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The Kroger and The Boston Beer Company have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 27, 2022 – Zacks Equity Research shares The Kroger Co. (KR - Free Report) as the Bull of the Day and The Boston Beer Company, Inc. (SAM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple (AAPL - Free Report) , Camtek (CAMT - Free Report) and CDW (CDW - Free Report) .
The Kroger Co. stock soared to new highs after it posted strong fourth quarter results in early March and offered solid guidance as it adapts to supply chain bottlenecks and rising prices.
The grocery chain powerhouse thrived during the heart of the pandemic and now Kroger is benefitting from price-conscious shoppers trying to eat out less amid 40-year high inflation. KR's digital and e-commerce efforts are poised to continue to drive growth. And Wall Street might be set to keep buying Kroger during the current market and economic turmoil for its stability, dividend, and more.
Never Going Out of Style
Kroger is the largest supermarket chain in the U.S. and one of the biggest in the world. KR operates under multiple brands across roughly 35 states, with over 2,700 supermarkets and multi-department store locations. Many of Kroger's stores feature pharmacies and gas stations.
Brick and mortar is fading within some aspects of retail, but it continues to thrive in the grocery and supermarket segment. Kroger has, of course, spent the last several years working to improve and beef up its e-commerce business, like nearly everyone else in the retail industry. These efforts include expanded online pickup and delivery offerings.
Kroger is actively building out its network of high-tech warehouses/fulfillment centers. The company also operates dozens of food production or manufacturing facilities to help produce its own private-label products that provide value for customers and help boost margins.
Recent Results & Outlook
Shopping patterns benefited Kroger and others such as Target during the pandemic, as consumers avoided eating out and tried to have plenty of food stocked up. KR's 2020 sales climbed over 8%. Even as people returned to their more normal lives, groceries are still a staple that are never going out of style.
As the pandemic faded, Kroger then benefitted from risings costs across the economy that spurred many shoppers to cook and eat at home more often. KR's 2021 revenue popped 4% to $138 billion, with its digital sales up 113% on a two-year stack. The company has been able to pass its higher costs onto consumers as well, with its adjusted earnings up 6% last year.
The Cincinnati-based chain's same-stores sales popped 4% in Q4, with it up 15% vs. its fourth quarter 2019 levels. KR's adjusted fourth quarter earnings popped over 12% to help it blow away the Zacks consensus EPS by 25%. The big bottom-line beat is part of a 22% average outperformance in the trailing four quarters.
Crucially, Kroger upped its 2022 guidance as it sees customers flocking to its stores. KR is poised to keep successfully navigating rising costs across the entire supply chain, while methodically and strategically raising its prices.
Kroger's FY22 consensus earnings estimate has soared 10% since its report, with FY23's 11.3% higher. Shoppers are gravitating toward its higher-margin and lower-priced store brands, while upping their engagement with coupons. Luckily, KR executives said they see inflation moderating in the second-half of 2022.
Kroger faces tough-to-compete against years. Still, Zacks estimates call for its revenue to climb 2.4% both this year and next to reach $144.5 billion in 2023. Meanwhile, its adjusted earnings are projected to pop 2% in 2022 and 5% in 2023.
Efforts & Other Fundamentals
Kroger is actively raising its wages to help compete for talent alongside Target, Amazon, Walmart, and many others. KR is also upping its efforts to fight against food waste and hunger, while actively attempting to improve quality and address issues such as animal treatment within its supply chains. These might raise costs, but they will likely help improve the company over the long haul.
Wall Street can get behind these broader goals because KR is actively boosting its dividend and buying back stock. Its current $0.21 a share quarterly payout is up 17% YoY. The company has now raised its dividend for 15 years in a row and plans to "deliver strong and sustainable total shareholder returns of 8% to 11% over time," while also deploying its free cash flow to other efforts.
