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e.l.f. Beauty and Arrow Electronics have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 13, 2022 – Zacks Equity Research shares e.l.f. Beauty (ELF - Free Report) as the Bull of the Day and Arrow Electronics (ARW - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Chipotle Mexican Grill, Inc. (CMG - Free Report) , Wingstop Inc. (WING - Free Report) and Noodles & Co. (NDLS - Free Report) .
e.l.f. Beauty is a Zacks Rank #1 (Strong Buy) and it sports an F for Value and an A for Growth. I like it when I see the divergence in growth and value scores as it tells me that I am on the right path. This is not a store for woodland creatures (but they do not discriminate against said elf’s) the e.l.f stands for Eyes, Lips and Face. Let’s explore more about this company in this Bull of The Day article.
Description
e.l.f. Beauty, Inc. operates as a cosmetic company. Its cosmetic category primarily consists of face makeup, eye makeup, lip products, nail products and cosmetics sets/kits, excluding beauty tools and accessories, such as brushes and applicators. e.l.f. Beauty, Inc. is based in Oakland, United States.
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 ELF, I see four straight beats of the Zacks Consensus Estimate. That is great 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 77%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for ELF.
This quarter has held still at $0.14.
Next quarter has also held still at $0.20.
The full fiscal year 2022 has increased from $0.88 to $0.90
Next fiscal year has seen the estimate move from $0.97 to $0.99.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is somewhat high. I see the forward earnings multiple works out to be 44x and that is a lot for a name that has posted topline growth of 26% in the most recent quarter. Price to book comes in at 6.5x, which is also a little high.
Margins have seen an increase over the last three quarters. With revenue growing and margins expanding, EPS will continue to move higher.
Arrow Electronics is a Zacks Rank #5 (Strong Sell) but it could be worth a deeper look even as estimates have moved lower. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) in this Bear of the Day article.
Description
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions.
The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training.
The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.
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 ARW, I see four 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 ARW see annual estimates moving lower.
The current fiscal year consensus number moved from $21.82 to $21.79 over the last 60 days.
The next year has moved from $17.99 to 17.08.
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:
3 Restaurant Stocks Crushing the S&P 500 Despite Inflation Woes
There’s no denying the fact that market conditions have been unfavorable for investors so far in 2022. Of late, most industries are reeling under the pressure of high inflation and the restaurant industry is no exception. Intense competition, high wages and food cost inflation have taken a toll on companies. These concerns have been affecting margins of late.
The rise in meat and seafood costs, including ribs, prime rib, ribeye and tri-tip, and salmon, is hurting the industry. The restaurant industry has also been facing declining traffic for quite some time now. Inflation has aggravated the scenario. High inflation leads to higher menu prices, which, in turn, have been hurting traffic.
Despite the aforementioned concerns the industry sales are gradually improving. The industry body, the National Restaurant Association (NRA), forecasts restaurant and bars industry sales to reach $898 billion in 2022. The improvement can be attributed to the enhancement in fundamentals such as modifications in business processes, staffing, floor plans and technology.
Restaurant operators’ focus on digital innovation, sales-building initiatives and cost-saving efforts has been acting as a catalyst. With the growing influence of the Internet, digital innovation has become the need of the hour. Restaurant operators are constantly partnering with delivery channels and digital platforms to drive incremental sales.
Despite increasing sales, high costs have been hurting the industry’s performance. However, stocks like Chipotle Mexican Grill, Inc., Wingstop Inc. and Noodles & Co. have outperformed the industry and the S&P 500 in the past three months.
3 Restaurant Stocks Worth a Bet
Chipotle: The company has been benefiting from its digital efforts, Chipotlane add-ons and marketing initiatives. These, along with strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margins, have been aiding the company.
In the past three months, the company’s shares have gained 16.9% against the industry and the S&P 500’s decline of 0.4% and 5.1%, respectively. This Zacks Rank #2 (Buy) company has an estimated long-term earnings growth rate of 23.3%. In the past 30 days, earnings estimates for 2022 and 2023 have witnessed upward revisions of 0.2% and 0.8%, respectively.
Wingstop: The company is benefiting from robust system-wide sales, royalty revenues and franchise fees. New restaurant openings are also aiding the company. Since Jun 26, 2021, the company has opened 229 net franchise restaurants.
In the past three months, the company’s shares have gained 39.5%. This Zacks Rank #1 (Strong Buy) company has an estimated long-term earnings growth rate of 11%. The company’s earnings in 2022 and 2023 are likely to witness growth of 16.3% and 17.4%, respectively. You can see the complete list of today's Zacks #1 Rank stocks here.
Noodles & Company: The company continues to gain from the streamlining of menu and innovation, effective marketing strategy and increased focus on the off-premise business. An increase in digital sales continues to favor the company.
In the past three months, the company’s shares have gained 6.8%. This Zacks Rank #2 company has an estimated long-term earnings growth rate of 10%. The company’s earnings in 2023 are likely to grow 1,600% year over year.
Why Haven’t You Looked at Zacks' Top Stocks?
