We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Crocs and Brady have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 18, 2022 – Zacks Equity Research shares Enphase Crocs (CROX - Free Report) as the Bull of the Day and Brady asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on EQT Corp. (EQT - Free Report) , Comstock Resources (CRK - Free Report) and Range Resources (RRC - Free Report) .
Crocs is a Zacks Rank #1 (Strong Buy) and it sports a B for Value and a B for Growth. Crox has really come full circle, as it started out as a fad and then was really over exposed. It kind of fell off the radar, but now Crox is making a comeback of sorts. Let’s explore more about this company in this Bull of The Day article.
Description
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. The company sells its products in approximately 85 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. As of December 31, 2021, it had 193 outlet stores, 107 retail stores, 373 company-operated stores, 73 kiosks and store-in-stores, and 14 company-operated e-commerce sites. The company serves in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, 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.
For CROX, 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 21%.
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 dropped by a cent to $2.57.
Next quarter has also fallen by a penny to $2.17.
The full fiscal year 2022 has increased from $10.06 to $10.04.
Next fiscal year has seen the estimate move from $10.83 to $10.68.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is somewhat mixed. I see the forward earnings multiple works out to be 7.7x and that is very low for a name that has posted topline growth of 50% in the most recent quarter. Price to book comes in at 9.7x which is a little high.
Brady 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
Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. It also offers stock and custom identification products, as well as sells related resale products. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.
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 BRC, I have two beats of the Zacks Consensus Estimate, one meet and one miss. 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 BRC see annual estimates moving lower.
The current fiscal year consensus number moved from $3.45 to $3.30 over the last 60 days.
The next year has moved from $3.40 to $3.35.
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:
Natural Gas Stalls 8th Straight Week, Still Up Big Year-to-Date
The U.S. Energy Department's weekly inventory release showed a larger-than-expected increase in natural gas supplies. The negative inventory numbers, coupled with other factors, meant that futures fell for the eighth week in a row to settle at its lowest level in almost three months.
Despite this, the market has been kind to natural gas in 2022, with the commodity trading considerably higher year to date and hitting $10 for the first time since 2008. Natural gas stocks like EQT Corp., Comstock Resources and Range Resources have been some of the prime beneficiaries of the price appreciation.
EIA Reports a Build Larger Than Market Expectations
Stockpiles held in underground storage in the lower 48 states rose 125 billion cubic feet (Bcf) for the week ended Oct 7, exceeding the guidance of a 123 Bcf addition per the analysts surveyed by S&P Global Commodity Insights.
The increase was also well above last year’s injection of 86 Bcf for the same corresponding week and the five-year (2017-2021) average net build of 82 Bcf.
The latest increment puts total natural gas stocks at 3,231 Bcf, which is still 126 Bcf (3.8%) below the 2021 level at this time and 221 Bcf (6.4%) lower than the five-year average.
The total supply of natural gas averaged 105.4 Bcf per day, down 1.1 Bcf per day on a weekly basis due to a dip in dry production (from its record level) and lower shipments from Canada
Meanwhile, daily consumption rose 1.8% to 91.3 Bcf from 89.7 Bcf in the previous week, mainly reflecting a stronger power burn and increased residential/commercial demand.
Natural Gas Logs its Eighth Straight Weekly Fall
Natural gas prices tumbled last week, following the higher-than-expected inventory build. Futures for November delivery ended Friday at $6.453 on the New York Mercantile Exchange, falling around 4.4% from the previous week’s closing. The decrease in natural gas realization — for the eighth straight week — is also the result of a boom in supplies and the prediction of mild ‘shoulder season’ weather.
As is the norm with natural gas, changes in temperature and weather forecasts can lead to price swings. The latest models anticipate light temperature-driven consumption over the near term (with little use of air conditioning or heater across much of the Lower 48), which is a negative for prices.
An increase in natural gas production has also kept the commodity in check. With the upstream operators finally responding to price incentives and ramping up volumes in the last two months, daily production has topped or hovered around 100 Bcf in recent weeks. This wave of new supply is expected to largely neutralize concerns that the market might enter the winter withdrawal season with gas in storage well below normal. Having said that, current inventories are still pretty tight and remain more than 6% below their five-year average.
The one thing supporting natural gas is a stable demand catalyst in the form of continued strong LNG feedgas deliveries. LNG shipments for export from the United States have been robust for months on the back of environmental reasons and record-high prices of the super-chilled fuel elsewhere. Now, with the Russia-Ukraine conflict, LNG has become even more coveted. As a matter of fact, earlier this year, the United States entered into a partnership with the EU to export additional LNG to wean the bloc off its dependence on Russian natural gas supplies. This means LNG deliveries are poised to rise further, especially with natural gas supplies from Moscow to Europe squeezed following leaks in the key Nord Stream pipeline.
