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Vishay Intertechnology, American Campus Communities, Boeing, CrowdStrike and Lennar Corp highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – March 17, 2021 – Zacks Equity Research Shares of Vishay Intertechnology, Inc. (VSH - Free Report) as the Bull of the Day, American Campus Communities, Inc. as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Boeing Company (BA - Free Report) , CrowdStrike Holdings, Inc. (CRWD - Free Report) and Lennar Corporation (LEN - Free Report) .
Vishay Intertechnology manufactures discrete semiconductors and passive components and it’s expected to have a bounce-back year in 2021 after it posted strong results to end FY20. VSH stock has also managed to hit new 52-week highs amid a recent string of tech selling. And at $25 a share, Vishay’s price tag, along with some of its other fundamentals might make it an enticing buy.
Vishay’s Elevator Pitch
Vishay is a manufacturer of discrete semiconductors that include diodes, rectifiers, and more, as well as passive electronic components that range from resistors to capacitors. VSH’s discrete semiconductors perform more basic electronic functions that are vital and used in countless devices and equipment. The company is exposed to growth within the computing world, the automotive and telecommunications industries, the aerospace sector, and many other areas.
The Pennsylvania-based firm aims to be a “one-stop shop” service and its successful acquisitions and innovations have helped it become one of the world's largest manufacturers of discrete semiconductors and passive components. Vishay topped our Q4 revenue estimates in early February and it matched our bottom-line projection—after it had crushed our EPS projections by a 70% average in the previous three quarters.
VSH’s revenue jumped over 9% to beat Q3’s 2% expansion that saw it return to growth after five straight periods of declining sales. This is hardly unusual in the historically cyclical world of semiconductors, impacting giants like Nvidia. And Vishay’s outlook appears strong for 2021 and beyond.
Other Fundamentals
As we touched on at the outset, VSH hit new 52-week highs on Tuesday of $25.22 a share, even as many other tech stocks rest below their mid-February records. The stock was subject to some selling recently, but it quickly recovered from an early March pullback.
The nearby chart shows that Vishay shares have more than double their industry over the last six months, up roughly 60%. This run is part of a 90% climb over the past year to match the Semiconductor market.
Investors should note that VSH has lagged the broader tech sector over the last five years, up 100% vs. 150%. But the stock has managed to match the S&P 500 during this stretch.
Along with its solid performance that does include some significant ups and downs, it provides solid value compared to its industry. At 1.2X forward 12-month sales, VSH trades at a discount to its own year-long highs and well beneath its industry’s 5X average.
The company’s valuation is even better when we look at forward earnings, with it trading at a 30% discount to its industry and a 15% discount to its own year-long highs despite its stock sitting at new highs. VSH also sits below overbought levels (70 or higher) in terms of RSI at 58.
Vishay is part of the Semiconductor – Discretes space that is in the top 10% of our 250 Zacks industries at the moment. The stock also rocks an “A” grade for Value and a “B” for Growth in our Style Scores system.
Plus, the company’s dividend is currently yielding 1.52%. This tops its industry’s 1.42% average and the S&P 500’s, while coming in just below the recently-climbing 10-year U.S. Treasury.
Bottom Line
Zacks estimates call for the company’s revenue to climb over 18% in 2021 and another 5% in FY22 to reach $3.10 billion and help it surpass its FY18 levels. Better yet, its adjusted earnings are projected to jump by 88% to reach $1.73 a share, with FY22 set to climb another 11% higher.
Meanwhile, Vishay’s earnings revisions have turned far more positive since its early Feb. release, with its FY21 consensus estimate up 32%. This strength helps VSH grab a Zacks Rank #1 (Strong Buy) at the moment.
American Campus Communities owns, manages, and develops student housing communities in the U.S. The real estate investment trust is coming off a tough year after the coronavirus shook up the entire education landscape from preschool to college. And ACC’s near-term outlook remains rough even though its stock is trading near new 52-week highs.
Hard Times on Campus
American Campus Communities “is the largest owner, manager, and developer of high-quality student housing communities” in the U.S. At the end of last year, the firm owned 166 student housing properties, with the total reaching 206 properties with approximately 141,100 beds, including third-party managed properties.