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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.
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e.l.f. Beauty and Arrow Electronics have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – October 13, 2022 – Zacks Equity Research shares e.l.f. Beauty (ELF - Free Report) as the Bull of the Day and Arrow Electronics (ARW - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Chipotle Mexican Grill, Inc. (CMG - Free Report) , Wingstop Inc. (WING - Free Report) and Noodles & Co. (NDLS - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
e.l.f. Beauty is a Zacks Rank #1 (Strong Buy) and it sports an F for Value and an A for Growth. I like it when I see the divergence in growth and value scores as it tells me that I am on the right path. This is not a store for woodland creatures (but they do not discriminate against said elf’s) the e.l.f stands for Eyes, Lips and Face. Let’s explore more about this company in this Bull of The Day article.
Description
e.l.f. Beauty, Inc. operates as a cosmetic company. Its cosmetic category primarily consists of face makeup, eye makeup, lip products, nail products and cosmetics sets/kits, excluding beauty tools and accessories, such as brushes and applicators. e.l.f. Beauty, Inc. is based in Oakland, United States.
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 ELF, I see four straight beats of the Zacks Consensus Estimate. That is great 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 77%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for ELF.
This quarter has held still at $0.14.
Next quarter has also held still at $0.20.
The full fiscal year 2022 has increased from $0.88 to $0.90
Next fiscal year has seen the estimate move from $0.97 to $0.99.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is somewhat high. I see the forward earnings multiple works out to be 44x and that is a lot for a name that has posted topline growth of 26% in the most recent quarter. Price to book comes in at 6.5x, which is also a little high.
Margins have seen an increase over the last three quarters. With revenue growing and margins expanding, EPS will continue to move higher.
Bear of the Day:
Arrow Electronics is a Zacks Rank #5 (Strong Sell) but it could be worth a deeper look even as estimates have moved lower. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) in this Bear of the Day article.
Description
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions.
The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training.
The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.
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 ARW, I see four 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 ARW see annual estimates moving lower.
The current fiscal year consensus number moved from $21.82 to $21.79 over the last 60 days.
The next year has moved from $17.99 to 17.08.
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:
3 Restaurant Stocks Crushing the S&P 500 Despite Inflation Woes
There’s no denying the fact that market conditions have been unfavorable for investors so far in 2022. Of late, most industries are reeling under the pressure of high inflation and the restaurant industry is no exception. Intense competition, high wages and food cost inflation have taken a toll on companies. These concerns have been affecting margins of late.
The rise in meat and seafood costs, including ribs, prime rib, ribeye and tri-tip, and salmon, is hurting the industry. The restaurant industry has also been facing declining traffic for quite some time now. Inflation has aggravated the scenario. High inflation leads to higher menu prices, which, in turn, have been hurting traffic.
Despite the aforementioned concerns the industry sales are gradually improving. The industry body, the National Restaurant Association (NRA), forecasts restaurant and bars industry sales to reach $898 billion in 2022. The improvement can be attributed to the enhancement in fundamentals such as modifications in business processes, staffing, floor plans and technology.
Restaurant operators’ focus on digital innovation, sales-building initiatives and cost-saving efforts has been acting as a catalyst. With the growing influence of the Internet, digital innovation has become the need of the hour. Restaurant operators are constantly partnering with delivery channels and digital platforms to drive incremental sales.
Despite increasing sales, high costs have been hurting the industry’s performance. However, stocks like Chipotle Mexican Grill, Inc., Wingstop Inc. and Noodles & Co. have outperformed the industry and the S&P 500 in the past three months.
3 Restaurant Stocks Worth a Bet
Chipotle: The company has been benefiting from its digital efforts, Chipotlane add-ons and marketing initiatives. These, along with strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margins, have been aiding the company.
In the past three months, the company’s shares have gained 16.9% against the industry and the S&P 500’s decline of 0.4% and 5.1%, respectively. This Zacks Rank #2 (Buy) company has an estimated long-term earnings growth rate of 23.3%. In the past 30 days, earnings estimates for 2022 and 2023 have witnessed upward revisions of 0.2% and 0.8%, respectively.
Wingstop: The company is benefiting from robust system-wide sales, royalty revenues and franchise fees. New restaurant openings are also aiding the company. Since Jun 26, 2021, the company has opened 229 net franchise restaurants.
In the past three months, the company’s shares have gained 39.5%. This Zacks Rank #1 (Strong Buy) company has an estimated long-term earnings growth rate of 11%. The company’s earnings in 2022 and 2023 are likely to witness growth of 16.3% and 17.4%, respectively. You can see the complete list of today's Zacks #1 Rank stocks here.
Noodles & Company: The company continues to gain from the streamlining of menu and innovation, effective marketing strategy and increased focus on the off-premise business. An increase in digital sales continues to favor the company.
In the past three months, the company’s shares have gained 6.8%. This Zacks Rank #2 company has an estimated long-term earnings growth rate of 10%. The company’s earnings in 2023 are likely to grow 1,600% year over year.
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.