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Interactive Brokers and Generac Holdings have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – January 31, 2023 – Zacks Equity Research shares Interactive Brokers (IBKR - Free Report) as the Bull of the Day and Generac Holdings (GNRC - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) .
The Zacks Financial – Investment Bank industry is currently ranked in the top 22% (54 out of 249) of all Zacks Industries.
As we’re all aware, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A stock residing within the industry and a part of the Zacks Finance sector, Interactive Brokers, has seen its earnings outlook shift positively over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Interactive Brokers Group operates as an automated global electronic market maker and broker. The company strives to provide customers with advantageous execution prices and trading, risk and portfolio management tools, research facilities, and investment products all at low prices.
Let’s take a closer look at how the company currently stacks up.
Share Performance & Valuation
IBKR shares have been notably strong over the last six months, up nearly 40% and crushing the S&P 500’s performance.
The picture remains the same when shrinking the timeframe to encompass just 2023; year-to-date, IBKR shares have outperformed the S&P 500, up 7.4%.
Clearly, buyers have been present.
Further, IBKR shares currently trade at a 14.3X forward earnings multiple, a fraction of the 22.1X five-year median and nearly in line with the Zacks Finance sector average.
Quarterly Performance
Interactive Brokers has posted better-than-expected quarterly results as of late, exceeding the Zacks Consensus EPS Estimate in back-to-back quarters.
Just in its latest release, IBKR reported earnings more than 12% above expectations and posted a 5.3% revenue surprise.
Dividends
Who doesn’t enjoy getting paid?
Fortunately for those who seek income, Interactive Brokers has that covered; the company’s annual dividend currently yields a modest 0.5%, below the Zacks Finance sector by a fair margin.
In addition, the company’s 10% payout ratio is definitely sustainable.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Interactive Brokers would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
As we’re all very aware, 2022 was a challenging environment for many companies, with deep valuation slashes occurring regularly.
Fortunately, 2023 has certainly gotten off to a much better start, with green widespread across many areas year-to-date.
However, the outlook isn’t great for all companies, including Generac Holdings. Analysts have taken a bearish stance on the company’s earnings outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
Generac Holdings is a manufacturer of power generation equipment, energy storage systems, and other power products, including portable, residential, commercial, and industrial generators.
How does the company currently stack up? Let’s take a closer look.
Share Performance
GNRC shares haven’t fared well over the last six months, down roughly 60% and widely lagging behind the general market.
However, GNRC shares have busted out of the gate strong in 2023, up more than 12% and outperforming the S&P 500.
Growth Outlook
The company is forecasted to witness quite a slowdown in growth, with estimates indicating an 11% pullback in earnings for its current fiscal year (FY22) and a further 15% in FY23.
GNRC’s top-line is in slightly better shape, with estimates indicating a positive 20% Y/Y change in FY22 but a 7% pullback in FY23.
Quarterly Performance
Generac has primarily delivered better-than-expected quarterly results, exceeding earnings estimates in four consecutive quarters.
In its latest release, the company exceeded the Zacks Consensus EPS Estimate by roughly 8% but marginally fell short of revenue expectations.
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Generac Holdings is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Apple, Amazon, Alphabet: Global Week Ahead
Each earnings season moves fast. We get over 100 major company reports this week.
Within this Global Week Ahead report surge, three major U.S. tech firms supply results.
Forward guidance is always key.
This Q4 earnings season is particularly sensitive to broad company data laying out any recession scares, and seeks insight into upstream and downstream price movements.
The Fed meets at mid-week too.
The latest FOMC policy decisions arrive on Wednesday, Feb. 1st.
On Thursday, follow-on central bank decisions arrive from the European Central Bank (ECB) and the Bank of England (BoE).
China’s workers come back from their Lunar New Year holiday.
(1) On Thursday, Apple, Amazon and Alphabet Report Q4 Earnings
The three “A's" — Apple, Amazon and Alphabet, three of the top four U.S. companies by market value — all report earnings on Thursday.
Over 100 companies in the S&P 500 deliver results as the earnings season gets into full swing.
Microsoft, the fourth of the U.S. mega-caps, has already reported results. Its cloud business hit Wall Street targets, but it delivered a lackluster forecast that offered little cheer to the broader tech sector.
Tech companies generally are under pressure to grow while cutting costs ahead of a potential recession.
S&P 500 earnings are set to have fallen -2.9% from the year-ago period, according to Refinitiv IBES data as of Tuesday.
(2) The Fed Meeting Dominates Markets, Of Course
Will the Federal Reserve tone down its hawkish rhetoric in the face of cooling inflation or stick to its guns?
Investors widely expect a 25-basis point rate increase at the Feb. 1st meeting and for rates to stop short of hitting 5.0%.
