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Zscaler and KnightSwift Transportation have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 25, 2022 – Zacks Equity Research sharesZscaler (ZS - Free Report) as the Bull of the Day and KnightSwift Transportation (KNX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet's (GOOGL - Free Report) , Aspen Technology (AZPN - Free Report) and Amdocs (DOX - Free Report) .
Zscaler is a Zacks Rank #1 (Strong Buy) and it sports a F for Value and a B for Growth. That sort of growth divergence excites me. I know right away I am on the right path as I focused more on growth than value. I love to see a strong growth score and a weak value score. Let's explore more about this company in this Bull of The Day article.
Description
Zscaler, Inc. operates as a cloud security company worldwide. It offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California..
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 ZS, 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 26%.
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 ZS.
This quarter has moved from $0.19 to $0.26.
Next quarter has increased by a nickel to $0.26.
The full fiscal year 2022 has increased from $1.03 to $1.18.
Next fiscal year has seen the estimate move from $1.60 to $1.67.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is stretched. I see the forward earnings multiple works out to be 127x and that is very high. Top line growth of 61% is great to see, but that number needs to move a lot higher to justify the high PE. Price to book comes in a 37x which is super high even though this is an asset slim business.
KnightSwift Transportation 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
Knight-Swift Transportation Holdings Inc. provides truckload transportation services in the United States, Mexico, and Canada. The company operates through four segments: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Its trucking services include irregular route, dedicated, refrigerated, flatbed, expedited, dry van, drayage, and cross-border transportation of various products, goods, and materials. The company also provides logistics and intermodal services, such as brokerage, intermodal, and certain logistics; freight management; and non-trucking services.
The company operates a total of 18,019 tractors, which comprises 16,166 company tractors and 1,853 independent contractor tractors, as well as 67,606 trailers; 2,735 tractors and 7,413 trailers; and 597 tractors and 10,847 intermodal containers. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona.
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 KNX, I have three beats of the Zacks Consensus Estimate 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 KNX see annual estimates moving lower.
The current fiscal year consensus number moved from $5.39 to $5.26 over the last 60 days.
The next year has moved from $4.72 to $4.46.
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:
Will Google Cloud Strength Aid Alphabet's (GOOGL - Free Report) Q3 Earnings?
Alphabet's third-quarter 2022 results, scheduled to be released on Oct 25, are likely to reflect strength in its cloud arm, Google Cloud.
Google Cloud turned out to be the key catalyst for Alphabet's growth on the back of its strengthening cloud service offerings.
GOOGL's cloud offerings include Google Cloud Platform and Google Workspace, which are continuously gaining momentum in the booming cloud computing market. Google's growing investments in infrastructure, security, data management, analytics and AI remain major positives.
Alphabet is consistently witnessing strong revenue growth generated by the underlined segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools.
Revenues from the segment were $6.3 billion in second-quarter 2022. The figure accounted for 9% of total revenues and exhibited year-over-year growth of 35.6%.
For third-quarter 2022, the Zacks Consensus Estimate for Google Cloud revenues is pegged at $6.7 billion, suggesting growth of 34.9% from the prior-year quarter's reported figure.
Click here to know how Alphabet's overall third-quarter performance is likely to have been.
Factors to Consider
Google's strengthening efforts toward expanding its cloud services portfolio, data centers, availability zones and regions are likely to have helped it gain a plum share in the highly competitive cloud market.
In the third quarter, Alphabet opened a data center in Singapore, which marks its third such establishment in the country. The move expanded Google's presence in Singapore and the Asia-Pacific (APAC) region.
Moreover, Alphabet's growing momentum across regions like North America, Latin America, Europe and the APAC on the back of strengthening Google Cloud Platform and Google Workspace offerings, is expected to have driven its cloud revenues in the quarter under review.
Increasing traction among government agencies and public institutions on the back of the Google Public Sector launch is likely to have contributed well.
Additionally, GOOGL's efforts in integrating data lakes, data warehouses, data governance and advanced machine learning into a single platform are expected to have bolstered its prospects in the data cloud market during the to-be-reported quarter.
Google's deepening focus on providing a secure cloud infrastructure owing to its growing cybersecurity efforts might have been a positive.
Google completed the acquisition of Mandiant, a provider of cybersecurity services, in the third quarter. The buyout is expected to have strengthened Google's cloud business and contributed well to Google Cloud revenues.