Kroger's dividend (next payable on June 1, ex-dividend May 12) yield sits at 1.50% to top its industry and Walmart's 1.41% and match Target. Some of these fundamentals are what attracted Warren Buffett and Berkshire Hathaway to Kroger back in the fourth quarter of 2019. And KR's valuation, which we will touch on next, is enticing.
Price & Valuation
Kroger shares have rather easily outpaced its highly-ranked Retail-Supermarkets industry over the decade, up 475% vs. 218% (this also tops the S&P 500's 345%). This includes a downward stretch, but KR has now ripped off a 135% surge in the last three years. Wall Street has jumped heavily into the stock in the last six months as the tech trade fades and investors clamor for value and dividends.
KR has climbed 45% in the last six months vs. its industry's 10% pop and the market's 6% drop. This includes a big post-earnings release jump that sent it to brand new highs in early March. Kroger inched higher after that run and now trades about 10% below its recent highs at roughly $56 a share.
Kroger currently trades at 14.9X forward 12-month earnings. This marks a30% discount to the Retail-Supermarkets industry and 31% value vs. the broader Zacks Retail-Wholesale Sector. On top of that, Kroger trades 24% beneath its own highs and not too far above its median over the last decade.
Bottom Line
Kroger's improved bottom-line outlook helps it grab a Zacks Rank #1 (Strong Buy) right now. It seems like a solid candidate to buy both during the current market conditions and as a longer-term retail play because people will never stop needing full-service supermarkets. And during these times, keeping it simple might be the most thoughtful option.
The hard seltzer boom helped The Boston Beer Company, Inc. go on a massive run from the middle of 2017 until April 2021. Wall Street poured into the stock as its Truly hard seltzer brand flew off the shelves, helping drive double-digit revenue growth.
Boston Beer was never going to be able to keep up its hyperbolic run and SAM shares have tumbled over the last 12 months as Truly's growth slows to more reasonable levels amid increased competition.
SAM Basics
Boston Beer helped kick start the craft beer revolution in the U.S. decades ago. Years later, it was at the forefront of the biggest thing since light beer. SAM launched Truly Hard Seltzer in 2016 and it became one of two dominant players in the category, alongside White Claw, right out of the gate.
Boston Beer's revenue surged 15% in fiscal 2018, 26% in FY19, 39% in 2020, and another 19% last year. The past four years marked SAM's strongest top-line growth since 2014. In fact, Boston Beer had never posted 30% or stronger revenue growth since it went public in the late 1990s until 2020.
Victim of Its Own Success?
Boston's first-to-market advantages have slowly faded a bit as nearly every alcoholic beverage giant joined the party. Anheuser-Busch InBev, Molson Coors, Constellation Brands, and even Coca-Cola, under its Topo Chico brand, are now players in the hard seltzer market. These companies have rolled out offerings under Bud Light, Corona, and other brands. At the same time, many smaller players are entering the market constantly.
Boston Beer has fallen way short of our Zacks earnings estimates in the trailing four periods. This includes a massive first quarter fiscal 2022 miss when it reported on April 21. The company reported an adjusted loss of -$0.16 per share vs. the Zacks consensus that called for +$2.05 a share on lower-than-projected revenue. The first quarter marked its second-consecutive adjusted loss.
Boston Beer is coming up against very tough to compete against years, with its Q1 revenue down 21% after its fourth quarter 2021 sales slipped 25%. The company's gross margin also fell from 45.8% in the year-ago quarter to 40.2%.
Zacks estimates call for Boston Beer's revenue to climb another 9% in 2022 to $2.25 billion and 6% higher in FY23. This is highly impressive considering the run it just went on. The company's adjusted earnings are, however, projected to slip 20% YoY in 2022. And its FY22 and FY23 consensus estimates have dipped since its recent release.
Bottom Line
Boston Beer's downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now, and its Beverages – Alcohol space is in the bottom third of over 250 Zacks industries. SAM shares have fallen 21% in the last two years and 70% from its records.
Boston Beer operates a solid business that's continuing to grow. The firm is even rolling out new Truly drinks to get into the "high-end of the hard seltzer category." And we have hardly even mentioned its beer business. Therefore, it is likely the stock will start to make a comeback some time, but it might not be the best time to dive into SAM given the current market turmoil.