ACC’s revenue had consistently grown over the years as college attendance increases in the U.S. and more students clamor for higher-end living. But the coronavirus, which forced many students to learn remotely, caused its revenue to sink in the last three quarters of 2020. These conditions saw American Campus Communities revenue slip roughly 8% in 2020.
Looking ahead, Zacks estimates call for ACC’s first quarter FY21 revenue to sink another 11%. Overall, the REIT’s fiscal 2021 sales are projected to slip roughly 1%.
Its funds from operations or FFO, which are essentially earnings, are expected to fall 21% in the first quarter and -0.50% on the year. This would follow an 18% decline on the bottom-line last year.
Bottom Line
American Campus Communities is projected to return to growth in 2022 and its outlook for 2021 could change if colleges and universities are able to reopen fully. That said, its bottom-line revisions have trended in the wrong direction to help it land a Zacks Rank #5 (Strong Sell) right now.
ACC holds “D” grades for Value and Momentum and an “F” for Growth in our Style Scores system. The stock is also part of the REIT and Equity Trust – Residential space that is currently in the bottom 13% of our over 250 Zacks industries. And the stock might be a little overheated considering that it’s up 50% in the last year and ACC is trading right near its 52-week highs.
Therefore, it might be best to stay away from ACC for now, or until it provides more clarity on its near-term future given the ongoing uncertainty on campuses around the country. And those looking for some solid income should consider keeping their eye on ACC.
The Dow has snapped a seven-day winning streak as of Tuesday’s close, as the near-term rotation into cyclicals and value out of growth tech ran out of steam. The blue-chip 30 fell just 0.39% on the day, or 127.5 points, led by a 3.9% sell-off in Boeing shares, after gaining more than 18% over the past month. The S&P 500 was basically flat on the day, -0.16%, while the small-cap Russell 2000 was -1.7%. Only the Nasdaq sneaked into the green, +0.09%.
Plenty of attention will be given to Fed Chair Jay Powell’s press conference following the wrap-up of the two-day meeting of the Federal Open Market Committee (FOMC) Wednesday afternoon. Of course, interest rates aren’t going anywhere anytime soon, but analysts will be paying close attention to how Powell discusses economic metrics gaining momentum of late (yesterday’s lousy Retail Sales numbers notwithstanding). Last time he spoke publicly, Powell invoked the word “inflation,” and the market proved sensitive to it.
Cybersecurity leader Crowdstrike beat estimates on both top and bottom lines for its fiscal Q4 earnings report after the bell Tuesday, with 13 cents per share outpacing the 9 cents in the Zacks consensus on $264.9 million in sales, which breezed past the $251 million expected. The stock gained 5% initially on the news in late trading, but has pulled back a bit since. Shares are basically flat year to date, but up more than 400% from this time a year ago.
Guidance for next quarter is in-line with expectations on earnings, but notably higher on the top-line: within a range of $287-292 million is expected for Q2, much higher than our analysts’ $264.4 million. This Zacks Rank #2 (Buy)-rated stock ahead of the earnings report may see some upward revisions on the revenue side; full-year estimates were also boosted a bit. The company has not posted an earnings miss since its IPO in 2019.
Miami, FL-based homebuilder Lennar posted a blowout quarter on the bottom line yesterday afternoon, with $3.20 per share ($2.04 adjusted) easily surpassing the $1.65 per share expected, and well beyond the year-ago earnings of $1.27 per share. Sales came in at $5.3 billion, better than the $5.1 billion in the Zacks consensus, but it was that big earnings performance grabbing the headline. The company feels the housing market will remain strong, even with rising mortgage rates.