However, the protracted downtime associated with the fire breakout at the Freeport LNG export plant in Texas has drowned out most of the positives as of now. The Quintana, TX facility — responsible for around 15% of U.S. liquefaction capacity — was knocked offline by the Jun 8 blast and is expected to only partially restart in November. Consequently, some of the LNG cargoes due for export are likely to have been diverted to the domestic market despite huge demand abroad.
Final Thoughts
Despite posting an eighth straight down week with combined losses of around 30% during this period, the natural gas market is still up almost 75% so far this year. As one would expect, the loss in momentum since mid-August has also pushed gas stocks down. However, certain companies like EQT, Comstock Resources and Range Resources have handsomely benefited from the windfall from higher natural gas prices year to date.
EQT: EQT is primarily an explorer and producer of natural gas, with a primary focus on the Appalachian Basin in Ohio, Pennsylvania and West Virginia. In terms of average daily sales volumes, EQT is the largest natural gas producer in the domestic market.
The company, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 365.2% for the current year. The Zacks Consensus Estimate for EQT’s 2022 earnings has been revised 12.3% upward over the past 60 days. EQT — valued at around $15.2 billion — has soared 88.6% n this year.
Comstock Resources: The company is active in the Haynesville shale in North Louisiana and East Texas — a premier natural gas basin. Currently, a Zacks #2 Ranked stock, CRK has a projected earnings growth rate of 231.9% for the current year.
The Zacks Consensus Estimate for Comstock Resources’ 2022 earnings has been revised 10.6% upward over the past 60 days. CRK shares have surged around 113.9% so far this year.
Range Resources: The upstream firm has a strong footing in the prolific Appalachian Basin. In the gas-rich resource, RRC has huge inventories of low-risk drilling sites that are likely to provide production for several decades.
Range Resources has a projected earnings growth rate of 167.8% for the current year. The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) natural gas player’s 2022 earnings has been revised 1.3% upward over the past 60 days. RRC shares have climbed 51% year to date.
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Crocs and Brady have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – October 18, 2022 – Zacks Equity Research shares Enphase Crocs (CROX - Free Report) as the Bull of the Day and Brady asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on EQT Corp. (EQT - Free Report) , Comstock Resources (CRK - Free Report) and Range Resources (RRC - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Crocs is a Zacks Rank #1 (Strong Buy) and it sports a B for Value and a B for Growth. Crox has really come full circle, as it started out as a fad and then was really over exposed. It kind of fell off the radar, but now Crox is making a comeback of sorts. Let’s explore more about this company in this Bull of The Day article.
Description
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. The company sells its products in approximately 85 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. As of December 31, 2021, it had 193 outlet stores, 107 retail stores, 373 company-operated stores, 73 kiosks and store-in-stores, and 14 company-operated e-commerce sites. The company serves in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, 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.
For CROX, 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 21%.
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 dropped by a cent to $2.57.
Next quarter has also fallen by a penny to $2.17.
The full fiscal year 2022 has increased from $10.06 to $10.04.
Next fiscal year has seen the estimate move from $10.83 to $10.68.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is somewhat mixed. I see the forward earnings multiple works out to be 7.7x and that is very low for a name that has posted topline growth of 50% in the most recent quarter. Price to book comes in at 9.7x which is a little high.
Bear of the Day:
Brady 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
Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. It also offers stock and custom identification products, as well as sells related resale products. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.
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 BRC, I have two beats of the Zacks Consensus Estimate, one meet and one miss. 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 BRC see annual estimates moving lower.
The current fiscal year consensus number moved from $3.45 to $3.30 over the last 60 days.
The next year has moved from $3.40 to $3.35.
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:
Natural Gas Stalls 8th Straight Week, Still Up Big Year-to-Date
The U.S. Energy Department's weekly inventory release showed a larger-than-expected increase in natural gas supplies. The negative inventory numbers, coupled with other factors, meant that futures fell for the eighth week in a row to settle at its lowest level in almost three months.
Despite this, the market has been kind to natural gas in 2022, with the commodity trading considerably higher year to date and hitting $10 for the first time since 2008. Natural gas stocks like EQT Corp., Comstock Resources and Range Resources have been some of the prime beneficiaries of the price appreciation.