Additional content:
What to Expect from Apple's (AAPL - Free Report) Q2 Earnings Report?
Apple did not provide revenue guidance for the second quarter of fiscal 2022, given the uncertainty around the impact of the coronavirus pandemic. The company expects to achieve solid year-over-year revenue growth and set a second-quarter revenue record despite significant supply constraints, which it estimates to be less than the December quarter.
However, Apple expects revenue growth rate to decelerate from the December quarter, primarily due to tough year-over-year comparisons and unfavorable forex.
The Zacks Consensus Estimate for revenues is currently pegged at $94.79 billion, indicating growth of 5.82% from the year-ago quarter's reported figure.
The consensus mark for earnings is currently pegged at $1.43 per share, unchanged over the past 30 days and indicating 2.14% growth from the figure reported in the year-ago quarter.
Apple's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and was in line with the remaining one, the earnings surprise being 20.28%, on average.
Let's see how things are shaping up for the upcoming announcement.
Strong iPhone 13 Demand to Drive Y/Y Sales Growth
Apple's fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 57.8% of net sales in the last-reported quarter, wherein sales increased 9.2% year over year to $71.63 billion.
Continued demand for the 5G-enabled iPhone 13 is expected to have driven the top line in the to-be-reported quarter. Per a latest Canalys report on worldwide smartphone shipments, Apple grabbed the #2 spot with 18% of market share in first-quarter 2022.
The Zacks Consensus Estimate for iPhone sales currently stands at $48.68 billion, indicating 1.2% growth from the year-ago quarter's reported figure.
Services Momentum to Aid Q2 Top-Line Growth
The Services segment is riding on increasing popularity of the App Store. Apple currently has more than 785 million paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ is gaining recognition, with Ted Lasso winning multiple Emmy Awards and, most recently, CODA winning three Academy Awards.
During the to-be-reported quarter, Apple TV+ gained the rights to stream weekly Major League Baseball games, including two Friday night games.
Apple expects Services' growth rate to decline as compared with the first quarter of fiscal 2022. Markedly, in the previous quarter, Services revenues grew 23.8% from the year-ago quarter to $19.52 billion and accounted for 15.7% of sales.
Wearables' Growth to Remain Strong
Apple is dominating the wearables market, thanks to strong adoption of Apple Watch. The company's Fitness+ subscription service, built on Apple Watch, is a game changer. Fitness+ tracks health- and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
The addition of healthcare features has been a game-changer for Apple Watch. The Series 7 model offers Blood Oxygen app, ECG app, high and low heart rate notifications, irregular heart rhythm notification and fall detection.
Apple Watch's adoption rate continues to grow rapidly. More than two-thirds of the customers who purchased Apple Watch during first-quarter fiscal 2022 were first-time customers.
During the to-be-reported quarter, Apple released watchOS 8.5 to all Watch users, starting with the Series 3 models. The latest update adds 37 new emojis and offers a new, non-binary Siri voice for American users.
Apple Watch users can now authorize Apple TV purchases and subscriptions, a feature provided by the latest watchOS 8.5 update.
Apple is offering updates to irregular rhythm notifications designed to improve atrial fibrillation identification. This feature is available in the United States, Chile, Hong Kong, South Africa and many other regions.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Apple has an Earnings ESP of -0.77% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Camtek shares have underperformed the Zacks Computer & Technology sector year to date. CAMT shares are down 31.1% compared with sector's decline of 21.7%. The company is set to report first-quarter 2022 on May 12, 2022.
CDW has an Earnings ESP of +0.17% and carries a Zacks Rank of 2, at present.
CDW shares are down 16.6% year to date. The company is set to report first-quarter 2022 results on May 4.