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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Zscaler and KnightSwift Transportation have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – October 25, 2022 – Zacks Equity Research shares Zscaler (ZS - Free Report) as the Bull of the Day and KnightSwift Transportation (KNX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet's (GOOGL - Free Report) , Aspen Technology (AZPN - Free Report) and Amdocs (DOX - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Zscaler is a Zacks Rank #1 (Strong Buy) and it sports a F for Value and a B for Growth. That sort of growth divergence excites me. I know right away I am on the right path as I focused more on growth than value. I love to see a strong growth score and a weak value score. Let's explore more about this company in this Bull of The Day article.
Description
Zscaler, Inc. operates as a cloud security company worldwide. It offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California..
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 ZS, 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 26%.
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 ZS.
This quarter has moved from $0.19 to $0.26.
Next quarter has increased by a nickel to $0.26.
The full fiscal year 2022 has increased from $1.03 to $1.18.
Next fiscal year has seen the estimate move from $1.60 to $1.67.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is stretched. I see the forward earnings multiple works out to be 127x and that is very high. Top line growth of 61% is great to see, but that number needs to move a lot higher to justify the high PE. Price to book comes in a 37x which is super high even though this is an asset slim business.
Bear of the Day:
KnightSwift Transportation 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
Knight-Swift Transportation Holdings Inc. provides truckload transportation services in the United States, Mexico, and Canada. The company operates through four segments: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Its trucking services include irregular route, dedicated, refrigerated, flatbed, expedited, dry van, drayage, and cross-border transportation of various products, goods, and materials. The company also provides logistics and intermodal services, such as brokerage, intermodal, and certain logistics; freight management; and non-trucking services.
The company operates a total of 18,019 tractors, which comprises 16,166 company tractors and 1,853 independent contractor tractors, as well as 67,606 trailers; 2,735 tractors and 7,413 trailers; and 597 tractors and 10,847 intermodal containers. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona.
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 KNX, I have three beats of the Zacks Consensus Estimate 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 KNX see annual estimates moving lower.
The current fiscal year consensus number moved from $5.39 to $5.26 over the last 60 days.
The next year has moved from $4.72 to $4.46.
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:
Will Google Cloud Strength Aid Alphabet's (GOOGL - Free Report) Q3 Earnings?
Alphabet's third-quarter 2022 results, scheduled to be released on Oct 25, are likely to reflect strength in its cloud arm, Google Cloud.
Google Cloud turned out to be the key catalyst for Alphabet's growth on the back of its strengthening cloud service offerings.
GOOGL's cloud offerings include Google Cloud Platform and Google Workspace, which are continuously gaining momentum in the booming cloud computing market. Google's growing investments in infrastructure, security, data management, analytics and AI remain major positives.
Alphabet is consistently witnessing strong revenue growth generated by the underlined segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools.
Revenues from the segment were $6.3 billion in second-quarter 2022. The figure accounted for 9% of total revenues and exhibited year-over-year growth of 35.6%.
For third-quarter 2022, the Zacks Consensus Estimate for Google Cloud revenues is pegged at $6.7 billion, suggesting growth of 34.9% from the prior-year quarter's reported figure.
Click here to know how Alphabet's overall third-quarter performance is likely to have been.
Factors to Consider
Google's strengthening efforts toward expanding its cloud services portfolio, data centers, availability zones and regions are likely to have helped it gain a plum share in the highly competitive cloud market.
In the third quarter, Alphabet opened a data center in Singapore, which marks its third such establishment in the country. The move expanded Google's presence in Singapore and the Asia-Pacific (APAC) region.
Moreover, Alphabet's growing momentum across regions like North America, Latin America, Europe and the APAC on the back of strengthening Google Cloud Platform and Google Workspace offerings, is expected to have driven its cloud revenues in the quarter under review.
Increasing traction among government agencies and public institutions on the back of the Google Public Sector launch is likely to have contributed well.
Additionally, GOOGL's efforts in integrating data lakes, data warehouses, data governance and advanced machine learning into a single platform are expected to have bolstered its prospects in the data cloud market during the to-be-reported quarter.
Google's deepening focus on providing a secure cloud infrastructure owing to its growing cybersecurity efforts might have been a positive.
Google completed the acquisition of Mandiant, a provider of cybersecurity services, in the third quarter. The buyout is expected to have strengthened Google's cloud business and contributed well to Google Cloud revenues.
Zacks Rank & Stocks to Consider
Currently, Alphabet has a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Aspen Technology and Amdocs, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Asure Software has lost 14% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 32.8%.
Aspen Technology has returned 62.4% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.2%.
Amdocs has gained 8.9% in the year-to-date period. The long-term earnings growth rate for DOX is currently projected at 11.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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.