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DocGo and Post Holdings have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – March 30, 2022 – Zacks Equity Research shares DocGo (DCGO - Free Report) as the Bull of the Day and Post Holdings (POST - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron (MU - Free Report) and RH (RH - Free Report) .
DocGo is a Zacks Rank #2 (Buy) that sports a C for Value and a B for Growth. This is an up and coming name that could very well change the way we think of healthcare. DCGO provides high quality non-emergency medical care that comes to you. Let's explore more about this stock in this Bull of the Day article.
Description
DocGo Inc. is a provider of last-mile telehealth and integrated medical mobility services. DocGo Inc., formerly known as Motion Acquisition Corp., is based in New York.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For DCGO, I see only one report. That report was a beat of the Zacks Consensus Estimate.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For DCGO, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter had increased from a loss of $0.02 to a gain of $0.03.
Next quarter has moved higher, from $0.03 to $0.06.
The full fiscal year 2022 has moved from $0.18 to $0.26.
Next year has also seen a nice increase from $0.28 to $0.37.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
There is very little data out on DCGO, but what we do have is enough for me to continue to dig deeper into this stock. I see a forward earnings multiple of 33x which is a lot, but there is tremendous growth here. The company has a price to book multiple of 1.2x, which is very low. The price-to-sales multiple works out to be 3.8x.
Post Holdings is a Zacks Rank #5 (Strong Sell) after missing the number in the most recent earnings release. Food stocks are seeing a lot of headwinds of late, but this trend could flip. Instead, let's look at why this stock is a Zacks Rank #5 (Strong Sell) and in thisBear of the Day article.
Description
Based in Missouri, Post Holdings is a consumer-packaged goods holding company, which is involved in the production of center-of-the-store, refrigerated, foodservice, food ingredient and convenient nutrition product categories. It also engages in the private brand food category.
The company comprises five segments, including BellRing Brands, which operates as a separate entity.
Post Consumer Brands consists private label ready-to-eat (RTE) cereal products. Some notable brands of RTE include Honey Bunches of Oats, Pebbles, Oreo O's, Hostess Donettes, HostessHoney Bun, Great Grains and Grape-Nuts among others.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of POST, I see four straight misses of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For POST I see annual estimates moving lower.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is mixed for those numbers.
The current year 2022 consensus number has dropped from $3.13 to $1.11.
The next year has dropped from $3.97 to $1.87 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Markets Absorbing (or Ignoring) All Bad News; Plus MU and RH Report
More evidence that the markets have absorbed much of the bad news headlines was on display again this Tuesday: the Dow was +338 points, +0.97% on the day — and that was the worst performer of the major indexes. The S&P 500 rode +1.23% higher on the day, while the Nasdaq gained +264 points, or +1.84%. Taking the honors in the regular session was the small-cap Russell 2000, which grew +2.65% on the day.
The month of March, with only two remaining trading days left, has brought a nice rebound to the markets from a 2022 that began with two-straight down months. The Fed's decision to raise rates 25 basis points, while it still looks a ways off from curbing inflation at this rate, looks to be what the doctor ordered for positive sentiment on the indexes. The Dow is +6.00% for the month so far, the S&P is +7.56%, the Nasdaq has gained +8.03% and the Russell is +6.20%.
Meanwhile, the yield-inversion watch set off some alarm bells that investors apparently tuned out: the spread between the 2-year bond yield and the 10-year did indeed invert for a short time Tuesday, and remains very flat. When short-term yields become more valuable than long-term, this signals to economists that a recession may be on the way.
Then again: maybe not. The last time 2s and 10s inverted, it was also for a short time two-and-a-half years ago: when the U.S. embarked on a trade war with China in the late summer of 2019. Yet that did not set off a recession, as we know — it took the start of the Covid pandemic for that to happen. Basically, a yield-curve inversion does not always result in a recession, but no recession ever happens without a yield-curve inversion somewhere ahead of it.
Boise, ID-based Micron reported better-than-expected results in its fiscal Q2 after Tuesday's close: earnings of $2.04 per share outpaced the $1.95 in the Zacks consensus, on $7.69 billion in revenues which swept past the $7.51 billion expected, +33% year over year. The memory and storage semiconductor giant gained +4.5% on the news.
Further, revenue guidance for fiscal Q3 moved up to a range of $8.5-8.9 billion; the Zacks estimate prior to this report was for $8.05 billion for the quarter. However, Micron also said the effects of the Ukraine war are taking raw material costs higher. For the reported quarter, notable gains were seen in its Data Center, Cloud and Smartphone businesses for the Zacks Rank #2 (Buy)-rated company.