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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The Kroger and The Boston Beer Company have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 27, 2022 – Zacks Equity Research shares The Kroger Co. (KR - Free Report) as the Bull of the Day and The Boston Beer Company, Inc. (SAM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple (AAPL - Free Report) , Camtek (CAMT - Free Report) and CDW (CDW - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
The Kroger Co. stock soared to new highs after it posted strong fourth quarter results in early March and offered solid guidance as it adapts to supply chain bottlenecks and rising prices.
The grocery chain powerhouse thrived during the heart of the pandemic and now Kroger is benefitting from price-conscious shoppers trying to eat out less amid 40-year high inflation. KR's digital and e-commerce efforts are poised to continue to drive growth. And Wall Street might be set to keep buying Kroger during the current market and economic turmoil for its stability, dividend, and more.
Never Going Out of Style
Kroger is the largest supermarket chain in the U.S. and one of the biggest in the world. KR operates under multiple brands across roughly 35 states, with over 2,700 supermarkets and multi-department store locations. Many of Kroger's stores feature pharmacies and gas stations.
Brick and mortar is fading within some aspects of retail, but it continues to thrive in the grocery and supermarket segment. Kroger has, of course, spent the last several years working to improve and beef up its e-commerce business, like nearly everyone else in the retail industry. These efforts include expanded online pickup and delivery offerings.
Kroger is actively building out its network of high-tech warehouses/fulfillment centers. The company also operates dozens of food production or manufacturing facilities to help produce its own private-label products that provide value for customers and help boost margins.
Recent Results & Outlook
Shopping patterns benefited Kroger and others such as Target during the pandemic, as consumers avoided eating out and tried to have plenty of food stocked up. KR's 2020 sales climbed over 8%. Even as people returned to their more normal lives, groceries are still a staple that are never going out of style.
As the pandemic faded, Kroger then benefitted from risings costs across the economy that spurred many shoppers to cook and eat at home more often. KR's 2021 revenue popped 4% to $138 billion, with its digital sales up 113% on a two-year stack. The company has been able to pass its higher costs onto consumers as well, with its adjusted earnings up 6% last year.
The Cincinnati-based chain's same-stores sales popped 4% in Q4, with it up 15% vs. its fourth quarter 2019 levels. KR's adjusted fourth quarter earnings popped over 12% to help it blow away the Zacks consensus EPS by 25%. The big bottom-line beat is part of a 22% average outperformance in the trailing four quarters.
Crucially, Kroger upped its 2022 guidance as it sees customers flocking to its stores. KR is poised to keep successfully navigating rising costs across the entire supply chain, while methodically and strategically raising its prices.
Kroger's FY22 consensus earnings estimate has soared 10% since its report, with FY23's 11.3% higher. Shoppers are gravitating toward its higher-margin and lower-priced store brands, while upping their engagement with coupons. Luckily, KR executives said they see inflation moderating in the second-half of 2022.
Kroger faces tough-to-compete against years. Still, Zacks estimates call for its revenue to climb 2.4% both this year and next to reach $144.5 billion in 2023. Meanwhile, its adjusted earnings are projected to pop 2% in 2022 and 5% in 2023.
Efforts & Other Fundamentals
Kroger is actively raising its wages to help compete for talent alongside Target, Amazon, Walmart, and many others. KR is also upping its efforts to fight against food waste and hunger, while actively attempting to improve quality and address issues such as animal treatment within its supply chains. These might raise costs, but they will likely help improve the company over the long haul.
Wall Street can get behind these broader goals because KR is actively boosting its dividend and buying back stock. Its current $0.21 a share quarterly payout is up 17% YoY. The company has now raised its dividend for 15 years in a row and plans to "deliver strong and sustainable total shareholder returns of 8% to 11% over time," while also deploying its free cash flow to other efforts.
Kroger's dividend (next payable on June 1, ex-dividend May 12) yield sits at 1.50% to top its industry and Walmart's 1.41% and match Target. Some of these fundamentals are what attracted Warren Buffett and Berkshire Hathaway to Kroger back in the fourth quarter of 2019. And KR's valuation, which we will touch on next, is enticing.
