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Avnet and Zumiez have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 9, 2022 – Zacks Equity Research shares Avnet (AVT - Free Report) as the Bull of the Day and Zumiez (ZUMZ - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on The Walt Disney Co. (DIS - Free Report) , Meta's , and Paramount Global (PARA - Free Report) .
Avnet is a Zacks Rank #1 (Strong Buy) that recently reported a strong quarter and has been moving higher ever since. Just what were the details of the report and how did the outlook change for this electronic parts distributor? Let's explore more about this stock in this Bull Of The Day article.
Description
Avnet, Inc. is a distributor of electronic components headquartered in Phoenix, Arizona, named after Charles Avnet, who founded the company in 1921. After its start on Manhattan's Radio Row, the company became incorporated in 1955 and began trading on the New York Stock Exchange in 1961.
Most Recent Earnings Report
I see the most recent earnings report was a huge beat. The company posted $2.15 in EPS when Wall Street was looking for $1.51. That 64 cent difference translates to a positive earnings surprise of 42%.
Following the report, analysts that cover this stock raised their earnings estimates for the next two quarters as well as for the full year and the next full year as well.
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 AVT, I see four straight quarters where the company beat of the Zacks Consensus Estimate. That is always good to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 20%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For AVT, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
The full fiscal year 2022 has moved from $5.67 to $6.83.
Next year has also increased from $5.64 to $6.99.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
I see a great valuation for Avnet. The forward PE is 7.2x and that is very low considering the 32% topline growth the company posted in the most recent quarter. The price to book of 1.1x is very low given the growth in earnings. The price to sales comes in at 0.2x, which is low and indicates that the market does not value each sales dollar all that highly. Margins have seen a steady increase over the last three quarters, moving from 1.76% to 2.14% and then most recently clocking in at 2.6%.
Zumiez is a Zacks Rank #5 (Strong Sell) after missing on the bottom line in the most recent earnings release. With the economy looking at the real possibility of a recession investors are not going to be kind to stocks that miss earnings. Let's look at why this stock is a Zacks Rank #5 (Strong Sell) in this Bear of the Day article.
Description
Zumiez Inc. is an American multinational specialty clothing store founded by Thomas Campion and Gary Haakenson in 1978, and publicly traded since 2005. The company is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women.
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 ZUMZ, I see two straight misses which preceded two straight beats 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 ZUMZ I see annual estimates moving lower.
The current year 2022 consensus number has dropped from $4.73 to $3.61 over the last 60 days.
The next year has dropped from $5.71 to $4.01 over the same time period.
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 negative 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:
Disney Hires ex-Apple Exec to Oversee Metaverse Push
The Walt Disney Co. shares are down 30.4% year to date compared with the Zacks Media Conglomerates industry's fall of 24.2% and the Consumer Discretionary sector's decline of 27.2%. This Zacks Rank #4 (Sell) company has been witnessing a broader pullback in the market on concerns about inflation and other macroeconomic factors.
However, Disney has been taking efforts to bounce back from the plunge. The company has been showing interest in the metaverse since the curtain was raised by Meta's Facebook in 2021. Disney had previously stated that it sees metaverse as the next evolution of its almost 100-year-old storytelling business.
Per a Deadline article, the company recently hired Mark Bozon as the vice president (VP) of the Next Generation Storytelling Creative Experiences in Disney. Bozon spent 12 years at Apple in creative and gaming executive roles. His role will likely include businesses across multiple aspects of Disney, including toys, parks and TV.
Bozon has been hired by Mike White, the senior VP of Next Generation Storytelling Creative Experiences at Disney. Earlier this year, White was appointed to lead the entertainment giant's strategy for the metaverse.
Rising Competition in The Metaverse Space
Amid the persistent metaverse hype in the news and across social media, several companies are starting to contemplate their role in the same. Companies across all major industry verticals have started investing in emerging technologies such as augmented reality and virtual reality since these technologies will potentially bring industries closer to the metaverse.
Metaverse gained significant attention in the industry after Facebook changed its company name to Meta Platforms in 2021. With the name change, Meta confirmed that it is rebranding itself and focusing on building the metaverse.
Disney is known to adopt newer technologies as soon as it becomes available. So, it comes as no surprise when the company announced its plans to join the metaverse bandwagon.
In the last reported quarter, management stated that Disney will be exploring options beyond entertainment and sports streaming. Disney has hinted that this expansion would be focused on completely new verticals, such as sports betting, gaming and the Metaverse.
Per a Verdict article, earlier this year, Disney received approval from the United States Patent and Trademark Office (USPTO) to create its virtual world stimulator at its theme parks. The patent outlines Disney's plans to create real-world theme park ride where users can experience a 3D virtual world, using simultaneous localization and mapping
Disney has been using 3-D technology in its parks, primarily for large-scale experiences with many guests. The company will focus on creating individual guest experiences. With the focus on metaverse, Disney intends to create opportunities to better connect physical spaces like parks to digital ventures such as its streaming service Disney+ and virtual environments as and when they emerge.
Disney has already experimented with blockchain technologies such as non-fungible tokens (NFTs). Last year, Disney unveiled a series of Golden Moments NFTs, which resemble superheroes based on Disney, Star Wars, Pixar and Marvel Stories.
Several entertainment companies are exploring ways to monetize the Metaverse. Studios including Paramount Global have entered the metaverse by minting collectibles related to their movies.
Last year, Paramount Global entered into a strategic partnership with RECUR, an NFT company, to create a unified environment where fans can buy, collect and trade NFTs as digital products and collectibles across Paramount's cherished franchises.
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/performancefor information about the performance numbers displayed in this press release.