EIA Reports a Build Larger Than Market Expectations
Stockpiles held in underground storage in the lower 48 states rose 125 billion cubic feet (Bcf) for the week ended Oct 7, exceeding the guidance of a 123 Bcf addition per the analysts surveyed by S&P Global Commodity Insights.
The increase was also well above last year’s injection of 86 Bcf for the same corresponding week and the five-year (2017-2021) average net build of 82 Bcf.
The latest increment puts total natural gas stocks at 3,231 Bcf, which is still 126 Bcf (3.8%) below the 2021 level at this time and 221 Bcf (6.4%) lower than the five-year average.
The total supply of natural gas averaged 105.4 Bcf per day, down 1.1 Bcf per day on a weekly basis due to a dip in dry production (from its record level) and lower shipments from Canada
Meanwhile, daily consumption rose 1.8% to 91.3 Bcf from 89.7 Bcf in the previous week, mainly reflecting a stronger power burn and increased residential/commercial demand.
Natural Gas Logs its Eighth Straight Weekly Fall
Natural gas prices tumbled last week, following the higher-than-expected inventory build. Futures for November delivery ended Friday at $6.453 on the New York Mercantile Exchange, falling around 4.4% from the previous week’s closing. The decrease in natural gas realization — for the eighth straight week — is also the result of a boom in supplies and the prediction of mild ‘shoulder season’ weather.
As is the norm with natural gas, changes in temperature and weather forecasts can lead to price swings. The latest models anticipate light temperature-driven consumption over the near term (with little use of air conditioning or heater across much of the Lower 48), which is a negative for prices.
An increase in natural gas production has also kept the commodity in check. With the upstream operators finally responding to price incentives and ramping up volumes in the last two months, daily production has topped or hovered around 100 Bcf in recent weeks. This wave of new supply is expected to largely neutralize concerns that the market might enter the winter withdrawal season with gas in storage well below normal. Having said that, current inventories are still pretty tight and remain more than 6% below their five-year average.
The one thing supporting natural gas is a stable demand catalyst in the form of continued strong LNG feedgas deliveries. LNG shipments for export from the United States have been robust for months on the back of environmental reasons and record-high prices of the super-chilled fuel elsewhere. Now, with the Russia-Ukraine conflict, LNG has become even more coveted. As a matter of fact, earlier this year, the United States entered into a partnership with the EU to export additional LNG to wean the bloc off its dependence on Russian natural gas supplies. This means LNG deliveries are poised to rise further, especially with natural gas supplies from Moscow to Europe squeezed following leaks in the key Nord Stream pipeline.
However, the protracted downtime associated with the fire breakout at the Freeport LNG export plant in Texas has drowned out most of the positives as of now. The Quintana, TX facility — responsible for around 15% of U.S. liquefaction capacity — was knocked offline by the Jun 8 blast and is expected to only partially restart in November. Consequently, some of the LNG cargoes due for export are likely to have been diverted to the domestic market despite huge demand abroad.
Final Thoughts
Despite posting an eighth straight down week with combined losses of around 30% during this period, the natural gas market is still up almost 75% so far this year. As one would expect, the loss in momentum since mid-August has also pushed gas stocks down. However, certain companies like EQT, Comstock Resources and Range Resources have handsomely benefited from the windfall from higher natural gas prices year to date.
EQT: EQT is primarily an explorer and producer of natural gas, with a primary focus on the Appalachian Basin in Ohio, Pennsylvania and West Virginia. In terms of average daily sales volumes, EQT is the largest natural gas producer in the domestic market.
The company, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 365.2% for the current year. The Zacks Consensus Estimate for EQT’s 2022 earnings has been revised 12.3% upward over the past 60 days. EQT — valued at around $15.2 billion — has soared 88.6% n this year.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Comstock Resources: The company is active in the Haynesville shale in North Louisiana and East Texas — a premier natural gas basin. Currently, a Zacks #2 Ranked stock, CRK has a projected earnings growth rate of 231.9% for the current year.
The Zacks Consensus Estimate for Comstock Resources’ 2022 earnings has been revised 10.6% upward over the past 60 days. CRK shares have surged around 113.9% so far this year.
Range Resources: The upstream firm has a strong footing in the prolific Appalachian Basin. In the gas-rich resource, RRC has huge inventories of low-risk drilling sites that are likely to provide production for several decades.
Range Resources has a projected earnings growth rate of 167.8% for the current year. The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) natural gas player’s 2022 earnings has been revised 1.3% upward over the past 60 days. RRC shares have climbed 51% year to date.
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.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
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.