Price & Valuation
Kroger shares have rather easily outpaced its highly-ranked Retail-Supermarkets industry over the decade, up 475% vs. 218% (this also tops the S&P 500's 345%). This includes a downward stretch, but KR has now ripped off a 135% surge in the last three years. Wall Street has jumped heavily into the stock in the last six months as the tech trade fades and investors clamor for value and dividends.
KR has climbed 45% in the last six months vs. its industry's 10% pop and the market's 6% drop. This includes a big post-earnings release jump that sent it to brand new highs in early March. Kroger inched higher after that run and now trades about 10% below its recent highs at roughly $56 a share.
Kroger currently trades at 14.9X forward 12-month earnings. This marks a30% discount to the Retail-Supermarkets industry and 31% value vs. the broader Zacks Retail-Wholesale Sector. On top of that, Kroger trades 24% beneath its own highs and not too far above its median over the last decade.
Bottom Line
Kroger's improved bottom-line outlook helps it grab a Zacks Rank #1 (Strong Buy) right now. It seems like a solid candidate to buy both during the current market conditions and as a longer-term retail play because people will never stop needing full-service supermarkets. And during these times, keeping it simple might be the most thoughtful option.
Bear of the Day:
The hard seltzer boom helped The Boston Beer Company, Inc. go on a massive run from the middle of 2017 until April 2021. Wall Street poured into the stock as its Truly hard seltzer brand flew off the shelves, helping drive double-digit revenue growth.
Boston Beer was never going to be able to keep up its hyperbolic run and SAM shares have tumbled over the last 12 months as Truly's growth slows to more reasonable levels amid increased competition.
SAM Basics
Boston Beer helped kick start the craft beer revolution in the U.S. decades ago. Years later, it was at the forefront of the biggest thing since light beer. SAM launched Truly Hard Seltzer in 2016 and it became one of two dominant players in the category, alongside White Claw, right out of the gate.
Boston Beer's revenue surged 15% in fiscal 2018, 26% in FY19, 39% in 2020, and another 19% last year. The past four years marked SAM's strongest top-line growth since 2014. In fact, Boston Beer had never posted 30% or stronger revenue growth since it went public in the late 1990s until 2020.
Victim of Its Own Success?
Boston's first-to-market advantages have slowly faded a bit as nearly every alcoholic beverage giant joined the party. Anheuser-Busch InBev, Molson Coors, Constellation Brands, and even Coca-Cola, under its Topo Chico brand, are now players in the hard seltzer market. These companies have rolled out offerings under Bud Light, Corona, and other brands. At the same time, many smaller players are entering the market constantly.
Boston Beer has fallen way short of our Zacks earnings estimates in the trailing four periods. This includes a massive first quarter fiscal 2022 miss when it reported on April 21. The company reported an adjusted loss of -$0.16 per share vs. the Zacks consensus that called for +$2.05 a share on lower-than-projected revenue. The first quarter marked its second-consecutive adjusted loss.
Boston Beer is coming up against very tough to compete against years, with its Q1 revenue down 21% after its fourth quarter 2021 sales slipped 25%. The company's gross margin also fell from 45.8% in the year-ago quarter to 40.2%.
Zacks estimates call for Boston Beer's revenue to climb another 9% in 2022 to $2.25 billion and 6% higher in FY23. This is highly impressive considering the run it just went on. The company's adjusted earnings are, however, projected to slip 20% YoY in 2022. And its FY22 and FY23 consensus estimates have dipped since its recent release.
Bottom Line
Boston Beer's downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now, and its Beverages – Alcohol space is in the bottom third of over 250 Zacks industries. SAM shares have fallen 21% in the last two years and 70% from its records.
Boston Beer operates a solid business that's continuing to grow. The firm is even rolling out new Truly drinks to get into the "high-end of the hard seltzer category." And we have hardly even mentioned its beer business. Therefore, it is likely the stock will start to make a comeback some time, but it might not be the best time to dive into SAM given the current market turmoil.
