in complex electronic systems, addressing scaling demands. Wistron's adoption of Cadence's multiphysics system analysis tools accelerates design throughput and engineering turnaround time.
Cadence offers products and tools that help customers to design electronic products. The company continues to invest heavily in verification and digital design products, allowing it to launch products that address the ever-growing needs of electronics and semiconductor companies. Going ahead, the company is likely to gain from clients increasing their research and development spending in AI-driven automation.
In December, the company announced that Samsung Foundry had completed the development of a 5G networking System on Chip design using Samsung's 5LPE technology, powered by Cadence Quantus Extraction Solution and Tempus Timing Solution.
Prior to that, the company joined forces with Autodesk to expedite the development of intelligent systems. This collaboration integrates Autodesk Fusion with Cadence's Allegro X and OrCAD X platforms to facilitate two-way communication between PCB designers and mechanical engineers.
CDNS currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 67.4% compared with the Zacks sub-industry’s growth of 56.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have soared 51% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.
Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 19.8% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08. Watts Water’s long-term earnings growth rate is 7.8%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Flex Ltd. (FLEX) : Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : 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.
|
2023-12-16
|
ARTLW
|
Johnson Controls International plc JCI has failed to impress investors with its recent operational performance due to weakness in the Global Products and Building Solutions Asia Pacific segments, rising costs and foreign-currency headwinds. These factors are likely to impede JCI’s earnings in the quarters ahead.
Let’s discuss the factors that might continue taking a toll on this Zacks Rank #4 (Sell) company.
Business Weakness: The slowdown in the residential market has been weighing on the Global Products segment. The segment’s revenues declined 2% year over year in the fourth quarter of fiscal 2023 (ended September 2023). Also, in the face of challenging market conditions in China, the Building Solutions Asia Pacific segment’s Install business experienced a significant downturn in the fiscal fourth quarter. Due to this reason, the segment’s sales plummeted 7.2% in the final quarter of fiscal 2023.
Steep Costs: Over time, JCI has been coping with the adverse impacts of the high cost of sales. In fiscal 2023, the company’s cost of sales increased 5.1% year over year. High commodity prices due to inflationary pressure are pushing up the cost of sales.
Forex Woes: Given its widespread presence in international markets, Johnson Controls is exposed to unfavorable foreign currency movements. Adverse foreign currency translations impacted the company’s top line to the tune of $616 million in fiscal 2023.
Potential Risks from Competition: Johnson Controls’ products and operations are excessively reliant on information technology infrastructure, creating increased cyber security risks, which could materially impact its competitive position. Moreover, stiff competition from other building systems providers is a hindrance for Johnson Controls.
Southbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for JCI’s fiscal 2024 (ending September 2024) earnings has been revised 6.5% downward.
Price Performance: Shares of the company have declined 14.6% in the past year against the industry’s 2% increase.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Flowserve Corporation FLS presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has increased 2.5%. The stock has risen 35.3% in the past year.
Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 13.9%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has increased 3.3% in the past 60 days. Shares of Applied Industrial have jumped 36.2% in the past year.
A. O. Smith Corporation AOS currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the Zacks Consensus Estimate for A. O. Smith’s 2023 earnings has improved 4.7%. The stock has risen 42.7% in the past year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Johnson Controls International plc (JCI) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Flowserve Corporation (FLS) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : 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.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.