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Avnet and Zumiez have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 9, 2022 – Zacks Equity Research shares Avnet (AVT - Free Report) as the Bull of the Day and Zumiez (ZUMZ - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on The Walt Disney Co. (DIS - Free Report) , Meta's , and Paramount Global (PARA - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Avnet is a Zacks Rank #1 (Strong Buy) that recently reported a strong quarter and has been moving higher ever since. Just what were the details of the report and how did the outlook change for this electronic parts distributor? Let's explore more about this stock in this Bull Of The Day article.
Description
Avnet, Inc. is a distributor of electronic components headquartered in Phoenix, Arizona, named after Charles Avnet, who founded the company in 1921. After its start on Manhattan's Radio Row, the company became incorporated in 1955 and began trading on the New York Stock Exchange in 1961.
Most Recent Earnings Report
I see the most recent earnings report was a huge beat. The company posted $2.15 in EPS when Wall Street was looking for $1.51. That 64 cent difference translates to a positive earnings surprise of 42%.
Following the report, analysts that cover this stock raised their earnings estimates for the next two quarters as well as for the full year and the next full year as well.
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 AVT, I see four straight quarters where the company beat of the Zacks Consensus Estimate. That is always good to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 20%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For AVT, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
The full fiscal year 2022 has moved from $5.67 to $6.83.
Next year has also increased from $5.64 to $6.99.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
I see a great valuation for Avnet. The forward PE is 7.2x and that is very low considering the 32% topline growth the company posted in the most recent quarter. The price to book of 1.1x is very low given the growth in earnings. The price to sales comes in at 0.2x, which is low and indicates that the market does not value each sales dollar all that highly. Margins have seen a steady increase over the last three quarters, moving from 1.76% to 2.14% and then most recently clocking in at 2.6%.
Bear of the Day:
Zumiez is a Zacks Rank #5 (Strong Sell) after missing on the bottom line in the most recent earnings release. With the economy looking at the real possibility of a recession investors are not going to be kind to stocks that miss earnings. Let's look at why this stock is a Zacks Rank #5 (Strong Sell) in this Bear of the Day article.
Description
Zumiez Inc. is an American multinational specialty clothing store founded by Thomas Campion and Gary Haakenson in 1978, and publicly traded since 2005. The company is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women.
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 ZUMZ, I see two straight misses which preceded two straight beats 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 ZUMZ I see annual estimates moving lower.
The current year 2022 consensus number has dropped from $4.73 to $3.61 over the last 60 days.
The next year has dropped from $5.71 to $4.01 over the same time period.
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 negative 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:
Disney Hires ex-Apple Exec to Oversee Metaverse Push
The Walt Disney Co. shares are down 30.4% year to date compared with the Zacks Media Conglomerates industry's fall of 24.2% and the Consumer Discretionary sector's decline of 27.2%. This Zacks Rank #4 (Sell) company has been witnessing a broader pullback in the market on concerns about inflation and other macroeconomic factors.
However, Disney has been taking efforts to bounce back from the plunge. The company has been showing interest in the metaverse since the curtain was raised by Meta's Facebook in 2021. Disney had previously stated that it sees metaverse as the next evolution of its almost 100-year-old storytelling business.
Per a Deadline article, the company recently hired Mark Bozon as the vice president (VP) of the Next Generation Storytelling Creative Experiences in Disney. Bozon spent 12 years at Apple in creative and gaming executive roles. His role will likely include businesses across multiple aspects of Disney, including toys, parks and TV.
Bozon has been hired by Mike White, the senior VP of Next Generation Storytelling Creative Experiences at Disney. Earlier this year, White was appointed to lead the entertainment giant's strategy for the metaverse.
Rising Competition in The Metaverse Space
Amid the persistent metaverse hype in the news and across social media, several companies are starting to contemplate their role in the same. Companies across all major industry verticals have started investing in emerging technologies such as augmented reality and virtual reality since these technologies will potentially bring industries closer to the metaverse.
Metaverse gained significant attention in the industry after Facebook changed its company name to Meta Platforms in 2021. With the name change, Meta confirmed that it is rebranding itself and focusing on building the metaverse.
Disney is known to adopt newer technologies as soon as it becomes available. So, it comes as no surprise when the company announced its plans to join the metaverse bandwagon.
In the last reported quarter, management stated that Disney will be exploring options beyond entertainment and sports streaming. Disney has hinted that this expansion would be focused on completely new verticals, such as sports betting, gaming and the Metaverse.
Per a Verdict article, earlier this year, Disney received approval from the United States Patent and Trademark Office (USPTO) to create its virtual world stimulator at its theme parks. The patent outlines Disney's plans to create real-world theme park ride where users can experience a 3D virtual world, using simultaneous localization and mapping
Disney has been using 3-D technology in its parks, primarily for large-scale experiences with many guests. The company will focus on creating individual guest experiences. With the focus on metaverse, Disney intends to create opportunities to better connect physical spaces like parks to digital ventures such as its streaming service Disney+ and virtual environments as and when they emerge.
Disney has already experimented with blockchain technologies such as non-fungible tokens (NFTs). Last year, Disney unveiled a series of Golden Moments NFTs, which resemble superheroes based on Disney, Star Wars, Pixar and Marvel Stories.
Several entertainment companies are exploring ways to monetize the Metaverse. Studios including Paramount Global have entered the metaverse by minting collectibles related to their movies.
Last year, Paramount Global entered into a strategic partnership with RECUR, an NFT company, to create a unified environment where fans can buy, collect and trade NFTs as digital products and collectibles across Paramount's cherished franchises.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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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/performancefor information about the performance numbers displayed in this press release.