Additional content:
What to Expect from Apple's (AAPL - Free Report) Q2 Earnings Report?
Apple is set to report second-quarter fiscal 2022 results on Apr 28.
Apple did not provide revenue guidance for the second quarter of fiscal 2022, given the uncertainty around the impact of the coronavirus pandemic. The company expects to achieve solid year-over-year revenue growth and set a second-quarter revenue record despite significant supply constraints, which it estimates to be less than the December quarter.
However, Apple expects revenue growth rate to decelerate from the December quarter, primarily due to tough year-over-year comparisons and unfavorable forex.
The Zacks Consensus Estimate for revenues is currently pegged at $94.79 billion, indicating growth of 5.82% from the year-ago quarter's reported figure.
The consensus mark for earnings is currently pegged at $1.43 per share, unchanged over the past 30 days and indicating 2.14% growth from the figure reported in the year-ago quarter.
Apple's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and was in line with the remaining one, the earnings surprise being 20.28%, on average.
Apple Inc. price-eps-surprise | Apple Inc. Quote
Let's see how things are shaping up for the upcoming announcement.
Strong iPhone 13 Demand to Drive Y/Y Sales Growth
Apple's fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 57.8% of net sales in the last-reported quarter, wherein sales increased 9.2% year over year to $71.63 billion.
Continued demand for the 5G-enabled iPhone 13 is expected to have driven the top line in the to-be-reported quarter. Per a latest Canalys report on worldwide smartphone shipments, Apple grabbed the #2 spot with 18% of market share in first-quarter 2022.
The Zacks Consensus Estimate for iPhone sales currently stands at $48.68 billion, indicating 1.2% growth from the year-ago quarter's reported figure.
Services Momentum to Aid Q2 Top-Line Growth
The Services segment is riding on increasing popularity of the App Store. Apple currently has more than 785 million paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ is gaining recognition, with Ted Lasso winning multiple Emmy Awards and, most recently, CODA winning three Academy Awards.
During the to-be-reported quarter, Apple TV+ gained the rights to stream weekly Major League Baseball games, including two Friday night games.
Apple expects Services' growth rate to decline as compared with the first quarter of fiscal 2022. Markedly, in the previous quarter, Services revenues grew 23.8% from the year-ago quarter to $19.52 billion and accounted for 15.7% of sales.
Wearables' Growth to Remain Strong
Apple is dominating the wearables market, thanks to strong adoption of Apple Watch. The company's Fitness+ subscription service, built on Apple Watch, is a game changer. Fitness+ tracks health- and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
The addition of healthcare features has been a game-changer for Apple Watch. The Series 7 model offers Blood Oxygen app, ECG app, high and low heart rate notifications, irregular heart rhythm notification and fall detection.
Apple Watch's adoption rate continues to grow rapidly. More than two-thirds of the customers who purchased Apple Watch during first-quarter fiscal 2022 were first-time customers.
During the to-be-reported quarter, Apple released watchOS 8.5 to all Watch users, starting with the Series 3 models. The latest update adds 37 new emojis and offers a new, non-binary Siri voice for American users.
Apple Watch users can now authorize Apple TV purchases and subscriptions, a feature provided by the latest watchOS 8.5 update.
Apple is offering updates to irregular rhythm notifications designed to improve atrial fibrillation identification. This feature is available in the United States, Chile, Hong Kong, South Africa and many other regions.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Apple has an Earnings ESP of -0.77% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Camtek has an Earnings ESP of +1.73% and is Zacks #2 Ranked. You can see the complete list of today's Zacks #1 Rank stocks here.
Camtek shares have underperformed the Zacks Computer & Technology sector year to date. CAMT shares are down 31.1% compared with sector's decline of 21.7%. The company is set to report first-quarter 2022 on May 12, 2022.
CDW has an Earnings ESP of +0.17% and carries a Zacks Rank of 2, at present.
CDW shares are down 16.6% year to date. The company is set to report first-quarter 2022 results on May 4.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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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.