Lennar’s purchase last year of Opendoor — a service offering cash for homes, whereby upgrades are made by the company and flipped — has brought about results sooner than many had expected. Opendoor was quickly brought public via a SPAC mid-2020. A week ago, InvestorSpace suggested the company holds 500% upside potential; clearly the public offering has already proven a good move for Lennar.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Vishay Intertechnology, American Campus Communities, Boeing, CrowdStrike and Lennar Corp highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 17, 2021 – Zacks Equity Research Shares of Vishay Intertechnology, Inc. (VSH - Free Report) as the Bull of the Day, American Campus Communities, Inc. as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Boeing Company (BA - Free Report) , CrowdStrike Holdings, Inc. (CRWD - Free Report) and Lennar Corporation (LEN - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Vishay Intertechnology manufactures discrete semiconductors and passive components and it’s expected to have a bounce-back year in 2021 after it posted strong results to end FY20. VSH stock has also managed to hit new 52-week highs amid a recent string of tech selling. And at $25 a share, Vishay’s price tag, along with some of its other fundamentals might make it an enticing buy.
Vishay’s Elevator Pitch
Vishay is a manufacturer of discrete semiconductors that include diodes, rectifiers, and more, as well as passive electronic components that range from resistors to capacitors. VSH’s discrete semiconductors perform more basic electronic functions that are vital and used in countless devices and equipment. The company is exposed to growth within the computing world, the automotive and telecommunications industries, the aerospace sector, and many other areas.
The Pennsylvania-based firm aims to be a “one-stop shop” service and its successful acquisitions and innovations have helped it become one of the world's largest manufacturers of discrete semiconductors and passive components. Vishay topped our Q4 revenue estimates in early February and it matched our bottom-line projection—after it had crushed our EPS projections by a 70% average in the previous three quarters.
VSH’s revenue jumped over 9% to beat Q3’s 2% expansion that saw it return to growth after five straight periods of declining sales. This is hardly unusual in the historically cyclical world of semiconductors, impacting giants like Nvidia. And Vishay’s outlook appears strong for 2021 and beyond.
Other Fundamentals
As we touched on at the outset, VSH hit new 52-week highs on Tuesday of $25.22 a share, even as many other tech stocks rest below their mid-February records. The stock was subject to some selling recently, but it quickly recovered from an early March pullback.
The nearby chart shows that Vishay shares have more than double their industry over the last six months, up roughly 60%. This run is part of a 90% climb over the past year to match the Semiconductor market.
Investors should note that VSH has lagged the broader tech sector over the last five years, up 100% vs. 150%. But the stock has managed to match the S&P 500 during this stretch.
Along with its solid performance that does include some significant ups and downs, it provides solid value compared to its industry. At 1.2X forward 12-month sales, VSH trades at a discount to its own year-long highs and well beneath its industry’s 5X average.
The company’s valuation is even better when we look at forward earnings, with it trading at a 30% discount to its industry and a 15% discount to its own year-long highs despite its stock sitting at new highs. VSH also sits below overbought levels (70 or higher) in terms of RSI at 58.
Vishay is part of the Semiconductor – Discretes space that is in the top 10% of our 250 Zacks industries at the moment. The stock also rocks an “A” grade for Value and a “B” for Growth in our Style Scores system.
Plus, the company’s dividend is currently yielding 1.52%. This tops its industry’s 1.42% average and the S&P 500’s, while coming in just below the recently-climbing 10-year U.S. Treasury.
Bottom Line
Zacks estimates call for the company’s revenue to climb over 18% in 2021 and another 5% in FY22 to reach $3.10 billion and help it surpass its FY18 levels. Better yet, its adjusted earnings are projected to jump by 88% to reach $1.73 a share, with FY22 set to climb another 11% higher.
Meanwhile, Vishay’s earnings revisions have turned far more positive since its early Feb. release, with its FY21 consensus estimate up 32%. This strength helps VSH grab a Zacks Rank #1 (Strong Buy) at the moment.
Bear of the Day:
American Campus Communities owns, manages, and develops student housing communities in the U.S. The real estate investment trust is coming off a tough year after the coronavirus shook up the entire education landscape from preschool to college. And ACC’s near-term outlook remains rough even though its stock is trading near new 52-week highs.
Hard Times on Campus
American Campus Communities “is the largest owner, manager, and developer of high-quality student housing communities” in the U.S. At the end of last year, the firm owned 166 student housing properties, with the total reaching 206 properties with approximately 141,100 beds, including third-party managed properties.