Luxury home furnishing retailer RH, formerly Restoration Hardware, also outpaced estimates in its fiscal Q1 report: earnings of $5.88 per share beat the $5.66 expected, but on $902.7 million in quarterly sales, where $928.8 million was expected. The company also announced a 3-for-1 stock split scheduled for this spring, so while the mixed headline initially sent shares down -5%, they have buoyed back up near break-even at this time.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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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DocGo and Post Holdings have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 30, 2022 – Zacks Equity Research shares DocGo (DCGO - Free Report) as the Bull of the Day and Post Holdings (POST - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron (MU - Free Report) and RH (RH - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
DocGo is a Zacks Rank #2 (Buy) that sports a C for Value and a B for Growth. This is an up and coming name that could very well change the way we think of healthcare. DCGO provides high quality non-emergency medical care that comes to you. Let's explore more about this stock in this Bull of the Day article.
Description
DocGo Inc. is a provider of last-mile telehealth and integrated medical mobility services. DocGo Inc., formerly known as Motion Acquisition Corp., is based in New York.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For DCGO, I see only one report. That report was a beat of the Zacks Consensus Estimate.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For DCGO, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter had increased from a loss of $0.02 to a gain of $0.03.
Next quarter has moved higher, from $0.03 to $0.06.
The full fiscal year 2022 has moved from $0.18 to $0.26.
Next year has also seen a nice increase from $0.28 to $0.37.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
There is very little data out on DCGO, but what we do have is enough for me to continue to dig deeper into this stock. I see a forward earnings multiple of 33x which is a lot, but there is tremendous growth here. The company has a price to book multiple of 1.2x, which is very low. The price-to-sales multiple works out to be 3.8x.
Bear of the Day:
Post Holdings is a Zacks Rank #5 (Strong Sell) after missing the number in the most recent earnings release. Food stocks are seeing a lot of headwinds of late, but this trend could flip. Instead, let's look at why this stock is a Zacks Rank #5 (Strong Sell) and in thisBear of the Day article.
Description
Based in Missouri, Post Holdings is a consumer-packaged goods holding company, which is involved in the production of center-of-the-store, refrigerated, foodservice, food ingredient and convenient nutrition product categories. It also engages in the private brand food category.
The company comprises five segments, including BellRing Brands, which operates as a separate entity.
Post Consumer Brands consists private label ready-to-eat (RTE) cereal products. Some notable brands of RTE include Honey Bunches of Oats, Pebbles, Oreo O's, Hostess Donettes, HostessHoney Bun, Great Grains and Grape-Nuts among others.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of POST, I see four straight misses of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For POST I see annual estimates moving lower.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is mixed for those numbers.
The current year 2022 consensus number has dropped from $3.13 to $1.11.
The next year has dropped from $3.97 to $1.87 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Markets Absorbing (or Ignoring) All Bad News; Plus MU and RH Report
More evidence that the markets have absorbed much of the bad news headlines was on display again this Tuesday: the Dow was +338 points, +0.97% on the day — and that was the worst performer of the major indexes. The S&P 500 rode +1.23% higher on the day, while the Nasdaq gained +264 points, or +1.84%. Taking the honors in the regular session was the small-cap Russell 2000, which grew +2.65% on the day.
The month of March, with only two remaining trading days left, has brought a nice rebound to the markets from a 2022 that began with two-straight down months. The Fed's decision to raise rates 25 basis points, while it still looks a ways off from curbing inflation at this rate, looks to be what the doctor ordered for positive sentiment on the indexes. The Dow is +6.00% for the month so far, the S&P is +7.56%, the Nasdaq has gained +8.03% and the Russell is +6.20%.
Meanwhile, the yield-inversion watch set off some alarm bells that investors apparently tuned out: the spread between the 2-year bond yield and the 10-year did indeed invert for a short time Tuesday, and remains very flat. When short-term yields become more valuable than long-term, this signals to economists that a recession may be on the way.
Then again: maybe not. The last time 2s and 10s inverted, it was also for a short time two-and-a-half years ago: when the U.S. embarked on a trade war with China in the late summer of 2019. Yet that did not set off a recession, as we know — it took the start of the Covid pandemic for that to happen. Basically, a yield-curve inversion does not always result in a recession, but no recession ever happens without a yield-curve inversion somewhere ahead of it.
Boise, ID-based Micron reported better-than-expected results in its fiscal Q2 after Tuesday's close: earnings of $2.04 per share outpaced the $1.95 in the Zacks consensus, on $7.69 billion in revenues which swept past the $7.51 billion expected, +33% year over year. The memory and storage semiconductor giant gained +4.5% on the news.
Further, revenue guidance for fiscal Q3 moved up to a range of $8.5-8.9 billion; the Zacks estimate prior to this report was for $8.05 billion for the quarter. However, Micron also said the effects of the Ukraine war are taking raw material costs higher. For the reported quarter, notable gains were seen in its Data Center, Cloud and Smartphone businesses for the Zacks Rank #2 (Buy)-rated company.
Luxury home furnishing retailer RH, formerly Restoration Hardware, also outpaced estimates in its fiscal Q1 report: earnings of $5.88 per share beat the $5.66 expected, but on $902.7 million in quarterly sales, where $928.8 million was expected. The company also announced a 3-for-1 stock split scheduled for this spring, so while the mixed headline initially sent shares down -5%, they have buoyed back up near break-even at this time.
Questions or comments about this article and/or its author? Click here>>
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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.