Fed officials, however, have indicated they expect the key policy rate to top out at 5.00-5.25% this year.
Whatever signals the Fed sends could play an importing role in determining the longevity of the rally so far this year.
Dollar bears, meanwhile, will watch for dovish leanings that could further accelerate a decline in the greenback.
The currency has tumbled nearly 11% since hitting multi-decade highs last September.
(3) On Thursday, European Central Bank (ECB) Meets
The ECB meets Thursday and is widely tipped to raise rates by 50 bps to 2.5%. Markets care most about what happens next and that's not clear.
Policy hawks are already pushing for more of the same in March. After all, inflation is well above the 2% target as preliminary January data out on Wednesday is likely to show.
Futures price in a further 100 bps worth of tightening between now and July. Amundi reckons ECB rates could reach 4.0%.
But the doves are getting louder. Yes, inflation is high but it's off record peaks, they say. So, caution is needed before pre-committing to rate hikes beyond February.
Markets, whipped around by the differing opinions, will be looking for the ECB to speak with one voice. That, at least, is the hope.
(4) Bank of England (BoE) to Raise 50 Basis Points
The Bank of England, the first of the major central banks to turn hawkish, is expected to deliver its tenth rate hike since December 2021.
Money markets predict the BoE will raise rates by 0.5 percentage points to 4.0%.
Headline inflation moderated in December to +10.5%, but it's still over five times the Bank's official target.
Deutsche Bank analysts say this will be the BoE's final "forceful" hike. Recent data has shown a sharp contraction in UK business activity and lackluster Christmas retail sales.
Economists polled by Reuters now expect the BoE to stop at 4.25%. But many cited sticky core inflation, which excludes food and energy costs, as the main reason they could be wrong.
(5) The End of China’s Lunar New Year
Chinese markets are back from the week-long Lunar New Year holidays, and will look to pick up where they left off — at a five-month peak for mainland blue chips.
The mood should stay bullish after officials said COVID deaths have dropped about 80% from the peak earlier this month, running counter to worries that the New Year travel rush would trigger a fresh wave of infections.
Some experts even suggest that the surge in cases after the government abruptly reversed its zero-COVID policies last month has resulted in hyper-speedy herd immunity.
The impact of China's Great Reopening may show up in PMIs next Tuesday, with the services sector bouncing back to expansion.
Manufacturing is likely still contracting, but that has a lot to do with the timing of the New Year holiday, and next month should see a strong rebound.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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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Interactive Brokers and Generac Holdings have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 31, 2023 – Zacks Equity Research shares Interactive Brokers (IBKR - Free Report) as the Bull of the Day and Generac Holdings (GNRC - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
The Zacks Financial – Investment Bank industry is currently ranked in the top 22% (54 out of 249) of all Zacks Industries.
As we’re all aware, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A stock residing within the industry and a part of the Zacks Finance sector, Interactive Brokers, has seen its earnings outlook shift positively over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Interactive Brokers Group operates as an automated global electronic market maker and broker. The company strives to provide customers with advantageous execution prices and trading, risk and portfolio management tools, research facilities, and investment products all at low prices.
Let’s take a closer look at how the company currently stacks up.
Share Performance & Valuation
IBKR shares have been notably strong over the last six months, up nearly 40% and crushing the S&P 500’s performance.
The picture remains the same when shrinking the timeframe to encompass just 2023; year-to-date, IBKR shares have outperformed the S&P 500, up 7.4%.
Clearly, buyers have been present.
Further, IBKR shares currently trade at a 14.3X forward earnings multiple, a fraction of the 22.1X five-year median and nearly in line with the Zacks Finance sector average.
Quarterly Performance
Interactive Brokers has posted better-than-expected quarterly results as of late, exceeding the Zacks Consensus EPS Estimate in back-to-back quarters.
Just in its latest release, IBKR reported earnings more than 12% above expectations and posted a 5.3% revenue surprise.
Dividends
Who doesn’t enjoy getting paid?
Fortunately for those who seek income, Interactive Brokers has that covered; the company’s annual dividend currently yields a modest 0.5%, below the Zacks Finance sector by a fair margin.
In addition, the company’s 10% payout ratio is definitely sustainable.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Interactive Brokers would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
As we’re all very aware, 2022 was a challenging environment for many companies, with deep valuation slashes occurring regularly.
Fortunately, 2023 has certainly gotten off to a much better start, with green widespread across many areas year-to-date.
However, the outlook isn’t great for all companies, including Generac Holdings. Analysts have taken a bearish stance on the company’s earnings outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
Generac Holdings is a manufacturer of power generation equipment, energy storage systems, and other power products, including portable, residential, commercial, and industrial generators.
How does the company currently stack up? Let’s take a closer look.
Share Performance
GNRC shares haven’t fared well over the last six months, down roughly 60% and widely lagging behind the general market.