ACC’s revenue had consistently grown over the years as college attendance increases in the U.S. and more students clamor for higher-end living. But the coronavirus, which forced many students to learn remotely, caused its revenue to sink in the last three quarters of 2020. These conditions saw American Campus Communities revenue slip roughly 8% in 2020.
Looking ahead, Zacks estimates call for ACC’s first quarter FY21 revenue to sink another 11%. Overall, the REIT’s fiscal 2021 sales are projected to slip roughly 1%.
Its funds from operations or FFO, which are essentially earnings, are expected to fall 21% in the first quarter and -0.50% on the year. This would follow an 18% decline on the bottom-line last year.
Bottom Line
American Campus Communities is projected to return to growth in 2022 and its outlook for 2021 could change if colleges and universities are able to reopen fully. That said, its bottom-line revisions have trended in the wrong direction to help it land a Zacks Rank #5 (Strong Sell) right now.
ACC holds “D” grades for Value and Momentum and an “F” for Growth in our Style Scores system. The stock is also part of the REIT and Equity Trust – Residential space that is currently in the bottom 13% of our over 250 Zacks industries. And the stock might be a little overheated considering that it’s up 50% in the last year and ACC is trading right near its 52-week highs.
Therefore, it might be best to stay away from ACC for now, or until it provides more clarity on its near-term future given the ongoing uncertainty on campuses around the country. And those looking for some solid income should consider keeping their eye on ACC.
Additional content:
Dow, S&P Snap Winning Streaks; Lennar, Crowdstrike Beat
The Dow has snapped a seven-day winning streak as of Tuesday’s close, as the near-term rotation into cyclicals and value out of growth tech ran out of steam. The blue-chip 30 fell just 0.39% on the day, or 127.5 points, led by a 3.9% sell-off in Boeing shares, after gaining more than 18% over the past month. The S&P 500 was basically flat on the day, -0.16%, while the small-cap Russell 2000 was -1.7%. Only the Nasdaq sneaked into the green, +0.09%.
Plenty of attention will be given to Fed Chair Jay Powell’s press conference following the wrap-up of the two-day meeting of the Federal Open Market Committee (FOMC) Wednesday afternoon. Of course, interest rates aren’t going anywhere anytime soon, but analysts will be paying close attention to how Powell discusses economic metrics gaining momentum of late (yesterday’s lousy Retail Sales numbers notwithstanding). Last time he spoke publicly, Powell invoked the word “inflation,” and the market proved sensitive to it.
Cybersecurity leader Crowdstrike beat estimates on both top and bottom lines for its fiscal Q4 earnings report after the bell Tuesday, with 13 cents per share outpacing the 9 cents in the Zacks consensus on $264.9 million in sales, which breezed past the $251 million expected. The stock gained 5% initially on the news in late trading, but has pulled back a bit since. Shares are basically flat year to date, but up more than 400% from this time a year ago.
Guidance for next quarter is in-line with expectations on earnings, but notably higher on the top-line: within a range of $287-292 million is expected for Q2, much higher than our analysts’ $264.4 million. This Zacks Rank #2 (Buy)-rated stock ahead of the earnings report may see some upward revisions on the revenue side; full-year estimates were also boosted a bit. The company has not posted an earnings miss since its IPO in 2019.
Miami, FL-based homebuilder Lennar posted a blowout quarter on the bottom line yesterday afternoon, with $3.20 per share ($2.04 adjusted) easily surpassing the $1.65 per share expected, and well beyond the year-ago earnings of $1.27 per share. Sales came in at $5.3 billion, better than the $5.1 billion in the Zacks consensus, but it was that big earnings performance grabbing the headline. The company feels the housing market will remain strong, even with rising mortgage rates.
Lennar’s purchase last year of Opendoor — a service offering cash for homes, whereby upgrades are made by the company and flipped — has brought about results sooner than many had expected. Opendoor was quickly brought public via a SPAC mid-2020. A week ago, InvestorSpace suggested the company holds 500% upside potential; clearly the public offering has already proven a good move for Lennar.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.