However, GNRC shares have busted out of the gate strong in 2023, up more than 12% and outperforming the S&P 500.
Growth Outlook
The company is forecasted to witness quite a slowdown in growth, with estimates indicating an 11% pullback in earnings for its current fiscal year (FY22) and a further 15% in FY23.
GNRC’s top-line is in slightly better shape, with estimates indicating a positive 20% Y/Y change in FY22 but a 7% pullback in FY23.
Quarterly Performance
Generac has primarily delivered better-than-expected quarterly results, exceeding earnings estimates in four consecutive quarters.
In its latest release, the company exceeded the Zacks Consensus EPS Estimate by roughly 8% but marginally fell short of revenue expectations.
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Generac Holdings is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Apple, Amazon, Alphabet: Global Week Ahead
Each earnings season moves fast. We get over 100 major company reports this week.
Within this Global Week Ahead report surge, three major U.S. tech firms supply results.
Forward guidance is always key.
This Q4 earnings season is particularly sensitive to broad company data laying out any recession scares, and seeks insight into upstream and downstream price movements.
The Fed meets at mid-week too.
The latest FOMC policy decisions arrive on Wednesday, Feb. 1st.
On Thursday, follow-on central bank decisions arrive from the European Central Bank (ECB) and the Bank of England (BoE).
China’s workers come back from their Lunar New Year holiday.
(1) On Thursday, Apple, Amazon and Alphabet Report Q4 Earnings
The three “A's" — Apple, Amazon and Alphabet, three of the top four U.S. companies by market value — all report earnings on Thursday.
Over 100 companies in the S&P 500 deliver results as the earnings season gets into full swing.
Microsoft, the fourth of the U.S. mega-caps, has already reported results. Its cloud business hit Wall Street targets, but it delivered a lackluster forecast that offered little cheer to the broader tech sector.
Tech companies generally are under pressure to grow while cutting costs ahead of a potential recession.
S&P 500 earnings are set to have fallen -2.9% from the year-ago period, according to Refinitiv IBES data as of Tuesday.
(2) The Fed Meeting Dominates Markets, Of Course
Will the Federal Reserve tone down its hawkish rhetoric in the face of cooling inflation or stick to its guns?
Investors widely expect a 25-basis point rate increase at the Feb. 1st meeting and for rates to stop short of hitting 5.0%.
Fed officials, however, have indicated they expect the key policy rate to top out at 5.00-5.25% this year.
Whatever signals the Fed sends could play an importing role in determining the longevity of the rally so far this year.
Dollar bears, meanwhile, will watch for dovish leanings that could further accelerate a decline in the greenback.
The currency has tumbled nearly 11% since hitting multi-decade highs last September.
(3) On Thursday, European Central Bank (ECB) Meets
The ECB meets Thursday and is widely tipped to raise rates by 50 bps to 2.5%. Markets care most about what happens next and that's not clear.
Policy hawks are already pushing for more of the same in March. After all, inflation is well above the 2% target as preliminary January data out on Wednesday is likely to show.
Futures price in a further 100 bps worth of tightening between now and July. Amundi reckons ECB rates could reach 4.0%.
But the doves are getting louder. Yes, inflation is high but it's off record peaks, they say. So, caution is needed before pre-committing to rate hikes beyond February.
Markets, whipped around by the differing opinions, will be looking for the ECB to speak with one voice. That, at least, is the hope.
(4) Bank of England (BoE) to Raise 50 Basis Points
The Bank of England, the first of the major central banks to turn hawkish, is expected to deliver its tenth rate hike since December 2021.
Money markets predict the BoE will raise rates by 0.5 percentage points to 4.0%.
Headline inflation moderated in December to +10.5%, but it's still over five times the Bank's official target.
Deutsche Bank analysts say this will be the BoE's final "forceful" hike. Recent data has shown a sharp contraction in UK business activity and lackluster Christmas retail sales.
Economists polled by Reuters now expect the BoE to stop at 4.25%. But many cited sticky core inflation, which excludes food and energy costs, as the main reason they could be wrong.
(5) The End of China’s Lunar New Year
Chinese markets are back from the week-long Lunar New Year holidays, and will look to pick up where they left off — at a five-month peak for mainland blue chips.
The mood should stay bullish after officials said COVID deaths have dropped about 80% from the peak earlier this month, running counter to worries that the New Year travel rush would trigger a fresh wave of infections.
Some experts even suggest that the surge in cases after the government abruptly reversed its zero-COVID policies last month has resulted in hyper-speedy herd immunity.
The impact of China's Great Reopening may show up in PMIs next Tuesday, with the services sector bouncing back to expansion.
Manufacturing is likely still contracting, but that has a lot to do with the timing of the New Year holiday, and next month should see a strong rebound.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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.